This chapter will be known as the "Crescent City Transactions
and Use Tax Ordinance" and referred to herein as "this ordinance."
(Ord. 824 § 1, 2020)
"Operative date" means the first day of the first calendar quarter
commencing more than one hundred ten days after the adoption of this
ordinance, the date of such adoption being as set forth below.
(Ord. 824 § 1, 2020)
This ordinance 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 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.
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 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 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. 824 § 1, 2020)
Prior to the operative date, the city must contract with the
California Department of Tax and Fee Administration to perform all
functions incident to the administration and operation of this transactions
and use tax ordinance; provided, that if the city has not contracted
with the California Department of Tax and Fee Administration prior
to the operative date, it must nevertheless so contract and in such
a case the operative date will be the first day of the first calendar
quarter following the execution of such a contract.
(Ord. 824 § 1, 2020)
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 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 ordinance.
(Ord. 824 § 1, 2020)
For the purposes of this ordinance, 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-ofstate 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 will be determined under rules and
regulations to be prescribed and adopted by the California Department
of Tax and Fee Administration.
(Ord. 824 § 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 of this ordinance for
storage, use or other consumption in said territory at the rate 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. 824 § 1, 2020)
Except as otherwise provided in this ordinance 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 ordinance
as though fully set forth herein.
(Ord. 824 § 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 this city is to be substituted therefor. However, the
substitution will 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 ordinance.
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.
B. The
word "city" is to 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 five hundred thousand dollars. 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. 824 § 1, 2020)
If a seller's permit has been issued to a retailer under Section
6067 of the
Revenue and Taxation Code, then an additional transactor's
permit is not required by this ordinance.
(Ord. 824 § 1, 2020)
All amendments subsequent to the effective date of this ordinance
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, will automatically become a part of this ordinance;
provided, however, that no such amendment will operate so as to affect
the rate of tax imposed by this ordinance.
(Ord. 824 § 1, 2020)
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 ordinance, 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. 824 § 1, 2020)
A seven-member oversight committee will be created and meet
annually to review and publicly report on the expenditure of revenues
generated by the tax imposed by this ordinance. The committee will
include the city manager or designee, the city finance director or
designee, and five residents of the city. Resident members of the
committee will be appointed to two-year terms by the mayor and confirmed
by the city council. The city manager and city finance director will
serve as non-voting members of the committee.
(Ord. 824 § 1, 2020)
The proceeds of the tax imposed by this ordinance, as well as
the expenditures thereof, will be audited annually by an independent
accounting firm.
(Ord. 824 § 1, 2020)
If any provision of this ordinance or the application thereof
to any person or circumstance is held invalid by a court of competent
jurisdiction, then the remainder of the ordinance and the application
of such provision to other persons or circumstances will not be affected
thereby.
(Ord. 824 § 1, 2020)
This ordinance relates to the levying and collecting of the
city transactions and use tax and will take effect immediately upon
its approval by the voters.
(Ord. 824 § 1, 2020)
The authority to levy the tax imposed by this ordinance will
expire upon repeal by the voters of the city of Crescent City.
(Ord. 824 § 1, 2020)