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HomeMy WebLinkAbout652 - Excise Tax on Tangible Personal PropertyE CJ U ORDINANCE NO. 652 AN ORDINANCE OF THE CITY OF NEWPORT BEACH D/I POSING AN EXCISE TAX O THE USE OR OTHER CON- SUMPTION OF TANGIBLE PERSONAL PROPERTY The Council of the City of New- port Beach does ordain as follows: SECTION 1: Sections 6413 and 6514 of the Municipal Code of the City of Newport Beach are hereby repealed. SECTION 2: There are hereby added to the Municipal Code of the City of Newport Beach, Sec- tions 6413.1 through 6413.26 to read as follows: "Section 6413.1 'Use' Defined. 'Use' includes the exercise of any right or power over tangible per- sonal property incident to the ownership of that property, sub- ject, however, to the following ex- emptions: (a) It does not include the sale of that property in the regular course of business; (b) It does not include the keeping, retaining; or exercising of any right or power over tangible personal property shipped or brought into this City and which is thereafter transported outside the City for principal use or con- sumption outside the City, and which property is actually so used or consumed; (c) It does not include the use of such property for the purpose of being, processed, fabricated, or manufactured into, attached to or incorporated into, other tangible personal property which is to be transported outside the City and thereafter used principally outside the City, or which is to be subse- quently sold or resold in the regu- lar course of business; (d) It does not include the ex- ercise of any right or power over tangible personal property inci- dent to ownership of that pro- perty if such property was pur- chased for principal use or con- sumption outside the City and is so used or consumed. (e) It does not include the use of tangible personal property ac- tually employed in the transporta- tion or transmission of persons, property, gas, electricity or com- munications in intra- state, inter- state or foreign commerce by pub- lic utilities regulated by the Pub- lic Utilities Commission of the State of California. Section 6413.2 Imposition and Rate of Tax. An excise tax is hereby imposed on the use or other consumption in the City of Newport Beach of tangible per- sonal property purchased from any retailer on or after the effective date of this ordinance for use '.or other consumption in said City at the rate of one (1) per cent of the sales price of the property. Section 6413.3 Use Tax Levied in Same Manncr as State Tax. The tax hereby levied, except as other- wise herein provided, is levied in the same manner, to the same ex- tent and under the same conditions as use taxes are levied pursuant to Part I of Division 2 of the Cali- fornia Revenue and Taxation Code, known as the "Sales and Use Tax Law ", as amended and in force and effect on October 1, 1951. Section 6413.4 Adoption of State Use Tax Law by Reference. Ex- ceptions. All the provisions of the "Sales and Use Tax Law" as amended and in force and effect on October 1, 1951, except the pro- visions visions thereof pertaining solely t the "Sales Tax" and Sections 6008, N 6201 to 6204, inclusive, 6207, 6226, 6241 to 6246, inclusive, 6403, 6453, 7052, 7056. 7057, 7101, 7102, 7151, 7152 and 7153, are hereby adopted and made a part of this Ordinance as though fully set forth herein, and all provisions of any other or- dinance in conflict therewith are inapplicable to this Ordinance and the tax hereby imposed; provided that the term "sales price" shall not include the amount of any California State sales tax or use tax, and that the word "storage" shall for the purposes of this Ordi- nance be deemed deleted from those provisions of the California Revenue and Taxation Code adopted by reference, it being the intent of the Council that the tax imposed by this Ordinance shall not apply to the storage of tan- gible personal property. 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 Council of the City of Newport Beach. All other provisions of the State "Sales and Use Tax Law" hereby adopted pro- viding for the performance of offi- cial action on the part of the State Board of Equalization shall be per- formed by the City Clerk. The City of Newport Beach shall be deemed substituted for the State of California whenever the State is referred to in said "Sales and Use Tax Law ". The City Attorney of Newport Beach shall be deemed substituted for the Attorney General when- ever the Attorney General is re- ferred to in said "Sales and Use Tax Law ". The City Auditor shall be deemed substituted for the State Controller and State Board of Control whenever the State Con- troller or State Board of Control are referred to in said "Sales and Use Tax Law ". The County of Orange shall lie . deemed substituted for the County of Sacramento whenever the County of Sacramento is referred to in said "Sales and Use Tax Law ". Section 6413.5 Adoption of Rules and Regulations by Refer- ence. The rules and regulations of the State Board of Equalization pertaining to the interpretation,' administration and enforcement of the "Sales and Use Tax Law ", in- sofar as applicable, shall apply to the interpretation of this ordin- ance until specifically abandoned by the rules and regulations adopted by The Council pursuant to this ordinance. Section 6413.6 Interpretation. The inclusion of any clause, por- tion or part of the "Sales and Use Tax Law ", Part 1, Division 2 of the Revenue and Taxation Code of the State of California, verba- tim in this ordinance 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 6413.7 Duty to Collect Tax. Every retailer maintaining a place of business in this City shall apply to the City Clerk for authorization to collect the tax imposed by this ordinance. Any retailer not maintaining a place 0 of business in this City may apply to the City Clerk for authorization to collect the tax hereby imposed. Upon receipt of any application in such form as required by him, the City Clerk, in the case of a re- tailer maintaining a place of busi- ness in this City shall authorize, and in the case of a retailer not maintaining a place of business in the City, may authorize the appli- cant to make such collections and to forward the same to the City Clerk. Section 6413.8 Persons Liable to Tax. Every person using or otherwise consuming in this City tangible personal property per - chased from a retailer, is liable for the tax; provided however, no tax shall be due hereunder if the tax imposed by Sections 6400 through 6412 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 re- tailer authorized pursuant to Sec- tion 6413.7 hereof to collect the tax, given to the purchaser pursu- ant to Section 6413.9 hereof, is sufficient to relieve the purchaser from further liability for the tax to which the receipt refers. Section 6413.9 Collection of Tax by Retailer. Every retailer who is authorized by the City Clerk to collect the tax imposed by this or- dinance and who makes sales of tangible personal property for use or other consumption in this City, not exempted under the provisions of this ordinance, shall collect the tax from the purchaser at the time of making the sale, or, if the use or other consumption of the tan - gible personal property is not then taxable hereunder, at the time the use or other consumption becomes taxable. Upon collecting the tax, the retailer on demand, shall give to the purchaser a receipt there- for in the manner and form pre- scribed by the City Clerk. 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 elsewhere pro- vided in this ordinance. Section 6413.10 Separate Dis- play of Tax From List or. Other Price. The tax so collected 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 6413.11 Personal Pro- perty to Which Tax Applies. Ex- cept as otherwise specifically ex- empted, the tax hereby imposed applies to all tangible personal property located in this City and purchased from a retailer; provid- ed, however, that if the retailer in good faith takes from the pur- chaser a certificate that the pro- perty was purchased prior to.the effective date of this ordinance or was not purchased for use or con- sumption in this City and has not been nor will be so used or con- sumed, he shall be relieved of lia- bility to collect and pay the tax. The certificate shall be signed by and bear the name of the pur- chaser, shall indicate the address of the purchaser and the place where such tangible personal pro- perty will be used or consumed, the date of purchase, and shall be Clerk deems necessary to the Successors, receivers, trustees, exe- substantially in such form as .the proper administration of this or- cutors, administrators, assignees, City Clerk may prescribe. dinance. and guarantors, if directly inter - Section 6413.12 Exemptions. In Section 6413.16 Extension of ested, may be given information addition to those exemptions con- Time. Waiver or Compromise. The as to the items included in the tained in Part 1 of Division 2 of City Clerk shall have power, for measure and amounts of any un- the California Revenue and Tax- good cause shown, to extend for paid tax or amounts of tax re- ation Code which are incorporat- a period of not to exceed thirty- quired to be collected, interest and ed into this ordinance by refer- one (31) days the time for making penalties. ence, there shall be excluded from any return or paying any amount Section 6413.22 False and Fraud- the computation of the tax the required to be paid under this or- silent Returns. No person required sales price of: dinance, when requested so to do to make, render, sign or verify (a) Purchases made by the in writing, before the same be- any report under the provisions State of California or by any comes delinquent. The City Clerk of this ordinance, shall make any agency, department, political sub- may, with the written approval false or fraudulent return, with division, district or municipal cor- of the City Attorney, waive or intent to defeat or evade the de- poration thereof; compromise any penalty or inter- termination of an amount due and (b) Purchases of tangible per- est that would otherwise accrue required to be paid hereunder. sonal property to be used in con- under the provisions of this ordi- Section 6413.23 Failure to Make nection with the erection, con- nance. The City Clerk shall make Return or Furnish Data. No re- struction, repair or alteration of and transmit to the Council quar- tailer or other person shall fail either public works or buildings terly, a detailed report of any or refuse to furnish a supplemen- belonging to or being constructed sums so waived or compromised tal return or other data required by or on behalf of or for the use with the reasons therefor. by the City Clerk, or render a of the United States Government, Section 6413.17 Schedules for false or fraudulent return. the State of California or any Payment of Tax. The Council, by Section 6413.24 Penal Provis- agency, department, political sub- resolution, shall adopt rules pre- ions. Any person violating any division, district or public or mu- scribing methods and schedules provision of this ordinance shall nicipal corporation of the State; for the collection and payment of be guilty of a misdemeanor, and (c) Purchases made pursuant the tax. Such schedules shall be upon conviction thereof shall be to contracts actually executed in so determined as to facilitate col- punishable by a fine of not more good faith prior to October 8,1951; lection of this tax at the same than Five Hundred Dollars ($500. - (d) Purchases of property upon time that the retailer collects the 00), or by imprisonment in the which a sales tax, purchase tax, tax imposed under the California City Jail of the City of Newport use tax, purchase and use tax, or Sales and Use Tax Law and so to Beach or the County Jail of the any of them, has been legally im- Produce an average tax return of County of Orange for a period of posed by and paid on the same one percent 0%) on all purchases not more than six (6) months or transaction to any city of the subject to the use tax. by both such fine and such impris- State of California. Section 6413.18 Suit for Tax. onment. Section 6413.13 Registration of All taxes hereby levied shall be Section 6413.25 Validity. If any Retailers. Every retailer selling payable to the City Clerk and any section, subsection, sentence, tangible personal property for use civil suit for the collection there- clause, phrase, or portion of this or other consumption in the City City of may be filed in any court of ordinance is for any reason held to of Newport Beach and which . competent jurisdiction in the State be invalid or unconstitutional by . maintains a place of bugh, of California, and the City Attor- I the decision of any court of corn- ness ness in said City or acts through' ney of said City shall prosecute P etent P jurisdiction, such decision agents located in said City and the action. shall not affect the validity of the • which retailer is not licensed un- Section 6413.19 Resale Certifi- remaining portions of this ordi- der the provisions of Sections 6400 cate. The City Clerk may at his nance. The Council of this City through 6412 of the Municipal option accept a State of California hereby declares that it would have Code of the City of Newport Resale Certificate as evidence that adopted this ordinance and each Beach, shall register with the City any sale is not a sale for use or section, subsection, sentence, Clerk and give the name and ad- consumption in the City of New- clause, phrase, or portion thereof, drewdress of such agent or agents and port Beach, or he may in his dis- irrespective of the fact that any or other place of business cretion require an affidavit from one or more sections, subsections, in the Cit t' the seller setting forth such in- sentences, clauses, phrases or por- Section 6413.14 Due Data of formation respecting such sale as tions be declared invalid or un- Taxes. Taxes imposed by this Or- lie deems necessary to determine constitutional. dinance are due and payable to the nature of such sale. Section 6413.26 Effective Date. the City Clerk on or before the Section 6413.20 Disposition of This ordinance, inasmuch as it pro - last day of the month next suc- Proceeds. All monies collected un- der vides for a tax levy for the usual ceeding each quarterly period, the and pursuant to the provis- current expenses of the city, shall, first quarterly payment to be due ions of this ordinance shall be de- under the provisions Section 1 and payable P Y under this ordinance posited and paid into the General of Article IV of the Constitution, C on or before the last day of Janu- Fund of the City of Newport take effect immediately." ary, 1952. The City Clerk may require returns Beach. Section 6413.21 Divulging of In- n SECTION is This ordinance r a shall be published at least once in and payment of P Y the amount of taxes for quarterly formation Forbidden. officer the Newport Harbor Ensign, a periods other than calendar or employee of the City of New- newspaper of general circulation, quar- ters depending upon the principal port Beach having an administra- printed and published in the City place of or the nature of the busi- tive duty under this ordinance of Newport Beach and shall be in ness the shall make known in any manner I force and effect immediately upon seller or retailer or re may require returns and payment whatever the business affairs, op- erations, or information its final passage. The of the amount of taxes for other than quarterly obtained by an investigation of records and I above and foregoing ordi- nance was introduced at a regular periods. Section 6413.15 Returns. Each equipment of any retailer or any meeting of the City Council of the return filed by a retailer shall other person visited or examined in the discharge of official duty the City of Newport Beach, held on the 24th show the total sale price of the or amount or income, day of September, 1951, property sold by him during the reporting in source of profits, losses, expenditures, or an and was finally , passed and adopted on the 8th day f October, period respect of which he collected the tax hereby particulars thereof, set forth or disclosed in any 1.551 by the following vote,-to wit: imposed. Each return filed by a return, or permit any return or copy thereof or any AYES, COUNCILMEN: Finch Ramsey, Greeley, Isbell purchaser shall show the total sale price of the property book containing any abstract or IdOE COUNCILMEN: None pur- chased by him during the report- particulars thereof to be seen or ABSENT COUNCILMEN: Blue in,- Period, in respect of which a tax is examined by any person. How- ever, the Council may, by resolu- L. L. ISBELL Ma or • due under this ordinance. All returns shall tion, authorize examination of the ATTEST: Y also show the amount of the taxes for the period returns by Federal or State offi- cers or employees or by the tax C. K. PRIEST covered by the return and such other information officers of this or any other city City Clerk Publish: Oct. 11, 1951 as the City if a reciprocal arrangement exists. 1 in the Newport Harbor Ensign. • STATE OF CALIFORNIA COUNTY OF ORANGE SS. CITY OF NEWPORT BEACH I- ------------------------- Q . --- R._- P.$IEST----------------- ._.._ City Clerk of the City of Newport Beach, California, do hereby certify that the foregoing ----------- QT' d1a an- 4- e-------------------------------------------- No --------- 65? ------------------- 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 regular meeting place thereof, on the ------- th- -------- day. of ----------------------- Qto er_-- ___-------- .19 -51_- by the following vote: AYES: COUNCILMEN ------ lnoh,- .- Ramse- yr- -fir -e- elegy-,.-- Ishe- 11---------------------------------------- NOES: COUNCILMEN. -- -None ABSENT: COUNCI Dated this --- 2?th --------- day of ti NB 130 - 500 -6/51 -------- 0- ctober -------------------------------------------- 1951 - -- ----- - - - - -- -. '-------------- - - - - -- City Clerk and Ex- Officio Clerk of the City Council, City of Newport Beach. State of California Me