Ordinance 1189Alameda Clty Ordinances No.1189
New Series
AN ORDINANCE OF THE CITY OF
ALAMEDA IMPOSING A LICENSE
TAX FOR THE PRIVILEGE OF
SELLING TANGIBLE PERSONAL
PROPERTY AT RETAIL, PROVID-
ING FOR PERMITS TO RETAILERS,
PROVIDING FOR THE COLLECT-
ING AND PAYING OF SUCH TAX,
PRESCRIBING PENALTIES FOR
VIOLATIONS OF THE PROVISIONS
THEREOF; REPEALING THE SUS-
PENDED PROVISIONS OF ORDI-
NANCES NOS. 995 N. S., 1042 N. S.,
1090 N. S., 1093 N. S., 1101 N. S. AND
1160 N. S_ AS SUCH SUSPENDED
ORDINANCES ARE REFERRED TO
IN ORDINANCE NO. 1183 N. S.,
RELATING TO UNIFORM LOCAL
SALES AND USE TAX, AND IN-
SERTING THIS ORDINANCE IN
THE PLACE AND STEAD OF SUS-
PENDED ORDINANCES NOS. 995
N. S., 1042 N. S., 1090 N. S., 1093
N. S., 1101 N S. AND 1160 N. S.
BE IT ORDAINED BY THE COUN-
CIL OF THE CITY OF ATAMEDA:
SECTION 1. The Alameda Municipal
Cede is hereby amended by repealing
the suspended provisions of Ordinances
I\T 995 N. S., 1042 N. S., 1090 N. S_
1093 N. S, 1101 N. S., 1160 N. S. and
inserting in their places and stead the
f flowing sections, which sections shall
be deemed to be held suspended under
the prov and conditions of Ordi-
nance No. 1183 N. S., Section 3-1015.
CHAPTER 10. SALES TAX.
Article 1.
Section 3-1011. IMPOSITION AND
RATE OF TAX. For the privilege of
selling tangible personal property at
retail a tax is hereby imposed upon
all retailers at the rate of one percent
(1%) of the gross receipts of any re-
tailer from the sale of all tangible
personal property sold at retail in the
City of Alameda on or after July 1,
1956. The tax imposed by this ordi-
nance is in addition to any and all
other taxes imposed by any other
ordinance of the City of Alameda.
Section 3-1012. TAX LEVIED IN
SAME MANNER AS STATE TAX. The
tax hereby levied, except as otherwise
herein provided, is levied in the same
manner, to the same extent and under
the same conditions as sales taxes
are levied pursuant to Part 1 of Divi
sion 2 of the California Revenue and
Taxation Code, known as the " Sales
and Use Tax Law, as amended and
in force and effect on July 1, 1956.
Section 3-1013. ADOPTION OF STATE
SALES TAX LAW BY REFERENCE.
EXCEPTIONS
(a) All of the provisions of the
" Sales and Use Tax Law, as amended
and in force and effect on July 1,
1956, except the provisions thereof
pertaining solely to the " Use Tax
and Sections 6051, 6052, 6053, 6066,
6067, 6068, 6069, 6070, 6071, 6451, 7052,
7056, 7101, 7102, 7151, 7152, 7153, appli-
cable to sales of property at retail,
are hereby adopted and made a part
of this ordinance as though fully set
forth herein, and all provisions of any
other ordinance in conflict therewith
are inapplicable to this ordinance and
the tax hereby imposed.
(b) The term "gross receipts," as
used herein, does not include the
amount of any tax imposed by the
State of California upon or with re-
spect to retail sales whether imposed
upon the retailer or upon the con-
sumer.
(c) The term "Sale" shall mean and
include, in addition to the meanings
contained in paragraph A of this sec-
tion, the withdrawal by a retailer in
this City of tangible personal property
from a place in this City, from a place
in California outside this City under
the control of the retailer, or from a
place in California outside this City
at the order of the retailer, for de-
livery in any manner at a point in
California outside this City under such
circumstances that the transaction of
which the withdrawal is a part would
have been considered a sale within the
meaning of paragraph A of this sec-
tion had the point of delivery been
within this City. Provided, however,
that withdrawals pursuant to a trans-
action in foreign or interstate com-
merce shall not be sales for the pur-
pose of this section. Charges made
for the delivery of tangible personal
property so withdrawn shall be in-
cluded in the gross receipts by which
the tax imposed under this section is
measured unless such charges are
separately stated and are imposed for
transportation which occurs after the
sale of the property to the purchaser.
(d) All of the provisions of the
"Sales and Use Tax Law" hereby
adopted, providing for the adoption of
rules and regulations and for hearings
on the part of the State Board of
Equalization, shall be performed by
the City Council of the City of Ala-
meda. All other provisions of the
"Sales and Use Tax Law " hereby
adopted, providing for the perform-
ance of official action on the part of
the State Board of Equalization, shall
be performed by the City Treasurer
of the City of Alameda.
(e) The City of Alameda shall be
deemed substituted for the State of
California whenever the State is re-
ferred to in said "Sales and Use Tax
Law."
(f) The City Attorney of Alameda
shall be deemed substituted for the
Attorney General whenever the Attor-
ney General is referred to in said
"Sales and Use Tax Law."
(g) The City Treasurer of the City
of Alameda shall be deemed substi-
tuted for the State Controller when-
ever the State Controller or State
Board of Control are referred to in
said "Sales and Use Tax Law."
(h) The County of Alameda shall be
deemed substituted for the County of
Sacramento whenever the County of
Sacramento is referred to in said
"Sales and Use Tax Law."
Section 3-1014. EXEMPTIONS. In
addition to the exemptions contained
in Part I of Division 2 of the Revenue
and Taxation Code of the State of
California, after July 1, 1956, there
shall be excluded from the computa-
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Alameda 1 y s Ordinance No. 1189
tion of the tax gross receipts from:
(a) The amount of any sales or use
tax imposed by the State of California
upon a, retailer or consumer.
(b) Receipts from the sale of tangible
personal property upon which a sales
or use tax has become due by reason
of the same , transaction to any other
city and county, county other than
Alameda County, or city in this state
under a sales or use tax ordinance
enacted by that city and county, coun-
ty other than Alameda County, or
city in this state, whether in ac-
cordance with, or purporting to be in
accordance with Part 1.5 of Division 2
of the Revenue and Taxation Code of
the State of California or in accord-
ance with the organic law of any
such city.
(c) Receipts from sales to operators
of common carrier and waterborne
vessels of property to be used or con-
sumed in the operation of such com-
mon carriers ar. waterborne vessels
principally outside of this City.
(d) Sales inade pursuant to _con -
trac s actually executed in good faith
prior to the effective date of this
ordinance.
Section 3 -1015. ADOPTION OF RULES
An'D REGULATIONS BY REFERENCE.
INTERPRETATIONS. The rules and
regulations of the ' State ::Board of
E ,,ualizaaon as amended and in force
and effect July, 1, 1956, pertaining to
the interpretation, administration and
enfo cement of the "Sales and Use
Tax Law," ,insofar as applicable; ex-
cept Rule No -55 (Section 2015, Title
18, California Administrative Code,
Sales & Use Tax) shall apply in the
interpretation of this ordinance until
specifically abandoned by the rules
and regulations adopted by the City
Council of Alameda pursuant to this
ordinance. The word "City" shall be
deemed substituted for the word
"State" whenever the word "State"
appears in said rules and regulations.
In lieu of Rule No. 55, specifically
excepted above, the following inter-
pretations shall apply in the adminis-
tration of this ordinance:
(a) The sales tax does not apply to
sales of property which is:
(1) Imported into this City from
a foreign country and sold by the
importer in the original package
in which imported.
(2)" Sold to foreign purchasers
for shipment abroad and 'delivered
to a ship;, airplane, or other con-
veyance furnished by the purchas-
er for the purpose of carrying the
Property abroad and actually car -
ried to a foreign; destination, title
and control of the property pass-
ing to the foreign purchaser upon
delivery, and no portion of the
property being' used or consumed
in the United < States. Copies of
U. S. Customs Shippers' export
declarations filed with the Collec-
tor of Customs must be obtained
and retained' by retailers to sup-
port - deductions taken under this
paragraph. The tax applies to the
transaction if the property is di-
verted in transit or for any reason
not actually delivered outside the
City pursuant to the contract of
sale or not shipped abroad by a
foreign purchaser, regardless of
documentary evidence held by the
retailer of delivery of the property
to a carrier for shipment outside
the City, or to a foreign purchaser
for shipment abroad.
(3) Mailed by the seller, pursuant
to the contract of sale, to persons
in the armed - forces at ,points out-
side continental United States, not -
withstanding the property is ad-
dressed in care of the Postmaster
and forwarded by him to the ad-
dressee. When mail is addressed to
Army Post Offices (A /P /0's) in
care of the Postmaster or to naval
forces addressed in care` of the
Postmaster, it will be presumed
that it is forwarded outside Cali -
fornia. The seller must keep
records showing the names and
addresses as they appear on the
mailed matter and should keep
evidence that the mailing was done
by him.
(4) Shipped to a point outside
this City pursuant to the contract
of sale when the property is
marked for export and delivered
by the retailer to the "contracting
officer," "officer in charge," "Port
quartermaster, ". or other officer of
the United States for transporta-
tion and delivery to the Purchaser
at such a point.
(b) The sales tax does riot apply to
sales of airplanes; and parts and equip -
ment for airplanes, transported to a
point outside this City pursuant to
the contract of sale when such prop-
erty is delivered to the United States
Army Corps or any other agency or
instrumentality of the United States
for transportation and delivery to the
purchaser or someone, designated by
him at that point.
(c) The sales tax does not apply
(either in interstate or intrastate com-
merce) to sales of 'property shipped
from a point outside the City of Ala-
meda to a purchaser inside the City
of Alameda, or to the retailer's agent
in the City of Alameda; for delivery
to the purchaser, if none of the ele-
ments of sale, other than such de-
livery, takes place in the City of
Alameda:
(d) The sales tax does apply (either
in interstate or intrastate commerce)
to sales of property shipped from a
point outside of the City of Alameda
to a ; purchaser inside the City - of
Alameda, or to the retailer's agent in
the City of Alameda, for delivery to
the purchaser where any element of
the sale in addition to such delivery,
takes < place in the City; of Alameda.
(e) ` Element of Sale ": is hereby de-
fined to include solicitation of an
order, the acceptance of an order, the
giving of an order, whether such
order is given in person, by telephone
or by mail, or the payment of the
purchase price.
(f) The City Treasurer may approve
the payment of the sales tax by re-
tailers located outside the city in ac-
cordance with a formula if he finds
that the formula will produce the
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Al ame d a .7 a New
No. 1189
same or approximately the same tax
as if detailed accounting procedures
had been followed. A retailer desiring
to use such a £ormulashallfurnish
such information as may be required
by the City Treasurer to enable him
to make the required finding. The
formula may be used by the retailer
for such period of time, not to exceed
one year, as may be authorized by the
City Treasurer in writing, and is sub-
ject to renewal, upon application, for
periods not to exceed one year.
Payment in full of sales taxes in ac-
cordance with an approved formula
shall constitute full satisfaction of the
retailer's sales tax liability.
Section 3 -1016. VERBATIM EX-
CERPTS SHALL NOT EXCLUDE BAL-
ANCE. The inclusion of any clause,
portion or part of the "State Sales and
Use Tax Law, " Part 1, Division 2, of
the Revenue and Taxation Code of the
State of California; or the rules and
regulations of the State Board of Equal-
ization, verbatim in this ordinance
shall not in or of itself be deemed to
exclude any of the remaining provi-
sions of said "Sales and Use Tax Law"
or rules and regulations that are made
a part hereof by reference only.
Section 3 -1017. APPLICATION FOR
PERMIT. Every person desiring to en-
gage in or conduct business as a seller
within the City of Alameda shall file
with the City Treasurer an application
for a permit for each place of business
from which taxable sales will be made.
Every application fora .permit shall
be made upon a form prescribed by
the City Treasurer and shall set forth
the name under which the applicant
transacts or intends to transact busi-
ness, the location of his "place or places
of business, and such other informa-
tion as the City of Alameda may re-
quire. The application shall be signed
by the owner, if a natural person; in
the case of a corporation; by an exec-
utive officer or some person specifi-
cally authorized by the corporation to
sign the application, to which shall be
attached the written evidence of his
authority.
Section 3 -1018: ISSUANCE AND DIS-
PLAY OF PERMIT. After compliance
with Section 3 -1017 of this ordinance
by the applicant, the City Treasurer
shall grant and issue to each appli-
cant a separate ,permit for each place
of business from which taxable sales
will be made. A permit is not assign-
able and is valid only for the person
in whose name it is issued and for the
transaction of business at the place
designated therein; provided, however,
a change of location may be endorsed
upon the permit by the City Treasurer.
The permit shall at all times be con-
spicuously displayed at the place for
which issued.
Section 3 -1019. PERMIT FEES. At the
time of making; an application for a
permit, and at - the time a change of
location is endorsed upon a permit,
the applicant for a ' permit or for an
endorsement of a change - of location
on a permit shall pay to the City Trea-
surer a fee of One Dollar ($1:00).
Section 3- 10110. REVOCATION -0F
PERMIT. Whenever any person fails
to comply with any of the provisions
of this ordinance or any rule or regu-
lation adopted pursuant hereto; the
City Council of the City of Alameda,
upon hearing, after giving the person
ten days' notice in writing specifying
the time and place of hearing and -re-
quiring him to show cause, why his
permit or permits should not be re-
voked; may revoke or suspend any one
or more of the permits held by the
person. The notice may be served per-
sonally or by mail in the manner pre -
scribed for the service of notice of a
deficiency determination under the
"Sales and Use Tax Law." The City
Treasurer shall not issue a new permit
after the revocation of a permit unless
the City Council of the City of Ala-
meda- is satisfied that the former
holder of a permit will comply with
the provisions of this ordinance and
the rules and regulations adopted , pur-
suant hereto and directs the City Trea-
surer to issue such permit.
Section 3- 10111, RENEWAL OF _PER-
MIT. A seller whose permit has been
previously suspended or revoked shall
pay the City Treasurer a fee of $1.00
for the renewal or issuance of a per-
mit.
Section 3- 10112. UNLAWFUL ACTS.
A person who engages in business as
a seller in the City of Alameda with-
out a permit or permits, or after a
permit has been suspended or re-
voked and before the renewal or issu-
ance of a permit, and each officer of
any corporation which so engages in
business, is guilty' of a misdemeanor.
Section' 3- 10113. - DUE - DATE. The
taxes imposed by this ordinance are
due and payable to the City Treasurer
on or before the last day of the month
next succeeding each quarterly; period,
the first quarterly payment to be due
and payable under this ordinance on
the 30th day of October, 1956: The City
Treasurer may require' returns' and
payment of the amount of taxes for
quarterly 'periods other than calendar
quarters depending upon the principal
place of or the nature of the business
of the seller or retailer or may require
returns and payment of the amount of
taxes for other than quarterly periods.
Section 3- 10114. REIMBURSEMENT.
The tax hereby imposed shall be col-
lected by the retailer from the =con-
Sumer insofar as it can be done.
Section 3- 10115. UNLAWFUL AD-
VERTISING. It is unlawful for any
retailer to advertise or hold out or
state to the public or to any customer,
directly or 'indirectly, that the tax or
any part thereof will be assumed or
absorbed by the retailer or that it
will not be added to the selling price
of the property sold or that, if added;
it or any part thereof will be refunded.
Any person violating any provision of
this section is guilty of a misde-
meanor.
Section -3- 10116. -SUIT FOR TAX. All
taxes hereby levied shall be payable
to the City Treasurer and any civil
suit for the collection thereof may be
filed in any court of competent juris-
diction in the State of California, and
the City Attorney or said City , shall
prosecute the action.
Section 3- 10117. RESALE CERTIFI-
New Series
Alameda Clity Ordinances O,di,,n,, No. 11ft
CATE. The City Treasurer may at his
option accept a State of California Re-
sale Certificate as evidence that any
sale is not a sale at retail, or he may
in his discretion require an affidavit
from the seller setting forth such in-
formation respecting such sale as he
deems necessary to determine the na-
ture of such sale.
Section 3-10118, EXTENSION OF
TIME. WAIVER OR COMPROMISE.
The City Treasurer shall have power,
for good cause shown, to extend for
a period of not to exceed 30 days the
time for making any return or paying
any amount required to be paid under
this ordinance, when requested so to
do in writing, before the same becomes
delinquent. The City Treasurer may,
with the written approval of the City
Attorney, waive or compromise any
penalty or interest that would other-
wise accrue under the provisions of
this ordinance. The City Treasurer
shall make and transmit to the City
Council quarterly a detailed report of
any sums so waived or compromised
with the reasons therefor.
Section 3-10119. DISPOSITION OF
PROCEEDS. All monies collected under
and pursuant to the provisions of this
ordinance shall be deposited and paid
into the General Fund of the City of
Alameda.
Section 3-10120. DIVULGING OF IN-
FORMATION FORBIDDEN. It is un-
lawful for any officer or employee of
the City of Alameda having an admin-
istrative duty under this ordinance to
make known in any manner whatever
the business affairs, operations, or
information obtained by an investiga-
tion of records and equipment of any
retailer or any other person visited or
examined in the discharge of official
duty, or the amount or source of in-
come, profits, losses, expenditures, or
any particular thereof, set forth or
disclosed in any return, or to permit
any return or copy thereof or any
book containing any abstract or partic-
ulars thereof to be seen or examined
by any person. However, the City
Council may, by resolution, authorize
examination of the returns by federal
or state officers or employees or by
the tax officers of this or any other
city if a reciprocal arrangement exists.
Successors, receivers, trustees, execu-
tors, administrators, assignees, and
guarantors, if directly interested, may
be given information as to the items
included in the measure and amounts
of any unpaid tax or amounts of tax
required to be collected, interest and
penalties.
Section 3-10121. PENALTIES. Any
person required to make, render, sign
or verify any report under the provi-
sions of this ordinance, who makes
any false or fraudulent return, with
intent to defeat or evade the determi-
nation of an amount due and required
to be paid hereunder, is guilty of a
misdemeanor, and upon conviction
thereof shall be punishable by a fine
of not more than Five Hundred ($500.00)
Dollars or by imprisonment for
a period of not more than six months,
or by both such fine and imprison-
ment.
Section 3-10122. SAME. Any person,
firm or corporation violating any of
the terms of this ordinance shall be
deemed guilty of a misdemeanor, and
upon conviction thereof shall be pun-
ishable by a fine of not more than Five
Hundred ($500.00) Dollars or by im-
prisonment for a period of not more
than six months, or by both such fine
and imprisonment.
Section 3-10123. SEVERABILITY, If
any section, subsection, sentence,
clause, phrase or portion of this ordi-
nance is for any reason held to be
invalid or unconstitutional by the de-
cision of any court of competent juris-
diction, such decision shall not affect
the validity of the remaining portions
of this ordinance. The Council of this
City hereby declares that it would
have adopted this ordinance and each
section, subsection, sentence, clause,
phrase or portion thereof, irrespective
of the fact that any one or more sec-
tions, subsections, clauses, phrases or
portions be declared invalid or un-
constitutional.
Section 3-10124. EFFECTIVE DATE.
This ordinance, being an ordinance
fixing the rate of taxes to be levied,
shall be in full force and effect im-
mediately upon final passage,
R. P. KRANELLY
Presiding officer of the Council
Attest:
SHIRLEY H. TENNIER
City Clerk
L the undersigned, hereby certify
that the foregoing Ordinance was duly
and regularly adopted and passed by
the Council of the City of Alameda in
adjourned regular meeting assembled
on the 31st day of July, 1956, by the
following vote, to wit:
AYES: Councilmen Haag, Hove, Mc-
Call. Moresi and President Kranelly,
(5).
NOES: None.
ABSENT: None.
IN WITNESS WHEREOF, I have
hereunto set my hand and affixed the
official seal of said City this 1st day
of August, 1956.
(Seal) SHIRLEY H. TENNIER
City Clerk of the City of Alameda
Publish August 1, 1956,