HomeMy WebLinkAboutOrdinance 56521
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Ordinance No. 5652
Ordinance of the Council of the City of Palo Alto Amending Chapter 2.32 (Sales
and Use Tax) and Chapter 4.10 (Solicitors, Peddlers, Pawnbrokers, Secondhand
Dealers, and Other Businesses Regulated by Police) of the Municipal Code to
Delete Obsolete References to the California Board of Equalization and Replace
Them with References to the California Department of Tax and Fee
Administration
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. Historically, the California Board of Equalization (BOE) was the state agency responsible
for collecting sales and use tax and other taxes, auditing taxpayers, and hearing tax
appeals. In 2017, the Legislature adopted the Taxpayer Transparency and Fairness Act,
which created the California Department of Tax and Fee Administration (CDTFA) and
assigned most of BOE’s former responsibilities for tax collection and administration to
the new agency.
B.The Palo Alto Municipal Code includes local provisions implementing sales and use tax
responsibilities and recognizing state-issued sellers permits required by the Revenue
and Taxation Code. Effective July 1, 2017, these responsibilities were reassigned from
BOE to CDTFA. This ordinance amends the update the Municipal Code to show the
correct state agency.
SECTION 2. The following sections of Chapter 2.32 (Sales and Use Tax) of the Municipal
Code are amended to read as follows:
2.32.040 Purpose.
. . .
(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 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 State Board of Equalization California Department of Tax and Fee
Administration in administering and collecting the California State Sales and Use Taxes; . . .
2.32.050 Contract with state.
Prior to the operative date the city shall contract with the State Board of Equalization
California Department of Tax and Fee Administration to perform all functions incident to the
administration and operation of this chapter, provided, that if the city shall not have contracted
with the State Board of Equalization 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
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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 chapter.
2.32.070 Place of sale.
For the purposes of this chapter, 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 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 o f 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 California
Department of Tax and Fee Administration.
2.32.100 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 the city of Palo
Alto shall be substituted therefor. 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 California Department of Tax and Fee Administration,
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 of Palo Alto, or any agency thereof rather than by or against the State Board of Equalization
California Department of Tax and Fee Administration, in performing the functions incident to
the administration or operation of this chapter; the substitution shall not be made 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 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), 671 l, 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.
2.32.140 Application of provisions relating to exclusions and exemptions.
(a) Section 232.130 shall become operative on January 1st of the year following the year in
which the State Board of Equalization California Department of Tax and Fee Administration
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 2.32.120 shall become operative.
(b) In the event that Section 232.130 becomes inoperative and the State Board of
Equalization California Department of Tax and Fee Administration subsequently adopts an
assessment ratio for the state-assessed property which is higher than the ratio which is
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required for local assessments by Section 401 of the Revenue and Taxation Code,
Section 2.32.120 shall become operative on the first day of the month next following the month
in which such higher ratio is adopted, at which time Section 232.130 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 232.130 shall again
become operative and Section 2.32.120 shall become inoperative.
SECTION 3. Section 4.10.280 of Chapter 4.10 (Solicitors, Peddlers, Pawnbrokers,
Secondhand Dealers, and Other Businesses Regulated by Police) of the Municipal Code is
amended to read as follows:
4.10.280 Exemptions.
(a) The provisions of this chapter shall not apply to secondhand goods, wares and
merchandise:
(1)Purchased at a public sale or auction;
(2)Purchased from any person holding a State Board of Equalization California
Department of Tax and Fee Administration permit number as a seller;
(3)Accepted in trade on the purchase of new merchandise;
(4)Received or purchased by any religious, charitable, civic or fraternal organization for
purposes of resale.
SECTION 4. Severability. If any provision, clause, sentence or paragraph of this
ordinance, or the application to any person or circumstances, shall be held invalid, such
invalidity shall not affect the other provisions of this Ordinance which can be given effect
without the invalid provision or application and, to this end, the provisions of this Ordinance
are hereby declared to be severable.
SECTION 5. Effective Date. This ordinance shall be effective on the thirty-first date after
the date of its adoption.
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SECTION 6. CEQA. The City Council finds and determines that this Ordinance is not a
project within the meaning of section 15378 of the California Environmental Quality Act
(“CEQA”) because it has no po tential for resulting in physical change in the environment, either
directly or ultimately. I n the event that this Ordinance is found to be a project under CEQA, it is
subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it
can be seen with certainty to have no possibility of a significant effect on the environment in
that this Ordinance simply clarifies existing local regulations.
INTRODUCED: MARCH 24, 2025
PASSED: APRIL 14, 2025
AYES: BURT, LAUING, LU, LYTHCOTT-HAIMS, RECKDAHL, STONE, VEENKER
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
APPROVED:
______________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: ____________________________
City Manager
______________________________
City Attorney ____________________________
Director of Administrative Services
Docusign Envelope ID: 98F5EE81-094E-4BED-A76E-819EB44FB2D8
Certificate Of Completion
Envelope Id: 98F5EE81-094E-4BED-A76E-819EB44FB2D8 Status: Completed
Subject: ORD - Replace Obsolete References to CA Board of Equalization with CA Dept of Tax/Fee Administration
Source Envelope:
Document Pages: 4 Signatures: 5 Envelope Originator:
Certificate Pages: 2 Initials: 0 Christine Prior
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
Christine.Prior@CityofPaloAlto.org
IP Address: 199.33.32.254
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4/18/2025 3:23:42 PM
Holder: Christine Prior
Christine.Prior@CityofPaloAlto.org
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Molly Stump
Molly.Stump@CityofPaloAlto.org
City Attorney
City of Palo Alto
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Lauren Lai
Lauren.Lai@CityofPaloAlto.org
Director Administrative Services/CFO
COPA
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Ed Shikada
Ed.Shikada@CityofPaloAlto.org
Ed Shikada
City of Palo Alto
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Ed Lauing
Ed.Lauing@CityofPaloAlto.org
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Mahealani Ah Yun
Mahealani.AhYun@CityofPaloAlto.org
City Clerk
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