HomeMy WebLinkAboutCC Ord 481 1955-12-20
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ORDINANCE NO.
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AN ORDINANCE OF THE CITY OF SEAL BEACH ADOPTING
PART 1 OF DIVISION 2 OF THE CALIFORNIA REVENUE AND
TAXATION CODE KNOWN AS THE "SALES AND USE TAX
LAW", AS IT EXISTED ON JANUARY 1, 1955, EXCEPT SEC-
TIONS 6006, 6008, 6009, 6009.1, 6051, 6066, 6067, 6068,
6069, 6070, 6071, 6091, 6201, 7052, 7056, 7102, 7103, 7151
AND 7153; AND IMPOSING A LICENSE TAX FOR THE PRIVI-
LEGE OF SELLING AND A LICENSE TAX FOR THE PRIVI-
LEGE OF USING OR OTHERWISE CONSUMING TANGffiLE
PERSONAL PROPERTY WITHIN THE CITY OF SEAL BEACH.
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The City Council of the City of Seal Beach does ordain as follows:
SECTION 1: That pursuant to the provisions of Sections 50022.1 to
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10 50022.8, both inclusive, of the Government Code of the State of California, the
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office of the City Clerk of the City of Seal Beach at least fifteen (15) days pre-
ceding the hearing hereinafter provided for, and shall be kept there for public
18 inspection while said Code is in force, all of which copies shall be certified to
19 be trlle copies by the City Clerk. That following the adoption of said Code the
20 City Clerk shall at all times maintain a reasonable supply of copies of said Code
21 avaHable for purchase by the public at a moderate price, not to exceed the actua
22 cost thereof to the City of Seal Beach.
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SECTION 2: That after the first reading of this Ordinance and the Sales
24 and Use Tax Law to be adopted by reference, there shall be a public hearing
25 thereon on the 2oT\l'VIIA fA:; l:wCEtI'IBiOt.ltf,fJ' . Notice of the hearing shall be pub-
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26 lished by the City Clerk twice in the Seal Beach Post and Wave, a newspape r of
27 general circulation, printed, published and circulated within the City of Seal
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Beach, the first of which pllblications shall be at least fifteen (15) days and the
second of which publications shall be at least eight (8) days, preceding the date
30 of said hearing. Said notice shall state the time and place of said hearing and
31 shall state that copies of said Sales and Use Tax Law being considered for
32 adoption are on file with the City Clerk of the City of Seal Beach and are open to
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1 public inspection. Said notice shall contain a description sufficient to give notice
2 to interested persons of the purpose of the Code to be adopted by reference, the
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subject matter of such Code, the name and address of the agency by which it has
been promulgated, and the dates of publication thereof.
5 The City Council does hereby find and determine that the following is a
6 sufficient description to be incorporated in said notice to give notice to intereste
7 persons of the purpose of the Code, the subject matter of such Code, the name
8 and address of the agency by which it has been promulgated, and the dates of
9 publication thereof, to-wit:
10 An act imposing a tax for the privilege of selling tangible
personal property and for the privilege of furnishing, pre-
II paring or serving tangible personal property; providing for
permits to retailers; providing for the levying, assessing,
12 collecting, paying and disposing of such tax; making an
appropriation for the administration thereof; prescrtbing
13 penalties for violation of the provisions thereof; and pro-
viding that said Act shall take effect immediately, as en-
14 acted by the California State Legislature in 1933 and ap-
proved by the Governor July 31, 1933 (Statutes of 1933,
15 Chapter 1020); and
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An act imposing an excise tax on the storage, llse or other
consumption in the State of California of tangible personal
property; providing for the registration of retailers; pro-
viding for the levying, assessing, collecting, paying and
disposing of sllch tax; making an appropriation for the ad-
ministration thereof; prescrtbing penalties for violation of
the provisions thereof; and providing that said Act take effect
immediately, as enacted by the California State Legislature
in 1935 (Statlltes of 1935, Chapter 361), approved by the
Governor June 25, 1935, which said Acts are commonly
known and designated as the "Sales and Use Tax Law" of
CaUfornla and are now incorporated in and made a part of
the Revenue and Taxation Code as Part 1 of Division 2
thereof, as amended to January 1, 1955.
SECTION 3: That there be impQsed a license tax for the privilege of
25 selling and a license tax for the privilege of using or otherwise consuming
26 tangible personal property within the City of Seal Beach.
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SECTION 4: Sales Tax means the tax imposed for the privilege of sellin
tangible personal property at retail, and such tax is hereby imposed upon re-
tailers at the rate of One per cent (10/0) of the gross receipts of any retailer
30 from the sale of all tangible personal property sold at retail in the City of Seal
31 Beach.
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SECTION 5: Use Tax means the excise tax which is hereby imposed on
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1 the use or other consllmption in the City of Seal Beach of tangible personal
2 property purchased from any retailer for storage, use or consumption in the
3 City of Seal Beach at the rate of One per cent (l'y.) of the sales price of the
4 property.
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SECTION 6: The word "Sale" means and includes:
(a) Any transfer of title or possession, exchange, barter, lease
or rental, conditional or otherwise, in any manner or by any means
whatsoever, of tangible personal property for a consideration.
"Transfer of possession", "lease" or "rental" includes only trans-
actions found by the City Clerk to be in lieu of a transfer of
title, exchange or barter.
(b) Any withdrawal of tangible personal property from a point
within the City of Seal Beach, except a withdrawal pursuant to a
transaction in foreign or interstate commerce which is immune
from local taxation by reason of the provisions of the United
States Constitlltion, for delivery to any place within or without
the City, for the purpose of transfer of title or possession, ex-
change, barter, lease or rental, conditional or otherwise, in
any manner or by any means whatsoever, of the property for a
consideration.
(c) The producing, fabricating, processing, printing or im-
printing of tangible personal property for a consideration for
consumers who furnish either directly or indirectly the materials
used in the producing, fabricating, processing, printing or
imprinting.
(d) The furnishing and distributing of tangible personal
property for a consideration by social clubs and fraternal or-
ganizations to their members or others.
(e) The furnishing, preparing or serving for a consideration
of food, meals or drinks.
(f) A transaction whereby the possession of property is trans-
ferred, but the seller retains title as secllrity for the payment of
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the price.
(g) A transfer of the title or possession of tangible personal
property which has been produced, fabricated or printed to the
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special order of the custoner, or of any publication.
SECTION 7: The word "Use" means and includes.the exercise of any
6 right or power over tangible personal property incident to the ownership of that
7 property, subject, however. to the following exceptions:
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(a) The sale of that property in the reglllar course of business.
(b) The keeping, retaining or exercising of any right or power
over tangible personal property which is to be transported outside
the City for principal use or consumption outside the City, and
which property is actually so used or consumed.
(c) The use of such property for the purpose of being processed,
fabricated or manufactured into, attached to or incorporated into,
other tangible personal property which is to be subsequently sold
or resold in the regular course of business.
(d) The use of tangible personal property actually employed in
the transportation or transmission of persons, property, gas,
electricity or commllnications.
SECTION 8: All of the provisions of Part 1 of Division 2 of the Californi
21 Revenue and Taxation Code, known as the "Sales and Use Tax Law", applicable
22 to the sale of property at retail, are hereby made a part of this Ordinance as
2:5 though fully set forth herein; provided, however, that the term "Gross Receipts"
24 as used herein, does not include the amollnt of any tax imposed by the State of
25 California llpon or with respect to retail sales, whether imposed upon the re-
26 tailer or consumer.
27 All of the provisions of the "Sales and Use Tax Law", as adopted, pro-
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viding for the adoption of rules and regulations and for hearings on the part of
the State Board of Equalization shall be performed by the City Council of the
30 City of Seal Beach. All other provisions of the "Sales and Use Tax Law" as
31 adopted, providing for the performance of official action on the part of the State
32 Board of Equalization shall be performed by the City Clerk.
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1 The City of Seal Beach shall be deemed substituted for the State of Cali-
2 fornia whenever the State is referred to in said "Sales and Use Tax Law".
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The City Treasurer shall be deemed substituted for the State Controller
and State Board of Control whenever the State Controller or State Board of Con-
5 trol is referred to in said "Sales and Use Tax Law".
6 The County of Orange shall be deemed substituted for the County of
7 Sacramento whenever the County of Sacramento is referred to in said "Sales
8 and Use Tax Law".
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SECTION 9: The tax hereby levied, except as otherwise herein provided
10 is levied in the same manner, to the same extent, and under the same conditions
11 as sales and use taxes are levied pllrsuant to Part 1 of Division 2 of the "Sales
12 and Use Tax Law".
13 SECTION 10: The inclusion of any clause, portion or part of the State
14 "Sales and Use Tax Law", Part 1 of Division 2 of the Revenue and Taxation Codel
15 of California, verbatim in this ordinance, shall net, in or of itself, be deemed
to exclude any of the remaining provisions of said "Sales and Use Tax Law" that
are made a part hereof by reference only. .
SECTION 11: Every person desiring to e?gage in or conduct business as
a seller within the City of Seal Beach shall file with the City Clerk an applicatio
20 for a permit for each place of business. Every application for a permit shall be
21 made upon a form prescribed by the City Clerk and shall set forth the name und r
22 which the applicant transacts or intends to transact business, the location of his
23 place or places of bllsiness, and such other information as the City Clerk may
24 require. The application shall be signed by the owner, if a natural person; in
25 the case of an association or partnership, by a member or partner; in the case
26 of a corporation, by an executive officer or some person specifically authorized
27 by the corporation to sign the application to which shall be attached the written
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evidence of his authority.
SECTION 12: Every retailer selling tangible personal property for use
30 or other consumption in the City of Seal Beach and which retailer maintains a
31 place of business in this City or acts through agents located in the City, and
32 which retailer is not otherwise registered under the provisions of this Ordinanc ,
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shall register with the City Clerk and give the name and address of such agent
or agents and offices or other places of business in the City.
SECTION 13: After compliance with the above sections by the applicant,
the City Clerk shall grant and isslle to each applicant a separate permit for each
place of business within the City of Seal Beach. A permit is not assignable and
is valid only for the person in whose name it is issued; provided, however, that
a change of ll;>cation may be endorsed upon the permit by the City Clerk. The
permit shall at all times be conspicuously displayed at the place for which issue
SECTION 14: Whenever any person fails to comply with any of the pro-
visions of this ordinance or any rule or regulation adopted pursuant hereto, the
City Council of the City of Seal Beach, 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 revok
or suspend anyone 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
City Clerk shall not issue a new permit after revocation of a permit unless the
City Council is satisfied that the former holder .of a permit will comply with the
provisions of this ordinance and the rilles and regulations adopted pllrsuant
hereto and directs the City Clerk to issue such permit.
SECTION 15: A person who engages in business as a seller in the City
of Seal Beach without a permit or permits, or after a permit has been suspende
or revoked and before the renewal or issuance of a permit, and each officer of
a corporation which so engages in business, is guilty of a misdemeanor.
SECTION 16: All taxes hereby levied shall be payable to the City Clerk
and any civil claim for the collection thereof may be filed in any court of com-
petent jurisdiction in the State of California.
SECTION 17: The City Clerk may, at his option, accept a State of Cali-
fornia Resales 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 information as he deems necessary to determine the nature of such sale.
SECTION 18: For the purpose of the proper administration of this
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ordinance, and to prevent the evasion of the Sales Tax, it shall be presumed
that all gross receipts are sllbject to tax unless the contrary is shown by the
permittee.
SECTION 19: In addition to the exemptions contained in Part I of Divi-
sion 2 of the Revenue and Taxation Code of California, there shall be excluded
from the complltation of this tax the following:
(a) Sales made to or by the State of California or any agency,
department, political subdivision, district or municipal corpo-
ration thereof.
(b) Sales of meals, food and drinks sold or served on common
carriers operating into, through, or out of the City of Seal Beach
from or to points outside the City of Seal Beach.
(c) Sales of property to be used in connection with the erection,
construction, repair or alteration of either public works or build-
ings 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 sllbdivision, district or
public or municipal corporation of the State.
(d) Sales made pursllant to contracts actually executed in good
faith prior to the date the Sales Tax becomes effective.
(e) Sales of property mailed by the seller, pursuant to the
contract of sale, to persons in the armed forces at points out-
side the continental United States, notwithstanding the property
is addressed in care of the Postmaster at San Francisco and
forwarded by him to the addressee. When mail is addressed
to Army Post Offices in care of the Postmaster at San Francisco,
it will be presumed that it is forwarded outside of California.
The seller must keep records showing names and addresses
as they appear on the mailed matter and should keep evidence
that the mailing was done by him.
SECTION 20: In addition to the exemptions contained in Part 1 of Divi-
sion 2 of the Revenue and Taxation Code of California, there shall be excluded
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from the computation of the use tax the following:
(a) That property, the gross receipts from the sale of which
are required to be included in the measure of the Sales Tax.
(b) That property upon which a sales tax, purchase tax, use
tax, purchase and use tax, or any of them, has been imposed
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by and paid on the same transaction to any city within the State
of California.
(c) That property actually employed in the transportation or
transmission of persons, property, gas, electricity or com-
munications in intrastate, interstate or foreign commerce by
public lltilities reglllated by the Public Utilities Commission of
the State of California.
(d) That property used in connection with the erection, con-
struction, repair or alteration of either public works or build-
ings belonging to or being constructed by or on behalf of, or for
the use of the United States Government, State of California, or
any agency, department, political subdivision, district or public
or municipal corporation of the State.
(e) That property which is shipped from olltside the City to
purchasers within the City and which property, before being
put to any use within the City, is transported to points without
the City for principal use or other consumption outside the City.
SECTION 21: For the purpose of the proper administration of this or-
24 dinance and to prevent the evasion of the Use Tax, ,it shall be presumed that
25 tangible personal property sold by any perst>n for delivery in the City of Seal
26 Beach, is sold for storage, llse, or other consumption in the City of Seal Beach,
27 until the contrary is established by the user or consumer.
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SECTION 22: All monies collected under and pursuant to the provisions
of this ordinance shall be deposited and paid into the General Fund of the City
30 of Seal Beach.
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SECTION 23: Any person required to make, render, sign or verify any
32 report under the provisions of this ordinance, who makes any false or fraudulen
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1 return, with intent to defeat or evade the determination of an amount due and
2 required to be paid herellnder, is guilty of a misdemeanor, and upon conviction
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thereof, shall be pllnished by a fine of not more than Three Hllndred Dollars
($300.00) or by imprisonment for not more than three (3) months, or by both
5 such fine and imprisonment.
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SECTION 24: Any person, firm, or corporation violating any of the
7 terms of this ordinance shall be deemed guilty of a misdemeanor, and upon con-
8 viction thereof, shall be punished by a fine of not more than Three Hllndred Dol-
9 lars ($300.00) or by imprisonment for not more than three (3) months, or by
10 both such fine and imprisonment.
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SECTION 25: If any section, subsection, sentence, clause or portion of
12 this ordinance is for any reason held to be invalid or unconstitutional by the
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decision of any court of competent jurisdiction, such decision shall not affect I
the validity of the remaining portions of this ordinance. The City Council herebi
declares that it would have adopted this Ordinance and each section, sllbsection, I
sentence, clause, phrase, or portion thereof, irrespective of the fact that one I
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or more sections, subsections, sentences, clauses, phrases, or portions be
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19 This Ordinance, inasmuch as it provides for a tax levy for the usual
20 and current expenses of the City, shall, under the provisions of Section I of
21 Article IV of the Constitlltion and of Section 36937 of the Government Code,
22 take effect immediately, but no liability for the payment and collection of the
23 taxes herein imposed shall exist until the Isr day of ",TAAlII ~,ul ' 195~.
24 SECTION 26: The City Clerk shall certify to the passage of this Ordin-
25 ance and cause the same to be printed once within fifteen (15) days after its
26 adoption in the Seal Beach Post and Wave, a ,newspaper of general circulation
27 printed, published and circulated in said City of Seal Beach.
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PASSED. APPROVED AND ADOPTED by the City Council of the City of
Seal Beach at a regular meeting thereof held on the .;:i?~ay of .:l)e"t!.tfmlJ6"i
19q(
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MA YOR OF THE CITY OF SEAL BEACH
ATTEST:
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CITY CLERK
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STA TE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF SEAL BEACH )
9 I. F. W. HICKMAN, City Clerk of the City of Seal Beach and ex-officio
10 clerk of the City Council, do hereby certify that the foregoing and attached
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Ordinance was finally passed, approved and adopted by the City Council of the
City of Seal Beach at a reglllar meeting thereof held on the ,;Je; ~day of
'p~,4fM'l'e, 19qj: by the following vote:
Ayes. Councilmen ~> ~- .. ( - "J ~-t/.46"1l1, {1...,.~ I/o .IC~K.
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Noes, Councilmen; /fr' 'C" ,,{6GJ;(/4-.e-b
Absent, Councilmen I LIQP/Jl/6~b
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Pass, Councilmen I ", ~'V v
DA TED: p{)..e.e,. , ?-O ,
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, 1955.
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CITY CLERK
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