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HomeMy WebLinkAbout791 - Excise Tax on Personal Property• L J • ORDINANCE NO. 791 AN ORDINANCE OF THE CITY OF NEWPORT BEACH ADDING PART II, SECTIONS 6460 -6484 TO CHAPTER IV OF ARTICLE VI OF THE MUNICIPAL CODE, IMPOS- ING AN EXCISE TAX ON THE STORAGE, USE OR OTHER CONSUMPTION OF TANGIBLE PERSONAL PRO- PERTY. The City Council of the City of Newport Beach does ordain as follows: SECTION 1: That Part II, Sec- tions 6460 through and including 6484 be added to Chapter IV of Article VI of the Municipal Code of the City of Newport Beach to read as follows: "PART II. USE TAX. "Section 6460. DEFINITIONS. The following words and phrases, whenever used in Part II of this chapter, shall be construed as defined in this section unless it appears from the context that a different meaning is intended. "A. 'Sales price' means that total amount for which tangible personal property Is sold valued in money, whether paid in money or otherwise, without any deduc. tion on account of any of the fol- lowing: "(1) The cost of the property sold; "(2) The cost of materials used, labor or service cost, In- terest charged, losses, or any other expenses; "(3) The cost of transporta- tion of the property prior to its purchase. The total amount for which the property is sold includes all of the following: "(1) Any services that are a part of the sale; "(2) Any amount for which credit Is given to the purchaser by the seller. 'Sales price' does not include any of the following: "(1) Cash discounts allowed and taken on sales; "(2) The amount charged for property returned by customers when that entire amount is re- funded either in cash or credit, but this exclusion shall not ap- ply in any instance when the customer, In order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the Property that Is returned. "(3) The amount charged for labor or services rendered In installing or applying the pro- perty sold. "(4) The amount of any fed- eral tax imposed upon or with respect to retail sales whether imposed upon the retailer or upon the consumer and regard- less of whether or not the amount of federal tax Is stated to customers as a separate charge, and the amount of any California state sales or use tax. (The term 'gross receipts' in- cludes the amount of any manu- facturer's or importer's excise tax included in the price of the pro- perty sold, even though the manufacturer or importer is also the retailer thereof, and whether or not the amount of such tax is stated as a separate charge.) "(5) Tansportation c h a r g e s separately stated if the trans- portation occurs after the pur- chase of the property is made. "B. 'Use' includes the exercise of any right or power over tan- gible personal property incident to the ownership of that pro- perty; subject, however, to' the following exceptions: "(1) It does not include the sale of that property in the regu- lar course of business. "(2) It does not include the storage, use or other consump. tion of tangible personal pro. perty, the gross receipts from the sale of or the cost of which has been subject to sales or use tax under a sales or use tax ordi- nance, whether enacted in ac- cordance with, or purporting to be in accordance with, Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California by any other city and county, county other than Or. ange County, or city in this state, or enacted in accordance with the organic law of any such city. "(3) It does not include the storage or use of tangible per. sonal property in the transporta- tion or transmission of persons, Property or communications, or in the generation, transmission or distribution of electricity or in the manufacture, transmission or distribution of gas in intra. state, interstate or foreign com- merce by public utilities which are regulated by the Public Utili- ties Commission of the State of California. "(4) It does not include the use or consumption of property purchased by operators of com- mon carrier and waterborne ves- sels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the City. "C. The word 'storage; as used in this article, includes any keeping or retention in the City for any purpose except sale In the regular course of business or subsequent use solely outside this City of tangible personal property purchased from a re- tailer. "Section 6461. IMPOSITION AND RATE OF TAX. An excise tax is hereby imposed on the storage, use or other consump- tion in the City of Newport Beach of tangible personal property Purchased from any retailer on or after April 1, 1956 for storage, use or other consumption in said City at the rate of one percent (1 01o) of the sales price of the property. "Notwithstanding the foregoing provisions of this section, where the sales price of tangible per- sonal property purchased for storage, use or other consump- tion in the City of Newport Beach pursuant to a contract of sale actually executed In good faith prior to April 1, 1956, includes Newport Beach City sales or use tax, the rate of tax applied shall be that rate In effect when the contract is executed. "Section 6462. USE TAX LEVI. ED IN SAME MANNER AS STATE TAX. The tax hereby levied, except as otherwise here- in provided, is levied In the same manner, to the same extent and under the same conditions as use taxes are levied pursuant to Part I of Division 2 of the California Revenue and Taxation Code, known as the'Sales and Use Tax Law' as amended and in force and effect on April 1, 1956. "Section 6463. ADOPTION OF STATE USE TAX LAW BY REF. ERENCE. EXCEPTIONS. "A. All of the provisions of the 'Sales and use Tax Law' as amended and in force and effect on April 1, 1956, except the pro. visions pertaining solely to the 'Sales Tax' and Sections 6008, 6009, 6011, 6201 to 6204, inclu. sive, 6207, 6226, 6241 to 6246, inclusive, 6355, 6403, 6453, 7052, 7056, 7057, 7101, 7102, 7151, 7152 and 7153, are hereby adopted and made a part of Part II of this chapter as though fully set forth herein, and all provisions of any other ordinance in conflict there. with are Inapplicable to Part II of this chapter and the tax here- by imposed. "B. The term 'sales price' shall not include the amount of any California state sales tax or use tax. "C. All of the provisions of the 'Sales and Use Tax Law' hereby adopted providing for the adoption of rules and regulations and for hearings on the part of the State Board of Equalization shall be performed by the City Council of the City of Newport Beach. All other provisions of the state 'Sales and Use Tax Law' hereby adopted providing for the performance of official action on the part of the State Board of Equalization shall be performed by the City Director of Finance. "D. The City of Newport Beach shall be deemed substi- tuted for the State of California whenever the state is referred to In said 'Sales and Use.Tax Law.' • • • "E. The City Attorney of New- port Beach shall be deemed sub- stituted for the Attorney General whenever the Attorney General is referred to in said 'Sales and Use Tax Law.' "F. The City Director of Fi- nance shall be deemed substi- tuted for the State Controller and State Board of Control whenever the State Controller or State Board of Control are referred to in said 'Sales and Use Tax Law: "G. The County of Orange shall be deemed substituted for the County of Sacramento when- ever the County of Sacramento Is referred to in said 'Sales and Use Tax Law.' "Section 6464. ADOPTION OF RULES AND REGULATIONS BY REFERENCE. The rules and reg- ulations of the State Board of Equalization pertaining to the Interpretation, a d m I n i stration and enforcement of the 'Sales and Use Tax Law; insofar as ap- plicable, shall apply to the inter- pretation of Part II of this chap- ter until specifically abandoned by the rules and regulations adopted by the City Council pur- suant to Part II of this chapter. "Section 6465. INTERPRETA- TION. The inclusion of any clause, portion or part of the 'Sales and Use Tax Law,' Part 1, Division 2, of the Revenue and Taxation Code of the State of California, verbatim In Part II of this chapter shall not In or of itself be deemed to exclude any of the remaining provisions of said 'Sales and Use Tax Law' that are made a part hereof by reference only. "Section 6466. DUTY TO COL- LECT TAX. Every retailer main- taining a place of business in this City shall apply to the City Director of Finance for authori- zation to collect the tax imposed by Part II of this chapter. Any retailer not maintaining a place of business In this City may apply to the City Director of Fi- nance for authorization to collect the tax hereby imposed. Upon re- ceipt of any application In such form as required by him, the City Director of Finance, in the case of a retailer maintaining a place of business In the City, shall au- thorize, and In the case of a re- tailer not maintaining a place of business In the City, may author- ize the applicant to make such collections and to forward the same to the City Director of Fi- nance. "Section 6467. PERSONS LI- ABLE TO TAX. Every person storing, using or otherwise con- suming in this City tangible per- sonal property purchased from a retailer, Is liable for the tax; provided, however, no tax shall be due hereunder if the tax im- posed by Part I of Chapter IV of Article VI of the Municipal Code of the City of Newport Beach has been paid on the sale of such property. The liability of such person Is not extinguished until the tax has been paid to the City of Newport Beach except that a receipt from a retailer authorized pursuant to Section 6466 hereof to collect the tax, given to the purchaser pursuant to Section 6468 hereof, Is sufficient to re- lieve the purchaser from further liability for the tax to which the receipt refers. "Section 6468. COLLECTION OF TAX BY RETAILER. Every retailer who is authorized by the City Director of Finance to col- lect the tax imposed by Part II of this chapter and who makes sales of tangible personal pro- perty for storage, use or other consumption in this City, not ex. empted under the provisions of Part II of this chapter, shall col. lect the tax from the purchaser at the time of making the sale, or, if the storage, use or other consumption of the tangible per- sonal property is not then tax. able hereunder, at the time the storage, use or other consump. tion becomes taxable. Upon col. lecting the tax, the retailer, on demand, shall give to the pur- chaser a receipt therefor in the manner and form prescribed by the City Director of Finance. The tax so collected by the retailer shall be held In trust by him for the City and shall be paid to the City by the retailer • in the manner and at the times else- where provided in Part II of this chapter. "Section 6469. SEPARATE DIS. PLAY OF TAX FROM LIST OR OTHER PRICE. The tax so col- lected by the retailer from the purchaser shall be displayed separately from the list price, the price advertised In the premises, the marked price or other price on the sales check or other proof of sale. "Section 6470. PERSONAL PRO- PERTY TO WHICH TAX AP. PLIES. Except as otherwise spe- cifically exempted, the tax here. by imposed applies to all tangi- ble personal property located In this City and purchased from a retailer; provided, however, that if the retailer In good faith takes from the purchaser a certificate that the property was purchased prior to April 1, 1956, or was not purchased for storage, use or consumption In this City and has not been nor will be so stored, used or consumed, he shall be relieved of liability to collect and pay the tax. The cer. tificate shall be signed by and bear the name of the purchaser, shall indicate the address of the purchaser and the place where such tangible personal property will be stored, used or consumed, the date of purchase, and shall be substantially In such form as the City Director of Finance may prescribe. "Section 6471. REGISTRATION OF RETAILERS. Every retailer selling tangible personal pro- perty for storage, use or other consumption in the City of New- port Beach and which retailer maintains a place of business in said City or acts through agents located In said City and which retailer is not licensed under the provisions of Part I of Chapter IV of Article VI of the Municipal Code of the City of Newport Beach (sales tax) shall register with the City Director of Finance and give the name and address of such agent or agents and of- fice or other place of business In the city. . "Section 6472. DUE DATE OF TAXES. Taxes imposed by Part II of this chapter are due and payable to the City of Newport Beach on or before the last day of the month next succeeding each quarterly period, the first quarterly payment to be due and payable under Part II of this chapter on or before the last day of July, 1956. The City Director of Finance may require returns and payment of the amount of taxes for quarterly periods other than calendar quarters depend - Ing upon the principal place of or the nature of the business of the seller or retailer or may re- quire returns and payment of the amount of taxes for other than quarterly periods. "Section 6473. RETURNS. Each return filed by a retailer shall show the total sale price of the property sold by him during the reporting period in respect of which he collected the tax here- by Imposed. Each return filed by a purchaser shall show the total sale price of the property pur- chased by him during the re- porting period, In respect of which a tax Is due under Part II of this chapter. All returns shall also show the amount of the taxes for the period covered by the return and such other infor- mation as the City Director of Fi- nance deems necessary to the proper administration of Part II of this chapter. "Section 6474. EXTENSION OF TIME. WAIVER OR COMPRO- MISE. The City Director of Fi- nance shall have the power, for good cause shown, to extend for a period of not to exceed thirty - one (31) days the time for mak- ing any return or paying any amount required to be paid under Part II of this chapter, when requested so to do in writ - Ing, before the same becomes de- linquent. The City-Director of Fi- nance may, with- the written ap- 0 • • proval of the City Attorney, waive or compromise any pen- alty or interest that would other• wise accrue under the provisions of Part 11 of this chapter. The City Director of Finance shall make and transmit to the City Council quarterly a detailed re- port of any sums so waived or compromised with the reasons therefor. "Section 6475. SCHEDULES FOR PAYMENT OF TAX. The City Council by resolution shall adopt rules prescribing methods and schedules for the collection and payment of the tax. Such schedules shall be so determined as to facilitate collection of this tax at the same time that the retailer collects the tax imposed under the California Sales and Use Tax Law and so as to pro- duce an average tax return of one percent (1 %) on all pur- chases subject to the use tax. "Section 6476. SUIT FOR TAX. All taxes hereby levied shall be payable to the City Director of Finance and any civil suit for the collection thereof may be filed in any court of competent jurisdiction In the State of Cali- fornia, and the City Attorney of said City shall prosecute the ac- tion. "Section 6477. RESALE CER- TIFICATE. The City Director of Finance may at his option ac- cept a State of California Resale Certificate as evidence that any sale is not a sale for storage, use or consumption in the City of Newport Beach, or he may In his discretion require an affidavit from the seller setting forth such information respecting such sale as he deems necessary to deter- mine the nature of such sale. "Section 6478. DISPOSITION OF PROCEEDS. All monies col- lected under and pursuant to the provisions of Part 11 of this chap- ter shall be deposited and paid into the General Fund of the City of Newport Beach. "Section 6479. DIVULGING OF INFORMATION FORBIDDEN. No officer or employee of the City of Newport Beach having an ad- ministrative duty under Part 11 of this chapter shall make known in any manner whatever the business affairs, operations, or information obtained by an investigation of records and equipment of any retailer or any other person visited or examined in the discharge of official duty, or the amount or source of in- come, profits, losses, expendi- tures, or any particulars thereof, set forth or disclosed in any re- turn, or permit any return or copy thereof or any book con- taining any abstract or particu- lars thereof to be seen or ex- amined by any person. However, the City Council may, by resolu- tion, authorize examination of the returns by federal or state officers or employees or by the tax officers of this or any other city if a reciprocal arrangement exists. Successors, receivers, trust- ees, executors, administrators, assignees, and guarantors, If di- rectly interested, may be given Information as to the items in- cluded in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties. "Section 6480. FALSE AND FRAUDULENT RETURNS. No per- son required to make, render, sign or verify any report under the provisions of Part 11 of this chapter shall make any false or fraudulent return, with intent to defeat or evade the determina- tion of an amount due and re- quired to be paid hereunder. "Section 6481. FAILURE TO MAKE RETURN OR FURNISH DATA. No retailer or other per- son shall fall or refuse to fur- nish any return required to be made or fail or refuse to furnish a supplemental return or other data required by the City Direc• for of Finance, or render a false or fraudulent return. "Section 6482. PENAL PROVI- SlONS. Any person violating any provision of Part 11 of this chap- ter shall be guilty of a misde- meanor, and upon conviction thereof shall be punishable by a fine of not more than Five Hundred Dollars ($500.00), or by imprisonment in the City Jail of the City of Newport Beach or the County Jail of the County of Orange for a period of not more than six months, or by both such fine and imprisonment. "Section 6483. VALIDITY. If any section, subsection, sentence, clause, phrase, or portion of Part 11 of this chapter is for any rea• son held to be invalid or uncon- stitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining por- tions of Part 11 of this chapter. The City Council of this City hereby declares that it would have adopted Part 11 of this chapter and each section, subsection, sentence, clause, phrase, or portion thereof, irre- spective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portion be declared invalid or unconstitutional. "Section 6484. O P E R A T 1 V E DATE. Part 11, Sections 6460 to and including Section 6484 of Chapter 1V of Article Vl of the Municipal Code, shall be opera- tive as of April 1, 1956. "The purpose of this ordinance is to amend Chapter 1V of Article Vl of the Municipal Code of the City of Newport Beach by substi- tuting Part 1, Sections 6426 to and including Section 6449 and Part 11, Sections 6460 to and in- cluding Section 6484 of Chapter IV of Article Vl of said Munici- pal Code, in place of Sections 6400 to and including Section 6425 of Chapter 1V of Article Vl of said Municipal Code which were and are suspended by City Ordinance No. 772 as of April 1, 1956. "If for any reason it is deter• mined that said Sections 6460 to and including Section 6484 of Part 11 of Chapter 1V of Article Vl of the Municipal Code of the City of Newport Beach are not operative as of April 1, 1956, then in that event, said sections shall be operative as of July 9, 1956. SECTION 2: This ordinance, inasmuch as It provides for a tax levy for the usual current expenses of the City of Newport Beach, shall take effect immedi- ately upon the passage thereof and shall be published once in the NEWPORT HARBOR EN- SIGN, a newspaper of general circulation printed and pub• lished and circulated In the City of Newport Beach. The above and foregoing ordi- nance was introduced and adopted at a regular meeting of the City Council of the City of Newport Beach held on the 9th day of July, 1956, by the follow- ing vote, to -wit: AYES, COUNCILMEN: Hart, Wilder, MacKay, Higble, Ridder- hof, Hill. NOES, COUNCILMEN: None. ABSENT COUNCILMEN: Stod- dard. ATTEST: MARGERY SCHROUDER City Clerk DORA O. HILL .Mayor STATE OF CALIFORNIA COUNTY OF ORANGE �SS. CITY OF NEWPORT BEACH Margery schrouder I- -------------------------------------------------------------..- .---------- ---- --------- -- ---- City Clerk of the City of Newport Beach, California, do hereby certify that the foregoing Ordinance Y Y 9 9 - - -- - - - - - -. No ---------- 91 ................... was duly and regularly adopted, passed, and approved by the City Council of the City of Newport Beach, California, at a regular meeting of said City Council held at the 9th July 56 regular meeting place thereof, on the ----------- ------ - - - - -- - day, of -------------------------------------------------------------- 19--------- by the following vote: Hart, Wilder, MacKay, Higbie, Ridderhof, Hill AYES: COUNCILMEN - - - - None NOES: COUNCILMEN ------------------ ABSENT: COUNCILMEN - - - -- Stoddard Dated this - 3rd August -- ---- -- ------day of --------------- ---------- ------------------------------------ -- -- -------- ------- ------- ----- I 6 NB 130 - 500 -6/51 City Clerk an Ex -Offs io Clerk of the City Council, City of Newport Beach, State of California