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ORD 003ORDINANCE NO. 3 AN ORDINANCE IMPOSING A SALES AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION AND PROVIDING PENALTIES FOR VIOLATIONS. The City Council of the City of La Quinta, California, does ordain as follows: SECTION 1. Short Title. This ordinance shall be known as the Uniform Local Sales and Use Tax Ordinance. SECTION 2. Rate. The rate of sales and use tax imposed by this Ordinance shall be one percent 0%) . SECTION 3. Operative Rate. This Ordinance shall be operative on May 1, 1982. SECTION 4. PURPOSE. The City 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 Code; (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 provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code; (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. -1- SECTION 5. Contract With State. Prior to the operative date, this City shall contract with the State Board of Equalization to perform all functions incidental to the adminis- tration 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, 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. SECTION 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 2 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this City on and after the operative date. SECTION 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 desti- nation. 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. SECTION 8. Use Tax. An excise tax is hereby 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 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 is made. SECTION 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 therein. -2- SECTION 10. Limitations on Adoption of State Law. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. The substitution, however, shall not be made when the work "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, use or other consumption remain subject to tax by the State under the provisions of Part 1 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 substitu- tion shall not be made in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, or 6828 or the Revenue and Taxation Code; and the substitution shall not be made for the work "State" in the phrase "retailer engaged in business in this State" in Section 6203 or in the definition of that phrase in Section 6203. SECTION 11. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional seller's permit shall not be required by this ordinance. SECTION 12. Exclusions and Exemptions. (a) The amount subject to tax shall not include any sales tax or use tax imposed by the State of California upon a retailer or consumer. (b) The storage, use, or other consumption of tangible personal pro- perty, the gross receipts from the sale of which have been subject to 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 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 of such vessels for commercial purposes. -3- (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 iaws 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 aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States or any foreign government is exempted from the use tax. SECTION 13. Amendments. All subsequent amendments of the Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent,with Part 1.5 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this ordinance. SECTION 14. 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. SECTION 15. 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. SECTION 16. 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 17. Effective Date. This ordinance relates to taxes for the usual and current expenses of the City and shall take effect immediately. -4- SECTION 18. Urgency. This ordinance is an urgency ordinance for the immediate preservation of the public peace, health and safety, is passed by at least a four -fifth (4/5) vote of the City Council, and shall take effect immediately upon its adoption. The facts constituting the urgency are these: The City of La Quinta is newly incorporated and comprises territory formerly unincor-' porated. It is necessary that this ordinance take effect immediately in order to assure that the newly incorporated City of La Quinta at the earliest possible time, becomes eligible for and receives funds pursuant to the sales and use tax laws administered by the State Board of Equalization. SECTION 19. County Ordinance Superseded. County of Riverside Ordinance No. 438 shall be superseded as of the operative date of this ordinance. SECTION 20. Posting. The City Clerk shall, within 15 days after the passage of this ordi- nance, cause it to be posted in at least the 3 public places designated by resolution of the City Council; shall certify to the adoption and posting of this ordinance; and shall cause this ordinance and its certification, together with proof of posting, to be entered in the book or ordinances of this City. The foregoing ordinance was introduced, adopted and ordered posted -'T at a meeting of the City Council held on May 1, 1982, by the following vote: AYES: Council Members Abbott, Baier, Cox, Henderson and Mayor Wolff. NOES: None. -5- Absent: gone ATTEST: IT ERK APPROVED AS TO FORM: Ole ITY ATTORNEY APPROVED AS TO OONTENT: A TI G C T MANAGER I hereby certify that the foregoing Ordinance was adopted by the City Council of the City of La Quinta, California, at a meeting held on May 1, 1982, and that the Ordinance was posted in at least the three public places specified for such postings by the City Council. F NK M. U§HE!R,C CLERK