HomeMy WebLinkAboutORD 2756•• • • OR!GI~~AL
ORDINANCE NO. ~756
ORDINANCE OF THE COUNCIL OF THJ:: CITY OF PALO ALTO
REVISING CHAPTER 2. 32 OF THE PALO ALTO MUNICIPAL
CODE Al~D APPROVING AGREEMENT FOR STATE ADMINIS-
TRATION OF SALES AND USE TAX
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Chapter 2.32 (SALES AND USE TAX) of the Palo Alto
Municipal Code is hereby revised to read as set forth in Exhibit "A"
attached hereto and incorporated herein by reference.
SECTION 2. The Council !4ereby approves an Agreement for
State Administration of Local Sales and Use Taxes between City
and Sta.te Board of Equalization, attached hereto as Exhibit -·~_B"
and incorporated herein by reference, and authorizes its execution
by the Mayor in behalf of the City.
SECTION 3. This ordinance shall become effective immediately
as provided in Section 12 of Article III of the Charter and
Section 2.04.375 of the Palo Alto Municipal Code.
INTRODUCED AND PASSED: November 13, 1973
AYES: Beahrs, Clay, Comstock, .Henderson, Norton, Pearson, _Rosenbaum,Shex-.
NOES: NONE
ABSENT; Berwald
ATTEST: APPROVED=
olli~.LJV ~
Mayor· c
I
APPROVED TO FORM:
::d\;Jt;lQ:m~Yl ~
Sr. Asst. C~ty Attorney
r ..
APPROVED:
./~:.t Clty Mana~ . ·
APPROVED:
tffif:c~ ~XffA~~r cl tYi .· ontr~ er .
't.'l
.
-~r c
. .
Sections:
2.!2.010
2.32.020
2.32.030
2.32.040
2.32.050
2.32.060
2.32.070
2.32.080
2.32.090
2.32.100
2.32.110
2.32.120
2.32.130
2.32.140
2.32.150
2.32~160
2.32.170
2.32.1CO
2.32.190
•
CHAPTER 2 • 3 2 ':
SALES AND USE TAX
Short title.
Rate.
Operative date.
Purpose.
Contract with State.
Sales tax.
Place of sale.
Use tax.
•
Adoption of provisions of state law.
Limitations on adoption of state law.
Permit not required,
Exclusions and exemptions.
Exclusions and exemptions.
Application of provisions relating to exclusions
and exemptions.
Amendments.
Snjoining collection forbidden.
Penalties.
Severability.
Repeals.
2.32.010 Short title. This ordinance shall be known as
the Uniform Local Sal~s and Use Tax Ordinanoe.
2.32.020 Rate. The rate of sales tax and use tax imposed
by this ordinance shall be ninety-one percent of one, percent.
2.32.030 gperative date. This ordinance shall be operative
on January 1, 1974. ·
2.32.040 Pur~ose. The City Council hereby declares that
this ordinance fs aaopted to achieve the following, among other,
purposes, and directs that the provisions hereof be interpret~d
in order to accomplish those purposes:
(a) To adopt a sales and use tax ordinance which
complies with the requirements a~d limitations contained
in Part 1.5 of Division 2 of the Revenue ~~d 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 require
ments and limitations contained in Part 1.5 of Division .2
of the Revenue and Taxation Code7
(c) To adopt a sales and ~se 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 requ!res.the least possible deviation
from the existing statutory and administrative procedures
followed by the State Board of Equalization in administer
ing and collecting the California State Sales and Use
Taxes; and
(d) To adopt a sales and use tax ordinance which
can be adrranistered in a m~ner that will, to the degree
- 1 -Exhibit "A"
I' • •
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.
2.32.050 Contract with State. Prior to the operative
date the City of Palo ATto 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;
provided, that if the City of Palo Alto shall not have con
tracted 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 followillg the execution of such a contract
rather than the first day of the first calendar quarter follow
ing the adoption of this ordinance.
2.32.060 Sales tax. For the privilege of selling tangible
personal property at retail a tax is hereby imposed \lpOn all
retailers in the City of Palo Alto ~t the rate st.ated in Section
2.32.020 of the gross receipts of the retailer from the sale of
all tangible personal property sold at retail in the City of
Palo Alto on and after the operative date.
2.32.070 Place of sale. For the purposes of ~qis ordinance,
all retail sales are consummated at th~ place of business of
the retailer unless the tangible personal property sold is
delivered by the ret?~.ler or his agent to aa 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 buswness,
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 Equalizdtione
2~32.080 Use taxo An excise tax is hereby imposed on the
storage, use or-other consumption in the City of Palo Alto of
tangible personal property purchaseci_from any retailer on and
afte):" the operative date for storage, use or other consumption
in the City of Palo Alto at the rate stated in Section 2.32.020
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. ' ·
2.32.090 Ado as
otherwise provi e 1n s
they are inconsistent with the provisions of Part 1. 5 of
Division 2 of the Revenue and Taxation Code, all of the pro
visions 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.
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2.32.100 Limitations on ado~tion of state law. In adopt
ing the provisions of Part 1 of D~visfon t ol 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, the
State Treasury, or the Constitution or the State of California;
the substitution shall not be made when the result of that sub
stitution 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, 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 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 thiB 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 consurnptfon remain subject to tax by the State under
the provisions of Part l of Division 2 cf 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 pro
visions 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 11 retailer engaged in business in this State 11 in
Section 6203 or in the definition of that phrase in Section 6203.
2.32.110
been issued to
'i'axation Code,
quired by this
Permit not re~uired. If a seller's permit has
a reta~ler un er Section 6067 of the Revenue and
an additional seller's permit shall not be re
ordinance.
2.32.120 Exclusions and exemptions. There shall be ex
cluded from the measure of tax:
(a) The amount of any sales or use tax imposed by
the State of California upon a retailer o.r 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 1 or city in ti~is 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 the City of Falo Alto.
(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, trans
mission or distribution of gas in intrastate, interstate or
foreign commerce by public utilities which are regulated
by the Public Utilities Commission of the State of California.
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2.32.130 ~3clus~?nJ and exemEtions.
(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 w1der 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) 'rhe storage I use, or other consumption· ·of tangible
personal property purchased by operators of waterborne
vessels and used or conswned by such operators directly and
exclusively in the carriage of persons or property of
such vessels for conunercial purposes is exempted from the
use tax.
(e) There are exempted from the computation of the
amount of the sales ta}': the gross receipts from the sale
of tangible personal property to operators of aircraft
to be used or consumed principally outside the cit~,:-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 1
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
cons~~ed by such operators directly and exclusively in
the use of such aircraft as conunon carriers of persons or
property for hire or compensation under a certificate ot
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.
2.32.140 Application of provisions relating to exclusions
and exe~tions.
(a) Section 2.32.130 of this ordinance shall become
operative on January 1st of the year following the year in
which the Sta.te 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 2.32.120 of this ordinance shall become
inopet""-'tive.
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, • •
(b) In the event that Section 2.32.130 of this ordinance
becomes operative and the State Doard of Equali~ation
sub,sequcntly adopts an assessment ratio for the stat.c
assessed prope~ty which is higher than the ratio \·:hich
is~required for local assessments by Section 401 of the
Revenue and Taxation Code, Section 2.32.]20 of this ordi
nance shall become operative on the first day of the month
next following the month in which such hi.gher ratio is
adopted, ... at which time Section 2.32.130 of this ordinance
shall be inoperative until the first day of the monb1 follow
ing the month in wl1ich the Board again adopts an assess-
ment ratio for state~assessed property which is identical
to the ratio required for local assessments by Section 401
of the RevenuG and Taxation Code, at which time Section
2.32.130 shall again become operative an~ Section 2.32.120
shall become inoperative.
2. 32.150 .Amendments. All subsequent a.11endments of the
Revenue and Taxation Code \vhich relate to the sales and use tax
and \'lhich are not inconsistent with Part 1. 5 of Division 2 of
the Revenue and Taxation Code shall automatically become a part
of this ordinance.
2.32.160 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 a~ainst the
State or the City of Palo Alto, or against any officer of the
State or th~ City of Palo Alto, to prevent or enjoin the collection
under this ordinance, or Part 1.5 of Division 2 of the Revenue
and Taxation Code, or any tax or any amount of tax required to
be collected.
2 .. 32.170 Penalties. Any person violating any of the pro
visions 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.
2~32.180 Severability. If any provision of this ordinanc~
or the application thereof to any person or circumstance is
held invalid, the remainder of the ordinance and the application
of such provision to othe?r persons or circumstances shall I?-0t
be affected thereby.
2. 32.190 Reneals. Ordinance No. 1709 dated August 27 1 1956, ·
as amended by Ordi~·n-la_n_c_e No. 2062 dated November 27, 1961, is
hereby repealed; provided,· hm>~ever, that said ordinance, as
amended, shall remain applicable for the purposes of the adminis
tration of said ordinance and the imposition of and the collectio:\
of tax \'lith respect to the sales of, and the storage, use, or
otl'.er consumption of tangible p0rsonal 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.
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City of __ P_alo Alto
AGREEMENT FOR STATE AD.MI~lSTHATl0:-.1 OF LOCAL SALES AND USE TAXES
To cany out Pan l.S of Division 2 of the Revenue and Taxation Code and the sales and
use tax ordinance of the c ir r h<'rt'inabO\'(: de: signatcd. hereinafter cal!<-d the Cit r' copy of which
ordinance is at!ached herc:to. the City and the State Board of Et~u,llization, hereinafter called
the Board. do a1:ree as follows:
ARTICLE 1
DEFiNITIONS
U n I e s s the comcxt requires otherwise, whercn:r the following terms appear zn this
Agreement the)' shall be interpreted to mean the following:
1. "Local Taxes" shall mean rhe sales and use taxes, penalties, and interest imposed
by the Cit;• under an ordinance which complies with Part 1.), Di\·ision 2, of the Revenue and
Taxadon Code.
2. "Conforming Taxing Jurisdiction" shall mean any county, city. or city and county of
rhis State which has adoptr~cl a sales and use rax ordinance of rhe kind described in Pan 1.5 of
Division 2 of rhe Revenue and Taxation Code and which has emered into a contract with the
State Board of Equalization to perform a!i functions incident to the administration and operation
of the ordinance.
3. "City Ordinance" shall mean th(" Uniform City Sales and Use Tax Ordinance :w.1ched
hereto, as amended from t .nc to time.
ARTICLE lJ
ADMINISTRATION AND COLLECTION OF LOCAL TAXES
A. Administration. The Board and the City a g r e c that the Board shall perform ex~
elusively ali func(ions incident to the administration and operation of the Ciry ordinance.
B. Other applicable laws. The City agrees that all pro\'isions of law applicable to the
adminisrracicn .and operation of rhc State Sales and Use Tax Law shaH be applicable ro the
administration and operation of i.he City ordinance and that money collected pursuant to the City
ordinance may be deposited in rhe State Treasury tc the credit of the Retail Sales Tax Fund and
may be drawn from rhat Fund for rhc purpose of making refunds, fer the purpose of cc'mpensating
and reimbursing rhc Bo.ud pursuam ro Article IV of this Agreement and for the purpose of trans·
miuiog to the City the amount to which the City is emided.
C. Transmiua) of money. Except as otherwise prodded herein, aJI local raxes colJecred
under the pro\' is ions of the Cit)' ordinance :;ha 11 he nansmitted to the Cit)' periodically as
promptly as feasible. Such transmiuals shall he made at least twice in each calendar quarter.
Transmittals mar be made by mail or hr Je posit to the account of the Cit)' in a bank in Sacra·
mento designated by the City. A statement shall be furnished indicating the amoum w:•hhdd
pursuant to Article: IV of this agreement.
D. Rules. The.-Board shall prt'scrih(• amf adopt such rules and reguladons as in its
judgment arc n<.·ccssar)' or desirable for rh(· adminisaation and oreration of the City ord ino.ncc
and the distribution of the local taxes colle:crcd thereunder.
BT -527 REV. 4 (8-73) Exhibit "B"
• • E. Preference. Unless the payor instructs oth<·rwisc anti c·xccp! as odwrwise pro-.. idcd
in this Agrcemem, the Board shall give no prderenn· in applyint: monc·y rN:ei\'eJ for sale~ and
use taxes owed by a c:lXpayc.-r but shall appl r ill I nwnit"s collcch:·d 10 1 he sati sfacdon of the
claims of the State and che claims of the City as their imerests appear.
F. Security. The Board agrees dmt any set:urity whi<-h it hercafrcr rc~.juires co be fur·
nished under rhe State Sales and u~e Tax Law will be upon such wrrns th<lc it also will be
available for the paymem of the claims of the City for local taxes owing to it as irs in1crcs!
appears. The Board shall nol be reqYired co chanze the term~ of any sf:curit}' now hc:IJ by it and
the Cicy shall not participate in any securit}' nvw held by {he> Board.
G. ~ames of sellers. The Board agrees to furnish the CJ<lmcs. addresses. accoum num·
hers, and the business classification codes of all sellers holding sellers' p<·rmits wid1inrhe
City.
II. Records of the Board. When requested by resoludon of the City Council of the City.
the Board shaH permit anj' duly aurhc.-rized officer or employee of tht: Cit} co examine rhe sales
and use Eax records of the Board pertaining to sales and use taKes collectcci for rhc Cit}' by che
Board_pursuant to this Agreemenr. lnfo·rmation 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 rhe Board pursuant to chis Agreement.
I. City tax rate. The City agrees that any change in the rate of its conforming Jocal
sales and use tax will be made effective at rhe beginning of a calendar quarter and char it will
give the Board at least two months' notice chereof and that it will also give notice to the Board
of Supervisors of the County in which the City lies.
J. Annexation. The Cily agrees rhar the Board shall nor be required to give effect to an
annexation. for the purpose of collecting and distributing city sales and use taxes, earlier than
the first day of rhe calendar quarter which commences not less than two months after norice ro
~he B·'1ltd. The notice ~ha!l ir.duc!~ t.-;·;::~ :r.;;.y::: d the c:.rouc·xe:d ,iH:a togeth<:r wiih rhe aJJr=.:!>s
of rhe property nearest to the extended city boundary on every street crossin.e that boundary.
ARTICLE Ill
ALLOCATiON OF TAX
A. Deficiency determinacion. All local tax<:>s collected as a resuh of dererminations or
billings made by the Board, and all amounts refunded or credited may be distributed or charged
to the respectivr~ 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 l o c a 1 tax· is collected from or refunded or credited to the ·
following:
(1) Retailers having traveling $ellers' permits or certificates of authoritr to coHect
usc:__.tax issued by the Board;
(2) Persons regarded by the Board as retailers pursuant toSecrion6015 of rhe Rcve·
nue and Taxation Code;
(3) Persons for whom no continuing account number was aclive at the date of pay·
ment; or
(4) Other retailers or pu"fchasers having no permanenr. place of business within rhe
State as determined by che Board; ·
BT-527 REV. 4 (8-73) • 2 •
• •
or when the local tax is collc(.:lcd br war of deduction from, or when a rc::fund of local tax is
made in conjunction wilh. refunds of mo10r n·hide fud license taxes. m when local rax is col
lected and Jire<.·t allocation is impractical, dH: Board mar riisttibutl' or chmgt' sut.:h lo..-al tax (0
all conformin,': tuxin~ jurisdictions in the courit)' in v:hlch the sale or usc: oc<·urred usin~ the
ratio:> rdlected by the distribution of taxes collected from all othc~r raxpayers in that county.
To rhe extent that this cannot bt: dune in a manner con~>istcn~ ·.vith the economic and eJfici(·nt
performance of th<' duties of the Roard under the Re\·;:·nuc amt Taxat i~)n Code and the provisions
of this Agreement, tht: Board may distribute or dHJ.rge sudt local tax w all conforming taxing
jurisdictions of this State using the ratios r<: flt·c [Cd b}' the d i~ tr ibudon of taxes ('ol lee ted frt)m
all other taxpayers in the State. In making allo<·ations under ihis parar,raph county tox irnposed
at a ralr.! in cxcr.:ss ol I pcrcenr shall be e-xcluded.
C. Vehicles, Vessels, and Aircraft. for the purposes of allocating lol·al tax with
respect to vchicl(•s required to be rcj!.istered or idcnlificd under th(: Vehicle Code. and with
respect to \'Csseb and aircraft, tht· address of rl'w rc·gistcrc<~ owner appearin;.: upon the applica
tion fot regisuation or identification may be u~;ed br the Board in determining rhc cirr of use.
To the extent this t:annot be done ift a m'lnncr consistent \Vi!h the economic and efficient perfor·
maoce of the· Juri,·s of chc Board un.Jcr the Ren:nue and Taxation Code and this Agreement, lhe
Boatd may allocate tax with respect tC' such \'chicles, \'Csscls, and aircraft in the manner pro
vided in Paragraph I3 of this Article.
ARTICLE 1\'
COMPENSATION
The Ci(y agrees ro pay rhe Board as the Board•s cost of administering the City ordi
nanc~:s such amount as is provided by law. Such amounts shall be deducted from the taxes
_ _ colJecr~d b:; :he Bcurd fvr the-City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sene b}' first-class United
States Mail. A notification is complete when deposited in the mail. Communications and nor ices
to be sent to the Board shall be addressed <o:
State Board of Equalizarion
P,O. Box 1799
Sacramento. Cllifornia 95808
Ariendon: Executive Secretary
Communicmions and notices to be sent co ~he City shall be addressed to:
. . ~.
BT-527 REV. 4 ~8-73)
City of Palo Alto
250 Hamilton Avenue
Palo Alto, California 94301
Attention: City Manager
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• • B. Tc:rm. The J;uc.-of this Agrcem~m is the date on which it is o1pproveJ hy th<> De
partmenc of G(·nC"ral St.•rviccs. The· Agre('ment shall rake· dfcct on rhe firs! d.1y of che calendar
quaru:r nexc sun:c~nling the dat(' of such approval, but in no case hcfore the opcrarin: \bte of
the Ciry ordinance, nor on a d<1y ocher chan the first day ol a (:i:licndar quarter. This Agrecrncm
sh;llJ conrinuc umi1 S<"pl('lllbc·r 30 nexr fc•l1owh•~ the operative date of the City ordinance. and
shall rllcrcafler be renewed aulomatically (rom year to yecu unless one of the parties gives
wriucn node<" o( termin::uion at least two momhs before the end of the lCrm. The Board may tt:r·
minate rhis Agrccmc1H in rhe manner provided by law.
C. This Agreement rt!plac:cs and supersedes the Agreement dated Sept.ember 28 1 19 56*
heretofore entered into b}' the Board and the City, which prim Agreement is hereby terminated.
*as amended August 24, 1959, STATE BOARD OF EQUALIZATION
By-
Executive Secretary
CITY OF -~P=.:!AL~O~AI~,~T-:~0'--------
Mayor
Attest: Clerk
City Controller
Approved as to Form:
~~~ ~roe ~!51' .city Attorney ·
·-·
BT·527 REV. 4 (11·73! -4 •
r
/ . • •
Hover:ilior 21, 1973
Hr. Jo~&n liurray
Sta-te uoaru of E'iualization
1>. o. nox 17Si9
Sacramento, California Si580&
Rc: City of Palo Alto Crdinanc3 ~o. 27SG
Stato hdini.nigt.rn.tion of. :--;~llus <.ual U;>e •;.•2.x
lJear Hr. llurray:
In response 'to our telephone converaution of
yes tcrday, \Je are enclosiny five rcviae<.l copies each
of pages 4 and 5 of J.;:-mL;i t "A" t0 the -.J.•J<JVe orc~in.:-tnce.
'l'ileBc reflect tlJc correction o:r the uord. "operat:Lve"
to J; ino(H.~rativc" at b-.Lu i.Jottom of pagu 4 (lil3t line)
and in line 10 on page 5.
'l'hanJ~ you for calling this to our attention:
SDHlVV
t:ncls &
be: /city
City
Dir.
City
Clerk
Controller
Very truly yours,
P.OBEJ~~-l' K. ilUO'l'H, JR.
Ci t.y 1\ttorn~y
DY Srl'B\I"LN D~ HcHOfHtiS
Sr. i\sst .• City Attorney
of Purchasing,Services
'l'reasurer
We are also attaching corrected pages as noted
above for your usc. Please insert tne corrected
pages in tho Ordinance copy fu~nished you with
a COPY of our letter of 11/lt;/"7~
• •
2.32.130 Exclusions and exemption!·
(a) The a.mouni: subject to tax shall not include any
sales ~r use tax imposed by the State of California upon
a retailer or consumer.
(b) The storager 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 dil:ectly 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 prope1·ty purchased by operators of \>laterborne
vessels and used or consumed by such operators directly and
exclusively in the carriage of persons or property of
such vessels for conune.rcial 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 operat.ors 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 conunon 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 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 1 or any fol.·eign
government is exempted from the use .tax.
2.32.140 Application of provisions relatinq to exclusions
and exemptions.
(a) Section 2.32.130 of this ordinance shall be~ome
operative on January ~st 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 \vhich is required for local assessments by
Section 401 of the Revenue and •raxation Code, at which
time Section 2.32.120 of this ordinance shall become
inoperative.
- 4 -
·' • •
(b) In the event that Section 2.32.130 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 2.32.120 of this ordi
nance shall become operative on the first day of the month
next folloHing the month in which such htgher ratio is
adopl.ed 1 • _at vlh ich time Section 2. 3 2 .130 of this ordinance
shall be inoperati~c until the first day of the rnont.1 follow
ing the month in which the Board again adopts an assess-
ment ratio for state-assessed property \·:nich is identical
to the ratio required for local assessments by Section 401
of the Revenue and Taxation Code, at \viLLch time Section
2.32.130 shall again become operative and Section 2.32.120
shall become inoperative~
2. 32.150 Amendments. All subsequent. amendments c:f the
Revenue and Taxation Code \vhich relate to the sales and use tax
and which are not inconsistent with Part 1. 5 of Division 2 of
the Revenue and Taxation Code shall automatically become a part
of this ordinance.
2.32.160 Enjoining collection forbid~en. No injunction
or writ of mandate or other legal or equita~le process shall
issue in any suit, action or proceeding in any court against the
State or the City of Palo Alto, or against any officer of the
State or the City of Palo Alto, to prevent or enjoin the collection
under this 0rdinancc, or Part 1.5 of Division 2 of the Revenue
and Taxation Code, or any tax or any arnount of tax required to
be collected.
2.32.170 Penaltie~. &,y person violating any of the pro
visions of this ordinance shall be deemed guilty of a misdemeanor,
and upon convictio!: thereof shall b2 punishable by a fine of
not more than $500.00 or by imprisonment for a period of not
more than six mont.hs, or by both such fine and imprisonment.
2.32.180 Severability. If any provision of this ordinance
or the applicat2on 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~
2.32.190 Repeals. Ordinance No. 1709 dated August 27, 1956,
as amended by Ordinance No. 2062 dated November 27, 1961, is
hereby l.'cpealed; provided, hm'lew~r, that said ordinance 1 as
amended, shall remain applicable for the purposes of the adminis
tration of said ordinance and the imposition of and the collection
of tax with respec~ to the sales of, and the storage, usc, or
other. consumption of tangible personal property prior to
January 1, 1974, the making of refunds, effecting credits, the
disposition of monies collcctedi and for the commencement or
continuance of any action or proceeding under said ordinance.
-s-
~-·--~~----~~------------------...... ----------
-~* Fr9fll _;:__··__,'.\ ~===---D~ ~D•~¥
_____ B. ding & Equipment MaintenanCfi!
Communications -----. -----· ReprodJction & M<~il
FIRST FLOOR • STATION 1
Personnel -----; ____ _,Purchasing
Pot ice ____ _..;
SECOND FLOOR · STATION 2
Controller ------..., ____ -,Data Procemng
____ , Treasurer
TH!RO FLOOR · STATION 3
Community Services -----Arts
Library
-----Nature & Science
Rt~Creation -----: _______ t~ctioo Servl<:es
f&IITJt fL()Oit • STATION J\.
-~-
-----;Fire ____ _,Piarming
___ ......__Tr~ic Engi..._. , ~
OTHER LOCATIONS
Animal Services
------:Main Library
MSC
---' Bldg. & Equip. Maint.
-----
Light & Power
Parks
--Communications Maint.
Stores
----~ Streets ----------. Water-Gas-Sewer
Childr~n·s TilE'atre -----. _____ Community Thetltre
Cultural Center
-----;Mitchel! Par'-
------:Stern Community Cenrer
____ .....;Water Quality Control tJtan'
Other.; ----
• t
• • > • •
C A !._ I i' 0 f<1 ti I f\
NOvember lS, 1973
B~r•t.Ary
State Boud of Bqu.aliaation
Loo&l Tax Unit
Poat Offiao Box 1799
S•cr ... nto, CAlifornia 95808
4ttent1onJ Mr. R. M. Hock.in9
Supervi•inq Aw.\1 tor
Att.achad fin4 five oopiea of ordin&Ac. No. 2756
of the Cit.y of Pal.o AJ;to e.atitle4, •araiDAJ&oe of tha
Council of the City of Palo Alto lleviaing Chapter 2. J2
of the Palo Alto Kunicipel COd4a anct ApproYiaq Alp:eement
tor State Adaioiatt"atiO.n of Salea and ON ·Tax, w whioh
baa been ovt.ified );Jy the City Cl.o~:lc ..
rou will no" th.at t,be A9'1'111••nt; fu..Uy u.cuted
by t-..he City of Palo Alto, u at~ u lblhibit •a•
. to tt. m:4lMDCe.. You iMtoaw iG a t.al.~ne COA-
. · · verut.t.on tt.lth ~. ofttoo thia date t.bat. the czodirsaMI•
autlao..-1aiat' "-• *ror to enout. ~ ._..a.lllerat wo\\1.4
._ .acoept&Ql• in luu of a r..oluUOQ aa Mt. fonb 1a ~ J.uuucUoA..
'l~ you tor your ooopu-at.ion in t.hia Mtt.el'.
Vezy tJnalJ you;.,
BOallllT' a. 80C.JIIB, a.
Ci~y A~ton.y
BY IRV&R D. MoiGRR%8
Sealor ueietAat\ ci 'ty
Attoi'Dey ·.
Director of Pur~~aaing Service•
City Treala!urex·