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1 ORDINANCE NO. ./ / /(.?
2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A
LICENSE TAX FOR THE PRIVILEGE OF SELLING TANGIBLE PERSONAL PRO-
:5 PERTY AT RETAIL, PROVIDING FOR PERMITS TO RETAILERS, PROVIDING
FOR THE COLLECTING AND 'PAYING OF SUCH TAX, AND PRESCRIBING
4 PENALTIES FOR VIOLATIONS OF THE PROVISIONS HEREOF.
5 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNAR-
6 DINO 00 ORDAIN AS FOLLOWS:
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SECTION ONE: IMPOSITION AND RATE OF TAX. For the pr iv-
8 ilege of selling tangible personal property at retail a tax is
9 hereby imposed upon all retailers at the rate of one percent
10 (1%) of the gross receipts of any retailer from the sale of all
11 tangible personal property sold at retail in the Gity of San
Bernardino on or after
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The tax imposed
July,!, 1956
13 by this ordinance is in addition to any and all other taxes im-
14 posed by any other ordinance of the City of San Bernardino.
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SECTION Tl\O: TAX LEVIED IN SAME MANNER AS STATE TAX.
16 The tax hereby levied, except as otherwise herein provided, is
17 levied in the same manner, to the same extent and under t he same
18 conditions as sales taxes are levied pursuant to Part 1 of Divi-
19 sion 2 of the California Revenue. and Taxation Code, knows as the
20 "Sales and Use Tax Law," as amended and in. force and effect on
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V1ly 1. 1956 .
SECTION THREEt AOOP'l;ION OF STATE SALES TAX LAW BY
23 REFERENCE. EXCEPTIONS~
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A. All of the provisions 'pf the "Sales and Use Tax Law,"
25 amended and in force and effect on
except the provisions thereof pertaining solely to the "Use Tax"
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July.1. 1956
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and Sections 6051, 6052, 6053, 6066, 6067, 6068, 6069, 6070, 6071,
6451, 7052, 70.56, 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
provisions of any other ordinance in conflict therewith are in-
apPlicable to this ordinance and the t ax hereby imposed.
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B. The term "gross receipts," as used herein, does not
2 include the amount of any tax imposed by the State of California
3 upon or with respect to retail sales whether imposed upon the
4 retailer or upon the consumer.
5 C. The term "sale" shall mean and include, in addition
6 to the meanings contained in paragraph A. of this section, the
7 withdrawal by a retailer in this City of tangible personal
8 property from a place in this City, from a place in California
9 outside this City under the control of the retailer, or ,from a
10 place in California outside this City at the order of the re-
11 tailer, for delivery in any manner at a point in California out-
12 side this City under such circumstances that the transaction
13 of which the withdrawal is a part would have been considered a
14 sale wi thin the meaning of paragraph A of this section had
15 the point of delivery been within this City. Provided, however,
16 that withdrawals pursuant to a transaction in foreign or inter-
17 state commerce shall not be sales for the purpose of this section.
18 Charges made for the delivery of tangible personal property so
19 withdrawn shall be included in the gross receipts by which the
20 tax imposed under this section is measured unless such charges
21 are separately stated and are imposed for transportation which
22 occurs after the sale of the property to the purchaser.
23 D. All of the provisions of the "Sales and Use Tax Law"
24 hereby adopted, providing for the adoption of rules and regula-
25 tions and for hearings on the part of the State Board of Equal-
26 ization, shall be performed by the Common Council of the City
27 of San Bernardino. All other provisions of the "Sales and Use
28 Tax Law" hereby adopted, prO\l;iding for the performance of of-
29 ficial action on the part of the State l30arq of Equalization,
30 shall be performed by the'City Clerk
31 of the City of San Bernardino.
32 E. The City of San Bernardino shall be deemed substituted
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1 for the State of California whenever the State is referred to
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2 in said "'Sales and Use Tax Law."
F. The City Atto~neyof the City of San Bernardino shall
4 be deemed substituted for the Attorney General whenever the At-
5 torney Gener al is ref erred to in said "Sales and Use Tax Law."
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G. The City
of the City of
Clerk
7 San Bernardino shall be deemed substituted for the State Con-
8 troller whenever the State Controller or State Board of Control
9 are ref erred to in said "Sales and Use Tax Law."
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H. The County of San Bernardino shall be deemed sub-
11 stituted for the County of Sacramento whenever the County of
12 Sacramento is referred to in said "Sales and Use Tax Law."
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SECTION FOUR: EXEMPTIONS. In addition to the exemptions
14 contained in Part I of Division 2 of the Revenue and Taxation
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Code.of the State of California, after
JulV 1. 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
21 upon which a sales or use tax has become due by reason of the
22 same transaction to any other city and county, county other than
23 San Bernardino County, Or city in this state under a sales or
24 use tax ordinance enacted by that city and county. county other
25 than San Bernardino County, or city in this state, whether in
26 accordance with, or purporting to be in accordance with Part 1.5
27' of Division 2 of the Revenue and Taxation Code of the St'ate of'
28; California, or in accordance with the organic law of any such
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C. Receipts from sales to operators of common carrier
31: and waterborne vessels of property to be used or consumed in the
32 oparation of such common carriers or waterborne vessels prin-
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1 cipa11y outside of this City.
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D. Sales made pursuant to contracts actually executed
3 in good faith prior to the effective date of this ordinance.
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SECTION FIVE. ADOPTION OF RULES AND REGULATIONS BY
5 REFERENCE. INTERPRETATIONS. The rules and regulations of the
6 State Board of Equalization as amended and in force and effect
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Tu1v 1. 1956
, pertaining to the interpretation,
8 administration and enforcement of the "Sales and Use Tax Law,"
9 insofar as applicable, except Rule No. 55 (Section 2015, Title
10 18, California Administrative Code, Sales & Use Tax) shall
11 apply in the interpretation of this ordinance until specifically
12 abandoned by t he rules and regulations adopted by the Common
13 Council of the City of San Bernardino pursuant to this ordinance.
14 The word "City" shall be deemed substituted for the word "State"
15 whenever the word "State" appears in said rules and regulations.
16 In lieu of Rule No. 55, specifically excepted above, the
17 following interpretations shall apply in the administration of
18 this ordinance:
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A. The sales tax does not apply to sales of property
20 which is:
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(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 purch'aser for the pl.lrpose of carrying
the property ab~oad and actually car~ied to a foreign
destination, title and cOl1tr,ol ,of the property passing
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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
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be obtained and retained by retailers to support deduc-
tions taken under this paragraph. The tax applies to the
transaction if the property is diverted in transit or for
any reason not actually delivered outside the City pur-
suant to the contract of sale or not shipped abroad by
a foreign purchaser, regardless of 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 sellet, pursuant to the contract
of sale, to persons in the a~med forces at points outside
continental United States, notwithstanding the property
is addressed in care of the Postmaster and forwarded
by him to the addr'e5;see. When mail is addressed to
Army Post Offices (A/P/O's) in care of the Postmaster
or to naval for ces addressed in care or the Postmaster,
it will be presumed that it is forwarded outside Calif-
ornia. The seller must keep records showing the names
and addresses 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
export and delivered by the retailer to the "contracting
officer," "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 ~. not apply to sales of airplanes,
parts and equipment for airplanes, transported to a point
29 outside this City pursuant to the contract of "sale When such
30 property is delivered to the United States Army Corps or any
31 other agency or instrumentality of the United States for trans-
32 portation and delivery to the purchaser or someone designated
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1 by him at that point.
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C. The sales tax ~ ~ apply (either in interstate
3 or intrastate commerce) to sales of property shipped from a
4 point outside the City of San Bernardino to a purchaser inside
5 the City of San Bernardino. or to the retailer's agent in the
6 City of San Bernardino. for delivery to the purchaser, if none
7 of the elements of sale, other than such delivery. takes place
8 in the City of San Bernardino.
D. The sales tax does appl(y '(tither in interstate or
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intrastate commerce) to sales of property shipped from a point
outside of the City of SanB'ernardi,no, ',to, ,a. purchaser inside the
City of San Bernardino. or to the'retailer's' agent in the City
of San Bernardino, for delivery tOJhe purcJlaser where any
element of the sale, in additidnto such delivery. takes place
in the City of San Bernardino.
.E. ''Element of Sale" is hereby defined to include
17 solicitation of an order. the acceptance of an order. the giving
18 of an order. whether such order' is given in person. by telephone
19 or by mail, or the payment of tbe purchase price.
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F. The City
Clerk
may approve the
21 payment of the sales tax by retailers located outside the city in
22 accordance with a formula if he finds that the formula will pro-
23 duce the same, or approximately the same tax as' if detailed ac-
24 counting procedures had been follOwed. A retailer desir ing to
25 use such a formula shall furnish such information as may be
26 required by the City
Clerk
to enable him to
27 make the required finding. The formula may be used by the retailer
28 for such period of time, tlPt to exceed one year, as may be author-
29 !Zed by the City
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,Clerk
in writing. and is sub-
ject to renewal, upon application. for periods not to exceed one
year .
Payment in full of sales taxes in accordance with an
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approved formula shall constitute full satisfaction of the re-
tailer's sales tax liability.
SECTION SIX: VERBATIM EXCERPTS SHALL Nor EXCLUDE BALANCE.
The inclusion of any clause, portion or part of the "State Sales
and Use Tax Law," Part 1, Di~'is:l.on 2,of the Revenue and Taxation
Code of the State of California, or the rules and regulations of
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the State Board of Equa1i~ation. ve~batim in this ordinance
shall not in or of itself be deemed to excl~de any of the remain~
ing provisions of said "Sales and Vse,.'i'ax Law" or rules and regu-
lations that are made a part hereof by reference only.
SECTION SEVEN: APPLICATION FOR PERMIT. Every person
desiring to engage in or conduct business as a seiler within the
Ci ty of San Bernardino shall file with the City Clerk an appli-
cation for a permit for each place of business from which taxable
sales will be made. Every application for a permit shall be made
upon a form prescribed by the City Clerk 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 Clerk may require. The appli-
cation shall be signed by the owner, if a natural person; in the
case ofa corporation, by an executive officer Or some person
specifically authorized by the corporation to sign the application,
to which shall be attached ,the written evidenc.e of his authority.
SECTION EIGHT: ISSUANCE AND DISPLAY OF PERMIT. After
compliance with Section Seven of this ordinance by the applicant,
the City Clerk 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 busi-
ness at the place designated therein; provided, however, a change
of location may be endorsed upon the permit by the City Clerk.
The permit shall at all times be conspicuously displayed at the
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place for which issued.
SECTION NINE: PERMIT FEES. At the time of making an
application 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 Clerk a fee of One Dollar ($1.00).
SECTION TEN: 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 Common Council
of the City of San Bernardino, 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 anyone or more
of the permits held by .the person~ The notice may be served per-
sonally 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 Clerk shall ,not issue a new permit after the
revocation of a permit unless the Common Council of t he City of
San Bernardino 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
Clerk to issue such permit.
SECTION ELEVEN: RENEWAL OF PERMIT. A seller whose permit
has been previously suspended Or revoked shall pay the City Clerk
a fee of jl.uu for the renewal or issuance of a permit.
SECTION TWELVE: UNLAWFUL ACTS. A persqn who engages in
business as a seller in the City of San Bernardino without a per-
mit or permits, Or after a permit has been suspended or r,evoked and
before the renewal or issuance of a permit,. and each officer of
any corporation whiCh so en'gages in business, is guilty of a mis-
demeanor.
SECTION TIlIRTEEN: DUE DATE. The taxes imposed by this
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1 ordinance are due and payable to the City
Chief of Police
2 on or before the last day of the month next succeeding each quarter-
3 ly periOd, the first quarterly payment to be due and payable under
4 this ordinan~e on the 31st. day of October t 1956. The
5 City Clerk may require returns and payment of
6 the amount of taxes for quarterly periods other than calendar
7 quarters depending upon the principal place of or the nature of
8 the business of the seller or retailer or may require returns and
9 payment of the amount of taxes for other than quarterly periods.
10 SECTION FOURTEEN: REIMBURSEMENT. The tax hereby imposed
.11 shall be collected by the retailer from the consumer insofar as
12 it can be done.
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SECTION FIFTEEN. 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 thereofwillbeassullIed or absorbed by the retailer or that
it will not be added to the sellin~ price of the property sold or
that, if added, it,>r any part thereof will be refunded. Any
person violating any provision of this section is guilty of a
misdemeanor.
SECTION SIXTEEN: SUIT FOR TAX. All taxes hereby.levied
shall be payable to the City Chief of' Police and any civil
suit for the collection thereof may be filed in any court of com-
petent jurisdiction in the State of California, and the City At-
torney of said City shall prosecute the action.
SECTION SEVENTEEN: RESALE CERTIFICATE. The City Clerk
may at his option accept a State of California Resale Certificate
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 natur e of such sale.
SECTION EIGHTEEN.: EXTENSION OF TIME, WAIVER OR COMPROMISE.
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1 or amounts of tax required to be collected, interest and penal ties.
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SECTION TWENTY-ONE: PENALTIES. Any. person required to
3 make, render, sign or verify any report under the provisions of
4 this ordinance, who makes any false or fraudulent return, with
5 intent to defeat or evade the determination of an amount due and
6 requ~red to be paid hereunder, is guilty 'of a misdemeanor, and
7 upon conviction thereof shall be punishable by a fine of not more
8 than Five Hundred Dollar.s ($500.00) or by imprisonment for a
9 period of not more than six months, or by both such fine and im--
10 prisonment.
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SECTION TWENTY-Ti\O: SAMEfAnY person, firm or corporation.
12 violating any of the terms of this ordin\ll1ce shall be deemed
13 guilty of a misdemeanor, and'upon convictibn .tpereof shall be
14 punishable by a fine o( notmbre than Five. Hundred Dollars ($500.00)
15 or by imprisonment for aperfod of not lllOJ;e than six months, or
16 by both such fine and ftiJprlsonment.
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SECTION TWENlY -TIlREE: SEVERABILITY. If any section,
18 subsection, sentence, clause, phrase, or portion of this ordinance
19 is for any reason held to be invalid or unconstitution.a1 by the
20 decision of any court of competent juriSdiction, such decision
21 shall not affect.the validity of the remaining portions of this
~2 ordinanoe. The. Council of this City hereby declares that it
23. would have adopted this ordinance and each section, subsection,
24 sentence, clause, phrase or portion thereof, irrespective of the
25 fact that anyone or more sections, subsections, clauses, phrases
26 or portions be declared invalid or unconstitutional.
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SECTION TWENTY-FOUR: EFFECTIVE DATE. This ordinance shall
28 take effect and become operative on July I, 1956.
29 I HEREBY CERTIFY that the foregoing ordinance was duly
adopted
by the Mayor and Common Council of the City of San Ber-
at a ,} /J7:C//;'{ meeting thereof held on the ,;2 /~
~/t~ , 1956, by the following vote, to wit:
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nardino
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AYES:~~'1{<!h<~/.'!,,:/ ~)?,{.( Cg" .';PH';f' )-fH.1/~~ ;S~1'M'-;"
NOES: /h7l iZ .' >> .
ABSENT: '7!~C-
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C . Ci ty Clerk
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. C1 ty Attorney
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approve the foregoing 0 d .:rA'
r inance this ~ /2;-/.
. 1956.
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Approved as to form:
FILED
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