Ordinance 884 . ~ ~
ORDINANCE NO. 884
AN ORDINANCE OF THE CITY OF CUPERTINO
IMPOSING AN ALTERNATE SALES AND USE
TAX ON CERTAIN TRANSACTIONS, AND DECLARING
THE URGENCY THEREOF
THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES ORDAIN AS
FOLLOWS:
Chapter 3.09 is hereby added to Title 3 of the Cupertino ~
Municipal Code, to establish alternate sales and use tax pro- !
visions for the City of Cupertino, to read as followa:
Chapter 3.09
ALTERNATE SALES AND USE TAX ,
I Sections: i
3.09.010 Short title.
3.09.020 Rate of tax imposed.
3.09.030 Operative and inoperative dates. -
3.09.040 Purpose.
3.09.050 Administration, Rules and Regulatioas, and
Joint Powers Agreement.
3.09.060 Sales tax.
3.09.070 Place of sale.
3.09.080 Use tax.
3.09.090 Adoption of provisions of State law. I
3.09.100 Limitations on adoption of State law.
3.09.110 Permit not required. I
3.09.120 Exclusions.
3.09.130 Exemptions. ~
3.09.140 Amendments. ~
3.09.150 Enjoining collection forbidden.
3.09.160 Effect on Chapter 3.08.
3.09.170 Penalties.
3.09.180 Severability. i
3.09.190 Urgency clause. ~
3.09.010 Short title. This Chapter shall be known as
the Alternate Local Sales and Use Tax Ordinance of the City
of Cupertino.
3.09.020 Rate of tax im oaed. The rate of sales tax and
use tax mposed by th s ordinance shall be one percent (or ninety
one percent of one percent, in the event one percent is finally
held by a court of competent jurisdiction to be invalid under
the Jarvis-Gann Initiative) of the gross receipts of the retailer
from the sale of all tangible personal property sold at retail in !
the City on and after the operative date of this ordinance, and i
during such time as this Chapter continues to be operative in the '
City. ~
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3.09.030 Operative and inoperative dates. This Chapter
shall become operative only on and after such date that the
Santa Clara County Uniform Local Sales and Use Tax Ordinance
, either (1) becomes inoperative or (2) while otherwise operative,
, affords to any other city in the County a greater rate of sales
and use tax than is afforded to the City of Cupeztino. This
Ordinance shall be inoperative at all times that the County of
, Santa Clara has an operative uniform local sales and use tax ,
ordinance under which the rate of sales and use tax afforded the
City of Cupertino is no less than the rate of such sales tax
' afforded to any other city in the County. This section shall be
interpreted and applied so as to achieve the purposes hereinafter
set forth in Section 3.09.040 of this Ordinance.
3.09.040 Pur ose. The City Council declares that this
ordinance s adopted to achieve the following, among other, pur-
poses, and directs that the provisions hereof be interpreted in
order to accomplish those purposes:
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(a} To adopt a sales and use tax ordinance which complies i
with the requirements and limitations contained in Government ~
Code Section 37101;
(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 inconsis-
tent with the requirements and limitationa contained in Government
Code Section 37101; ~
(c) To adopt a sales and use tax ordinance which can be I
adrainistered in a manner that will, to the degree possible, be
consistent with the provisions of the Government Code Section
37101, minimize the cost of collecting City sales and use taxes
and at the same time minimize the burden of record keeping upon
persons subject to taxation under the provisions of this ordinance.
(d) To ensure that, if the Santa Clara County Uniform Local
Sales and Use Tax Ordinance becomes inoperative, this City will
continue to rece3ve this essential source of revenue.
3.09.050 Administration, Rules and Re ug lations, and Joint
Powers A reement. The City Manager, or is designate representa-
~ve, s a be responsible for the collection of all sales and use
taxes provided for in this ordinance, and the performance of all
functions incident to the administration and operation thereof.
in connection therewith, the City Council may, from time to time,
adopt, by Resolution, such rules and regulations as it may deem are
needed effectively to implement this ordinance in a manner consis-
tent therewith. Further, the City may enter into a joint powers
agreement with any city in Santa Clara County, and/or the County,
and/or any other governmental agency, including, but ^ot limited
to, the State Board of Equalization for the centralized performance ;
of any of the foreqoing. !
3.09.060 Sales tax. For the privilege of selling tangible
persona property at retail, a tax is imposed upon all retailers in
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the City at the rate stated in Section 3.09.020 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.
3.09.070 Place of sale. For the purposes of this ozdinance,
all reta 1 sa es are consummated at the place of busineas of the
retailer unless the tangible personal property 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.
The gross receipts from such sales shall include delivery charges,
when such charges are subject to the State sales and use tax,
i regardlesa 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 of business, the place or places at which the
retail sales are consummated shall be determined under rules and
requlations to be prescribed and adopted by the State Board of
Equalization.
3.09.080 Use tax. An excise tax is imposed an the storage, ,
use or other consumption in this City of tangible personal pro-
perty purchased from any retailer on and after the operative date !
for storage, use or other consumption in this City at the rate' ~
stated in Sectfon 3.09.020 of the sales price of the property. i
The sales price shall include delivery charges when auch charges
are subject to State sales or use tax regardless of the place to I
which delivery is made.
3.09.090 Ado t3on of rovisions of State Iew. Except as
otherwise provided n t is or inance an except insofar as they
are inconsistent with the provisions of Part 1.5 of Division 2 of
the Revenue and Taxation Code, so far as they may be applicable,
all of the provisions of Part 1 of Diviaion 2 of the Revenue and
Taxation Code are adopted and made a part of this ordinance as
though fully set forth herefn.
3.09.100 Limitations on ado tion of State law. In adopting
the provis ons of Part 1 of D vision 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 Control, the State Board
of Equalization, the State Treasury, or the Constitution of the
State of California; the substitution shall not be made in those
sections, including, but not necessarily limited to, sections
referred to the exterior boundaries of the State of California,
where the result of the substitution would be to provide an exemp-
tion from this tax with respect to certain sales, storage, use or
other consumption of tangible personal property which would not
otherwise be exempt 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 and Taxation Code, i
or to impose this tax with respect to certain sales, storage, use
or other consumption of tangible personal property which would not ;
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be subject to tax by the State under the said provisions of that
Code; the substitution shall not be made in Section 6~01, 6702
(except in the last sentence thereof), G711, 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 in this State" in Section 6203 or in the definition
of that phrase in Section 6203.
3.09.110 Permit not re uired. If a seller's permit has been
issued to a reta ler under Sect on 6067 of the Revenue and Taxation
Code, an additional seller's permit shall not be required by this
ordinance.
3.09.120 Exclusions. There shall be excluded from the measure
of tax:
(a) The amount of any sales or use tax imposed by the State of
I, California upon a retailer or consumer;
(b) The storage, use or other consumption of tangible personal
property, the gross receipta from the sale of which has been aub-
ject to sales tax under a sales and use tax ordinance enacted by
any city and county, county, or city in this State;
(c) The gross receipts from sales to, and the storage, use
or other consumption of property purchased by, operators of common
carriers and waterborne vessels to be used or consumed in the
operation of such common carriers or waterborne vessels principally
outside of this City;
(d) The storage or use of tangible personal property in the
transportation or transmission of persona, property or cotmnunic-
ations, or in the generation, transmission or distribution of
electricity or in the manufacture, transmission or distribution
of gas in intrastate, interstate or foreign commerce by public
utilities which are regulated by the Public Utilities Commission
of the State of California.
3.09.130 Exemptions. (a) The amount subject to tax shall
not ~nclude any sales or use tax imposed by the State of California
upon a retailer or consumer.
(b) The storaqe, use or other consumption of tangible personal
property, the gross receipts from the sale of which have been sub-
ject to tax under a sales and use tax ordinance enacted by any city
and county, or city in this State shall be exempt from the tax due
under this ordinance.
(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 of waterborne vessels to be used or cansumed
principally outside the city in which the sale is made and directly
and exclusively in the carriage of persons or property in such
vessels for commercial purposes.
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(d) The storage, use, or other consumption of tanqible
• personal property purchased by operators of waterborne vessels
and used or consumed by such operators directly and exclusively
in the carriage of persons or property of such vessels for com-
mercial purposes is exempted from the use tax.
(e) 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 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 lawa of this State,
the United States or any foreign government.
(f) In addition to the exemptions provided in Section 6366
and 6366.1 of thP Revenue and Taxation Code ihe 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 aireraft 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 govern-
ment is exempted from the use tax. '
3.09.140 Amendments. All subsequent amendments of the Revenue
and Taxat on Co e w c 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, so far as applicable, shall automatically become a
part of this ordinance.
3.09.150 En'oinin collection forbidden. No injunction or
writ of mandate or ot er lega or equ ta e 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, so far as applicable,
of any tax or any amount of tax required to be collected.
3.09.160 Effect on Chapter 3.OB. From and after the operative
date of th s ordinance, Chapter 3.08 of the Cupertino Municipal I
e:ode shall be inoperative (but not repealed) and shall remain ~
inoperative and superseded by this Chapter 3.09 for all periods of `
time (but not otherwise) that th3s Chapter is operative in accord (
with Section 3.09.030 of this ordinance. However, in the event
the Santa Clara County Uniform Local Sales and Use Tax Ordinance
is hereafter amended so as to afford to all cities in the County
the right to levy a sales tax and use tax equal to a full one per- ~
cent, then the rate of tax imposed under Chapter 3.08 shall be
the rate described in Section 3.04.020, above.
3.09.170 Penalties. Any person violatin~ ~ny of the provisions
of is or inance s guilty of a misdemeanor, and upon conviction
thereof shall be punishable by a fine of not more than five hundred
dollars or by imprisonment for a period of not more than six months,
or by both such fine and imprisonment.
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3.09.180 Severability. If any section, subsection, sentence,
clause or phrase of this ordinancc is for any reason held by a
court of competent jurisdiction to be invalid, such decision shall
not affect the validity of the remaining portions of this ordinance.
The City Council of the City of Cupertino hereby declares that it ,
would have passed this ordinance and each section, subsection, ,
sentence, clause and phrase thereof, irrespective of the fact
that any one or more sections, subsections, sentences, clauses
or phrases be held im~alid or unconstitutional.
3.09.190 Urgency clause. This ordinance is an ordinance
relating to taxes or t e usual and current expenaes of the City.
it is an urgency ordinance affectinq, and for the immediate pre- ,
servation of, the public health, peace, safety and welfare, and
the same shall be and become effective immediately upon the date
of 3ts passage and adoption, although the same shall not be
operative other than as hereinabove set forth in this ordinance
and in Chapter 3.09 adopted hereby. The facts constitutinq such
urgency and emergency are as follows:
The City must act immediately to enact this ordinance because
of the threatened expiration of the Santa Clara County Uniform
Sales and Use Tax Ordinance, which in turn is caused by the serious
threat of one or more cities in this County withdrawing from their
present cooperative agreement and position with said Santa Clara
County, and further because of the constitutional amendment commonly
known as the Jarvis-Gann Initiative (Proposition 13) which, if
effective at all, will go into effect and be operative on July 1,
1978.
INTRODUCED and ENACTED at a regular meeting of the City Council
of the City of Cupertino this 26ch day of June, 197B, by the follow-
ing vote:
Vote Members of the City Council
AYES: Heyers. 0'Reefe, Rogera, Sparka,
Jackson
NOES : None
ABSENT: None
ABSTAIN: None
~D:
y , t~ Cupert ni
o`-
ATTEST:
~ G;
J
< ~r' '
Cit C er
/
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