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• <br />L J <br />• <br />ORDINANCE NO. 791 <br />AN ORDINANCE OF THE <br />CITY OF NEWPORT BEACH <br />ADDING PART II, SECTIONS <br />6460 -6484 TO CHAPTER IV <br />OF ARTICLE VI OF THE <br />MUNICIPAL CODE, IMPOS- <br />ING AN EXCISE TAX ON <br />THE STORAGE, USE OR <br />OTHER CONSUMPTION OF <br />TANGIBLE PERSONAL PRO- <br />PERTY. <br />The City Council of the City of <br />Newport Beach does ordain as <br />follows: <br />SECTION 1: That Part II, Sec- <br />tions 6460 through and including <br />6484 be added to Chapter IV of <br />Article VI of the Municipal Code <br />of the City of Newport Beach to <br />read as follows: <br />"PART II. USE TAX. <br />"Section 6460. DEFINITIONS. <br />The following words and phrases, <br />whenever used in Part II of this <br />chapter, shall be construed as <br />defined in this section unless it <br />appears from the context that a <br />different meaning is intended. <br />"A. 'Sales price' means that <br />total amount for which tangible <br />personal property Is sold valued <br />in money, whether paid in money <br />or otherwise, without any deduc. <br />tion on account of any of the fol- <br />lowing: <br />"(1) The cost of the property <br />sold; <br />"(2) The cost of materials <br />used, labor or service cost, In- <br />terest charged, losses, or any <br />other expenses; <br />"(3) The cost of transporta- <br />tion of the property prior to its <br />purchase. <br />The total amount for which the <br />property is sold includes all of <br />the following: <br />"(1) Any services that are a <br />part of the sale; <br />"(2) Any amount for which <br />credit Is given to the purchaser <br />by the seller. <br />'Sales price' does not include any <br />of the following: <br />"(1) Cash discounts allowed <br />and taken on sales; <br />"(2) The amount charged for <br />property returned by customers <br />when that entire amount is re- <br />funded either in cash or credit, <br />but this exclusion shall not ap- <br />ply in any instance when the <br />customer, In order to obtain the <br />refund, is required to purchase <br />other property at a price greater <br />than the amount charged for the <br />Property that Is returned. <br />"(3) The amount charged for <br />labor or services rendered In <br />installing or applying the pro- <br />perty sold. <br />"(4) The amount of any fed- <br />eral tax imposed upon or with <br />respect to retail sales whether <br />imposed upon the retailer or <br />upon the consumer and regard- <br />less of whether or not the <br />amount of federal tax Is stated <br />to customers as a separate <br />charge, and the amount of any <br />California state sales or use tax. <br />(The term 'gross receipts' in- <br />cludes the amount of any manu- <br />facturer's or importer's excise tax <br />included in the price of the pro- <br />perty sold, even though the <br />manufacturer or importer is also <br />the retailer thereof, and whether <br />or not the amount of such tax is <br />stated as a separate charge.) <br />"(5) Tansportation c h a r g e s <br />separately stated if the trans- <br />portation occurs after the pur- <br />chase of the property is made. <br />"B. 'Use' includes the exercise <br />of any right or power over tan- <br />gible personal property incident <br />to the ownership of that pro- <br />perty; subject, however, to' the <br />following exceptions: <br />"(1) It does not include the <br />sale of that property in the regu- <br />lar course of business. <br />"(2) It does not include the <br />storage, use or other consump. <br />tion of tangible personal pro. <br />perty, the gross receipts from the <br />sale of or the cost of which has <br />been subject to sales or use tax <br />under a sales or use tax ordi- <br />nance, whether enacted in ac- <br />cordance with, or purporting to <br />be in accordance with, Part 1.5 of <br />Division 2 of the Revenue and <br />Taxation Code of the State of <br />California by any other city and <br />county, county other than Or. <br />ange County, or city in this state, <br />or enacted in accordance with <br />the organic law of any such city. <br />"(3) It does not include the <br />storage or use of tangible per. <br />sonal property in the transporta- <br />tion or transmission of persons, <br />Property or communications, or <br />in the generation, transmission <br />or distribution of electricity or <br />in the manufacture, transmission <br />or distribution of gas in intra. <br />state, interstate or foreign com- <br />merce by public utilities which <br />are regulated by the Public Utili- <br />ties Commission of the State of <br />California. <br />"(4) It does not include the <br />use or consumption of property <br />purchased by operators of com- <br />mon carrier and waterborne ves- <br />sels to be used or consumed in <br />the operation of such common <br />carriers or waterborne vessels <br />principally outside the City. <br />"C. The word 'storage; as <br />used in this article, includes any <br />keeping or retention in the City <br />for any purpose except sale In <br />the regular course of business or <br />subsequent use solely outside <br />this City of tangible personal <br />property purchased from a re- <br />tailer. <br />"Section 6461. IMPOSITION <br />AND RATE OF TAX. An excise <br />tax is hereby imposed on the <br />storage, use or other consump- <br />tion in the City of Newport Beach <br />of tangible personal property <br />Purchased from any retailer on <br />or after April 1, 1956 for storage, <br />use or other consumption in said <br />City at the rate of one percent <br />(1 01o) of the sales price of the <br />property. <br />"Notwithstanding the foregoing <br />provisions of this section, where <br />the sales price of tangible per- <br />sonal property purchased for <br />storage, use or other consump- <br />tion in the City of Newport Beach <br />pursuant to a contract of sale <br />actually executed In good faith <br />prior to April 1, 1956, includes <br />Newport Beach City sales or use <br />tax, the rate of tax applied shall <br />be that rate In effect when the <br />contract is executed. <br />"Section 6462. USE TAX LEVI. <br />ED IN SAME MANNER AS <br />STATE TAX. The tax hereby <br />levied, except as otherwise here- <br />in provided, is levied In the same <br />manner, to the same extent and <br />under the same conditions as use <br />taxes are levied pursuant to Part <br />I of Division 2 of the California <br />Revenue and Taxation Code, <br />known as the'Sales and Use Tax <br />Law' as amended and in force <br />and effect on April 1, 1956. <br />"Section 6463. ADOPTION OF <br />STATE USE TAX LAW BY REF. <br />ERENCE. <br />EXCEPTIONS. <br />"A. All of the provisions of <br />the 'Sales and use Tax Law' as <br />amended and in force and effect <br />on April 1, 1956, except the pro. <br />visions pertaining solely to the <br />'Sales Tax' and Sections 6008, <br />6009, 6011, 6201 to 6204, inclu. <br />sive, 6207, 6226, 6241 to 6246, <br />inclusive, 6355, 6403, 6453, 7052, <br />7056, 7057, 7101, 7102, 7151, 7152 <br />and 7153, are hereby adopted and <br />made a part of Part II of this <br />chapter as though fully set forth <br />herein, and all provisions of any <br />other ordinance in conflict there. <br />with are Inapplicable to Part II <br />of this chapter and the tax here- <br />by imposed. <br />"B. The term 'sales price' shall <br />not include the amount of any <br />California state sales tax or use <br />tax. <br />"C. All of the provisions of <br />the 'Sales and Use Tax Law' <br />hereby adopted providing for the <br />adoption of rules and regulations <br />and for hearings on the part of <br />the State Board of Equalization <br />shall be performed by the City <br />Council of the City of Newport <br />Beach. All other provisions of the <br />state 'Sales and Use Tax Law' <br />hereby adopted providing for the <br />performance of official action on <br />the part of the State Board of <br />Equalization shall be performed <br />by the City Director of Finance. <br />"D. The City of Newport <br />Beach shall be deemed substi- <br />tuted for the State of California <br />whenever the state is referred to <br />In said 'Sales and Use.Tax Law.' <br />