Ordinance 0996ORDINANCE NO. 996
NEW SERIES
AN ORDINANCE AMENDING THE
ALAMEDA MUNICIPAL CODE BY
ADDING; TO PART 1, TITLE III,
CHAPTER 10 THEREOF, A NEW
ARTICLE TO BE KNOWN AS
ARTICLE 2, RELATING TO AND
IMPOSING AN EXCISE TAX ON THE USE
OR OTHER CON SUMP-
TION IN THE CITY OF ALAMEDA
OF TANGIBLE PERSONAL
PROPERTY PURCHASED ON OR,
AFTER, THE EFFECTIVE DATE
HEREOF FOR. OR OTHER,
CONSUMPTION IN THE CITY OF
ALAMUDA.
" roperty is sold, valued in Lnoney,
nether paid in money or otherwise,
without any deduction (}n account of
any of the following:
A. The cost.of the property sold;
2. The cast of materials used,
labor or service cost; interest
charged; lo5•ses, or any. other ex=
penses;
a.. 3. TIae cost of trrtnsport,. . of
th -e property prior _to its purchase.
The total amount for which the
property is sold includes all of the
following .
I. Any services that are a pa rt
of the dale;
2 Anyamount for .which credit is
liven to the. purchaser by the seller.
"Sales Price" does not include any
of the following:
1. Cash .discounts .allowed and
taken on sales;
. 2.. . Any part; of the aniount charged
for property :returned by consumers
and which raarn is refunded either
in cash or. credit;
3. The an - io.unt charged for labor
six services rendered in' installing or
applying the property sold;
4. Tiie amount of any federal tax
in°iposed upon or with "respect to
retail sales whether imposed upon
the retailer or upon the consumer
and reg ardless of whether or not the
amount of Federal = tax 'is stated to
customers as a = separate charge;
and the amount of any California;
State sales or use: tax. (The term
`'gross receipts" includes the amount
of any. manufacturer's or iinporter's
excise tax included. in the price of
*Yie property sold, <even though time
nanufacturer or importer is also the
retailer thereof, and whether or not.
the amount o f such tax ;is stated as
a separate charge);
6. Transportation charges sepa-
rately. 'stated, if the transportation
occurs after the :purchase of t:he
property is made.
(b) ``Use" includes the: exercise of
any right or power over tangible
personal property incident to th (:
Ownership o that :property, subject,
however, to the following exeetp-
� bons:
$; 1. It does not ,include the sale
4 pi' that property: in the regular
Course of business;
2. It does not include the keeping,
retaining or exercisin=g of any right
or power over tangible personal
property shipped or brought into
this City and which is thereafter
transported Outside the City for
principal use or consumption' Outside
the City, and which property is
actually so used or consumed,
3. it sloes not include the 'use of
such property for the purpose of
being processed, fabricated, or
manufactured into, attached to or
incorporated info, other tangible
personal property which is to be
transported outside the City and
thereafter used principally outslde
the City, or which is to be subse-
cluently sold or resold.in the regular;
enurse of business;
C It does not 'include the exercise
of any right or power over 'tangible
personal property incident to own-
ership of that property if such prop-
erty was purchased for princial use
or . csonsttmption outside the (:city and
is so used or con-sunied;
ae It does not include the use of
tangible personal property actually
employed in the transportation or
trari Of persons, ":property,
gas electricity, or c;oxnniunicationz .
in interstate or foreign comnerce by
persons engaged: in the business of
transporting or': transmitting such
persons, property, gas, electricity,
or communications in interstate or
foreign commerce;
6. It does not include the use of
tangible personal property actually
eniployed'in the transmission of gas,
electricity; or communications in
intrastate commerce. .
Sei . 3- 1022. i:olposit.ion and Sate
of Tam. An excise tax is hereby im-
posed on the use or other consuMp-
tion in this C167 tan,_ :persortal.
property purchased ;from any re
tailer on or after the effective date
hereof for us(, or other consumption.
in the City. _ofAlamoda at the rate
o�f one -half of.:one : per cent of the
�a•les pride of the property.
Sec, 3 -1023. C linf'orruity Witit State
Use Tax Law. The tax hereby levied,
except as .otherwise herein .provided,
is levied in the same manner and to
the sFa.me' extent and cinder the same
conditions as use taxes are levied
pursuant to Part 1 of Division 2 of
the Revenue and Taxation Code of
the State of California, known as
the "Sales and ZTse ".Tax Law,° as
amended and i force and effect on
January 1, 1950:
.Sec. 3 -1024. Due Date of Tai eti.
The taxes imposed by this article,
are due and ,payable to the Treas-
firer and. ex- officio Tax Collector of
the City of Alameda on or before
the last day of the month next suc-
ceeding each quarterly : period, the
first payment to be due and pay-
able under . this article on the 1st
da.y of Tuly, 1950.
Sec. 3 -1025. Deposit of Tax
Moneys. A ll moneys collected under
I
E
i
E
and pursuant to the provisions of
this article shall be deposited and
paid into the General Fund of the
City of Alameda. -
Section 3-1026. Adoption of State
Use Tax Lave by Iteferenee—
tions. (a) All of the provisions of
the "Sales and Use Tax Law" as
amended and in force and effect on
January 1, 1.950, except the .provi -
sions thereof. pertaining solely to
the "Sales Tax" and Sections 6008,
6201 to 6204, inclusive, 6207, 6226,
6241 to 6246, inclusive 6403, 6453,
7052, 7056,7057, 7101; 7102, 7151; 7152
and 71.53, are hereby. adopted and
m ade a part of this article as though
hilly .set forth herein; and all provi -
sions of any other law, including the
provisions of this Code, in conflict
therewith are 'inapplicable to this
i[
a rticle and the 'tax hereby imposed.
The word "storage" shall, for.
j
the purposes
purposes of this 'article, " be
deemed deleted from those provi -
sions of the Revenue. and Taxation
Code of the State of California
;.
_hereby adopted :by. reference, it
'
being the intention of the Council
that tha tar imposed by this. article
shall not apply to the storage of
tangible personal property.
(o) All of the provisionG of the
Revenue and Taxation Code, hereby
adopted - _providing for the. perform -
ance of official - action on the part
of the State Board of Equalization -
shall be performed: by the Treas-
urer of the City of Alameda.
�
(d) The City of Alamo �shall be
deemed substituted for the State of
E
California wherever - the State is
"
referred to in said provisions.
(e) The `.`Sales Tax" used
b
.term
in said provisions - shall refer to the
tax. imposed by Chapter 10, Article
1, Title ill, of .this -Code. -
(f) The City Manager of the City
of Alameda Shall be deemed substi-
tuted for the Governor wherever the
Governor is referred to in said pro -
,1
visions.
(g) All taxes hereby levied shall
be. payable. to the Treasurer_ of the
City of Alameda;.and any civil suit
(f
for the collection thereof may be
i
filed in any court of competent
jurisdiction in the State of Califor-
nia and the City Attorney of said
City shall prosecute: the action.
Sec_ 3 - 1,027. Application of Ta.v.
'i
Except, as otherwise specifically ex -
,
erupted, the tax hereby imposed ap-
plies to , all tangible personal prop-
erty purchased from a retailer and
located in this City;, provided, how -
ever, tha if , the purchaser proves
fo the. satisfaction of the Treasurer
that the property was purchaser'
Prior to the effective date of thi,
article, or was not purchased for
use or consumption in this City and
has not been nor. will be so used or
consumed, he shall" be relieved of
liability to pay the tax.
Sec. 3- 1028. Duty to Collect Tax.
Every retailer maintaining a place
of business in this City must apply
to the Treasurer for authorization to
collect the tax imposed by. this
article. Any retailer not maintain
ing a place of business in this City
may apply to the Treasurer for au-
thorization to collect the tax hereby
imposed. Upon; receipt -of any. appli
cation in such form as required by,
him, the Treasurer, in the case of a
.retailer maintaining a place of busi-
ness in the City, shall authorize, and
in the case of a retailer not':rnain-
taining a place of business in the
City, . may authorize the applicant
to . make such collections and to for- .
ward the same to the Treasurer at
the times provided in this article.
See. 3 -1029 Liability for Tax.
Every ;person using or otherwise
cons-uming in this City tangible per-
son-al property purchased from a
retailer is liable' for the tax; pro -
vided, however, no tax shall be due
hereunder if the tax imposed by.
Chapter 7.0, Article 1.; Title 'III, of
this Code. has been paid on the sale
of such property. His liability is not
extinguished until the tax has been
paid to this City, except that a
receipt from a retailer; authorized
pursuant to Section 3- 1.028 hereof.
given. to the purchaser pursuant t
Section 3 -10210 ''hereof, is su:
ficient to relieve the purchaser from
further. liability . for the tax to which
the receipt refers.:
See. 3- 10210. Payment of Tar.
..Every retailer who is authorized by
the Treasurer to collect the tax im-
posed by this article and who makes
sales of tangible .personal property
for use or other consumption in this
C ity not exempted under the provi-
sions of this article, shall collect the
tax from the purchaser at the time
of making 'the 'sale, or, if the use
or other consumption of the tangible
personal property is not then tax -
able hereunder,: at the time the use
or other consumption becomes tax-
able. ' Upon collecting the tax the
retailer shall give to the purchaser .
a rece ipt therefor in the manner and
form prescribed by the Treasurer.
The tax so collected by. the retailer
con stitutes a debt .owed by the re-
tailer to the City, and it shall be
unlawful for such retailer to fail to
t
.pay the same to.the.City in the man-
i ler arid' at the times elseuvherepro-
°sided in this article.
See. 3- 10211. x3is2 ►lay _af Tax Sep
Grate From ]Price. The tax so cols
lected by the retailer from the pur-
chaser shall %be :displayed separately
from the list price, the price adver-
tised in the premises, the marked
price or other price on the sales
check or other proof of .sale.
sec. 3 - 1.0212. Registration of Re-
tailer with Treasurer. Every : re-
taller selling tangible personal prop -
erty for use or .other consumption
in this City; and which retailer main-
tains a: place of business in this City
or acts through agents located in
this City, and which retailer is not
registered under' the provisions: of
Chapter. 10, 'Artiele 1, Title III : of
this Code, :shall register: with the
Treasurer and give the :name: and
j address of such agent or agents and
offices 'of other places of business
in the City.
Sec. 3= 10213. Exeinptions. In a•ddi-
tion to those- exemptions Contained
in Part 1 of Division 2 of the Rev-
enue and Taxation Code of .the Suite
of California which are incorporated
into this article by reference,. there
shall be excluded from the cornputa-
tion of :the tax the 'sales. price cif:
(1) Purchases made by the State
of California -or by any agency, de-
partxnent, political subdivision,' dis-
trier or munieipal corporation
thereof.
(2) Purchases of tangible personal
property to be €rseil in connection
with the etrection, construction; re
° air or alteration of either public
Rorks or :: buildings beloni;ing to or
tieing constructed by or on behalf or
f.or the:'. use of :the Uni :ted State.
Government, State of California, or
any. agency, . department, : political
subdivision, .district or public or mu
nicipal . corporation of the State.
(3) Purchases made pursuant to
contracts actually executed i.n good
faith prior to May :4, 1950:
(4) Purchases of motor vehicle
fuel, the distribution of which in
the State of.. California is subject
to the 'tax unposed by Part 2 of
U Division ;2 of .the Revenue and Taxa
tion Code : of the State of California,
except that users of motor vehicle
fuel on which the motor vehielo fuel
tax is refunded shall be :liable for
the tax. imposed by this article at
rh'e time and in the manner Herein
Provided.
'Sec_ "3- 10214. Resale: Certificate.
The Trea,suxer may, at his option,
accept a. State of California resale
certificate .as evidence that any sale
is not a sale for use or con <sumptiong
or he may, in his discretion, require
ail affidavit from the buyer setting
forth such information respecting
such sale as he .deems necessary to
determine the nature of such sale.
sec: 3-- 10'215. Returns—Informa-
tion Each return filed by
a retailer shall show the total sale
price of. the property sold by him
during the : reporting period in re-
spect of which he collected the tax
hereby imposed.: Each return filed
by a purchaser shall show the total
sale price of the property purchased
by him.during the reporting period
.in respect' of which :a, tax is due
hPreituder.
All returns shall also shoo: the
amount of the taxes for : th :e'. period
covered . by the return and such
other information as the Treasurer
deems n ecessary..for the proper ad-
ministration of this article.
Sec.. 3- 10216. Extension of Time
or Filing Return mid lE'aybmg7 Taxes-
Penalties.- (a) The :Treasurer. for
g ood cause, may extend for not more
than 30 days the time for making
any return or. paying any suns re-
quired to. be paid hereunder. The
extension may ' be granted at any
time provided a. written request
therefor is filed With the Treasurer
prior to the delinquency date.
(b : ) All . taxes payable hereunder
h
sall' b deemed' delinquent if not
paid within the time required.
Whenever any tax required to be
paid by this article is not.:paid on
or before the date on which it . be-
comes delinquent a penalty -of ten
per cent (10%)) of the amount due
shall be imposed anal an additional
penalty of five.per :tent (5%)' of the
original tax shall be added at the
close of business on the last clay of
each calendar month thereafter.
Every penalty shall become apart
of the tax imposed by this. section.
In nza case, however,.shall the total
penalty exceed fifty per cent (50 %)
of the original tax.
Sergi: 3-10217. Treasurer to A.dmin-
lister. (a.) The Treasurer shall ad-
minister and enforce: the provisions
of.this article and, with the approval
of the Cit Attorney, "shall prescribe,
adopt' and enforce 'reasonable rules
�md: regulations for tbo - purpose of .
administering and enforcing this
article Such rules and regulations
may, among other. thing require
each person affected by this article
to keep such records, : receipts; in-
voices and other pertinent papers
as the Treas may deem necesW -
nary for the purposes of adminis-
tering and enforcing this article.
(b) Inasmuch as this article is
patterned after the use tax provi-
sions ; of the Revenue and Taxation.
Code (if the State of California, and
the State Board of Equalization has
t;
made- various rules and regulations
pertaining to the interpretation, ad=
j� ministration and enforcement of
such provisions of the Revenue and
Taxation Code, it may be reasonably
assumed that the City of Ala,ineda,
j will ' be confronted with many of
the problenz,s dealt with in
rules and regulations, each sitjch rule
and regulation insofar as applicable,
shall apply in the interpretation of
this article until specifically' aban-
doned by rules' and regulations
ad.op.ted by the. Treasurer pursuant
to the authority of this article.
} See.: 3- 10218. TmIusion. of State
Use Tz ax Iavwr. The inclusion of any
clause, portion or part' of the State
Sales and Use Tax Law, Part 1,. Di
vision 2, of the Revenue and Taxa-
tion Code of the State of California
verbatim in : this article's =hall not in
or of. itself be deemed to exclude any
of the remaining = provisions : of said
Sales and Use Tax Law that are
made a part hereof by reference
only.
Sec: 3- 10219. Violatiou a . 1 lsde-
ineanor. Any person 'required to
make, render, sign or verify any
report' or return'. under the provi-
S�ions" of this article who makes any
false. or fraudulent return. with in
tent 'to defeat or . evade the ; determi -
nation of an amount due and re-
quired to be paid hereunder, or who
fails to make any required return
to the: Treas- urer,'or, who. fails to pay
any ::tax imposed by the provisions
of this article, or who : ,violates any
of the other' terms of this article, is
guilty of a'misdemeanon
See, 3-10220. The City'Attorney of
the City of Alameda shall be deemed
substituted for the `Attorney Gen-
eral whenever the Attorney General
is referred to in said .``Sales a;nd Use
Tax Law."
See. 3- 10221. The Treasurer .s•hall
be - deemed substituted for the State
C.`outroller and State' board of Con -''
trol whenever the State Controllei
or ' State. Board of Control are :'re=
ferred to in said "Sales and.Use.Tax
Law." _
Sec. 3. 10222. Validity. If any . sec-
Lion, subsection, sentence, clause;
phrase or portion of this article,
including but not limited to any ex-
emption, is for any 'reason held to
be invalid or unconstitutional by
the decision of any court of compe-
tent. jurisdiction_such decision sha17
not affect the validity of the re
maining° portions of this article. The
Council of this City hereby declares
that it would have adopted this
article and each section, subsecti:on, .
sentence, clause, phrase or portion
thereof irrespective of the fact that
any one ' or more . sections, subsec-
tions, elauces_ phrases. or portions .
be declared invalid or unconstitu-
tional.
Section 2. This. ordinance. shall be
in full force and effect 'from arid.
after the expiration of 'thirty (30)
days from the date of its final
passage.
W. J. 13RANSCTIEID,
Presiding Officer of the Council.
Attest:
J. P. CLARK,
City Clerk.
1, the undersigned hereby certify
that the foregoing ' Ordinance eras
dilly and regularly adopted and
passed by the Council of the. City.
of Alameda In regular meeting as-
sembled on the 4th: day of April,
1950, by the following vote, to wif
AYES: Councilmen And e r s o
Jones, ;Osborn,. Sweeney and Presi-
dent. Rra,nseheid, (5).
:NOES: None.
ABSENT: None.
IN WITNESS WHEREOF, 1 have
hereunto set my hand and affixed
the official seal of said City this
5th day of April, 1950.
(SEAL) J. P. CLARK,
City Clerk of the 'City"
of Alameda.
Publish April 5,:1950.. .