HomeMy WebLinkAbout38.55 ORDINANCE NO. 38.55
AN ORDInaNCE OF THE ~ITY OF SARATOGA AMENDING
ARTICLE 2 OF CHAPTER .14 OF THE SARATOGA CITY
CODE RELATING TO UNIFORM LOCAL SALES AND USE TAXES
The City CoUncil of tb~ City of Saratoga do~s hereby
ordain as follows:
Section l: SubparAgraph (3) 6fp~ragraph~ (b) of
..... Section 14-7 of the Saratoga City Code.
is hereby amended to read as follows:
(3) 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.
Section 2: Subparagraph (4.5) is hereby added to
paragraph (b) Io~ Section 14-7 of the
Saratoga City Code, to read as follows:
(4.5) There shall be excluded from the gross
receipts by which the tax is measured:
(1) The amount of any sales or use tax
imposed by the State of California upon a re-
tailer or consumer.
(11) The gross receipts from the sale of
tangible personal property to operators of water-
borne vessels to be used or consumed principally
outside the city in which the sale is made and
d
directly an exclusivel in the carriage of per-
sons or property in suck vessels for commercial
purposes.
(111) The gr9ss receipts from the sale of
tangible personal property to operators of air-
craft to be used or consumed principally outside
h
the'city in which t e 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.
Section 3: Subparagraph (3.5) is hereby added to
paragraph (b) of Section ~4-8 of the
Saratoga City Code, to read as follows:
(3.5) There shall.be exempt from the tax due under
this section:
(1) The amount of any sales or use tax imposed
by the State of California upon a retailer or
consumer.
(11) 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 city in this
state.
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(111) The stora~,-hse'Or other consumption
of tangible personal property. purchased by
operators of waterborne vessels and used or
consumed by such operators directly and
~xclusively in the carriage of persons or property
in such vessels for conanercial purposes.
'(1V) In addition t~' the exemptions prOVided
in Sections 6366 and 6366.1 of the Revenue and
~" ' Taxation Code, the storage, use, or other.don~
sumption of tangibl~ personal property purchased
by operators of aircraft and used' or consumedby
' such operators directly and exclusively in ~he
use of such aircraft as common carriers Of persons
....... or property fo~.hire!Or compensatid~ under ~
certificate of public convenience and necessity
issued pursuant to. the laws of this state, the
United States, or any foreign government.
Section 4: · Section 14-9.1 is her~by~added'to the'
. . Saratoga City Code,.to read as.foll'OwS::
~ectlon 14-9.1. APPLICATIO~ OF ADDITIONAL PROVISION
RE EXCLUSIONS AND EXEMPTIONS.
(a) SubSectiOd4 (b) (4.'.5) olf Article 14-7 and
'Subsection 5 (b) (3.5)'of Article 14~8 Of this code.
shall become dperative on January lst-of the y~ar
following the year in which the State Board of Equalization
adepts 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 Subsection 4'.(b) (~4) Of. Article-
14-7 and Subsection 5 (b) (3) of Article 14-8 of this
code shall become inoperative. ..
(b) In the event, th~e.Subsection 4"(b) (4..5) of
.I Article 14-7 and Subs~ction 5 (b) (3.~5) of<Ar'ticl'e 14-8~
of this code become operative'and the State Board of
EqUalization ~ubsequently adopts an assessment ratio for
state-assesSed property which is hi'gher than the ratio
which is requiredfOr'local a~sessments-by ~ectiofi 401
of the Reve~ue~and~Taxatio~ Code, SubSection 4 (b)'(4)
of Article 14-7 and Subeection 5 (b) (3) of Article 14-8
of this code shall become operative on the first day of
the month following the month in .which such higher ratio is
adopted, at which time Subsection '4 (b) (4.5) of Article
14-7 and Subsection 5 (b) (3.5) of Article 14-8 o~'this code
shall become inoperative.until, the fiXst 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 requi~ed for local assessments by
Section 401 of. the Revenue and Taxation Code, at which time
Subsection 4 (b) (4.5) of Article 14-7 and Subsection 5 (b)
(3.5) of Article 14-8 shall.agdin become'operative and
Subsection 4 (b)~(4) of Article 14-7 and Subsection 5
(3) of ArtiCle 14-8_shall beC'ome inoperative..
Section 5: This ordinance shall be operative and in
full force and e'ffect on and after January
1, 1974~
Section 6: If any section, sUbsectiOn, sentence, clause.
or phrase of this ordinance is for any reason
held by a court of competent jurisdiction to be .invalid, such
decision shall not affect the validity of the remaining-portions
of this ordinance. The City Council of the City of Saratoga hereby
declares that it would have passed this ordinance and each section,
subsection, sentence, clause and phrase thereof, irrespective of
the fact that any one or more sections, subsections, sentences,
clauses or phrases be held invalid or unconstit~tlona~.
The above and foregoing ordinance was. ~egularly introduced
and after the waiting time required by law was thereafter passed
and adopted by the City Gouncil of the Cite:of Saratoga ~t a_reg~lar
meeting of said CoUncil. held on the -i~tjd~y of - October. .,-, ~973,
by the following V~te:-
AYES: Councilmen Smith, Dwyer, Bridges, ,Di~idon and Kr~hs.
NOES: Non~ ' - ,
ABSENT: None ~~.~
The al)r~ve and foregoing is a true and correct
dopy of Ordins!nce :~,c,= ~'.F' wh ch has been
published acce~'ding ~o law.
Deputy City Clerk ~ Dat~
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0
AGREEMENT FOR STATE ADMINISTRATION OF LOCAL SALES AND USE TAXES
To carry out Part 1.5 of Division 2 of the Revenue and Taxation Code and the sales and
use tax ordinance of the City hereinabove designated, hereinafter called the City, copy of which
ordinance is attached hereto, the City and the State Board of Equalization, hereinafter called
the Boar~l, do agree as follows:
ARTICLE 1
DEFINITIONS
U nl e ss the context requires otherwise, wherever the following terms appear in this
Agreement they shall be interpreted to mean the followi, ng:
1. "Local Taxes" shall mean the sales and use taxes, penal'ti~s, and interest imposed
by the City under an ordinance which complies with Part 1.5, Division 2, of the Revenue and
Taxation Code.
2. "Conforming Taxing Jurisdiction" shall mean any count),, city, or city and county of
this State which has adopted a sales and use tax ordinance of the kind described in Part 1.5 of
· Division 2 of the Revenue and Taxation Code and which has entered into a contract with the
State Board of Equalization to perform all functions incident to the administration and operation
of the ordinance.
3- "City Ordinance" shall mean the Uniform City Sales'and Use Tax Ordinance attached
hereto, as amended frgm time to time.
ARTICLE I1
ADMINISTRATION AND COLLECTION OF LOCAL TAXES
A. Administration. The Board and the City agree that the Board shall perform ex-
clusively all functions incident to the administration and operation of the City ordinance.
B. Other applicable laws. The City agrees that all provisions of law applicable to the
administration and operation of the State Sales and Use Tax Law shall be applicable to the
administration and operation of the City ordinance and that money collected pursuant to the City
ordinance may be deposited in the State Treasury to the credit of the Retail Sales Tax Fund and
may be drawn from that Fund for the purpose of making refunds, for the purpose of compensating
' and reimbursing the Board pursuant to Article IV of this Agreement and for the purpose of trans-
mitting to the City the amount to which the City is entitled.
C. Transmittal of money. Except as otherwise provided herein, all local taxes collected
under the provisions of the City ordinance shall be transmitted to the City periodicall)' as
promptly as feasible. Such transmittals shall be made at least ty,'ice in each calendar quarter.
Transmittals may be made by mail or by deposit to the account of the City in a bank in Sacra-
mento designated by the City. A statement shall be furnished indicating the amount withheld
pursuant to Article IV of this agreement.
D. Rules. The Board shall prescribe and adopt such rules and regulations as in its
judgment are necessary or desirable for the administration and operation of the City ordinance
and the distribution of the local taxes collected thereunder.
BT-527 REV. 4 (B-73)
Preference. Unless the payor otherwise and excep't as
in this Agreement, the Board shall give no preference in applying money received for sales and
use taxes owed by a taxpayer but shall apply all monies collected to the satisfaction of the
claims of the State and the claims of the City as their interests appear.
Ft. Security. The Board agrees that any security which it hereafter requires to be fur-
hisbed ,under the State Sales and Use Tax Law will be upon such terms that it also will be
availabl~ for the payment of the claims of the City for local taxes owing to it as its interest
appears.! The Board shall not be required to change the terms of any security now held by it and
the City 'shall not participate in any security now held by the Board.
G. Names of sellers. The Board agrees to furnish the names, addresses, account num-
bers, and the business classification codes of all sellers holding sellers' permits within the
City.
H. Records of the Board. When requested by resolution of the City Council of the City,
the Board shall permit any duly authorized officer or employee of the City to examine the sales
and use tax records of the Board pertaining to sales and use taxes collected for the City by the
Board.pursuant to this Agreement. Information obtained by the City from the examination of the
Board's records shall be used by the City only for purposes related to the collection of local
sales and use taxes by the Board pursuant to this Agreement.
1. City tax rate. The City agrees that any change in the rate of its conforming local
sales and use tax will be made effective at the beginning of a calendar quarter and that it will
give the Board at least two months' notice thereof and that it will also give notice to the Board
of Supervisors of the County in which the City lies.
J. Annexation. The City agrees that the Board shall not be required to give effect to an
annexation, for the purp.ose of collecting and distributing'city sales and use taxes, earlier than
the first day of the calendar quarter which commences 'not less than two months after notice to
the Board. The notice shall include two maps of the annexed area together with the address
of the property nearest to the extended city boundary on every street crossing that boundary.
ARTICLE III
ALLOCATION OF TAX
A. Deficiency determination. All local taxes collected as a result of determinations'or
billings made by the Board, and all amounts refunded or credited may be distributed or charged
to the respective conforming taxing jurisdictions in the same ratio as the taxpayer's self-
declared local tax for the period for which the determination, billing, refund, or credit applies.
B. Allocation. When the local tax is collected from or refunded or credited to the
following:
(1) Retai!ers having traveling sellers' permits or certificates of authority to collect
use tax issued by the Board;
(2) Persons regarded by the Board as retailers pursuant to Section 6015 of the Reve-
nue and Taxation Code;
(3)Persons for whom no continuing account number was active at the date of pay-
ment; or
· ' (4) Other retailers or purchasers having no permanent place of business within the
State as determined by the Board;
BT-527 REV. 4 (8-73) - 2 -
local tax is collected by wa~z from, or when a refund of is
made in conjunction with, refunds of motor vehicle fuel license taxes, or when local tax is col-
lected and direct allocation is impractical, the Board may distribute or charge such local tax to
all conforming taxing jurisdictions in 'the county in which the sale or use 'occurred using the
ratios reflected by the distribution of taxes collected from all other taxpayers in that county.
To the extent that this cannot be done in a manner consistent with the 'economic and efficient
· performance of the duties of the Board under the Revenue and Taxation Code and the provisions
of this Agreement, the Board may distribute or charge such local tax to all conforming taxing
jurisdictions of this State using the r~tios reflected by the distribution of taxes collected from
all other taxpayers in the State· In making allocations under this paragraph county tax imposed
at a rate in excess of I percent shall be excluded.
C. Vehicles, Vessels, and Aircraft. For the purposes of allocating local tax with
respect to vehicles required to be registered or identified under the Vehicle Code, and with
respect to vessels and aircraft, the address of the registered. owner appearing upon the applica-
tion for registration or identification may be used by the Board in determining the city of use.
To the extent this cannot be do~e in a manner consistent with the economic and efficient perfor-
mance of the duties of the Board under the Revenue and Taxation Code and this Agreement, the
Board may allocate tax with respect to such vehicles, vessels, and aircraft in the manner pro-
vided in Paragraph B of this Article.
ARTICLE IV
COMPENSATION
The City agrees to pay the Board as the Board;s cost of administering the City ordi-
nances such amount as is provided by law. Such amounts shall be deducted from the taxes
collected by the Board for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first-class United
States Mail. A notification is complete when deposited in the mail. 'Communications and notices
to be sent to the Board shall be addressed to:
State Board of Equalization
P.O. Box 1799
Sacramento, California 95808
Attention: Executive Secretary
Communications and notices to be sent to the City shall be addressed to:
City Clerk
City of Saratoga
13777 Fruitvale Ave.
Saratoga, Calif. 95070
BT-527 REV. 4 (8-73) - 3 -
~ Cit~otedinance, nor on a day other than the first day of a calendar quarter. This Agreement
shall continue until September 30 next following the operative date of the City ordinance, and
shall thereafter be renewed automatically from year to year unless one of the parties gives
~,ritten notice of termination at least two months before the end of the term. The Board may ter-
minate this Agreement in the manner provided by law.
C. This Agreement replaces and supersedes the Agreement dated December 13, 1956,
heretofore entered into by the Board and the City, which prior Agreement is hereby terminated.
STATE BOARD OF EQUALIZATION
By.
CITY OF Saratoga
-~,
I':Z~ (Signatdrd on this lin~)
/
Robert F. Beyer
(Type name here)
City Manager/City Clerk
(Type title here)
BT-527 REV. 4 (8-73) - 4 -