This chapter is designated and shall be known as the Atascadero
Essential Services Transactions and Use Tax Ordinance. The City of
Atascadero hereinafter shall be called "City." This chapter shall
be applicable in the incorporated territory of the City.
(Ord. 638 § 1, 2020)
"Operative date" means the first day of the first calendar quarter
commencing more than 110 days after the adoption of the ordinance
codified in this chapter, the date of such adoption being as set forth
below.
(Ord. 638 § 1, 2020)
This chapter is intended to achieve the following, among other
purposes, and shall be interpreted liberally in order to accomplish
all of its lawful purposes:
(a)
To
impose a retail transactions and use tax to be applied throughout
the entire territory of the City to the fullest extent permitted by
law and 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.
(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 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.
(e)
To
provide transaction and use tax revenue for unrestricted general revenue
purposes, and not for specific purposes. All of the proceeds from
the tax imposed by this chapter shall be placed in the City's general
fund and be available for any legal municipal purposes.
(Ord. 638 § 1, 2020)
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 chapter;
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.
(Ord. 638 § 1, 2020)
For the privilege of selling tangible personal property at retail,
a tax is imposed upon all retailers in the incorporated territory
of the City at the rate of 1% 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 codified
in this chapter.
(Ord. 638 § 1, 2020)
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.
(Ord. 638 § 1, 2020)
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 for storage, use or other
consumption in the territory of the City at the rate of 1% 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. 638 § 1, 2020)
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. 638 § 1, 2020)
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 the City of Atascadero shall be substituted. 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:
(i)
Provide an exemption from the taxes of this chapter 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
(ii)
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.
(1)
"A retailer engaged in business in the District" also includes 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 $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.
(Ord. 638 § 1, 2020)
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. 638 § 1, 2020)
(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:
(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 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:
(i)
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
(ii)
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 subsections (b)(ii)(3) and (b)(ii) (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.
(5)
For the purposes of subsections (c)(3) and (c)(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 subsection (c)(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" also includes 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. 638 § 1, 2020)
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 may amend
this chapter to comply with applicable law or as may be otherwise
necessary in order to further the chapter's stated purposes.
However, as required by Article XIII C of the California Constitution,
voter approval is required for any amendment that would increase the
rate of any tax levied pursuant to this chapter. The people of the
City of Atascadero affirm that the following actions shall not constitute
an increase of the rate of a tax:
(a)
The
restoration of the rate of the tax to a rate that is no higher than
that set by this chapter, if the City Council has acted to reduce
the rate of the tax;
(b)
An
action that interprets or clarifies the methodology of the tax, or
any definition applicable to the tax, so long as interpretation or
clarification (even if contrary to some prior interpretation or clarification)
is not inconsistent with the language of this chapter; or
(c)
The
collection of the tax imposed by this chapter even if the City had,
for some period of time, failed to collect the tax.
(Ord. 638 § 1, 2020)
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. 638 § 1, 2020)
If any provision of this chapter or its application to any person
or circumstance is determined by a court of competent jurisdiction
to be unlawful, unenforceable or otherwise void, that determination
shall not effect on any other provision of this chapter or the application
of this chapter to any other person or circumstance and, to that end,
the provisions hereof are severable.
(Ord. 638 § 1, 2020)
This chapter relates to the levying and collecting of the City transactions and use taxes and shall take effect 10 days after the election results are declared by the City Council (CA Elections Code Section 9217). The operative date (Section 3-19.020) will be the first day of the first calendar quarter commencing more than 110 days after the adoption of the ordinance codified in this chapter, which will be April 1, 2021.
(Ord. 638 § 1, 2020)
The authority to levy a retail transaction and use tax shall
be in effect until and unless repealed by the voters of the City in
the manner provided by law.
(Ord. 638 § 1, 2020)
The revenue and expenditures of this new transactions and use
tax shall be included in the annual audit of the City's financial
operations by an independent certified public accountant.
(Ord. 638 § 1, 2020)
