HomeMy WebLinkAbout1983-12-13; City Council; 7580; Revising Sales Tax Exemptions & ExceptionsCITI 0 CARLSBAD — AGENDI—IILL
ABA AMENDMENT TO CHAPTER 3.08 REVISING
MTG. 12/..3/83 THE SALES TAX EXEMPTIONS AND EXCEPTIONS
DEPT. CA
RECOMMENDED ACTION:
Adopt Ordinance No. is 4 7
/OD Q i
DEPT. HD—'
CITY ATTY
CITY MGR:--!O!L
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ITEM EXPLANATION
The State Board of Equalization has informed the City that it is
necessary for us to revise the Municipal Code provisions providing
for exceptions and exemptions to the sales tax. Their letter
dated November 18, 1983 is attached. Also attached is the
necessary ordinance which must be adopted prior to January 1, 1984.
The State Board of Equalization has requested that we forward
copies of our adopted ordinance to them prior to December 15, 1983.
EXHIBITS
Ordinance No. 1.26 7
Letter dated November 18, 1983 from State Board of Equalization.
( a )
0
STATE OF CALIFORNIA
CONWAY N. COLAS
STATE BOARD OF EQUALIZATION Fin,DmkLEo,A."I-
ERNEST J. DRONENBURO. 1R.
1020 N STREET, SACRAMENTO, CALIFORNIA S. &,d Dtnkt. Son Ow"
(P.O. IOX 1799, SACRAMENTO. CALIFORNIA 9") WILL" M. UNNETT
Telephone (916) 445-3007 Tlwd Dnkt. Xwd;-Id
`IC„ARD NEVINS
FO.WA Dq,kt. Fowdo"
KENNETH CLAY
November 18, 1983 C.*0190.sw.. Mo
DOUOEAS 0. BELL
E.KVh.+S,v. 07
CITY OF CARLSBAD 3708
DIRECTOR OF FINA14CE 1.00,
1200 M1 AVENUE 10-56
CARLSBAD,CA 92008
To City Addressed:
Chapter 5 of the Statutes of 1979 provided for the repeal
of Sections 7202 and 7203 of the Revenue and Taxation Code and
the addition of new Sections 7202 and 7203 operative January 1,
1984. The effect of this is to delete from the required
provisions of the county and city Bradley -Burns ordinances the
exemptions for operators of waterborne vessels.
AB 900 was introduced in the current legislative session
to postpone the effective date of this change in the prior
provisions of the Bradley -Burns ordinances to January 1, 1994.
This bill was passed by the Assembly and Senate but was vetoed
by the Governor. The Governor's veto message stated, in
effect, that he would not object to a two-year extension of
these exemptions if a bill to that effect were introduced into
the Legislature in January of 1984.
Because the 1979 changes to the Bradley -Burns Uniform
Local Sales and Use Tax Law remain operative it is imperative
that all city and county ordinances be amended prior to January
1, 1984. There is a possibility that the waterborne vessel
exemptions will be restored early in 1984. Therefore, there
must be a contingent amendment to those ordinances to provide
for the watercraft exemption to be reinstated if the law is
again changed.
Your city enacted a short form ordinance on Form BT-527A
Rev. 1 (8-73). Enclosed are copies of proposed ordinances to
amend the sections of your ordinance relating to exemptions and
exclusions that may be used.
Many cities have codified their Bradley -Burns sales and
use tax ordinances. If your city has done so, the section
numbers in the ordinance forms will have to be changed to
correspond to the sections in the city code.
M
-a -
Please have the amendments made to your Bradley -Burns
Ordinance and forward four certified copies on or before
December 15, 1983, to:
State Board of Equalization
P. O. Box 1799
Sacramento, CA 95808
Attn: Keith Christensen
Local Tax Unit
Sincerely,
Douglas D. Bell
Executive Secretary
ill ORDINANCE NO. 1267
2 AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA AMENDING
3 TITLE 3, CHAPTER 3.08 OF THE CARLSBAD
MUNICIPAL CODE BY THE AIIEND14ENT OF SECTIONS
4 3.08.120, 3.08.130 AND 3.08.140 REVISING
THE EXCLUSIONS AND EXEIIPTIONS FOR SALES
5 AND USE TAX TO BE ADMINISTERED BY THE
STATE BOARD OF EQUALIZATION.
6
7 The City Council of the City of Carlsbad, California does
8 ordain as follows:
9 SECTION 1: Title 3, Chapter 3.08 of the Carlsbad municipal
10 Code is amended by the amendment of Sections 3.08.120, 3.08.130
11 and 3.08.140 to read as follows:
12 "3.08.120 Exclusions and exemptions.
(a) The amount subject to tax shall not include any sales
13 or use tax imposed by the State of California upon a retailer
or consumer.
14
(b) The storage, use, or other consumption of tangible
15 personal property, the gross receipts from the sale of which have
been subject to tax under a sales and use tax ordinance enacted
16 in accordance with Part 1.5 of Division 2 of the Revenue and
Taxation Code by any city and county, county, or city, in this
17,state shall be exempt from the tax due under this ordinance.
18 (c) There are exempted from the computation of the amount
of the sales tax the gross receipts from the sale of tangible
19 personal property to operators of aircraft to be used or consumed
principally outside the city in which the sale is made and
20 directly and exclusively in the use of such aircraft as common
carriers of persons or property under the authority of the
21 laws of this state, the United States, or any foreign government.
22 (d) In addition to the exer-tions provided in Sections 6366
and 6366.1 of the Revenue and Taxation Code the storage, use,
23 or other consumption of tangible personal property purchased by
operators of aircraft and used or consumed by such operators
24 directly and exclusively in the use of such aircraft as common
carriers of persons or property for hire or compensation under
25 a certificate of public convenience and necessity issued pursuant
to the laws of this state, the United States, or any foreign
26 government is exempted from the use tax.
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2
1 "3.08.130 Exclusions and exemptions.
a The amount subject to tax sh-a not include any sales
2 or use tax imposed by the State of California upon a retailer
or consumer.
3
(b) Tpe Rtorage, use, or other consumption of tangible
4 personal property, the gross receipts from the sale of which
have been subject to tax under a sales and use tax ordinance
5 enacted in accordance with Part 1.5 of Division 2 of the Revenue
and Taxation Code by any city and county, county, or city in
6 this state shall be exempt from the tax due under this ordinance.
7 (c) There are exempted from the computation of the amount
of the sales tax the gross receipts from the sale of tangible
8 personal property to operators of waterborne vessels to be
used or consumed principally outside the city in which the
9
sale is made and directly and exclusively in the carriage of
10 persons or property in such vessels for commercial purposes.
(d) The storage, use, or other consumption of tangible
11
personal property purchased by operator: of waterborne vessels
12 and used or consumed by such operators directly and exclusively
in the carriage of persons or property of such vessels for
13 commercial purposes is exempted from the use tax.
�5 (e) There are exempted from the computation of the amount
g a i 14 of the sales tax the gross receipts from the sale of tangible
o ;= personal property to operators of aircraft to be used or consumed
a <g 15 principally outside the city in which the sale is made and
directly and exclusively in the use of such aircraft as common
We 16 carriers or persons or property under the authority of the laws
> 17 of this state, the United States, or any foreign government.
(f) In addition to the exemptions provided in Sections 6366
18 and 6366.1 of the Revenue and Taxation Code the storage, use,
19 or other consumption of tangible personal property purchased
by operators of aircraft and used or consumed by such operators
20 directly and exclusively in the use of such aircraft as common
carriers of persons or property for hire or compensation under
a certificate of public; convenience and necessity issued
21
pursuant to the laws of- this state, the United States, or any
22 Foreign government is exempted from the use tax.
23 "3.08.140 Application of provisions relating to exclusions
and exemptions.
24 a Section 3.08.120 shall be operative January 1, 1984.
(b) Section 3.08.130 shall be operative on the operative
25
date of any ac: of the Legislature of the State of California
which amends Section 7202 of the Revenue and Taxation Code or
26
which repeals and reenacts Section 7202 of the Revenue and
27 Taxation Code to provide an exemption from city sales and use
2.
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1 taxes for operators of waterborne vessels in the same, or
substantially the same, language as that existing in subdivisions
2 (i)(7) and (i)(8) of Section 7202 as those subdivisions read
on October 1, 1983.
3 SECTION 2: This ordinance relates to taxes for the usual
4
and current expenses of the City and shall take effect immediately.
5
INTRODUCED AND FIRST READ at a regular meeting of the
6 y
Carlsbad City Council held on the 7th day of Decenber , 1983
7
and thereafter,
8 adjourned
PASSED AND ADOPTED at a/regular meeting of said City Council
9
held on the _13th day of Decenber , 19 83 by the following
10 _
11 vote, to wit:
AYES: Council Members Casler, Lewis, Kulchin, Chick and Prescott
12
NOES: None
13
ABSENT: None
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16 MARY H. CASLER, Mayor
17 ATTEST:
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20 ALETHA L. RAUTENKRANZ, city0iclerr,
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