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Ord 0406- IMPOSING A TOWN SALES AND USE TAX PROVIDING FOR THE PERFORMANCE BY THE STATE BOARD OF EQUALIZATION OF ALL FUNCTIONS INCIDENTORDINANCE NO. AN ORDINANCE OF THE TC) I N OF LOS GATOS, IMPOSING A T011N SALES AND SE TA.K; PROVIDING FOR TIr F° PE~..F OR'11.ANCE BY THE a STATE B01"RD OF Ems? AERATION OF FUNCTIONS INCIDENT TO ThE AD1,1INISTRAT.iON, C)PERATION AND COLITJ:,CTIOIti' OF THFi SALES AND USE TkK HEREBY IMPOSED; SUSPENDING THE PROVTSIJP GE ORDINANCES NOS. 347 and 348 DURING SUCH TIME AS THIS ORDINANCE IS OPERATIVE; AND PROVIDING PENALTIES FOR VIO- LATIONS THEREOF. THE TOv^rN COUNCIL, OF THE TOWN OF LOS GATCS DOES ORDAIN AS F'OLL01,J',S: Section 1. SHORT TITLE. This ordinance shall be known as the Uniform Local.. Sales and I.?se Ta,x Ordinance of the Town of Leis Gatos, Section 2. PURPOSE. The Town Council of the Town of Taos Gatos hereby declares that this ordinance is adopted to achieve the following, among other, purposes, and directs that the pro- visions hereof be interpreted in order to accomplish those purposes: (a) To adopt a sales and use tax ordinance which complies t.,rith the requirements and limitations contained in Part 1.5 o Division 2 of the Revenue and Taxation Code of the State of Calif- ornia; (b) To adopt a sales and use tax ordinance which incorporate; rrcvisions identical to those of the Sales and Use Tax Len~a of the State of California insofar as those provisions are not inconsistent with the reouirements and limitations contained in Part 1.5 of Division 2 of the said Revenue and Taxation Code; (c) To adopt a sales and use tax ordinance which im-noses a ninety one Der cent of one per cent (91%) tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practical to, and requires the least moss ibl.e deviation from, the existing statutory and administrative procedures followed -1- by the State Board of Equalization in administering and collect- Ing the California States Sales and. Use Taxes; (d ) To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible con- sistent with the provisions of 'Da;4rt 1.5 of Division 2 of the said Revenue and. Taxation Code,.m1nimize the cost of collecting city sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the rovisi.ons of th.i u ordina.n.ce; (e) To ad.ox)t a sales and use tax ordinance which can be administered in a manner that will exclude the receipts of par- ticular sales from the measure of the sales tax imposed by this Town which have been included in the measure of the sales tax imposed by any other city and county, county other than the county In which this Town is located, or city in this State, and avoid imposing a use tax on the storage, use or other consumption of tangible personal property in this Town when the gross receipts from the sale of, or the use of, that property has been subject to a sales or use tax by any other city and county, county other than the county in which this Town is located, or city in this State, pursuant to a sales and use 'tax ordinance enacted under the provisions of Ra.rt 1.5 of Division 2 of the said Revenue and. Taxation Code, Section 6. OPERATIVE DATE. CONTRACT WITH STATE. This ordinance shill become operative on October 1, 1956, and prior thereto this Town shall contract with the State Board of E'cual- i.zation to perform, all functions incident to the a administra.tion and operation of this sale: and use tax ordinance; provided, that if this Town shall not have contracted with the said State Board of EQualization, as above set forth, prior to October 1, 1956.9 - this ordinance shall not be operative until the first day of the 2-. first calendar quarter folio ,ing the execution of such a contract by the Tov?n and by the State Board of Equalization, rrovided further that this ordinance s~all not become operative -crior to the operative date of the Uniform Local. Sales and. b se Tax Ordinance of the County of Santa Clara. Section 4. SALES TAX. (a) (1) For the privilege of selling tangible personal property at retail a tax is hereby unposed upon all retailers In the Town at the rate of ninety one per cent of one per cent (91%) of the gross receipts of the retailer from the sale of a-',,'. tangible rersona-1 rroperty sold at retail in the Town of Los Ceatos on and after the operative date of this ordinance, (2) For the purposes of this ordinance, a.l,l retail sales shall be presumed to have been consummated at the -p acie of business of the retailer unless the tangible personal Droperty sold / is delivered by the retailer.or his agent to an out-of-state destination or to a common carrier for delivery to an out--of-state destination. Delivery charges shall be included in the gross recelpts by which the tax is measured, regardless of the place to which delivery Is made, when such, charges are included in the measure of he sales or use tax imposed by the State of ~a.Zif':; ~.3iag In the --vent a retailer has no oerma.nent place of business in the State of California, or n.s more than one place of business, the place or places at which retail sales are consummated shall be as determined under rules and regulations prescribed and adopted by the board of Equalization. (b) (:1) Except as hereinafter provided, and. except insofar as they are inconsistent with the provisions of Part 1®5 of Division 2 of the said Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of said code, as amended and in force and effect on October 1, 1956, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein. v (2) Wherever, and to the extent that, in Part 1 of Di YisJ'on 2 of the Lie. e and C .,'f7'id R.~even~~., Taxation Code she State of Califo-°nia. is named or referred, to as the taxing a,cgency,, the Town of Loam Ge Loss %'Shr._S.l_ be sga4'bLtia:A therefor. 1to...CL t.Y Tot""•~ wp. in this Subdivision shall„ be ^eemed to reruire the substitution of the name of the Town of Los Gatos for the word "State`" when that word is used as past of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equaliza- tion, or the name of the State Treasury, or of the Constitution of the State of Ca 1 ifcrnia.- nor shall the name of the Town be substituted for that o the State in any section when the result of that substitution would require action to be taken by or against the Town or any agency thereon"., rather than by or against the State 'hoard of EanUal i zat ion, in perfo-r ing the flanctions incident to the administration or operation of this ordinance- and neither shall the substitution be deemed to have been made in those sections, including, but not necessarily limited to., sections referring to the exterior boundaries of the Mate of California, .where the result of the substitution would be to provide an exemption from this tax with respect to certain gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the State under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code; nor to impose this tai: with respect to certain gross receipts which would not be subject to tax by the State under the said provisions of. that Code; and, in a.dditi.on., the name of the Town shall not be substituted for that of the State in SeQctions 67701, 6702 (except in the last sentence thereof 6711, 6715, 6r737, 6797 and 6,928 of the said Revenue and Taxation Cede as adopted. (3) If a sell.er~s permit has been issued to a retailer under Section 6068 of the said Revenue and Taxation Code, an - 4- additional sel.l.erts permit shall not be rewired bv- reason of this section. (4) There shall be exclueed from the gross receipts by which the tax is measured: (i.) The amount of any sales or use tai; imposed by the State of California upon a retailer or consumer. (ii) Receipts from the sale of tangible personal property upon which a sales or use tax has become due by reason of the same transaction to any other city and county, county other than the county in which this Town is located, or city In this State under a sales or use tax ordinance enacted by that city and county, county other than the county in which this Town Is located, or city in this State in accordance with Part 1.5 of Division 2 of the said Revenue and Taxation Code. (iii) Receipts from sales to operators of common carrier and waterborne vessels of property to be used or consumed in the operation of such common carriers or waterborne vessels principally outside of this own. Section 5. USE TAX. (a.) An excise tax is hereby imposed on the storage, use or other consumption. in the Town of Los Gatos of tangible personal property purchased from any retailer on or after the operative date of this ordinance, for storage, use or other consumption in the Town at the rate of ninety one per cent of one per cent (91%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. (b) (1) Except as hereinafter provided, and except insofar .as they are inconsistent with the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code, all of the.provisions of 5- Bart of Division 2 of said Code, as amended and in force and effect on October 12 1956, applicable to use taxes are hereby adopted and made a part of this section as though fully set forth herein (2) Wherever, and to the extent that. ,in Bart I of Division 2 of the.said Revenue and Taxation Code the State of California is named or referred to as the taxing agency, the Town of. Los Gatos shall be substituted therefor. Nothing in this subdivision shall be- deemed to reoui.re the substitution of the name of the Town of Los Gatos for the word °aftate" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the Mate Board of Faualization, or the name of the ;Mate `treasury, or of the Constitution of the State of California; nor shall, the name of the Town be substituted for that of the Mate in any section when the result of that substitution would require action to be taken. 1 by or against the Town or any agency thereof rather than by or against the State Board of Ba.ualization, in performing the functions 'incident to the administration or operation of this ordinance;] and neither shall the substitution tae deemed to have been made in those sections, including but not necessarily limited to, sections referring to the exterior boundaries of the Mate of California, where the result of the substitution would be to provide an ex- em-oti.on from this tax. with respect to certain storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such storage, use or other consumntion remains sub3ect to tax by the State under the pro- visions of Fart 1 of Division 2 of the said Revenue and Taxation Code; or to impose this tax with respect to certain, storage use or other consumption.of tangible personal property which would not be sub3ect to tax by the State under the said previsions of that Code; and in addition,.the name of the down shad not be substituted for that of the State in Sections 67011, 6702 (except in the last sentence thereof), 6711, 67159 67372 6797 and 6828 of the said Revenue and Taxation Code as adopted. (E) There shall be exempt from the tax due under this section: (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (1i) The storage, use or ether consumption of tangible personal property, the gross receipts from the sale of or the cost of which -has been subject to sales or use tax under a, sales or use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the said Revenue and Taxation Code by any other city and county, county other than the county in which this Town is located, or city in this State (iii) The storage or use of tangible personal property in the transportation or transmission of persons, property or communications, or in the genera:ti.on tranami.ssi.on or distribution of electricity or in the manufacture, trans- mission or distribution of gas in intrastate, interstate or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the State of California, (iv) The use or consumption of property purchased by operators of common carrier and waterborne vessels to be used or consumed in the operations of such common carriers or waterborne vessels principally outside the Town. Section 6. AMENDMENTS. All a ien.dlm ents of the said, Revenue and Taxation Coda: enacted subsequent to the effective date of this ordinance which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the said Revenue and Taxation Code shall automatically become a part of this .ordinance. Section 7. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall. i_snue -7- s y v s in any suit, action or proceeding in any court against the taste or this Town, or against any officer of the State or this Town, to prevrent or enioi.n the cc!lection under this ordinance, or Fart 1.,5 of DDI%ri.slon 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be colrl.ected. Section 8, EXISTING SALES AND USE TAX ORDINANCE SUSPENDED. At the time`.this ordinance goes into operati.on$ the provisions of Ordinances Nos. -Z -7 and 348 shall be suspended and shall, not again be of any force or effect until and unless for any reason the State `Board of Ea lualization ceases to perform the functions incident to the administration and operation of the sales and use tax hereby imposed; provided ho,,,everP that if for any reason it is determined that the Town of Los (Aatos is ~e,itbcut poWer to adopt this ordinance, or that the State Board of Equalization is without power to perform the functions Incident to the administration and-, meration of the taxes imposed by this. ordinance, the provisions of Ordinances Nos. 347 and 348.`shal:l not be deemed: to have been suspended., but shall be deemed to have been in full force and effect at the rate of one per cent (1%) continuously from and after October 1 1956. Upon 7 .91 the ceasing of the State :board of EQualizati.on to perform the functions incident to the adTi i:stration and operation of the taxes imposed by this ordinance, the provisions of Ordinances Nos. 34.7 and. 348 shall again be 'in full farce and effect at the rate of one per cent (1%). Nothing in this ordinance shall be construed as relieving any person of the obligation to pay to the Torn of Tzs Gates any sales or use tax accrued and owing by reason of the provisions of Ordinances Nos. 347 and 346 in force and effect prior to and including September 30, 1.e~56~ Section 9. PENALTIES. Any person violating any of the provisions of this ordinance shall he d.eemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500.00 or by i.mpri.sonment for a period. of not more than six (6) months in the County Jail., or by both such fine and 8- ~ 4 u r impri. sonme nt Sect- .on. 10, SEVERABILIIY 1f any section, subsection, sentence, clause, phrase or portion of this ordinance, including but not limited to any exemption, is for any reason held to be invalid or unconstitutional by the. decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance,, 'The Council of the Town of :dos Gatos hereby declares that it i9oul.d 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, sentences, clauses, phrases or por- tions be declared invalid or unconstitutional, Section lle EFFECTIVE DATE. This ordinance is an emergency ordinance affecting, and for the Immediate preservation of, the public peace, health, safety*, comfort, convenience and general welfare and the same shall therefore become effective immediately upon the final passage and adoption thereof. The facts constituting its urgency are as follows: "The Legislature of the State of California has enacted the Bradley-~3.urns Uniform Local. Sales and Use Tax Law In order to provide for uniform administration, reporting,. sales and use tax rates and collection of local sales and use taxes, The County of Santa Clara has adopted a uniform County sales and use tax ordinance,, The To-(~,n of Los Gatos must act immediately to adopt this ordinance in order to avoid double taxation of all retail transactions within this Tomn, to Dre7ent lack of uniformity, Band duplication of reporting and administration of State and local sales and use taxes and to enable the Town of Los Gatos to contract with the Mate Board of Equalization for performance by the Board. of all of the functions incident to the administration or operation of city sales and use taxes before October 1, 1956." 9- >dk 9 • Section. 12. This ordinance shall be published once in the Laos gatos Times-Observer, a neT,,Yspaper published in the Town of LOS Gatos. The above and foregoing Ordinance was duly and regularly introduced at a regular meeting of the Town CouncYil of the Town of Los Ca.tasp held on the 17th clay of September, 1956, and there.- after at 9A regular meeting held on the 22nd day* of September, 195 $ duly and regularly adopted by the following vote; NTdEoC?L'NCT2ENm~ ABS'-q7NT: COUNIC4 1114 EM A PPRO17ED .a o t_ os ..tos .&T TE IST 4L_. ,ol-In let of file okvn Of ®S Gatos 1.0-