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
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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
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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.
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(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
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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
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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.
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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
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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
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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
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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."
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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
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,ol-In let of file okvn Of ®S Gatos
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