Ordinance 24ORDINANCE N0. 24~
AN ORDINANCE OF THE CITY OF CUPERTINO, IMPOSTING A CITY SALES AND
USE TAX: PROVIDING FOR THE PERFORMANCE BY THE STATE BOARD OF
EQUALIZATION OF ALL FUNCTIONS INCIDENT TO THE ADMINISTRATION,
OPERATION AND COLLECTION OF THE SALES AND USE TAX HEREBY IMPOSED:
AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF.
The City Council of the City of Cupertino does ordain as
follows:
Section 1. SHORT TITLE
This Ordinance shall be known as the Uniform Local Sales and
Use Tax Ordinance of the City of Cupertino.
Section 2. PURPOSE
The City Council of the City of Cupertino hereby declares
that this ordinance is adopted to achieve the following, among
other purposes, and directs that the provisions hereof be
interpreted in order to accomplish those purposes;
(a) To adopt a sales and use tax ordinance which complies
with the requirements and limitations contained in Part 1.5 of
Division 2 of the Revenue and Taxation Code of the State of
California;
(b) To adopt a sales and use tax ordinance which incorparrates
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 said Revenue and. Taxation Code;
(c) To adopt a sales and use tax ordinance which imposes
a ninety-one percent of one percent 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 practical to, and requires the least possible deviatio n
fronn, the existing statutory and ;administrative procedures
followed by the State Board of Equalization in administering
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
said 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 suo~ect to taxation under the
provisions of this ordinance.
(e) To adopt a sales and use tax ordinance which can be
administered in a manner that will exclude the receipts of
particular sales from the measure of the sales tax imposed by
this City which have been included in the measure of the sales
tax imposed by any other city and county, county other-than the
county in which this city is located, or City in this State, and
avoid imposing a use tax on the storage, use or other consumption
of tangible personal property in this City when the gross receipts
from the sale of, or the use of, that property has been subject
to a sales or use tax by any other-city and county, county other
than the county in which this City is located, or City in this
State, pursuant to a sales and use tax ordinance enacted under
the provisions of Part 1.5 of Division 2 of the said Revenue and
Taxation Code.
Section 3. OPERATIVE DATE. CONTRACT WITH STATE
This Ordinance shall become operative on October 1, 1956,
and prior thereto this City shall contract with the State Board
of Equalization to perform all functions incident to the
administration and operation of t:h.is sales and use tax ordinance;
provided, that if this City shall not have contracted with the
said State Board of Equalization, as above set forth, prior to
October 1, 1956, this ordinance shall not be operative until the
first day of the first quarter following the execution of such a
contract by the City and by the State Board of Equalization,
provided further that this Ordinance shall not become operative
prior to the operative date of th~~ Uniform Local Sales and Use
Tax Ordinance of the County of Sa;zta Clara.
Section ~-. SALES TAX
A 1) For the privilege of selling tangible personal
property at retail a tax is hereby imposed upon all retailers in
the City at the rate of ninety-one percent of one percent of the
gross receipts of the retailer from the sale of all tangibles
personal property sold at retail in the City of Cupertino on and
after the- operative date of this Ordinance.
(2) For the purposes of this Ordinance, all retail sales
shall be presumed to have been consumated at the place of
business of the retailer unless the tangible personal property
sold is delivered by the retailer or his agent to an out-of-
state destination or to a common carrier for delivery to an
out of state destination. Delivery charges shall be included in
the gross receipts by which the tax is measured, regardless of the
place to which delivery is made, when such charges are included
in the measure of the sales or use tax imposed by the State of
California. In the event a retailer has no permanent place of
business in the State of California, or has more than one place
of business, the place or places at which retail sales are con-
summated shall be as determined under rules and regulations
prescribed and adopted by the Board of Equalization.
B (1) Except as hereinafter provided, and except insofar
as they are inconsistent with the provisions of Part 1.5 of
Division 2 of the said Revenue and Taxation Code, all of the
provisions of Part 1 of Division 2 of said Code, as amended and
in force and effect on October 1, 1956, applicable to sales tax
are hereby adopted and made a part of this section as though
fully set forth herein.
(2) Whenever, and to the extent that, in Part 1 of
Division 2 of the said Revenue and Taxation Code the State of
California is named or referred to as the taxing agency, the
City of Cupertino shall be substituted therefor. Nothing in this
subdivision shall be deemed to require the substitution of the
name of the City of Cupertino for the word "State" when that
word is used as part of the title of the State Controller, the
State Treasurer, the State Board of Control, the State Board of
Equalization, or the name of the State Treasury, or of the
Constitution of the State of California; nor shall the. name of
the City be substituted for that of the State in any section
when the result of 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 performing the
functions incident to the administration or operation of this
ordinance; and neither shall the substitution be deemed to
have been 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 this
tax with respect to certain gross receipts which would not
otherwise be exempt from this tax while those gross receipts
remain subject to tax by the State under the provisions of
Part 1 of Division 2 of the said Revenue and Taxation Code,
nor to impose this tax with respect to certain gross receipts
which would not be subject to tax by the State under the
provisions of that Code, and, in addition, the name of the
City shall not be substituted for that of the State in
Sections 6701, 6702 (except in the last sentence thereof) 6711,
6737 and 6828 of the said Revenue and Taxation Code as adopted.
(3) If a seller's permit has been issued to a retailer
under Section 6068 of the said Revenue and Taxation Code,
an additional seller's permit shall not be required by reason
of this section.
(~) There shall be excluded from the gross receipts
by which the tax is measured
(i) The amount of any sales or use tax imposed. by
the State of California upon a retailer or
consumer.
(ii) 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
the county in which this city is located or
city in this State under a sales or use tax
ordinance enacted by that City and county,
county other than the county in which this city
is located, or city in this State in accordance
with Part 1.5 of Division 2 of the said Revenue
and Taxation Code.
(iii) Receipts from sales to operators of common
carrier and waterborne vellels of property to
be used or consumed in the operation of such
common carriers or waterborne vessels
principally outside of this City.
Section 5. USE TAX
A. An excise tax is hereby imposed on the storage, use
or other consumption in the City of Cupertino of tangible
personal property purchased from ~~.ny retailer on or after
the operative date of this ordinance, for storage, use or
other consumption in the City at the rate of ninety-one
percent of one percent 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 ma~~.e.
B (1) Except as hereinafter provided, and except insofar
as they are inconsistent with the provisions of Part 1.5 of
Division 2 of said Revenue and Taxation Code, all of the
provisions of Part 1 of Division ? of said Code, as amended
and in force and effect on October 1, 1956, applicable to
use taxes are hereby adopted and :na,de a part of this section
as thou h fully set forth herein.
~2) Wherever, and to the extent that, in Part 1 of
Division 2 of the said Revenue an~~. Taxation Code the State
of California is named or referred to as the taxing agency,
the City of Cupertino shall be suostituted therefor.
Nothing in this subdivision shall be deemed to require the
substitution of the name of the City of Cupertino for the
word "State" when that word is use°d as part of the title of
the State Controller, the State Treasurer, the State Board
of Control, the State Board of Eq~.zalization, or the name of
the State Treasury, or of the Constitution of the State of
California; nor shall the name of the City be substituted for
that of the State in any section ,when the result of that
substitution would require action to be taken by or against
the City or any agency therefor r~~.ther than by or against
the State Board of Equalization, :in performing the functions
incident to the administration or operation of this ordinance;
and neither shall the substitutio:z be deemed to have been
made in those sections, including not not necessarily
limited to, sections referring to the exterior boundaries of
the State of California, where th~~ result of the substitution
would be to provide an exemption .from this tax with respect
to certain storage, use or other ~~onsumption of tangible
personal property which would not otherwise be exempt from
this tax while such storage, use ~~r other coksumption remains
subject to tax by the State under the provisions of Part 1
of Division 2 of the said Revenue and Taxation Code, or to
impose this tax with rexpect to certain storage, use or
other consumption of tangible personal property which would
not be subject to tax by the State under the said provisions
of that Code; and in addition, thy: name of the City shall
not be substituted for that of th~~ state in Sections 6701,
6702 (except in the last sentence thereof), 6711, 6715,
6737, 6797 and 6828 of the said Revenue and Taxation Code
as adopted.
(3) There shall be exempt from the tax due under this
section:
(i) The- amount of any sales or use tax imposed by
the State of California upon a retailer or
consumer.
(ii) The storage use or-other consumption of
tangible personal property, the gross receipts
from the sale of or the cost of which has been
subject to sales or use tax under a sales or
use tax ordinance enacted in accordance with
Part 1.5 of Division 2 of the said Revenue
and Taxation Code by any other city and county,
county other than the county in which this
city is located, or city in this State.
(iii) The storage or use of tangible personal
property in the transportation or transmission
of persons, property or communications, or in
the generations, transmission or distribution
of electricity or in the manufacture, trans-
mission of gas in intrastate, interstate o r
foreign commerce by public utilities which are
regulated by the Public Utilities Commission
of the State of California.
(iv) The use or consumption of property purchased
by operators of common carrier and waterborne
vessels to be used or consumed in the operation
of such common carriers or waterborne vessels
principally outside the City.
Section 6 . AMENDMENTS
All-amendments of the said Revenue and Taxation Code
enacted subsequent to the effective date of this ordinance
which relate to the sales and use tax and which are not
inconsistent with Part 1.5 of Division 2 of the said Revenue
and Taxation Code shall automatically become a part of this
ordinance.
Section 7. 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 1.5 of Division 2 of
the Revenue and Taxation Code, of any tax or any amount of
tax required to be collected.
Section 8. PENA LTIES
Any person. violating any of the provisions of this
Ordinance shall be deemed guilty of a misdemeanor, and upon
conviction thereof shall be punishable by a fine of not
more than Five Hundred Dollars ($500.00) or by imprisonment
for a period of not more than six (6) months in jail, or
by both such fine and imprisonment.
Section g. SEVERABILITY
If any section, subsection, sentance, clause, phrase or
portion of this ordinance, including but not limited to any
exemption, is for any reason held to be invalid or uncon-
stitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity
of the remaining portions of this ordinance. The Council
of the City of Cupertino 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 sections, subsections, sentences, clauses,
phrases or portions be declared invalid or unconstitutional.
Section 10. URGENCY CLAUSE
This Ordinance is an urgency Ordinance affecting, ar~d for
the immediate preservation of, the public peace, health,
safety, comfort, convenience and general selfare, and the
same shall therefore become effective immediately upon the
final passage and adoption therecf. The facts constituting
such urgency are as follows:
The legislature of the State of California has enacted
the Bradley-Burns Sales and Use 'Iax Law in order to provide
for uniform administration, operation and collection of
local sales and use taxes. The County of Santa Clara has
adopted a Uniform Sales and Use Tax Ordinance. The City of
Cupertino must act immediately to adopt this Ordinance in
order to comply with regulations of the State and County,
and to enable the City of Cupertino to contract with the
State Boardof Equalization for performance by the Board of
all functions incident to the administration or operation
of City Sales and Use Taxes before October 1, 1956.
POSTING CLAUSE
Copy of this Ordinance shall be posted in at least three
(e) public places in the City of Cupertino within fifteen
15) days after its passage as provided in Section 36933 of
the Government Code of the State of California.
The foregoing Ordinance was introduced at a special
meeting of the City Council of the City of Cupertino on the
27th day of September, 1956. Passed and adopted at a special
meeting of the City Council of the City of Cupertino on the
27th day of September, 1956 by the following vote:
AYES: Councilmen: Wilson, Lindenmeyer, Meyerholz,
Nathanson, Sai ch
NAYS: Councilmen: (None)
ABSENT: Councilmen: (None)
Approved:
~/ Warner M. Wilson
Mayor of the City of Cupertino
AT~ST:
City Clerk
I, LAWRENCE K. MARTIN, City Clerk of the City of Cupertino and ex
officio clerk of the legislative ~oody of said City do hereby certify
that the foregoing is a true and correct copy of Ordinance No. 2~+
on file in my office and that the same has been published pursuant
to law.
IN W TNESS WHEREOF I have hereunt~~ s t my hand and City Seal this
~_ day of -~~-2. , 19 ~''
~ ~~~. ~~
City Clerk