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HomeMy WebLinkAboutOrdinance 442 N.C.S. 05/31/19564( 4-/9 A/c • S, S ECTiaN`� 1 ORDINANCE NO. 442 N. C. S. Introduced by Councilman IV. C. BROWN Seconded by Councilman WAL- LACE A. ADAMS. AN ORDINANCE OF THE CITY OF PETALUMA IMPOSING A LICENSE TAX FOR THE PRIVILEGE OF SELLING TANGIBLE PERSONAL PROPERTY AT RETAIL, PROVID- ING FOR PERMITS TO RETAIL- ERS, PROVIDING FOR THE COL- LECTING AND...PAYING OF SUCH TAX, AND .PRESCRIBING PENAL- TIES FOR VIOLATIONS OF THE =PROVISIONS HEREOF. BE IT ORDAINED BY THE COUN- CIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. IMPOSITION AND RATE OF TAX. For the privilege of. selling tangible personal property at retail a tax is hereby imposed upon all re- tailers at the rate of one percent (i,) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City of Petaluma on or after July 1. r 1956. The tax imposed by this ordinance is in addition to any and all other taxes imposed by any other ordinance of the City of 'Petaluma. Section 2. TAX LEVIED IN SAME T0ANNER AS STATE TAX. The tax hereby levied,, except as otherwise ha -rein provided, Js levied -in the same ,-r.annpr, to the same extent and un- dnr the same conditions as sales tay._s are levied pursuant to.,Part 1 pf Division 2 of the California Rev- enue and Taxation Code, known s the "Sales and Use Tax Law", as zmended and in force and effect on January 1, 1956. Section 3. ADOPTION OF STATE SALES TAX LAW BY REFERENCE. EXCEPTIONS. A. All of the provisions of the "Sales and Use Tax Law", as amend- ed and in force and effect on January 1.. 1956, except the provisions there. 6f pertain_ ing solely to the "Use Tax" and Sections 6051, 6052, 6053, 6056, 6067, 6068, 6069,6070, 6071, 6451, 7052, 7056, 7101, 7102, 7151, 7152, 7153, .nrnlicable to "sales of property at retail, are hereby adopted and made a ,part of this ordinance as though fully set forth herein, and all pro- cisinns of any other ordinance in conflict therewith are inapplicable t,. this ordinance and the tax here- by imposed. B. The term "gross receipts", as used herein, does not include the aaiount of any tax imposed by the State of California upon or. with re- spect to retail sales whether im- posed upon the retailer or upon the consumer. C. The term "sale" shall mean and include. in addition to the meanings contained in paragraph A of this section, the withdrawal by a retailer .in this City of tangible personal property from a place in this City, from a place in California outside this City under the control of the `retailer, or from a place in California outside this City at the order of the retailer, for delivery in any manner at! a point in California outside this City under such circumstances that We transaction of which the with- drawal is a part would have been considered a sale within the meaning of, paragraph A of this section had the point of delivery been within this City. Provided, however, that withdrawals pursuant to a transac- tion in foreign or interstate com- nierce shall not be sales for the pur- pose of this section. Charges made for the delivery of tangible personal property so withdrawn shall be, in- eliuded in the gross receipts by which the tax `imposed under this section is measured unless such charges are separately. stated and are imposed for transportation which occurs after the sale of the property to the purchaser. D. 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 per= formed by the City Council of the City of Petaluma. All other provi- sions of the "Sales and Use Tax Law" hereby adopted, providing for the performance of official action on the part of the State Board of Equal- ization, shall be performed by the City Tax Collector of the City of Petaluma. E. The City of Petaluma shall be deemed substituted for the State of California whenever the State is re- ferred to in said "Sales and Use Tax Law". l F T.he City Attorney of the City of Petaluma shall be deemed substi- tuted for the Attorney General when- ever the Attorney General is referred to in said "Sales and Use Tax Law". G. The City Auditor of the City of Petaluma shall be deemed substituted For the State Controller whenever the State Controller or State Board of Control are referred to in said "Sales and Use Tax Law". H. The County of Sonoma shall be deemed substituted for the County of Sacramento whenever the County of Sacramento is referred to in said "Sales and Use Tax Law". Section 4. EXEMPTIONS. In addi- tion to the exemptions contained in Part I of Division 2 of the Revenue and Taxation Code of the State , of California, after July 1, 1956, there shall be excluded from the compu- tation of the tax gross receipts from: A. Sales or use tax' imposed by the State of California upon a re- tailer or consumer. 'lie sale of tangible personal property upon which a sales or use t-x h— become due by reason of the same transaction to any other city and county, county other than So- noma County, or city in this state under ; sales or use tax ordinance enacted by that city and county, county ether than Sonoma County, or city in this state, whether in ac- cordance with, or purporting to be in accordance with Part 1.5 of Division 2 of th^ Revenue and Taxation Code of the State of California, or in ac- ner,i,nn..e w0th the organic law of any such city. r. males to operators of common carrier and waterborne vessels of property to be used or consumed in the operation. of such common car- r`,rs or waterborne vessels prin- cipally outside of this City. D. Sales made pursuant to con- tT�cts actually executed in good faith prior to the effective date of this ordinance. �ect.inn 5. ADOPTION OF RULES AND REGULATIONS BY REFER- ENCE. INTERPRETATIONS. - T h e rules and regulations of the State Board of Equalization as amended and anal effect Januarys, 1956. pertaining to the interpretation, ad. —inistration and enforcement of the "Sales and Use Tax Law", insofar as applicable, except Rule No. 55 (Sec- Qnn 2015. Title 18, California Ad- ministrative Code, Sales & Use Tax) shall annly in the interpretation of this ordinance until specifically aban- doned by the ruffles and regulations adopted by the City Councilof Peta- luma nim•�uant to this ordinance. The word "City" shall be deemed substi- tuted for the word "State" whenever the word "State" appears in said rules and regulations. In lieu of Rule No. 55, specifically excepted above, the following inter- pretations shall apply in the adminis- tration of this ordinance: A. The sales tax dolt not apply to sales of property which is: (1) Imported into this City from a foreign country and sold by the importer in the original package in which imported. (2) Sold to foreign purchasers for shipment abroad and delivered to a ship airplane, or othe,r convey- ance furnished by the purchaser for the purpose of carrying the property abroad and actually car- ried to a foreign destination, title and control of the property passing to the foreign purchaser upon de- livery, and no portion of the prop- erty being .used or consumed in the United States. Copies of U. S. Customs Shippers' export declara- tions filed with the Collector of Customs must be obtained and re- tained by retailers to support de- ductions taken under this para- graph. The tax applies to the trans- action if the property is diverted in transit or for any reason not actually delivered outside the City pursuant to the contract of sale or not shipped abroad by a foreign purchaser, regardless of documen- tary evidence held by the retailer of delivery of the property to a carrier for shipment outside the - City, or to a foreign purchaser for shipment abroad. (3) Mailed by the seller, pursuant to the contract of sale,.to persons in the armed forces at point out- side continental United States, not- withstanding the property is ad- dressed in care of the Postmaster and forwarded by him to the addressee. When mail is addressed to Army Post Offices (A/P/O's) in care of the Postmaster or to naval forces addressed in care of the Postmaster, it, will be presumed that it is forwarded outside California. The seller must keep records show- ing. the names and addresses as they appear on the mailed matter and should keep evidence that the mailing was done by him. (4) Shipped to a point outside this City pursuant to the contract of sale when the property is marked for export and delivered by the retailer to the "contracting officer", "officer in charge", "Port quarter master", or other officer of the United States for transpor- tation and delivery to the pur- chaser at such a point. B. The sales tax does not apply to sales of airplanes, and parts and, equipment for airplanes, transported to a point outside this City pursuant to the contract of sale when such property is delivered to the United States Army Corps or any other agency or instrumentality of the Unit- ed States for transportation and de. livery to the purchaser or someone designated by him at that point, C. The sales tax does not apply (either in interstate or intrastate commerce) to sales of property shipped from a point outside the City of Petaluma to a purchaser in- side the City of Petaluma, or to the retailer's agent in the City of Peta. luma, for delivery to the purchaser, if none of the elements of sale, other than such delivery, takes place in the City of Petaluma. D. The sales tax does apply (either in interstate or intrastate commerce) to sales of property shipped from a point outside of the City of Peta- luma to a purchaser inside the City of Petaluma, or to the retailer's agent in the City of Petaluma, for delivery to the purchaser where any element of the sale, in addition to such delivery, takes place in the City of Petaluma. E. "Element of Sale" is hereby de- fined to include solicitation of an. order. the acceptance of an order,_ the giving of an order, whether such order is given in person, by telephone or by snail, or the payment of the purchase price. F. The City Tax Collector may ap- prove the payment of the sales tax_ by retailers located outside the city in accordance with a formula if he finds that the formula will produce the same or approximately the same tax as if detailed accounting pro- cedures had been followed. A retail- er desiring to use such a formula shall furnish such information as may be required by the City Tax Collector to enable him to make the required finding. The formula mad be used by the retailer for such a period of time, not to exceed one year, as may be authorized by the City Tax Collector in writing, and is subject to renewal, upon application, for periods not to exceed one year. Payment in full of sales taxes in accordance with an approved formula shall constitute full satisfaction of the retailer's sales tax liability. (continued) d2 0 7 1 1 ORDINANCE NO. 442 N. C. S. (continued) Section 6. VERBATIM EXCERPTS SHALLNOT EXCLUDE BALANCE. Tlie inclusion of any clause, portion ,or, part of the "State Sales and Use Tax Law", Part 1, Division 2, of the Revenue and Taxation Code of the State of California, or the rules and rwulations of the State Board of Equalization, ,verbatim in this ordi- -iance shall not in or ' of itself be deemed to exclude any of the re- maining provisions of said "Sales and Use Tax Law" or rules and regula- tions that are made a part hereof by reference only. Section 7. APPLICATION FOR PER- MI.T. Every person desiring to en ,aee in or conduct business as a seller within the. City of Petaluma shall file with the City -Tax Collector an application for permit for each i5l.ace of business from which taxable sales will be made. Every application for permit shall be made upon a form prescribed by the City Tax Collector anil shall set forth the name under which the applicant transacts or in- tends to transact business, the loca- tion of his place or places of bus- ness. and such other information as ?,e City Tax Collector may require. The application shall be signed by ?:he owner, if a natural person; in ih� case of a corporation, by an ex- cifP .officer or some person spe- irally authorized by the corpora- tinn to sign the application, to which be attached the written evi- dp' cp of this 'authority. ' Spct.ion 8. ISSUANCE AND DIS- PLAY OF PERMIT. After compli- ncc with Section 7 of this ordi- tfance by the applicant, the City Tax Collector shall grant and issue 'to each applicant a separate permit for °each place of business from which taxable sales will be made. A per- niit is not assignable and is valid only for the person in whose name it. !is issued and for the transaction of business 'at the place designated therein; provided, however, a change of location may be endorsed It Pon t;he permit by the City Tax Collec- tor. The permit shall :at all times be conspicuously displayed at the place for which 'issued. ' Section 9. PERMIT FEES. At the tirr.e of making an application for a ne'rmit,. and at the time it change of location is endorsed upon a permit. the applicant for a permit or for an endorsement of a change of location n;n! a permit shall pay to the City Tax Collector a fee of One Dollar "Section 10. REVOCATION OF PER- MIT. Whenever any person fails to comply with any of the provisions of this ordinance or any rule or regula- tion adopted pursuant hereto, the City Connell of the City of Petaluma, upon hearing, after giving the per- son ten (10) days' .notice in writing specifying the time and place of hearing and requiring him to show cause why his permit or permits should not be revoked, may revoke or suspend any one or more of the e` permits held by the person. The no- tice may be served personally or by email in the manner prescribed for the service of notice of a deficiency determination under the "Sales and Use Tax Law". The City Tax Collector shall not issue a new permit after the revocation of a permit unless the City Council of the City of Petaluma is satisfied that the former holder of a permit will comply with the pro- visions of this ordinance and the rules and regulations adopted pur- sitant_ hereto and directs the City Tax Collector to issue such permit. Section '11. RENEWAL OF PER- MIT. A seller whose permit has been previously suspended or revoked shall; pay the City Tax Collector a fee of, Five Dollars ($5.00) for the i.`eiiewal or issuance of a permit. Section 12. UNLAWFUL ACTS. A person who engages in business as a_ seller in the City of Petaluma with- out a permit or permits, or after a permit has been suspended or re- voked and before the renewal or issuance of a permit, and each offi. cer of any corporation which 'so en- gages in business, is guilty of a mis- demeanor. Section 13; DUE DATE. The''taxes imposed by this ordinance are due and payable to the City' Tax Collec- tor on or before the last day,6f'the month next succeeding each quarterly period, -the, first quarterly% payment to be due and -payable und6e,this , ordinance , on ,.the 31st `day of Octo- her, 1956. The City Tax Collector 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 require re- turns and payment of the amount of taxes for other than quarterly per- iods. Section 14. REIMBURSEMENT. The tax hereby imposed shall, be col- lected by the •retailer from the con- sumer insofar as it can be done. Section 15. UNLAWFUL ADVER- TISING. It is unlawful for any retail- er to advertise or hold out or state to the public -or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed 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. Any person violating any provision of this section is guil- ty of a misdemeanor. Section 16. SUIT FOR TAX. All taxes hereby levied shall be payable to the City Tax Collector and any civil suit for the collection thereof may be filed in any court of compe- tent jurisdiction in the State of Cali- fornia, and the City Attorney of the said City shall prosecute the action. Section 17. RESALE CERTIFICATE. The City Tax Collector 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 descretion require an affidavit from the seller setting forth such information respecting such sale as he deems necessary to determine the nature of such sale. Section 18.—EXTENSION OF TIME. WAIVER OR COMPROMISE. The City Tax Collector shall have power, for good cause shown, to extend for a period of not to exceed thirty (30) (lays the time for making any return or paying any amount required to be paid under this ordinance, when re- quested so to do in writing, before the same becomes delinquent. The City Tax Collector may, with the written approval of the City Attor- ney, waive or compromise any pen- alty or interest that would otherwise accrue under the .provisions of this ordinance. The City Tax Collector shall make and transmit to the City Council quarterly a detailed report of any sums so waived or compro- mised, with the reasons therefor. Section .19. DISPOSITION OF PRO- CEEDS. All moneys collected under and pursuant to the provisions of this ordinance shall be deposited and paid into such fund or funds -as here- tofore or hereafter duly authorized for deposit of moneys collected by imposition of City of Petaluma Sales and/or Use Tax, and such funds shall be expended as authorized and di- rected by action of. the City Council heretofor or hereafter taken with reference to expenditure of moneys derived from the imposition of Sales Tax and/or Use Tax by the City of Petaluma. Section 20. DIVULGING OF INFOR- MATION' FORBIDDEN. It is unlaw- ful for any officer or employee of the City of Petaluma having an ad- ministrative duty under this ordinance to make known in any manner what- ever the business affairs, operations, or information obtained by an inves- tigation 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 income, profits, losses, ex- penditures, or any particular there- of, set forth or disclosed in any return, or to permit any return or copy thereof of any book contain- ingyany abstract or particulars there• of to be seen or examined by any person. However, the City Council' may by resolution, authorize exami- nation 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, trustees, execu- tors, administrators, assignees, and guarantors, if directly interested, may be given information as to the items included in the measure and amounts of any unpaid tax or amounts of tax required to be collected, interest and penalties. Section 21. PENALTIES. Any per- son required to make, render, sign or verify any report under the pre- visions of this ordinance, who makes any false or fraudulent return, with-__ intent to defeat or evade the deter- mination of an amount due and re-' quired to be paid hereunder, is guil- ty of a misdemeanor, and upon con- viction thereof shall be punishable by a fine of not more than Five Hup dred Dollars ($500.00) or by impris- onment for a period of not more than six (6) months, or by both such fine and imprisonment. Section 22. SAME. Any person, firm or corporation violating any of the terms of this ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than Five Hundred Dollars ($500.00) or, by imprisonment for a period of not more than six (6) months, or by both such fine and imprisonment. Section 23. SEVERABILITY. If any section, subsection, sentence, clause, phrase, or portion of this ordinance_ - is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdic- tion, such decision shall not effect the validity of the remaining por- tions of this ordinance. The Council of this City hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause; phrase, or portion thereof, irrespective of the fact that any one• or more sections, subsections, clauses; phrases or portions be declared in- valid or unconstitutional. Section 24. REPEAL. Ordinance No. 616 C. S., as amended by Ordinances Nos. 619 C. S., 622 C. S., 625 C. S., 117 N. C. S. and 217 N. C. S., and all other ordinances in conflict herewith are hereby repealed effective July 1, 1956, except that all rights and claims and remedies of City accrued and existing thereunder prior to July 1, 1956 shall continue until all obli- gations to City thereunder have been fully, satisfied.. Section 25. EFFECTIVE DATE. This ordinance shall be in full force and effect from and after July 1, 1956, or as soon thereafter as all appro- priate conditions precedent of law• have been complied with. Ordered published this 24th day of May, 1956. AYES: Councilman Adams, Brown, Gustafson and King. NOES: Councilman Norwood and Mayor Schoeningh. .ABSENT: Councilman Bigelow. Signed Vincent J. Schoeningh Mayor of the. City of Petaluma Attest: Gladys R. Wallin City Clerk I hereby certify that the within ordinance was published in full once in the Petaluma Argus-Courier, a daily paper of general circulation, published within the City of Petaluma, to -wit: May 29, 1956, and that the said Petaluma Argus- Courier is the official newspaper of the City of Petaluma. I hereby certify that the whole number of members of the Council of the City of Petaluma is seven, and that the foregoing ordinance was passed by the Council at its meeting of the 31st day of May, 1956, by the following vote, to -wit: AYES: Councilmen Bigelow, Brown, dnd` Gustdfson. NOES: Councilman Norwood and Mayor Schoeningh. ABSENT: 'Councilmen Adams and•.King. Attest: (SEAL) City Clerk:, The foregoing Ordinance Number 442 N. C. S. , having been regularly passed and presented,,to'me :this 31st' day of May, - 1956, is hereby approved by me this 31 st day of May,,. 1956. EFFECTIVE DATE: "July 1,­ 1956. ,f mayor. - l 1