The ordinance codified in this chapter shall be known as the
"City of Lawndale Vital City Services Transactions and Use Tax Ordinance."
The city of Lawndale hereinafter shall be called "city." This chapter
shall be applicable in the incorporated territory of the city.
(Ord. 1151-18 § 1)
"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. 1151-18 § 1)
This 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 the tax ordinance codified herein, 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 chapter 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 chapter that imposes a tax and provides
a measure therefor 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 chapter 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. 1151-18 § 1)
Prior to the operative date of the ordinance codified in this
chapter, 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 said 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. 1151-18 § 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 three quarters of a cent per dollar (.75%)
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. 1151-18 § 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 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. 1151-18 § 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 the ordinance codified
in this chapter for storage, use or other consumption in said territory
at the rate of three quarters of a cent per dollar (.75%) 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. 1151-18 § 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. 1151-18 § 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 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.
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. 1151-18 § 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. 1151-18 § 1)
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 the ordinance codified in 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 the ordinance codified in this chapter.
5.
For
the purposes of subsections (B)(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 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
the ordinance codified in 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 the ordinance codified in this chapter.
5.
For
the purposes of subsections (C)(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 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" 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. 1151-18 § 1)
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, 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 the ordinance codified
herein.
(Ord. 1151-18 § 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. 1151-18 § 1)
An independent citizens' oversight committee may be appointed
by the city council for the purposes of reviewing the expenditures
of revenues generated by the tax imposed by this chapter, and such
committee shall make the results of such review publicly available.
Such committee shall meet and be subject to all provisions of the
Ralph M. Brown Act, Government Code Sections 54950 et seq.
(Ord. 1151-18 § 1)
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.
(Ord. 1151-18 § 1)
This chapter levying the tax described herein shall be effective
ten days after the date on which the city council has declared that
the voters of the city of Lawndale have approved the ordinance codified
herein by a vote of no less than a majority of the votes cast by the
electors voting on the tax measure set forth in this chapter at that
general municipal election to be held on Tuesday, November 6, 2018.
(Ord. 1151-18 § 1)
The authority to levy the tax imposed by this chapter shall
not expire unless terminated by lawful vote of the electorate or as
required or authorized by law.
(Ord. 1151-18 § 1)
