Adopted: August 21, 2006
Effective: November 8, 2006 (If approved by voters on November 7, 2006) 1 ORDINANCE NO. MC-1229
2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL
TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF 3 EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE 4 TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 5 BE IT RESOLVED THE MAYOR AND COMMON COUNCIL OF THE CITY OF 6 SAN BERNARDINO DO ORDAIN AS FOLLOWS:
7 SECTION 1. Title. This ordinance shall be known as the City of San Bernardino 8 Transactions, and Use Tax Ordinance. The City of San Bernardino hereinafter shall be called "City." 9 This ordinance shall be applicable in the incorporated territory of the City. 10 SECTION 2. Operative Date. "Operative Date" means the first day of the first calendar 11 quarter commencing more than 110 days after November 7, 2006. 12 SECTION 3. Purpose. This ordinance is adopted to achieve the following, among other 13 purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
14 A. To impose a retail transactions, and use tax in accordance with the provisions of Part 15 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation 16 Code and Section 7285.9 of Part 1.7 of Division 2, that authorize the City to adopt 17 this tax ordinance, which shall be operative only if a majority of the electors voting 18 on the measure vote to approve the imposition of the tax at an election called for that 19 purpose.
20 B. To adopt a retail transactions and use tax ordinance that incorporates provisions 21 identical to those of the Sales and Use Tax Law of the State of California insofar as 22 those provisions are not inconsistent with the requirements and limitations contained 23 in Part 1.6 of Division 2 of the Revenue and Taxation Code. 24 To adopt a retail transactions and use tax ordinance that imposes a tax, and provides 25 a measure therefore that can be administered, and collected by the State Board of 26 Equalization in a manner that adapts itself as fully as practicable to, and requires the 27 least possible deviation from the existing statutory and administrative procedures 28 followed by the State Board of Equalization in administering and collecting the DHC/js [OrdinanceslGeneralTransactions. Use Tax Ord) Revised 8/7/06 •
MC-1229
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL 2 TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 5 California State Sales and Use Taxes.
6 D. To adopt a retail transactions and use tax ordinance that can be administered in a 7 manner that will be, to the greatest degree possible, consistent with the provisions of 8 Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of 9 collecting the transactions and use taxes, and at the same time, minimize the burden 10 of record keeping upon persons subject to taxation under the provisions of this 11 ordinance.
12 SECTION 4. Contract With State. Prior to the operative date, the City shall contract with 13 the State Board of Equalization to perform all functions incident to the administration and operation 14 of this transactions and use tax ordinance; provided, that if the City shall not have contracted with 15 the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in 16 such a case the operative date shall be the first day of the first calendar quarter following the 17 execution of such a contract.
18 SECTION 5. Transactions Tax Rate. For the privilege of selling tangible personal 19 property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City 20 at the rate of 0.25% of the gross receipts of any retailer from the sale of all tangible personal property 21 sold at retail in said territory on and after the operative date of this ordinance. 22 SECTION 6. Place of Sale. For the purposes of this ordinance, all retail sales are 23 consummated at the place of business of the retailer unless the tangible personal property sold is 24 delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery 25 to an out-of-state destination. The gross receipts from such sales shall include delivery charges, 26 when such charges are subject to the state sales and use tax, regardless of the place to which delivery 27 is made. In the event a retailer has no permanent place of business in the State or has more than one 28 111
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MC-1229
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL 2 TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 5 place of business, the place or places at which the retail sales are consummated shall be determined 6 under rules and regulations to be prescribed and adopted by the State Board of Equalization. 7 SECTION 7. Use Tax Rate. An excise tax is hereby imposed on the storage, use or other 8 consumption in the City of tangible personal property purchased from any retailer on, and after the 9 operative date of this ordinance for storage, use or other consumption in said territory at the rate of 10 0.25% of the sales price of the property. The sales price shall include delivery charges when such 11 charges are subject to state sales or use tax regardless of the place to which delivery is made. 12 SECTION 8. Adoption of Provisions of State Law. Except as otherwise provided in this 13 ordinance, and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 14 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) 15 of Division 2 of the Revenue and Taxation Code are hereby adopted, and made a part of this 16 ordinance as though fully set forth herein.
17 SECTION 9. Limitations on Adoption of State Law and Collection of Use Taxes. In 18 adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
19 A. Wherever the State of California is named or referred to as the taxing agency, the 20 name of this City shall be substituted therefor. However, the substitution shall not 21 be made when:
22 The word "State" is used as a part of the title of the State Controller, State 23 Treasurer, State Board of Control, State Board of Equalization, State 24 Treasury, or the Constitution of the State of California; 25 The result of that substitution would require action to be taken by or against 26 this City or any agency, officer, or employee thereof rather than by or against 27 the State Board of Equalization, in performing the functions incident to the 28 111
DHC/js [Ordinances\GeneralTransactions. Use Tax.Ord] 3 Revised 8/7/06 MC-1229
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL 2 TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 5 administration or operation of this ordinance.
6 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 8 substitution would be to:
9 a. Provide an exemption from this tax with respect to certain sales, 10 storage, use or other consumption of tangible personal property which 11 would not otherwise be exempt from this tax while such sales, 12 storage, use or other consumption remain subject to tax by the State 13 under the provisions of Part 1 of Division 2 of the Revenue and 14 Taxation Code, or;
15 Impose this tax with respect to certain sales, storage, use or other 16 consumption of tangible personal property which would not be 17 subject to tax by the state under the said provision of that code. 18 In Sections 6701, 6702 (except in the last sentence thereof,) 6711, 6715, 19 6737, 6797 or 6828 of the Revenue and Taxation Code. 20 B. The word "City" shall be substituted for the word "State" in the phrase "retailer 21 engaged in business in this State" in Section 6203, and in the definition of that phrase 22 in Section 6203.
23 SECTION 10. Permit Not Required. If a seller's permit has been issued to a retailer under 24 Section 6067 of the Revenue and Taxation Code, an additional transaction's permit shall not be 25 required by this ordinance.
26 SECTION 11. Exemptions and Exclusions.
27 A. There shall be excluded from the measure of the transactions tax and the use tax the 28 amount of any sales tax or use tax imposed by the State of California or by any city, DHC/js [Ordinances\GeneralTransactions.Use Tax.Ord] 4 Revised 8/7/06 •
MC-1229
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL 2 TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 5 city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and 6 Use Tax Law or the amount of any state-administered transactions or use tax. 7 B. There are exempted from the computation of the amount of transactions tax the gross 8 receipts from:
9 Sales of tangible personal property, other than fuel or petroleum products, to 10 operators of aircraft to be used or consumed principally outside the county in 11 which the sale is made and directly and exclusively in the use of such aircraft 12 as common carriers or persons or property under the authority of the laws of 13 this State, the United States, or any foreign government. 14 2. Sales of property to be used outside the City which is shipped to a point 15 outside the City, pursuant to the contract of sale, by delivery to such point by 16 the retailer or his agent, or by delivery by the retailer to a carrier for shipment 17 to a consignee at such point. For the purposes of this paragraph, delivery to 18 a point outside the City shall be satisfied:
19 a. With respect to vehicles (other than commercial vehicles) subject to 20 registration pursuant to Chapter 1 (commencing with Section 4000) 21 of Division 3 of the Vehicle Code, aircraft licensed in compliance 22 with Section 21411 of the Public Utilities Code, and undocumented 23 vessels registered under Division 3.5 (connecting with Section 9840) 24 of the Vehicle Code by registration to an out-of-City address and by 25 a declaration under penalty of perjury, signed by the buyer, stating 26 that such address is, in fact, his or her principal place of residence; 27 and
28 111
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MC-1229
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL 2 TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 5 With respect to commercial vehicles, by registration to a place of 6 business out-of-City, and declaration under penalty of perjury, signed 7 by the buyer, that the vehicle will be operated from that address. 8 The sale of tangible personal property if the seller is obligated to furnish the 9 property for a fixed price pursuant to a contract entered into prior to the 10 operative date of this ordinance.
11 A lease of tangible personal property which is continuing sale of such 12 property, for any period of time for which the lessor is obligated to lease the 13 property for an amount fixed by the lease prior to the operative date of this 14 ordinance.
15 For the purposes of subparagraphs (3), and (4) of this section, the sale or 16 lease of tangible personal property shall be deemed not to be obligated 17 pursuant to a contract or lease for any period of time for which any party to 18 the contract or lease has the unconditional right to terminate the contract or 19 lease upon notice, whether or not such right is exercised. 20 C. There are exempted from the use tax imposed by this ordinance, the storage, use or 21 other consumption in this City of tangible personal property:
22 The gross receipts from the sale of which have been subject to a transactions 23 tax under any state-administered transactions, and use tax ordinance. 24 2. Other than fuel or petroleum products purchased by operators of aircraft, and 25 used or consumed by such operators directly, and exclusively in the use of 26 such aircraft as common carriers of persons or property for hire or 27 compensation under a certificate of public convenience, and necessity issued 28 pursuant to the laws of this State, the United States, or any foreign DHC/js [OrdinanceslGeneralTransactions.Use Tax.Ord] Revised 8/7/06 MC-1229
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL
TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF 2 EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 5 government. This exemption is in addition to the exemptions provided in 6 Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of 7 California.
8 If the purchaser is obligated to purchase the property for a fixed price 9 pursuant to a contract entered into prior to the operative date of this 10 ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible 12 personal property arises under a lease which is a continuing purchase of such 13 property for any period of time for which the lessee is obligated to lease the 14 property for an amount fixed by a lease prior to the operative date of this 15 ordinance.
16 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, 18 tangible personal property shall be deemed not to be obligated pursuant to a 19 contract or lease for any period of time for which any party to the contract or 20 lease has the unconditional right to terminate the contract or lease upon 21 notice, whether or not such right is exercised
22 Except as provided in subparagraph (7), a retailer engaged in business in the 23 City shall not be required to collect use tax from the purchaser of tangible 24 personal property, unless the retailer ships or delivers the property into the 25 City or participates within the City in making the sale of the property, 26 including, but not limited to, soliciting or receiving the order, either directly 27 or indirectly, at a place of business of the retailer in the City or through any 28 representative, agent, canvasser, solicitor, subsidiary, or person in the City DHC/js [Ordinances GeneralTransactions. Use Tax.Ord] 7 Revised 8/7/06 •
MC-1229
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL
TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF 2 EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 under the authority of the retailer.
5 "A retailer engaged in business in the City" shall also include any retailer of 6 any of the following: vehicles subject to registration pursuant to Chapter 1 7 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft 8 licensed in compliance with Section 21411 of the Public Utilities Code, or 9 undocumented vessels registered under Division 3.5 (commencing with 10 Section 9840) of the Vehicle Code. That retailer shall be required to collect 11 use tax from any purchaser who registers or licenses the vehicle, vessel, or 12 aircraft at an address in the City.
13 D. Any person subject to use tax under this ordinance may credit against that tax any 14 transactions tax or reimbursement for transactions tax paid to a district imposing, or 15 retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue 16 and Taxation Code with respect to the sale to the person of the property the storage, 17 use or other consumption of which is subject to the use tax. 18 SECTION 12. Amendments To State Law. All amendments subsequent to the effective 19 date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales, and 20 use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and 21 Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and 22 Taxation Code, shall automatically become a part of this ordinance, provided however, that no such 23 amendment shall operate so as to affect the rate of tax imposed by this ordinance. 24 SECTION 13. Enjoining Collection Forbidden. No injunction or writ of mandate or other 25 legal or equitable process shall issue in any suit, action or proceeding in any court against the State 26 or the City, or against any officer of the State or the City, to prevent or enjoin the collection under 27 this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount 28 DHC/js [Ordinances\GeneralTransactions.Use Tax. Ord] 8 Revised 8/7/06 MC-1229
AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL
TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF 2 EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 of tax required to be collected.
5 SECTION 14. Severability. If any provision of this ordinance or the application thereof 6 to any person or circumstance is held invalid, the remainder of the ordinance and the application of 7 such provision to other persons or circumstances shall not be affected thereby. 8 SECTION 15. Effective Date, and Submission To Voters. This ordinance relates to the 9 levy and collection of City transactions and use taxes and shall take effect immediately upon its 10 approval by the voters of the City.
11 SECTION 16. Amendment, and Termination Date. The authority to levy the tax imposed 12 by this ordinance shall expire 15 years after the Operative Date defined in Section 2 of this 13 ordinance. However, as required by Article XIIIC of the California Constitution, no amendment to 14 this ordinance may increase the rates of the taxes above 0.25% without voter approval. 15 SECTION 17. Declaration. The proceeds of the taxes imposed by this ordinance may be 16 used for any lawful purpose of the City, as authorized by ordinance, resolution or action of the 17 Mayor and Common Council. These taxes are not special taxes within the meaning of Section 1(d) 18 of Article XIIIC of the California Constitution, but are general taxes imposed for general government 19 purposes.
20 SECTION 18. Citizen's Advisory Committee. The Mayor and Common Council shall 21 create a Citizen's Oversight Committee, which shall review the expenditure of proceeds of the taxes 22 imposed by this ordinance and report on those expenditures to the voters of the City at least once a 23 year.
24 SECTION 19. Execution. The Mayor and City Clerk are authorized to subscribe this 25 Ordinance where indicated below to evidence its approval by the voters of the City. 26 111
27 11
28 DHC/js [Ordinances\GeneralTransactions.Use Tax Ord] 9 Revised 8/7/06 MC-1229
1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL
TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF 2 EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and 5 Common Council of the City of San Bernardino at a _ joint regular meeting thereof, held 6 on the 21st day of _ August _ 2006, by the following vote, to wit:
7 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT
8 ESTRADA
9 BAXTER
10 VACANT
11 DERRY
12 KELLEY
13 JOHNSON
14 MCCAMMACK
15 16
Guched D. Clark
17 Rachel G. Clark, City Clerk
18 The foregoing Ordinance is hereby approved this 22 gay of _ August - 2006.
19 20
21 Parick . Moth Mayor
City of San Bernardino
22 Approved as to Form:
23 Michael G. Colantuono, Special Counsel
24 25 By: 9/7/0
26 27
28 DHC/js [Ordinances\GeneralTransactions.Use Tax Ord] 10 Revised 8/7/06