Ordinance No. 519ORDINANCE NO, 519
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS
IMPOSING A SALES AND USE TAX TO BE ADMINISTERED BY THE
STATE BOARD OF EQUALIZATION AND PROVIDING PENALTIES FOR
VIOLATIONS°
THE CITY COUNCIL OF THE CITY OF CYPRESS HEREBY DOES ORDAIN AS FOLLOWS
SECTION 1. SHORT TITLE. This ordinance shall be known as the Uniform
Local Sales and Use Tax Ordinance.
SECTION 20 RATE. The rate of sales tax and use tax imposed by this
ordinance shall be one - percent (1 %)a
SECTION 3, OPERATIVE DATE. This ordinance shall be operative on January
1, 1974.
SECTION 4. PURPOSED The City Council hereby declares that 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 adopt a sales and use tax ordinance which complies with the
requirements and limitations contained in Part 105 of Division 2 of the
Revenue and Taxation Code;
(b) 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 105 of Division 2 of the Revenue and
Taxation Code;
(c) To adopt a sales and use tax ordinance which 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 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 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 this ordinance,
SECTION 5. CONTRACT WITH STATE, Prior to the operative date this city shall
contract with the State Board of Equalization to perform all functions incident to the
administration and operation of this sales and use tax ordinance; provide, that if
this 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 rather than the first day of the first calendar quarter following
the adoption of this ordinance.
SECTION 6. SALES TAX. For the privilege of selling tangible personal property
at retail a tax is hereby imposed upon all retailers in the city at the rate stated
in Section 2 of the gross receipts of the retailer from the sale of all tangible
personal property sold in retail in this city on and after the operative date.
SECTION 7. PLACE OF SALE. For the purposes of this ordinance, all retail saleE
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 destinatio.,
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.
SECTION 8, USE TAX, An excise tax is hereby imposed on the storage, use or
other consumption in this city of tangible personal property purchased from any
retailer on and after the operative date for storage, use or other consumption in
this city at the rate stated in Section 2 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°
SECTION 9, ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided
in this ordinance and except insofar as they are inconsistent with the provisions of
Part 105 of Division 2 of the Revenue and Taxation Code, all of the provisions of
Part 1 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°
SECTION 10, LIMITATIONS ON ADOPTION OF STATE LAW, In adopting the provisions
of Part 1 of Division 2 of the Revenue and Taxation Code, wherever the State of
California is named or referred to as the taxing agency, the name of this City
shall be substituted therefore The substitution, however, shall not be made when
the word "State" is used as part of the title of the State Controller, the State
Treasurer, the State Board of Control, the State Board of Equalization, the State
Treasury, or the Constitution of the State of California; the substitution shall
not be made 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 ordinance; the substitution shall not be made in those sections,
including, but not necessarily limited for 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 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 to 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 provisions of that Code; the substitution shall not be
made in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737,
6797 or 6828 of the Revenue and Taxation Code; and the substitution shall not be
made for the word "State" in the phrase "retailer engaged in business in this State"
in Section 6203 or in the definition of that phrase in Section 6203.
SECTION 11. PERMIT NOT REQUIRED° If a seller's permit has been issued to a
retailer under Section 6067 of the Revenue and Taxation Code, an additional seller's
permit shall not be required by this ordinance.
SECTION 12, EXCLUSIONS AND EXEMPTIONS° There shall be excluded from the measure
of tax:
(a) The amount of any sales or use tax imposed by the State of California
upon a retailer or consumer°
(b) The storage, use or other consumption of tangible personal property, the
gross receipts from the sale of which has 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
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city in this State,
(c) The gross receipts from sales to and the storage, use Or other
consumption of property purchased by, operators of common carriers and
waterborne vessels to be used or consumed in the operation of such common
carriers or waterborne vessels principally outside this city°
(d) The storage or use of tangible personal property in the transportation
or transmission of persons, property or communications, or in the generation,
transmission or distribution of electricity or in the manufacture, transmiss "
or distribution of gas in intrastate, interstate of foreign commerce by publ
utilities which are regulated by the Public Utilities Commission of the Stat
of California°
SECTION 13, EXCLUSIONS AND EXEMPTIONS,
(a) The amount subject to tax shall not include any sales or use tax
imposed by the State of California upon a retailer or consumer.
(b) The storage, use or other consumption of tangible personal property, the
gross receipts from the sale of which have been subject to 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 shall be exempt from the tax due under this ordinance,
(c) There are exempted from the computation of the amount of the sales tax
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,
(d) 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
of such vessels for commercial purposes is exempted from the use tax,
(e) There are exempted from the computation of the amount of the sales tax
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,
(f) 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 air-
craft 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 is
exempted from the use tax,
SECTION 14, APPLICATION OF PROVISIONS RELATING TO EXCLUSIONS AND EXEMPTIONS,
(a) Section 13 of this ordinance shall become operative on January 1st of
the year following the year in which the State Board of Equalization adopts
an assessment ratio for state - assessed property which is identical to the
ratio which is required for local assessments by Section 401 of the Revenue
and Taxation Code, at which time Section 12 of this ordinance shall become
inoperative,
(b) In the event that Section 13 of this ordinance becomes operative and the
State Board of Equalization subsequently adopts an assessment ratio for the
state - assessed property which is higher than the ratio which is required for
local assessments by Section 401 of the Revenue and Taxation Code, Section
12 of this ordinance shall become operative on the first day of the month
next following the month in which such higher ratio is adopted, at which time
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Section 13 of this ordinance shall be inoperative until the first day of
the month following the month in which the Board again adopts an assessment
ratio for state- assessed property which is identical to the ratio required
for local assessments by Section 401 of the Revenue and Taxation Code, at
which time Section 13 shall again become operative and Section 12 shall become
inoperative.
AMENDMENTS. All subsequent amendments of the Revenue and Taxation
to the sales and use tax and which are not inconsistent with Part
of the Revenue and Taxation Code shall automatically become a part
SECTION 15.
Code which relate
1.5 of Division 2
of this ordinance
SECTION 16. 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 of this
City, to prevent or enjoin the collection under this ordinance, 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.
SECTION 17. PENALTIES. Any .person violating any of the provisions of this
ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall
be punishable by a fine of not more than $500.00 or by imprisonment for a period of
not more than six months, or by both such fine and imprisonment.
SECTION 18. SEVERABILITY. If any provision of this ordinance or
thereof to any person or circumstance is held invalid, the remainder of
and the application of such provision to other persons or circumstances
affected thereby.
SECTION 19. REPEALS. Ordinance No.8, as amended by Ordinances Noll and 110, is
hereby repealed; provided, however, that said ordinance, as amended, shall remain
applicable for the purposes of the administration of said ordinance and the imposition
of and., the collection of tax with respect to the sales of, and the storage, use or
other consumption of tangible personal property prior to January 1, 1974, the making
of refunds, effecting credits, the disposition of monies collected, and for the
commencement or continuance of any action or proceeding under said ordinance.
PASSED AND ADOPTED by the City Council of the City of Cypress at a regular
meeting held on the 9th day of October, 1973.
the application
the ordinance
shall not be
ATTEST:
CITY CLERK OF THE CITY OF CYPRESS
�Zzo
MAYOR 0
A
E CITY OF CYPRESS
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
I, DARRELL ESSEX, City Clerk of the City of Cypress, DO HEREBY CERTIFY that
the foregoing Ordinance was duly adopted at a regular meeting of the said City
Council held on the 9th day of October, 1973; by the following roll call vote:
AYES: 3
NOES: 0
ABSENT: 2
COUNCILMEN:
COUNCILMEN:
COUNCILMEN:
Frankiewich, Kanel and Roberts
None
Harvey and Lacayo
CITY CLERK OF THE CITY OF CYPRESS