HomeMy WebLinkAboutState of California - State Board of Equalization - Agreement for Local Sales and Use Taxes
City of Gi1rQY
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AMENDMENT OF
AGREEMENT FOR STATE ADMINISTRATION OF LOCAL SALES AND USE TAXES.-...-
Whereas, the City hereinabove designated, hereinafter called the City, and the State Board of Equal.-
ization, hereinafter called the Board, have heretofore entered into an agreement for state administration of
local sales and use taxes as contemplated under Part 1.5 of Division 2, of the Revenue and Taxation Code
and are now desirous of amending that agreement in the mannet hereinafter set forth, the City and the Board
do hereby agree that such agreement shall be amended in the following particulars, to wit:
Paragraph C of Article II of said Agreement is amended to read:
C. Transmittal of money. Except as otherwise provided herein, all local taxes collccted
under the provisions of the City ordinance shall be transmitted to the City periodically as
promptly as feasible. A statement shall be furnished indicating the amount withheld pur-
suant to Article IV of this Agreement.
The purpose of the foregoing Amendment IS to conform said Agreement to a plan for accelerated
transmittal of local sales tax collections as described in a letter of March 12, 1959, addressed to Mr.
Richard Carpenter, Executive Director and General Counsel, League of California Cities, by Dixwell L.
Pierce, Secretary, State Board of Equalization. For the purposes of this Amendment this letter is incorpo-
rated in said Agreement by reference as though fully set forch therein.
STATE BOARD OF EQUAUZ~inON
By _~~U tJ~LA.<? (
Secretary
CITY OF
JILROY
By
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Si(~ Sa11cb.ez
(Type name here)
Date: April 20, 1959
l;ayor
(Type title here)
!MPOR T ANT INSTR UCJlON~
1. Insert name of the City at wI' of page.
2. Sign five copies of the Amendment, sending all of them to the Secretary, State Board of Equalization,
Sacramento 8, California. (If the City desires to keep a file copy of the Amendment, an additional
copy should be prepared on the form which has been supplied for that purpose.)
3. Attach to ~~ch copy of the Amendment sent to the Board, a certified copy of the order, motion or reso-
lution of the City Council authorizing the execution of the Amendment.
~~nation
When an Amendment is submitted in accordance with the foregoing instructions, it will be executed on
behalf of the Board and submitted to the State Department of Finance for approval. If a copy has been
retained by the City, it may then be conformed to the approved copy.
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RE$OLUTION PB.OVIDING FOR TEE ACCFLLE?ATED TH.ANSI'ITTAL OF SALES AJ'W USE TAX COL-
LEeT~QJS7 '1(9; TH~. CITY OF GILROY
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/'\ H~~EF~S,';"{he State Board of Equalization has developed a plan to acceler-
ate th~tra~s~ittal of collections under the Bradley-Burns Uniform Local Sales
and Us~Tax,LaiJ through procedures evolved to traEsfer most of the tax proceeds
to loo&:.;t t~'easuries at least a month earlier than heretofore; and
RESOLUTION NO. 505
:nrpR:AS , it is advantageous to the City of ::alroy that these accelerated
paJrments be made to the City and,
1:lHE?.I'AS, an agreement between the City of Gilroy and the State Board of
Equalization providing for the earlier transmittal of these collections is de-
sired both b;r the State Board of Eql~lization and the City of Gilroy.
Nmr THEREFORE, BE IT?,ESOL\Il~L that the City of Gilroy enter into an agree-
ment with the State Board of Equalization providing for the earlier transrnittal
of these collections and that thE) Na"?or be end is hereby authorized to sign the
agreement.
PASSED and ADOPTED this 20th day of April, 1959
AYES:
COUNCILEEN Pate, B.ush, Petersen, Hentworth, and Jordan
NOES:
COUNCIUlLE~N None
ABSENT:
COtJNCILFEN Gallo
APPROVED:
Sig Sanchez
Mayor
ATTEST:
G. B. Carr
City Clerk
CEB:TIFICATICN
I, G. B. Carr, City Clerk of the City of Gilroy, State of California, do
hereby certify the fore70in7 to be true and correct copy of a resolution adopted
by the City Council of the City of Gilroy at a meeting held on the 20th day of
April, 1959, as the same appears of record in my office.
IN 1,.JITNESS 1JFIE?J.<:OF, I have hereunto set my hand this 20th day of April, 1959.
.M~.
City Clerk
II<
City of
Gilroy
AGREEMENT FOR STATE ADMINISTRATION OF LOCAL SALES AND USE TAXES
To carry out Part 1.5 of Division 2 of the Revenue and Taxation Code and the sales and
use tax ordinance of the City hereinabove designated, hereinafter called the City, copy of which
ordinance is attached hereto, the City and the State Board of Equalization, hereinafter called
the Board, do agree as follows:
ARTICLE I
DEFINITIONS
U nl e s s the context requires otherwise, wherever the following terms appear In this
Agreement they shall be interpreted to mean the following:
1. "Local Taxes" shall mean the sales and use taxes, penalties, and interest imposed
by the City under an ordinance which complies with Part 1.5, Division 2, of the Revenue and
Taxation Code.
2. !'Conforming Taxing Jurisdiction" shall mean any county, city, or city and county of
this State which has adopted a sales and use tax ordinance of the kind described in Part 1. 5 of
Division 2 of the Revenue and Taxation Code and which has entered into a contract with the
State Board of Equalization to perform all functions incident to the administration and operation
of the ordinance.
3. "City Ordinance" shall mean the Uniform City Sales and Use Tax Ordinance attached
hereto, as amended from time to time.
.
ARTICLE II
ADMINISTRATION AND COLLECTION OF LOCAL TAXES
A. Administration. The Board and the City a g r e e that the Board shall perform ex-
clusively all functions incident to the administration and operation of the City ordinance.
B. Other applicable laws. The City agrees that all provisions of law applicable to the
administration and operation of the State Sales and Use Tax Law shall be applicable to the
administration and operation of the City ordinance and that money collected pursuant to the City
ordinance may be deposited in the State Treasury to the credit of the Retail Sales Tax Fund and
may be drawn from that Fund for the purpose of making refunds, for the purpose of compensating
and reimbursing the Board pursuant to Article IV of this Agreement and for the purpose of trans-
mitting to the City the amount to which the City is entitled.
C. Transmittal of money. Except as otherwise provided herein, all local taxes collected
under the provisions of the City ordinance shall be transmitted to the City periodically as
promptly as feasible. Such transmittals shall be made at least twice in each calendar quarter.
Transmittals may be made by mail or by deposit to the account of the City in a bank in Sacra-
mento designated by the City. A statement shall be furnished indicating the amount withheld
pursuant to Article IV of this agreement.
D. Rules. The Board shall prescribe and adopt such rules and regulations as in its
judgment are necessary or desirable for the administration and operation of the City ordinance
and the distribution of the local taxes collected thereunder.
BT-527 REV. 4 (8-73)
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E. Preference. Unless the payor instructs ;therwise and except 'as otherwise provided
in this Agreement, the Board shall give no preference in applying money received for sales and
use taxes owed by a taxpayer but shall apply all monies collected to the satisfaction of the
claims of the State and the claims of the City as their interests appear.
F. Security. The Board agrees that any security which it hereafter requires to be fur-
nished under the State Sales and Use Tax Law will be upon such terms that it also will be
available for the payment of the claims of the City for local taxes owing to it as its interest
appears. The Board shall not be required to change the terms of any security now held by it and
the City shall not participate in any security now held by the Board.
G. Names of sellers. The Board agrees to furnish the names, addresses, account num-
bers, and the business classification codes of all sellers holding sellers' permits within the
City.
H. Records of the Board. When requested by resolution of the City Council of the City,
the Board shall permit any duly authorized officer or employee of the City to examine the sales
and use tax records of the Board pertaining to sales and use taxes collected for the City by the
Board _ pursuant to this Agreement. Information obtained by the City from the examination of the
Board's records shall be used by the City only for purposes related to the collection of local
sales and use taxes by the Board pursuant to this Agreement.
I. City tax rate. The City agrees that any change in the rate of its conforming local
sales and use tax will be made effective at the beginning of a calendar quarter and that it will
give the Board at least two months' notice thereof and that it will also give notice to the Board
of Supervisors of the County in which the City lies.
J. Annexation. The City agrees that the Board shall not be required to give effect to an
annexation, for the purpose of collecting and distributing city sales and use taxes, earlier than
the first day of the calendar quarter which commences not less than two months after notice to
the Board. The notice shall include two maps of the annexed area together with the address
of the property nearest to the extended city boundary on every street crossing that boundary.
ARTICLE 1lI
ALLOCATION OF TAX
A. Deficiency determination. All local taxes collected as a result of determinations or
billings made by the Board, and all amounts refunded or credited may be distributed or charged
to the respective conforming t a x i n g jurisdictions in the same ratio as the taxpayer's self-
declared local tax for the period for which the determination, billing, refund, or credit applies.
B. Allocation. When the I 0 c a I t a x is collected from or refunded or credited to the
following:
(1) Retailers having traveling sellers' permits or certificates of authority to collect
use tax issued by the Board;
(2) Persons regarded by the Board as retailers pursuant to Section 6015 of the Reve-
nue and Taxation Code;
(3) Persons for whom no continuing account number was active at the date of pay-
ment; or
(4) Other retailers or purchasers having no permanent place of business within the
State as determined by the Board;
BT-527 REV. 4 (8-73)
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or when the local tax is collected by way of deduction from, or when a refund of local tax is
made in conjunction with, refunds of motor vehicle fuel license taxes, or when local tax is col-
lected and direct allocation is impractical, the Board may distribute or charge such local tax to
all conforming taxing jurisdictions in the county in which the sale or use occurred using the
ratios reflected by the distribution of taxes collected from all other taxpayers in that county.
To the extent that this cannot be done in a manner consistent with the economic and efficient
performance of the duties of the Board under the Revenue and Taxation Code and the provisions
of this Agreement, the Board may distribute or charge such local tax to all conforming taxing
jurisdictions of this State using the ratios reflected by the distribution of taxes collected from
all other taxpayers in the State. In making allocations under this paragraph county tax imposed
at a rate in excess of 1 percent shall be excluded.
C. Vehicles, Vessels, and Aircraft. For the purposes of allocating local tax with
respect to vehicles required to be registered or identified under the Vehicle Code, and with
respect to vessels and aircraft, the address of the registereq owner appearing upon the applica-
tion for registration or identification may be used by the Board in determining the city of use.
To the extent this cannot be done in a manner consistent with the economic and efficient perfor-
mance of the duties of the Board under the Revenue and Taxation Code and this Agreement, the
Board may allocate tax with respect to such vehicles, vessels, and aircraft in the manner pro-
vided in Paragraph B of this Article.
ARTICLE IV
COMPENSA TION
The City agrees to pay the Board as
nances such amount as is provided by law.
collected by the Board for the City.
the Board's cost of administering the City ordi-
Such amounts shall be deducted from the taxes
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first-class United
States Mail. A notification is complete when deposited in the mail. Communications and notices
to be sent to the Board shall be addressed to:
State Board of Equalization
P.O. Box 1799
Sacramento, California 95808
Attention: Executive Secretary
Communications and notices to be sent to the City shall be addressed to:
City Administrator
City of Gilroy
Post Office Box 66
Gilroy, California 95020
BT-527 REV. 4 (8-73)
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B. Term. The date of this Agreement is th~ date on which it is approved by the De- ..
partment of General Services. The Agreement shall take effect on the first day of the calendar
quarter next succeeding the date of such approval, but in no case before the operative date of
the City ordinance, nor on a day other than the first day of a calendar quarter. This Agreement
shall continue until September 30 next following the operative date of the City ordinance, and
shall thereafter be renewed automatically from year to year unless one of the parties gives
written notice of termination at least two months before the end of the term. The Board may ter-
minate this Agreement in the manner provided by law.
C. This Agreement replaces and supersedes the Agreement dated September 30, 1956
heretofore entered into by the Board and the City, wh ich prior Agreement is here by terminated.
STATE BOARD OF EQUALIZATION
By
Executive Secretary
CITY OF
GilROY
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/s/ FRED O. WOOD
(Type name here)
City Administrator
(Type title here)
BT-527 REV. 4 (8-73)
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IMPORT ANT Il\STR CCTlONS
1. Insert name of the City at top of page 1; insert address for communications and notices to City in
Section A, Article V.
2. Sign five copies of the Agreement. sending all of them to the Secretary, State Board of Equalization,
P.O. Box 1799, Sac ram e n t 0, California 95808. (If the City desires to keep a file copy 0 f the
Agreement, an additional copy should be prepared for that purpose.)
3. On page 4 insert the date of the original Agreement for administration of the City tax.
4. Attach to each copy of the Agreement sent to the Board, a certified copy of the City Sales and Use
Tax Ordinance, also attach to each copy a certified copy of the ,order, motion or resolution of the City
Council authorizing the execution of the Agreement.
Explanation
When an Agreement is transmitted in accordance with the foregoing instructions, it will be executed
on behalf of the Board and submitted to the Department of General Services for approval. When approved,
one copy will be returned to the City with endorsement of approval. If a copy has been retained by the
City, it may then be conformed to the approved copy.
RT.527 REV. 4 18-73)
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