Ordinance 666
o B. D ~ N ~ N Q E NO. 666
AN ORDINANCE OF THE CITY OF GILROY AMENDING SEC. 22.6, 22.8 and 22.9
OF THE GILROY CITY CODE RELATING TO SALES AND USE TAX
THE COUNCIL OF THE CITY OF GILROY DOES ORDAIN AS FOLLOWS:
SECTION 1. Sec. 22.6 of the Gilroy City Code is hereby
amended to read as follows:
Sec. 22.6 Purpose of Article.
The City Council hereby declares that this article is
adopted to achieve the following, among other purposes, and directs
that the provisions hereof be interpreted in order to accomplish
those purposes:
(a) To adopt sales and use tax regulations which comply
with the requirements and limitations contained in Part 1.5 of Div-
ision 2 of the Revenue and Taxation Code of the State.
(b) To adopt sales and use tax regulations which incorpor-
ate provisions identical to those of the sales and use tax law of the
state insofar as those provisions are not inconsistent with the re-
quirements and limitations contained in Part 1.5 Division 2 of the
said Revenue and Taxation Code.
(c) To adopt sales and use tax regulations which impose
a ninety-one one hundredths of one percent tax and provide a measure
therefor that can be administered and collected by the State Board
of Equalization in a manner that adapts itself as fully as practical
to, and requires the least possible deviation from, the existing
statutory and administrative procedures followed by the State Board
of Equalization in administering and collecting the state sales and
use taxes.
(d) To adopt sales and use tax regulations which can be
administered in a manner that will, to the degree possible, consistent
with the provisions of Part 1.5 of Division 2 of the State Revenue
and Taxation Code, minimize the cost of collecting city sales and
use taxes and at the same time, minimize the burden of record keeping
upon persons subject to taxation under the provisions of this article.
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SECTION 2. Sec. 22.8 of the Gilroy City Code is hereby
amended to read as follows:
Sec. 22.8. Sales tax generally.
(a) (1) For the privilege of selling tangible personal
property at retail a tax is hereby imposed upon all retailers in
the city at the rate of ninety-one hundredths of one per cent of the
gross receipts of the retailer from the sale of all tangible personal
property sold at retail in the city on and after the operative date
of this article.
(2) For the purposes of this ordinance, all retail sales
are consummated at the place of business of the retailer unless the
tangible personal property sold is delivered by the retailer or his
agent to an out-of-State destination or to a common carrier for
delivery to an out-of-State destination. The gross receipts from
such sales shall include delivery charges, when such charges are
subject to the State sales and use tax, regardless of the place to
which delivery is made. In the event a retailer has no permanent
place of business in the State or has more than one place of business,
the place or places at which the retail sales are consummated shall
be determined under rules and regulations to be prescribed and adopted
by the Board of Equalization.
(b) (1) Except as hereinafter provided, and except insofar
as they are inconsistent with the provisions of Part 1.5 of Division
2 of the State Revenue and Taxation Code, all of the provisions of
Part 1 of Division 2 of said Code, as amended and in force and effect
on October 1, 1956, applicable to sales taxes are hereby adopted
and made a part of this section as though fully set forth herein.
(2) Wherever, and to the extent that, in Part 1 of
Division 2 of the Revenue and Taxation Code the state is named or
referred to as the taxing agency, the city shall be substituted therefor.
Nothing in this subsection shall be deemed to require the substitution
of the name of the city for the word "statet. when that word is used
as part of the title of the state controller, the state treasurer, the
state board of control, the state board of equalization or the name of
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the state treasury or of the constitution of the state; nor shall the
name of the city be substituted for that of the state in any section
when the result of that substitution would require action to be taken
by oragainst the city or any agency thereof, rather than by or
against the state board of equalization, in performing the functions
incident to the administration or operation of this article; and
neither shall the substitution be deemed to have been made in those
sections, including, but not necessarily limited to, sections referring
to the exterior boundaries of the state, where the result of the
substitution would be to provide an exemption from this tax with res-
pect to certain gross receipts which would not otherwise be exempt
from this tax while those gross receipts remain subject to tax by the
state under the provisions of Part 1 of Division 2 of the Revenue and
Taxation code nor to impose this tax with respect to certain gross re-
ceipts which would not be subject to tax by the state under the said
provisions of that code; and, in addition, the name of the city shall
not be substituted for that of the state in Sections 6701, 6702,--
(except in the last sentence thereof), 6711, 6715, 6737, 6797 and
6828 of the state Revenue and Taxation Code as adopted.
(3) If a se11er~s permit has been issued to a retailer
under section 6068 of the State Revenue and Taxation Code, an additional
se11er~s permit shall not be required by reason of this section.
(4) There shall be excluded from the gross receipts
by which the tax is measured:
(i) The amount of any sales or use tax imposed by
the state upon a retailer or consumer.
(ii) Receipts from sales to operators of common
carrier and waterborne vessels of property to be used or consumed
in the operation of such common carriers or waterborne vessels
principally outside of this city..
SECTION 3, Sec. 22.9 of the Gilroy City Code is hereby
amended to read as follows:
Sec. 22.9. Use tax generally.
(a) An excise tax is hereby imposed on the storage, use or
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other consumption in the city of tangible personal property purchased
from any retailer on or after the operative date of this article, for
storage, use or other consumption in the city at the rate of ninety-
one hundredths of one per cent of the sales price of the property.
The sales price shall include delivery charges when such charges are
subject to state sales or ue tax regardless of the place to which
delivery is made.
(b) (1) Except as hereinafter provided , and except inso-
far as they are inconsistent with the provisions of Part 1.5 of
Division 2 of the state Revenue and Taxation code, all of the provis-
ions of Part 1 of Division 2 of such code, as amended and in force
and efcect on October 1, 1956, applicable to use taxes are hereby
adopted and made a part of this section as though fully set forth
herein.
(2) Whereever, and to the extent that, in Part 1 of
Division 2 of the said Revenue and Taxation code the state of California
is named or referred toas the taxing agency, the name of this city
Shall be substituted therefor. Nothing in this subdivision shall be
deemed to require the substitution of the name of this C~ for the word
"State1a when that word is used as part of the title of the state Con-
troller, the state Treasurer, the state Board of Control, the state
Board of Equalization, or the name of the state Treasury, or of the
Constitution of the state of California7 nor shall the name of the
city be substituted for that of the state in any section when the
result of that substitution would require action to be taken by or
against the city or any agency thereof rather than by or against the
state Board of Equalization, in performing the functions inc~dent
to the administration or operation of this ordinance7 and neither
shall the substitution be deemed to have been made in those sections,
including but not necessarily limited to, sections referring to the
exterior boundaries of the state of California, where the result of
the substitution would be to prOVide an exemption from this tax wih
respect to certain storage, use or other consumption of tangible
personal property which would not otherwise be exempt from this tax
while such storage, use or other consumption remains subject to tax
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by the state under the pDovisions of Part 1 of Division 2 of the
said Revenue and Taxation Code, or to impose this tax with respect
to certain storage, use or other consumption of tangible personal
property which would not be subject to tax by the state under the
said provisions of that Code; and in addition, the name of the City
shall not be substituted for that of the state in Sections 6701,
6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797
and 6828 of the said Revenue and Taxation Code as adopted, and the
name of the City shall not be substituted for the word "staten in
the phrase "retailer engaged in business in this state" in Section
6203 nor in the definition of that phrase in Section 6203.
(3) There shall be exempt from the tax due under this
section:
(i) The amount of any sales or use tax imposed by the
state upon a retailer or consumer.
(ii) The storage, use or~her consumption of tangible
personal property, the gross receipts from the sale of which has
been subject to sales tax under a sales and use tax ordinance en-
acted 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.
(iii) The storage or use of tangible personal property
in the transportation or transmission of persons, property or communi-
cations, or in the generation, transmission or distribution of elec-
tricity or in the manufacture, transmission or distribution of gas
in intrastate, interstate or foreign commerce by public utilities
which are regulated by the public utilities commission of the state.
(iv) The use or consumption of property purchased by
operators of common carrier and waterborne vessels to be used or
conSumed in the operation of such common carriers or waterborne
vessels principally outside the city.
SECTION 4. All ordinances and parts of ordinances in conflict
herewith are hereby repealed.
SECTION 5. This ordinance shall become operative on January 1,
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SECTION 6. This ordinance shall take effect 30 days from and
after it's adoption and approval.
PASSED AND ADOPTED this eO:.t'h_ day of November, 1961, by the
following vote:
AYES: counciJJ!tembers:Duffin,Goodrich,Jordan,Petersen,Quartl roll,
Petersen,Wentworth, and Sanchez.
NOES: Counci1~bers : None
ABSENT: councilriKMbers :None
APPROVED:
~.~ .
~ Mayor ~/
ATTEST:
.'
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/"--.1.. ;-1...4.--<.//I'yrw L~'J. /'1., l' .
city Clerk
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I, SUSANNE E. PAYNE , City Clerk of the City
of Gilroy, do hereby certify that the attached Ordinance No. 666
Is a true and correct copy of the whole of such Ordinance. duly
adopted by the Council of the City of Gilroy, at a regular meeting
of sa i d Counc i I he I d on the 20 th day of November
19 61 ,at which meeting a quorum was present.
I further certify that the said ordinance has been pub-
lished in accordance with the charter of the City of Gilroy.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official seal of the City of Gilroy, this 21st day of
November , 19...2L.
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