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CC Resolution 1982-013RESOLUTION NO. 82 -13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, AUTHORIZING EXECU- TION OF AN AGREEMENT WITH THE STATE BOARD OF EQUALIZATION RELATING TO ADMINISTRATION OF LOCAL SALES AND USE TAXES IN THE CITY. The City Council of the City of La Quinta, California, does hereby resolve as follows: SECTION 1. That certain "Agreement for State Administration of Local Sales and Use Taxes" a copy of which is on file in the office of the City Clerk hereby is approved and the Mayor is author- ized and directed to execute said Agreement for and on behalf of the City. SECTION 2. The City Clerk shall transmit five (5) signed copies of said Agreement to: Secretary, State Board of Equalization, P. O. Box 1799, Sacramento, California 95808. To each copy of the said signed Agreement so transmitted, the City Clerk shall attach a certi- fied copy of this Resolution together with a certified copy of Ordinance No. 3, the City's Sales and Use Tax Ordinance. APPROVED and ADOPTED this 1st day of May, 1982. MAYOR ATTEST: CIT CLERK APPROVED AS TO FORM: �. wire'. AS TO CONTENT: CITY 9M `— City of La Quinta AGREEMENT FOR STATE ADMINISTRATION OF LOCAL SALES AND USE TAXES To carry out Part 1.5 of Division 2 of the Revenue and Taxation Code and the sales and use tax ordinance of the City hereinabove designated, hereinafter called the City, copy of which ordinance is attached hereto, the City and the State Board of Equalization, hereinafter called the Board. do agree as follows: ARTICLE 1 DEFINITIONS Unless the context requires otherwise, wherever the following terms appear in this Agreement the. shall be interpreted to mean the following: 1. "Local Taxes` shall mean the sales and use taxes. penalties, and interest imposed by the Ciry under an ordinance which complies with Part 1.5, Division 2, of the Revenue and Taxation Code. 2. "Conforming Taxing Jurisdiction" shall mean any county, city, or city and county of this Stare which has adopted a sales and use tax ordinance of the kind described in Part 1.5 of Division 2 of the Revenue and Taxation Code and which has entered into a contract with the State Board of Equalization to perform all functions incident to the administration and operation of the ordinance. 3. "City Ordinance' shall mean the Uniform City Sales and Use Tax Ordinance attached hereto. as amended from time to time ARTICLE 11 ADMINISTRATION AND COLLECTION OF LOCAL TAXES A. Administration. The Board and the City agree that the Board shall perform ex- clusively all functions incident to the administration and operation of the City ordinance. B. Other applicable laws. The City agrees that all provisions of law applicable to the administration and operation of the State Sales and Use Tax Law shall be applicable to the administration and operation of the City ordinance and that money collected pursuant to the City ordinance may be deposited in the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for the purpose of making refunds. for the purpose of compensating and reimbursing the Board pursuant to Article IV of this Agreement and for the purpose of trans- mitting to the City the amount to which the City is entitled. C. Transmittal of money. Except as otherwise provided herein.all local taxes collected under the provisions of the City ordinance shall be transmitted to the City periodically as promptly as feasible Such transmittals shall be made at least twice in each calendar quarter. Transmittals may be made by mail or by deposit to the account of the City to a bank in Sacra- mento designated by the City. A statement shall be furnished indicating the amount withheld pursuant to Article IV of this agreement. D. Rules. The Board shall prescribe and adopt such rules and regulations as in its judgment are necessary' or desirable for the administration and operation of the City ordinance and the distribution of the local taxes collected thereunder E. Preference. Unless the payor instructs otherwise and except as otherwise provided in this Agreement. the Board shall give no preference in applying money received for sales and use taxes owed by a taxpayer but shall apply all monies collected to the satisfaction of the claims of the State and the claims of the City as their interests appear. F. Security. The Board agrees that any security which it hereafter requires to be fur- nished under the State Sales and Use Tax Law will be upon such terms that it also will be available for the pavment of the claims of the City for local taxes owing to it as its interest appears. The Board shall not be required to change the terms of any security now held by it and the Citv shall not participate in any security now held by the Board. G. \amen of sellers. The Board agrees to furnish the names. addresses, account num- bers. and the business classification codes of all sellers holding sellers' permits within the City. H Records of the Board. Rhen requested b% resolution of the Cit% Council of the City, the Board shall permit any duly authorized officer or employee of the Citc to examine the sales and use tax records of the Board pertaining to sales and use taxes collected for the City by the Board pursuant to this Agreement. Information obtained by the City from the examination of the Board's records shall be used by the City only for purposes related to the collection of local sales and use taxes by the Board pursuant to this .Agreement. 1. Cin tax rate. The City agrees that any change in the rate of its conforming local sales and use tax will be made effective at the beginning of a calendar quarter and that it will give the Board at least two months' notice thereof and that it will also give notice to the Board of Supervisors of the County in which the City lies. ]. Annexation. The City agrees that the Board shall not be required to give effect to an annexation. for the purpose of collecting and distributing ciry sales and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Board. The notice shall include two maps of the annexed area together with the address of the proFer:% nearest to the extended city boundar} on every street crossing that boundary. ARTICLE III ALLOCATION OF TAX A. Deficiency determination. All local taxes collected as a result of determinations or billings made by the Board, and all amounts refunded or credited may be distributed or charged to the respective conforming taxing jurisdictions in the same ratio as the taxpayer's self - declared local tax for the period for which the determination. billing, refund. or credit applies. B. Allocation. When the local tax is collected from or refunded or credited to the following: (1) Retailers having traveling sellers' permits or certificates of authority to collect use tax issued by the Board: (2) Persons regarded by the Board as retailers pursuant to Section 6015 of the Reve- nue and Taxation Code: i) Persons for whom no continuing account number was active at the date of pay- ment, or (4) Other retailers or purchasers having no permanent place of business within the State as determined by the Board; PT.527 REV 5X11.74 - 2 - or when the local tax is collected by way of deduction from. or when a refund of local tax is made in conjunction with, refunds of motor vehicle fuel license taxes, or when local tax is col- lected and direct allocation is impractical, the Board may distribute or charge such local tax to all conforming taxing jurisdictions in the county in which the sale or use occurred using the ratios reflected by the distribution of taxes collected from all other taxpayers in that county. To the extent that this cannot be done in a manner consistent with the economic and efficient performance of the duties of the Board under the Revenue and Taxation Code and the provisions of this Agreement, the Board may distribute or charge such local tax to all conforming taxing jurisdictions of this State using the ratios reflected by the distribution of taxes collected from all other taxpayers in the State. In making allocations under this paragraph county tax imposed at a rate in excess of 1 percent shall be excluded. C Vehicles. Vessels, and Aircraft. For the purposes of allocating local tax with respect to vehicles required to be registered or identified under the Vehicle Code. and with respect to vessels and aircraft, the address of the registered owner appearing upon the applica- tion for registration or identification may be used by the Board in determining the city of use To the extent this cannot be done in a manner consistent with the economic and efficient perfor- mance of the duties of the Board under the Revenue and Taxation Code and this Agreement. the Board mat allocate tax with respect to such vehicles, vessels, and aircraft in the manner pro- vided in Paragraph B of this Article. ARTICLE 1V COMPENSATION The City agrees to pay the Board as the Board's cost of administering the City ordi- nances such amount as is provided by law. Such amounts shall be deducted from the taxes collected by the Board for the City. ARTICLE V MISCELLANEOUS PROVISIONS A. Communications. Communications and notices may be sent by first -class United Stares Mail. A notification is complete when deposited in the mail. Communications and t.otices to be sent to the Board shall be addressed to: State Board of Equalization P.O. Box 1799 Sacramento, California 95808 Attention: Executive Secretary Communications and notices to be sent to the City shall be addressed to: City Manager City of La Quinta 78100 Calle Tampico La Quinta, California 92253 or to such other addressee anc /or address as the City Manager or City Clerk of the City may have formally advised the Board in writing during the effective period of this Agreement. B. Term. The date of this Agreement is the date on which it is approved by the De- partment of General Services. The Agreement shall take effect on the first day of the calendar quarter next succeeding the date of such approval, but in no case before the operative dare of the City ordinance, nor on a day other than the first day of a calendar quarter. This Agreement shall continue until September 30 next following the operative date of the City ordinance. and shall thereafter be renewed automatically from year to year unless one of the parties gives written notice of termination at least two months before the end of the term. The Board may ter- minate this .Agreement in the manner provided by law. STATE BOARD OF EQUALIZATION By Executtt -e Secretary CITY OF La Quinta B} (Stgtta`r cr, tts li e) Fred Wolff (Type name h MAYOR (Typc tztle here) BT -527 REV. 5 111 -7q - 4 -