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SANTA CLARA COUNTY CODE OF ORDINANCES: CHAPTER II. SALES AND USE TAX*

Copyrighted by SANTA CLARA COUNTY CODE & Municipal Code Corporation, 1998.

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CHAPTER II.
SALES AND USE TAX*

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State law reference(s)--Local sales and use taxes, Revenue and Taxation Code § 7200 et seq.

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Sec. A30-11. Title.

This chapter shall be known as the Santa Clara County Uniform Local Sales and Use Tax Ordinance.

(Code 1954, § 2.3-1; Ord. No. NS-216, § 1, 1-2-68)

Sec. A30-12. Purpose.

The Board of Supervisors of the County of Santa Clara hereby declares that this chapter is adopted to achieve the following, among other, purposes, and direct that the provisions hereof be interpreted in order to accomplish those purposes:

(1) To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California (Revenue and Taxation Code § 7200 et seq.);

(2) To adopt a sales and use tax ordinance which incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the said Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.);

(3) To adopt a sales and use tax ordinance which imposes a 1 1/4 percent tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable 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 California state sales and use taxes;

(4) To adopt a sales and use tax ordinance 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 said Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.), minimize the cost of collecting County 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 chapter;

(5) To adopt a sales and use tax ordinance which can be administered in a manner that will exclude the receipts of particular sales from the measure of the sales tax imposed by this County which have been included in the measure of the sales tax imposed by any other county, city and county, or city in any other county in this State, and avoid imposing a use tax on the storage, use or other consumption of tangible personal property in this County when the gross receipts from the sale of, or the use of that property have been subject to a sales or use tax by any other county, city and county, or city in another county of this State, pursuant to a sales and use tax ordinance enacted under the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.).

(Code 1954, § 2.3-2; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216, § 1, 3-21-72)

Sec. A30-13. Operative date.

This chapter shall become operative on the first day of October 1956, if, as of said date, every incorporated city within the County either (a) has adopted no sales and use tax ordinance that is operative or is to become operative, or (b) has adopted a sales and use tax ordinance, sometimes hereinafter referred to as a uniform sales and use tax ordinance, to become operative on or after October 1, 1956, which conforms to the provisions listed in Section A30-16 and which provides for a tax of 91 percent of one percent (0.0091) or less of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the respective cities. Prior to the operative date hereof, this County shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax ordinance.

(Code 1954, § 2.3-3, Ord. No. NS-216, § 1, 1-2-61; Ord. No. NS-216.1, § 1, 8-5-69)

Sec. A30-14. Sales tax imposed.

(a) For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the County at the rate of one percent of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the County of Santa Clara on and after October 1, 1956, to and including June 30, 1972, and at the rate of 1 1/4 percent thereafter.

(b) For the purpose of this chapter, 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 Revenue and Taxation Code of the State of California (Revenue and Taxation Code § 7500 et seq.), all of the provisions of Part 1 of Division 2 of said code (Revenue and Taxation Code § 6000 et seq.), as amended and in force and effect on April 1, 1956, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein.

(b) (2) Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 6000 et seq.) the State of California is named or referred to as the taxing agency, the County of Santa Clara shall be substituted therefor. Nothing in this subdivision shall be deemed to require the substitution of the name of the County of Santa Clara for the word "State" when that word is used as part of the title of the State Controller, State Treasurer, the State Board of Control, the State Board of Equalization, of the name of the State Treasury, or of the constitution of the State of California; nor shall the name of the County 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 County 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 chapter; 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 with respect 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 (Revenue and Taxation Code § 6000 et seq.); nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the State under the said provisions of that code; and, in addition, the name of the County shall not be substituted for that of the State in Revenue and Taxation Code §§ 6701, 6702, except in the last sentence thereof, 6711, 6715, 6737, 6797 and 6826 as adopted.

(b) (3) If a seller's permit has been issued to a retailer under Revenue and Taxation Code § 6067, an additional seller's permit shall not be required by reason of this section.

(b) (4) There shall be excluded from the gross receipts by which the tax is measured:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) Eighty percent of the gross receipts from the sale of property to operators of common carriers and waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside of this County.

The following provisions shall be operative January 1, 1984:

(b) (4.5) There shall be excluded from the gross receipts by which the tax is measured:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) Eighty percent of the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the County 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 authority of the laws of this State, the United States or any foreign government.

The following provisions shall be operative on the operative date of any act of the Legislature of the State of California, which amended or repeals and reenacts Revenue and Taxation Code §§ 7202 and 7203 to provide an exemption for operators of waterborne vessels in the same or substantially the same language as that existing in those statutory sections as they read on October 1, 1983.

(b) (4.5) There shall be excluded from the gross receipts by which the tax is measured:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) Eighty percent of the gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes.

(3) Eighty percent of the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the County 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 authority of the laws of this State, the United States or any foreign government.

(Code 1954, § 2.3-4; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216.2, § 2, 3-21-72; Ord. No. NS-216.3, § 1, 9-25-73; Ord. No. NS-216.4, §§ 1, 4, 12-13-83)

Sec. A30-15. Use tax imposed.

(a) An excise tax is hereby imposed on the storage, use or other consumption in the County of Santa Clara of tangible personal property purchased from any retailer on or after October 1, 1956, for storage, use or other consumption in the County at the rate of one percent of the sales price of the property to and including June 30, 1972, and at the rate of 1 1/4 percent thereafter. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

(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 Revenue and Taxation Code of the State of California (Revenue and Taxation Code § 7200 et seq.), all of the provisions of Part 1 of Division 2 of said code (Revenue and Taxation Code § 6000 et seq.), as amended and in force and effect on April 1, 1956, applicable to use taxes, are hereby adopted and made a part of this section as though fully set forth herein.

(b) (2) Wherever, and to the extent that, in Part 1 of Division 2 of the said Revenue and Taxation Code the State of California (Revenue and Taxation Code § 6000 et seq.) is named or referred to as the taxing agency, the name of this County shall be substituted therefor. Nothing in this subdivision shall be deemed to require the substitution of the name of this County for the word "State" 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 the State Treasury, or of the Constitution of the State of California, nor shall the name of the County 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 County 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 chapter; 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 with 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 by the State under the provisions 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 this Code; and in addition, the name of the County shall not be substituted for that of the State in Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 as adopted, and the name of the County shall not be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Revenue and Taxation Code § 6203 nor in the definition of that phrase in Revenue and Taxation Code § 6203.

(b) (3) There shall be exempt from the tax due under this section:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) The storage, use or other 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 enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) by any city and county, county, or city in this State.

(3) Provided, however, that the storage or use of tangible personal property in the transportation or transmission of persons, property, or communications or in the generation, transmission or distribution of electricity 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 of California shall be exempt from 80 percent of the tax due under this section.

The following provisions shall be operative January 1, 1984:

(b) (3.5) There shall be excluded from the tax due under this section:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(2) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) by any city and county, county, or city in this State, shall be exempt from the tax due under this chapter.

(3) In addition to the exemptions provided in Revenue and Taxation Code §§ 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 exempt from 80 percent of the tax.

The following provisions shall be operative on the operative date of any act of the Legislature of the State of California which amended or repeals and reenacts Revenue and Taxation Code § 7202 and 7203 to provide an exemption for operators of waterborne vessels in the same or substantially the same language as that existing in those statutory sections as they read on October 1, 1983.

(b) (3.5) There shall be exempt from the tax due under this section:

(1) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer.

(3) Provided, however, that 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 in such vessels for commercial purposes is exempted from 80 percent of the tax.

(4) And provided that in addition to the exemptions provided in Revenue and Taxation Code §§ 6366 and 6336.1, 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 exempt from 80 percent of the tax.

(Code 1954, § 2.3-5; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216.2, § 3, 3-21-72; Ord. No. NS-216.3, § 2, 9-25-73; Ord. No. NS-216.4, §§ 2, 5, 12-13-83)

Sec. A30-16. Credited against tax.

The following provisions shall be operative January 1, 1984:

Any person subject to a sales or use tax or required to collect a use tax under this chapter shall be entitled to credit against the payment of taxes due under this chapter the amount of sales and use tax due any city in this County, provided that the city sales and use tax is levied under an ordinance including provisions substantially conforming to the provisions of Subdivisions (1) to (8), inclusive, of Revenue and Taxation Code § 7202(h)(1)--(h)(8), and other applicable provisions of Part 1.5 of Division 2 of that code (Revenue and Taxation Code § 7200 et seq.).

Any person subject to a sales or use tax or required to collect a use tax under this chapter shall be entitled to credit against the payment of taxes due under this chapter the amount of sales and use tax due any city in this County, provided that the city sales and use tax is levied under an ordinance including provisions substantially conforming to the provisions of Revenue and Taxation Code § 7202(i)(1)--(i)(10) and other applicable provisions of Part 1.5 of Division 2 of that code (Revenue and Taxation Code § 7200 et seq.).

(Code 1954, § 2.3-6; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216.3, § 3, 9-25-73; Ord. No. NS-216.4, §§ 3, 6, 12-13-83)

Sec. A30-16.5. Credit against tax.

Any person subject to a sales or use tax or required to collect a use tax under this chapter shall be entitled to credit against the payment of taxes due under this chapter the amount of sales and use tax due any city in this County, provided that the city sales and use tax is levied under an ordinance including provisions substantially conforming to the provisions of Revenue and Taxation Code § 7202(i)(1)--(i)(10) and other applicable provisions of Part 1.5 of Division 2 of that code (Revenue and Taxation Code § 7200 et seq.).

(Ord. No. NS-216.3, § 4, 9-25-73)

Sec. A30-17. Legal actions.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceedings in any court against the State or this County or against any officer of the State or this County to prevent or enjoin the collection under this chapter or Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) of any tax or any amount of tax required to be collected.

(Code 1954, § 2.3-7; Ord. No. NS-216, § 1, 1-2-68)

Sec. A30-18. Incorporation of amendments to state law.

All amendments of the Revenue and Taxation Code enacted subsequent to April 1, 1956, which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code (Revenue and Taxation Code § 7200 et seq.) shall automatically become a part of this chapter.

(Code 1954, § 2.3-8; Ord. No. NS-216, § 1, 1-2-68)

Sec. A30-18.5. Operative dates of certain sections.

(a) Sections A30-14(b)(4.5), A30-15(b)(3.5), and A30-16.5 of this chapter shall become operative on January 1 of the year following the year in which the State Board of Equalization adopts an assessment ratio for state-assessed property which is identical to the ratio which is required from local assessments by Revenue and Taxation Code § 401, at which time Sections A30-14(b)(4), A30-15(b)(3), and A30-16 shall become inoperative.

(b) In the event that Sections A30-14(b)(4.5), A30-15(b)(3.5), and A30-16.5 of this chapter become operative and the State Board of Equalization subsequently adopts an assessment ratio for state assessed property which is higher than the ratio which is required for local assessments by Revenue and Taxation Code § 401, Sections A30-14(b)(4), A30-15(b)(3), and A30-16 shall become operative on the first day of the month next following the month in which such higher ratio is adopted, at which time Sections A30-14(b)(4.5), A30-15(b)(3.5), and A30-16.5 of this chapter shall be inoperative until the first day of the month following the month in which the Board again adopts an assessment ratio for state-assessed property which is identical to the ratio required for local assessments by Revenue and Taxation Code § 401, at which time Sections A30-14(b)(4.5), A30-15(b)(3.5), and A30-16.5 shall again become operative and Sections A30-14(b)(4), A30-15(b)(3), and A30-16 shall become inoperative.

(Ord. No. NS-216.3, § 5, 9-25-73)

Editor's note--For operative dates for §§ A30-14(b)(4.5), A30-15(b)(3.5) and A30-16 later than those given in this § A30-18.5, see those individual sections.

Sec. A30-19. Inoperation of chapter.

This chapter shall become inoperative on the first day of the first calendar quarter which commences more than 60 days following the date upon which any city within the County initially adopts a uniform sales and use tax ordinance with the rate greater than one percent or increases the rate of tax in an existing uniform sales and use tax ordinance to a rate greater than one percent.

This chapter may be made inoperative not less than 60 days, but not earlier than the first day of the calendar quarter, following the County's lack of compliance with Article II of Chapter 2 of Division 3 of Title 3 of the Government Code (Government Code § 29530).

(Code 1954, § 2.3-9; Ord. No. NS-216, § 1, 1-2-68; Ord. No. NS-216.1, § 2, 8-5-69; Ord. No. NS-216.2, § 4, 3-21-72; Ord. No. NS-216.5, 1-8-85)

Sec. A30-20. Penalty.

Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than $500.00 or by imprisonment for a period of not more than six months in the County jail or by both such fine and imprisonment.

(Ord. No. NS-216, § 1, 1-2-68)

Sec. A30-21. Severability.

If any section, subsection, sentence, clause, phrase or portion of this chapter, including but not limited to any exemption, is, for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this chapter. The Board of Supervisors hereby declares that it would have adopted this chapter and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions may be declared invalid or unconstitutional.

(Code 1954, § 2.3-11; Ord. No. NS-216, § 1, 1-2-68)

Secs. A30-22--A30-31. Reserved.