This chapter shall be known as the "Garden Grove Transactions
and Use Tax Ordinance." The City of Garden Grove hereinafter shall
be called "City." This chapter shall be applicable in the incorporated
territory of the City.
(2897 § 1, 2018)
"Operative date"
means the first day of the first calendar quarter commencing
more than 110 days after the adoption of the ordinance enacting this
chapter, the date of such adoption being as set forth below.
(2897 § 1, 2018)
This chapter 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 chapter.
(2897 § 1, 2018)
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.
(2897 § 1, 2018)
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 percent 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 the ordinance
enacting this chapter.
(2897 § 1, 2018)
For the purposes of this chapter, 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.
(2897 § 1, 2018)
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 percent 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.
(2897 § 1, 2018)
Except as otherwise provided in this chapter 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 chapter as
though fully set forth herein.
(2897 § 1, 2018)
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, 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 chapter;
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:
a. 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
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;
B. The
word "City" shall be substituted for the word "State" in the phrase
"retailer engaged in business in this State" in Section 6203 and in
the definition of that phrase in Section 6203.
(2897 § 1, 2018)
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 chapter.
(2897 § 1, 2018)
All amendments subsequent to the effective date of this chapter
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 chapter,
provided however, that no such amendment shall operate so as to affect
the rate of tax imposed by this chapter.
(2897 § 1, 2018)
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 chapter,
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.
(2897 § 1, 2018)
If any provision of this chapter or the application thereof
to any person or circumstance is held invalid, the remainder of the
chapter and the application of such provision to other persons or
circumstances shall not be affected thereby.
(2897 § 1, 2018)
This chapter and the ordinance enacting it relates to the levying
and collecting of the City transactions and use taxes and shall take
effect immediately.
(2897 § 1, 2018)
The City shall empanel a Citizens' Oversight Committee to review
and report on the revenue and expenditure from funds raised under
the tax adopted by this chapter.
(2897 § 1, 2018)
The City shall ensure that annual independent audits are conducted
to account for the tax revenues received and expenditures made in
relation to the one percent transaction and use tax. Such audits will
be provided to the Citizens' Oversight Committee for their review.
(2897 § 1, 2018)