Ord 0347-IMPOSING A LICENSE TAX FOR THE PRIVILEGE OF SELLING TANGIBLE PERSONAL PROPERTY AT RETAILORDINANCE NO. 347
SALES TAX ORDINANCE
AN ORDINANCE OF THE TOWN OF LOS GATOS I1.KPOSI!,G A LICENSE TAX FOR
THE PRIVILEGE OF SELLING TANGIBLE PERSONAL PROP= AT RETAIL, PROVIDING
FOR. PM4ITS TO RETAILERS, PROVIDING FOR THE COLLECTING AND PAYING OF
SUCH TAX, AND PRESCRIBING PENALTIES FOR VIOLATIONS OF THE PROVISIONS
HEREOF.
THE TONTN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS:
Section 1. IMPOSITION AND FATE OF TAX. For the privilege of
selling tangible personal property at retail a tax is hereby imposed upon
all retailers at the rate of one-half of one per cent (12 of 1%) of
the gross receipts of any retailer from the sale of all tangible
personal property sold at retail in the Town of Los Gatos on or after
October 1, 1952 The license tax imposed by the provisions
of this ordinance is in addition to any and all other taxes imposed by
any other ordinance of the Town of Los Gatos.
Section 2. TAX LEVIED IN SAME ~iANN~. 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 conditions as sales
taxes are levied pursuant to Part 1 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 September 2, 1952
Section 3. ADOPTION OF STATE SALES TAX LAW BY RE~FERENC E.
EXCEPTIONS. All of the
as amended and in force
the provisions thereof
6051, 6052, 6053, 60663
6737, 67382 6739, 7052,
to sales of property at
provisions of the "Sales and Use Tax Law,"
and effect on September 2x 1952, except
pertaining solely to the "Use Tax" and Sections
6067, 60684 6069, 6070, 6071, 64512 67363
70562 7101, 7102, 71512 715211 7153, applicable
retail, are hereby adopted and made a part of
-1-
this ordinance as though fully set forth herein, and all provisions
of any other ordinance in conflict therewith are inapplicable to this
ordinance and the tax hereby imposed.; provided, however,'the term
:=gross receipts," as used herein, does not include the amount of any
tax imposed by the State of California upon or with respect to retail
sales whether imposed upon the retailer or upon the consumer.
All of the provisions of the "Sales and Use 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
performed by the Town Council of the Town of Los Gatos. All other
provisions of the "Bales and Use Tax Laws hereby adopted, providing for
the performance of official action on the part of the State Board of
Equalization, shall be performed by the Town Tax Collector
The Town of Los Gatos shall be deemed substituted for the State
of California whenever the State is referred to in said "Sales and
Use Tax Law."
The Town Attorney of Los Gatos shall be deemed substituted for
the Attorney General whenever the Attorney General is referred to in
said "Sales and Use Tax Law."
The Town Auditor shall be deemed substituted for
the State Controller whenever the State Controller or State Board of
Control are referred to in said "Sales and Use Tax Law."
The County of Santa Clara shall be deemed substituted for the
County of Sacramento whenever the County of Sacramento is referred to
in said "Sales and Use Tax Law."
Section 4. EXEMPTIONS. (a) In addition to those exemptions
contained in Part I of Division 2 of the Revenue and Taxation Code
of the.State of California, included in. this ordinance by reference,
there shall be excluded from the computation of the tax, gross
receipts from:
(i) Sales made to or by the State of California or any
agency department, political subdivision, district or municipal
corporation thereof;
-2-
• ® f 4
7 ~
(ii) Sales of property to be consumed in, or incorporated
into the erection, construction, repair 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 of California or any agency, department, political
subdivision, district or public or municipal corporation of the
State;
(iii) Sales made pursuant to contracts actually executed
in good faith prior to the effective date of this ordinance;
(iv) Sales of meals, food and drinks sold, or served on
common carriers operating into, through or out of the Town from
or to points outside this Town.
(b) No tax shall be due hereunder if a sales tax, purchase tax,
use tax, or purchase and use tax imposed by any other city of the
State of California has been paid on the same transaction.
(c) The sales tax does not apply to sales of property shipped
to a point outside of tho-Town of Los Gatos, pursuant to the contract
of sale, by delivery by the retailer to such point by means of (1)
facilities operated by.the retailer, (2) delivery by the retailer
to a carrier for shipment to a consignee at such point, or (3)
delivery by the retailer to a customs .broker or forwarding agent for
shi-oment outside this Town.
Section 5, ADOPTION OF RULES AND REGULATIONS BY REFERENCE.
INTERPRETATIONS. The rules and regulations of the State Board of
Equalization as amended and in force and effect September 2+ 1952,
pertaining to the interpretation, administration and enforcement of the
"Sales and Use Tax Law," insofar as applicable, except Rule No. 55
(Section 2015, Title IS, California Administrative Code, Sales & Use
Tax) shall apply in the interpretation of this ordinance fintil speci-
fically abandoned by the rules and regulations adopted by the Town
Council of Los Gatos pursuant to this ordinance. The word "Town"
shall be deemed substituted for the word "State" whenever the word
"State" appears in said rules and regulations.
-3-
e • ~1
In lieu of Rule No. 55, specifically excepted above, the follow-
ing interpretations shall apply in the administration of this ordinance:
(A) The sales tag does not apply to sales of property
which is:
(i) Imported into this `fot,,n from a foreign country
and sold by the importer in the original package in which imported.
(ii) Sold to foreign purchasers for shipment abroad
and delivered to a ship, airplane, or other conveyance furnished
by the purchaser for the purpose of carrying the property abroad
_._-,and actually carried to a foreign destination, title and control
of the property passing to the foreign purchaser upon delivery,
and no portion of the property being used or consumed in the
United States. Copies of U. S. Customs Shippers' export declarations
filed with the Collector of Customs must be obtained and retained
by retailers to support deductions taken under this paragraph.
The tax applies to the transaction if the property is diverted
in transit or for any reason not actually delivered outside
the Town pursuant to the contract of sale or not shipped abroad
by a foreign purchaser, regardless of documentary evidence
held by the retailer of delivery of the property to a carrier
for shipment outside the Town, or to a foreign purchaser for
shipment abroad.
(iii) Mailed by the seller, pursuant to the contract
of sale, to persons in the armed forces at points outside conti-
nental United States, notwithstanding the property is addressed
in care of the Postmaster and forwarded by him to the addressee.
When mail is addressed to Army Post Offices (A/P/0/1s) in care
of the Postmaster or to naval forces addressed in care of the
Postmaster, it will be presumed that it is forTo.-arded outside
California. The seller must keep records showing the names and
-4-
7 }
addresses as they appear on the mailed matter and should keep
evidence that the mailing was done by him.
(iv) Shipped to a point outside this Town pursuant
to the contract of sale when the property is marked for export and
delivered by the retailer to the "contracting officer," "officer
in charge, 11 "port quartermaster," or other officer of the United
States for transportation and delivery to the purchaser at such
a point.
(B) The sales tax does not'-apply to sales of airplanes, and
parts and equipment for airplanes, transported to a point outside this
Town pursuant to the contract of sale when such property is delivered
to the United States Army Corps or any other agency or instrumentality
of the United States for transportation and delivery to the purchaser
or someone designated by him at that point.
(C) The sales tax does not apply (either in interstate'or
.intrastate commerce) to sales of property shipped from a point outside
the Town of Los Gatos to a purchaser inside the Town of Los Gatos, or
to the retailer's agent in the Town of Lo's Gatos, for delivery to the
purchaser, if none of the elements of sale, other than such delivery,
takes place in the Town of Los Gatos.
The sales tax does apply (either in interstate or intrastate
commerce) to sales of property shipped from a point outside'-of the Town
of Los Gatos to a purchaser inside the Town of Los Gatos, or to the retail-
er's agent in the Town of Los Gatos, for delivery to the purchaser where
any element of the sale, in addition to such delivery, takes place in the
Town of Los Gatos.
"Element of Sale" is hereby defined to include solicitation
of an order, the acceptance of an order, the giving of an order,
whether such order is given in person, by telephone or by mail, or
the payment of the purchase price.
Section 6. VERBATIM EXCERPTS SHALL NOT EXCLUDE BALANCE. The
inclusion of any clause, portion or part of the "State Sales and Use
Tax Law," Part 1, Division 2 of the Revenue and Taxation Code of the
State of California, or the rules and regulations of the State Board
of Equalization, verbatim 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 regulations that are made a part hereof
by reference only.
- 5-
Section 7. APPLICATION FOR PERMIT.
J
Every person desiring to
engage in or conduct business as a seller within the Town of Los Gatos
shah file with the Town Tax Collector an application for a
permit for each place of business from which taxable sales will be
made. Every application for a permit shall be made upon a fora prescribed
by the Town Tax Oollector and shall set forth the name under which
the applicant transacts or intends to transact business; the location
of his place or places of business, and such other information as the
Town Tax Collector may require. The application shall be
sighed by the owner, if a natural person; in the case of a corporation,
by an executive officer or some person specifically authorized by the
corporation to sign the application, to which shall be attached the
written evidence of his authority.
Section 7 (a). FORMULA COMPUTATION OF SALES AND USE TAX BY
RETAILERS LOCATED OUTSIDE TOWN. The Town Tax Collector
may approve the payment of the sales tax by retailers located outside
the Town in accordance with a formula if he finds that the formula
will produce the same or approximately the same tax as if detailed
accounting procedures had been followed. A retailer desiring to use
such a formula shah furnish such information as may be required by
the Town Tax Collector to enable him to make the required finding.
The formula may be used by the retailer for such period of time, not
to exceed one year, as may be authorized by the Town Tax Collector
in writing, and is subject to renewal, upon application, for periods
not to exceed one year.
Payment in full of sales taxes in accordance with an approved
formula shall constitute full satisfaction of the retailer's sales
tax liability.
Section 8. ISSUANCE AND DISPLAY OF PEKIIT. After compliance
with Section 7 of this ordinance by the applicant, the Town Tax
Collector shall grant and issue to each applicant a separate
-6-
•
permit for each place of business from
A permit is not assignable and is valid
it is issued and for the transaction of
therein: provided, however, a change of
the permit by the Town Tax Collector
all times be conspicuously displayed at
which taxable sales will be made.
only for the person in whose name
business at the place designated
location may be endorsed upon
The permit shall at
the place for which issued.
Section 9. PERMIT FEES. At the tine of making an application
for a permit, and at the time a change of location is endorsed upon
a permit, the applicant for a permit or for an endorsement of a change
of :location on a permit shall pay to the Town Tax Collector a
fee of 1.00
Section 10. REVOCATION OF PERMIT. Khenever any person fails to
comply with any of the provisions of this ordinance or any rule or
regulation adopted pursuant hereto, the Tawn Council of the Town of
Los Gatos, upon hearing, after giving the person ten days' notice in
writing specifying the time and place of hearing and requiring him to
show cause why his permit or permits should not be revoked, may revoke
or suspend any one or more of the permits held by the person. The
notice may be served 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 Town Tax Collector shall not issue
a new permit after the revocation of a permit unless the Town Council
of the Town of Los Gatos is satisfied that the former holder of a
permit will comply with the provisions of this ordinance and the rules
and regulations adopted pursuant hereto and directs the Town Tax
Collector to issue such permit.
Section 11. RENEWAL OF PERMIT. A seller whose permit has been
previously suspended or revoked shall pay the Town Tax Collector
a fee of 4 1.00 for the renewal or issuance of a permit.
Section 12. UNIAWUL ACTS. A person who engages in business as a
seller in the Town of Los Gatos without a permit or permits, or after
-7-
a permit has been suspended or revoked and before the renewal or
issuance of a permit, and each dfficer of any corporation which so engages
in business, is guilty of a misdemeanor.
Section 13. DUE DAVE. The taxes imposed by this ordinance are
due and payable to the Town Tax Collector on or before the last
day of the month next succeeding each quarterly period, the first
quarterly
payment to be
due and payable
under this
ordinance on the
31st day
of January
1953
The Town
Tax Collector
may require returns and payment of the amount of taxes for quarterly
periods other than calendar quarters depending upon the 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
quarterly periods.
Section 14. REI1,BURSYM,ENT. The tax hereby imposed shall be
collected by, the retailer from the consumer insofar as it can be done.
Section 15. UNLAWFUL ADVERTISING. It is unlawful for any
retailer to advertise or hold out or state to the public or to any
customer, directly or indirectly, that the tax or any part thereof will
be assumed or absorbed by the retailer or that it will not be added
to the selling price of the property sold or that, if added, it or
any part thereof will be refunded. Any person violating any provision
of this section is guilty of a misdemeanor.
Section 16. SUIT FOR TAX. All taxes hereby levied shall be
payable to the Town Tax Collector and any civil suit for the
collection thereof may be filed in any court of competent jurisdiction
in the State of California, and the Town Attorney of said Town shall
prosecute the action.
Section 17. RESALE CERTIFICATE. The Town Tax Collector
may at his option accept a State of California Resale Certificate as
evidence that any sale is not a sale at retail, or he may in his
discretion require an affidavit from the seller setting forth such
-8-
information respecting such sale as he deems necessary to determine
the nature of such sale.
Section 18, EXTENSION OF TIME. TJAIVER 07-R COMP11:10MISE. The Town
Tax Collector
i
shall have power, for good cause shown to extend
for a period of not to exceed 30 days the time for making any return
or paying any amount required to be paid under this ordinance, when
requested so to do in writing, before the same becomes delinquent.
The Town Tax Collector
may, with the written approval of the
Town Attorney, waive or compromise any penalty or interest that would
otherwise accrue under the provisions of this ordinance. The Town
Tax Collector shall make and transmit to the down council
quarterly, a detailed report of any sums so waived or compromised
with the reasons therefor.
Section 19. DISPOSITION OF PROCEEDS. All monies collected under
and pursuant to the provisions of this ordinance shall be dep osited
and paid into the General Fund of the Town of Los Gatos.
Section 20. DIVULGING OF INFORW..ION FORBIDDEN. It is unlawful
for any officer or employee of the Town of Los Gatos having an adminis-
trative duty under this ordinance to make known in any manner whatsoever
the business affairs, operations, or information obtained by an irn esti-
gation of records and equipment of any retailer or any other person
visited or examined. in the discharge of official duty, or the amount
or source of income, profits, losses, expenditures, or any particular
thereof, set forth or disclosed in any return, or to 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 Town
Council may, be 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 a reciprocal arrangement exists. Successors,
receivers, trustees, executors, administrators, assignees, and
- 9-
guarantors, if directly interested, may be given information as to the
items included in the measure and amounts of any unpaid tax or amounts
of tax required to be collected, interest and penalties.
Section 21. PENALTIES: Any person required to make, render, sign
or verify any report under the provisions of this ordinance, who makes
any false or fraudulent return, with intent to defeat or evade the
determination of an amount due and required to be paid hereunder, is
guilty of a misdemeanor, and upon conviction thereof shall be punishable
by a fine of not -more than $500.00 or by imprisonment in the County Jail
of the County of Santa Clara for a period of not more than six months,
or by both such fine and imprisonment.
Section 22. SAME. Any person, firm or corporation violating
any of the
terms of this ordinance shall be deemed guilty of a
mis-
demeanor,
and upon conviction thereof shall be
punishable by a
fine
of not more than $500.00 or by imprisonment in
the County Jail
of the
County of
Santa Clara for a period of not more
than six months,
or by
both such
fine anal imprisonment.
Section 23. SEVERABILITY. If any section, subsection, sentence,
clause, phrase, or portion of this ordinance 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 this Town hereby
declares that it would 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, clauses,
phrases or portions be declared invalid or unconstitutional.
Section 24. EFFECTIVE DATE. This ordinance, inasmuch as it
provides for a tax levy for the usual current expenses of the Town,
shall, under the provisions of Section 1 of Article IV of the Consti-
tution, take effect immediately, and before the expiration of fifteen
(15) days after its passage it shall be published once with the names
-10-
of the members voting for a_nd against the same in the Los uatos Daily
Times, a newspaper published in the Town of Los Gatos.
Introd:ced at a regular meeting of the Town Council o the Town
of Los Gatos, State of California, held on the 2nd day of September $
1952.
PASSED AND ADOPTED AS AN ORDINANCE OF THE TOWN OF LOS GATOS,
CALIFORNIA, AT.A REGULAR MEETING OF THE TOWN COUNCIL THEREOF, HELD
ON THE EZ1-/- DAY OF 1952, by the following vote:
-AYES: COUNCII11"EN
NOES: COUNCILMEN
ABSENT: COUNCILMEN
APPRO
MAYO OF THE TN N'LOS GAT OS
ATTEST:
TOWN LERV THE -TOWN OF LOS GAT05
-11-