ORDINANCE 480ORDINANCE NO. 480.
AN ORDINANCE OF THE CITY OF EL SEGUNDO
IMPOSING A LICENSE TAX FOR THE PRIVILEGE
OF SELLING TANGIBLE PERSONAL PROPERTY AT
RETAIL, PROVIDING FOR PERMITS TO RETAILERS,
PROVIDING FOR THE COLLECTING AND PAYING OF
SUCH TAX, AND PRESCRIBING PENALTIES FOR VIO-
LATIONS OF THE PROVISIONS HEREOF.
The City Council of the City of E1 Segundo does ordain
as follows:
SECTION 1. IMPOSITION AND RATE OF TAX. For the privi-
lege of selling tangible personal property at retail a tax is
hereby imposed upon all retailers at the rate of one per cent
(1 %) of the gross receipts of any retailer from the sale of all
tangible personal property sold at retail in the City of E1 Se-
gundo on or after April 2, 1956. The tax imposed by this ordi-
nance is in addition to any and all other taxes imposed by any
other ordinance of the City of ET °Segundo.
SECTION 2. TAX LEVIED IN SAME MANNER AS STATE TAX.
The tax hereby levied, except as otherwise herein provided, is
levied in the same manner, to the same extent and under the same
conditions as sales taxes are levied pursuant to Part 1 of Di-
vision 2 of the California Revenue and Taxation Code, known as
the "Sales and Use Tax Law ", as amended and in force and effect
on April 2, 1956.
SECTION 3. ADOPTION OF STATE SALES TAX LAW BY REFER-
ENCE. EXCEPTIONS.
A. All of the provisions of the "Sales and Use Tax Law ",
as amended and in force and effect on April 2, 1956, except the
provisions thereof pertaining solely to the "Use Tax" and Sec-
tions 6051, 60522 6053, 60660 6076, 6068, 6069, 60700 6071,
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6451, 70529 7056, 7101, 7102, 7151, 7152, 7153, applicable to
sales of property at retail, are hereby adopted and made a part
of this ordinance as though fully set forth herein, and all pro-
visions of any other ordinance in conflict therewith are inap-
plicable to this ordinance and the tax hereby imposed.
B. The term "gross receipts", as used herein, does not
include the amount of any tax imposed by the State of California
upon or with respect to reatil.sales whether imposed upon the
retailer or upon the consumer.
C. The term "sale" shall mean and include, in addition to
the meanings contained in paragraph A of this section, the with-
drawal by a retailer in this City of tangible personal property
from a place in this City, from a place in California outside this
City under the control of the retailer, or from a place in Cali-
fornia outside this City at the order of the retailer, for deliv-
ery in any manner at a point in California outside this City
under such circumstances that the transaction of which the with-
drawal is a part would have been considered a sale within the
meaning of paragraph A of this section had the point of delivery
been within this City. Provided, however, that withdrawals pur-
suant to a transaction in foreign or interstate commerce shall not
be sales for the purpose of this section. Charges made for the
delivery of tangible personal property so withdrawn shall be in-
cluded in the gross receipts by which the tax imposed under this
section is measured unless such charges are separately stated
and are imposed for transportation which occurs after the sale
of the property to the purchaser.
D. All of the provisions of the "Sales and Use Tax Law"
hereby adopted, providing for the adoption of rules and regula-
tions and for hearings on the part of the State Board of Equali-
zation, shall be performed by the City Council of the City of El
Segundo. All other provisions of the "Sales and Use Tax Law"
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hereby adopted, providing for the performance of official action
on the part of the State Board of Equalization, shall be per-
formed by the City Tax Collector of the City of E1 Segundo.
E. The City of El Segundo shall be deemed substituted for
the State of California whenever the State is referred to in said
"Sales and Use Tax Law".
F. The City Attorney of E1 Segundo shall be deemed substi-
tuted for the Attorney General whenever the Attorney General is
referred to in said "Sales and Use Tax Law ".
G. The City Treasurer of the City of E1 Segundo shall be
deemed substituted for the State Controller whenever the State
Controller or State Board of Control are referred to in said
"Sales and Use Tax Law ".
H. The County of Los Angeles shall be deemed substituted
for the County of Sacramento whenever the County of Sacramento
is referred to in said "Sales and Use Tax Law ".
SECTION 4. EXEMPTIONS. In addition to the exemptions
contained in Part I of Division 2 of the Revenue and Taxation
Code of the State of California, after April 2, 1956, there shall
be excluded from the computation of the tax gross receipts from:
A. The amount of any sales or use tax imposed by the State
of California upon a retailer or consumer.
B. Receipts from the sale of tangible personal property upon
which a sales or use tax has become due by reason of the same
transaction to any other city and county, county other than Los
Angeles County, or city in this state under a sales or use tax
ordinance enacted by that city and county, county other than Los
Angeles County, or city in this state, whether in accordance
with, or purporting to be in accordance with Part 1.5 of Divi-
sion 2 of the Revenue and Taxation Code of the State of California,
or in accordance with the organic law of any such city.
D. Sales made pursuant to contracts actually executed in
good faith prior to the effective date of this ordinance.
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SECTION 5. ADOPTION OF RULES AND REGULATIONS BY
REFERENCE. INTERPRETATIONS. The rules and regulations of the
State Board of Equalization as amended and in force and effect
April 2, 1956, pertaining to the interpretation, administration
and enforcement of the "Sales and Use Tax Law ", insofar as ap-
plicable, except Rule No. 55 (Section 2015, Title 18, California
Administrative Code, Sales & Use Tax) shall apply in the inter-
pretation of this ordinance until specifically abandoned by the
rules and regulations adopted by the City Council of E1 Segundo
pursuant to this ordinance. The word "City" shall be deemed
substituted for the word "State" whenever the word "State" ap-
pears in said rules and regulations.
In lieu of Rule No. 55, specifically excepted above,
the following interpretations shall apply in the administration
of this ordinance:
A. The sales tax does not apply to sales of property which
is:
(1) Imported into this City from a foreign country
and sold by the importer in the original package in which
imported.
(2) Sold to foreign purchasers for shipment abroad
and delivered to a ship, airplane, or other conveyance
furnished by the purchaser for the purpose of carrying the
property abroad and actually carried to a foreign destina-
tion, title and control of the property passing to the
foreign purchaser upon delivery, and no portion of the
property being used or consumed in the United States.
Copies of U. S. Customs Shippers' export declarations filed
with the Collector of Customs must be obtained and retained
by retailers to support deductions taken under this para-
graph. The tax applies to the transaction if the property
is diverted in transit or for any reason not actually
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delivered outside the City pursuant to the contract of sale
or not shipped abroad by a foreign purchaser, regardless
od documentary evidence held by the retailer of delivery
of the property to a carrier for shipment outside the City,
or to a foreign purchaser for shipment abroad.
(3) Mailed by the seller, pursuant to the contract of
sale, to persons in the armed forces at points outside con-
tinental United States, notwithstanding the property is
addressed in care of the Postmaster and forwarded by him
to the addressee. When mail is addressed to Army Post Of-
fices (A /P /0's) in care of the Postmaster or to naval for-
ces addressed in care of the Postmaster, it will be pre-
sumed that it is forwarded outside California. The seller
must keep records showing the names andaddresses as they
appear on the mailed matter and should keep evidence that
the mailing was done by him.
(4) Shipped to a point outside this City pursuant to
the contract of sale when the property is marked for ex-
port and delivered by the retailer to the "contracting of-
ficer ", "officer in charge ", "Port quartermaster ", or other
officer of the United States for transportation and delivery
to the purchaser at such a point.
B. The sales tax does not apply to sales of airplanes, and
parts and equipment for airplanes, transported to a point outside
this City pursuant to the contract of sale when such property is
delivered to the United States Army Corps or any other agency or
instrumentality of the United States for transportation and de-
livery to the purchaser or someone designated by him at that point.
C. The sales tax does not apply (either in interstate or
intrastate commerce) to sales of property shipped from a point
outside the City of El Segundo to a purchaser inside the City of
E1 Segundo, or to the retailer's agent in the City of E1 Segundo,
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provisions of said "Sales and Use Tax Law" or rules and regula-
tions that are made a part hereof by reference only.
SECTION 7. APPLICATION FOR PERMIT. Every person de-
siring to engage in or conduct business as a seller within the
City of E1 Segundo shall file with the City Tax Collector an ap-
plication for a permit for each place of business from which tax-
able sales will be made. Every application for a permit shall be
made upon a form prescribed by the City Tax Collector and shall
set forth the name under which the applicant transacts or intends
to transact business, the location of his place or places of
business, and such other information as the City Tax Collector
may require. The application shall be signed by the owner, if a
natural person; in the case of a corporation, by an executive
officer or some person specifically authorized by the corporation
to sign the application, to which shall be attached the written
evidence of his authority.
SECTION 8. ISSUANCE AND DISPLAY OF PERMIT. After com-
pliance with Section 7 of this ordinance by the applicant, the
City Tax Collector shall grant and issue to each applicant a
separate permit for each place of business from which taxable
sales will be made. A permit is not assignable and is valid only
for the person in whose name it is issued and for the transaction
of business at the place designated therein; provided, however,
a change of location may be endorsed upon the permit by the City
Tax Collector. The permit shall at all times be conspicuously
displayed at the place for which issued.
SECTION 9. PERMIT FEES. At the time of making an ap-
plication for a permit, and at the time a change of location is
endorsed upon a permit, the applicant for a permit or for an en-
dorsement of a change of location on a permit shall pay to the
City Tax Collector a fee of One Dollar ($1.00).
MM
SECTION 10. REVOCATION OF PERMIT. Whenever any person
fails to comply with any of the provisions of this ordinance or
any rule or regulation adopted pursuant hereto, the City Council
of the City of E1 Segundo, upon hearing, after giving the person
ten days' notice in writing specifying the time and place of
hearing and requiring him to show cause why his permit or per-
mits should not be revoked, may revoke or suspend any one or
more of the permits held by the person. The notice may Pe served
personally or by mail in the manner prescribed for the service of
notice of a deficiency determination under the „Sales and Use Tax
Law ". The City Tax Collector shall not issue a new permit after
the revocation of a permit unless the City Council of the City of
E1 Segundo is satisfied that the former holder of a permit will
comply with the provisions of this ordinance and the rules and
regulations adopted pursuant hereto and directs the City Tax Col-
lector to issue such permit.
SECTION 11. RENEWAL OF PERMIT. A seller whose permit
has been previously suspended or revoked shall pay the City Tax
Collector a fee of $25.00 for the renewal or issuance of a permit.
SECTION 12. UNLAWFUL ACTS. A person who engages in
business as a seller in the City of El Segundo without a permit
or permits, or after a permit has been suspended or revoked and
before the renewal or issuance of a permit, and each officer of
any corporation which so engages in business, is guilty of a mis-
demeanor.
SECTION 13. DUE DATE. The taxes imposed by this or-
dinance are due and payable to the City Tax Collector on or be-
fore the last day of the month next succeeding each quarterly
period, the first quarterly payment to be due and payable under
this ordinance on the 30th day of July, 1956. The City Tax Col-
lector may require returns and payment of the amount of taxes for
quarterly periods other than calendar quarters depending upon the
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principal place of or the nature of the business of the seller or
retailer or may require returns and payment of the amount of
taxes for other than quarterly periods.
SECTION 14. REIMBURSEMENT. The tax hereby imposed
shall be collected by the retafler from the consumer insofar as
it can be done.
SECTION 15. UNLAWFUL ADVERTISING. It is unlawful for
any retailer to advertise or hold out or state to the public or
to any customer, directly or indirectly, that the tax or any part
thereof will be assumed or absorbed by the retailer or that it
will not be added to the selling price of the property sold or
that, if added, it or any part thereof will be refunded. Any per-
son violating any provision of this section is guilty of a mis-
demeanor.
SECTION 16. SUIT FOR TAX. All taxes hereby levied
shall be payable to the City Tax Collector and any civil suit for
the collection thereof may be filed in any court of competent
jurisdiction in the State of California, and the City Attorney
of said City shall prosecute the action.
SECTION 17. RESALE CERTIFICATE. The City Tax Collect-
or may at his option accept a State of California Resale Certifi-
cate as evidence that any sale is not a sale at retail, or he may
in his discretion require an affidavit from the seller setting
forth such information respecting such sale as he deems necessary
to determine the nature of such sale.
SECTION 18. EXTENSION OF TIME. WAIVER OR COMPROMISE.
The City Tax Collector shall have power, for good cause shown,
to extend for a period of not to exceed 30 days the time for mak-
ing any return or paying any amount required to be paid under this
ordinance, when requested so to do in writing, before the same
becomes delinquent. The City Tax Collector may, with the written
approval of the City Attorney, waive or compromise any penalty
or interest that would otherwise accrue under the provisions of
this ordinance. The City Tax Collector shall make and transmit
to the City Council quarterly a detailed report of any sums so
waived or compromised with the reasons therefor.
SECTION 19. DISPOSITION OF PROCEEDS. All monies col-
lected under and pursuant to the provisions of this ordinance
shall be deposited and paid into the General Fund of the City
of E1 Segundo.
SECTION 20. DIVULGING OF INFORMATION FORBIDDEN. It
is unlawful for any officer or employee of the City of E1 Segundo
having an administrative duty under this ordinance to make known
in any manner whatever the business affairs, operations, or in-
formation obtained by an investigation of records and equipment
of any retailer or any other person visited or examined in the
discharge of official duty, or the amount or source of income,
profits, losses, expenditures, or any particular thereof, set
forth or disclosed in any return, or to permit any return or copy
thereof or any book containing any abstract or particulars there-
of to be seen or examined by any person. However, the City Coun-
cil may, by resolution, authroize examination of the returns by
federal or state officers or employees or by the tax officers of
this or any other city if a reciprocal arrangement exists. Suc-
cessors, receivers, trustees, executors, administrators, assign-
ees, and guarantors, if directly interested, may be given infor-
mation as to the items included in the measure and amounts of any
unpaid tax or amounts of tax required to be collected, interest
and penalties.
SECTION 21. PENALTIES. Any person required to make,
render, sign or verify any report under the provisions of this
ordinance, who makes any false or fraudulent return, with intent
to defeat or evade the determination of an amount due and required
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to be paid hereunder, is guilty of a misdemeanor, and upon con-
viction thereof shall be punishable by a fine of not more than
Five Hundred Dollars (500.00) or by imprisonment for a period
of not more than six months, or by both such fine and imprison-
ment.
SECTION 22. SAME. Any person, firm or corporation
violating any of the terms of this ordinance shall be deemed
guilty of a misdemeanor, and upon conviction thereof shall be
punishable by a fine of not more than Five Hundred Dollars
(500.00) or by imprisonment for a period of not more than six
months, or by both such fine and imprisonment.
SECTION 23. SEVERABILITY. If any section, subsection,
sentence, clause, phrase, or portion of this ordinance 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 portions of this ordinance.
The Council of this City hereby declares that it would have
adopted this ordinance and each section, subsection, sentence,
clause, phrase or portion thereof, irrespective of the fact that
any one or more sections, subsections, clauses, phrases or por-
tions be declared invalid or unconstitutional.
SECTION 24. SUSPENSION OF OPERATION. Upon the effec-
tive date of this ordinance, the provisions of this ordinance be,
and the same are, hereby suspended to and until such time for any
reason the State Board of Equalization ceases to perform the func-
tions incident to the administration and operation of the Sales
and Use Tax imposed by Ordinance No. 479, or it is determined
that the City of E1 Segundo was without power to adopt Ordinance
No. 479, or that the State Board of Equalization is without power
to perform the functions incident to the administration and opera-
tion of the taxes imposed by Ordinance No. 479• Upon the occur-
rence of any one or more of the above enumerated event which shall
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terminate the suspension, the provisions of this ordinance shall
not be deemed to have been suspended, but shall be deemed to
have been in full force and effect at the rate of one per cent
(lye) continuously from and after its effective date.
SECTION 24. EFFECTIVE DATE. This ordinance, inasmuch
as it provides for a tax levy for the usual current expenses of
the City, shall take effect immediately.
SECTION 25. CERTIFICATION. That the City Clerk shall
certify to the passage and adoption of this ordinance; shall
cause the same to be entered in the book of original ordinances
of said City; shall make a minute of the passage and adoption
thereof in the records of the meeting at which the same is passed
and adopted; and shall, within fifteen days after the passage and
adoption thereof, cause the same to be published once in the E1
Segundo Herald, a weekly newspaper of general circulation, pub-
lished and circulated within said City of E1 Segundo and which
is hereby designated for that purpose.
PASSED, APPROVED AND ADOPTED this 2nd day of April,
1956.
ATTEST:
��' )-", - 2,
City Clerk
(SEAL)
Mayor pmt of _ - ity _ of
E1 Segundo, California
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STATE OF CALIFORNIA,
COUNTY OF LOS ANGELES, SS.
CITY OF EL SEGUNDO.
I. Neva M. Elsey, City Clerk of the City of E1 Segundo,
California, do hereby certify that the whole number of members
of the City Council of the said City is five; that the foregoing
ordinance, being Ordinance No. 480, was passed and adopted by
the said City Council, approved and signed by the Mayor of said
City, and attested by the City Clerk of said City, all at an ad-
journed regular meeting of the said Council held on the 2nd day
of April, 1956, and that the same was so passed and adopted by
the following vote:
AYES: Councilmen Baker, Gordon, Swanson and
Mayor Selby;
NOES: Councilmen None;
ABSENT: Councilman Frederick.
WITNESS my hand and the official seal of said City this
2nd day of April, 1956.
(SEAL)
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City Clerk of the Cffty of
E1 Segundo, Califo nia.
-- J
STATE OF CALIFORNIA, )
COUNTY OF LOS ANGELES, ) SS.
CITY OF EL SEGUNDO. )
I, Neva M. Elsey, City Clerk
California, do hereby certify that the
of the City Council of the said City is
ordinance, being Ordinance No. 480, is
original of Ordinance No. 480 of the sa
California, entitled:
of the City of E1 Segundo,
whole number of members
five; that the foregoing
a full, true and correct
id City of E1 Segundo,
"AN ORDINANCE OF THE CITY OF EL SEGUNDO
IMPOSING A LICENSE TAX FOR THE PRIVILEGE
OF SELLING TANGIBLE PERSONAL PROPERTY AT
RETAILO PROVIDING FOR PERMITS TO RETAILERS,
PROVIDING FOR THE COLLECTING AND PAYING OF
SUCH TAX, AND PRESCRIBING PENALTIES FOR VIO-
LATIONS OF THE PROVISIONS HEREOF. ",
which was duly passed and adopted by the said City Council, ap-
proved and signed by the Mayor of said City, and attested by the
City Clerk of said City, all at an adjourned regular meeting of
the said Council held on the 2nd day of April, 1956, and that
the same was so passed and adopted by the following vote:
AYES: Councilmen Baker, Gordon, Swanson and
Mayor Selby,
NOES: Councilmen None;
ABSENT: Councilman Frederick.
I do hereby further certify that pursuant to the pro-
visions of Section 36933 of the Government Code of the State of
California, that the foregoing Ordinance No. 480 was duly and
regularly published according to law and the order of the City
Council of said City in the E1 Segundo Herald, a weekly news-
paper of general circulation, printed, published and circulated
within the said City and that the same was so published therein
on the following date, to wit: April 12,, 1956.
C ty C erk of the C ty of
E1 Segundo, Califor ia.
(SEAL)
Affidavit of Publication
STATE OF CALIFORNIA,
COUNTY OF LOS ANGELES, ss
CITY OF EL SEGUNDO,
......................... ..... being first duly sworn, deposes and says: That
She is, and at all of the times hereinafter mentioned was, a citizen of the United States of America,
over the age of eighteen years, and a resident of the County of Los Angeles, State of California ; that She
was, at, and during all of the time of the publication of the instrument hereunto attached the........
.............................
Editor of EL SEGUNDO HERALD, a newspaper of general circulation, published and circulated weekly in
the City of El Segundo, in said County and State; that said newspaper has been so published and
circulated at regular intervals of one week for more than one Year immediately preceding the
tMiblication of the instrument hereunto annexed; that said newspaper is, and was, at all of the times
herein mentioned, a newspaper of general circulation within the meaning of Section 4460 of the Political
Code of the State of California; that as provided by said section, said newspaper is published for the
dissemination of local or telegraphic news and intelligence of a general abaracter, having a bona fide
subscription list of paying subscribers; that said newspaper is not and was not at any of the times herein
refgrred to, devoted to the interests, or published for the entertainment or instruction of a particular
class, profession, trade, calling, race or denomination, or for any number of such classes, professions, trades,
callings, races or denominations, and that said newspaper is not devoted to or published for, nor was it
at any of the times herein mentioned devoted to or published for the purpose, whether avowed -)r
otherwise, of entertaining or instructing such classes, professions, trades, callings, races or denomin-
ations, or any of such classes, professions, trades, callings, races or denominations
That the notice, order, ordinance, resolution or instrument hereunto attached on page...... numbered
............................................................................. ...............................
hereof in all respects, including subject matter, and size and arrangement of type, is a full, true and
correct copy of the said notice, ordinance, resolution or instrument, in words and figures exactly as
published; that the same was set and printed in type not smaller than nonpareil and that the body of
the same was preceded with words printed in black -face type not smaller than nonpareil, describing
and expressing in general terms the purpose and character of the notice, order, ordinance, resolution
or instrument intended to be published, as will appear from an inspection of the said annexed indtru-
ment; that the ... Qrdi. narme.. NQ AP'? ............................ ...............................
of which the annexed is a printed copy as hereinabove stated, was published and printed in said news-
paper at least ........ I..week.... by .............. .....consecutive publication...., commencing on the
14th .day of ..........r': Z'i1 .......... A. D. 56and ending lute
on the..... ....... .day of
.................... A. D. 19..� 6 . and as often during said time as said newspaper was regu-
larly issued, to-wit:
................... weel Iy........................................... ...............................
..................tipri.1_12.1 1956.......... ........
:.........................
_ ......... �Q,o.... : ............ ...
Subscribed and sworn to before me this... ... .
day of ........... , A. D.
City clerk of the City of Eldo, County
of Los Angeles, State of California.
.
Deputy City Clerk of said City.