HomeMy WebLinkAbout581 - Tangible Personal Property•
•
ORDINANCE No. 581
AN ORDINANCE OF THE CITY
OF NEWPORT BEACH
IMPOSING A LICENSE TAX
FOR THE PRIVH.EGE
OF SELLING TANGIBLE
PERSONAL PROPERTY
AT RETAIL AND EVIPOSING
AN EXCISE TAX ON THE USE
OR OTHER CONSUMPTION
OF TANGIBLE PERSONAL
PROPERTY AND PROVIDING
PENALTIES FOR VIOLATIONS
THEREOF.
The City of Newport Beach,
by and through its City Council,
does ordain as follows:
SECTION I. DEFINITIONS.
Wherever used in this ordinance
the following words shall have
the meanings indicated:
"City Council" shall mean the
City Council of the City of New-
port Beach.
"Tax Collector" shall mean the
City Clerk of the City of New-
port Beach.
SECTION 2. IMPOSITION
AND RATE OF SALES TAX.
For the privilege of selling tang-
ible personal property at retail
a tax is hereby imposed upon
all retailers at the rate of one
percent (1 %) of the gross re-
ceipts of any retailer from the
sale of all tangible personal
property sold at retail in the
City of Newport Beach on and
after October 1, 1948; said tax
shall be in addition to any and
all taxes imposed by any other
ordinance of the City of Newport
Beach.
SECTION S. IMPOSITION
AND RATE OF USE TAX. An
excise tax is hereby imposed on
the storage, use, or other con-
sumption in the City of Newport
Beach of tangible personal prop-
erty purchased from any retailer
on and after October 1, 1948,
for storage, use, or other con-
sumption in said city at the rate
of one percent (1 %) of the sales
price of the property. Said tax
shall be In addition to any and
all taxes imposed by any other
ordinance of the City of Newport
Beach.
SECTION 4. TAXES LEVIED
IN SAME MANNER AS STATE
TAX. The taxes hereby imposed,
except as otherwise herein pro-
vided, shall be imposed in the
same manner, to the same extent
and under the same conditions
as taxes we imposed pursuant
to Part 1 of Division 2 of the
Revenue and Taxation Code of
the State of California known
as the "Sales and Use Tax Law"
as amended and in force and
effect on July 1, 1948, or any
amendments hereinafter adopted
and in force and effect in the
State of California.
SECTION 5. ADOPTION OF
STATE SALES TAX LAW BY
REFERENCE. — EXCEPTIONS.
All of the provisions of said
"Sales and Use Tax Law" as
amended and in force and effect
on July 1, 1948, except Sections
6051, 6053, 6066 to 6071 inclusive,
6201 to 6205 inclusive, 6207, 6226,
6246, 6403, 6451, 6826, 6901 to
6937 inclusive, 6291, 7052, 7056,
7101 to 7153 inclusive, and 7176,
are hereby adopted and made a
Part of this ordinance as though
fully set forth herein and all
provisions of any ether ordinance
in conflict therewith are inappli-
cable to this ordinance and the
taxes hereby imposed; provided,
however, that the term "gross
receipts" and the term "sales
Price" as used herein shall not
include the amount of any tax
imposed by the State of Call -
fornia under and pursuant to said
"Sales and Use Tax Law."
The inclusion of or further
reference to any section, clause,
or part of said "Sales and Use
Tax Law" in this ordinance shall
not 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.
All of the provisions of said
"Sales and Use Tax Law" hereby
adopted providing for the adop-
tion of rules and regulations and
for hearings on the part of the
State Board of Equalization shall
be performed by the City Council.
All other provisions of said "Sales
and Use Tax Law" hereby
adopted providing for the per-
formance of official action on the
part of the State Board of Equal-
ization shall be performed by the
City Clerk.
The City of Newport Beach
shall be deemed substituted for
the State of California wherever
the State is referred to in said
"Sales and Use Tax Law" and
in the rules and regulations of
the State Board of Equalization
hereinafter adopted.
The City Attorney of Newport
Beach shall be deemed substi-
tuted for the Attorney General
wherever the Attorney General
is referred to in said "Sales and
Use Tax 'Law" and in the rules
and regulations of the S t a t e
Board of Equalization hereinafter
adopted.
The City Auditor shall be
deemed substituted for the State
Controller and State Board of
Control wherever the State Con-
troller or State Board of Control
are referred to in said "Sales
and Use Tax Law" and in the
rules and regulations of the State
Board of Equalization hereinafter
adopted.
The County of Orange shall
be deemed substituted for t h e
County of Sacramento wherever
the County of Sacramento is re-
ferred to in said "Sales and Use
Tax Law" and in the rules and
regulations of the State Board
of Equalization hereinafter
adopted.
SECTION 6. EXEMPTIONS. In
a d d i t 10 n to the exemptions
allowed under said "Sales and
Use Tax Law" there shall be
exempted from the taxes imposed
hereunder:
(a) Sales of meals, food and
drinks on common c a r r i e r s
operating trhough the City of
Newport Beach.
(b) Sales made to or purchases
by any agency, department, poli-
tical subdivision, district or muni-
cipal corporation, other than the
State of California.
(c) Sales or purchases of prop-
erty to be used in the erection,
construction, repair or alteration
of either public works or build-
ings belonging to or being con-
structed by or on behalf of, or
for the use of the United States
Government, or public or munl-
cipal corporation of the State.
(d) Sales or purchases made
pursuant to contracts actually
executed in good faith prior to
October 1, 1948.
(e) Sales or purchases of prop-
erty upon which a sales or use
tax has been imposed by any
other city of the State of Cali-
fornia on the same transaction.
(f) Purchases of property upon
which a sales tax has been im-
posed hereunder on the same
transaction.
(g) "Storage" and "Use" do
not include the keeping, retaining
or exercising any right or power
over tangible personal property
shipped or brought into this city
for the purpose of being sub
sequently sold or resold in the
regular course of business, or if
such property was purchased for
principal use or consumption out-
side the City, and is so used or
consumed.
(h) "Storage" and "Use" do
not include the keeping, retaining
or exercising any right or power
over tangible personal property
shipped or brought into this City
which is actually employed in the
transportation or transmission of
persons, property, gas, electricity
or communications by persons
engaged in the business of trans-
porting or transmitting persons,
property, gas, electricity or com-
munications in both intrastate or
foreign commerce.
(i) Sales of property to oper-
ators of common carriers to be
used or consumed in the operation
of such common carriers, prin-
cipally outside the City.
(j) Sales of property to pur-
e h a s e r s engaged in business
wholly or partly outside the city
where t h e property is to be
transported outside t h e C i t y
without undue delay to be used
only outside the City in such
business.
SECTION 7. ADOPTION OF
RULES AND REGULATIONS
BY REFERENCE.
The rules and regulations of
the State Board of Equalization
as amended and in force and
effect July 1, 1948, pertaining
to the interpretation, administra-
tion and enforcement of said
"Sales and Use Tax Law" insofar
as applicable, shall apply in the
interpretation of this ordinance
unless in conflict with the rules
or regulations adopted by the
Commission in which event the
rules and regulations adopted by
the Commission shall control. The
City of Newport Beach shall be
deemed substituted for the State
of California wherever the State
is referred to in said rules and
regulations of the State Board
of Equalization.
SECTION 8. ADOPTION OF
RULES AND REGULATIONS.
The City Council of the City
of Newport Beach by resolution
may prescribe and adopt rules
and regulations relating to the
administration and enforcement of
htis ordinance.
SECTION 9. APPLICATION
FOR PERMIT. Every person de-
siring to engage in or conduct
business as a seller within the
City of Newport Beach shall file
with the City Clerk an applica-
tion for a permit for each place
of business. Every Application
for a permit shall be made upon
a form prescribed by the City
Clerk and shall set forth the
name under which the applicant
transacts or intends to transact
business, the location of his place
or places of business, and such
other information as the City
Clerk may require. The applica-
tion shall be signed by the owner,
if a natural person: in the case
of an association or partnership,
by all members or partners; in
the case of a corporation, by
an executive officer or some
person specifically authorized by
thecorporation to sign ,the .appli-
cation, to which shall be attached
the written evidence of hjK -...
authority. r
SECTION 10c ISSUANCE AND
DISPLAY OF . PERMIT. After
compliance with: Section 9 of this
ordinance by the applicant, the -`
City Clerk shall,grant and
to e a c h applicant. a separate-
permit for each plce, of ,bush_iess.
A permit Is not assignable and
Is valid only for the person in
whose name It Is issued and for
the transaction of business at the
J
place designated therein; p r o-
vided, however, a c h a n g e of
location may be endorsed upon
the permit by the City Clerk.
The permit shall at all times
be conspicuously displayed at the
place for which issued. No fee
shall be charged for the issuance
of, or t h e endorsement of a
change of location on, a permit.
SECTION 11. REVOCATION
OF PERMIT. Whenever any
person fails to comply with any
of the provisions of this ordi-
nance or any rule or regulation
adopted pursuant hereto, the City
Council of the City of Newport
Beach, upon hearing, after giving
the person ten days' notice in
writing specifying the time and
place of hearing and requiring
him to show cause why the per.
mit or permits should not be
revoked, may revoke or suspend
any one or more of the permits
held by such person. The notice
may be served personally or by
mail in the manner prescribed
for the service of notice of a
deficiency determination under
said "Sales and Use Tax Law."
The City Clerk shall not issue
a new permit after the revoca-
tion of a permit unless the City
Council of the City of Newport
Beach is satisfied that such
. former holder of a permit will
comply with the provisions of
this ordinance and the rules and
regulations a d o p t e d pursuant
hereto and directs the City Clerk
to issue such permit.
SECTION 12. RENEWAL OF
PERMIT. A seller whose permit
has been previously suspended or
revoked shall pay the City Clerk
a fee of $15.00 for the renewal
or issuance of a permit.
S E C T 10 N 13. UNLAWFUL
ACTS. It shall be unlawful for
any person to engage in business
as a seller in the City of Newport
Beach without a permit or per.
mits or after a permit has been
suspended or revoked and before
the renewal or issuance of a
permit.
SECTION 14. LIABILITY FOR
USE TAX. Except as otherwise
provided in this ordinance, every
person storing, using or other.
wise consuming In the City of
Newport Beach tangible personal
property purchased from a re-
tailer is liable for the use tax
imposed by Section 3 hereof.
Such liability is not extinguished
until the tax has been paid to
the City of Newport Beach ex-
cept that a receipt from a retail.
er authorized by the City Clerk,
under such rules and regulations
as he may prescribe, to collect
such tax shall be sufficient to
relieve the purchaser from fur-
ther liability for the tax to
which the receipt refers.
SECTION 15. COLLECTION
OF USE TAX BY RETAILER.
Any retailer may be authorized
by the City Clerk to collect the
use tax imposed by Section 3
hereof under such rules and reg.
ulations as may be prescribed by
the City Clerk. Upon such col-
lections such retailer shall give
to the purchaser a receipt there-
for in the manner and form pre-
scribed by the City Clerk.
Every retailer maintaining a
place of business in the City of
Newport Beach and making sales
of tangible personal property for
storage, use or other comump.
tion in said City, subject to the
use tax imposed by Section 3
hereof, shall, at the time of mak-
ing such sales, or, if the storage,
use or other consumption of the
tangible personal property is not
I, C. K. Priest, Clerk of thi
that the foregoing Ordinance
Ordinance passed by the City
23rd day of August, 1946, an(
cording to law.
then taxable hereunder, at the
time the storage, use or other
consumption becomes taxable, c,.
lect the tax from the purchaser
and give to the purchaser a re-
ceipt therefor in the manner and
form prescribed by the City
Clerk.
Any tax collected pursuant to
this ordinance by a retailer con-
stitutes a debt owed by said re-
tailer to the City of Newport
Beach.
SECTION 19. DUE DATE.
The taxes imposed by this ordi-
nance are due and payable to the
City Clerk on or before the last
day of the month next succeed-
ing each quarterly period, the
first quarterly payment to be due
and payable under this ordinance
on the last day of January, 1949.
SECTION 17. UNLAWFUL
ADVERTISING. It shall be un-
lawful for any retailer to adver-
tise or hold out or state to the
public or to any customer, direct-
ly or indirectly, that the tax as
hereby imposed or any part
thereof will be assumed or ab-
sorbed by the retailer or that it
will not be added to the selling
price of the property sold or that
if added it or any part thereof
will be refunded.
SECTION 18. SUIT FOR
TAX. All taxes hereby imposed
shall be payable to the City of
Newport Beach and collectable by
the City Clerk 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
the City of Newport Beach shall
prosecute such action.
SECTION 19. RESALE CER-
TIFICATE. The City Clerk may
at his option accept a State of
California Resale Certificate as
evidence that any sale is not a
sale at retail, 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 20. DISPOSITION
OF PROCEEDS. All moneys
collected under and pursuant to
the provisions of this ordinance
shall be deposited and paid into
the General Fund of the City of
Newport Beach.
SECTION 21. DIVULGING
OF INFORMATION F O R B I D.
returns by Federal or State offi-
cers or employees or by the tax
officers of this or any other
city if a reciprocal arrangement
exists. Successors, receivers,
trustees, executors, administrat-
ors, assignees, and guarantors, if
directly 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, in-
terest and penalties.
SECTION 22. FRAUDULENT
RETURNS. It shall be unlawful
for any person to make any
false or fraudulent return with
intent to defeat or evade the
determination of an amount due
and required to be paid hereunder.
SECTION 23. FAILURE TO
MAKE RETURN OR FURNISH
DATA.
It shall be unlawful for any
person to fail or refuse to furnish
any return information or data
reasonably required by the City
Clerk in the administration of
this ordinance.
SECTION 24. REFUNDS.
Claims and demands for refunds
for any amounts erroneously or
illegally collected under this ordi-
nance shall be fil^d as required
by the State law or City ordi.
nances of the City of Newport
Beach.
SECTION 25. PENALTIES.
Any person violating any of the
provisions of this ordinance shall
be deemed guilty of a misde-
m e a n o r, and upon conviction
thereof shall be punishable by a
fine of not more than $300.00
or by imprisonment for a period
of three (3) months in the City
or County Jail, or by both such
fine and imprisonment.
SECTION 26. SEVERABILITY.
If any section, subsection, sent-
ence, clause, phrase, or portion of
this ordinance is for any reason
held to be invalid or unconstitu-
tional by the decision of any
court of competent jurisdiction,
such decision shall not affect the
validity of the remaining portions
of t h i s ordinance. The C i t y
Council of the City of Newport
Beach hereby declares that it
would have adopted this ordi-
nance and each section, subsec-
tion, sentence, clause, phrase, or
portion thereof, irrespective of
the fact that any one or more
sections, subsections, clauses,
phrases or portions be declared
invalid or unconstitutional.
fc:a�
DEN. It shall be unlawful for
any officer or employee of the
SECTION 27. The above and
City of Newport Beach having
foregoing Ordinance No. 581
an administrative duty under this
shall be published once in the
ordinance make known any
NEWPORT- BALBOA PRESS, a
manner whatever the busines s
e s
newspaper of general circulation
fairs, operations, cr Information ion
printed, published and circulated
obtained an investigation
In the City of Newport Beach,
records and d equipment of any re- -
and shall take effect and be in
taller or any other person visited
force October 1, 1948, being more
or examined in the discharge of
than thirty days after Its publi-
official duty, or the amount mount or
cation.
source of income, profits, losses,
I hereby certify
Y y that the fore -
expenditures, or any particular
going Ordinance was Introduced
thereof, set forth or disclosed In
at a regular meeting of the City
any return, or to permit any re-
Council of the City of Newport
turn or copy thereof or any book
Beach held on the 9th day of
containing any abstract or part.
August, and
and
iculars thereof to be seen or ex-
ss and48,
p adopted
d on the
amined by any person, except
day of August, 1948, by the
a Court of competent jurisdiction
City Council at a regular meeting
may require in any criminal or
thereof, by the following r o 1 l
civil action, involving the pay.
call vote, to -wit: y
ment of said tax, to have pro -
AYES, COUNCU -,MEN: Greely /
duced in court all records of the
Robertson,; Isbell, Blue and',
tax payer and except said records
_
Drake.
may be examined and audited by
_
NOES, COUNCILMEN: None
any administrative officer or
ABSENT, COUNCILMEN: None F
auditor in the employ of said
__-
ATTEST: C. K.1PRIEST ..
City at any time. Provided fur-
CITY CLERK -
ther, the City Council of the
of Newport Beach may, by mot-
No. 1O0— Newport- Balboa Press. ,
Ion, authorize examination of the
August 26, September, 12, J' -
City of Newport Beach, do hereby certify
No. 561 is a true and correct copy of an
Council at a regular meeting held on the
L that same was printed and published ac-
eat, Clerk of the City of ewpor