This chapter shall be known as the "Temecula Transactions
and Use Tax Ordinance." The city of Temecula hereinafter shall
be called "city." This chapter shall be applicable in
the incorporated territory of the city.
(Ord. 16-06 § 1)
"Operative date" means the first day of the first
calendar quarter commencing more than one hundred ten days after the
adoption of Ordinance No. 2016-06.
(Ord. 16-06 § 1)
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 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 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.
(Ord. 16-06 § 1)
Prior to the operative date of this chapter, the city shall
contract with the State Board of Equalization to perform all functions
incident to the administration and operation of this transactions
and use tax ordinance; provided, that if the city has not 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 shall be the first day of the first calendar quarter following
the execution of such a contract.
(Ord. 16-06 § 1)
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 this chapter.
(Ord. 16-06 § 1)
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 or her 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 State Board
of Equalization.
(Ord. 16-06 § 1)
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 chapter 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.
(Ord. 16-06 § 1)
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.
(Ord. 16-06 § 1)
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 Board of Equalization, 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 State Board of Equalization, 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.
4.
In
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 and in the definition of that phrase in Section 6203.
(Ord. 16-06 § 1)
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.
(Ord. 16-06 § 1)
A.
There
shall be excluded from the measure of the transactions and 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 and use tax.
B.
There
are exempted from the computation of the amount of transactions tax
the gross receipts from:
1.
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.
2.
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:
a.
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
b.
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.
3.
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 chapter.
4.
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 chapter.
5.
For
the purposes of subparagraphs (3) and (4) of this section, 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.
C.
There
are exempted from the use tax imposed by this chapter, the storage,
use or other consumption in this city of tangible personal property:
1.
The
gross receipts from the sale of which have been subject to a transactions
tax under any stateadministered transactions and use tax ordinance.
2.
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.
3.
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 chapter.
4.
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 chapter.
5.
For
the purposes of subparagraphs (3) and (4) of this section, 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.
6.
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.
7.
"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.
D.
Any
person subject to use tax under this chapter 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.
(Ord. 16-06 § 1)
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. The city council shall have
the authority to amend this chapter so as to implement any changes
or additions required by the State Board of Equalization or other
state agency for the administration of the tax, provided however,
that no such amendment shall operate so as to affect the rate of tax
imposed by this chapter.
(Ord. 16-06 § 1)
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.
(Ord. 16-06 § 1)
If any provision of this chapter or the application thereof
to any person or circumstance is held invalid by a court of law, the
remainder of the chapter and the application of such provision to
other persons or circumstances shall not be affected thereby.
(Ord. 16-06 § 1)
By no later than December 31 of each year, the city's
independent auditors shall complete a Temecula Transactions and Use
Tax Ordinance Compliance and Internal Control Audit Report. Such report
shall review whether the tax revenues collected pursuant to this chapter
are collected, managed and expended in accordance with the requirements
of this chapter.
(Ord. 16-06 § 1)
