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Council Meeting 12-13-83
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Santa Monica, Cal~fornia
STAFF REPORT
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To: Mayor and City Council
From: City Attorney
Subject: Ordlnance for Adoption Amendlng Municipal Code Sections
6500.261, 6500.262 and 6500.263 Relating to Sales Tax
INTRODUCTION
In late November, 1983 the State Board of Equalization notif~ed
City staff that the City's Sales Tax ordinance must be amended by
January 1, 1984 to delete the exemption for operators of waterborne
vessels.
Failure to amend the City's Sales Tax ordlnance as requested
by the State Board of Equalizat~on could result in the City's 10slng
ninety days of Sales Tax revenues, Wh1Ch is approx1mately $2.5 milllon.
BACKGROUND
Chapter 5 of the Statutes of 1979 provlded 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 statute 1S to delete from the required provisions of the
Clty's Sales Tax ordlnance the exemption for operators of waterborne
vessels.
AB 900 was introduced in the current legislative session to
postpone the effective date of this change to January I, 1994. This
b111 was passed by the Assembly and Senate but was vetoed by the
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Governor. The Governor's veto message stated, in effect, that he would
not obJect to a two-year extension of the exemption if a bill to that
effect were introduced into the leg~slature in January of 1984.
Because the 1979 changes remain operative, it is imperat1ve that
the City's ordinance be amended prior to January 1, 1984. However,
there is a possibility that the waterborne vessel exemption will be
restored early ~n 1984. Therefore, there must also be a contingent
amendment to provide for the watercraft exempt10n to be reinstated if
the law is aga1n changed.
RECOMMENDATION
It 15 respectfully recommended that the accompanY1ng ord1nance be
adopted.
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DISTRIBUTION OF
RESOLUTION #
Date c;;t/I:3 /! s
l_-Df
Counc~l Meeting
A.genda Item It
Was It amended?
VOTE- Aff~rmatIve-
NegatIve'
Abstain"
Absent;
CU!-,f 7
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ORDINANCE #I
Introduced'
Adopted:
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*- ALWAYS PFBLISH P.ooPTED ORDlNA"iCES
DISTRIBUTION: ORIGINAL to be SIgned, 5ealed and flIed In Vault
NEWSPAPE\PUBLI~TroN)Date: ) -tj)
Department orIgInatIng staff report (
Ytanagement Serv!ces Lynne Barrette 0rdlnances only
Agency mentIoned In document or staff report
SubJect fIle (agenda packet)
Counter file
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ParkIng Auth.
Others'
A~rport
Purchasing
Audltorum
Personnel
BUIldIng Dept.
PlannIng
PolIce (en-
forcement?)
EnVIron. Servo
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FIre
Recr/Parks
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General Servo
Transportation
LIbrary
Treasurer
Manager
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SE;\D FOUR COPIES OF ALL ORDINANCES TO:
COD~D SYSTEMS, At~h-Pete~ Macl~arie
120 Baln ~tr"2'et
AV0~f N~w Jersey_07?17
SE:\D FOUR COPIES OF .ALT, ORnT\l'A),J('F.~ to:
PRESIDING JUDGE
SANTA MONICA MUNICIPAL COURT
1725 MAIN STREET
SA~TA MONICA, CA 90401
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CA:RMM:]w Santa Mon~ca, California
City Council Meeting 12-13-83
ORDINANCE NUMBER 1292(CC5)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
~~ENDING SECTIONS 6500.261, 6500.262, AND
6500.263 OF THE SANTA MONICA MUNICIPAL
CODE RELATING TO EXCLUSIONS AND
EXEMPTIONS FROM THE SALES AND USE TAX
ADMINISTERED BY THE STATE BOARD OF
EQUALIZATION
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1.
Sections 6500.261, 6500.262, and 6500.263 of
the Santa Monica Muncipal Code are amended to read as follows:
Section
6500.261.
Exclusion
and
Exemptions.
(a) The amount subject to tax shall
not include any sales or use tax imposed by
the State of Cal~fornia 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 ord~nance enacted 10 accordance with
Part 1.5 of Divis10n 2 of the Revenue and
Taxation Code by any city and county, county,
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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 rece~pts 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 authority of the laws of this
state, the United States, or any fore~gn
government.
(d) In addition to
provided in Sections 6366
Revenue and Taxation Code
the exemptions
and 6366.1 of the
the storage, use,
or other consumption of tangible personal
property purchased by operators of aircraft
and used or consumed by such operators
d~rectly 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 fore1gn
government is exempted from the use tax.
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Section
6500.262.
Exclus~ons
and
Exemptions.
(a) The amount subject to tax shall
not include any sales or use tax imposed by
the State of California ~pon a retailer or
consumer.
(b) The
storage,
use
or
other
consumpt1on 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 l.5 of Division 2 of the Revenue and
Taxation Code by any city and county, county,
or ci~y in this state shall be exempt from
the tax due under this ordinance.
(e) 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 Clty 1n which the sale is made
and directly and exclusively 1n 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
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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.
(e) There are exempted from the
computation of the amount of the sales tax
the gross receipts from the sale of tang~ble
personal property to operators of aircraft to
be used or consumed principally outide the
city in which the sale is made and directly
and exclus~vely 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.
(f)
In addition to
~n Sections 6366
the exemptions
and 6366.1 of the
provided
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 carr~ers of persons or
property for h~re or compensation under a
cert~ficate of public convenience and
necessity issued pursuant to the laws of this
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state, the United States, or any foreign
government 13 exempted from the use tax.
Section 6500.263. Appl1cation of
provisions Relatins to Exclusions and
Exemptions. Section 6500.262 shall be
operative on the operative date of any act of
the Legislature of the State of California
which amends Section 7202 of the Revenue and
Taxation Code or which repeals and reenacts
Section 7202 of the Revenue and Taxation Code
to provide an exemption from city sales and
use taxes for operators of waterborne vessels
in the same, or substantially the same,
language as that existing in sudiv1sioos
(i)(7) and (i)(a) of Section 7202 as those
subdivisions read on October 1, 1983. In the
event
Section
6500.262
6500.261
shall
shall
become
become
operative, Section
inoperative.
Code
this
SECTION 2. Any provis10n of the
or append1ces thereto incons1stent
ordinance, to the extent of such
Santa Monica Municipal
w1th the provis1ons of
inconsistencies and no
further, are hereby repealed or modified to that extent necessary
to affect the provis1ons of this ordinance.
SECTION 3. If any sect1on, subsection, sentence, clause,
or phrase of this ordinance is for any reason held to be invalid
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or unconstitut~onal by a decision of any court of any competent
Jurisdiction,
such decision shall not affect the validity of the
remaining portions of the ordinance. The City Council hereby
declares that it would have passed this ordinance and each and
every
section, subsection, sentence, clause or phrase not
declared invalld or unconstitutional without regard to whether
any portion of the ordinance would be subsequently declared
invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall
attest to the passage of this ordlnance. The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption. ThlS ordinance shall become
effective on the date of its adoptlon pursuant to Section 6l9(c)
of the Santa Monica City Charter.
APPROVED AS TO FORM:
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Robert M. Myers
City Attorney
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ADOPTED AND APPROVED THIS
13th
DAY
OF December
~ 1983.
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MAYOR
I HEREBY CERTIFY THAT THE FOREGOING ORDINANCE,
NO. 1292
(CCS)~ WAS DULY AND REGULARLY INTRODUCED AT A
MEETING OF THE CITY COUNCIL ON THE 13th DAY OF DeceMber
1983; THAT THE SAID ORDINANCE WAS THEREAFTER DULY ADOPTED
AT A MEETING OF THE CITY COUNCIL ON THE 13th DAY OF Decenber
1983 BY THE FOLLOWING COUNCIL VOTE:
AYES:
COUNCILMEMBERS: Conn, Enstein, Jennlngs, Press,
Reed, Zane and Mayor Edwards
NOES:
COUNC I LM EMBERS: \one
ABSENT:
CQUNCILMEMBERS: ~one
ABSTAIN:
COUNCILMEMBERS: ~one
ATTEST:
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{?-n 7/;, ~2dP-C
CiTY CLERK