ORDINANCE 481ORDINANCE NO. 181.
AN ORDINANCE OF THE CITY OF EL SEGUNDO IMPOSING
AN EXCISE TAX ON THE STORAGE, USE OR OTHER CON-
SUMPTION OF TANGIBLE PERSONAL PROPERTY.
The City Council of the City of E1 Segundo, California,
does ordain as follows:
SECTION 1. DEFINITIONS. The following words and phrases,
whenever used in this ordinance, shall be construed as defined in
this section unless it appears from the context that a different
meaning is intended.
A. "Sales price" means that total amount for which tangible
personal property is sold, valued in money, whether paid in money
or otherwise, without any deduction on account of any of the fol-
lowing:
(1) The cost of the property sold;
(2) The cost of materials used, labor or service
cost, interest charged, losses, or any other expenses;
(3) The cost of transportation of the property prior
to its purchase.
The total amount for which the property is sold includes all of
the following:
(1) Any services that are a part of the sale;
(2) Any amount for which credit is given to the pur-
chaser by the seller.
"Sales price" does not include any of the following:
(1) Cash discounts allowed and taken on sales;
(2) The amount charged for property returned by cus-
tomers when that entire amount is refunded either in cash
or credit, but this exclusion shall nct apply in any in-
stance when the customer, in order to obtain the refund,
is required to purchase other property at a price greater
than the amount charged for the property that is refunded.
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(3) The amount charged for labor or services rendered
in installing or applying the property sold.
(4) The amount of any federal tax imposed upon or with
respect to retail sales whether imposed upon the retailer
or upon the consumer and regardless of whether or not the
amount of federal tax is stated to customers as a separate
charge, and the amount of any California state sales or use
tax. (The term "gross receipts" includes the amount of any
manufacturer's or importer's excise tax included in the
price of the property sold, even though the manufacturer or
importer is also the retailer thereof, and whether or not
the amount of such tax is stated as a separate charge."
(5) Transportation charges separately stated, if the
transportation occurs after the purchase of the property is
made.
B. "Use" includes the exercise of any right or power over
tangible personal property incident to the ownership of that
property; subject, however, to the following exceptions:
(1) It does not include the sale of that property
in the regular course of business.
(2) It does not include the storage, use or other
consumption of tangible personal property, the gross re-
ceipts from the sale of or the cost of which has been sub-
ject to sales or use tax under a sales or use tax ordinance,
whether enacted in accordance with, or purporting to be in
accordance with, Part 1.5 of Division 2 of the Revenue and.
Taxation Code of the State of California by any other city
and county, county other than Los Angeles County, or city
in this state, or enacted in accordance with the organic
law of any such city.
(3) It does not include the storage or use of tangi-
ble personal property in the transportation or transmission
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of persons, property or communications, or in the generation,
transmission or distribution of electricity or in the manu-
facture, 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.
(4) It does not include the use or consumption of prop-
erty purchased by operators of common carrier and waterborne
vessels to be used or consumed in the operation of such com-
mon carriers or waterborne vessels principally outside the
City.
C. The word "storage", as used in this article, includes any
keeping or retention in the City for any purpose except sale in
the regular course of business or subsequent use solely outside
this City of tangible personal property purchased from a retailer.
SECTION 2. IMPOSITION AND RATE OF TAX. An excise tax
is hereby imposed on the storage, use or other consumption in the
City of E1 Segundo of tangible personal property purchased from
any retailer on or after the effective date of this ordinance for
storage, use or other consumption in said City at the rate of one
per cent (1 %) of the sales price of the property.
SECTION 3. USE 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 use taxes are levied pursuant to Part I of Division
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 4. ADOPTION OF STATE USE TAX LAW BY REFERENCE.
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
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provisions pertaining solely to the "Sales Tax" and Sections
6008, 6009, 6011, 6201 to 6204, inclusive, 6207, 62260 6241 to
6246, inclusive, 6355, 6403, 6453, 7052, 7056, 7057, 7101,
7102, 7151, 7152 and 7153, are hereby adopted and made a part of
this ordinance as though fully set forth herein, and all provi-
sions of any other ordinance in conflict therewith are inappli-
cable to this ordinance and the tax hereby imposed.
B. The term "sales price" shall not include the amount of
any California state sales tax or use tax.
C. All of the provisions of the "Sales and Use Tax Law"
hereby adopted providing for the adoption of rules and regulations
and for hearings on the part of the State Board of Equalization
shall per performed by the City Council of the City of E1 Segundo.
All other provisions of the state "Sales and Use Tax Law" hereby
adopted providing for the performance of official action on the
part of the State Board of Equalization shall be performed by
the City Tax Collector.
D. The City of E1 Segundo shall be deemed substituted for
the State of California whenever the state is referred to in said
"Sales and Use Tax Law ".
E. 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 ".
F. The City Treasurer shall be deemed substituted for the
State Controller and State Board of Control whenever the State
Controller or State Board of Control are referred to in said
"Sales and Use Tax Law ".
G. 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 5. ADOPTION OF RULES AND REGULATIONS BY REFER-
ENCE. The rules and regulations of the State Board of Equalization
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pertaining to the interpretation, administration and enforcement
of the "Sales and Use Tax Lawn, insofar as applicable, shall ap-
ply to the interpretation of this ordinance until specifically
abandoned by the rules and regulations adopted by the City Council
pursuant to this ordinance.
SECTION 6. INTERPRETATION. The inclusion of any clause,
portion or part of the "Sales and Use Tax Law", Part 1, Division
2, of the Revenue and Taxation Code of the State of California,
verbatim in this ordinance shall not in or of itself be deemed to
exclude any of the remaining provisions of said "Sales and Use Tax
Law" that are made a part hereof by reference only.
SECTION 7. DUTY TO COLLECT TAX. Every retailer main-
taining a place of business in this City shall apply to the City
Clerk for authorization to collect the tax imposed by this ordi-
nance. Any retailer not maintaining a place of business in this
City may apply to the City Clerk for authorization to collect the
tax hereby imposed. Upon receipt of any application in such form
as required by him, the City Clerk, in the case of a retailer
maintaining a place of business in the City, shall authorize, and
in the case of a retailer not maintaining a place of business in
the City, may authorize the applicant to make such collections and
to forward the same to the City Clerk.
SECTION 8. PERSONS LIABLE TO TAX. Every person stor-
ing, using or otherwise consuming in this City tangible personal
property purchased from a retailer, is liable for the tax; pro-
vided, however, no tax shall be due hereunder if the tax imposed
by Ordinance No. '/
on the sale of such
not extinguished un
Segundo except that
to Section 7 hereof
pursuant to Section
chaser from further
refers.
of the City of E1 Segundo has been paid
property. The liability of such person is
til the tax has been paid to the City of E1
a receipt from a retailer authorized pursuant
to collect the tax, given to the purchaser
9 hereof, is sufficient to relieve the pur-
liability for the tax to which the receipt
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SECTION 9. COLLECTION OF TAX BY RETAILER. Every re-
tailer who is authorized by the City Clerk to collect the tax im-
posed by this ordinance or who makes sales of tangible personal
property for storage, use or other consumption in this City, not
exempted under the provisions of this ordinance, shall collect the
tax from the purchaser at the time of making the sale, or, if
the storage, use or other consumption of the tangible personal
property is not then taxable hereunder, at the time the storage,
use or other consumption becomes taxable. Upon collecting the
tax, the retailer, on demand, shall give to the purchaser a re-
ceipt therefor in the manner and form prescribed by the City Clerk.
The tax so collected by the retailer shall be held in trust by
him for the City and shall be paid to the City by the retailer in
the manner and at the times elsewhere provided in this ordinance.
SECTION 10. SEPARATE DISPLAY OF TAX FROM LIST OR OTHER
PRICE. The tax so collected by the retailer from the purchaser
shall be displayed separately from the list price, the price ad-
vertised in the premises, the marked price or other price on the
sales check or other proof of sale.
SECTION 11. PERSONAL PROPERTY TO WHICH TAX APPLIES.
Except as otherwise specifically exempted, the tax hereby imposed
applies to all tangible personal property located in this City
and purchased from a retailer; provided, however, that if the
retailer in good faith takes from the purchaser a certificate
that the property was purchased prior to the effective date of this
ordinance or was not purchased for storage, use or consumption in
this City and has not been nor will be so stored, used or consumed,
he shall be relieved of liability to collect and pay the tax. The
certificate shall be signed by and bear the name of the purchaser,
shall indicate the address of the purchaser and the place where
such tangible personal property will be stored, used or consumed,
the date of purchase, and shall be substantially in such form as
the City Clerk may prescribe.
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SECTION 12. REGISTRATION OF RETAILERS. Every retailer
selling tangible personal property for storage, use or other con-
sumption in the City of E1 Segundo and which retailer maintains
a place of business in said City or acts through agents located
in said City and which retailer is not licensed under the pro-
visions of Ordinance No., shall register with the City
Tax Collector and give the name and address of such agent or
agents and office or other place of business in the city.
SECTION 13. DUE DATE OF TAXES. Taxes imposed by this
ordinance 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 or before the last day of July, 1956. The City
Tax Collector may require returns and payment of the amount of
taxes for quarterly periods other than calendar quarters depending
upon the 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. RETURNS. Each return filed by a retailer
shall show the total sale price of the property sold by him dur-
ing the reporting period in respect of which he collected the tax
hereby imposed. Each return filed by a purchaser shall show the
total sale price of the property purchased by him during the re-
porting period, in respect of which a tax is due under this ordi-
nance. All returns shall also show the amount of the taxes for
the period covered by the return and such other information as
the City Tax Collector deems necessary to the proper administra-
tion of this ordinance.
SECTION 15. EXTENSION OF TIME. WAIVER OR COMPROMISE.
The City Tax Collector shall have the power, for good cause shown,
to extend for a period of not to exceed thirty -one (31) days the
time for making any return or paying any amount required to be
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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 compro-
mise 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 16. SCHEDULES FOR PAYMENT OF TAX. The City
Council, by resolution, shall adopt rules prescribing methods and
schedules for the collection and payment of the tax. Such sche-
dules shall be so determined as to facilitate collection of this
tax at the same time that the retailer collects the tax imposed
under the California Sales and Use Tax Law and so as to produce
an average tax return of one per cent (1 %) on all purchases sub-
ject to the use tax.
SECTION 17. 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 18. RESALE CERTIFICATE. The City Tax Collector
may at his option accept a State of California Resale Certificate
as evidence that any sale is not a sale for storage, use or con-
sumption in the City of E1 Segundo, or he may in his discretion
require an affidavit from the seller setting forth such infor-
mation respecting such sale as he deems necessary to determine the
nature of such sale.
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.
332'-;
SECTION 20. DIVULGING OF INFORMATION FORBIDDEN. No
officer or employee of the City of E1 Segundo having an admin-
istrative duty under this ordinance shall make known in any
manner whatever the business affairs, operations, or informa-
tion obtained by an investigation of records and equipment of
any retailer or any other person visited or examined in the dis-
charge of official duty, or the amount or source of income, pro-
fits, losses, expenditures, or any particulars thereof, set forth
or disclosed in any return, or permit any return or copy thereof
or any book containing any abstract or particulars thereof to
be seen or examined by any person. However, the City Council
may, by resolution, authorize 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, assig-
nees, and guarantors, if directly interested, may be given
information 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. FALSE AND FRAUDULENT RETURNS. No person
required to make, render, sign or verify any report under the
provisions of this ordinance, shall make any false or fraudulent
return, with intent to defeat or evade the determination of an
amount due and required to be paid hereunder.
SECTION 22. FAILURE TO MAKE RETURN OR FURNISH DATA.
No retailer or other person shall fail or refuse to furnish any
return required to be made or fail or refuse to furnish a supple-
mental return or other data required by the City Tax Collector,
or render a false or fraudulent return.
SECTION 23. PENAL PROVISIONS. Any person violating
any provision of this ordinance shall be guilty of a misdemeanor,
and upon conviction thereof shall be punishable by a fine of not
more than Five Hundred Dollars 0500.00), or by imprisonment in
the City Jail of the City of E1 Segundo or the County Jail of
the County of Los Angeles for a period of not more than six
months, or by both such fine and imprisonment.
SECTION 24. VALIDITY. 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 City 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, sentences, clauses, phrases
or portions be declared invalid or unconstitutional.
SECTION 25. 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
functions incident to the administration and operation of the
Sales and Use Tax imposed by Ordinance No. 479, or it is deter-
mined that the City of E1 Segundo was without power to adopt Or-
dinance No. 479, or that the State Board of Equalization is without
power to perform the functions incident to the administration and
operation of the taxes imposed by Ordinance No. 479• Upon the
occurrence of any one or more of the above enumerated events
which shall terminate the suspension, the provisions of this or-
dinance 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 (1 %) continuously from and after its effective date.
SECTION 26. EFFECTIVE DATE. This ordinance,.inasmuch
as it provides for a tax levy for the usual current expenses of
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of the City, shall, under the provisions of Section 1 of. Article
IV of the Constitution, take effect immediately.
SECTION 27. 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, published 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:
i
City Clerk
(SEAL)
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Mayor pvcDc4ox of the
El Segundo, Caltfbftia. A
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. 481, 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 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 follow-
ing 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)
City Clerk of the C t of
E1 Segundo, Californi .
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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. 481, is a full, true and correct
original of Ordinance No. 481 of the said City of E1 Segundo,
California, entitled:
"AN ORDINANCE OF THE CITY OF EL SEGUNDO IMPOSING
AN EXCISE TAX ON THE STORAGE, USE OR OTHER CON-
SUMPTION OF TANGIBLE PERSONAL PROPERTY. ".
which was duly 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 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. 481 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 .
City Clerk of the Ci y of
E1 Segundo, Californ a.
(SEAL)
Affidavit of Publication
STATE OF CALIFORNIA,
COUNTY OF LOS ANGELES, ss
CITY OF EL SEGUNDO,
Jh�1G..J�.Q.QL i ........ ..........................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........
...pr.�p? q�_.p.F.I..�7,c rl. .............................................. ...............................
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
nublication 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 chwacter, 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 3r
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 instru-
ment; that the... QrdLru1 ae... ..........................................................
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
_11..th..day of .......... 4X- il........... A. D. 1,K6and ending on the.......1 �.til......day of
....................A. D. 1 ®5 6.. , and as often during said time as said newspaper was regu-
larlyissued, to-wit: ................................ ................. ...............................
................... ME eUy ...................... ............................... ..... .
................... ................�{ . �y
......... !
Subscribed and sworn} to before me this../ '-7 .
day of .. .............. , A. D. 19. ? (o
. .. ..
City clerk of the City of Segundo, County
of Los Angeles, to of California.
Deputy City Clerk of said City.