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ORDINANCE NO. 7.
AN ORDINANCE OF THE CITY OF PALM DESERT,
CALIFORNIA. IMPOSING A SALES AND USE TAX
TO RE ADMINISTERED BY THE STATE BOARD OF
EQU►LIZATION AND PROVIDING PENALTIES FOR
VIOLATION.
The City Council of the City of Palm Desert, California,
DOES HEREBY ORDAIN as follows:
SECTION 1. SHORT TITLE.
This Ordinance shall be known as the Uniform Local Sales
and Use Tax Ordinance.
SECTION 2. RATE.
The rate of the sales tax and use tax Imposed by this Ordinance
shall be as follows:
OPERATIVE DATE RATE
January 1, 1974
.0093
July 1, 1974
.0094
July 1, 1975
.0095
July 1, 1976
.0096
July 1, 1977
.0097
July 1, 1978
.0098
July 1, 1979
.0099
i July 1, 1980 .0100
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19 SECTION 3. PURPOSE.
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20 .j The City Council hereby declares that this ordinance Is adopted
e--?e•:e the following, among other, purposes, and directs that the
;i si:ns hereof be interpreted in order to accomplish those purposes;
22 (a) To adopt a sales and use tax ordinance which complies
with the requirements and limitations contained In Part 1. S of Division 2 of
23 the Revenue and Taxation Code;
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(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 requirements
and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation
Code;
(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 Equilization In a manner that adapts itself as fully as
practicable to, and requires the lease possible deviation from the existing
statutory and administrative procedures followed by the State Board of
Equalization In adminis►ering and collecting the California State Sales and
Use Taxes;
(d) To adopt a sales and use tax ordinance which can be
administered in a manner that will, to the degree possible consistent with the
provisions of Part 1.5 of Division 2 of the Revenue and Taxation Code,
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ORD. 7 By ORD'NPICE �....1.T�••-....
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minimize the cost of collecting city sales and use taxes and at the same time
minimize the burden of recm keeping upon persons subject to taxation under
the provisions of this ordinance.
SECTION 4. CONTRACT WITH STATE
Prior to the operative date this City shall contract with the
State Board of Equalization to perform all functions incident to the administration
and operation of this sales and use tax ordinances; provides, that If this
City shall not have contracted 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 following the axecution
of such a contract rather than the first day of the first calendar quarter
following the adoption of this ordinance.
SECTIONS. SALES TAX
For the privilege of selling tangible per: -oval property at
retail a tax Is hereby Imposed upon all retailers in the Cl!y at the rate stated
In Section 2 of the gross receipts of the retailer from the sale of all tangible
personal property sold at retail in this City on and after the operative date.
SECTION 6. 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 property sold is delivered by the retailer or tis 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
c` business, the place or places at which the retail sales are consummated,
shall be determined under rules and regulations to be prescribed and
ad3p:ed by the State Board of Equalization.
SECTION 7. USE TAX
An excise tax is hereby imposed on the storage, use or other
consumption in this City of tangible personal property purchased from any
retailer on and after the operative date for storage, use or other consumption
In this City at the rate stated In Section 2, 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 deliver is made.
SECTION 8. 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. S of Division 2
of the Revenue and Taxation Code, all of the provisions 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.
SECTION 9. 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 this City 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
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1 Control. the State Board of Equalization, the State Treasury, or the Constitution
of On State of California; the substitution shall not be made when the result of
t that substitution would require action to be taken by or against the City or any
agency thereof rather than by or against the State Board of Equalization, in
i performing the functions Incident to the administration or operation of this
ordinance; the substitution shall not be made in those sections. including, but
4 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
ti an exemption from this tax with respect to certain sales, storage, use or other
consumption or tangible personal property which would not otherwise be exempt
6 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
T 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
6 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) , 6711,
9 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
10 In this State in Section 6203 or in the definition of that phrase in Section 6203.
11 SECTION 10. PERMIT NOT REQUIRED.
12 If a seller's permit has been issued to a retailer under Section
6068 of the Revenue and Taxation Code, an additional seller's permit shalt
13 not be required by this ordinance.
14 + SECTION 11. EXCLUSIONS AND EXEMPTIONS.
13 i There shall be excluded from the measure of tax:
16 I� (a) The amount of any sales or use tax Imposed by the State
• ,f zf ; s :`:r'tit upon a retailer or consumer.
(b) The storage, use or other consumption of tangible personal
lie gross receipts from the sale of which has been subject to sales
-;; --=ar a sales and use tax ordinance enacted in accordance with Part 1.5
1-0 _- _ _':^ 2 of the Revenue and Taxation Code by any city and county,
c4 in this State.
(c) The gross receipts from sales to, and the storage, use or
nsumption of property purchased by, operators of common carriers
_-- E-ar-orns vessels to be used or consumed In the operation of such common
'I ca-r'e•s or waterborne vessels principally outside this city.
23 1 (d) The storage or use of tangible personal property in the
transportation or transmission of persons, property or communications, or In
24 1 the generation, transmission or distribution of electricity or in the manufacture,
transmission or distrubution of gas in intrastate, interstate or foreign commerce
25 by public utilities which are regulated by the Public Utilities Commission of the
State of California.
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27 SECTION 12. EXCLUSIONS AND EXEMPTIONS.
28 (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.
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(b) The storage, use, or other consump9on of tangible personal
j0 property, tI% 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
S, Division 2 of th • 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.
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a (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
g 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
lin such vessels for commercial purposes.
4 (d) The storage, use, or other consumption of tangible personal
property purchased by operators of waterborne vessels and used or consumed by
s such operators directly and exclusively In the carriage of persons or property
of such vessels for commercial purposes is exempted from the use tax.
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(a) There are exempted from the computation of the amount of the
T sales tax the gross receipts from the sale of tangible personal property to operators
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 common carriers
of persons or property under the authority of the laws of this state, the United
>t States, or any foreign government.
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(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, or any foreign government is exempted from the use tax.
SECTION 13. APPLICATION OF PROVISIONS RELATING TO
11 (a) Section 12 of this ordinance shall become operative on January
16 1st 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
17 !; •..hich is required for local assessments by Section 401 of the Revenue and
exation Code, at which time Section 11 of this ordinance shall become inoperative.
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(b) In the event that Section 12 of this ordinance becomes operative
:9 I ar.a the State Board of Equalization subsequently adopts an assessment ratio for
i t'e state -assessed property which is higher than the ratio which Is required
20 i far local assessments by Section 401 of the Revenue and Taxation Code, Section 11
of this ordinance shall become operative on the first day of the month next following
21 the month in which such higher ratio is adopted, at which time Section 12 of
this ordinance shall be Inoperative until the first day of the month following the
22 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
23 401 of the Revenue and Taxation Code, at which time Section 12 shall again become
operative and Section 11 shall become inoperative.
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SECTION 14. AMENDMENTS.
All subsequent amendments of the Revenue and Taxation Code
which 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.
SECTION 15. 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 this City, or against any officer of the State or this City, to
prevent or enjoin the collection under this ordinance or Part 1. S of Division
of the Revenue and Taxation Code, of any tax or any amount of tax required
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to be collected.
= SECTION 16. PENALTIES.
Any person violating any of the provisions of this ordinance
shall be deemed guilty of a misdemeanor, and upon conviction thereof shall
4 be punishable by a fine, of not more then $500.00 or by Imprisonment for a
period of not more then six months, or by both such fine and imprisonment.
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a SECTION 17. SEVERABILITY.
T 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.
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10 SECTION 18. EFFECTIVE DATE AND PUBLICATION.
11 This ordinance relates to taxes for the usual and current
expenses of the city and shall take effect immediately. Prior to the expiration
12 of fifteen (15) days from the passage thereof copies shall be posted in three
public places within the City limits of the City of Palm Desert, as prescribed
is by Resolution No. 4 and in accordance with the provisions of Section
36933 of the Government de of the State of California.
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15 I SECTION 19. EFFECTIVE DATE.
is This ordinance relates to taxes for the usual and current
=_x==-=es :f :!-^e city and shall take effect immediately. If desired, an urgency
.. : a -se -ay _e added.
;3 PASSED and ADOPTED this 26ttlay of Noy enber 1973,
:•ivi^.g vote:
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APES: mavor Clark Co ncil A
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NOES:
ABSENT:
u Worian enson,
Councilmen !►8•••� n-..��
Hone
None
ATTEST:
City Clark
City' f Palm Desert, California
ORD. 7
City of
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