HomeMy WebLinkAboutResolution No. 2024-C40RESOLUTION NO. 2024-C40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA CALLING FOR THE PLACEMENT OF A GENERAL TAX
MEASURE ON THE BALLOT FOR THE NOVEMBER 5, 2024 GENERAL
MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED
VOTERS OF AN ORDINANCE TO ENACT A SUPPLEMENTAL
GENERAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE
RATE OF ONE-QUARTER CENT (l/4d)
WHEREAS, the City of Azusa ("City") is authorized to levy a Transactions and Use Tax
("TUT") for general puiposes pursuant to California Revenue and Taxation Code section 7285.9,
subject to approval by a majority vote of the electorate pursuant to Article XIIIC, section 2 of the
California Constitution ("Proposition 218"); and
WHEREAS, pursuant to California Elections Code section 9222, the City Council has
authority to place local measures on the ballot to be considered at a Municipal Election; and
WHEREAS, California Revenue and Taxation Code section 7251.1 sets a combined limit
of 2% on the total TUT that a county and any city within the county may levy; and
WHEREAS, Los Angeles County has. for many years, used 1% of the 2% limit by enacting
Propositions A and C - two special TUT's to fund Countyvvide transportation projects and services;
and
WHEREAS, over the last seven years (and will continue for the next three years), the
County has been taking millions of Azusa resident's tax dollars that the City of Azusa has seen
pennies on the dollar in return; and
WHEREAS, the City of Azusa should have local control over local taxpayer dollars to be
spent on the Azusa City services and for the City to be self-reliant in the case of any emergency;
and
WHEREAS, every penny of this measure would be spent on the services that benefit Azusa
residents and no funds could be taken by the County, State or any other government entity; and
WHEREAS, this measure could provide funding for Azusa City services such as
addressing homelessness locally, continuing police anti-gang enforcement programs, maintaining
police patrols of neighborhood schools, maintaining police patrols of neighborhoods, parks and
recreations areas, and repairing streets and potholes, and improving public facilities; and
WHEREAS, with nearly 60% of the Azusa City budget dedicated to local public safety
services. Measure " " funding could help maintain 91 1 emergency response, police officer
staffing levels and patrols of neighborhoods, schools and parks; and
WHEREAS, in March, 2017, Los Angeles County voters enacted Measure H, an additional
14% special TUT for 10 years to fund Countywide programs and services to address homelessness;
and
WHEREAS, County Measure H counts against the 2% statutory combined limit,
effectively preventing cities like Azusa from utilizing this funding for local community benefit;
and
WHEREAS, as a result, since 2017, cities within Los Angeles County seeking to enact a
TUT have been statutorily prevented from proposing no more than a V4% TUT to their voters, since
Los Angeles County is currently using 114% of the statutory limit under Revenue and Taxation
Code section 7251.1 between Propositions A and C and Measure H; and
WHEREAS, Measure H is scheduled to sunset by its own terms on September 30, 2027;
and
WHEREAS, on June 25, 2024, the Los Angeles County Board of Supervisors placed a new
measure on the November 5, 2024 Statewide General Election ballot that would enact a new 1/2%
special TUT to fund Countywide programs and services to address homelessness; and
WHEREAS, the new County measure would repeal Measure H and, per special legislation,
would not count against the 2% combined limit under Revenue and Taxation Code section 7251.1;
and
WHEREAS, by operation of the new County TUT measure should it pass, or the scheduled
sunset of County Measure H, by no later than September 30, 2027, an additional '4% of authority
under the 2% combined limit will be available for Los Angeles County cities to enact city TUT's,
effectively capturing funding that would be locally controlled in cities like Azusa for the benefit
of city residents; and
WHEREAS, based upon the above, the City Council would like to submit to the voters at
the November 5, 2024 General Municipal Election a measure that, commencing the earlier of (i)
April 1,2025, if a Los Angeles County transactions and use tax measure is approved by voters at
the November 5, 2024 Election and, by operation of Revenue and Taxation Code section
7286.01(a)(5), the transactions and use tax enacted by Los Angeles County Measure H in March
2017 is repealed by law; or (ii) October 1,2027, if a Los Angeles County transactions and use tax
measure is not approved by voters at the November 5, 2024 Election and the transactions and use
tax enacted by Los Angeles County Measure H in March 2017 expires by its own terms on
September 30, 2027, would establish a supplemental, locally-controlled general TUT of one-
quarter cent (1/40) on the sale and/or use of all tangible personal property sold at retail in the City
until it is repealed by voters, as more specifically set forth in the attached proposed ordinance
adding Article IX to Chapter 70 of the City's Municipal Code; and
WHEREAS, the one-quarter cent (1/40) TUT is a general tax, the revenue of which will be
placed in the City of Azusa's general fund and will be used to pay for general City of Azusa
services, including, but not limited to public safety services; youth and senior programs. City
facility maintenance and homeless programs and services; and
WHEREAS, on November 6, 1996, the voters of the State of California approved
Proposition 218, an amendment to the State Constitution which requires that all general taxes
which are imposed, extended or increased must be submitted to the electorate and approved by a
majority vote of the qualified electors voting in the election; and
WHEREAS, pursuant to Proposition 218 (California Constitution, Article XIIIC, section
2(b)), the general rule is that any local election for the approval of an increase to a general tax must
be consolidated with a regularly scheduled general election for members of the governing body of
the local government; and
WHEREAS, the next regularly scheduled general election at which City Council members
will be elected is November 5, 2024; and
WHEREAS, pursuant to Revenue and Taxation Code section 7285.9, a two-thirds (2/3)
vote of all members of the City Council is required to place the Measure on the November 5, 2024
ballot; and
WHEREAS, the ordinance to be considered by the qualified voters and the terms of
approval, collection and use of the general TUT are described and provided for in the
ordinance/measure attached hereto as Exhibit "A" (the "Measure") and by this reference made an
operative part hereof, in accordance with all applicable laws; and
WHEREAS, the City of Azusa has a proud tradition of fiscal pmdence and accountability
with taxpayer dollars; and
WHEREAS, the City of Azusa does not wish to increase taxes on Azusa residents, nor the
rate they are paying - the City simply wants to recapture the amount the County is currently
receiving when it becomes available to have local control over that funding to benefit Azusa
residents.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF AZUSA:
SECTION 1. Incorporation of Recitals. The foregoing recitals are true and correct and are
hereby incorporated and made an operative part of this Resolution.
SECTION 2. Submission of Ballot Measure. Pursuant to California Elections Code
section 9222, Revenue and Taxation Code section 7285.9 and any other applicable requirements
of the laws of the State of California relating to the City, the City Council, by a two-thirds (2/3)
vote of all members, hereby orders the Measure to be submitted to the voters of the City at the
General Municipal Election to be held on Tuesday, November 5, 2024.
SECTION 3. The City Council, pursuant to California Elections Code section 9222,
hereby orders that the ballot question for the Measure shall be presented and printed upon the
ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the
ballot to be submitted to the qualified voters at the General Municipal Election to be held on
Tuesday, November 5. 2024, in addition to any other matters required by law, there shall be
printed substantially the following ballot question:
City of Azusa Public Safety, Community Services, Local Control/
Accountability Measure.
"Shall the measure to maintain locally-generated funding for police,
firefighter/ paramedic/ 911 response services; clean up encampments/
address homelessness; fix potholes/ streets; maintain gang enforcement,
neighborhood patrols, clean water, parks, community centers, senior
services, afterschool programs and other general City services,
authorizing a '/40 sales tax, taking effect when legally permissible,
generating approximately $2,500,000 annually until ended by voters;
requiring audits/spending disclosure, be adopted?**
YES
NO
SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and
directed to procure and furnish any and all official ballots, printed matter and all supplies,
equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the
election. In all particulars not recited in this Resolution, the election shall be held and conducted
as provided by law for holding municipal elections.
SECTION 5. Pursuant to Elections Code section 9280, the City Council hereby directs
the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall
prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the
effect of the Measure on the existing law and the operation of the Measure, and transmit such
impartial analysis to the City Clerk not later than the deadline for submittal of primary arguments
for or against the Measure.
The impartial analysis shall include a statement indicating whether the Measure was
placed on the ballot by a petition signed by the requisite number of voters or by the City Council.
In the event the entire text of the Measure is not printed on the ballot, nor in the voter
information guide, there shall be printed immediately below the impartial analysis, in no less
than 10-font bold type, the following: “The above statement is an impartial analysis of
Ordinance or Measure . If you desire a copy of the ordinance or measure, please call
the Office of the City Clerk at (626) 812-5200 (Ext. 0) and a copy will be mailed at no cost
to you.
SECTION 6. Notice of the election is hereby given and the City Clerk is authorized,
instructed and directed to give further or additional notice of the election, in time, form and manner
as required by law.
SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed in
the voter information guide, A statement shall be printed on the ballot pursuant to Elections Code
section 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no
cost, upon request made to the City Clerk.
SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to
the General Municipal Election to be held on Tuesday, November 5,. 2024, file with the Board of
Supervisors and the Registrar of Voters of the County of Los Angeles, State of California, a
certified copy of this Resolution.
SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this Measure
will be available for public examination for no fewer than ten (10) calendar days prior to being
submitted for printing in the voter infonnation guide. The City Clerk shall post notice in the
Clerk's office of the specific dates that the examination period will run.
SECTION 10. The City Council hereby finds and determines that the Measure relates to
organizational or administrative activities of governments that will not result in direct or indirect
physical changes in the environment, and therefore is not a project within the meaning of the
California Environmental Quality Act ("CEQA'’) and the State CEQA Guidelines, section
15378(b)(5).
SECTION 11. Severability. The provisions of this Resolution are severable and if any
provision of this Resolution is held invalid, that provision shall be severed from the Resolution and
the remainder of this Resolution shall continue in full force and effect, and not be affected by such
invalidity.
SECTION 12. This Resolution shall become effective upon its adoption.
SECTION 13. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 29 *^ day of July, 2024.
C
yRobert Gonzales
Mayor
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF AZUSA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2024-C40 was duly adopted
by the City Council of the City of Azusa, at a Special City Council Meeting thereof held on the
29” day of July 2024, by the following vote of the Council:
AYES:
NOES:
ABSENT: COUNCILMEMBERS:
COUNCILMEMBERS: GONZALES, ALVAREZ, AVILA, MENDEZ, BECKWITH
COUNCILMEMBERS:
o Cornejo,
APPROVED AS TO FORM:
Bcsi'b^ & Krieg'er^LP ^
City Attorney
Exhibit “A”
Azusa Supplemental Transactions and Use Tax Ordinance
[attached behind this page]
ORDINANCE NO.
AN ORDINANCE OF THE PEOPLE OF THE CITY OF AZUSA, CALIFORNIA,
ADDING ARTICLE IX TO CHAPTER 70 OF THE AZUSA MUNICIPAL CODE TO
ENACT A SUPPLEMENTAL, GENERAL, ONE-QUARTER PERCENT (1/4%)
GENERAL TRANSACTIONS AND USE TAX (SALES TAX), EFFECTIVE AFTER LOS
ANGELES COUNTY MEASURE H IS REPEALED OR EXPIRES, TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION
WHEREAS, pursuant to California Revenue and Taxation Code section 7285.9 the City of
Azusa ("City*') is authorized to levy a Transactions and Use Tax for general purposes, subject to
majority voter approval; and
WHEREAS, the People of the City desire to add Article IX to Chapter 70 of the Azusa
Municipal Code establishing, effective after Los Angeles County's Measure H is repealed or
expires, a Supplemental General Transactions and Use Tax ("TUT") until ended by voters, on the
sale and/or use of all tangible personal property sold at retail in the City, at a rate of one-quarter
cent (1/4^5).
NOW, THEREFORE, THE PEOPLE OF THE CITY OF AZUSA DO HEREBY
ORDAIN AS FOLLOWS:
Section 1. Title and Text. This Ordinance shall be known as the "Azusa Supplemental
General Transactions and Use Tax", the full text of which is set forth in Attachment "1", attached
hereto and incorporated herein by reference.
Section 2. Approval by the City Council. Pursuant to California Government Code section
53724 and Revenue and Taxation Code section 7285.9, this Ordinance was duly approved for
placement on the ballot by a minimum two-thirds (2/3) supennajority of all members of the City
Council on July 29, 2024.
Section 3. Approval bv the Voters. Pursuant to California Elections Code section 9217, this
Ordinance shall be deemed adopted and take effect only if approved by a majority of the eligible
voters of the City of Azusa voting at the General Municipal Election of November 5, 2024. It
shall be deemed adopted when the City Council has certified the results of that election by
resolution and shall take effect ten (10) days thereafter.
Section 4. Operative Date. "Operative Date" for the Transactions and Use Tax means the
earlier of (i) April 1,2025, if a Los Angeles County transactions and use tax measure is approved
by voters at the November 5, 2024 Election and, by operation of Revenue and Taxation Code
section 7286.01(a)(5), the transactions and use tax enacted by Los Angeles County Measure H in
March 2017 is repealed by law; or (ii) October 1,2027, if a Los Angeles County transactions and
use tax measure is not approved by voters at the November 5, 2024 Election and the transactions
and use tax enacted by Los Angeles County Measure H in March 2017 expires by its own terms
on September 30, 2027. Pursuant to California Revenue and Taxation Code section 7251.1, the
tax enacted by this measure was adopted by a majority of Azusa voters at the November 5, 2024
General Municipal Election. As a result of said prior-in-time voter adoption, no subsequent
transactions and use tax proposed or enacted after the November 5. 2024 Election by Los
Angeles County or by any other public agency within Los Angeles County, shall be effective
within the City of Azusa if, when combined with this City tax, would exceed the combined
statutory limit under section 7251 .1.
Section 5. 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.
1 hereby certify that the Azusa General Transactions and Use Tax Ordinance was
PASSED, APPROVED, AND ADOPTED by the People of the City of Azusa on the 5^^ day of
November, 2024.
CITY OF AZUSA
ROBERT GONZALES, MAYOR
ATTEST:
JEFFREY CORNEJO, CITY CLERK
APPROVED AS TO FORM:
MARCO A. MARTINEZ, CITY ATTORNEY
Article IX, Sections 401 through 413 are hereby added to Chapter 70 of the Azusa
Municipal Code to read as follows:
Article IX - SUPPLEMENTAL GENERAL TRANSACTIONS AND USE TAX
Sections:
70-401 - Title.
70-402 - Purpose.
70-403 - Contract With State.
70-404 - Transactions Tax Rate.
70-405 - Place of Sale.
70-406 - Use Tax Rate.
70-407 - Adoption of Provisions of State Law.
70-408 - Limitations on Adoption of State Law and Collection of Use Taxes.
70-409 n Permit Not Required.
70-410 n Exemptions and Exclusions.
70-411 - Amendments.
70-412 - Enjoining Collection Forbidden.
70-413 - Duration of Tax
Sections:
70^01 - Title.
This ordinance shall be known as the “City of Azusa Supplemental General
Transactions and Use Tax Ordinance”. The City of Azusa hereinafter shall be called
“City.” This ordinance shall be applicable in the incorporated territory of the City.
70-402 - Purpose.
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 impose a retail transactions and use tax in accordance with the provisions of Part
1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation
Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt
this tax ordinance which shall be operative if a majority of the electors voting on the
measure vote to approve the imposition of the tax at an election called for that
purpose.
B. To adopt a retail transactions and use tax ordinance that 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 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and
provides a measure therefore that can be administered and collected by the
California Department of Tax and Fee Administration 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 California Department of
Tax and Fee Administration in administering and collecting the California State
Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a
manner that will be, to the greatest degree possible, consistent with the provisions of
Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of
collecting the transactions 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.
70-403 - Contract With State.
Prior to the operative date, the City shall contract with the California Department of Tax
and Fee Administration to perform all functions incident to the administration and
operation of this transactions and use tax ordinance; provided, that if the City shall not
have contracted with the California Department of Tax and Fee Administration 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.
70-404 - Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed
upon all retailers in the incorporated territory of the City at the rate of one-quarter
percent (1/4%) of the gross receipts of any retailer from the sale of all tangible personal
property sold at retail in said territory on and after the operative date of this ordinance.
70-405 - 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 California Department of Tax and Fee
Administration.
70-406 - Use Tax Rate.
An excise tax is hereby imposed on the storage, use or other consumption in the City of
tangible personal property purchased from any retailer on and after the operative date
of this ordinance for storage, use or other consumption in said territory at the rate of
one-quarter percent (1/4%) 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.
70-407 - 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 1.6 of Division 2 of the Revenue and Taxation
Code, all of the provisions of Part 1 (commencing with Section 6001) 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.
70-408 - Limitations on Adoption of State Law and Collection of Use Taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the
name of this City shall be substituted therefor. However, the substitution shall not
be made when:
1. The word “State” is used as a part of the title of the State Controller, State
Treasurer, California Victim Compensation Board, California Department of Tax
and Fee Administration, State Treasury, or the Constitution of the State of
California:
2. The result of that substitution would require action to be taken by or against this
City or any agency, officer, or employee thereof rather than by or against the
California Department of Tax and Fee Administration, in performing the functions
incident to the administration or operation of this Ordinance.
3. 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;
a.
b.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 provision of that code.
4. In reference to Sections 6701, 6702 (except in the last sentence thereof), 6711,
6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word “city” shall be substituted for the word “state” in the phrase “retailer
engaged in business in this state” in Section 6203 of the Revenue and Taxation
Code and in the definition of that phrase in Section 6203.
1. “A retailer engaged in business in the City” shall also include any retailer that, in
the preceding calendar year or the current calendar year, has total combined
sales of tangible personal property in this state or for delivery in the State by the
retailer and all persons related to the retailer that exceeds five hundred thousand
dollars ($500,000). For purposes of this section, a person is related to another
person if both persons are related to each other pursuant to Section 267(b) of
Title 26 of the United States Code and the regulations thereunder.
70-409 - 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 transactor’s permit shall not be required by this
Ordinance.
70-410 - Exemptions and Exclusions.
A. There shall be excluded from the measure of the transactions tax and the use tax
the amount of any sales tax or use tax imposed by the State of California or by any
city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales
and Use Tax Law or the amount of any state-administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the
gross receipts from:
Sales of tangible personal property, other than fuel or petroleum products, to
operators of aircraft to be used or consumed principally outside the county 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.
1.
Sales of property to be used outside the City which is shipped to a point outside
the City, pursuant to the contract of sale, by delivery to such point by the retailer
or his agent, or by delivery by the retailer to a carrier for shipment to a consignee
at such point. For the purposes of this paragraph, delivery to a point outside the
City shall be satisfied:
2.
With respect to vehicles (other than commercial vehicles) subject to
registration pursuant to Chapter 1 (commencing with Section 4000) of
Division 3 of the Vehicle Code, aircraft licensed in compliance with
Section 21411 of the Public Utilities Code, and undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the
Vehicle Code by registration to an out-of-City address and by a
declaration under penalty of perjury, signed by the buyer, stating that such
address is, in fact, his or her principal place of residence; and
a.
With respect to commercial vehicles, by registration to a place of business
out-of-City and declaration under penalty of perjury, signed by the buyer,
that the vehicle will be operated from that address.
b.
The sale of tangible personal property if the seller is obligated to furnish the
property for a fixed price pursuant to a contract entered into prior to the operative
date of this ordinance.
3.
A lease of tangible personal property which is a continuing sale of such property,
for any period of time for which the lessor is obligated to lease the property for
an amount fixed by the lease prior to the operative date of this ordinance.
4.
For the purposes of subparagraphs (3) and (4) of this subsection, the sale or
lease of tangible personal property shall be deemed not to be obligated pursuant
to a contract or lease for any period of time for which any party to the contract or
lease has the unconditional right to terminate the contract or lease upon notice,
whether or not such right is exercised.
5.
C. There are exempted from the use tax imposed by this ordinance, the storage, use or
other consumption in this City of tangible personal property;
The gross receipts from the sale of which have been subject to a transactions tax
under any state-administered transactions and use tax ordinance.
1.
Other than fuel or petroleum products 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. This exemption
is in addition to the exemptions provided in Sections 6366 and 6366.1 of the
Revenue and Taxation Code of the State of California.
2.
If the purchaser is obligated to purchase the property for a fixed price pursuant to
a contract entered into prior to the operative date of this Ordinance.
3.
If the possession of, or the exercise of any right or power over, the tangible
personal property arises under a lease which is a continuing purchase of such
property for any period of time for which the lessee is obligated to lease the
property for an amount fixed by a lease prior to the operative date of this
Ordinance.
4.
For the purposes of subparagraphs (3) and (4) of this subsection, storage, use,
or other consumption, or possession of, or exercise of any right or power over,
tangible personal property shall be deemed not to be obligated pursuant to a
contract or lease for any period of time for which any party to the contract or
lease has the unconditional right to terminate the contract or lease upon notice,
whether or not such right is exercised.
5.
Except as provided in subparagraph (7), a retailer engaged in business in the
City shall not be required to collect use tax from the purchaser of tangible
personal property, unless the retailer ships or delivers the property into the City
or participates within the City in making the sale of the property, including, but
not limited to, soliciting or receiving the order, either directly or indirectly, at a
place of business of the retailer in the City or through any representative, agent,
canvasser, solicitor, subsidiary, or person in the City under the authority of the
retailer.
6.
“A retailer engaged in business in the City" shall also include any retailer of any
of the following: vehicles subject to registration pursuant to Chapter 1
(commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft
licensed in compliance with Section 21411 of the Public Utilities Code, or
undocumented vessels registered under Division 3.5 (commencing with Section
9840) of the Vehicle Code. That retailer shall be required to collect use tax from
any purchaser who registers or licenses the vehicle, vessel, or aircraft at an
address in the City.
7.
D. Any person subject to use tax under this ordinance may credit against that tax any
transactions tax or reimbursement for transactions tax paid to a district imposing, or
retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the
Revenue and Taxation Code with respect to the sale to the person of the property
the storage, use or other consumption of which is subject to the use tax.
70-411 - Amendments.
All amendments subsequent to the effective date of this ordinance to Part 1 of Division
2 of the Revenue and Taxation Code relating to sales and use taxes and which are not
inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code,
and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation
Code, shall automatically become a part of this Ordinance, provided however, that no
such amendment shall operate so as to affect the rate of tax imposed by this
Ordinance.
70-412 - Enjoining Coilection 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 the City, or against any
officer of the State or the City, to prevent or enjoin the collection under this ordinance,
or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount
of tax required to be collected.
70-413 - Duration of Tax.
The tax imposed by this Article shall continue until this ordinance is repealed.