Resolution No. 71181
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RESOLUTION NO, 7118
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF VERNON APPROVING AND AUTHORIZING THE
EXECUTION OF AN AGREEMENT FOR CONSULTING
SERVICES BY AND BETWEEN THE CITY OF VERNON AND
HDL COREN & CONE
WHEREAS, the City of Vernon requires assistance in
levying a special tax on parcels within the City that are subject
to the voter -approved special parcel tax imposed by Ordinance No.
1057; and
WHEREAS, the City of Vernon desires to use HdL Coren &
Cone to perform and provide such services for the City; and
WHEREAS, HdL Coren & Cone has submitted a proposal to
the City of Vernon to perform all tasks needed to complete and
submit special taxes to the County for the taxes to appear on the
property tax bills.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby approves the Consulting Services Agreement with HdL Coren &
Cone for the preparation of a tape for the transmittal of special
taxes and submittal to Los Angeles County, a copy of which has
been presented to the City Council concurrently with this
resolution, and the City Council hereby orders said Agreement to
be received and filed by the City Clerk.
SECTION 3: The City Council of the City of Vernon
hereby authorizes the Mayor and the City Clerk to execute said
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1 Agreement for, and on behalf of, the City of Vernon.
2 SECTION 4: The City Clerk of the City of Vernon shall
3 certify to the passage of this resolution, and thereupon and
4 thereafter the same shall be in full force and effect.
5 APPROVED AND ADOPTED this 28th day of April, 1998.
6
7 LEONIS C. MALBURG, Mayor
8 ATTEST: -7
BRUCE V. MALKENHORST, City Clerk
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I STATE OF CALIFORNIA )
)ss
2 COUNTY OF LOS ANGELES )
3 I, BRUCE V. MALKENHORST, City Clerk of the City of
4 Vernon, do hereby certify that the foregoing Resolution, being
5 Resolution No. 7118, was duly adopted by the City Council of the
6 City of Vernon at an adjourned regular meeting of the City Council
7 duly held on Tuesday, April 28, 1998, and thereafter was duly
8 signed by the Mayor of the City of Vernon.
9
10 BRUCE V. MALKENHORST, City Clerk
11 (SEAL)
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CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX: (213) 581-7924
FEDERAL EXPRESS
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (213) 583-8811
April 23, 1998
Mr. Martin C. Coren
HdL Coren & Cone
The HdL Companies
1340 Valley Vista Drive, Suite 200
Diamond Bar, California 91765
Re: Professional Consulting Services Agreement
Dear Mr. Coren:
w )�
.v.." ..
DAVID B. BREARLEY
City Attorney
FAX: (818) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (213) 588-2761
KENNETH J. DeDARIO
Director of Light & Power
FAX: (213) 583-1983
DAVE TELFORD
Fire Chief
FAX: (213) 581-1385
LOUIS ROSENKRANTZ
Police Chief
FAX: (213) 581-1178
Enclosed for signatures are duplicate originals of the above -
referenced agreement, reflecting the changes we discussed this
afternoon.
Please return both signed originals directly to the City
Administrator/City Clerk of the City of Vernon by noon April 28,
1998. We ask that the agreement be signed by two corporate
officers -- preferably, by the president and secretary. For your
files, a copy of the agreement is also enclosed. The City Clerk will
return a conformed original to you once the agreement has been
approved by the City Council on April 28, 1998.
Additionally, please include the original of your proposal
letter dated April 21, 1998.
For your convenience, please find enclosed a return prepaid
Federal Express envelope addressed to the City Clerk's office.
Please call if.you have any questions..
Very truly yours,
DAVID B. BREARLEY, Legal Counsel
Richard orillo, Attorney
DBB:RJM:nc
Enclosures
cc: Bruce V. Malkenhorst, City Administrator/City Clerk (w/o encls.)
wi
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Execution Copy
CONSULTING SERVICES AGREEMENT
THIS AGREEMENT is made, entered into and executed in
duplicate originals, either copy of which may be considered and
used as the original hereof for all purposes, as of this
day of 1998, in the City of Vernon, County of Los
Angeles, California
BY AND BETWEEN THE CITY OF VERNON (hereinafter
referred to as the "City")
4305 Santa Fe Avenue
Vernon, California, 90058
AND HdL COREN & CONE (hereinafter
referred to as "Consultant")
1340 Valley Vista Drive
Suite 200
Diamond Bar, CA 91765
WHEREAS, the City requires Consultant to perform and
provide assistance in levying a special tax on parcels within the
City of Vernon that are subject to the special voter -approved
parcel tax imposed by Ordinance No. 1057 ("Qualified Parcels");
and
WHEREAS, the City desires to engage the Consultant for
the services hereinafter described; and
WHEREAS, the Consultant represents that it is qualified
to perform such service under this Agreement for Consulting
Services (hereinafter "Agreement").
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS
SET FORTH HEREIN:
1. SCOPE OF SERVICES
Consultant shall perform all requested services in their
entirety as follows:
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A. Identification of Oualified Parcels. This task
is to be accomplished utilizing property, sales and business data
bases maintained by the HdL Companies and the City. In addition,
and to the extent necessary, the HdL Companies will provide a
field survey to verify additional parcels that may be Qualified
Parcels;
B. Calculation of Tax. Once Qualified Parcels are
identified, HdL Coren & Cone will research the square footage of
each parcel and enter that information into a data base or
spreadsheet for the purpose of applying the special tax on each
Qualified Parcel;
C. Transmission of Data to County of Los Angeles.
HdL Coren & Cone will prepare a tape for the transmittal of the
special tax and transmit the tape to Los Angeles County in a
timely manner so the special tax will appear on the 1998-99
1property tax bills of Qualified Parcels.
2. TIME OF PERFORMANCE
Consultant's services herewith shall commence upon
signing of the Agreement and all tasks are to be completed, and
the special assessments submitted to the County.of Los Angeles, as
soon as possible, but no later than August 1, 1998, for the
assessments to appear on the property tax bills.
3. COMPENSATION
The City shall compensate the Consultant for the services
performed as follows:
A. Items A. and B. referenced in paragraph 1 above
Iat Fifteen Dollars and No Cents ($15.00) per hour; and
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B. Item C. referenced in paragraph 1 above is Six
Hundred Dollars and No Cents ($600.00).
4. METHOD OF PAYMENT
Within thirty (30) days after the last day of any month
in which services have been performed or costs incurred hereunder,
the Consultant shall submit an invoice to the City stating the
amount due the Consultant. The invoice shall also contain an
itemization of directly related job expenses and subcontract
charges incurred by the Consultant and for which compensation is
due.
Payment of the invoice shall be made after acceptance and
approval by the City within thirty (30) days of receipt of such
invoice. The City's approval of the invoice shall not be
unreasonably withheld.
5. CHANGES AND EXTRA SERVICES
The City reserves the right to request changes in the
services to be performed by the Consultant. All such changes
shall be incorporated in written change orders executed by the
City and the Consultant which shall specify the changes ordered
and the adjustment of compensation and completion time required
thereof.
Any services added to the scope of this Agreement by a
change order shall be executed under all applicable conditions of
this Agreement. No claim for additional compensation or extension
of time shall be recognized unless contained in a duly executed
change order.
6. CONFIDENTIAL INFORMATION
A. Access to Confidential Information. The City of
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Vernon may provide Consultant with, or allow Consultant access to,
certain information not available to the public concerning the
City of Vernon, or businesses located in the City of Vernon. The.
information may include company information, taxes, sales, value
of assets, or other such information. All such information shall
be known as "Confidential Information" and may not be used to
circumvent the responsibility of either party to this Agreement.
B. No Disclosure. Except as expressly permitted,
Consultant shall not disclose, permit the disclosure of, release,
disseminate, or transfer, whether orally or by any other means,
any part of such Confidential Information to any other person or
entity, whether corporate, governmental, or individual, without
Ithe express prior written consent of an authorized representative
of the City of Vernon. Consultant shall return any written
Confidential Information, and all copies made of such items, to
the City upon the City's written request, but in any event not
later than the date that the Consultant has performed all services
to be performed pursuant to this Agreement. Consultant hereby
(agrees that such Confidential Information and any documents
provided may be used by Consultant only as authorized by the City
or the City of Vernon. Consultant shall take reasonable measures
to avoid any disclosure of any such Confidential Information to
any unauthorized person.
C. Court Ordered Disclosure. Consultant shall
immediately notify the City of any court order or subpoena
requiring disclosure of Confidential Information, and shall
cooperate with legal counsel in the appeal or challenge of any
such order or subpoena. Recipient may only disclose Confidential
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Information required to be disclosed pursuant to court order or
subpoena after legal counsel has exhausted any lawful and timely
appeal or challenge.
D. Remedies. In addition to any other remedies that
it may have at law or in equity, the City shall be entitled to a
temporary and permanent injunction by a court of competent
jurisdiction -against any breach or threatened breach of the
Confidential Information provisions of this Agreement. Consultant
acknowledges that incase of such breach or threatened breach of
said provisions, the City would have no adequate remedy at law.
7. GENERAL PROVISIONS
A. Independent Contractor. At all times during the
term of this Agreement, the Consultant shall be an independent
contractor and shall not be an employee of the City. The City
shall have the right to control the consultant only insofar as the
results of the Consultant's services rendered pursuant to this
Agreement; however, the City shall not have the right to control
the means by which the Consultant accomplishes services rendered
pursuant to the Agreement except to the extent that such services
involve the use of City of Vernon property or Confidential
Information.
B. Consultant Not Agent. Except as the City may
specify in writing, the consultant shall have no authority,
express or implied, to act on behalf of the City in any capacity
(whatsoever as'an agent. The Consultant shall have no authority,
expressed or implied, pursuant to this Agreement to bind the City
to any obligation whatsoever.
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C. Governing Law. The laws of the State of
California shall govern the rights, obligations, duties and
liability of the parties to this Agreement and shall also govern
the interpretation of this Agreement.
D. Assignment Prohibited. This Agreement is not
assignable either in whole or in part by HdL Coren & Cone or the
City of Vernon without the written consent of the other party.
E. Termination. This Agreement may terminate each
year upon written notice thirty days (30) days prior to the
anniversary date of the Agreement.
F. Indemnification. The Consultant shall indemnify,
defend, protect and hold the City and its officers, agents and
employees, free and harmless from and against any and all claims,
demands, losses, damages, liabilities, fines, charges, penalties,
orders, judgments, and all costs and expenses incurred in
connection therewith, including reasonable attorney's fees and
costs of defense arising out of the services performed under this
Agreement, except to the extent arising from or caused by the sole
negligence or willful misconduct of the City, its officers, agents
or employees.
G. Comprehensive General and Automobile Insurance.
The Consultant agrees to provide insurance in the amounts and
forms specified in Exhibit "A," which is attached hereto and made
a part hereof by reference. Comparable coverage shall be provided
for each subcontractor used in the performance of this Agreement.
The Consultant shall submit to the City documentation indicating
compliance with these minimum requirements no less than one (1)
day prior to the beginning of performance under this Agreement.
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The Consultant shall not commence performance of its services
under this Agreement until the above insurance has been obtained
and proof of insurance has been filed with and approved by the
City.
H. Attorneys Fees. In the event that it becomes
necessary for either party to this Agreement to enforce any of the
provisions of this Agreement, the parties agree that a court of
competent jurisdiction may determine and fix reasonable attorney's
fees to be paid to the successful litigant.
I. Notices. Notices to the parties unless otherwise
requested in writing shall be sent to:
City: THE CITY OF VERNON
ATTN: BRUCE V. MALKENHORST
CITY ADMINISTRATOR
4305 SANTA FE AVENUE
VERNON, CA 90058-0805
CONSULTANT: HdL COREN & CONE
ATTN: MARTIN C. COREN
1340 VALLEY VISTA DRIVE, SUITE 200
DIAMOND BAR, CA 91765
8. ENTIRE AGREEMENT
This Agreement is the entire Agreement of the parties,
the Consultant represents that in entering into this Agreement, it
has not relied on any previous representations or understandings
of any kind or nature.
9. BENEFIT OF AGREEMENT
This Agreement shall bind and benefit the parties hereto
and their heirs, successors, and permitted assigns.
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IN WITNESS WHEREOF, the City and the Consultant have
executed this Agreement as of the date first hereinabove set
forth
THE CITY OF VERNON
,�-L ONIS C. MALBYRG, Mayovr
ATTEST*
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
0
DAVID B. BREARLEY, Citf Attorney
HdL COREN & CONE
By: 6tl6z, - C r
Title: I've,
By: By: �-.
Title: I i� -
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EXHIBIT A
INSURANCE SCHEDULE (CONSULTANT)
The Contractor shall provide proof of insurance, including a
standard certificate of insurance, in at least the following
amounts and coverage (combined single limit permitted):
I.
Coverage and
Limits
Bodily
Iniury
Property Damage
Hazards Each
Person
Each Accident
Each Accident
Automobile Liability
Owned Automobiles
$ 500,000
$1,000,000
$ 500,000
Hired Automobiles
$ 500,000
$1,000,000
$ 500,000
Non -Owned Automobiles
$ 500,000
S1,000,000
$ 500,000
Workers' Compensation
S Statutory
Employers' Liability
$1 000 000 per
employer
II. Gener$,1.and
Professional Liability
Premises Operations
$1,000,000
$2,000,000
$1,0000,000
Elevators
(if applicable)
$1,000,000
$2,000,000
$1,000,000
Independent
Contractors
$1,000,000
$2,000,000
$1,000,000
Products - Completed
Operations
$1,000,000
$2,000,000
$1,000,000
Contract Liability
"tea
$1,000,000
$2,000,000
$1,000,000
a. The general liability policy shall contain the following
special endorsements which shall be noted on or attached to the
standard certificate of insurance:
1. An endorsement naming the City of Vernon, its officers,
and employees as insureds under the policy.
2. An endorsement providing the City of Vernon thirty (30)
days notice of cancellation or material reduction of coverage.
3. An endorsement providing coverage for all operations under
this Agreement.
4. Such other endorsement as may be required by addendum
hereto.
b. In addition to the standard certificate of insurance, proof of
general and professional liability coverage shall be furnished: in
the form checked below. Certification of the following proofs by
the insurance accent or broker will not be accepted:
x_ For each policy, a notarized letter from the underwriter
or carrier certifying that the coverage and statements in
the standard certificate of insurance (attached thereto)
are true and correct and that the signator is an officer
authorized to so certify J or
A copy of each policy certified by an officer of the
underwriter or carrier and notarized.
EXHIBIT A
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX: (213) 581-7924
FEDERAL EXPRESS
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (213) 583-8811
April 23, 1998
Mr. Martin C. Coren
HdL Coren & Cone
The HdL Companies
1340 Valley Vista Drive, Suite 200
Diamond Bar, California 91765
Re: Professional Consulting Services Agreement
Dear Mr. Coren:
DAVID B. BREARLEY
City Attorney
FAX: (818) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (213) 588-2761
KENNETH J. DeDARIO
Director of Light & Power
FAX: (213) 583-1983
DAVE TELFORD
Fire Chief
FAX: (213) 581-1385
LOUIS ROSENKRANTZ
Police Chief
FAX: (213) 581-1178
Enclosed for signatures are duplicate originals of the above -
referenced agreement, reflecting the changes we discussed this
afternoon.
Please return both signed originals directly to the City
Administrator/City Clerk of the City of Vernon by noon April 28,
1998. We ask that the agreement be signed by two corporate
officers -- preferably, by the president and secretary. For your
files, a copy of the agreement is also enclosed. The City Clerk will
return a conformed original to you once the agreement has been
approved by the City Council on April 28, 1998.
Additionally, please include the original of your proposal
letter dated April 21, 1998
For your convenience, please find enclosed a return prepaid
Federal Express envelope addressed to the City Clerk's office.
Please call if you have any questions..
Very truly yours,'
DAVID B. BREARLEY, Legal Counsel
Richard orillo, Attorney
DBB:RJM:nc
Enclosures
cc: Bruce V. Malkenhorst, City Administrator/City Clerk (w/o encls.)
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX: (213) 581-7924
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (213) 583-8811
May 5, 1998
HdL Coren & Cone
1340 Valley Vista Drive
Suite 200
Diamond Bar, CA 91765
Re: Consulting Services Agreement
Gentlemen:
Enclosed herewith is
referenced Agreement
Council on April 28,
GJO/gst
encl: Agreement
a
DAVID B. BREARLEY
City Attorney
FAX: (818) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX (213) 588-2761
KENNETH J. DeDARIO
Director of Light & Power
FAX: (213) 583-1983
DAVE TELFORD
Fire Chief
FAX: (213) 581-1385
LOUIS ROSENKRANTZ
Police Chief
FAX: (213) 581-1178
an executed duplicate original of the above -
for your records which was approved by City
1998.
Very truly yours,
Gloria J. osco
Chief Deputy City Clerk
N
1 Execution Copy
CONSULTING SERVICES AGREEMENT
2
3 THIS AGREEMENT is made, entered into and executed in
4 duplicate originals, either copy of which may be considered and
5 used as the original hereof for all purposes, as of this
6 day of Qva.« , 1998, in the City of Vernon, County of Los
7 Angeles, California
8 BY AND BETWEEN THE CITY OF VERNON (hereinafter
referred to as the "City")
9 4305 Santa Fe Avenue
Vernon, California, 90058
10 AND HdL COREN & CONE (hereinafter
11 referred to as "Consultant")
1340 Valley Vista Drive
12 Suite 200
Diamond Bar, CA 91765
13 RECITALS
14 WHEREAS, the City requires Consultant to perform and
15 provide assistance in levying a special tax on parcels within the
16 City of Vernon that are subject to the special voter -approved
17 parcel tax imposed by Ordinance No. 1057 ("Qualified Parcels");
18 and
19 WHEREAS, the City desires to engage the Consultant for
20 the services hereinafter described; and
21 WHEREAS, the Consultant represents that it is qualified
22 to perform such service under this Agreement for Consulting
23 Services (hereinafter "Agreement").
24 NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS
25 SET FORTH HEREIN:
26 1. SCOPE OF SERVICES
27 Consultant shall perform all requested services in their
28 entirety as follows
1 A. Identification of Oualified Parcels. This task
2 is to be accomplished utilizing property, sales and business data
3 bases maintained by the HdL Companies and the City. In addition,
4 and to the extent necessary, the HdL Companies will provide a
5 field survey to verify additional parcels that may be Qualified
6 Parcels;
7 B. Calculation of Tax. Once Qualified Parcels are
8 identified, HdL Coren & Cone will research the square footage of
9 each parcel and enter that information into a data base or
10 spreadsheet for the purpose of applying the special tax on each
11 Qualified Parcel;
12 C. Transmission of Data to County of Los Angeles.
13 HdL Coren & Cone will prepare a tape for the transmittal of the
14 special tax and transmit the tape to Los Angeles County in a
15 timely manner so the special tax will appear on the 1998-99
16 property tax bills of Qualified Parcels.
17 2. TIME OF PERFORMANCE
18 Consultant's services herewith shall commence upon
19 signing of the Agreement and all tasks are to be completed, and
20 the special assessments submitted to the County.of Los Angeles, as
21 soon as possible, but no later than August 1, 1998, for the
22 assessments to appear on the property tax bills.
23 3. COMPENSATION
24 The City shall compensate the Consultant for the services
25 Performed.as follows:
26 A. Items A. and B. referenced in paragraph 1 above
27 at Fifteen Dollars and No Cents ($15.00) per hour; and
28
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B. Item C. referenced in paragraph 1 above is Six
Hundred Dollars and No Cents ($600.00).
4. METHOD OF PAYMENT
Within thirty (30) days after the last day of any month
in which services have been performed or costs incurred hereunder,
the Consultant shall submit an invoice to the City stating the
amount due the Consultant. The invoice shall also contain an
itemization of directly related job expenses and subcontract
charges incurred by the Consultant and for which compensation is
due.
Payment of the invoice shall be made after acceptance and
approval by the City within thirty (30) days of receipt of such
invoice. The City's approval of the invoice shall not be
unreasonably withheld.
5. CHANGES AND EXTRA SERVICES
The City reserves the right to request changes in the
services to be performed by the Consultant. All such changes
shall be incorporated in written change orders executed by the
City and the Consultant which shall specify the changes ordered
and the adjustment of compensation and completion time required
thereof.
Any services added to the scope of this Agreement by a
change order shall be executed under all applicable conditions of
this Agreement. No claim for additional compensation or extension
of time shall be recognized unless contained in a duly executed
change order.
6. CONFIDENTIAL INFORMATION
A. Access to Confidential Information. The City of
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Vernon may provide Consultant with, or allow Consultant access to,
certain information not available to the public concerning the
City of Vernon, or businesses located in the City of Vernon. The
information may include company information, taxes, sales, value
of assets, or other such information. All such information shall
be known as "Confidential Information" and may not be used to
circumvent the responsibility of either party to this Agreement.
B. No Disclosure. Except as expressly permitted,
Consultant shall not disclose, permit the disclosure of, release,
disseminate, or transfer, whether orally or by any other means,
any part of such Confidential Information to any other person or
entity, whether corporate, governmental, or individual, without
Ithe express prior written consent of an authorized representative
of the City of Vernon. Consultant shall return any written
Confidential Information, and all copies made of such items, to
the City upon the City's written request, but in any event not
later than the date that the Consultant has performed all services
to be performed pursuant to this Agreement. Consultant hereby
agrees that such Confidential Information and any documents
provided may be used by Consultant only as authorized by the City
or the City of Vernon. Consultant shall take reasonable measures
to avoid any disclosure of any such Confidential Information to
any unauthorized person.
C. Court Ordered Disclosure. Consultant shall
immediately notify the City of any court order or subpoena
requiring disclosure of Confidential Information, and shall
cooperate with legal counsel in the appeal or challenge of any
such order or subpoena. Recipient may only disclose Confidential
-4-
1 Information required to be disclosed pursuant to court order or
2 subpoena after legal counsel has exhausted any lawful and timely
3 appeal or challenge.
4 D. Remedies. In addition to any other remedies that
5 it may have at law or in equity, the City shall be entitled to a
6 temporary and permanent injunction by a court of competent
7 jurisdictionagainst any breach or threatened breach of the
8 Confidential Information provisions of this Agreement. Consultant
9 acknowledges that incase of such breach or threatened breach of
10 said provisions, the City would have no adequate remedy at law.
11 7. GENERAL PROVISIONS
12 A. Independent Contractor. At all times during the
13 term of this Agreement, the Consultant shall be an independent
14 contractor and shall not be an employee of the City. The City
15 shall have the right to control the consultant only insofar as the
16 results of the Consultant's services rendered pursuant to this
17 Agreement; however, the City shall not have the right to control
18 the means by which the Consultant accomplishes services rendered
19 pursuant to the Agreement except to the extent that such services
20 involve the use of City of Vernon property or Confidential
21 Information.
22 B. Consultant Not Agent. Except as the City may
23 specify in writing, the consultant shall have no authority,
24 express or implied, to act on behalf of the City in any capacity
25 whatsoever as'an agent. The Consultant shall have no authority,
26 expressed or implied, pursuant to this Agreement to bind the City
27 to any obligation whatsoever.
28
-5-
1 C. Governing Law. The laws of the State of
2 California shall govern the rights, obligations, duties and
3 liability of the parties to this Agreement and shall also govern
4 the interpretation of this Agreement.
5 D. Assignment Prohibited. This Agreement is not
6 assignable either in whole or in part by HdL Coren & Cone or the
7 City of Vernon without the written consent of the other party.
8 E. Termination. This Agreement may terminate each
9 year upon written notice thirty days (30) days prior to the
10 anniversary date of the Agreement.
11 F. Indemnification. The Consultant shall indemnify,
12 defend, protect and hold the City and its officers, agents and
13 employees, free and harmless from and against any and all claims,
14 demands, losses, damages, liabilities, fines, charges, penalties,
15 orders, judgments, and all costs and expenses incurred in
16 connection therewith, including reasonable attorney's fees and
17 costs of defense arising out of the services performed under this
18 Agreement, except to the extent arising from or caused by the sole
19 negligence or willful misconduct of the City, its officers, agents
20 or employees.
21 G. Comprehensive General and Automobile Insurance.
22 The Consultant agrees to provide insurance in the amounts and
23 forms specified in Exhibit "A," which is attached hereto and made
24 a part hereof by reference. Comparable coverage shall be provided
25 for each subcontractor used in the performance of this Agreement.
26 The Consultant shall submit to the City documentation indicating
27 compliance with these minimum requirements no less than one (1)
28 day prior to the beginning of performance under this Agreement.
-6-
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The Consultant shall not commence performance of its services
under this Agreement until the above insurance has been obtained
and proof of insurance has been filed with and approved by the
City.
H. Attorney's Fees. In the event that it becomes
necessary for either party to this Agreement to enforce any of the
provisions of this Agreement, the parties agree that a court of
competent jurisdiction may determine and fix reasonable attorney's
fees to be paid to the successful litigant.
I. Notices. Notices to the parties unless otherwise
requested in writing shall be sent to:
City: THE CITY OF VERNON
ATTN: BRUCE V. MALKENHORST
CITY ADMINISTRATOR
4305 SANTA FE AVENUE
VERNON, CA 90058-0805
CONSULTANT: HdL COREN & CONE
ATTN: MARTIN C. COREN
1340 VALLEY VISTA DRIVE, SUITE 200
DIAMOND BAR, CA 91765
8. ENTIRE AGREEMENT
This Agreement is the entire Agreement of the parties,
the Consultant represents that in entering into this Agreement, it
has not relied on any previous representations or understandings
of any kind or nature.
9. BENEFIT OF AGREEMENT
This Agreement shall bind and benefit the parties hereto
and their heirs, successors, and permitted assigns.
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IN WITNESS WHEREOF, the City and the Consultant have
executed this Agreement as of the date first hereinabove set
forth.
THE CITY OF VERNON
BY-
r L ONIS C. MALB G, Maydr
ATTEST •
BRUCE V. MALKENHORST, City Clerk
APPROVED AS TO FORM:
DAVID B. BREARLEY, Cit Attorney
HdL COREN & CONE
By lil�l /�J
Title: ✓�s��a�.-
By:
Title: P7
-8-
EXHIBIT A
INSURANCE SCHEDULE (CONSULTANT)
The Contractor shall provide proof of insurance, including a
standard certificate of insurance, in at least the following
amounts and coverage (combined single limit permitted):
I. Coverage and Limits
Bodily iniury Property Damage
Hazards Each Person Each Accident Each Accident
Automobile Liability
Owned Automobiles $ 500,000 $1,000,000 $ 500,000
Hired Automobiles $ 500,000 $1,000,000 $ 500,000
Non -Owned Automobiles $ 500,000 $1,000,000 $ 500,000
Workers' Compensation S Statutory
Employers' Liability $1,000,000 per employer
II. Gener�&,t .and _
Professional Liability
Premises Operations
$1,000,000
$2,000,000
$1,000,000
Elevators
(if applicable)
$1,000,000
$2,000,000
$1,000,000
Independent
Contractors
$1,000,000
$2,000,000
$1,000,000
Products - Completed
Operations
$1,000,000
$2,000,000
$1,000,000
Contract Liability
$1 000 000
$2,000,000
$1,000,000
$2 nn nnn
o='2
vn,
a. The general liability policy shall contain the following
special endorsements which shall be noted on or attached to the
standard certificate of insurance:
1. An endorsement naming the City of Vernon, its officers,
and employees as insureds under the policy.
2. An endorsement providing the City of Vernon thirty (30)
days notice of cancellation or material reduction of coverage.
3. An endorsement providing coverage for all operations under
this Agreement.
4. Such other endorsement as may be required by addendum
hereto.
b. In addition to the standard certificate of insurance, proof of
general and professional liability coverage shall be furnished in
the form checked below. Certification of the followings proofs by
x For each policy, a notarized letter from the underwriter
or carrier certifying that the coverage and statements in
the standard certificate of insurance (attached thereto)
are true and correct and that the signator is an officer
authorized to so certify,or
A copy of each policy certified by an officer of the
underwriter or carrier and notarized.
EXHIBIT A
(909) $61-4335
CALIFORNIA USE TAX -ALLOCATION OF LOCAL SHARE
GENERAL BACKGROUND
Use tax was first imposed in 1935, in order to discourage buying from out of state solely for the
purpose of avoiding state sales tax, and thereby placing California retailers at a competitive
disadvantage. Accordingly, consumers that purchase tangible personal property from out of state
are liable for use tax at a rate equivalent to the sales tax. Use tax is also imposed on the storage,
use, lease or other consumption of tangible personal property at any time a sales tax has not been
paid by the retailer.
ALLOCATION BY STATE AND COUNTY POOLS
"Use tax" is the responsibility of the buyer rather than the seller and does not involve a California
"point of sale. Therefore, a pooling system was devised to distribute the local share. It is also
used to distribute any sales tax that cannot be easily tied'to a permanent place of sale. Under the
pool concept, the tax is first coded to the county of use and then distributed to each jurisdiction in
that county on a pro-rata share of taxable sales. An agency generating 8% of the County's total
taxable sales receives 8% of the pool. If the county of use can not be identified, the allocation goes
to the state pool for pro-rata distribution on a statewide basis.
Approximately 10% to 14% of a local jurisdiction's total sales and use tax revenues have
traditionally been through the pools, with the larger contributions coming from:
• Private party sales of vehicles, mobilehomes, vessels and aircraft.
• Contractors who are considered consumersof materials used in the improvement of real
property when a sales tax has not been paid, and whose job -site is regarded as the place of
business.
• Merchandise shipped directly to consumers by common carrier from inventory located outside
the state with title passing out of state.
• Long term leases of equipment and other tangible personal property.
• Use tax on purchases or inventory consumed at facilities not registered as sales locations.
• Catering trucks, itinerant vendors, vending machine operators and other permit holders who are
unable to readily tie transactions to specific jurisdictions.
ALLOCATION TO PLACE OF USE
A number of changes have been implemented since 1995 that allow some of the use tax revenue
previously shared via the pools, to be directly allocated to the jurisdiction of use. The changes are
as follows:
October 1, 1998
TO: Gloria Orosco, Chief Deputy City Clerk
FROM: Chris Romero, Administrative Aide �j le -
SUBJECT: USE TAX BUSINESS NOTIFICATION
1 k G 14 /
� a6-
In regards to some of your questions pertaining to Use Tax, I have the following:
1) When a business acquires a Direct Payment Permit, that business self assesses and pays its use
tax to the Board of Equalization. The Board then allocates the local portion of the tax back to
Vernon and includes any use tax amounts with the City's quarterly sales tax allocations.
2) The Board of Equalization is aware of the use tax payments because it receives quarterly tax
returns from businesses.
3) If we
1 to U4 any %her steps. However, since business participation is
strictly voluntary, just mailing out the packages may not generate the maximum amount of use tax
for Vernon. Additional marketing to make business more aware would further assist in possibly
generating more use tax our city. i.e. promote in the Vernon journal, promote in the chamber
newsletter. Hinderliter also said that they would be happy to do a presentation (maybe at Vernon
Chamber) on this subject for all Vernon businesses who are interested.
4) There is little that our staff can do to monitor use tax payments, mainly because use tax is
thrown in with sales tax in our quarterly allocations from the Board of Equalization.
Please let me know if you need additional information on this matter.
'i
# September 29, 1998
TO: Gloria Orosco, Chief Deputy "City derk
FROM: Chris Romero, Administrative Aide !* 9--
SUBJECT: LOCAL ALLOCATION OF USE TAX PAYMENTS
The Hinderliter (HdL) de Llamas Company has sent us a package of information that will assist
us in working with the local businesses to increase our share of "use tax" payments. Recently, new laws
have allowed for the direct distribution of some "use tax" revenues that were previously allocated to
other pools. To expand our revenues, HdL has said that we can contact eligible businesses to increase
these related revenues.
HdL has sent the following information:
1) A summary of use tax and the recent changes affecting the method of allocation.
2) A packet relating to use tax purchases exceeding $500,000. It is now mandatory that taxpayers
who make "use tax" purchases exceeding $500,000 report the payment to the jurisdiction where the
property is first placed into use. A sample message is enclosed that identifies this process, and could be
included with the business license renewal or utility notices.
3) A sample letter; a Direct Payment Permit application (that can be photocopied and
distributed), and special taxpayer brochures to send to taxpayers who potentially have "cumulative" use
tax transactions exceeding $500,000 per year.
Although most of the 1,200 Vernon businesses will not qualify for Direct Payment Permits
because they pay sales tax rather than "use tax" on the bulk of their purchases, Hinderliter has submitted
a list of Vernon companies that we should contact. The list has been prepared from the property tax rolls
which indicate possible large purchases of equipment.
I would like to use the list from Hinderliter to send each of those Vernon businesses the
following information (see attached):
1) Sample Letter identifying that the business can report any use tax transactions exceeding
$500,000 cumulative on a calendar year.
2) An Application For Use Tax Direct Payment Permit
3) A guide for California Businesses that summarizes and explains "Use Tax Direct Payment
Permits".
Martha Valenzuela attended the last quarterly meeting with Hinderliter and myself and is aware
of the "Use Tax" information that has been mailed to us. I spoke with Martha and said that I would first
talk with you to get the proper direction to take on this project.
If possible I would like to work with Martha on the list of the 224 Vernon companies who may
be eligible for reporting of the "Use Tax".
Lc4r� SAMPLE LETTER
USE TAX TRANSACTIONS
Exceeding $500.000
September 1998
NAME
TITLE
COMPANY NAME
ADDRESS
CITY, STATE ZIP
Dear NAME:
As a local businessperson, I'm sure you understand the critical need for adequate community
services such as street maintenance and public safety. You are probably also aware that with
increased confiscation of local property tax revenues by the State government, local governments
have been forced to rely more and more on sales and use taxes to provide funding for these
services.
What you may not know is that you can help increase the amount of funds available for these
critical services... without increasing your tax liability.
We are asking your help in ensuring that (name of jurisdiction) receives its fair share of money
collected as "use tax." This is a tax that was enacted shortly after the sales tax was adopted in the
1930s, with the idea of discouraging people from buying from out-of-state vendors to avoid
paying sales tax. Put simply, a California purchaser buying from an out-of-state vendor is
responsible for any use tax liability on that purchase.
As a courtesy to their customers, some out-of-state vendors register with the state, collect the tax
from the purchaser, then report and pay it to the state. If the transaction exceeds $500,000, the
vendor must report the local tax to the jurisdiction of where the purchased goods are first placed
into use. However, if the vendor is not registered, and many are not, the purchaser is required to
pay the tax. When this happens, we ask that you help us ensure that this tax -- which you are
already paying -- is allocated correctly, with the local tax (I%) going to (name of jurisdiction).
If you make an out-of-state purchase exceeding $500,000, and the invoice does not include the
use tax, you will be reporting the tax on one of two state tax returns. Please share the following
with your tax person to ensure that the local portion is returned to (name of jurisdiction).
• If you have a Seller's Permit, report the tax on Line 2 and Line 17. If you have more
than one location, it would be reported on Schedule "C" for the location of use. If a
location is not permitized, it must be reported on Schedule "F."
• If you have a Consumer Use Tax Account, it would be reported on Line l and Line 10.
If you have more than one location, it will be necessary to secure an account for each
location.
If you have neither, we ask that you secure a Consumer Use Tax Account for the occasional out-
of-state purchase. These and other forms can be obtained by calling (800) 400-7115. If you
would like a staff member to discuss this matter, please call my office at Your
cooperation is greatly appreciated.
Very truly yours,
NAME
2
BOE-UX)-DP (FRONT)
APPLICATION FOR STATE OF CAUFORNIA
USE TAX DIRECT PAYMENT PEP —NUT BOARD OF EQUALIZATION
Please Type or Print Clearly
SECTION I - BUSINESS INFORMATION
NAME OF BUSINESS OR GOVERNMENTAL ENTITY I SALESUSE TAX ?ERMIT NUMBER
or C.V. n
CONSUMER USE TAX ACCOUNT NUMBER.
IF APPLICANT IS APPLYING FOR EITHER A SALESIUSE TAX PERMIT OR A
CONSUMER USE TAX ACCOUNT IN ADDITION TO A USE TAX DIRECT
PAYMENT PERJVrr CHECK THE FOLLOWING BOY-
:4j-vN . UrrULA wru%.rn DUaUl�w w .mac .
THAN ABOVE:
SECTION II - MULTIPLE BUSINESS LOCATIONS
'LIST BELOW THE BUSINBSSAXD AWLING ADDRESSES OF ALL LOCATIONS WHERE PROPERTY PURCHASED UNDER A
USE TAX DIRECT PAYMENT CERTIFICATE WILL BE USED. IF ADDITIONAL SPACE IS NEEDED, ATTACH A SEPARATE
SHEET.
1. BUSINESS ADDRESS
4. BUSINESS ADDRESS
MAILING ADDRESS
MAILING ADDRESS
2. BUSINESS ADDRESS
5. BUSINESS ADDRESS
MAILING ADDRESS
MAILING ADDRESS
3. BUSINESS ADDRESS
6. BUSINESS ADDRESS
MAILING ADDRESS
MAILING ADDRESS
SECTION III - CERTIFICATION S-1-A1 tintPl I
I hereby certify that I qualify for Use Tax Direct Payment Permit for the following reason:
(Please Check One of the Following
I have purchased or leased for my own use tangible personal property subiect to use tax at a cost of five hundred thousand
dollars ($500,000) or more in the aggregate, during the calendar year immediately preceding this application for the permit. I
have attached a "Statement of Cash Flows" or other comparable financial statements acceptable to the board for the calendar
year immediately preceding the date of application and a separate statement attesting that the qualifying purchases were
purchases that were subject to use tax.
EDI am a county, city, city and county, or redevelopment agency.
I also agree to self -assess and pay directly to the Board of Equalization any use tax liability incurred pursuant to my use of a Use Tax
Direct Payment Permit.
The above statements are hereby certified to be correct to the knowledge and belief
of the undersigned, who is duly authorized to sign this application.
SIGNATURE TITLE
NAME (TYPED OR PRINTED) DA TE
(Sce Reverse Side for Additional (ntorrnauun and Filing Instructions)
H()Ego()-OP (BACK)
USE TAX DIRECT PAYMENT PERMIT
(General Information and Filing Instructions)
Revenue and Taxation Code Section 7051.3 authorizes the State Board of Equalization to issue a "Use Tax Direct Payment Permit" to qualified
applicants. This permit allows purchasers and lessees of tangible personal property (other than lessees of motor vehicles the lease of which is subject
to the terms of Section 7205.1 of the Sales and Use Tax Law) to self -assess and pay use taxes directly to the Board instead of to the vendor or lessor
From whom the property is purchased or leased
Permit holders will be provided with a use tax direct payment exemption certificate which they can issue to retailers and lessors when they purchase
tangible personal property subject to use tax or make qualified leases of tangible personal property. Vendors who timely take the certificate in good
faith from a permit holder are relieved of the duty to collect use taxes on the sales for which the certificate was issued. Permit holders who acquire
property under a certificate must self -assess and report the use taxes directly to the Board on their tax returns, and allocate the local taxes to the
county, city, city and county, or redevelopment agency in which the property is first used. Permit holders who fail to properly pay any use taxes that
are due on property for which a certificate was given are subject to interest and penalties assessments in addition to their tax liability.
To qualify for a use tax direct payment permit, an applicant must meet the following conditions:
The applicant must agree to self -assess and pay directly to the Board any use tax which is due on property for which a use tax direct
payment exemption certificate was given; and
(2) The applicant must certify to the Board either of the following
(A) The applicant has purchased or leased for its own use tangible personal property subiect to use tax which cost five hundred
thousand dollars (S500,000) or more in the aggregate, during the calendar year immediately preceding the application for the
permit; or
(B) The applicant is a county, city, city and county, or redevelopment agency.
Persons wishing to obtain a use tax direct payment permit must be pre -qualified and either hold a California seller's permit or a consumer use tax
account.
Persons other than governmental entities who currently hold either a California seller's permit or a consumer use tax account must complete the
application for a use tax direct payment pit, sign the certification statement attesting that they qualify for a permit under conditions of Part (2XA)
above, and submit it "Statement of Cash Flows" or other comparable financial statements acceptable to the board for the calendar year
Immediately preceding the date of application which discloses total purcbases of property and equipment for own use and it separate
statement under company letterhead certifying that five hundred thousand dollars (S500,000) or more of such purchases were subject to use
tax.
Persons other than governmental entities who are not required to hold a seller's permit and who do not currently hold a consumer use tax accotmt
must obtain a consumer use tax account and then complete the application for a use tax direct payment permit, sign the certification statement
attesting that they qualify for a permit under the conditions of Part (2XA) above and submit a "Statement of Cash Flows" or other comparable
financial statements acceptable to the board for the calendar year Immediately preceding the date of application which discloses total
purchases of property and equipment for own use and a separate statement under company letterhead certifying that five hundred
thousand dollars (S500,000) or more of such purchases were subject to use tax —
Governmental entities who currently hold either a California seller's permit or a consumer use tax account must complete the application for a use
tax direct payment permit, sign the certification statement attesting that they qualify for a permit under the conditions of Part (2)(B) above, and
submit an additional statement to that effect under official letterhead and signed by an authori2ed governmental representative.
Governmental entities who do not hold a California seller's permit or a consumer use tax account must obtain a consumer use tax account and then
complete the application for a use tax direct payment permit, sign the certification statement attesting that they qualify for a permit under the
conditions of Part (2XB) above, and submit an additional statement to that effect under official letterhead and signed by an authorized governmental
representative.
The completed use tax direct payment application, certification statement, and qualifying documentation should be returned to the address shown
below. Upon determination that the applicant qualifies, a use tax direct payment permit and exemption certificate will be mailed to the applicant.
if you would like additional information regarding the use tax direct payment permit or need assistance in completing this application, you can call
(916) 324-2883, or write to the Board of Equalization, Audit Evaluation and Planning Section, MIC-40, P.O. Box 942879, Sacramento, CA 94279-
0040.
APPLICATION FOR USE TAX DIRECT PAYMENT PERMIT
Who May Have a Permit
Any person who has a California Seller's Permit or a California Consumer Use Tax Account and meets the qualifications below may
obtain a Use Tax Direct Payment Permit
Your Riehts and Responsibilities
When you obtain a use tax direct payment permit, you acquire valuable rights and privileges as well as responsibilities. Information
about some of those rights and responsibilities follows.
• A use tax direct payment permit authorizes you to acquire property that is subject to use tax from out-of-state retailers or
instate and out -of --state lessors (except instate motor vehicle lessors that are subject to the terms of Section 7205.1 of the
Sales and Use Tax Law) without paying use tax to the retailers or lessors.
• You are required to self -assess and pay such use tax directly to the Board. Failure to do so could result in assessments
against you of interest and penalties in addition to any tax that is owed.
• You are required to allocate local use taxes to the county, city, city and county, or redevelopment agency in which
property acquired under a use tax direct payment exemption certificate is first functionally used.
• You will be provided with a use tax direct payment exemption certificate which you may issue to out-of-state retailers
and qualified lessors when your purchases or leases are subject to use tax. The certificate relieves such retailers and
lessors of the requirement to collect use tax on their sales and leases to you. The certificate may not be issued to
California vendors, to California new vehicle lessors when the lease is subject to the terms of Section 7205.1 of the Sales
and Use Tax Law, or to any vendors when the transactions are subject to sales tax or the property purchased will be resold
by you.
Oualifications
To qualify for a use tax direct payment permit, an applicant must have a Seller's Permit or a Consumer Use Tax Account and:
(1) The applicant must agree to self -assess and pay directly to the Board the use tax which is due on property for which a use tax
direct payment exemption certificate was given; and
(2) The applicant must certify to the Board either of the following:
• The applicant has purchased or leased for its own use tangible personal property subject to use tax valued at five
hundred thousand dollars (S500,000) or more during the calendar year immediately preceding the application for the
permit; or
The applicant is a county, city, city and county, or redevelopment agency.
How to Obtain a Use Tax Direct Pavment Permit
If you do not currently hold a California seller's permit or a consumer use tax account, your must first obtain such a permit or account
before a use tax direct payment permit can be issued. An application for a California seller's permit or consumer use tax account may
be obtained by calling 1-800-400-7115 or by contacting your local Board of Equalization office. The completed application should
be submitted to your local Board office for processing. After obtaining a California seller's permit or consumer use tax account, you
may apply for a use tax direct payment permit.
If you currently hold a California seller's permit or a consumer use tax account or have obtained one, you need only complete the
enclosed application for a "Use Tax Direct Payment Permit" and submit it and proof of eligibility (refer to instructions on the
application) to the address provided below.
After your application for a use tax direct payment permit is received, reviewed, and approved, a use tax direct payment permit and
exemption certificate will be mailed to you.
If you have any questions regarding the use tax direct payment program or need assistance in preparing the application for a use tax
direct payment permit, you can call (916) 324-2883, or write to the Board of Equalization, Audit Evaluation and Planning Section,
MIC 40, P.O. Box 942879, Sacramento. CA 94279-0040. Any questions regarding the application for a seller's or consumers use tax
permit should be directed to your local Board office.
STATE OF CALIFORNIA
STATE BOARD OF EQUALIZATION
JOHANKLEHS
450 N STREET, SACRAMENTO, CALIFORNtA
Fret Diet I' wf cud
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0040)
DEAN F. ANDAL
TELEPHONE (916) 324-2883
Second Distria S6ddo,
FACSIMILE: (916) 322-0187
ERNEST J. DRONENeuRG. JR
-
Third District San Diego.
- -
KATHLEEN CONNELL
Controller. Sacramento
JOHN CHIANG
-
Acting Member
-
Fourth District. Los Angeles
Permit No:
E. L SORENSEN, JR.
Executive Director
Based on the information provided in your application and the proof of eligibility which you submitted, you have
been approved by the Board of Equalization to hold a Use Tax Direct Payment Permit. Enclosed is your Use Tax
Direct Payment Permit and a Use Tax Direct Payment Exemption Certificate. Use of this certificate is restricted to
you or your authorized agent. As the holder of the document, you are liable for any unauthorized use. Therefore,
you should maintain control of the attached original and only issue copies to your suppliers.
Use Tax Direct Payment Permit
The law generally requires out-of-state retailers who are registered with the Board of Equalization and all lessors of
tangible personal property to collect California use tax on their sales or leases to California consumers or lessees and
remit the tax to the Board. The use tax direct payment permit authorizes you to acquire property that is subject to
use tax without paying the use tax to the vendor/lessor who provided the property and to self -assess and pay such
use tax directly to the Board
Use Tax Direct Payment Exemption Certificate
When you issue a copy of your exemption certificate to a vendor or lessor on a qualifying transaction, you relieve
the vendor/lessor from the requirement to collect and remit the use tax. You also assume the responsibility to self -
assess and pay such use tax directly to the Board. When you issues a certificate that is accepted in good faith by a
vendor/lessor, you shall be the sole person liable for any taxes which are due on the transaction.
A Use Tax Direct Payment Exemption Certificate Mav Be Issued on the Followinli Tvnes of Transactions
This certificate may only be issued on transactions which are subject to USE TAX. Some common transactions
which are subject to use tax and for which an exception certificate may be issued are:
• Purchases of tangible personal property from out-of-state vendors that will be used or consumed by you (e.g.
supplies, capital assets, etc.) provided the property is delivered directly to you from an out-of-state location by
common carrier.
• Leases of tangible personal property from both instate and out-of-state lessors (excluding leases of mobile
transportation equipment and leases of motor vehicles from California new vehicle dealers or from vehicle
lessors who purchase their leased vehicles from California new vehicle dealers).
• Leases of motor vehicles from out-of-state dealers or lessors if the vehicles come directly from an out-of-state
inventory.
- 2 - March 12, 1998
A Use Tax Direct Payment Exemption Certificate May Not Be Issued on the Followine Types of Transactions
The certificate may not be used on transactions that are subject to SALES TAX or if the property purchased is to be
resold. Additionally, leases of motor vehicles are governed by Section 7205.1 of the Sales and Use Tax Law and
therefore the certificate may not be used with respect to leases of motor vehicles from new vehicle dealers -or from
vehicle lessors who purchase their leased vehicles from California new vehicle dealers. Examples of common
transactions for which this certificate may not be used are:
• Purchases of tangible personal property from California vendors.
• Purchases of property which will not be used or consumed by you (e.g. resale inventory).
• Purchases of property from out-of-state vendors when title to such property is not taken out-of-state or the
property is not delivered directly to you from an out-of-state location. (e.g. delivery is made from an instate
inventory of the vendor or from an instate inventory on behalf of the vendor.)
• Leases of mobile transportation equipment or motor vehicles from California new vehicle dealers or from lessors
who purchase their leased vehicles from California new vehicle dealers.
When to Issue the Use Tax Direct Pavment Exemption Certificate
If a purchase or lease is subject to use tax and you wish to self -assess and pay such use tax directly to the Board, you
must issue a timely certificate to the seller/lessor in order to relieve the seller/lessor of the requirement to collect the
use tax. To be timely, the certificate shall be issued anytime before the seller/lessor bills you for the property, or
any time within the seller/lessor's normal billing and payment cycle, or any time at or prior to delivery of the
property to you.
Multiple Business Locations
If. you listed multiple business locations on your application and these locations are in different local taxing
jurisdictions, you were issued a direct payment permit and an exemption certificate for each such location. When
you acquire property under an exemption certificate, you should issue the exemption certificate that was issued to
the location which is acquiring the property.
Reporting the Use Tax
Your application certified that you agreed to self -assess and pay directly to the Board the use taxes due on all
purchases or leases for which a use tax direct payment exemption certificate was issued. Accordingly, if you
acquire property under an exemption certificate you must timely report the purchase price or the rental payments for
such property on line 2 of your Sales and Use Tax return or on line 1 of your Consumer Use Tax return. You should
also retain worksheets identifying any property acquired under a certificate and self -assessed in the event that you
are audited. If you do not properly report and pay the use tax that is due on property acquired under a certificate,
you could be liable for interest and penalties in addition to any tax that is owed
Allocatine the Local Use Tax
Local and district use taxes for property acquired under an exemption certificate shall be allocated on your returns to
the county, city, city and county, or redevelopment agency in which the property is first functionally used.
uestions
If you have any questions regarding the use tax direct payment program you can call (916) 324-2883, or write to the
Board of Equalization, Audit Evaluation and Planning Section, MIC:40, P.O. Box 942879, Sacramento, CA 94279-
0040.
STATE BOARD OF EQUALIZATION
Sales and Use Tax Department
SAMPLE LETTER
USE TAX TRANSACTIONS
Exceeding $500.000
September , 1998
NAME
TITLE
COMPANY NAME
ADDRESS
CITY, STATE ZIP
Dear NAME:
As a local businessperson, I'm sure you understand the critical need for adequate community
services such as street maintenance and public safety. You are probably also aware that with
increased confiscation of local property tax revenues by the State government, local governments
have been forced to rely more and more on sales and use taxes to provide funding for these
services.
What you may not know is that you can help increase the amount of funds available for these
critical services... without increasing your tax liability.
We are asking your help in ensuring that (name of Jurisdiction) receives its fair share of money
collected as "use tax." This is a tax that was enacted shortly after the sales tax was adopted in the
1930s, with the idea of discouraging people from buying from out-of-state vendors to avoid
paying sales tax. Put simply, a California purchaser buying from an out-of-state vendor is
responsible for any use tax liability on that purchase.
As a courtesy to their customers, some out-of-state vendors register with the state, collect the tax
from the purchaser, then report and pay it to the state. If the transaction exceeds $500,000, the
vendor must report the local tax to the jurisdiction of where the purchased goods are first placed
into use. However, if the vendor is not registered, and many are not, the purchaser is required to
pay the tax. When this happens, we ask that you help us ensure that this tax -- which you are
already paying -- is allocated correctly, with the local tax (1%) going to (name of Jurisdiction).
If you make an out-of-state purchase exceeding $500,000, and the invoice does not include the
use tax, you will be reporting the tax on one of two state tax returns. Please share the following
with your tax person to ensure that the local portion is returned to (name of jurisdiction).
If you have a Seller's Permit, report the tax on Line 2 and Line 17. If you have more
than one location, it would be reported on Schedule "C" for the location of use. If a
location is not permitized, it must be reported on Schedule "F."
If you have a Consumer Use Tax Account, it would be reported on Line 1 and Line 10.
If you have more than one location, it will be necessary to secure an account for each
location.
If you have neither, we ask that you secure a Consumer Use Tax Account for the occasional out-
of-state purchase. These and other forms can be obtained by calling (800) 400-7115. If you
would like a staff member to discuss this matter, please call my office at Your
cooperation is greatly appreciated.
Very truly yours,
NAME
SAMPLE LETTER
DIRECT PAYMENT PE:_ u I _
September , 1998
NAME
TITLE
COMPANY NAME
ADDRESS
CITY, STATE ZIP
Dear NAME:
As a local businessperson, I'm sure you understand the critical need for adequate community
services such as street maintenance and public safety. You are.probably also aware that with
increased confiscation of local property tax revenues by the state government, local governments
have been forced to rely more and more on sales and use taxes to provide funding for these
services.
What you may not know is that you can help increase the amount of funds available for these
critical services... without increasing your tax liability.
A new direct payment permit process provides an opportunity for industrial manufacturers and
other businesses who make significant "use tax" expenditures to play a more important role in
maintaining local services. It allows an alternate method of reporting the tax so that the local
share is returned to ( ) rather than allocated to an allocation pool from which only a
very small portion is received.
The enclosed brochure explains the new process. If you believe that your operation qualifies, we
would appreciate your considering its implementation. Please call at
if we can answer questions or provide assistance.
Thank you in advance for supporting the economic health of
Sincerely,
THE CITY OF VERNON
BUILDING PERMITS
239 Labels for 239 Parcels
AJAX FORGE CO
1956 E. 48TH ST
LOS ANGELES CA 90058
BAKER COPMIODITIES INC
4020 BANDINI BLV
LOS ANGELES CA 90023
BARKSDALE INC
3211 FRUITLAND AVE
CARPENTER TECHNOLOGY CORP
PO BOX 14662
READING PA 19612
COAST PACKING CO
3275 E. VERNON AVE
LOS ANGELES CA 90058-1820
DUNN EDWARDS CORP
4885 E. 52ND PL
LOS ANGELES CA 90040
GENERAL MILLS INC
PO BOX 1113
MINNEAPOLIS MN 55440-1113
fill HANNIBAL INDUSTRIES INC
3851 S. SANTA FE AVE
LOS ANGELES CA 90058
LINDBERG CORPORATION
6133 N. RIVER RD 700
ROSEMONT ILL 60018
GNB BATTERIES INC
AGRASHELL INC
P 0 BOX 2147
4560 E. 26TH ST
CHICAGO IL 60690
ALUMINUM CO OF AMERICA
ANGELUS SANITARY CAN MACHINE C
5151 ALCOA AVE
4900 PACIFIC BLV
.. VERNON CA 90058-3715
LOS ANGELES CA 90058
- BALL,FOSTER GLASS CONTAINER
BANDINI FERTILIZER CO
1509 S. MACEDONIA AVE
4139 BANDINI BLV
.. MUNCIE IN 47302-3664
LOS ANGELES CA 90023
BENDER MACHINE INC
C S AMERICA INC
2150 E. 37TH ST
4309 EXCHANGE AVE
VERNON CA 90058
CASTROL INDUSTRIAL CENTRAL INC
CLOUGHERTY PACKING CO
630 W. WASHINGTON BLV
3049 E. VERNON AVE
CHICAGO IL 60606
'.. DOUGLAS STEEL SUPPLY CO
-.DUNN EDWARDS CORP
..
4945 E. 52ND PL
LOS ANGELES CA 90040
DUNN EDWARDS CORPI
DUNN EDWARDS CORPORATION
4885 E. 52ND PL
! 4885 E. 52ND PL
LOS ANGELES CA 90040
LOS ANGELES CA 90040
GOLDBERG AND SOLOVY FOODS INC
GRIFFITH MICRO SCIENCE INC
5925 ALCOA AVE
1 GRIFFITH CENTER
ALSIP IL 60658
KAISER FOUNDATION HOSPITALS
KAL KAN FOODS INC
393 E. WALNUT ST
3376 E. 44TH ST
PASADENA CA 91188
VERNON CA 90058
MAAS HANSEN STEEL CORP
�I, METAL IMP CO INC
P 0 BOX 58364
'I
10 FOREST AVE
VERNON CA 90058
'.'�, PARAMUS NJ 76520
MOBIL OIL CORP
- N I INDUSTRIES INC
PACIFIC COAST BUILDING
P O BOX 290
5215 S. BOYLE AVE
3001 EYE ST
DALLAS TEXAS 75221
LOS ANGELES CA 90058
SACRAMENTO CA 95816
- PACIFIC COLD STORAGE INC
- PACIFIC COLD STORAGE INC
III
PACKERS INVESTMENTS,
3420 E. VERNON AVE
3420 E. VERNON AVE -
4215 EXCHANGE AVE,
- VERNON CA 90058
''I LOS ANGELES CA 90058-1812',
LOS ANGELES CA 90058
RELIANCE STEEL AND ALUMINUM CO
ROADWAY EXPRESS INC
SANDBERG FURNITURE MANUFACTURI
2550 E. 25TH ST
- P O BOX 471
!
5705 ALCOA AVE
LOS ANGELES CA 90058
AKRON OHIO 44309
LOS ANGELES CA 90058
SERVICE PACKING COMPANY INC
SOUTHLAND BOX CO
SUNLAW COGENERATION PARTNERS I
3425 E. VERNON AVE
! 4955 S. MAYWOOD AVE
P 0 BOX 58324
LOS ANGELES CA 90058
VERNON CA 90058
LOS ANGELES CA 90058
l
i
UNITED STATES ALUMINUM CORP
VERNON CENTRAL WAREHOUSE INC
WELCHS OVERALL CLEANING CO INC
767 MONTEREY PASS RD
2322 E. 37TH ST
47 S. 9TH ST
MONTEREY PARK CA 91754
VERNON CA 90058
MINNEAPOLIS MN 55402
!
i
I
BOX USA GROUP INC
A Z 3 INC DBA
I
ACME DIE CUTTING SERVICE INC
115 STEVENS AVE
2761 FRUITLAND AVE
6133 MALBURG WAY
VALHALLA N Y 10595
LOS ANGELES CA 90058
VERNON CA 90058
AIR PRODUCTS & CHEMICALS INC
AIREY THOMPSON CO INC
ALLIED FEATHER AND DOWN CORP
7201 HAMILTON BLV
'', 3653 SIERRA PINE AVE
2661 E. 46TH ST
ALLENTOWN PA 18195
LOS ANGELES CA 90023
VERNON CA 90058
ALLIEDSIGNAL INC
AMERICAN PACIFIC RIM INC
ANGORA CAPITAL & MANAGEMENT
I.I 101 COLUMBIA RD 01057
4732 E. 26TH ST
4920 S. SOTO ST
MORRISTOWN NJ 79620
LOS ANGELES CA 90040
VERNON CA 90058
I
ANTHONY BRENT CORP
ART AMERICANA INC DBA
AT & T COMMERCIAL FINANCE CORP
9665 WILSHIRE BLV 220
4871 S. SANTA FE AVE
44 WHIPPANY RD 2027,,
BEVERLY HILLS CA 90210
VERNON CA 90058
MORRISTOWN NJ 79600
B W PROVISIONS INC
BAKER COMMODITIES INC
I
BANNERS CENTRAL ELECTRIC INC 9
2350 E. 48TH ST
4020 BANDINI BLV
5480 FERGUSON DR
VERNON CA 90058
LOS ANGELES CA 90023
COMMERCE CA 90022
i
i
BASKIN ROBBINS USA CO
BERNEY KARP INC
BFI MEDICAL WASTE SYSTEM 672 I
31 BASKIN ROBBINS PL
3350 E. 26TH ST
P O BOX 42165
GLENDALE CA 91201
LOS ANGELES CA 90023
-
HOUSTON TX 77242
BON APPETIT DANISH INC
BRADLEY E B CO
BRASKING INC DBA
4525 DISTRICT BLV
5080 S. ALAMEDA ST
5500 S. BOYLE AVE
LOS ANGELES CA 90058
VERNON CA 90058
LOS ANGELES CA 90058
C R LAURENCE CO INC
CALIBERI INC
CALIFORNIA CONTAINER CORPORATI
2503 E. VERNON AVE
3605 W. PENDLETON AVE
3059 BANDINI BLV
LOS ANGELES CA 90058
SANTA ANA CA 92704
VERNON CA 90023
CALIFORNIA PORTLAND CEMENT CO
CALIFORNIA WEBBING
CAMINO REAL FOODS INC
2025 FINANCIAL WAY 200
5065 PACIFIC BLV
19800 VAN NESS AVE
GLENDORA CA 91741
LOS ANGELES CA 90058
TORRANCE CA 90501
- CARGILL INC
CENTURY SPRING CORP
CHARLESTON TEX INC
P 0 BOX 5626
4770 DISTRICT BLV
�'.. 2807 S. SANTA FE AVE
MINNEAPOLIS MN 55440
VERNON CA 90058
VERNON CA 90058
i
rCHICAGO METALLIC CORP
CHORUS LINE CORP
CHORUS LINE CORP LESSEE
4849 S. AUSTIN AVE
4505 BANDINI BLV
4651 BANDINI BLV
CHICAGO IL 60638
VERNON CA 90040
VERNON CA 90040
CHUA AND SONS INC
CKM INDUSTRIES INC
CLOROX PRODUCTS MANUFACTURING
3300 E. 50TH ST
2424 E. 26TH ST A
P O BOX 24305
VERNON CA 90058
VERNON CA 90058
OAKLAND CA 94623'I
COMMAND PACKAGING LLC
CORE MARK INTERNATIONAL INC
CROWN POLY INC'.
3840 E. 26TH ST
P 0 BOX 21009',
4168 BANDINI BLV,
VERNON CA 90023
SEATTLE WA CA 98111'.
VERNON CA 90023
CUSTOM FOOD PRODUCTS INC
D AND D DISPOSAL INC DBA
D K ENVIRONMENTAL
P 0 BOX 1027
4105 BANDINI BLV
3650 E. 26TH ST
MONTEBELLO CA 90640
�LOS ANGELES CA 90023
i
LOS ANGELES CA 90023
D PONTRELLI SONS INC AND RLH
DA VINCI TEXTILE INC
111 DA VINCI TEXTILES INC LESSEE
6080 MALBURG WAY
2809 S. SANTA FE AVE','i
1945 E. 55TH ST
VERNON CA 90058
LOS ANGELES CA 9005E',
VERNON CA 90058
DA VINCI TEXTILES INC LESSEE
''.!DOUGLAS STEEL SUPPLY LESSEE
EDNA H PAGEL INC. DBA
''5764 ALCOA AVE
- 2050 E. 38TH ST
2301 E. 55TH ST
_
!VERNON CA 90058
VERNON CA 90058
!VERNON CA 90058
ERNEST PAPER PRODUCTS INC
EUREKA PLASTICS OF
ELKAY PLASTICS CO INC
2727 E. VERNON AVE
4726 EVERETT CT
4380 AYERS AVE
''LOS ANGELES CA 90023
�I., LOS ANGELES CA 90023
VERNON CA 90058
I
INC
EXPRESS INDUSTRIES INC
EVERGREEN INDUSTRIES INC DBA!
EXCELPRO
3760 E. 26TH ST
2626 FRUITLAND AVE
2300 E. 49TH ST
VERNON CA 90023
VERNON CA 90058
LOS ANGELES CA 90058
F J FOOD SERVICE INC -
FILTROL CORPORATION
F GAVINA AND SONS INC
- 3883 S. SOTO ST
', 3200 E. WASHINGTON BLV
2369 E. 51ST ST
VERNON CA 90058
LOS ANGELES CA 90023
VERNON CA 90058
', FISHERMANS PRIDE LESSEE
'�I. FISHERMANS PRIDE PROCESSORS IN
- FILTROL CORPORATION
- 3200 E. WASHINGTON BLV
4510 S. ALAMEDA ST
4510 S. ALAMEDA ST
VERNON CA 90058
�, VERNON CA 90058
LOS ANGELES CA 90023
FLEETWOOD CONTAINER AND
FLOWSERVE CORP
_ FORTIFIBER CORP
P O BOX 2017 TERM ANNEX
'III
, 1001 TAHOE BLV
' 1600 VALLEY RD
LOS ANGELES CA 90051
INCLINE VILLAGE NV 89451
WAYNE NJ 74700
I
GRAND PACKAGING INC DBA,,
GREAT AMERICAN PACKAGING INC
GOLDSTEIN ANA DBA
III
3840 E. 26TH ST
4361 S. SOTO ST
4112 S. MAIN ST
LOS ANGELES CA 90032 -
- VERNON CA 90023'.
VERNON CA 90056
I'I GROUP B CLOTHING CO A CORP DBA
HANNIBAL INDUSTRIES INC
GREENORANGE DESIGNS INC
2950 E. VERNON AVE
3165 E. SLAUSON AVE
6031 MALBURG WAY
VERNON CA 90058
VERNON CA 90058
VERNON CA 90058
HOLLANDER HOME FASHIONS CORP
HUXTABLES COMESTIBLES OF
HART BINDERY CO INC
6560 W. ROGERS CIR
P 0 BOX 58467
3290 E. 26TH ST
LOS ANGELES CA 90023
BOCA RATON FL 33487
VERNON CA 90058
IMC AGRIBUSINESS INC
IIII'I INTERNATIONAL BAKING CO INC
IBM CREDIT CORP
P 0 BOX 1986
5200 S. ALAMEDA ST
P O BOX 5028
,
WHITE PLAINS NY 10602
COLLINSVILLE IL 62234
VERNON CA 90058
IRON MOUNTAIN RECORDS MANAGEME
745 ATLANTIC AVE 7
BOSTON MA 21110
J AND J SNACK FOOD CORP
5353 DOWNEY RD
'VERNON CA 90058
JAMES STREET FASHIONS DBA -
6062 ALCOA AVE
VERNON CA 90058
JEFFERSON SMURFIT CORPORATION
2001 E. 57TH ST
`VERNON CA 90058
-JFC^INTERNATIONAL INC -
540"FORBES BLV
SAV--FRANCISCO CA 94080 -
_ rKAREN KANE INC -
2275- E. 37TH ST -
.'VERNON CA 90058
L A DYE AND PRINT WORKS INC
2065 S. SANTA FE AVE
LOS ANGELES CA 90021
LIFE LIKE PRODUCTS INC
1600 UNION AVE
BALTIMORE MD 21221
MANI BROTHERS LLC
100 CORPORATE POINT BLV
CULVER CITY CA 90230
MASSON CHEESE CORPORATION
6180 ALCOA AVE
VERNON CA 90058
i
IVY HILL CORP LESSEE
I,IVY HILL CORPORATION
4800 SANTA FE
4800 S. SANTA FE AVE
LOS ANGELES CA 90058
�VERNON CA 90058
J B T GLOVES INC
J T RYERSON AND SON INC
4900 CORONA AVE
30 W. MONROE ST
VERNON CA 90058
CHICAGO IL 60603
JANISSARA TEXTILE INC
JEFFERSON SMURFIT CORP
381.8 ROSS ST
2200 E. 57TH ST
VERNON CA 90058
VERNON CA 90058
JENSEN INDUSTRIES INC
- JETRO-CASH AND CARRY INC
1946 E. 46TII ST
_'. 2300 E. 57TH ST
VERNON CA 90058
VERNON CA 90058
JOBBERS MEAT PACKING CO INC
JOES PLASTICS INC
P 0 BOX 58368,
5725 DISTRICT BLV
LOS ANGELES CA 90058
LOS LOS ANGELES CA 90040
KITTRICH CORP
, KNITEX INC
4500 DISTRICT BLV
.. 3155 BANDINI BLV
- LOS ANGELES CA 90058
LOS ANGELES CA 90023
L A JEANS A CORP -
LIDO VEAL & LAMB INC
4641 PACIFIC BLV
P 0 BOX 2224
- .. LOS ANGELES CA90058
�. HUNTINGTON PARK CA 90255
- LOS ANGELES CREATIVE'.,
LUCENT TECHNOLOGIES INC
3355 E. SLAUSON AVE
P O BOX 802206 _
'.. VERNON CA 90058
DALLAS TX 75380
i
MARSPRING CORPORATION,
MASCO BUILDING PRODUCTS CORP'
137 E. ALONDRA BLV
21001 VAN BORN RD
"'. GARDENA CA 90248
,, TAYLOR MI 48180
MASTER KNIT USA INC
MAXINE OF HOLLYWOOD INC
2770 FRUITLAND AVE
2424 E. 28TH ST
VERNON CA 90058
','. LOS ANGELES CA 90058
- MELLON FIRST UNITED DBA
METRO NOVELTY AND
METRO WASH & LAUNDRY INC DBA
100 CORPORATE NORTH
3030 E. VERNON AVE
6270 BOYLE AVE
BANNOCKBURN IL 60015
VERNON CA 90058 -
- VERNON CA 90058
. MICHAEL CARUSO AND CO INC DBA
MID PACIFIC SEAFOODS INC
MING SHIN KOU AND -
4560 LOMA VISTA AVE
5970 ALCOA AVE
1912 E. VERNON AVE -
VERNON CA 90058
LOS ANGELES CA 90058
VERNON CA 90058
NANKA SEIMEN CO INC -
NI INDUSTRIES INC
NORTON PACKAGING INC
3030 LEONIS BLV
21001 VAN BORN RD
20670 CORSAIR
VERNON CA 90058
TAYLOR MI 48180
HAYWARD CA 94545
0 E CLARK PRINTED SPECIALTIES
OCEAN BREEZE MFG INC -
ORVAL KENT FOOD INC
2716 LEONIS BLV -
5301 S. SANTA FE AVE
5001 S. SOTO ST
LOS ANGELES CA 90058
VERNON CA 90058
LOS ANGELES CA 90058
OVERHILL FARMS INC
OVERHILL FARMS INC
OWENS BROCKWAY GLASS CONTAINER -
P"O BOX 6017 -
P 0 BOX 6017',
1 SEAGATE 1200
r INGLEWOOD CA 90312
INGLEWOOD CA 90301
TOLEDO OH CA 90058
OWENS BROCKWAY GLASS LESSEE
P AND Y T SHIRTS CO AND
PACIFIC ANCHOR CORP -
29-01 FRUITLAND AVE - -
2126 E. 52ND ST
3305 E. 26TH ST
LOS ANGELES CA 90051 -
VERNON CA 90058
LOS ANGELES CA 90023
PACIFIC COLD STORAGE INC DBA
PACIFIC COMBINING CORP
PACIFIC FABRIC FINISHING INC -
3420 E. VERNON AVE
3055 FRUITLAND AVE
P 0 BOX 58606 -
LOS ANGELES CA 90058
- LOS ANGELES CA 90058
LOS ANGELES CA 90058.,
PACKAGING ADVANTAGE CORP
- PAPA CANTELLAS INC
PAUL DAVRIL INC -
4633 DOWNEY RD
2900 E. 44TH ST
5401 S. SOTO ST
LOS ANGELES CA 91101
VERNON CA 90058
VERNON CA 90058
PENNZOIL PRODUCTS COMPANY
III,
PEP BOYS MANNY MOE ANDI�I
- PJK INC
P 0 BOX 2967 -
3111 W. ALLEGHENY AVE
5175 S. SOTO ST
HOUSTON TX 77252
PHILADELPHIA PA 19132
VERNON CA 90058 -
I
POLYXENE CORP
PRAXAIR DISTRIBUTION-INC
PRAXAIR INC
2380 E. 51ST ST
2301 S. CREEKVIEW DR
III
39 OLD RIDGEBURY RD -
VERNON CA 90058
ANKENY IA 50021
DANBURY CT 68100
PRAXAIR INC
PRAXAIR INC
39 OLD RIDGEBURY RD
39 OLD RIDGEBURY RD
DANBURY CT 68100
i
DANBURY CT 68100
Ii
II
PRINTING PLACES CALIF INC DBA
PUNCH PRESS PRODUCTS INC
3223 E. 46TH ST
1911 E. 51ST ST
LOS ANGELES CA 90058
VERNON CA 90058
RALPHS GROCERY COMPANY
RAMPAGE CLOTHING COMPANY
P 0 BOX 54143
2825 SANTA FE AVE
''. LOS ANGELES CA 90054
LOS ANGELES CA 90058
RANDALL FOODS INC
RANDALL FOODS INC
2900 AYERS AVE -
2900 AYERS AVE
LOS ANGELES CA 90023
LOS ANGELES CA 90023
RAYEM INVESTMENT INC DBA
REHRIG PACIFIC CO
4577 MAYWOOD AVE
- 4010 E. 26TH ST
VERNON CA 90058
VERNON CA 90023
RITTENHOUSE LLC -`
ROBERTSONS READY MIX LTD
250 S. NORTHWEST HWY
6830 VAN BUREN BLV
PARK RIDGE IL 60068
RIVERSIDE CA 92509
SAAVEDRA-JOSE L DBA -
SANTA FE MACHINE WORKS INC
4685 DISTRICT BLV
2344 E. 38TH ST
VERNON CA 90023 -
VERNON CA 90058
SEVEN UP RC BOTTLING CO OF
SEVEN UP RC BOTTLING LESSEE
'. 3220 E. 26TH ST
3220 E. 26 TH ST
LOS ANGELES CA 90023
VERNON CA 90058
/
SMART AND FINAL STORES
SMART AND FINAL STORES
4700 S. BOYLE AVE
-470 B YAVE
0 S. O LE A
LOS ANGELES CA 90058
LOS ANGELES CA 90058
SOCO LYNCH CORPORATION,
SQUARE H BRANDS INC DBA
3270 E. WASHINGTON BLV
2731 S. SOTO ST
- LOS ANGELES CA 90023
LOS ANGELES CA 90023
PRAXAIR SURFACE TECHNOLOGIES I
39 OLD RIDGEBURY RD
DANBURY CT 68100 -
R J AQUISITION CORP DBA
3260 E. 26TH ST
LOS ANGELES CA 90023
RAMPAGE CLOTHING COMPANY INC
2410 E. 38TH ST
LOS ANGELES CA 90058
RANDALL FOODS INC
2900 AYERS AVE
LOS ANGELES CA 90023
RELIANCE STEEL & ALUMINUMCOI
2550 E. 25TH ST
LOS ANGELES CA 90058
RPS INC
P 0 BOX 108
PITTSBURGH PA 15230
SCOPE PRODUCTS INC DBA
5550 LBJ FREEWAY 700 _
DALLAS TX 75240
SHAMROCK MEATS INC
3461 E. VERNON AVE
LOS ANGELES CA 90058
SNAK CLUB INC
607 NASH ST
EL SEGUNDO CA 90245
STUDIO RTA A CORP
2067 E. 55TH ST,
VERNON CA 90058
SUNLAW COGENERATION PARTNERS I _
SUNSET PAPER PRODUCTS INC
1 SYNTHETIC FABRICS INC
2045 E. VERNON AVE
- 3068 E. 50TH ST -
7507 ROSEBERRY AVE
LOS ANGELES CA 90058
VERNON CA 90058
- HUNTINGTON PARK CA 90255
i
T D MATERIALS INC
T L MONTGOMERY & ASSOCIATES IN
TECAL INTERNATIONAL TEXTILES I
2068 E. 37TH ST
5100 S. BOYLE AVE
5000 DISTRICT BLV
VERNON CA 90058
VERNON CA 90058
VERNON CA 90058 -
TENNECO PACKAGING INC DBA
TISSURAMA INDUSTRIES INC.
TOMCO AUTO PRODUCTS INC DBA
P 0 BOX 8
3001. SIERRA PINE AVE
4330 E. 26TH ST
ORANGEVALE CA 95662 -
LOS ANGELES CA 90023
VERNON CA 90023
U S FILTER RECOVERY SERVICES
U S GROWERS COLD STORAGE INC
U S NAMSUNG TEXTILE INC
5375 S. BOYLE AVE
3231 E. 44TH ST
4212 E. 26TH ST
- LOS ANGELES CA 90058
LOS ANGELES CA 90058
VERNON CA 90023
"-UNITED FOOD GROUP INC .:._.
UNITED PARCEL SERVICE INC
UNITED STATES CONTAINER CORP
-:: L- ,-
E-�. E. VERNON AVE --
i 3425
1331 S. VERNON ST
2465 FRUITLAND AVE
I _
�LOS ANGELES CA 90058 .-
I' ANAHEIM CA 92805
VERNON CA 90058
�2UNITED STATES CONTAINER LESSEE
US BOYS INC
USCP WESCO INC
-1465 FRUITLAND AVE
2101 E. 38TH ST
4444 AYERS AVE
`I'-VERNON CA 90058 -
VERNON CA 90058
LOS ANGELES CA 90023
VALUE MEATS INC DBA
VARILEASE CORPORATION
VERNON TEXTILES INDUSTRIES INC
2959 E. 50TH ST
P 0 BOX 802301
5000 DISTRICT BLV
LOS ANGELES CA 90058
DALLAS TX 75380
,. VERNON CA 90058
VEST INC
VIE DE FRANCE YAMAZAKI INC _
',. VKO INC DBA
6023 ALCOA AVE .-.
2070.CHAIN BRIDGE RD 500
540 MYLES STANDISH BLV '..
VERNON CA 90058
VIENNA VA 22182
- TAUNTON MA 27800
WATKINS MOTOR LINES INC
WESCO MOUNTING & FINISHING INC
WILLIAMS SERVICE CORPORATION
P 0 BOX 95003
4265 CHAR TER ST
1925 E. VERNON AVE 24
I
LAKELAND FL 33804
VERNON CA 90058',,
VERNON CA 90058 _
I. WORLD VARIETY PRODUCE INC
YONEKYU USA INC
Z B INDUSTRIES INC
5325 S. SOTO ST
3615 E. VERNON AVE
222 W. 6TH ST 800
VERNON CA 90058
LOS ANGELES CA 90058
LOS ANGELES CA 90731
I
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
Wm. "BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator / City Clerk
FAX (323) 581-7924
DAVID B. BREARLEY
City Attorney
FAX: (626) 330-5818
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 588-2761
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
October 21, 1998
SUBJECT: LOCAL ALLOCATION OF USE TAX
Dear Vernon Business Owner:
KENNETH J. DeDARIO
Director of Municipal Utilities
FAX: (323) 583-1983
DAVE TELFORD
Fire Chief
FAX: (323) 581-1385
BRUCE W. OLSON
Police Chief
FAX: (323) 583-5236
As a local businessperson, I am sure you understand the critical need for adequate community
services such as street maintenance and public safety. You are probably also aware that with
increased confiscation of local property tax revenues by the State government, local governments
have been forced to rely more and more on sales and use taxes to provide funding for these
services.
What you may not know is that you can help increase the amount of funds available for these
critical services... without increasing your tax liability.
We are asking your help in ensuring that the City of Vernon receives its fair share of money
collected as "use tax". This is a tax that was enacted shortly after the sales tax was adopted in the
1930's, with the idea of discouraging people from buying from out-of-state vendors to avoid
paying sales tax. Put simply, a California purchaser buying from an out-of-state vendor is
responsible for any use tax liability on that purchase.
As a courtesy to their customers, some out-of-state vendors register with the state, collect the tax
from the purchaser, then report and pay it to the state. If the transaction exceeds $500,000, the
vendor must report the local tax to the jurisdiction of where the purchased goods are first placed
October 21, 1998
Subject: Local Allocation Of Use Tax
Page 2
into use. However, if the vendor is not registered, and many are not, the purchaser is required to
pay the tax. When this happens, we ask that you help us ensure that this tax --which you are
already paying --is allocated correctly, with the local tax (1%) going to the City of Vernon.
If you make an out-of-state purchase exceeding $500,000, and the invoice does not include the
use tax, you will be reporting the tax on one of two state tax returns. Please share the following
with your tax person to ensure that the local portion is returned to the City of Vernon
If you have a Seller's Permit, report the tax on Line 2 and Line 17. If you have more than
one location, it would be reported on Schedule "C" for the location of use. If a location is
not permitized, it must be reported on Schedule "F".
If you have a Consumer Use Tax Account, it would be reported on Line 1 and Line 10. If
you have more than one location, it will be necessary to secure an account for each
location.
If you have neither, we ask that you secure a Consumer Use Tax Account for the occasional out-
of-state purchase. These and other forms can be obtained by calling (800) 400-7115. If you
would like a staff member to discuss this matter, you may contact Christopher Romero at
(323)583-8811 ext. 324. Your cooperation is appreciated.
Very truly yours,
CITY OF VERNON
Bruce V. Malkenhorst
City Administrator
B VM/cmr
WP7A\USETAxletter
EU)E-MX)-DP iFRUNfl
APPL,ICATIO,N FOR
USE TAX DIRECT PAYMENT PER -NM
try.
STATE OF CAUFORNIA
BOARD OF EQUALIZATION
Please Type or Print Clearly
SECTION I - BUSINESS INFORItitATION
CONSUMER USE TAX ACCOUNT NUMBER:
IF APPLICANT IS APPLYING FOR EITHER A SALES ME TAX PERMIT' OR A
CONSUMER USE TAX ACCOUNT IN ADDITION TO A USE TAX DIRECT
or P.O. Box) PAYMENT PElUvI T CHECK THE FOLLOWING BOX:
THAN ABOVE:
SECTION II - MULTIPLE BUSINESS LOLA 1 iVIX0
SES OF 'LIST BELOW THE BUSINESS AND ,►L4LLING � BE USED. IFADDITIONAG SLOCATIONS � l RNEED D. ATTOPERTY A PURCHASED
SEPARATE
USE TAX DIRECT PAYMENT CER77FICAT SHEET.
6.
SECTION III - CERTIFICATION STATEMENT
I hereby certify that I qualify for a Use Tax Direct Payment Permit for the following reason:
(Please chock CD* of the Four -ice
I have purchased or leased for my own use tangible personal property suJect to use tax at a cost of five hundred thousand
dollars (S500,000) or more in the aggregate, during the calendar year immediately preceding this application for the permit. I
have attached a "Statement of Cash Flows' or other comparable financial statements acceptable to the board for the Galen
da
year immediately preceding the date of application and a separate statement attesting that the qualifying purchases were
purchases that were subject to use tax.
aI am a county, city, city and county, or redevelopment agency.
I also agree to self -assess and pay directly to the Board of Equalization any use tax liability incurred pursuarit to my use of a Use Tax
Direct Payment Permit.
The above statements are hereby cerrifced to be correct to the knowledge and belie]
of the undersigned. who is duly authorized to sign this application.
TITLE
SIGNATURE
DA rE
,NAME (TYPED UR PRINTED)
(See Revere Side for Additional Int'ormahun and Filing Instructions)
13)E-xx)_DF 1 BACK)
USE TAX DIRECT PAYMENT PEP —MIT
(General Information and Filing Instructions)
Revenue and Taxation Code Section 705IJ authorizes the State Board of Equalization to issue a "Use Tax Direct Payment Permit" to qualified
applicants. This permit allows purchasets'and lessees of tangible personal property (other than lessees of motor vehicles the lease of which is subject
to the terms of Section 7205.1 of the Sales and Use Tax taw) to self -assess and pay use taxes directly to the Board instead of to the vendor or lessor
from whom the property is purchased or leased.
Permit holders will be provided with a use tax direct payment exemption certificate which they can issue to retailers and lessors when they purchase
tangible personal property subject to use tat or make qualified leases of tangible personal property. Vendors who timely take the certificate in good
faith From a permit holder are relieved of the duty to collect use taxes on the sales for which the certificate was *issued. Permit holders who acquire
property under a certificate must self -assess and report the use taxes directly to the Board on their tax returns, and allocate the local taxes to the
county, city, city and county, oc redevelopment agency in which the property is first used. Permit holders who fail to properly pay any use taxes that
are due on property for which a certificate was given are subject to interest and penalties assessments in addition to their tax liability.
To qualify for a use tax direct payment permit, an applicant must meet the following conditions:
(i) The applicant must agree to self -assess and pay directly to the Board any use tax which is due on property for which a use tax direct
payment exemption certificate was given; and
(2) The applicant must certify to the Board either of the following
(A) Tice applicant has purchased or leased for its own use tangible personal property subject to use tax which cost five hundred
thousand dollars (5500,000) or more in the aggregate, during the calendar year immediately preceding the application for the
permit; or
(B) The applicant is a county, city, city and county, or redevelopment agency.
Persons wishing to obtain a use tax direct payment permit must be pre -qualified and either hold a California seller's permit or a consumer use tzx
account
Persons other than governmental entities who currently hold either a California seller's permit or a consumer use tax account must complete the
application for a use tax direct payment permit, sign the certification statement attesting that they qualify for a permit under conditions of Part (2XA)
above, and submit a "Statement of Cash Flows" or other comparable financial statements acceptable to the board for the calendar year
Immediately preceding the date of appUcation which discloses total purchases of property and equipment for own use and a separate
statement under company letterhead certifying that five hundred thousand dollars (5500,000) or more of such purchases were subject to use
tax.
Persons other than governmental entities who are not required to hold a seller's permit and who do not cumntly hold a consumer use tax account
must obtain a consumer use tax account and then complete the application for a use tax direct payment permit, sign the certification statement
attesting that they qualify for a permit under the conditions of Part (2XA) above and submit a "Statement of Cash Flows" or other comparable
flnancW statements acceptable to the board for the calendar year Immediately preceding the date of application which discloses total
purchases of property and equipment for own use and a separate statement under company letterhead certifying that five hundred
thousand dollars ($500,000) or more of such purchases were subject to use tat -
Governmental entities who currently hold either a California seller's 'permit or a consumer use tax account must complete the application for a use
tax direct payment permit. sign the certification statement attesting that they qualify for a permit under the conditions of Part (2XB) above, and
submit an additional statement to that effect under official letterhead and signed by an auihorized governmental representative•
Governmental entities who do not hold a California seller's permit or a consumer use tax account must obtain a consumer use tax account and then
complete the application for a use tax 'diroct payment permit, sign the certification statement attesting that they qualify for a permit under the
conditions of Part (2XB) above. and submit an additional statement to that effect under official letterhead and signed by an authorized governmental
representative.
The completed use tax direct payment application, certification statement. and qualifying documentation should be returned to the address shown
below. Upon determination that the applicant qualifies, a use tax direct payment permit and exemption certificate will be mailed to the applicant
if you would like additional information regarding the use tax direct payment permit or need assistance in completing this application• you can mil
(916) 324-2883, or write to the Board of Equalization. Audit Evaluation and Planning Section, MIC-40, P.O. Box 942879, Sacramento, CA 942'9-
0040.
APPLICATION FOR USE TAX DIRECT PAYMENT PERMIT
Who May Have a Permit
Any person who has a California Seller's Permit or a California Consumer Use Tax Account and meets the qualifications below may
obtain a Use Tax Direct Payment Permit
Your Rights and Responsibilities
When you obtain a use tax direct payment permit, you acquire valuable rights and privileges as well as responsibilities. Information
about some of those rights and responsibilities follows.
• A use tax direct payment permit authorizes you to acquire property that is subject to use tax from out-of-state retailers or
instate and out-of-state lessors (except instate motor vehicle lessors that are subject to the terms of Section 7205.1 of the
Sales and Use Tax Law) without paying use tax to the retailers or lesson.
• You are required to self -assess and pay such use tax directly to the Board. Failure to do so could result in assessments
against you of interest and penalties in addition to any tax that is owed.
• You are required to allocate local use taxes to the county, city, city and county, or redevelopment agency in which
property acquired under a use tax direct payment exemption certificate is first functionally used.
• You will be provided with a use tax direct payment exemption certificate which you may issue to out-of-state retailers
and qualified lessors when your purchases or leases are subject to use tax. The certificate relieves such retailers and
lessors of the requirement to collect use tax on their sales and leases to you. The certificate may not be issued to
California vendors, to California new vehicle lessors when the lease is subject to the terms of Section 7205.1 of the Sales
and Use Tax Law, or to any vendors when the transactions are subject to sales tax or the property purchased will be resold
by you.
Qualifications
To qualify for a use tax direct payment permit, an applicant must have a Seller's Permit or a Consumer Use Tax Account and:
(1) The applicant must agree to self -assess and pay directly to the Board the use tax which is due on property for which a use tax
direct payment exemption certificate was given; and
(2) The applicant must certify to the Board either of the following:
The applicant has purchased or leased for its own use tangible personal property subject to use tax valued at five
hundred thousand dollars (S500,000) or more during the calendar year immediately preceding the application for the
permit; or
unty, city, city and county, or redevelopment agency.
The applicant is a co
How to Obtain a Use Tax Direct Payment Permit
If you do not currently hold a California seller's permit or a consumer use tax account, your must fast obtain such a permit or account
before a use tax direct payment permit can be issued. An application for a California seller's permit or consumer use tax account may
be obtained by calling 1-800400-7115 or by contacting your local Board of Equalization office. The completed application should
be submitted to your local Board office for processing. After obtaining a California seller's permit or consumer use tax account, you
may apply for a use tax direct payment permit.
If you currently hold a California seller's permit or a consumer use tax account or have obtained one, you need only complete the
enclosed application for a "Use Tax Direct Payment Permit" and submit it and proof of eligibility (refer to instructions on the
application) to the address provided below.
After your application for a use tax direct payment permit is received, reviewed, and approved, a use tax direct payment permit and
exemption certificate will be mailed to you.
If you have any questions regarding the use tax direct payment program or need assistance in preparing the application for a use tax
direct payment permit, you can call (916) 324-2883, or write to the Board of Equalization, Audit Evaluation and Planning Section,
MIC 40, P.O. Box 942879, Sacramento. CA 94279-0040. Any questions regarding the application for a seller's or consumers use tax
permit should be directed to your local Board office.
STATE OF CALIFORNIA
STATE BOARD OF EQUALIZATION
450 N STREET. SACRAMENTO, CALIFORNIA
(P.O. BOX 942579. SACRAMENTO, CALIFORNIA 94279-0040)
TELEPHONE. (916) 324.2883
FACSIMILE (916) 322-0187
Pennit No:
JOHAN KLEiG
Fist D"icf. Haymaro
OEM F. ANOAL
ERNEST J. DRONENSURG, JFL
nurd D'aUtt San Oisgo
KATHLEEN CONNELL
Cont o4er. Si07Te vo
JOHN CHMNC
Acting Menber
Fouts OistrkL Los Argdes
E. L SORENSEN. JR
Executive Director
Based on the information provided in your application and the proof of eligibility which you submitted, you have
been approved by the Board of Equalization to hold a Use Tax Direct Payment Permit. Enclosed is your Use Tax
Direct Payment Permit and a Use Tax Direct Payment Exemption Certificate. Use of this certificate is restricted to
you or your authorized agent. As the holder of the document, you are liable for any unauthorized use. Therefore,
you should maintain control of the attached original and only issue copies to your suppliers.
Use Tax Direct Payment Permit
The law generally requires out-of-state retailers who are registered with the Board of Equalization and all lessors of
tangible personal property to collect California use tax on their sales or leases to California consumers or lessees and
remit the tax to the Board. The use tax direct payment permit authorizes you to acquire property that is subject to
use tax without paying the use tax to the vendorflessor who provided the property and to self -assess and pay such
use tax directly to the Board.
Use Tax Direct Payment Exemption Certificate
When you issue a copy of your exemption certificate to a vendor or lessor on a qualifying transaction, you relieve
the vendor/lessor from the requirement to collect and remit the use tax. You also assume the responsibility to self -
assess and pay such use tax directly to the Board. When you issues a certificate that is accepted in good faith by a
vendorAcssor, you shall be the sole person liable for any taxes which are due on the transaction.
A Use Tax Direct Payment Exemption Certificate May Be Issued on the Following Types of Transactions
This certificate may only be issued on transactions which are subject to USE TAX. Some common transactions
which are subject to use tax and for which an exception certificate may be issued are:
• Purchases of tangible personal property from out-of-state vendors that will be used or consumed by you (e.g.
supplies, capital assets, etc.) provided the property is delivered directly to you from an out-of-state location by
common carrier.
• Leases of tangible personal property from both instate and out-of-state lessors (excluding leases of mobile
transportation equipment and leases of motor vehicles from California new vehicle dealers or from vehicle
lessors who purchase their leased vehicles from California new vehicle dealers).
• Leases of motor vehicles from out-of-state dealers or lessors if the vehicles come directly from an out-of-state
inventory.
- 2 - Muth 12,1998
A Use Tax Direct Payment Exemption Certificate May Not Be Issued on the Following Types of Transaetlons
The certificate may not be used on transactions that are subject to SALES TAX or if the property purchased is to be
resold. Additionally, leases of motor vehicles are governed by Section 7205.1 of the Sales and Use Tax Law and
therefore the certificate may not be used with respect to leases of motor vehicles from new vehicle dealers -or from
vehicle lessors who purchase their leased vehicles from California new vehicle dealers. Examples of common
transactions for which this certificate may not be used are:
• Purchases of tangible personal property from California vendors.
• Purchases of property which will not be used or consumed by you (e.g. resale inventory).
• Purchases of property from out-of-state vendors when title to such property is not taken out-of-state or the
property is not delivered directly to you from an out-of-state location. (e.g. delivery is made from an instate
inventory of the vendor or from an instate inventory on behalf of the vendor.)
• Leases of mobile transportation equipment or motor vehicles from California new vehicle dealers or from lessors
who purchase their leased vehicles from California new vehicle dealers.
When to Issue the Use Tax Direct Payment Exemption Certificate
If a purchase or lease is subject to use tax and you wish to self -assess and pay such use tax directly to the Board, you
must issue a timely certificate to the seller/lessor in order to relieve the seller/lessor of the requirement to collect the
use tax. To be timely, the certificate shall be issued anytime before the seller/lessor bills you for, the property, or
any time within the seller/lessor's normal billing and payment cycle, or any time at or prior to delivery of the
property to you.
Multiple Business Locations
If. you listed multiple business locations on your application and these locations are in different local taxing
jurisdictions, you were issued a direct payment permit and an exemption certificate for each such location. When
you acquire property under an exemption certificate, you should issue the exemption certificate that was issued to
the location which is acquiring the property.
Reportine the Use Tax
Your application certified that you agreed to self -assess and pay directly to the Board the use taxes due on all
purchases or leases for which a use tax direct payment exemption certificate was issued. Accordingly, if you
acquire property under an exemption certificate you must timely report the purchase price or the rental payments for
such property on line 2 of your Sales and Use Tax return or on line 1 of your Consumer Use Tax return. You should
also retain worksheets identifying any property acquired under a certificate and self -assessed in the event that you
are audited. If you do not properly report and pay the use tax that is due on property acquired under a certificate,
you could be liable for interest and penalties in addition to any tax that is owed.
Allocatine the Local Use Tax
Local and district use taxes for property acquired under an exemption certificate shall be allocated on your returns to
the county, city, city and county, or redevelopment agency in which the property is fast functionally used.
Questions
If you have any questions regarding the use tax direct payment program you can: call (916) 324-2883, or write to the
Board of Equalization, Audit Evaluation and Planning Section, MICAO, P.O. Box 942879, Sacramento, CA 94279-
0040.
STATE BOARD OF EQUALIZATION
Sales and Use Tax Department
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