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Home My WebLink AboutItem 5.2 Revision to Sales Tax Ordinance W CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: December 12 , 1983 SUBJECT Revision to Sales Tax Ordinance EXHIBITS ATTACHED Letters from State Board of Equalization dated November 18 and 25 , 1983 ; Ordinance RECOMMENDATION,, n. ,,�-` Open Public Hearing Receive Public Testimony Close Public Hearing Waive Reading and Adopt Urgency Ordinance FINANCIAL STATEMENT: None DESCRIPTION The City has received a request from the State Board of Equalization for the City to amend its existing sales tax ordinance . The amendment will delete the exemption for operators of waterborne vessels . The State has requested that the City adopt the ordinance prior to December 15 , 1983 . The City Attorney has reviewed the ordinance and has indicated that the amendment will in no way affect our present sales tax litigation with Alameda County. ---------------------------------------------------------------------------- - C COPIES T0: ITEM NO. V • � STATE OF CALIFORNIA H. COLLIS STATE BOARD OF EQUALIZATION i'; � C, First CONWAY Di Los Angeles 1020 N STREET, SACRAMENTO, CALIFORNIA V ERNEST J. DRONENBURG, JR. (P.O. BOX 1799, SACRAMENTO, CALIFORNIA 95808) /) SD Second District,San Diego WILLIAM M. BENNETT Telephone (916) 4 4 5-3 0 0 7 Third District,Kentfield RICHARD NEVINS f �l� Fourth District,Pasadena KENNETH CORY November 18, 1983 Controller,Sa`ron nto DOUGLAS D. BELL &ect&ve Secretary CTTY OF DUBLIN 0113 s P . O. BOX 2340 . 95 DUBLIN , CA 94566 4-82 /G�I��O cf GQ-G(� �CG�I/icLlir u-e- GL. CR-G�1L To City Addressed: Chapter 5 of the Statutes of 1979 provided for the repeal of Sections 7202 and 7203 of the Revenue and Taxation Code and the addition of new Sections 7202 and 7203 operative January 1, 1984 . The effect of this is to delete from the required provisions of the county and city Bradley-Burns ordinances the exemptions for operators of waterborne vessels . AB 900 was introduced in the current legislative session to postpone the effective date of this change in the prior provisions of the Bradley-Burns ordinances to January 1, 1994 . This bill was passed by the Assembly and Senate but was vetoed , by the Governor . The Governor ' s veto message stated, in effect, that he would not object to a two-year extension of these exemptions if a bill to that effect were introduced into the Legislature in January of 1984 . Because the 1979 changes to the Bradley.-Burns Uniform Local Sales and Use Tax Law remain operative it is imperative that all city and county ordinances be amended prior to January 1, 1984 . There is a possibility that the waterborne vessel exemptions will be restored early in 1984 . Therefore, there must be a contingent amendment to those ordinances to provide for the watercraft exemption to be reinstated if the law is again changed . Your city has enacted a short form ordinance on Form BT-527A Rev. 2 (11-74) . Enclosed are copies of proposed ordinances to amend the sections of your ordinance relating to exemptions and exclusions that may be used. Many cities have codified their Bradley-Burns sales and use tax ordinances . If your city has done so, the section numbers in the ordinance forms will have to be changed to correspond to the sections in the city code. STATE OF CALIFORNIA STATE BOARD OF EQUALIZATION CONWAY ;Angeles 1020 N STREET, SACRAMENTO, CAUFORNIA ERNEST J. DRONENSURG. 1R. (P.O. BOX 1799, SACRAMENTO, CALIFORNIA 93608) Second District,Son Die" WILLIAM M. Telephone (916) 445-3007 TA � � Third District,Kon*fMW RICHARD NEVINS Fourth District.Pasadena KENNETH CORY November 28 ) 1983 Cantral"r•Socra""^1O DOUGLAS D. SELL — —— &ftvh o secrdory CITY OF DUBLIN 0113 P . O. BOX 2340 . . 95 DUBLIN , CA 94566 4-82 Gentlemen: In our letter dated November 18 , 1983 , we informed you of the need to amend your Bradley-Burns Ordinance to delete ; the exemption for operators of waterborne vessels . Since this exemption will no longer be applicable on January 1 , 19841 your present ordinance will not comply with the law and our agreement to collect taxes will no longer be valid . Therefore , it is imperative that we receive the requested four certified copies of the amendments to your Bradley-Burns Ordinance on or before December 15 , 1983 . If you anticipate some difficulty in getting the amended ordinances to this office by the above date, please call me at the number listed above as soon as possible . Very trul ups , K. H . Christensen Supervisor , Local Tax Unit 0532A t ORDINANCE NO. - 83 AN ORDINANCE OF THE CITY OF DUBLIN TO AMEND ORDINANCE NO. IMPOSING A SALES AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION THE CITY COUNCIL OF THE CITY OF DUBLIN DOES ORDAIN AS FOLLOWS : Section 1 . Section 12 of Ordinance No. is amended to read: Section 12 . EXCLUSIONS AND EXEMPTIONS ( a) The amount subject to tax shall not include any sales or use tax imposed by the State of California upon a retailer or consumer. (b) The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with _ Part 1 . 5 of Division 2 of the Revenue and Taxation Code by any city and county, or city, in this state shall be exempt from the tax due under this ordinance . (c) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the laws of this state, the United States, or any foreign government. ( d) In addition to the examptions provided in Sections 6366 and 6366 . 1 of the Revenue and Taxation Code the storage, use, or other consumption of tangible personal property purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government is exempted from the use tax . Section 2 . Section 12 of Ordinance No. as amended by Section 1 - of this ordinance is amended to read: Section 12 . EXCLUSIONS AND EXEMPTIONS (a) The amount subject to tax shall not include any sales or use tax imposed by the State of California upon a retailer or consumer. (b) The storage, use, or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with Part 1 . 5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this state shall be exempt from the tax due under this ordinance . (c) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes. (d) The storage, use, or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property of such vessels for commercial purposes is exempted from the use tax . AN ORDINANCE TO AMEND ORDINANCE N0. IMPOSING A SALES AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION Page 2 (e) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale ofrincipall poutside property city to operators of aircraft to be used or consumed p P Y in which the sale is made and directly and exxcllusivelyinttheauthorityuof the aircraft as common carriers of persons or property laws of this state, the United States, or any foreign government. ( f ) In addition to the exemptions provided in Sections 6366 and 6366 . 1 of the Revenue and Taxao odeu�ehasedrbyeoperatorrs of aircraft consumption of tangible personal property P and used or consumed by such operators directly and exclusively inrthe use of such aircraft as common carriers o persons compensation under a certificate of public vonvenience and necessity issued pursuant to the laws of this state, the United States, or any foreign government is exempted from the use tax. Section 3 . Section 1 shall be operative January 1, 1984 . Section 4 . Section 2 shall operative on Section any act of the Legislature of t 7202 of the Revenue and Taxation Code or which repeals and reefromscitytsales 7202 of the Revenue and Taxation Code to provide and use taxes for operators of waterborne vessels in the same, or (i) ( 7 ) and substantially the same, language as that existing in subdivisions ( i ) ( 8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983 . Section ' 5 . This ordinance relates to taxes for the usual and current expenses of the city and shall take effect immediately. Section 6 . POSTING OF ORDINANCE The City Clerk of the City of Dublin shall cause this ordinance to be least three ( 3 ) public places in the City of Dublin in posted in at i of the Government Code of the State of accordance with Section 36933 California. ' PASSED AND ADOPTED by the City Council of the City of Dublin on this 12th day of December, 1983 , by the following votes : AYES : NOES : ABSENT: Mayor ATTEST : City Clerk