This Article shall be known as the City of Inglewood Vital City
Services Transactions and Use Tax Ordinance. The City of Inglewood
hereinafter shall be called "City." This Article shall be applicable
in the incorporated territory of the City.
(Ord. 06-14 8-1-06)
The Operative Date of this Article shall be the first day of
the first calendar quarter commencing more than one hundred ten days
after the adoption of the ordinance codified in this Article by the
voters, the date of such adoption being as set forth below.
(Ord. 06-14 8-1-06)
The ordinance codified in this Article 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 enhance
the City of Inglewood's ability to provide vital City services to
the residents of Inglewood, such as public safety, youth programs,
crime reduction programs and others;
B.
To ensure
that the City has the financial means to provide for the well-being
and security of its residents and businesses as the City and its economic
base grows;
C.
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;
D.
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;
E.
To adopt
a retail transactions and use tax ordinance that imposes a tax and
provides a measure therefor 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;
F.
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.
(Ord. 06-14 8-1-06)
Prior to the operative date, 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 shall not have 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. 06-14 8-1-06)
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 0.5% 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.
The tax imposed herein is in addition to any other transactions tax
imposed by the City, the County of Los Angeles, or the State of California.
(Ord. 06-14 8-1-06)
For the purposes of this Article, 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 State Board of Equalization.
(Ord. 06-14 8-1-06)
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
0.5% 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. The tax imposed
herein is in addition to any other transactions tax imposed by the
City, the County of Los Angeles, or the State of California.
(Ord. 06-14 8-1-06)
Except as otherwise provided in this Article 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 Article as
though fully set forth herein.
(Ord. 06-14 8-1-06)
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 Control, 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 Article;
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. 06-14 8-1-06)
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 Article.
(Ord. 06-14 8-1-06)
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 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 ordinance;
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 ordinance;
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 ordinance, 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 state-administered 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 ordinance;
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 ordinance;
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 Article 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. 06-14 8-1-06)
All amendments subsequent to the effective date of the ordinance
codified in this Article 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 Article, provided however, that no such amendment shall operate
so as to affect the rate of tax imposed by this Article.
(Ord. 06-14 8-1-06)
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 Article,
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. 06-14 8-1-06)
The City Administrator or designee shall create and maintain
a separate fund in the City into which the proceeds from this tax
received from the State Board of Equalization shall be deposited.
The City Administrator shall, at least annually at the conclusion
of the City's fiscal year, file a written report with the City Council
detailing the amount of funds received, the use of the funds, and
any funds remaining in the account. The separate fund shall be audited
by an independent auditor pursuant to the City's normal timing and
procedures for independent audits of City funds.
(Ord. 06-14 8-1-06)
If any provision of this Article or the application thereof
to any person or circumstance is held invalid, the remainder of the
Article and the application of such provision to other persons or
circumstances shall not be affected thereby.
(Ord. 06-14 8-1-06)
This Article relates to the levying and collecting of the City
transactions and use taxes and shall take effect immediately upon
its adoption by a majority vote of the qualified electors of the City
voting in an election on the subject.
(Ord. 06-14 8-1-06)
