HomeMy WebLinkAboutOrdinance 443 N.C.S. 05/31/1956SF R D /NAAICE W0,941/Y SECTio.Y
ORDINANCE NO. 443 N. C. S.
Introduced by Councilman MILTON
GUSTAFSON
Seecnded 'by Councilman JOHN J.
KING.
AN ORDINANCE OF THE CITY OF
PETAiUn_A_IMPOSING AN EXCISE
TA'X ON THE STORAGE, USE OR
OTHER CONSUMPTION OF TAN-
GIBLE PERSONAL PROPERTY.
BE IT ORDAINED BY THE COUN-
CIL OF THE .CITY OF PETALUMA
AS FOLLO
Section 1. DEFINITIONS. The fol-
lowing_ words and phrases; when-
ever used in this ordinance, shall be
construed as defined in this section
unless it ,appears from the context
hat a different meaning is intended.
A.. "Sales price" means that total'
amount for which tangible personal
propert,v is sold, valued in money,
wli -thee paid in money or otherwise,
without any deduction on account of
^n,- of- the following:
01 The c of the property sold;
(2) The cost of "materials used
labor or service cost, interest
Charged, losses, or any other ex-
per, se.s:
(3) The cost of transportation of
the 'property ,prior to its purchase.
The total : amount for which • the
! r, i�'rty is sold includes all of the
[allowing:
"i Any s- ervices that are a part
cf +he sale:
^? ny amount for which credit
it +i
to the purchaser by the
�i price°' does not include any
t t.h,i: following:
f'1 : Cash discounts allowed *,and
t,- R -n, cn sates;
I2,1 The amount charged for prop -
.•rty, return ^.d - by customers when
at' ertir� amount is refunded
either; in cash or credit but this,
e rlusion shall not apply in any
instance when the customer, in or-
der 4n obtain the refund, is re-
quires '`.o' purchase other property
at, a.' price rreatef than the amount
charged for the :property that is
returned.
(2) The amount charged for ]a-
1bor or services rendered in in-
0:01ing or applying the property
sold.
(4)' T]7 amount of any federal tax
imunsed upon or with respect to
till sales whether imposed upon
the;- retailer or upon the consumer
-.nd 'regardless of whether or not
ih- amount of federal tax is stated
to customers as a separate charge,
an,', the amount of any - California
Ftatr 'sales or use tax. (The term
"gro`ss
receipts" includes the
amount of any manufacturer.'s or
importer's excise tax included in
the nrice of the, property sold, even
though the manufacturer or im-
nnrte.r. is also the retailer thereof,
2nr1' Nvhe.thrr or not the amount of`
snob tax is stated as a separate
cii a rge.�
(5) Transportation charges sep-
z.rafely stated. if the transporta-
N n. occurs after the purchase of
th, ni ^ ^rl:v is made.
B. "`L;r.A" includes the exercise of
a)1v rl ^ht ^r power over tangible
oersofia,l" "'property incident to the
o.wnersb'^ of that property; subject,
however, to the following exceptions:
(1) It do -s not include the sale
of that property in. the regular
course of business.
(2) It decs 'not include the stor-
age, use of other consumption of
tangible personal property, the
.qross recei»ts .from the sale of or
the: cost, of which has been sub -
.ject to sales or use tax under a.
Talcs or use tax ' ordinance. whether
enacted in accordance with or; pur-
noitiiig to be in accordance with,
Part '1.5 of Division. 2 of the Rev, -
enue and Taxation Code of the
State of California by any other
city and county, county other than
Sonohia Comity, or city in this state,
or enacted in. accordance with the
organic law of any such city.
(3) It does not include the stor-
age or use of tangible personal
property in the transportation, or
transmission of persons, property'
or communications, or in the gen-
eration, transmission or distribu-
tion of electricity or in the man=
ufacture, transmission or distribu-
tion of. gas in intrastate, interstate
or foreign commerce by public. util-
sties which are regulated by the
Public Utilities Commission of the
State of California.
(4) It does not include the use
or consumption of property pur-
chased by operators of common
carrier and waterborne vessels to
be used or consumed in the over-
ation of such common, carriers or
waterborne" vessels principally out-
side the City.
-C. The word "storage ", as used in
this article, includes any keeping,or
retFrition in the City for any pur-
pose except sale in -the regular
course of business or subsequent use
solely outside this - City of tangible
personal property purchased from a
retailer.
Section 2. IMPOSITION AND RATE
OF TAX. An excise tax is hereby
imposed on the storage, use or other
consumption in the City of Peta-
luma of tangible personal property
purchased from any retailer on or
after the effective date of this ordi-
nance for storage, use or other con-
sumption in said City at the rate of
one percent 0%) of the sales price
of the. property.
Notwithstanding the foregoing pro-
visions of this section, where the
Sales price of tangible . personal prop -
erty purchased for storage, use or
, ther consumption i$ the City of
Petaluma pursuant to a contract of.
sale actually executed in good faith
prior to July 1, 1956, includes Peta-
luma City sales or use tax, the rate
of tax applied shall be that rate in
effect 'when ' the contract is executed.
Sertion 3. USE TAX LEVIED IN
SAME ?MANNER AS STATE TAX.
The tax hereby levied, except as
otherwise herein provided, is levied
in the same manner. to the same
extent and under the same condi-
tions - , as use taxes are levied pur-
suiant.tn.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 January 1, 1956.
Section 4. ADOPTION OF STATE
USE TAX LAW BY REFERENCE. EX-
CEPTIONS *
9. All of the provisions of the
"Sales and Use Tax Law as amend-
ed and in force and effect on Janu-
ary 1, 1956, except the _ provisions
pertaining solely to the "Sales Tax"
and Sections 6008, 6009, 6011', 6201
to 6204, inclusive. 6207, 6226, 6241 to
R,2 46, inclusive, 6355, 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 pro-
visions of any other ordinance in
conflict therewith are inapplicable
to this ordinance and the tax hereby
imnesed.
B. The term "sales price' shall
not include the amount of any Cal-
ifornia state sales tax or use tax.
C. All of the provisions of the
"Sales and lice 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
Citv of Petaluma. All other provi-
sions of the state "Sales and. Use
Tax Law" hereby adopted' providing
for the performance of.offic_ialaction
on the part of the State Board of
Enuali "ration shall be performed by
the City Clerk.
D. 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 ".
E. The City Attorney of the City
of Petaluma 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 Auditor shall be
deemed substituted for the State
Controller and State Board of Con -.
trol whenever the State Controller
or State Board of Control are re-
ferred to in said "Sales and Use
Tax Law ".
G. The County of Sonoma shall be
deemed substituted for the County
of Sacra rrcnto whenever the Coun-
ty of Sacraiiienf6 is referred 'to in
said "Sales and Use Tax Law ".
Section 5.— ADOPTION OF RULES
AND REGULATIONS- BY REFER-
ENCE. The rules' and regulations of
the State Board of Equalization per-
taining to the interpretation, admin-
istration and enforcement of the
"Sales and Use Tax Law ", insofar
as applicable, shall apply to the in-
terpretation! of this ordinance until
specifically abandoned by the rules
and regulations adopted by the City
Council pursuant to this ordinance.
Section .6` INTERPRETATION. The
inclusion of any clause, portion or
part of the "Sales and Use Tax
Law ", Part 1, Division 2, of the Rev-
enue and. Taxation Code, of the State
of California, verbatim in this or-
dinance shall not in or of itself be
deemed to exclude any of the re-
maining provisions of said "Sales and
Use Tax Law" that are made a part
hereof by reference only.
Section 7. DUTY TO COLLECT
TAX. Every retailer maintaining a
place of business in this City shall
apply to the City Clerk for authoriza-
tion to collect the tax imposed by
this ordinance. Any retailer not main-
taining a place 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 retailer maintaining a place of
business in the 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 6. PERSONS LIABLE TG
TAX. Every person storing, using or
otherwise consuming in this City
tangible personal property purchased
from a retailer, is liable for the tax;
provided, however no tax shall be
due hereunder if the tax imposed.
by Ordinance No. 442 N. C. S. of the
City of Petaluma has been paid on
the sale of such property. The liabil-
ity of such person is not extinguished
until the tax has been paid to the
City of Petaluma except that a re-
ceipt from a retailer authorized pur-
suant to Section 7 hereof to collect
the tax, given to the purchaser pur.
scant to Section 9 hereof, is suf-
ficient to relieve the purchaser from
further liability for the tax to which
the receipt refers.
Section 9. COLLECTION OF TAX
BY RETAILER. Every retailer who
is authorized by the City Clerk tc
collect -the tax imposed by this ordi;
nance and who makes sales of tan-
gible personal property for storage,
use or other consumption in this
City, not exempted under the pro-
visions of this ordinance, shall col -
lect the tax from the purchaser at
the time of making the sale, or, if
the storage, use or other consump-
tion of the tangible personal prop -
erty,is not then taxable hereunder,
at the time the storage, use or other
consumption becomes taxable. Upon .
collecting the tax, the retailer, on de-
mand, shall give to the purchaser a
receipt therefor in the manner and
form prescribed by the City Clerk.
The tax so collected by the retailer
s'iall 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 provided in
this ordinance.
Section 10. SEPARATE DISPLAY
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.
(continued)
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ORDINANCE NO. 443 N. , C. S.
(continued)
Section 1:1_. PERSONAL PROPERTY
TO WHICH TAX APPLIED. Except
es, otherwise specifically exempted,
the tax hereby imposed applies to
all tangible personal property loca-
ted in this City and purchased from
a retailer, provided, however, that
if the retailerr in good faith takes
from the purchaser a certificate that
the property was purchased prior to
the effective date of this ordinance
(a itias,not purchased for storage, use
or consumption in this City and has
not been nor will be so stored, used
or co isuiiied, he shall be relieved
of liability to collect and pay- the
tax. The certificate shall be signed
by and bear the name of the pur-
chases, shall indicate the address
,)C the purchaser and the place where
such 'tangible personal property will
be stored; used or consumed, the
date of purchase, and shall be sub -
FF;antially -i.n such form as the City
Clerk' may prescribe.
Section 12. REGISTRATION OF RE-
TAILERS. Every retailer selling tan -
gible personal property for storage,
use or other _consumption in `the
City of Petaluma 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 tinder the provisions of Or-
(finance No. 442 N. C. S., shall reg-
ister ;with the City Tax Collector
and 'give""the name and address of..
such .agent or agents and office or
other; place of business in the city.
Section 13. DUE DATE OF TAXES.
Poxes imposed by this ordinance are
clue and 'payable to the City Tax Col -
,lector on or before the last day of the
month• next succeeding each quar-
terly period, the first quarterly pay -
Merit to be due and payable under
this''brdinance on or before the last
dHy, October, 1956. The City Tax
Collector may require returns and
payment of the amount of taxes for
cuarterly periods other than calen=
dar quarters' depending upon he
principal.place of or the nature of'the
business of the. seller or retailer or
may require returns and payment of
the -amount of taxes for other than
Section 14. 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 hereby imposed. Each return
filed `by a purchaser shall show the
total 'sale price of the property pur,
chased by him during the reporting
- --- - period, in respect of which a tax 3s
due under this ordinance. All re-
-turns shall also show the amount of
the taxes for the period covered by
the return •and such other infor-
mation as the City Tax Collector
deems" necessary to the proper ad-
ministration of this ordinance.
Section ;15. EXTENSION OF TIME.
WAIVER OR COMPROMISE. The City
Tax 'Collector - shall have the power.,
for -ood cause shown, to extend for
a- period of not to exceed thirty one
(31) days the time for .making any
return or paying any amount re-
quired to be paid under this ordi-
ranee; when' requested so to do in
writing, before the same becomes
- ex
delinquent. The City Tax Collector'
ex
may, with the written approval of—
an
the City Attorney,, waive, or. corn-
mi
promise any penalty or interest that
RE
would otherwise accrue under the
lan
provisions of this ordinance.. The
-
an
City Tax Collector shall make and
lei
transmit to the City Council-quartely ,
a detailed report of any so
L
waived or compromised with the rea-
to
sons therefor.
re
Section 16. SCHEDULES FOR PAY-
or
MENT OF TAX. The City - Council,
fr
by resolution shall adopt rules ,pre-
fe
scribing methods and schedules for
a
the collection and ,payment of -the
P
tax. Such schedules shall be so Ae-
termined as to facilitate collection
T
of this tax at the same time that
to
the retailer collects the tax imposed
re
under the California Sales Use
to
- and
Tax Law and so as to produce an
fu
average tax return of one percent
of
Co
(1%) on all purchases subject to
the use tax.
S ection
17. SUIT FOR TAX. All
A
taxes hereby levied shall be payable
of
to the City. Tax Collector and any
a
civil suit for the collection thereof
th
may be filed in any court of com-
of
petent jurisdiction in the State of
la
California, and the City Attorney of
'action.
th
said City shall prosecute the
ht
Section 18. RESALE CERTIFICATE.
ty
The City Tax Collector may at his
m
option accept a State of California
o
Resale Certificate as evidence that
m
any sale is not a sale for storage,
use or consumption in the City of
ti
Petaluma, or he may in his discre-
p
tion require an affidavit from the
is
seller setting forth such information
o r
respecting such sale as he deems-
o f
necessary to determine the nature of
ti
such sale.
t h
Section 19. DISPOSITION OF PRO-
ti
CEEDS. All moneys collected. under
C
,and pursuant to the provisions of
t h
this ordinance shall be deposited and
di
paid into such fund or funds as here-
se
tofore or hereafter duly authorized
t h
for deposit of .moneys collected by
t h
imposition of City of Petaluma sales
se
'and /or use tax, and such funds shall
o
be .expended as authorized and di-
u
rected by of. the City Council
,action
hereto or hereafter taken with
61
reference to expenditure of moneys
N
derived from the imposition of sales
1
tax and /or use tax by the City of
o
Petalu
a
Section 20. DIVULGING OF INFOR-
1.
MATION FORBIDDEN. No Officer or
cl
employee of the City of Petaluma
a
having an administrative duty under
1,
this ordinance shall make known in
o
any manner whatever the business
b
affairs operations, or information ob-
tained by an investigation of records
o
and equipment of any retailer or any
e
other person visited or examined in
o
the discharge of official duty, or
p
the amount or source of: income, prof-
h
its, losses, expditures; or any par.
titulars tnereor, set ;qrm or uis-
closed in any return, or: permit any
return or copy thereof or any book
containing any abstract or .particu-
lars thereof to be seen or examined
by any person. However, the City
Council may, by resolution, authorize
examination of the returns by fed-
eral or state officers or employees
or by the tax officers of this or any
other city if a reciprocal arrangement
its. Successors, receivers, trustees,
tutors, "administratorsi assignees,
I.- guarantors, if directly interested,
y be given, information as to th
ns included' in the measure and
punts of, -any' unpaid tax or
punts of tax to be col-
Section 21. -FALSE AND FRAUDU-
ENT RETURNS. •No person required
make; render, sign or verify any
port under the provisions` of this
dinance, shall make any false or
audulent return, with intent to de-
at or evade 'the determination of
n amount due and required to be
aid hereunder.
Section 22. FAILURE TO MAKE RE -,
URN OR, FURNISH DATA. No re-
iler or other person shall fail or
fuse to furnish any return required
be made or fail or refuse to
rnish a supplemental return or
her data required by the City Tax
ollector, or render a false or fraud -
ent return.
Section 23. PENAL PROVISIONS.
ny person violating any provision`
this ordinance shall be guilty of
misdemeanor, and upon conviction
ereof shall be punishable by a fine
not more than Five Hundred DoP'
rs (6500:00), or by imprisonment in
e City Jail of the City of Peta-
ma or the County Jail of the Coun-
of Sonoma for a period of not
ore than six months (6) months,
r by both such fine and imprison.
ent.
Section 24. VALIDITY. If any sec -
on, subsection, sentence, clause,
hrase, or portion of this ordinance
for any reason held to be'invalid
unconstitutional by the decision
any court of competent jurisdic-
on, such decision shall not affect
e validity of the remaining parr
ons of this ordinance. The City
ouncil of this City hereby declares
at it would have adopted this or-
nance and each section, subsection,
ntence, clause, phrase, or portion
ereoof, irrespective of the fact
at any one or more sections, sub-
ctions, sentences, clauses, phrases
r portions be declared invalid or
nconstitutional.
Section 25. REPEAL. Ordinance Nc.
6 C. S. as amended by Ordinances
os. 619 C. S., 622 C. S., • 625 C. S.,
17 N. C. S. and 217 N. C. S. and all
of ordinances in conflict herewith
re hereby repealed effective July
1956, except that all rights and
aims and remedies of city accrued
nd existing hereunder prior to July
1956, shall continue until all tax
bligations to city thereunder have
be fully satisfied.
Section 26. EFFECTIVE DATE. This
rdinance shall be in full f and
(feet from and after July 1, 1956
r as soon thereafter as all appre-
riate conditions precedent of lacy
a
en ve been complied with.
Ordered published this 24th day of
ay, 1956.
AYES: Councilmen Adams, Brown,
Ing, and Mayor Schoeningh.
NOES: Councilmen Gustafson an.d.r
orwood.
ABSENT: Councilman Bigelow.
Signed Vincent J. Schoeningh
Mayor of the City of Petaluma
ttest:
ladys 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 and Gustafson..
NOES: Councilman Norwood.
ABSENT: Count lme Adams and -Kin
g•:
Attest: o
d
(SEAL)- City Clerk.
The foregoing Ordinance "Number 443 N. C S., having been regularly
passed and. presented to me this 31st day of May, 195.6 is hereby approved by
me this' 31st day of'May, 19
EFFECTIVE . DATE: July 1, .1956.
Mayor..
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