HomeMy WebLinkAboutORD 1709. J•
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The.cOunc11 or the.City ot Palo Alto does ordain as follows:
. Sect.ton L · SBCiBT TITIB. ~bia ol:-d.inance ahal.l be known .a.a
thie_Uii!torin.taCal Salea and lJae ~ax Ordinance of tbe City ot Palo Alto.;· ·
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. .,.l:cti.On 2. PUBPO..~. ·'.'fbe City Council or the City of ·Palo
Alt() .~rei;:';""aecl:area that tb1• ord1n.ance is adopted to achieve the tollo~ ;qQ:ng .O'tbere,, pu::rpo:&ea., and d1?1ecta tb&t the prov1$1one be-re-o.f::'b,ie. interpreted in order. to ace·om.pl1sb tb.oae ptirp0sea:
· a+ • To: adopt: a aa1ea and uae __ tax ordinance wb1cb complies Witb
the :t'fJtQ.ul~mente and lla1tat1ons contaii."'led in Part 1 ... 5 ot Di fiaion 2 ot tbEi Be·.,enue and Taxat1on"Code ot the State ot ca11.rorn.1a;
b._ To adopt: a sales and uae tax crainance wb1eb ineorporatea
: J1'~.~1s1oM identical to those ot• tbe Sale.a ,·-and Uae Tax .La• ot the
State. or Csl.l.t'o:rnia ::Lr.uJo:tar .• aa , .. thoue prov.1a1ona are not . 1ncona1atent
Wi:t.b. ~b,'· Nqo.ire.ment;a and. limtationa contained 1n Part 1.5 of D1v1-·eion 2~ or;· tm aa1~rt· Revenue and Taxation Code; ·
·-. e .·.:.To' .adopt; a aalee arid 1."'e tax ordinance which .1.mpoae-s a r\...inety~o.oe P. e r· c e n t o.! ~per cent tax and provides a :meas·ure
tber.af,or tba't can he ada1n1st~r--ed. and. collected by the State Board
or' !tqu'al..i%.at1on 1n a manner thait. adapts itael:f aa .f'ull.y •• practical
tc;,:.and :reqtd.re:a 1~0. least -7poe.~1ble-dev.1at1on .from,, tbe existing
s,tatutory -~" adt"!Clrdatra~ive·. procedures :toll.owed oy tbe sta·te Board ot Equsluat:ton 1n adainiat;ering and collecting the Cal.if'orn.ia State Sale5 -~ Use· Taxes; . -
-d~ ". To· &dOpt a aal•• and U!le tax orainanee which can be admin-
1Stered: 1ri a -~r that •111,, to the degree pmisi.ble conaietent ..
ntb tl:le p_rov1a1ona or Part r.s of D1v1a.1on 2 of the said Revenue;·
and ~nt:.ton Co.d~., ain1•i:ce. tbe coat of collecting city salea &nd
uae taxe.a and. at 1~be sue time mn1a1ze the burden ot :re cord keep
ing upon persons 11ubJect to taxation under tbe prov1s1ona of th.ts o~nan¢e;: ·
·. . . '·: .· e:~2~~-:.~ adopt: a Sale a &nd U8e t&X. Ordinance Wbich can be admin
.tat;e:red ··:o::r:·a unner tbat .w~ll exclude tbe receipts of particular
aaiea tl'(.\sf tba measure of tbe aalers tax imposed by tbia C1 ty wbich
baq. bee::n: in~luded,: in the ·measure o.r :tbe sales tax Ulposed by any
ot'be~ ci_t;.y-.• and co1:1.nty ~ county otber than tbe county 1.n wb.:1cb tb1a
e!t,-.: :t.-~-:1,oca;ted,, or city .in :_tb1s State; and avo1d illlpoaing a u_ae
tax ~n ;llfi.·etQrage, uae or otbe:r ~onsmapt1on of ta,ngible personal
p·rope.rty: ~in tbia City when tbe gross :receipta .from tbe sale of 1 or
tbe i.:(&$:·(?,1",, that p~perty _baa beell. subJeet _to a aalea or use ta."'t
by aey~tbere.:tty and. county" county other tban the county 1.n which
tbia.c:t:ty :Ls located .. or c1-:tY in tb15 state,, pursuant to a sales and.
· use tax :o_rd1nan:ce enacted under tbe prov1sion.s of Part l.5 ot D1v1-
. s1on 2 or tbe _--aa1d Revenue· and Taxation C~:ie ...
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Section~. 0.PERA.TIVE .. DATE. COWRAC'? WITH STAS. '?b18 ordi
M,nc.e allil!come ~:Jperat1ve on October la 1956., and prior thereto
tb.i• C.1 ty •ball con1~:ract w1 tb 'the st:a te Board of' .Equa11.zat1on to ~rt~r~il a,ll .'.tunct101-ia incident· to tbe adain:latration and operation
or· :tb1z. ·.ul•• ~ uae tax. ord.inanc.e; provided,, that 1r tbia City
anall .not. pave contracted wi tb tbe.; aaid state Board of Rqua11zat1onj!
as -abo-ve S'Jt :tortb, prior to Oetober l,, 1956,,. tbie ordin&rl.ce shall
· n.Ot · be_· o~:rati ve until .. tbe t.1rat day ot tbe first calendar qnarter
• Zollowing. · ~t:be e'xec:i-t1on ot auch a contract by the City .and by the
State Board ot, Equalisation; p:rov1ded_, :l'u1~tber ~ that this ordinanc.e
shall not become operative prior to tbe o~rative date of .toe-Uniform
Local .Sa.lee. and ua.e .Tax Ordinanee or the County or Santa. Clara.
section 4 •. SAl:.ES TAX.
_ a •. .(i) For tbe'pr1v1lege or selling tangl.ble pereonal property
at retail a tu is hereby 111.poaed upon all retailers 1n tbe City.at
the .. rate ot n1nety-ctne p e r c e n t o f one per cent ot tbe
groaa" :r:eceipta: ot tbe retail.er rroa the sale of all tangible person,al
p~Pe:rt-f sold at retail in'. the C1 ty or Palo Al to on anc after tbe
o~rat1V,e date ot th1a ord:l.nar.tee. .
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(2) Por the Pu.t.1>'->•eo o!: tb.i.e ordinance,. al.1 ret.ul ea1~_s shall
be preew•Ni to have been cowsummatea: at the place or buaineas ot th·e
retnler unleaa· tbe tangible personal -property sold 1e delivered by
the re·ta.1.ler or bia' agent to an out-ot-atate deat1.nat1on or to a eOiin-
.mon carrier for delivery to an out-of-atate destination. Delivery
ch-arge.:a a.hall be 1celuded in the gross Nce.iptl!i by wbic.h tbe tax 1s
m.eaaured,, · ·regardl.eu or tbe place to wh1eb del1 "'lery is made,, wben such
charges ·a.re .1.:acludedl 1n toe measure or tr,., . sales or use tax imposed by
the State ot .. Cal1.f'ox~n1a. In the ave.nt a· retailer baa no permanent
place ot 'bua1Jleaa. ii:t. :tbe State ot Calif'ornia., or baa more tban one
.. · :p·lace o~'. ·buaiJ:le;iaa., .tbe plac~ or places at wbieh retail NJ.ea are con
SUfrmta"tea: a.ball: be a~~. detem1.1lG~ under rules and regulat:1orus p;:teseribed
and adopted by the E~ard of Equalization.
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'b;.._ Ji) .heep-t ~ta bere:ina!"ter prov1d.ed~ and ,except 1naorar as
they· are· ,.ir;.c.Onti'iater.~t Witb the p:rovia1onB of Part .l. .. 5 o!' D1v1a1on 2
o!\tb•: ~d Rev:enu6 c4 Taxation Code,, all of tbe proviaiona or Par·~ 1 of t:r1v1e::1on 2 ot a.aid Code,. aa aendell,a.r..d 1n torce and effect on
oetot:er:l,. i·956., appllcable .. to s~a.les tai.ee,, a.re .hereby adopted and
made a ~t or this section as though !tilly set !ortb herein.,
. . _. (2l Wbe· . .rever,, and. to tbe extent tbat., ill Part l ot D1via1o.n 2 <'~f
tne said b,venue and'. ft.ut1on Cod.e tbe . State of' ca11rorn.1a :is named:
ox•: referred to .aa tbe taxing agency;, the City of Palo A:i.. to eball be
substituted tberef'ox·. Hotb1ng in tbia St.lbdi v1a1on aball be deemed 11:0
faquire~the aubatitution of:. tbe name or ~be City or Palo Alto tor the
word nstate5 when that 11f01l"O. ia 1.used. aa part ot tbe title ot tbe Sta1~e
. Con:t;r.oller,. tbe Statfi: Tres.aurer. 't'be. State JO.ard of Control,, tbe .state
·Board ot. Eqµ,al.:t.zat1G,n., or · tho ·X'J.<IUl:lre _0£ 'tbe S~'lte Treasury; or ot tbe
Const1.tut.1.on of: tbe .State of' Cal1.tornia,; r..Qr aball tbe name of tbe
City 'De substituted tor tbat of 'cbe Sta·te 1n any section when the
result of .tbat substitution· would. :require aet1.on to be taken by or
aga1nat tbe · City or. any agency tt\ere.or., r.stber tban by or against the
State:Board ot &qt;alis~tion., 1n perfoX'JW),g tbe tunct1ons incident to
·tbe' ac:hdilat.rat;:1on or operation of thi:s ordiliance; and ne1t.ber ab.all
tbe an2bat.:itti~1on be. deemed• to have been ·.a.de in tboae aect1.ona,
includi~., but not· :J1ec~asarlly limited to,, etfotions referr-lng to
t~, exte.r1o:r 'bound&r1ea of the. State ot .ca11.rorn1a:1 wbere tbe
res;ultot tbe aubat.1tut1on wou:ld be-to provide an exmaption troa
_tbia tu: w1tb reapec·t to eertair~ gross receipt• wbic.b
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would: not otberw1ae .be exa;>t trO!I. tb1a tax while tboae groes
:receipts reaa1n aubJect· to tax-by tbe State under tbe prov1s1on&J or Part l ot D1Y1•1on 2 ot tbe said P~vsnue and Taxation Code; nor
to ilrpOM tbia.·'tn-ntb reapcet to certain groaa receipt• wbicb
wou.ld. not. be attb3•et to tax. by tbe . State uoder the a.aid prov1e1ona
ot tba.t~:~COdo; and~ :in .1.ctd1t1on,, tbe Il.8lle of' the c1t:y:. e?la.ll not be
· au'batituted t'or tb.!l:t or tbit State 1n Sect1ona 6701, · 6702 (except
· .in tbe la.at senteni~e tbeNot),, 6711, 6715, 6737 ~ 6797 and 6828 or tbe·aaid Revenue and. Ta.x.ation·code aa adopted • . ' '-. •, . -, \ ' ' ,,
. · {3}: it a aellttr•s perait baa be~n 1s1ued to a retailer under
Sect1otf.,.6o68 or tmi said aeve!l.ue and 'faxatior.. Cod.ea an addit1ona1
ae1l.ar('.i· .ps-~t aball. not be :requi~d b;y reason ot tb.1.a aect.1or_-~..;
.,.,
(~l Tbere ab&:L:J. be excluded. troni the gros~ receipts by wh1ch
t'be tax 18 meuared..:
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(a) 'lb.a amount or any aalaa or uae tu imposed by tbe
state ot .caliJ~o:rn1a upon a re-ta:tler or· consumer_.
· . (b) .Beee:l.pte .from the aale ot tangible pera:onal pro-
pe~y ·upon :wf.sicll a sales or use tax baa beccme due by re.a
.. aop. .o,t · the· aaae t:ranaaot1on to any ot.ber city and county,
eou::i.ty otber:-tban the· county in wb1ch this city is located.,
or c1·ty !n tbia State: .. ui.ader '.it aalea or use tax ordinance
· enacted by that city and .. oounty, eo?lnty other than the
county in wbieb tbia city ia located,, or city 1.n tb.1s State
· in; aceord.an-ce :with Part l.5 or D1vie1on 2 ot the said Reve
n.u& and. '!'.axa~;lon Code ...
· . ·· ( c) Re'ce.1pts from ea.lea to operatora of common car
r1tr and. waterborne ve1ael1 ot. property to be used. or consu.Jled .,in:tbe operation ot aucb eoauon carriers or water
bol"'!l8 ve.-ssel:s pr1no1po1:1.lly outside or tb1a City.
§!ction _5. USE TAX.
'. a:. . :An: exciae , tax 1s here by 1apoaed on the storage·,. use or
otbe:r ;eOlus'Wltption in tbe C1t1 of' Palo Alto ot tangible personal
pl"'Operty:~purcbaaed. :from any retailer: on or atte:r tbe operative date ot · tb:1:§ o1'9:1n.a.nce . for atorage 1 uso or other co.neumpt1011 in the City
at t~e ·r;ate of' n'inety-one p e r c e n t or or:eper cent or tbe sales
p:r.:tce. ot tbe property. Tbe aalea price shall include deli very
. e·ba.rge.a •ben euch ebargtus are zsubJeet to State aalea or use tax
regard.le~= or the place to which delivery 1s made •
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'b&\\ (l) Exeept ae bere1natter provided,. and except 1n.sofar as
tbey an·::.1neOD:Jlia·te1nt .with tbe prov1a1ona of Part l_.5 ot Division 2
ot the 1Ht1d .·:Revenu-e:-and Ta.:ution Code,. all ot tbe provision.a of
:eart 1 o:.f D:l v1s1on 2 cit said Code, as amended. and in force and
e.tteet·, on. 0otober l, 19561 applicable to use taxes, are bereby
~dopted.:&nd·aade a pa1~ ol" thia aection as though fully set forth
. nerein{.-.
. : .. (2) .Wherever and: to the ·extent tbat in Part 1 ot D1.v1s1on 2 of~ the sa.i~· Revenue &?ld Taxation Code t'be State o:t~ Cal:1torn.1a is
:cil:a.e,d '?%'. ··:ret"erred to aa t~ . taxing agenc7·,, tbe City or Palo .Al to
aball :~be· :~ubatitutecl tberefor. Notbing .1n this :·aubd1via1on eball .bft dee•.d t~ require 'tbe subet1t"1t;"1on ot tae ~ or_· the C1ty or
.·· Pal9;:.ilto. tor the 111ord "State" wben that word. 1a used as part of'
·t~e. t.1"tle .. ot tbe State Controller, tbe State Treasurer,. thE~ Stat-e
.Board; :ot Contl'Ol,, toe State BOIU'd of Eqaal1.ntion, or tbe Il'831e or ta. Stata 'heasury,. or of tbe Constitution or tbe State o:r Calit
oz:r~a; n:or :shall the name ot tbe 01ty be substituted ror that ot
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tbe S.tate: in any section wbe.n tbe :res.ult ot ·that auoatitut1on
would reQ.Uire · action to be t.t.ken by or against ti.";e c1 ty or any
agf:.ncy t~~or ~ ratber .tban by or aga1:::un the state Board. or
Bqual1:sat1ori,..1n pttrtoX'ming t.be function.a .inc.:ldent to tbe admill-
1.etratiOrLor operati.on: o! ·toi.o ox:ictina..."'lca; and. ne:ttber aball the
au·het1tu:t1on ·be .deemed to have been made 1n tboe<: sect1ons 3 1nclud.illg ·out no·t necesaar1ly l1mi.ted to aectiOllS referring to
t~: ·extl.tr~or b?und.a.rie.,a ot tbe Sta~ or ca11torn.1a., wbitre the
re·sult 0:t t.be Bubat.1tut1on would be to provide an euapt:Lon fr<:11m
thia. tax lfitb respect to. certain atorage, uae or other cons\Uflp
t1on .: (;:t tangible peraonal property wbicb would not otberw!ae be
ex.empt f"roa thica tax wbile aucb storage, uae or other comnmpti.on
·reatall:UJ '. 11ubJeet tc; tax by tbe State under tbe prov1s1om of Part 1
. of ·'.D1tla1on 2 o! toe eaid Revenue and: Taxation C1od.e, er to impose
tbl.s · :t:U witb re:3pect to c&-rta1n: storage,, use or other consumption
.. of':. t~ble personal property wh1cb would not be subject to tu by
t.be':·~s:tate under· the aa1d prov1e1ona of that Code; and. 1n addi t1on,,
tb-e. na•Lof'· tb1if· City aball not be substituted ror that or the state
1.n. Sections 610'1, 6702 (except in tbe last ~e.ntence tnereot},, 6711., 6715~. ~737, 6797 and 6828 o:r tbe said Revenue and Taxation Code a.a
adopted•
(3) 'l'bere aball be exeapt .from tbe tax due under thia section:
(aJ.Tbe •ount ot any sales or use tax. :tm.posed. by
the State ot. Calif'Qrnia upon a retailer or <:onaumer.
(b) Tbe atora:ge., uae or other consumpti"n of taJ:1.t3.ible
personal property, the groea rece:Lpta tr-om tbe sale ot: or
:. tbe "coat of wbico has been subject to salea or use tax
under a sales or use tax ordinance enacted in accorda.."'lce
with Pe.rt l.5 or D1v1s1on 2 or the said Revenue and Tax.a
.tion Q~ by any other city and county, .county otbe:r. than
t~:,cot:1nty in Wbieb tb1a City 18 located, or City in th!.8
State. ·
. . '· (c). file s.torage or: uae of tangible per~$Onal property
, in tb~, trtu.1aportat1on or transm.1sa1on of persons, property or c"1um.un1c.at,1one, or 1.u the generat.ion~ tranamsaion or
d1str:1btit1on o: elec~r1c1ty or in the. :inanuf'acture ~ trans
~sa1on. Ozt d11Jtribution Of gas irl :.tntraatate., interstate
or foreign coll.Dl!rce o:; public utilities which a.,-, regu
lated by the·public .Ut1.lit1es Con:aisa1on of the state of'
ca11:rorri.la,. .
·.· . . (cl} Tbe use or eonin.mption of property purcbaaed b;y
'· operat,or& ot common ~arrier and waterborne vessels to be used~ or .cQnoumed in. ·the oi)eration 01 ... such common car
riers or waterborne· vessels principally out tide t be City.
, · Sect1o·n· 6~, AMEN.DMEh~. All amena.ents of tbe said Revenue
and T"a.xatlon :Cvde enacto(t gubsequent to tbe etf'ec:tive date of this
ordinari.e~f~lfb!Cb .relate to the sales and use tax. and which are not 1:r~eons·1atent w1 tb Part -1 ""5 ot. D1v1s1on 2 01 .. tbe said Revenue and
Taxat:1~n Code aba.l:L autom.at1eally bec.ome a part or tb1s ordinance.
. ·•. . Se.et:fO:.q:i_. _EJiJ'O!HING COLLECTION FOBBIDDEN. No injunction ·or.··wr1t;,ol;'.··!IU!~ate .or other legal or equitable process sball
1ssue in. ,any ,'S:f.li,t., aet1on or proceeding in any court against the
State or tb1s Qj_:t:y, or a.ga1nat any officer or the .. state or tbi.s
City,... t'.'t prevent ~>r enJo,in the collection under tbis ordinance"'
or. P~rt J:,,5 .0£ D:i.v1a1on 2 of the le venue and Taxation Code, or
al-.y: tax or any amount o:r tax :required to 'be collected.
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,Sect100. 8.. PENALTIES. Any person v1olati.nig any of the provisio~ of t6Is ordinance shall be deemed g'.J.il ty of a misdemeanor
arA :'upon con.V,1etion. thereof shall be punishable by a fine of not
mo~ than fi?e hu.nd.red dollars or by imprisonment for a period of
·not "more. tbar.& au months· 1n the county Jail or by both sueh fine
and. 1mi>r1&0t3ent.
. . Section Q ... SEVEllABILI'l'Y. If any aect:!on,, subsection,,. t5en-
tence, clause;,· pbrue or portion or this ordinance . incl ud:1.ng but
·n:ot 11.IU.ted :to. an.y ·exemption, is for any reason be id to be 1:nval1d
or unconatitut10.oal by the decision or any court of competent jur1a
_d1ct1o:n,.. suc.h dec1s1o::i. shall not affect tbe validity of the remain
ing· po·rt1ons· ·of . tbis ordinance ~ The council. of the City of Palo
Alto· be:reby declares that it would. have adopted this ordinance and each sect:fon,, 'tsubee6t1on,, sentence., cla;uae,, phrase or portion
thereo_f,,, irrespective ot the raet that any one o:r• more sections"'
sub.eect1ons:1:· aen:tences, clauses,, phrases or portions be declared
.·invalid or unconstitutional
Sect.ion 10., EFFECTIVE DATE. Tbi& ordinance shall be in full force~eet on October i .. 1956.
·rn~e above ari.<i foregoing ordinance wa::> duly a.:~;.d reg:..:lilrly
1·ntl"odu~~ed at a r1egular meeting of the CovLcl'l of the Ci t:;t of Pal'J
Al to on Monday, the ))th day of __ A_ug __ u_s_t __ , 1956, and was
thereaft;er .. ; on Monday, the 27th day of August , 1956, duly
Byxbee;i Cummings, Davis, Drysdale, Giffin_, Marshall,
:. Mitchell, Porter, Rodgers., Simpson .
NOF..S;; . · Rupp en t'ns~l .
ABSENT: Bishop, Corcoran, Cresap,
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AP_·_ PR_·. o __ VE._-~_-···.·.· :_·As. ~. · .. --~1-· ". FORM: //-))) ~§.~-
City ~rney
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