Ordinance No. 690
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ORDINANCE NO. 690
AN ORDINANCE OF THE CITY OF VERNON1 IMPOSING 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 VERNON 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 Vernon.
SECTION 2:
PURPOSE.
The City Council of the City of
Vernon hereby declares that this ordinance is adopted to achieve the follow-
ing, 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 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 require-
ments 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 one
percent (1%) 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 deviation from.
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
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the burden of record keeping upon persons subject to taxation under the
provisions of this ordinance;
(e) To adopt a sales and use tax ordinance which can be adminis-
tered 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 April 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 this 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 April 1. 1956,
this ordinance shall not be operative until the first day of the first calendar
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 the Uniform Local Sales
and Use Tax Ordinance of the County of Los Angeles. State of California.
SECTION 4:
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
one percent (1%) of the gross receipts of the retailer from the sale of all
tangible personal property sold at retail in the City of Vernon on and after
the operative date of this ordinance.
(2) For the purpose of this ordinance. all retail sales shall be
presumed to have been consummated at the place of business of the retailer
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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 consummated 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 April 1. 1956.
applicable to sales taxes are hereby adopted and made a part of this section
as though fully set forth herein.
(2) Wherever. 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 Vernon shall be substituted
therefor. Nothing in this subdivision shall be deemed to require the sub-
stitution of the name of the City of Vernon 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 adminis-
tration or operation of this ordinance; and neither shall the substitution
be deemed to have been made in those sections. including. but not neces-
sarily limited to. sections referring to the exterior boundaries of the State
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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 said 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. 6715. 6737. 6797 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 seller1s
permit shall not be required by reason of this section.
(4) 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 prop-
erty 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 10catedJ 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 vessels of property to be used or
consumed in the operation of such common carriers or
waterborne vessels principally outside of this City.
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SECTION 5:
USE TAX.
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(a) An excise tax is hereby imposed on the storage, use or other
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consumption in the City of Vernon of tangible personal property purchased
from any retailer on or after the operative date of this ordinance. for
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storage. use or other consumption in the city at the rate of one percent
6 (10/0) of the sales price of the property. The sales price shall include de-
7 livery charges when such charges are subject to State sales or use tax
8 regardless of the place to which delivery is made.
(b) (1) Except as hereinafter provided. and except insofar as they
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10 are inconsistent with the provisions of Part 1.5 of Division 2 of the said
11 Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of
12 said Code. as amended and in force and effect on April 1. 1956. applicable
13 to use taxes are hereby adopted and made a part of this section as though
14 fully set forth herein.
(2) Wherever. and to the extent that, in Part 1 of Division 2
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16 of the said Revenue and Taxation Code the State of California is named or
17 referred to as the taxing agency. the City of Vernon shall be substituted
18 therefor. Nothing in this subdivision shall be deemed to require the sub-
19 stitution of the name of the City of Vernon for the word "State" when the
20 word is used as part of the title of the State Controller. the State Treasurer.
21 the State Board of Control. the State Board of Equalization, or the name of
22 the State Treasury. or of the Constitution of the State of California; nor shall
23 the name of the City be substituted for that of the State in any section when
24 the result of that substitution would require action to be taken by or against
25 the City or any agency thereof rather than by or against the State Board of
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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 storage. use or other consumption of tangible personal
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property which would not otherwise be exempt from this tax while such
storage, use or other consumption 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 respect to certain storage, use or other consump-
tion of tangible personal property which would not be subject to tax by the
State under the said 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, 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 pers onal property in
the transportation or transmission of persons. property or com-
munications. 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.
(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 water-
borne vessels principally outside the City.
SECTION 6.
AMENDMENTS. All amendments of the
said Revenue and Taxation Code enacted subsequent to the effective date of
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1:
1 this Ordinance which relate to the sales and use tax and which are not
2 inconsistent with Part 1.5 of Division 2 of the said Revenue and Taxation
3 Code shall automatically become a part of this ordinance.
4
SECTION 7:
ENJOINING COLLECTION FORBIDDEN. No
5 injunction or writ of mandate or other legal or equitable process shall issue
6 in any suit. action or proceeding in any court against the State or this City,
7 or against any officer of the State or this City, to prevent or enjoin the
8 collection under this ordinance. or Part 1.5 of Division 2 of the Revenue
9 and Taxation Code, of any tax or any amount of tax required to be collected.
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SECTION 8:
Any person violating any of the
PENALTIES.
11 provisions of this ordinance shall be deemed guilty of a misdemeanor, and
12 upon conviction thereof shall be punishable by a fine of not more than $500.00
13 or by imprisonment for a period of not more than six (6) months in the County
14 Jail of the County of Los Angeles. or in the City Jail of the City of Vernon. as
15 the committing magistrate may direct. or by both such fine and imprisonment.
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SECTION 9:
If any section. subsection,
SEVER.ABILITY.
17 sentence, clause. phrase or portion of this ordinance, including but not
18 limited to any exemption, is for any reason held to be invalid or unconstitu-
19 tional by the decision of any court of competent jurisdiction, such decision
20 shall not affect the validity of the remaining portions of this ordinance. The
21 Council of the City of Vernon hereby declares that it would have adopted this
22 ordinance and each section, subsection, sentence. clause. phrase or portion
23 thereof. irrespective of the fact that anyone or more sections, subsections,
24 sentences. clauses, phrases or portions be declared invalid or unconstitutional.
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SECTION 10:
OPERATIVE DATE.
The operative date of
his ordinance is April 1, 1956.
SECTION 11:
EFFECTNE DATE.
This ordinance pro-
vides for a tax levy for the usual and current expenses of the City of Vernon.
and shall take effect immediately.
SECTION 12:
There being no newspaper of general circulation
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1 printed, published and circulated in the City of Vernon. the City Clerk
2 is hereby directed to certify to the passage of this Ordinance. and shall
3 post same. or cause same to be posted. in three of the most public
4 places in said City, to wit: The northwest corner of 38th Street and Santa
5 Fe Avenue; the northeast corner of Leonis Boulevard and Pacific Boule-
6 vard; and on the bulletin board in the lobby of the City Hall of said City.
7 located at 4305 Santa Fe Avenue. all in the City of Verno:q, Los Angeles
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8 County, California.
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ATTEST:
G. A. ANDERSON" CITY CLERK
14
J
B yI ~/"CC-1/)/'-':.../\..
~"_.-,+- /. ----
, Deputy City Clerk
15
STATE OF CALIFORNIA )
) SSe
COUNTY OF LOS ANGELES )
I" G. A. ANDERSON. City Clerk of the City of Vernon. do hereby
certify that the foregoing Ordinance No. 690 was duly and regularly intro-
21
duced at a regular meeting of the City Council of the City of Vernon held on
February 21. 1956, and thereafter finally adopted at an adjourned regular
c
meeting held on February ;)~,-. 1956. at 1.(}(~ o"clock a. m. by the follow-
ing vote:
AYES:
Councilmen
/I h/t>t:"l? 5 (, Ji,' i
F-~"~I( t~ /' i\. c:
NOES: Councilmen ;1/ ~ Ii- t.;.
ABSENT: Councilmen IV /..' 11/ IE
-8 -
11-1/1 Il. j, / A i\ t) /14l1l /] ic If C,,, P (' X'D I\.,
/
G. A. ANDERSON" CITY CLERK
By _ c1Z/l}/[~t/L____
c/ Deputy City Clerk
1
AFFIDAVIT OF POSTING
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4
ST ATE OF CALIFORNIA
)
)
) SSe
)
)
5
COUNTY OF LOS ANGELES
CITY OF VERNON
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8 I" G. A. ANDERSON. City Clerk of the City of Vernon. do
9 hereby certify that I did on the ,)~ day of ,] .....l~~,\...~J.- . 1956.
10 post three (3) copies of Ordinance No. 690. one in each of the following
11 places. to wit: At the northwest corner of 38th Street and Santa Fe
12 Avenue; at the northeast corner of Leonis Boulevard and Pacific Boule-
13 vard. and on the bulletin board in the lobby of the City Hall located at
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14 4305 Santa Fe Avenue, in said City, there being no newspaper of general
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circulation printed and published in the City of Vernon.
Signed this ;"1{ day of ,1 ~t,~/ , 1956.
G. A. ANDERSON.>> CITY CLERK
~
By.' " '-Cf1,,-t//lj
\~ Deputy City Clerk
Subscribed and sworn to before me this
,.s~._ day Of~ . 1956.
--;, J . ~ ifJ. a...r-
N;:-5tary Pu lie in and for e County of
Los Angeles. State of California.
My Commission Expires Oct. 24, 1958
SUPPORTING
DOCUMENTS
GEOR~E R. REILLY
FtRS~ ?ISTftICT, SAN FRANCISCO
PAUL R. LEAKE
JAMES-H. QUINN
CHAIRMAN
SECOND DISTRICT, OAKL.AND
ROBERT E. McDAVID
VICE-CHAIRMAN
PAUL R. LEAKE
THIRD DISTRICT, WOODLAND
DIXWELL L. PIERCE
SECRETARY
ROBERT E. McDAVID
FOURTH DISTRICT, L.QS ANGEl,ES
OFFICE OF
. . ", ,J;
\\\*"",- ...
STATE BOARD OF EQUALIZATION
STATE OF CALIFORNIA
1020 N STREET
ROBERT C. KIRKWOOD. CONTROLLER
SACRAMENTO
SACRAMENTO
MAIL ADDRESS: P. O. Box 1799
SACRAMENTO 8. CALIFORNIA
March 19, 1956
Agreement for State Administration
of City Sales and Use Tax
) C(
Mr. G. A. Anderson
City Clerk
City Hall
4305 Santa Fe Avenue
Vernon 58, California
MI\R ?01q$
J..o'.
f!
Dear Mr. Anderson:
A
il.....'..
f.
Here is the City of Vernon copy of our Agreement for
State Administration of your City Ordinance No. 690 to be known
as the Uniform Local Sales and Use Tax Ordinance of the City of
Vernon.
The enclosure has been duly executed on behalf of this
Board and bears endorsement of approval by the State Department
of Finance as of March 12, 1956. It will become operative on
April 1, 1956, when the City Ordinance goes into effect. This
has been made possible because Los Angeles County, in which
Vernon is located, has become a conforming county through
similar procedure with respect to a county sales and use tax.
~
)
With forms for their State sales and use tax returns
covering periods ending March 31, 1956, we are sending to Vernon
retailers a letter telling them that we have entered into this
contract with the City and that they will be expected to pay a
one percent local tax in addition to the three percent State tax.
We have also told the retailers that when forms are sent for
sales tax returns covering periods commencing on or after April 1,
provision will be made for them to add the City tax to the
remittance that will cover their State tax liability.
As provided in Section C, Article II of our Agreement,
we plan to begin monthly transmittals to the City of local tax
collections in July 1956. Since most retailers pay on a calendar
quarter basis the collections available in July, representing tax
payments made with respect to April business by retailers report-
ing on a monthly basis, will be relatively small. The same will
be true of collections sent in August but in September payments
made for the quarter ending July 30 should result in a substan-
tially larger remittance to you. The same cycle will be repeated
every three months.
Mr. G. A. Anderson
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March 19, 1956
As provided in Article IV of our Agreement, 1.7 percent
of the collections that we make on behalf of the City will be
deducted from the amounts that we remit to you.
So that we may ascertain whether the places of business
are in your City and see that the tax proceeds are paid over to
the City accordingly, we have verified the accuracy of the code
numbers assigned to sales tax accounts by use of the 1956 edition
of Thomas Brothers' Popular Atlas of Los Angeles County. Please
let us know as soon as possible whether any of the boundaries of
your City as of April 1, 1956, will differ from those shown in
this atlas.
If any correction is required to reflect the April 1
boundaries of your City, please supply us with the following:
1. A list of the street names and the inclusive street
numbers of any streets that the atlas shows to be outside of your
City but which will be inside the City limits on April 1;
2. A similar list of any streets that the atlas shows
to be inside of your City but which will be outside of the City
on April 1.
You are reminded that any changes in City boundaries
occurring after that date should be called to our attention in
accordance with Section J of Article II of our Agreement for
State Administration of Local Sales and Use Taxes. This is
important in order that sales tax receipts may be properly
allocated to the City.
We are happy to have this opportunity to be of service
to the City of Vernon and look forward to a most pleasant
relationship with you in this connection.
Slncerel~ yours, ~
A;t "'-~cl f 62.ld~~, 2
SECRETARY
.....
DLP:T
Enc.
""
,(
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RESOLUTION NO. 1896
A RESOLUTION OF THE CITY COUNCIL OF THE CfrV OF VERNON
OffiECTING THE EXECUTION O~... AN AGREEMENT WITH THE STATE
BOARD OF EQUALI:i'ATION Fon STAT.E~ ADMINISTRATION OF LOCA.L
SALES AND USE TAXES.
THE CITY COUNCIL OF THl~ CITY OF' VERNON RESOI...VES AS FOLLOWS:
W'HEREAS. in accordance with Part 1. 5 of Division 2 oi' the
Revenue and Taxation Code of the State of California. the Cit:,f of Vernon
has passed a uniform local sales and use tax ordinance.. being Ordinance
No. 690i and
WHEREAS. r'art 1.5 of Divlsion 2 of the Revenue &: Taxation
Code of the State of California requh'es that the City ehall comr'&ct with the
State Board of EquaU4ation to perform aU functions incident to the adminis-
tration and operation of the sales and use tax ordinanc(~ of said City. and
~VHERi;AS" there bal:!1 been presented to the City CO\4'lcil an
Agreement with the State Board of Equali;.~ation :for state adminiah'1ltion of
the local sales and use tax ordimU1Ci!'..~;
NOW. THEREFOlU~. BE IT R1SSOLVED:
SECTION 1:
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That the City of Vernon shall executo a con-
tract with the State Board of EquaUJ:eation to perform all functions incident to
the administration of local salee and use tax(!S" which agreclnent by its
terms shall contb1uC until Septcl1)ber 30. 1957.. and shalltbereafter bercmewe
automatically from year to year unless one of the parties gives writte&1 notice
of termination at least two ttlontns before the end of the term; a copy of the
contract authori~ed is attached bel'eto" marked Exhibit 'A .
SECTION 2:
The Mayor of the Cit, of Vernon ie hereby
authorized to execute the Agreement for and on behalf of the City of Vernorl.
SECTION 3:
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The City Clerk of the City of Vernon shall
certify to the passage of. this Resolutiorl and th{~reattcr and th.:'reupon the same
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shall be in full force and effect.
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ADOPTED and APPROVED at an adjourned ~"eblUlar met~ting
3 or the Clty Council of th~! City Vernon this 28th day of Fbr-uary. 1~~51.
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J. 'FUR1.()NQ
Mayor of the city . Of :V crnon
ATTEST:
G. A. ANDERSON. CrrY CLERK
By i? ,f'!. IfC4!"lEfi
10 - ~.. .. ..-"- n(:pufy City Clerk-
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19 I. G. A. ANDEItSON. City Clel'k of the City of VCJnlOO# do
STATE OF CAt.IFOHNlA )
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COUNTY 01" LOS ANGEI..E~'~ )
20 hereby cel1.uy that the foregoing Resolution No. 1896 wu duly adopted by
21 the City Council of the City of Vernon.. and approved by th(! Mayor of said
22 City. at a regular adJourned meeting thereof held on F<:bru&f')" :,~3. 1956.
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G.A.A~~N:~Cl.ERK
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1:
Deputy City Clerk
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Ci ty of
VERNON
AGREEMENT FOR STATE ADMINISTRATION OF LOCAl.. SALES AND USE TAXES
To carry out Part 1.5 of Division 2 of the Revenue and Taxation Code and
the sales and use tax ordinance of the City hereinabove designated, herein-
after called the City, copy of which ordinance is attached hereto, the City
and the State Board of Equalization, hereinafter called the Board, do agree
as follows:
ARTICLE I
DEF I N I TI OU S
Unless the conteJ!:f,;~~ltesotherwise, wherever 'thefoUowing terms appear
in this Agreement they'sffall be interpreted to mean the following:
1. "Local Taxes" sh~~line4n the sales and use taxes, penal ties, and in-
terest imposed by the.CiIty'under an ordinance which complies wi th Part 1. 5.
Divisi.on 2, ~f the REh,:entl.eand Tax~tion Code.
2. "Conforming 1i-.xinlt Jurisdiction" sha.!l mean anY county. city. or city
and county of this State which has adopted a sales and use tax ordinance of
the kind described in Part 1.5 of Division 2 of the Revenue and Taxation Code
and which has entered into a contract with the State Board of Equalization to
perform all functiohs irtcfdentto the adminLstration and operation of the
ordinance. '
3. "ei ty Ordinance" shall mean the Uni form City Sales and Use Tax Ordi-
nance attached hereto, as amended from time to time.
ARTICLE II
ADMHHSTRATION AUD COLLECT I ON OF LOCAL TAXES
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A. Admini str....'H..';~, .,..the Board. and the.. Ci ty, a~re,e that the Board shall
perform exclusively 41' fulictions incident to the admints,tration and operation
of the City ordinance: .. .... ... . ,
B. Other applicable lI..,.... The City agrees that all provisions of law
applicable to the ad'R~islration and operation of the State Sales and Use Tax
Law shall be applica~..,.p,e..,'adIH~1.strationandE)~~r,ftion of the City ordi-
nance and that moneY~~l,. ~ ;ursuant .to t~e.City ofdt~ance m~ be deposited
in the State TreaSUry.t~$'~'ehecredit of. thelte't'aU'aal;e.s Tax Fund and may be
drawn from that FU)1;4fo"~'~lepurpos,e of lI\aki~g.refW1~.S, for the purpose of
compensating and re~~~ "at tile, Bo.ardpufsHarit.to ..Article IV of this Agree-
ment and for the putpQ Q".fj.'transmitting to the C(ty the amount to which the
City is entitled.
C. Trallsmi ttaloi money. Except as otherwise prOVided herein. a 11 local
taxes collected under. the provisions of the Ci.ty ordinance shall be transmitted
to the Ci ty monthl)t.\~lnptllg in the four.th m.onth follq\ying the effective date
of this Agreement.~f""~f1.t~~~f1tsha,.ll be furnir;;hed i'9di'c~ting the amount with-
held pursuant to Arti91~"~Vl;.~thiS Agreement.
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D. Rul es. The Board. shall prescribe and adopt ~Uchrules and regulations
as in its judgment are necessary or desirable for' theaomlnistration and opera.
tion of the Ci ty ordinance and the distribution of the local taxes collected
thereunder.
E. Preference. Unles:?{tbepayor instructs otherwise and except as other-
wise provided in thisl\greem>ent, the Board shall give no preference in applying
money recei ved for sal es and use taxes owed by a taxpayer but shall apply all
monies collected to the satisfaction of the claims of the state and the claims
of the City as their interests appear.
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F. Securi ty. The.Board agrees that any securitYWkich it hereafter re-
quires to be furnished under the State Sales and Use' Ta~}Law .will be upon such
terms that it also wi'~l.f~,,',~vai.lable for the p~me~:t ~olJthe claims of the City
;~~ui~~~l t;a:;:n~:\~ge~~~t ci~;: ~~~ri~~~;rig~e:!ti~~~tt*a:n~~h~h~~~yn~~a~~
not participate in any seoor1 ty now held by the Boardf
G. Names of sellers. The Board agrees to furnish the names, addresses,
account numbers, and the businQss tlassification codes of all sellers holding
sellers' permits within the City.
H. Records of tlteBoard. Subj ect to executiv~'~proval under Section
7056 of the Revenue.andTa~atioll Code, the Board agre~sto permit authorized
personnel of the Ci t~toexami.llQ thexecords and proC.QdUres of the Board con-
cerning taxpayers Su~)...ect tothe.Ci ty ordinance.'" .
1. Ci ty tax rate~. ,:The,Cit.yagrees that any qhange in the rate of its
conforming local sal~sa.p:.d~se tax will beml\dee{fe~tive at the beginning
of a calendar quartQt an<t'tl'iat it wil.l gi va the Board/at least two months'
notice thereof and that it wi.! r also give notieE# to the Board of Supervisors
of the County in which theCi~y lies.
J. Annexation. The 'dityagrees that the Board shall not be requiredtp
gi ve effect to an annexation, for the purpose of collecting and distributing
city sales and use taxes, earlier than the first daY~f the calendar quar:ter
which commences not. l~sst~J:l;two .months after ;notic~t(),.t.1l.~ Board. The notice
shall incl ude thea:ddreS~~t+r~lJe/,property nearest to"th~,Et~tended ci ty bound-
ary on ev'ery street crosSing that boundary. ';'J:~'}
ARTICLE III
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ALLOCATION OF TAX
A. Deficiency dete~.ination. . All local taxes collected as a result of
determinations or billings made by the Board, and all amountFl refunded or
credited may be di'stributed or charged to the respective conforming taxing
jurisdictions in the same ratio as the taxpayer's self-declared local tax for
the period for whioh the determination, billing, refund, or credit applies.
B. Allocation.. When the local tax is collected from or refunded or cred-
ited to the follOWing: .
(1) Retailers having traveling sellers' permits or certi ficates of
authority to collect use tax issued by the Board;
5.527 (2.56)
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EXHIBIT "A"
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(2) Persons regarded by the Board as retailers pursuant to Section
6015 of the Revenue and Taxation Code;
(3) Persons for whom no continuing account number was active at the
date of payment; or
(4) Other retailers or purchasers having no permanent place of busi-
ness within the State as determined by the Board;
or when the local tax is collected by way of deduction from refunds of motor
vehicle fuel license taxes, the Board may distribute or charge such local tax
to all ~onforming taxing jurisdictions in the county in which the sale or use
occurred uSing the ratios reflected by the distribution of taxes collected
from all other taxpayers in that county. To the extent that this cannot be
done in a manner consistent with the economic and efficient performance of
the duties of the Board under the Revenue and Taxation Code and the provisions
of this Agreement, the Board may distribute or charge such local tax to all
conforming taxing jurisdictions of this State using the ratios reflected by
the distribution of taxes collected from all other taxpayers in the State.
C. Motor Vehicles. For the purposes of the foregoing allocation with
respect to vehicles required to be registered under the Vehicle Code, the ad-
dress of the registered owner appearing upon the application for registration
may be used by the Board in determining the county of use.
ARTICLE IV
COt~PENSAT I ON
A. Numerator. The cost of administering Parts 1 and 1.5 of Division 2
of the Revenue and Taxation Code and the conforming local sales and use tax
ordinances for the 1956-57 and succeeding fiscal years, respectively. shall
be determined in the manner herein set forth. Such co.st shall include costs
incurred by the Board and by other State agencies, including but not limited
to the Attorney General, the State Controller, the State Personnel Board, the
State Treasurer, and the Department of Finance. Such cost is referred to as
"the administrative cost".
B. Denominator. The amounts transferred during the 1956-57 and succeed-
ing fiscal years, respectively, from the Retail Sales Tax Fund to conforming
taxing jurisdictions and to the General Fund of the State, pursuant to Section
7102 of the Revenue and Taxation Code, together with amounts withheld pursuant
to this Article of this Agreement, shall be determined. Such amounts are re-
ferred to as "the tax distributed".
C. Ratio. The administrative cost for the fiscal year shall be compared
to the tax distributed during the fiscal year and a percentage computed. Such
percentage shall be rounded off to the nearest one hundredth of one percent.
This percentage is referred to as "the actual cost percentage" for the fiscal
year. The actual cost percentage computed for the most recent fiscal year is
referred to as "the tentative cost percentage".
D. Compensation. From the amounts otherwise available for distribution
to the City during a fiscal year, the Board is entitled to the actual cost
percentage of such amounts as compensation to the Board and reimbursement to
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EXHIBIT "A"
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. it for the cost of n'l1dering the service of arlministering the City ordinance.
There shall he withheld from amounts colle~ctecl for the Citytht' tentative cost
percentage of such amounts. \\l1el1 the actual cost percentage for a fiscal ypur
has hpen computed, the amounts which should have heen withheld shall lH' ddc'r-
mined. If tlj(lsP amounts an~ less than those withheld using a tentative Cllst
percentage, the excess shall be included in the next'distributiol1 of Illoncy to
the City; if more, the deficiericy shall bf> withheld from the next di st.ri but ion
to the Ci ty.
E. COlllputalion Hnll noli ficulion. The costs and percent.ages requin)(j by
this Articlp shall be computed by the Board and approved by thp Depal'tlllt'Jlt of
Finance. The Board will notify lhe Ci ty of lhe results of its COIII(lut~ltions
at least fifteen clays before they an' submitted to the Departm{)nt of 1"lImllCf>
for approval. The tpntative cost percentage shall be 1. 70% until tJl{' actual
cost percentage for the 1956-57 fiscal year is computed.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. LOfllfllllnil'ulillns. Communications anej notices may be sent by first.-("l[t~;~,
United Stalps Mail. A notification is complete when deposited ill Llll' mail.
COfllfTlunicat ions amI notices to be sent to the Board shall tH' addrc~ssl'd t.o:
SLatl~ Hoard of EQual ization
Sac rarnpn t.o H, ra Ii fo I'll i (I
Attention: Spcret.nry
Communications fwd notices to be sent. to the City shall be addressed to:
City Clerkl City of Vernon
CityHa 11
4305 Santa Fe A venUt'
Vernon 59
! 0:3 An,;.;eles COll"~.Y1 California
B. Term. The date of this Agreement is the date on which it is approved
by the state Department of Finance. The Agreement shall take effect on the
first day of the calendar quarter next succeeding the date of such approval,
but in no case before the operative date of the City ordinance, nor on a du.y
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EXHIBIT "A"
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other than the first day of a calendar Quarter. This Agreement shall con-
tinue until September 30, 1957, and shall thereafter be renewed automat'ically
from year to year unless one of the parties gives written notice of termina-
tion at least two months before the end of the term.
STATE. BOARD OF EQUALIZATION
By
Secretary
,
CIlY OF
VERNON
By
(Signature on this line)
R. .T. Furlong
(Type name here)
Mayor
(Type title.here)
IMPORTANT INSTRUCTIONS
1. Insert name of the City at top of page 1; insert address for communications and notices
to City in Section A, Article V.
2. Sign five copies of the Agreement, sending all of them to the Secretary, state Board
of Equalization. Sacramento 8, Cal ifornia. (If the Ci ty desires. to keep a file copy
of the Agreement, an additional copy should be prepared for that purpose. )
3. Attach to each copy of the Agreement sent to the Board, a certified copy of the City
Sales and Use Tax Ordinance, also attach to each copy a certified copy of the order,
motioh or resolution of the City Council authorizing the execution of the Agreement.
Explanation
MIen an Agreement is transmitted in accordance with the foregoing instructions, it will
be executed on behalf of the Board and submitted to the state Department of Finance for
approval. When approved, one copy will be returned to the City with endorsement of approval.
If a copy has been retained by the City, it may then be conformed to -the approved copy.
$.527 (2.56)
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EXHIBIT itA"
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