This chapter is entitled the "Monterey Park transactions and
use tax." The term "city," as used within this chapter, is the city
of Monterey Park. This chapter is applicable in the incorporated territory
of the city.
(Ord. 2225 § 1, 2022)
"Operative date" means the first day of the first calendar quarter
commencing more than one hundred ten days after the adoption of the
ordinance codified in this chapter, the date of such adoption being
as set forth below.
(Ord. 2225 § 1, 2022)
This chapter is adopted to achieve the following, among other
purposes, and directs that its provisions be interpreted to accomplish
those purposes:
(a)
To
impose a retail transaction 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 of
the Revenue and Taxation Code which authorizes the city to adopt this
chapter which becomes operative if a majority of the electors voting
on the ballot measure approving the chapter vote to approve the imposition
of the tax at an election called for that purpose.
(b)
To
adopt retail transactions and use tax regulations 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 retail transactions and use tax regulations 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.
(d)
To
adopt a retail transaction 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. 2225 § 1, 2022)
(a)
The
Monterey Park transactions and use tax is imposed to provide funds
for the city to pay for general municipal services.
(b)
The
city council may provide for collection of the general tax in the
same manner and subject to the same penalties as, or with, other charges
and taxes fixed and collected by the city, or by the county of Los
Angeles on behalf of the city. lf the general tax is collected by
the county on behalf of the city, the county may deduct its reasonable
costs incurred in such service.
(c)
The
city's cost of enforcing and administering this chapter, including
refunds, can be paid from the general tax revenue.
(Ord. 2225 § 1, 2022)
Before the operative date, the city must contract with the State
Board of Equalization to perform all functions incident to the administration
and operation of this chapter; provided, that if the city has not
contracted with the State Board of Equalization before the operative
date, it must nevertheless so contract and in such a case the operative
date is the first day of the first calendar quarter following the
execution of such a contract.
(Ord. 2225 § 1, 2022)
For the privilege of selling tangible personal property at retail,
a transaction tax is hereby imposed upon all retailers in the incorporated
territory of the city at the rate of three quarters 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. 2225 § 1, 2022)
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 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 is determined under rules and regulations
to be prescribed and adopted by the State Board of Equalization.
(Ord. 2225 § 1, 2022)
A use tax is 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 three quarters
of one percent of the sales price of the property. The sales price
includes delivery charges when such charges are subject to state sales
or use tax regardless of the place to which delivery is made.
(Ord. 2225 § 1, 2022)
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 adopted and made a part of this chapter as though
fully set forth.
(Ord. 2225 § 1, 2022)
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 will be substituted. However, the substitution
is not 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
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 Section 6701, 6702 (except in the last sentence thereof), 6711,
6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
(b)
The
word "city" is 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 of the Revenue and Taxation Code.
(Ord. 2225 § 1, 2022)
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 is not required by this chapter.
(Ord. 2225 § 1, 2022)
(a)
There
is 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 BradleyBurns
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 or her 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 is 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 before 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 before the
operative date of this chapter.
(5)
For the purposes of paragraphs (3) and (4) of this subsection, the
sale or lease of tangible personal property is 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 before 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
before the operative date of this chapter.
(5)
For the purposes of paragraphs (3) and (4) of this subsection, storage,
use, or other consumption, or possession of, or exercise of any right
or power over, tangible personal property is 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 paragraph (7), a retailer engaged in business
in the city is not 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, without limitation, 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
is 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. 2225 § 1, 2022)
All amendments subsequent to the effective date of the ordinance
codified in 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, automatically become a part of this
chapter; provided, however, that no such amendment operates so as
to affect the rate of tax imposed by this chapter.
(Ord. 2225 § 1, 2022)
No injunction or writ of mandate or other legal or equitable
process may 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. 2225 § 1, 2022)
Nothing in this chapter requires the city council to collect
a tax; the city council may suspend or reduce tax rates imposed by
this chapter by resolution after a public hearing.
(Ord. 2225 § 1, 2022)
Except for amendments that would increase the tax rate, impose
the tax on transactions and uses not previously subject to the tax,
or be inconsistent with the purposes of this chapter, the city council
may exercise all applicable powers set forth in the Government Code,
including, without limitation, amending this chapter by ordinance
upon three affirmative votes by its members. It may, in addition,
adopt by ordinance or resolution such additional regulations that
may be necessary to implement the purposes of this chapter.
(Ord. 2225 § 1, 2022)
This chapter will continue in effect unless repealed by voters
at a duly called regular or special election.
(Ord. 2225 § 1, 2022)
