Ordinance 1131 - IMPOSING A SALES AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION, PROVIDING PENALTIES FOR VIOLATIONS AND REPEALING PRIOR ORDINANCES CONCERNING SALES AND USE TAXESORDINANCE NO. 11, 3J
AN ORDINANCE IMPOSING A SALES AND USE TAX
TO BE ADMINISTERED BY THE STATE BOARD OF
EQUALIZATION, PROVIDING PENALTIES FOR
VIOLATIONS AND REPEALING PRIOR ORDINANCES
CONCERNING SALES AND USE TAXES.
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS:
SECTION 1.
Article II of Chapter 28 (sections 28 -7 through 28 -13) of the
Code of the Town of Los Gatos is repealed.. Ordinances No. 347 and.
348 of the Town of Los Gatos are repealed.
SECTION 2.
Article TI is added to Chapter 28 of the Code of the Town of Los
Gatos, to read,:
SEC. 28 -7.1. SHORT TITLE. This ordinance shall be known as the
Uniform Local Sales and. Use Tax Ordinance.
SEC. 28 -7.2 RATE The rate of sales tax and use tax imposed: by
this ordinance shall be ninety --one hund.reths of one percent (.0091).
SEC. 28 -7.3. OPERATIVE DATE This ordinance shall be operative
on January 1, 1974.
SEC. 28 -7.4 PURPOSE The Town Council hereby declares that this
ordinance is adopted to achieve the following, among other,
purposes, and directs that the provisions hereof be interpreted
in order to accomplish those purposes:
(a) To adopt a sales and, use tax ordinance which complies
with the requirements and. limitations contained in
Part 1.5 of Division 2 of the Revenue and. Taxation C ode ;
(b) To adopt a sales and, use tax ordinance which incorporates
provisions identical to those of the Sales and Use Tax
Law of the State of California insofar as those
(c) To adopt a sales and use tax ordinance which imposes
a 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
practicable to, and. requires the least possible deviation
from the existing statutory and. administrative procedures
followed by the State Board, of Equalization in administering
and collecting the California State 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
consistent with the provisions of Part 1.5 of Division 2
of the Revenue and Taxation Code, minimize 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 provisions of this ordinance.
SEC. 29-7.S. CONTRACT WITH STATE. Prior to the cp e rative date
this city shall contract with the State Board of Equalization to
perform all functions incident to the administration and operation
of this sales and use tax ordinance; provided, that if this city
shall not have contracted with the State Board of Equalization
prior to the operative date, it shall nevertheless so contract
and in such a case the operative date shall be the first day of
the first calendar quarter following the execution of such a
contract rather than the first day of the first calendar quarter
following the adoption of this ordinance.
SEC. 28 -7.6. SALES TAX. For the privilege of selling tangible
personal property at retail a tax is hereby imposed. upon all
retailers in the city at the rate stated in Section 28 -7.2 of
the 4? r C] , Vp np - i n t c
SEC. 28 -7.7. PLACE OF SALE For the purposes of this ordinance,
all retail sales are consummated. at the place of business of the
retailer unless the tangible personal property 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.
The gross receipts from such sales shall include delivery charges,
when such charges are subject to the State sales and use tax,
regardless of the place to which delivery is made. In the event
a retailer has no permanent place of business in the State or
has more than one place of business, the place or places at which
the retail sales are consummated shall be determined. under rules
and regulations to be prescribed and. adopted by the State Board
of Equalization.
SEC. 28-7.8 USE TAX. An excise tax is, I lrreby imposed. on the
storage, use or other consumption in this city of tangible personal
property purchased, from any retailer on and. after the operative
date for storage, use or other consumption in this city at the rate
stated in Section 28 -7.2 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 `1s made.
SEC. 28 -7.9. ADOPTION OF PROVISIONS OF STATE LAW Except as
otherwise provided in this ordinance and except insofar as they
are inconsistent with the provisions of Part 1.5 of Division 2 of
the Revenue and Taxation Code, all of the provisions of Part 1 of
Division 2 of the Revenue and Taxation Code are hereby adopted, and
made a part of this ordinance as though fully set forth herein.
SEC. 28- 7.10 LIMITATIONS ON ADOPTION OF STATE LAW In adopting
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The substitution, however, shall not be made when the word. "State"
is used. as part of the title of the State Controller, the State
Treasurer, The State Board of Control, the State Board of
Equalization, the State Treasury, or the Constitution of the
State of California; the substitution shall not be made when the
result of that substitution would require action to be taken by
or against the City, or any agency thereof rather than by or
against the State Board of Equalization, in performing the functions
incident to the administration or operation of this ordinance;
the substitution shall not be made in those sections, including,
but not necessarily limited to, sections referring to the exterior
boundaries of the State of California, where the result of the
substitution would be to provide an exemption from this tax with
respect to certain sales, storage, use or other consumption of
tangible personal property which would. not otherwise be exempt
from this tax while such sales, storage, u.se or other consumption
remain subject to tax by the State under the provisions of Part l
of Division 2 of the Revenue and. Taxation Code, or to impose this
tax with respect to certain sales, storage,, use or other
consumption of tangible personal property which would. not be
subject to tax by the State under the said provisions of that
Code; the substitution shall not be made in Sections 6701, 6702
(except in the last sentence thereof) , 6711, 6715, 6737, 6797 or
6828 of the Revenue and Taxation Code; and the substitution shall
not be made for the word "State" in the phrase "retailer engaged.
in business in this State" in Section 6203 or in the definition
of that phrase in Section 6203.
SEC. 28 -7 -11 PERMIT NOT REQUIRED. If a seller's permit has been
issued to a retailer under Section 6067 of the Revenue and Taxation
SEC. 28-7-12 EXCLUSIONS AND EXEMPTIONS There shall be excluded
from the measure of tax:
(a) The amount of any sales or use tax imposed. by the State
of California upon a retailer or consumer.
(b) The storage, use or other consumption of tangible personal
property, the gross receipts from the sale of which has
been subject to sales tax under a sales and use tax
ordinance 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 this State.
(c) The gross receipts from sales to, and the storage, use or
other consumption of property purchased by, operators of
common carriers and waterborne vessels to be used or
consumed. in the operation of such common carriers or
waterborne vessels principally outside this city.
(d) The storage or use of tangible personal property in the
transportation or transmission of persons, property or
communications, or in the generation, transmission or
distribution of electricity or in the manufacture,
transmission 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.
SEC. 28 -7 -13. EXCLUSIONS AND EXEMPTIONS
(a) The amount subject to tax shall not include any sales or
use tax imposed by the State of California upon a
retailer or consumer.
(b) The storage, use, or other consumption of tangible personal
property, the gross receipts from the sale of which have
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 this State shall be exempt from the
tax due under this ordinance.
(c) There are exempted. from the computation of the amount of
the sales tax the gross receipts: -from the sale of tangible
personal property to operators of waterborne vessels to
be used or consumed. principally outside the city in which
the sale is made and directly and exclusively in the carriage
of persons or property in such vessels for commercial
purposes.
(d) The storage, use, or other consumption of tangible personal
property purchased by operators of waterborne vessels and
used or consumed by such operators directly and exclusively
in the carriage of persons or property of such vessels for
commercial purposes is exempted from the use tax.
(e) There are exempted from the computation of the amount of
the sales tax the gross receipts from the sale of tangible
personal property to operators of aircraft to be used or
consumed principally outside the city in which the sale is
made and directly and. exclusively in the use of such
aircraft as common carriers of persons or property under
the authority of the laws of this state , the United States,
or any foreign government.
(f) In addition to the exemptions provided in Sections 6366
and 6366.1 of the Revenue and Taxation Code the storage,,
use, or other consumption of tangible personal property
purchased. by operators of aircraft and used or consumed by
such operators directly and exclusively in the use of such
convenience and necessity issued pursuant to the laws
of this state, the United States, or any foreign government
is exempted from the use tax.
SEC. 28 -7_14. APPLICATION OF PROVISIONS RELATING TO EXCLUSIONS
AND EXEMPTIONS
(a) Section 28 -7.13 of this ordinance shall become operative on
January lst of the year following the year in which the
State Board of Equalization adopts an assessment ratio for
state - assessed property which is identical to the ratio
which is required for local assessments by Section 401 of
the Revenue and Taxation Code, at which time Section 28 -7.12
of this ordinance shall become inoperative.
(b) In the event that Section 28 -7.13 of this ordinance becomes
operative and the State Board of Equalization subsequently
adopts an assessment ratio for the state - assessed property
which is higher than the ratio which is required for local
assessments by Section 401 of the Revenue and Taxation Code,
Section 28 -7.12 of this ordinance shall become operative on the
first day of the month next following the month in which
such higher ratio is adopted; at which time Section 28 -7.13
of this ordinance shall be inoperative until the first day of
the month following the month in which the Board again adopts
an assessment ratio for state - assessed property which is
identical to the ratio required for local assessments by
Section 401 of the Revenue and Taxation Code, at which
time Section 28 -7.13 shall again become operative and
Section 28 -7.12 shall become inoperative.
SEC. 28 -7.15 AMENDMENTS. All subsequent amendments of the Revenue
and. Taxation Code which relate to the sales and use tax and which
SEC. 28 -7m16 ENJOINING COLLECTION FORBIDDEN No injunction or
writ of mandate or other legal or equitable process shall issue in
any suit, action or proceeding in any court against the State or
this City, or against any officer of the State or this City, to
prevent or enjoin the collection under this ordinance , or Part 1. 5
of Division 2 of the Revenue and Taxation Code, of any tax or any
amount of tax required to be collected.
SEC. 28- 78.17 PENALTIES. Any person violating any of the provisions
of this ordinance shall be deemed guilty of a misdemeanor, and.
upon conviction thereof shall be punishable by a. fine of not more
than $500.00 or by imprisonment for a period of not more than six
months, or by both such fine and imprisonment.
SEC. 28- 7-.18. SEVERABILITY If any provision of this ordinance or
the application thereof to any person or circumstance is held invalid.,
the remainder of the ordinance and the application of such provision
to other persons or circumstances shall not be affected thereby.
SECTION 3.
The ordinances repealed by Section I of this ordinance shall remain
in effect for the purposes of the administration of said ordinances
and the imposition of and the collection of tax with respect to the
sales of, and. the storage, use, or other consumption of tangible personal
property prior to January 1, 1974, the making of refunds, effecting
credits, the disposition of monies collected, and. for the commencement
or continuance of any action or proceeding under said. ordinance.
THIS ORDINANCE SHALL TAKE EFFECT and shall be in force thirty (30)
days after the date of its adoption. The Town Clerk of the Town of
Los Gatos shall cause this Ordinance to be published once within fifteen
(15) days after its adoption, in the Los Gatos Times - Saratoga Observer,
The above and foregoing Ordinance was duly and. regularly
introduced at a regular meeting of the Town Council
of the Town of Los Gatos held on the 17th day of September
1973.
PASSED AND ADOPTED as an Ordinance of the Town of Los Gatos,
California, at
a regular meeting
of the Town
Council, held. on the
1st day of
October
1973, by
the following vote:
AYES: COUNCILMEN Ruth Cannon
Charles E. DeFreitas
Eaon Jensen
John D. Lochner
Mark B. DiDuca
NOES: COUNCILMEN None
ABSENT: COUNCILMEN None
SIGNED: MAYOR OF THE TOWN OF LOS GATOS
ATTEST:
CLERK OF HE 0 0 ,
rl
LOS 9ATOS