Resolution No. 1896
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R.ESOLlJTION NO. 1896
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
DIRECTING THE EXECUTION OF AN AGREEMENT WITH THE STATE
BOARD OF EQUALIZATION FOR STATE ADMINISTRATION OF LOCAL
SALES AND USE TAXES.
THE CITY COUNCIL OF THE CITY OF VERNON RESOLVES AS FQLLOWS:
WHEREASI in accordance with.Part. 1..5 of Divislon. 2. of the
Revenue and Taxation Code of the State of Californi.a" the City of Vernon
has passed a uniform local sales and use tax ordinance, being Ordinance
No.. 690; and.
WHEREAS I Part 1. 5 of Division 2 of the Revenue &:. Taxation
Code of the State of California requires that the City shaH contract with the
State Board of. Equalization to perform all functions incident to the adminis-
trationand operation of the sales and us.e tax ordinance of said City; and
WHEREAS.. there has been presented to the C.ity Council.f:l,n
Agreement with the .State Board of Equalization for state administration of
the local sales and use tax ordinance;
NOW~ THEREFORE~ B.E IT RESOLVED;
SECTION 1:
That the City of Vernon shall execute a con-
tract with the State Board of Equalization to perform all functions. incident to
the administration of local sales and use taxes" which agreement by its
terms shall continue until September 301 1957" .andshall thereafter be reneWE d
automatically from year to yea.r unless one of the parties gives written notice
of terttlination at least two months before the end of the term; a copy of the
contractauthor!z.ed is attached hereto" marked Exhibit BAtI.
.SECTION 2:
The Mayor of the Cityo! Vernon is hereby
authorized to execute the Agreement for and on behalf. of' the City of VernoR.
SECTION 3:
The City Clerk of the City of Vernon shall
certify to the passage of this Resolution and thereafter and thereupon the sam!
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1 shall be in full force and effect.
2 A,OOPTED and APPROVED at au adjourned: regular. meeting
3 of .the City Council of the City of Vernon this 28th day of FebI'1la;ryl 1956.
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ATTEST:
G. A. ANDERSON~ CITY CLERK
By ~lty Clerk
STATE OF CALIFORNIA )
) SSe
COUNTY OF LOS ANGELES )
19 I. G. A. ANDERSON. City.Clerk of the City.of Yernon" do
20 hereby.certify that the foregoing Resolution No. 1896 was duly adopted by
21 the City CounciLof the City of Vernon" .and .approved by the )Jfayor Qfsaid
22 City" at areg1llaradjourned meeting ther.eof held on February 28" 1956.
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G.A. ANDERSON. CITY CLEXK
By
~....
Deputy City Clerk
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Ci ty .1
VERNON
. AGRWlfM FOR Sf ATE ADMINI STRATHNW I..OCAL SALES AND USE TAXES
To carry out Part 1.5 of Division 2 of the Revenue and Tuatlon Code and
the sales and use tax ordinance of the City hereinabove desianated. herein-
after called the City. copy of which ordinance is attached hereto. the City
and the State Board of Equalization, hereinafter called tbe Board. do agree
a8 follows:.
ARTICLE I
DEF I N ITI Otf~
Unless the context requires otherwise, wherever the following terms appear
in this Agreement they shall be interpreted to mean the following:
1. ~ocal Taxes" shall mean the sales and use taxes, penalties, and in-"
terest imposed by the City under an ordinance which complies with Part 1.5,
Division 2, of the Revenue and Taxation Code.
2. "Conforming Taxing Jurisdiction" shall 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 functions incident to the administration and operation of the
ordinance.
3. "Ci ty Ordinance" shall mean the Uniform City Sales and" Use Tax Ordi-
nance attached hereto, as amended from time to time.
ARTICLE II
ADMINISTRATION AHD COLLECTION OF LOCAL TAXES
;
A. Administration. The Board and the City agree that the Board shall
perform exclusively all functions incident to the administration and operation
of the Ci ty ordinance.
B. Other applicable laws. The City agrees that all provisions of law
applicable to the administration and operation of the State Sales and Use Tax
Law shall be applicable to the administration and operation of the City ordi-
nance and that money collected pursuant to the City ordinance may be deposited
in the State Treasury to the credit of the Retail Sales Tax Fund and may be
drawn from that Fund for the purpose of making refunds, for the purpose of
compensating and reimbursing the Board pursuant to Article IV of this Agree-
ment and for the purpose of transmitting to the City the amount to which the
City is entitled.
C. Transmittal of money. Except as otherwise provided herein, all local
taxes collected under the provisions of the City ordinance shall be transmitted
to the City monthly beginning in the fourth month following the effective date
of this Agreement. A statement shall be furnished indicating the amount with-
held pursuant to Article IV of this Agreement.
5.521 '2.'i6~
EXHIBIT "A II
D. Rules. The Board shall prescribe and adopt such rules and regulations
as in its judgment are necessary or desirable for the administration and opera-
tion of the City ordinance and the distribution of the local taxes collected
thereunder.
E. Preference. Unless the payor instructs otherwise and except as other-
wise provided in this Agreement, the Board shall give no preference in applying
money received for sales 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.
F. Security. The Board agrees that any security which it hereafter re-
quires to be furnished under the state Sales and Use Tax Law will be upon such
terms that it also will be available for the payment of the claims of the City
!:or local taxes owing to it as its interest appears. The Board shall not be
required to change the terms of any security now held by it and the City shall
not participate in any security now held by the Board.
G. Names of sellers. The Board agrees to furnish the names, addresses,
account numbers, and the business elassification codes of all sellers holding
sellers' permits within the City.
H. Ilecords of the Board. Subject to executive approval under Section
7056 of the Revenue and Taxation Code, the Board agrees to permit authorized
personnel of the City to examine the records and procedures of the Board con-
cerning taxpayers subject to the City ordinance.
I. City tax rate. The City agrees that any change in the rate of its
conforming local sales and use tax will be made effective at the beginning
of a calendar quarter and that it will give the Board at least two months'
notice thereof and that it will also give notice to the Board of Supervisors
of the County in which the City lies.
J. ~lnexaLion. The City agrees that the Board shall not be required to
give effect to an annexation, for the purpose of collecting and distributing
city sales and use taxes, earlier than the first day of the calendar quarter
which commences not less than two months after notice to the Board. The notice
shall include the address of the property nearest to the extended city bound-
ary on every street crossing that boundary.
ARTICLE III
ALLOCATION OF TAX
A. Deficiency determination. All local taxes collected as a result of
determinations or billings made by the Board, and all amounts refunded or
credited may be distributed or charged to the respective conforming taxing
jurisdictions in the same ratio as the taxpayer's self-declared local tax for
the period for which the determination, billing, refund, or credit applies.
B. Allocation. When the local tax is collected from or refunded or cred-
i ted to the following:
(1) Retailers having traveling sellers' permits or certificates of
authority to collect use tax issued by the Board;
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(2) Persons regarded by the Board as retailers pursuant to Section
6015 of the Revenue and Taxation Code;
(3) Per~ons 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 whicll 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
rlon(~ in a r1l<Ull1pr consistent with the (:conorllic and efficient performance of
the duties of the l10ard under the Revlmue and Taxation Code and the provisions
of this Agreement, the Board may clistdbute 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. \loloI' Vl'hid,'s. For the purpm,es of the foregoing allocation with
rf'specL to Vl~hicles required to be registered under the Vehicle Code, the arl-
drf'ss of the n:gistered owner appearing upon the application for registration
ma'y lJe used by the Board in determining th(~ county of use.
ARTICLE IV
COt~PEllSAT I 011
A. NIlIl1I'ralor. 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
ordinancps for Llle 1956-57 and succ(>(>cling fiscal years, respectively, sllall
be detprrnined in the mannpr herein set furU!. Such cost shall include costs
incurred by the Board and by 0 Lller StaLe ag(~ncies, including but not 1 imi ted
to the Attorney General, the State Controller, the State Personnel Board, the
SLate Treasurer, and the Department of Fi nance. Such cost is referred to as
"the administrative cost".
B. IJenominator. The amounts transferred during the 1956-57 and succeed-
ing fiscal years, respectively, froIIl the Retail Sales Tax F'und to conforming
taxing jurisdictions and to the General l;'und of tile State, pursuant to S(~ction
7102 of the Revenue and Taxation Code, together with amounts withheld pursuant
to this Article of this Agreement, shall be determined. Such alllounts are re-
ferred to as "the tax distributed".
C. Itat io. The administrati ve cost for the fiscal year shall be comparee!
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 p(~rcent.
This percentage is referred to as "the actual cost percentage" for the fiscal
year. The actual cost percentage computpd for the most recent fiscal YhlI' is
referTed to as "the tentative cost percentage".
D. COlllpensation. Frol!1 Llll> amounts otll\~rwise available for rlistriiJlltion
to the City during a fi~~cal year, the Board is entitled to the LlCtlld1 cost
percenLlge of ;.i1Ich ,UilOlll1ts as cOlilpensation to the Board and reilllbun;(>Ii!('Ui. to
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EXHIBIT "A"
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it for the cost of rendering the. service of administering the City ordinance.
There shall be withheld from amounts collected for the City the tentative cost
percentage of such amounts. When the actual cost percentage for a fiscal year
has been'computed, the amounts which should have been withheld shall be deter-
mined. If these amounts are less than those withheld using a tentative cost
percentage, the excess shall be included in the next distribution of money to
the City; if more, the deficiency shall be withheld from the next distribution
to the City.
E. Computation and notification. The costs and percentages required by
this Article shall be computed by the Board and approved by the Department of
Finance. The Board' will notify the Ci ty of the results of its computations
at least fifteen days before they are submitted to the Department of Finance
for approval. The tentative cost percentage shall be 1. 70% until the actual
cost percentage for the 1956-57 fiscal year is computed.
ARTICLE V
'MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first-class
United States Mail. A notification is complete when deposited in the mail.
Communications and notices to be sent to the Board shall be addressed to:
State Board of Equalization
Sacramento 8, California
Attention: Secretary
Communications and notices to be sent to the City shall be addressed to:
City Clerk, City of Vernon
City Hall
4305 Santa Fe Avenue ~
Vernon 58
Los Angeles County, 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 day
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EXHIBIT "A"
other than the first day of a calendar Quarter. This Agreement shall con-
tinue until September 30, 1957, and shall thereafter be renewed automatically
froa year to year unless one of the parties gives written notice of termina-
tion at least .two mpnths before the end of the term.
STATE BOARD OF EQUALIZATION
By
Secretary
CI1Y OF
VERNON
By
(Signature on, thi6 line)
R. J. 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. gm five copies of the Agreement, sending ill of them to the Secretary: state Board
of Equalization. Sacrl1lllento 8, California. (If the City 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 ~ copy a certified copy of the orde~,
motiOh or resolution of the City Council authorizing the execution of the Agreement.
Explanation
, When an Agreement 18 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, Itmay then be conformed to the approved copy.
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EXHIBIT "A"
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