HomeMy Public PortalAbout20-2009 - Adding Chapter 1.5 to Article 6 of the Carson Municipal Code, Thereby Establishing a General Transactions and Use Tax at the Rate of .75%ORDINANCE NO. 20-2009
AN ORDINANCE OF THE PEOPLE OF THE CITY OF CARSON ADDING CHAPTER 1.5 TO
ARTICLE 6 OF THE CARSON MUNICIPAL CODE, THEREBY ESTABLISHING A GENERAL
TRANSACTIONS AND USE TAX AT THE RATE OF .75%
WHEREAS, this measure would establish a general transactions and use tax under a new
Chapter 1.5 of Article 6 of the Carson Municipal Code at the rate of 0.75%; and
WHEREAS, Article XIIIC, Section 2, of the California Constitution provides that any general tax
must be submitted to the electorate and approved by a majority vote of the electorate; and
WHEREAS, Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and
Taxation Code, and Section 7285.9 of the California Revenue and Taxation Code, authorizes a city to
adopt a transactions and use (sales) 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;
and
WHEREAS, by its Resolution No. 20-120 adopted on August 4, 2020, the City Council submitted
this Ordinance to the City's voters at the November 3, 2020, election, approved this Ordinance, pursuant
to Revenue & Taxation Code Section 7285.9, subject to the City's voters' approval, and approved this
Ordinance's submission to the City's voters; and
WHEREAS, this Ordinance imposes a general tax where generated revenues will be deposited in
the City's General Fund; and
WHEREAS, the City Council of the City of Carson is authorized and directed by statute to submit
to the voters this Ordinance, and the City Council therefore wishes to have the voters consider the same
at a General Municipal Election to be held on November 3, 2020; and
WHEREAS, approving this proposed measure requires approval of the majority of voters at
either a general or special municipal election; and
NOW THEREFORE, ON THE BASIS OF THE FORGOING, THE PEOPLE OF THE CITY OF CARSON, AT
THE NOVEMBER 3, 2020, GENERAL MUNICIPAL ELECTION DO HEREBY ORDAIN AS FOLLOWS:
Section 1. Chapter 1.5 (CARSON GENERAL TRANSACTIONS AND USE TAX) is hereby added
to Article 6 of the Carson Municipal Code as follows:
"Chapter 1.5 - Carson General Transactions and Use tax
61501. TITLE. This Ordinance shall be known as the "Carson General
Transactions and Use Tax Ordinance". The City of Carson hereinafter shall be called
"City." This Ordinance shall be applicable in the incorporated territory of the City.
61502. OPERATIVE DATE. "Operative Date" means the first day of the first
calendar quarter commencing more than 110 days after the adoption of this Ordinance,
the date of such adoption being as set forth below.
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61503. PURPOSE. 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:
r- 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 therefore 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.
61504. CONTRACT WITH STATE. Prior to the Operative Date, 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 transactions and use tax
ordinance; provided, that if the City shall not have contracted with the California
Department of Tax and Fee Administration 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.
61505. TRANSACTIONS TAX RATE. 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 (0.75%) of the gross receipts
{ of any retailer from the sale of all tangible personal property sold at retail in said
l • territory on and after the Operative Date of this Ordinance.
61506. PLACE OF SALE. For the purposes of this Ordinance, all retail sales are
consummated at the place of business of the retailer unless the tangible personal
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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.
61507. USE TAX RATE. 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 three quarters of a cent per dollar (0.75%) 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.
61508. 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 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.
61509. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE
TAXES. 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:
I. 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;
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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.
1. "A retailer engaged in business in the District" shall also include
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 ($500,000). 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.
61510. 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 transactor's permit
shall not be required by this Ordinance.
61511. EXEMPTIONS AND EXCLUSIONS.
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
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(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 this Ordinance.
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 this Ordinance.
5. For the purposes of subparagraphs (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 Ordinance, 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 this Ordinance.
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 this Ordinance.
5. For the purposes of subparagraphs (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
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such right is exercised.
6. Except as provided in subparagraph (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 Ordinance 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.
61512. AMENDMENTS. 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, shall automatically become a part of this Ordinance,
provided however, that no such amendment shall operate so as to affect the rate of tax
imposed by this Ordinance.
61513. ABILITY TO LOWER RATE. The tax rate in this Ordinance may only
be increased by a vote of the people of the City of Carson; provided, however, that the
City Council may amend this Ordinance to reduce the amount of the tax authorized
herein or to otherwise implement or advance the purpose and intent of this Ordinance.
61514. 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 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.
61515. ANNUAL AUDIT. The proceeds resulting from the Transactions
and Use Tax established in this Ordinance shall be deposited into the City's General
Fund and become subject to the same independent annual audit requirements as other
General Fund revenues. In addition, by December 31St of each year, the City shall cause
an independent auditor to complete a "Carson General Transactions and Use Tax
Ordinance Report," provided that such report may be combined with the City's
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independent annual audit requirements as described above. Such report shall review
whether the tax revenues collected pursuant to this Ordinance are collected, managed
and expended in accordance with the requirements of this Ordinance.
71' 61516. SEVERABILITY. If any provision of this Ordinance or the application
thereof to any person or circumstance is held invalid, the remainder of the Ordinance
and the application of such provision to other persons or circumstances shall not be
affected thereby.
61517. COUNCIL AUTHORITY TO AMEND. Pursuant to Elections Code
Section 9217, the City Council shall have and retain the right and authority to amend
this Ordinance to further its purposes and intent (including but not limited to
amendment for more efficient administration as determined by the City Council) in any
manner that does not increase a tax rate, or otherwise constitute a tax increase for
which voter approval is required by Article XIII C of the California Constitution.
61518. ADOPTION; EFFECTIVE DATE. If a majority of the voters of the City of
Carson voting at the General Municipal Election of November 3, 2020, vote in favor of
this Ordinance, then this Ordinance shall become a valid and binding ordinance of the
City of Carson, and shall be considered as adopted upon the date that the vote is
declared by the City Council of the City of Carson, and this Ordinance shall go into effect
ten (10) days after that date, pursuant to Election Code section 9217.
61519. TERMINATION DATE. The authority to levy the tax imposed by this
Ordinance shall not expire unless terminated by lawful vote of the electorate or as
required or authorized by law.
Section 2. Council Authority to Amend. This is a City Council -sponsored initiative
Ordinance which otherwise would only be subject to amendment by the voters of the City. However,
pursuant to Elections Code Section 9217, the City Council shall have and retain the right and authority to
amend the Ordinance to further its purposes and intent (including but not limited to amendment for
more efficient administration as determined by the City Council) in any manner that does not increase a
tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of
the California Constitution.
Section 3. CEQA Exemption. The adoption of this Ordinance is not a "project" subject to
the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section §§
21000 et seq.). CEQA Guideline 15378(b)(4) provides that the creation of government funding
mechanisms or other government fiscal activities that do not involve any commitment to a specific
project that may result in a potentially significant physical impact on the environment are not projects
r; subject to the requirements of CEQA.
Section 4. Severability. If any section, subsection, sentence, clause or phrase of this
Ordinance or the application thereof to any person or circumstance is for any reason held to be invalid,
such decision shall not affect the validity of the remaining portions of this Ordinance. The People of the
City of Carson hereby declared that they would have passed each subsection, subdivision, paragraph,
sentence, clause, or phrase thereof, irrespective of the fact that any one or more subsection,
subdivision, paragraph, sentence, clause, or phrase be declared unconstitutional.
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Section S. Appropriations Limit. Pursuant to Article X11113 of the California Constitution,
the appropriations limit for the City of Carson is increased to the maximum extent over the maximum
period of time allowed under the law consistent with the revenues generated by this tax.
Section 6. Adoption; Effective Date. If a majority of the voters of the City of Carson
voting at the General Municipal Election of November 3, 2020, vote in favor of this Ordinance, then this
Ordinance shall become a valid and binding ordinance of the City of Carson, and shall be considered as
adopted upon the date that the vote is declared by the City Council of the City of Carson, and this
Ordinance shall go into effect ten (10) days after that date, pursuant to Election Code section 9217.
Section 7. Passage and Execution. The Mayor shall sign this Ordinance and the City Clerk
shall attest and certify to the approval thereof and cause same to be published or posted pursuant to
law.
2020. PASSED AND ADOPTED by the voters of the City of Carson at an election held on November 3,
J
Albert Robles, Mayor
A ES
Donesia Gause-Aldana, City Clerk
*************
PASSED AND ADOPTED by the City Council of the City of Carson, State of California, on January
12, 2021 by the following vote:
AYES:
COUNCIL MEMBERS:
NOES:
COUNCIL MEMBERS:
ABSTAIN:
COUNCIL MEMBERS:
ABSENT:
COUNCIL MEMBERS:
RECUSED:
COUNCIL MEMBERS:
ATTEST•
Donesia Gause-Aldana, City Clerk
01007 0007/660935 2
Robles, Dear, Davis -Holmes, Hilton, Hicks
None
None
None
None
Albert Robles, Mayor
Ordinance No. 20-2009
Page 8 of 9
r
no
APPROVED AS TO FORM:
64_Z40_
Sunny K. Soltani, City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF CARSON )
CITY OF CARSON:
Albert Robles, Mayor
ATTEST:
Donesia Gause-Aldana, MMC, City Clerk
I, Donesia Gause-Aldana, City Clerk of the City of Carson, California, hereby attest to and certify that the
foregoing ordinance, being Ordinance 20-2009 passed first reading on the 4th day of August, 2020,
adopted by the Carson City Council at its meeting held on the 12th day of January, 2021, by the following
roll call vote:
AYES: COUNCIL MEMBERS: Robles, Dear, Davis -Holmes, Hilton, Hicks
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
RECUSED: COUNCIL MEMBERS: None
Donesia Gause-Adana, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF CARSON )
I, Donesia Gause-Aldana, City Clerk of the City of Carson, California, do hereby certify that
Ordinance No. 20-2009 has been duly and regularly published according to law and the order of the City
Council of said City and that same was so published in Our Weekly, The Daily Breeze, and Random
Lengths, newspapers of general circulation on the following date(s):
Adopted Ordinance
Our Weekly: _
The Daily Breeze:
Random Lengths:
In witness whereof, I have hereunto subscribed my name this day of 2021.
Donesia Gause-Aldana, MMC, City Clerk
01007 0007/660935 2
Ordinance No. 20-2009
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