Chapter 3.28 SALES AND USE TAX

The ordinance codified in this chapter shall be known as the uniform local sales and use tax ordinance.

(Ord. 779 § 3, 1990)

The city council declares that the ordinance codified in this chapter is adopted to achieve the following, among other purposes, and directs that the provisions of this chapter be interpreted in order to accomplish those purposes:

To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California;

To adopt a sales and use tax ordinance which 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 1.5 of Division 1 of the said Revenue and Taxation Code;

To adopt a sales and use tax ordinance which imposes a one percent 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 practical 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;

To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible consistent with the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code, minimize the cost of collecting city sales and use taxes and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions of the ordinance codified in this chapter.

(Ord. 779 § 3, 1990)

§ 3.28.030 Sales tax—Levied.

For the privilege of selling tangible personal property at retail a tax is imposed upon all retailers in the city at the rate of one percent of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the city.

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 Board of Equalization.

Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of the said Code, as amended and in force and effect on April 1, 1990, applicable to sales taxes are adopted and made a part of this section as though fully set forth in this section.

Wherever, and to the extent that, in Part 1 of Division 2 of the said Revenue and Taxation Code the State of California is named or referred to as the taxing agency, the name of the city shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of the city for the word "State" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization or the name of the State Treasury, or of the Constitution of the State of California; nor shall the name of the city be substituted for that of the state in any section when the result of that substitution would require action to be taken by or against the city or any agency thereof, rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this section; and neither shall the substitution be deemed to have been made 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 provide an exemption from this tax with respect to certain gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the state under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the state under the said provisions of that Code; and, in addition, the name of the city shall not be substituted for that of the state in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 of the said Revenue and Taxation Code as adopted.

If a seller's permit has been issued to a retailer under Section 6067 of the said Revenue and Taxation Code, an additional seller's permit shall not be required by reason of this section.

There shall be excluded from the gross receipts by which the tax is measured:

The amount of any sales or use tax imposed by the State of California upon a retailer or consumer;

The gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city 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.

(Ord. 779 § 3, 1990)

§ 3.28.040 Sales tax—Alternative exclusions and exceptions.

There shall be excluded from the gross receipts by which the tax is measured:

The amount of any sales or use tax imposed by the State of California upon a retailer or consumer;

The gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes;

(Ord. 779 § 3, 1990)

§ 3.28.050 Sales tax—Operability.

Section 3.28.030F shall be operative January 1, 1984.

Section 3.28.040A of this chapter shall be operative on the operative date of any act of the Legislature of the State of California which amends or repeals and reenacts Section 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language as that existing in subdivisions (i)(7) and (i)(8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

(Ord. 779 § 3, 1990)

§ 3.28.060 Use tax—Levied.

An excise tax is imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on or after the operative date of the ordinance codified in this chapter, for storage, use or other consumption in the city 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.

Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of said Code, as amended and in force and effect on April 1, 1990, applicable to use taxes are adopted and made a part of this section as though fully set forth in this section.

Wherever, and to the extent that, in Part 1 of Division 2 of the said Revenue and Taxation Code the state of California is named or referred to as the taxing agency, the name of the city shall be substituted therefor. Nothing in this subsection shall be deemed to require the substitution of the name of the city for the word "state" when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization or the name of the State Treasury, or of the Constitution of the state of California; nor shall the name of the city be substituted for that of the state in any section when the result of that substitution would require action to be taken by or against the city or any agency thereof, rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this section; and neither shall the substitution be deemed to have been made 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 provide an exemption from this tax with respect to certain storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such storage, use or other consumption remains subject to tax by the state under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code, or to impose this tax with respect to certain storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provisions of that code; and in addition, the name of the city shall not be substituted for that of the state in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 of the said Revenue and Taxation Code as adopted, and the name of the city shall not be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 nor in the definition of that phrase in Section 6203.

There shall be exempt from the tax due under this section:

The amount of any sales or use tax imposed by the state of California upon a retailer or consumer;

The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this state;

In addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code, the storage, use or other consumption of tangible personal property 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.

(Ord. 779 § 3, 1990)

§ 3.28.070 Use tax—Alternative exclusive exemptions.

There shall be exempt from the tax due under this section:

The amount of any sales or use tax imposed by the state of California upon a retailer or consumer;

The storage, use or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes;

(Ord. 779 § 3, 1990)

§ 3.28.080 Use tax—Operability.

Section 3.28.060 shall be operative January 1, 1984.

Section 3.28.070(A) of this chapter shall be operative on the operative date of any act of the Legislature of the state of California which amends or repeals and reenacts Section 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language as that existing in subdivisions (i)(7) and (i)(8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

(Ord. 779 § 3, 1990)

§ 3.28.090 Amendments.

All amendments of the said Revenue and Taxation Code enacted subsequent to the effective date of the ordinance codified in this chapter[1]which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of said Revenue and Taxation Code shall automatically become a part of this chapter.

(Ord. 779 § 3, 1990)

[1]

Editor's note: The effective date of the ordinance codified in this chapter is July 2, 1990.

§ 3.28.100 City sales and use tax—Credit for taxes due to redevelopment agency.

Any person subject to a sales and use tax under the city's ordinance shall be entitled to credit against the payment of taxes due under that ordinance the amount of sales and use taxes due to the Pico Rivera redevelopment agency pursuant to Section 7202.6 of the Revenue and Taxation Code.

The maximum rate of sales and use taxes payable pursuant to Pico Rivera redevelopment agency ("agency") Ordinance No. 1-90, as amended by agency Ordinance No. 4-12 adopted on January 24, 2012 (collectively, the "agency ordinances"), and the maximum amount of the credit any person is entitled to receive hereunder shall be as specified in the agency ordinances, as the same are implemented from fiscal year to fiscal year for as long as the agency ordinances remain in effect, as specified in Sections 2-4 thereof. The city manager or designee shall cooperate with the agency (or, in the event the agency is dissolved, with the successor agency to the agency) and take all actions required to comply with the provisions of this chapter and the agency ordinances, including without limitation notifying the California State Board of Equalization of the applicable rate to use for the city and agency (or successor agency) for the next succeeding fiscal year and entering into whatever new or amended agreement with the State Board of Equalization as may be necessary to enable the State Board of Equalization to perform its duties with respect to the transfer of sales and use taxes from the city to the agency.

To the extent that, notwithstanding the adoption and implementation of the ordinance codified in this chapter, the California State Board of Equalization in any fiscal year pays or remits sales and use taxes to the agency (or, in the event the agency is dissolved, to the successor agency to the agency) in excess of the lesser of: (1) the sum of one million sixty-five thousand dollars; or (2) the amount needed by the agency (or such successor agency) to timely pay and discharge the thencurrent debt service requirements under the agency existing obligations for payment/use of sales and use taxes referred to in the agency ordinances, the agency (or such successor agency) shall be deemed to hold such excess sums in trust for the city and the city manager or successor shall promptly take such actions as are necessary to cause the agency (or such successor agency) to remit such excess sums to the city.

This section shall terminate and shall be of no further force or effect upon the payment in full of all of the agency existing obligations for payment/use of sales and use taxes.

(Ord. 779 § 3, 1990; Ord. 1071 § 2, 2012)

§ 3.28.110 Contract for administration.

The city shall contract prior to the effective date of the city sales and use tax ordinance with the State Board of Equalization to perform all functions incident to the administration or operation of the sales and use tax ordinance of the city which shall continue in effect so long as the county within which the city is located has an operative sales and use tax ordinance enacted pursuant to this part.

(Ord. 779 § 3, 1990)

§ 3.28.120 Enjoining collection forbidden.

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 this city, or against any officer of the state or this city, to prevent or enjoin the collection under this chapter, or Part 1.5 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

(Ord. 779 § 3, 1990)

§ 3.28.130 Violation—Penalty.

Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars or by imprisonment for a period of not more than six months in the city jail, or by both such fine and imprisonment.

(Ord. 779 § 3, 1990)