HomeMy WebLinkAbout1954-08-10; City Council; 6025; Sales tax, rate and penalties\
ORDINANCZ 6025
AN OBDINmCE OF THE CITY OF CARLSBAD ESTABLISHING A SUS TAX
FIXING PED
WITHIN THE CITY OF CABLSBAD, ESTABLISHING T€E RATE THEmOF, AND
IALTIES FOB THE VIOIATION THWOF.
The City Council of the City of Carlsbad does ordaltn as follows:
IMPOSITION AND RATE OF TAX. For the privilege of selling
tangible personal ps'operty at rets-il a tax is hereby imposed upon
all retailers a% the rate of one-half (g) of one per cent of the
gross receipts of any retaifer from the sale of all tangible per-
sonal property sold at retail in the City on or after October
1954,
; in addition to any an3 all other taxes imposed by the City,
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The license tax imposed by the provisions of this Ordinance
. TAX LEVIED IN SAPE M"B3 AS STATE SALES TAX. The tax hereby
levied, except as otherwise' herein provided fs levied tn the same
manner, to the same extent, and under the same conditions a8 sales
taxes are levied pursuant to Part I of Divlsion 2 of' the California
Revenue and Taxation Code, known as the "Sales and Use Tax Law", as
amended and in force and effect on the effective date of this
Ordinance, or as the same may be hereafter amended by the state of
Calif om5 a ,
, ADOPTION OF STATE TAX LAW BY REFEREXE, EXCEPTIONS. All of
the provisions of tne Sales and Use Tax Law, as amended and In force
and effect on October 3, 1954, except the provlsions thereof per-
tainfng solely to the ftUse Taxf1 and Sections 6051, 6052, 6053, 6066,
6067, 6068, 6069, 6070, 6071, 6451, 7052, 7056, 7057, 7101, 7102,
7151, 7152, 7153,'applicable to sales of property at retail, are
hereby adopted and aade a part of the Ordiname as though fully set
forth herein, and all provisions of any other Ordinance in confliol
therewith are inapplicable to this Ordinance and to the tax hereby
imposed; provided, however, the term "gross receiptsw as used
herein, does not include the amount of any tax imposed by the State
upon or with respect to retail sales, whether imposed upon the re-
tailer o~ upon the consumer.
Section 4. IITPERPBFTATION OF STATE LAW. AJ.1 of the provisions of the Sales
and Use Tax hereby adopted, ppoviding for the adoption of rules and
regulations and for hearings on the part of the State Board of' Equal-
zation, shall be per ed by the City Counc.il, All other provisions
of the Sales and Use tax Law hereby adopted, providlng for the per-
formance of offical actfon on the part of the State Board of Equal-
ization, shall be performed by the City Clerk.
The City shall be deemed substituted for the State whenever the
State is referred to in said Safes and Use Tax Law.
The City Attorney shall. be deemed substituted for the Attorney
General whenever the Attorney General Es referred to in said Sales
and Use Tax Law.
The City Clerk
whenever the State
shall be deemed substituted for the State Controller
Controller or State Board of Control are refemed
to-36 said Sales a.nd Use Tax Law.
Section 5. EXEMPTXONS In addition to those exemptions contained in Part
I of' Division 2 of the Revenue a2d Taxation Code, included in this
ordinance by reference, there shall be excluded from the computation
of the tax, gross receipts from:
(a) Sales made to or by the State or any agency1 department,
political subdivision, district or municipal corporation thereof;
(b) Sales of property to be consumed in, or incorporated into the
ePectlon, constructton, repaip or alteration of either public works or
buildings belonging to or being constructed by or on behalf of, or for
the use of the United States Government, the State, or any agency,
department, polltical subdivision, district or public or municipal . ..*
i3 corporation of the State;
(c) Sales of meals, food and drinks sold or served ox1 common
'carrlers operating into, through, or out of the City from@ to points
... I .. e
Section 6, SARE TAX PAID TO OTHEZ CITY. No tax shall be due hereunder if
a sales tax, purchase tax, use tax, or pupchase and use tax imposed
by any othep City of the State has been paid on the same transaction,
Section 7, SANE. DELIVERY OUTSIDE CITY. The sales tax does not apply to
sales of property which isshipped to a point outside of the City pur-
suant to the oontract of sale, by delivery by the retailer to such
points by means of (1) facilities operated by the retailer, or (2)
delivery by the retailer to a carrier for shipment to 8 cons @F&eF
at such point, OP (3) delivery by the retailep to a customs bPoker
or forwarding agent for shipment outside this City, unless such ship-
ment is made for the sole purpose of avoiding said tax,
Section 8. ADOPTION OF RULE3 AEJD REGULATIONS by REFERENCE. INTERPRETATXONS
The rules and regulations of the State Board of Equalization as
ameuded and Inforce and effect on the effective date of Ordinance
No. 6025 pertaining to the interpretation, administration and enforce-
ment of the Sales and Use Tax Law, insofar as applioable, except. Rule
No. 55 (Section 2015, Title 18, California Administration Code, Sales
& Use Tax) shall apply in the fntewratation of this Ordinance untiil
specifically abandoned by the rules and regulations adopted bs the
City Council pursuant to this Ordinance. The word ilCityll shall be
deemed substituted for the word '!Staten whenever the word 'IStateft
appears in said rules and regulations,
Section 2. SANE. RULE NO. 55 INTEIPBETATIONS In lieu of Rule No. 55,
specifically excepted above, the following interpretations shall
apply in the administration of this Ordinace.
DELIVZEy ONLY MITHIN THE .CITY. Section 10, The sales tax does not apply
(either in interstate or intvastate comerce) to sales of property
shipped from a point outside the Cfty to a purchaser inside the City,
or to the retailer's agent in the City, for delivery to the purchaser,
if none of the elements of sale, other than such deliveq takes place
in the City.
Section 11. SANE: PROPERTY SHIPPED INTO CITY. The sales tax does apply
(either in interstate or intrastate commerce) to sales of property
shipped from 8 Point outside Of the City to a puarcPlaser imide the
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City, or to the retailer’s agent in the City, for delivery to the
purchaser where any element of the sale, in addition to such delivery,
takes place in the City,
Section 12, SAME; e EZEXENT OF SALE, ttE3.eaent of Salew is hereby defined
to include aq one or more of Yne following: solicitation of an order,
the acceptance of an order, the giving of an order, whether such olpdeP
is given in person, by telephone or by mail, or the payment of the
purchase price. ,
Seceion 13. V~~ATIH EXCERPTS SEALL WOT EXCLUDE BALAXCZ. The inclusion
of an,, clause, portions or part of the State Sales and Use Tax Law,
Part I, Dkvision 2 of the Bevenue and Taxation Code, OF the rules and
regulations of the State Board of Equalization, vepbatint 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 or rules and regul-
ations that are made a part hereof by reference only, .
Section 14, APPLICATION PO2 PEBP1IIT. Eveqr person desiring to engage in
or conduaf bysiness as a seller within the City, shall file with tine
City Cberk. “,an aFplication for a permit for each place of business
from which taxable sales will be mafie.
shall be @ade upon a form prescribed by the City Clerk and shall set
Every application for a permit
forth the name undep which the ap-plicant transacts or inte.ads to
transact business, the location of his place of business, and such
other information as the City Clerk may require, The application
shall be signed by the ownep, if a natural person; in the case of e.
corpopation, by an executive officer or some person specifically
authorized by $he corporation to sign &he to whfch
be attached the written evfdence of his authority,
Section 15. ISSUANCE ,II-ND DISPLAY OF PERHIT. After compliance wuith Section
14 by the applicant, the City Clerk shall grant and issue to applicant
a separate permit for each place of business from which taxable sales
will be made, A permit is not assignable and is v,alid only for the
person in whose name it is isaued and for the transaction of busines s
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at the place designated therein; provided, however, 8 change of loca-
tion may be endorsed upon the permit by the City Clerk.
shall at all times be conspicuously displayed at the place for which
issued.
The permit
Section 16. PERMIT FEES. At the time of making application for a permit,
and at the time a change of location is endorsed upon 8 permit, the
cant for a permit or for an endorsement of a change of location
on a. permit shall pay to the City Chrk a. fee of $l.OO.
Section 17. BEVOCATION OF PERMIT menever any person fails to comply
with any of the provisfons of this ordinance or aq rule or regu-
lation adopted pursuant hereto, the City Councll, upon hearing, after
giving the'person ten dzys' notice in writing specifying the time
and place of hearing and regufring hfg. to show 6atrse why hfs permit
should not be revoked, may revoke or suspend any one or more of the
pemits held by the person. The notice may be semed personally or
. by mail in the manner prescribed for the service of notice of a
deficiency determination under the Sales and Use Tax Law. The City
C&erk shall not issne a new permit after the revocation of a permit
unless the City Council Is sa-tisfied that the former holder of a perplit
will comply with the provisions of this Ordinance and the rules and
regulation adopted ptwsuant hereto and ipects the City Clerk to fssue
such permit;
Section 18. R3NEXAL OF PEB.NIT A seller whose permit has been previbus'ly
suspended or revoked shall pay the City Clerk a. fee of $5.00 for the
renewal or issuance of a pemit.
Section 19. UNLlillJFuL ACTS No person sha.21 engage in business as a seller
in the City without a permit, or after a pemnit has been suspended
OP revoked- and before the renewal or issuance of a permit and each
offfcer of any corporation who 'so enga.ges in business is guilty of
a misdemeanor.
Section 20. Dm DATE. The taxes imposed by the ord.inance are due and
payable to the City Clerk on or before the last day of the month next
succeedbg each quarterly period, the first quarterly payment to be
due and payable under this ordinance on the 3lst day of January 1935.
The City Clerk nay allow returns and payment of the amount of taxes
for quarterly periods other than calendar quarter, depending upon the
principal place of, or the nature of the business of the seller OF
Tetailer or m8.y allow retum and paymerit of the mount of taxes for
other thzn quarterly periods.
'I-ZEIMBURSENEHT Section 21. The tax hereby imposed shall be collected bp
the retailer from the consumer insofar as it can be done.
Section 22. ~LAMFUL ADVERTISI3G. No retailer shall adveytise or hold
out OF state to the public or to any consumer, directly or indirectly,
that the tax or any part thereof will be assumed OF absorbed by the
retailer or that it will not be added to the selling price of the pro-
perty sold or that, if a.dded, it or any part thereof will be refunded,
Section 23.. SUIT FOB TAX A11 taxes hereby levied shall be payable to the
City Clerk and any civil suit for the collection thereof may be filed
in any court of competent jurisdiction in the state, and the City
Attorney shall prosecute the action.
Section 24. RESALE CZRTIFICATE. The City Clerk may at his ootion accept
a State of California Resale CertificaAe as evidence that any sale$
is not a sale at retail, or he may i,n his discretion require an
affidavit from the seller setting forth such information mspecting
such sale as he deems necessary to determine the nature of such sale.
Section 21. EXTEXSIOM OF TIME. WAIVER OR COIQRORISE The City Clerk shall
have power, for good cause shown, to extend for a period of not to
exceed thirty days the time for making any return or pagfng a.ny amount
requzred to be paid under this ordinance, when requested so to do
in writing, before the same becomes delinquent.
with the %pitten mproval of the City Attorney, waive or conpromise
any penalty or interest that would. otherwise accm under the provis-
ions of this ordinance,
the City Council quarterly, a deta,iled report of any sums so waived
The City Clerk may,
a'b e
The City Clerk shall make and transmit to
or compromised with the reasons therefor.
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Section 26. DISPOSITION OP PBOCEEDS AX1 monies collected under and pur-
suane to the provisions of thfs Ordinance shall be deposited and gaid
into the General Fund of the City.
Section 27. DSWLGING OF IHFORKATIOW FORBIDDEN No officer or employee
of the City having an administrative duty under this Ordinance shall
make known in army manner whatever the business affairs, operations,
or Information obtafned by an investigation of records and equlprnent
of any retailer or any other person visited or examined in the dis-
charge of official duty, or the amount or source of income, profits,
losses, expenditures, or s.ny particular thereof set forth OF dis-
closed in any return, or permit any return OF copy thereof or any
book containing any abstract or particulars thepeof set forth OP
disclosed. in any return, or permit any return or copy thereof or any
book containing particulars thereof to be seen or examined by any
person. However, the City Council may, by resolution, authorize
examination of the returns by Federal or State officers or employees
or by the tax officers of this or any other City if 8 reciproca.1
arrangement exists, Successom, receivers, trustees, executors,
administrators, assignees, and. guarantors, if dimctly interested
may be given infomation as to the Items included and amounts of any
unpaid tax or amounts of tax required to be collecteil with interest
and penalties.
Section 28. FALSE OR FRAUDULBNT =TURN, Ho person required to make,
render, sign OP verify any reTort or return under the provigions of
this Ordinance shall make any false OF fraudulent reFort or return
with intent to defest OF evade the determination of an amount due
and required to be paia pursuant to the terms of this Ordinance.
Section 29. VIOLATIONS. FINES. It shall be the duty of' every person,
firm or corporation owning, leasing, renting OP operating a busi-
SE in the City of Carlsbad to cpmply with all the provisions of
this Ordinance and any perso?:, firm or corporation violatf-ng any
of the provislons thereof or disregarding any order of the enforce-
ment agencies or finding9 Of the city Council with respect to this
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ordinance, or contributing in any way to the vhhlation of this Ordinance,
shall be deemed guilty of a misdemeanor, and upon conviction thereof
may be punished by 8 fine not exceeding Three Hundred ($3OO.OO) DollarB
or by imprisonment in the ai1 provided by the C of Carlsbad for a
period not exceeding six (6) months, or by both such fine and impri-
sonment. Every person, firm or corporation vfolating or contributing
in any way to the violation of any provision of this Ordinance shall
be deemed guilty of a separate offense for each.day during which such
violation c ntinues, and may be punfshable therefor as herein pro-
vided. All ordinances OF parts of ordinances in conflict herewith
are hereby repealed.
Section 30. SEWEBABILITY. If any section, sub-section, sentence, clause
or phrase of this Ordinance is for reason held to he unconstitu-
tionaf, such decisions shall not affect the validity of the remaining
portions of this Ordinance, The City Council hereby declares that
it would have passed this Ordinance and each section, sub-section,
clause and phrase thereof, irrespectfve of the fact th3.t any one or
more sections, sub-seetions, sentences, clauses or phrases be declared
unconstitutional.
Section 31, This Qrdinance shall take effect and be in force on the 1st
day of October ,1954. \ 1
-2, The City Clerk of the City of Carlsbad is hereby dkrectea to
cause this ordinance to be published once in the Carlsbad Journal,
a newspaper published and of &enera1 circulation in the said City of
Carlsbad.
FZrst read at a regtalar meeting of the City Council of said City
held on the 20th day of' July, 1954, and finally adopted and ordered
published at said regular meeting of said Council held on the 10th
day of August, 1954, by the following vote:
NAYS : None 0
BSEZ\JT: None.
* City Clerk -8- Clty of Caylsbad, California.