5777ORDINANCE NO. 5777
AN ORDINANCE OF THE CITY OF ANAHEIM ADDING,
DELETING AND AMENDING VARIOUS CHAPTERS,
SECTIONS AND SUBSECTIONS OF TITLE 2 OF THE
ANAHEIM MUNICIPAL CODE RELATING TO TAXES
WHEREAS, the City Council of the City of Anaheim
desires to conform Title 2 of the Anaheim Municipal Code to
changes in state law and previous amendments to the City Charter;
and
WHEREAS, the City Council desires to correct errors,
delete unnecessary provisions, and otherwise update various
provisions in Title 2 of the Anaheim Municipal Code.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM
HEREBY ORDAINS AS FOLLOWS:
SECTION 1.
That Section 2.04.030 of Chapter 2.04 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby, amended to
read as follows:
"2.04.030 CONTRACT WITH STATE - EFFECTIVE DATE OF CHAPTER.
The City shall, prior to the effective date of this section,
enter into a contract with the State Board of Equalization to
perform all functions incident to the administration and
operation of this sales and use tax ordinance, and shall continue
such contract in effect so long as the County of Orange has an
operative sales and use tax ordinance enacted pursuant to Part
1.5 of Division 2 of the Revenue and Taxation Code."
SECTION 2.
That Section 2.04.040 of Chapter 2.04 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby, amended to
read as follows:
"2.04.040 SALES TAX.
.010 For the privilege of selling tangible personal property
at retail, a tax is hereby imposed upon all retailers in the City
at the rate of one percent of the gross receipts of the retailer
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from the sale of all tangible personal property sold at retail in
the City on and after the operative date of this chapter.
.020 For the purposes 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.
.030 Except as hereinafter provided, and except insofar as
they are inconsistent with the provisions of Part 1.5 of Division
2 of the said Revenue and Taxation Code, all of the provisions of
Part 1 of Division 2 of said Code, 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.
.040 Wherever, and to the extent that, in Part 1 of Division
2 of said Revenue and Taxation Code, the State of California is
named or referred to as the taxing agency, the City of Anaheim
shall be substituted therefor. Nothing in this subdivision shall
be deemed to require the substitution of the name of the City of
Anaheim 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 City 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
City or any agency thereof, rather than by or against the State
Board of Equalization, in performing the functions incident to
the administration or operations of this chapter; and neither
shall the substitution be deemed to have been made in those
sections, including, but to necessarily limited to, sections
referring to the exterior boundaries of the State of California
where the results 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 same Revenue and
Taxation Code; nor to impose this tax with respect to certain
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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 City shall not be substituted for that of the State
in Sections 6701, 6702 (except in the last sentence thereof),
6711, 6715, 6737, 6797 and 6828 of the said Revenue and Taxation
Code as adopted.
.050 If a seller's permit has been issued to a retailer
under Section 6067 of the said Revenue and Taxation Code, an
additional seller's permit shall not be required by reason of
this section.
.060 There shall be excluded from the gross receipts by
which the tax is measured:
.0601 The amount of any sales or use tax imposed by
the State of California upon a retailer or consumer.
.0602 The gross receipts 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 foreign government.
.070 There shall be exempt from the tax due under this
section:
.0701 The amount of any sales or use tax imposed by
the State of California upon a retailer or consumer.
.0702 The storage,
tangible personal property, the
which has been subject to sales
ordinance enacted in accordance
the Revenue and Taxation Code by
city in this state.
use or other consumption of
gross receipts from the sale of
tax under a sales and use tax
with Part 1.5 of Division 2 of
any city and county, county, or
.0703 In addition to the exemptions provided in
Sections 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."
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SECTION 3.
That Section 2.04.045 of Chapter 2.04 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby, repealed.
SECTION 4.
That Section 2.04.050 of Chapter 2.04 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby, amended to
read as follows:
"2.04.050 USE TAX.
.010 An excise tax is hereby imposed on the storage, use or
other consumption in the City of Anaheim of tangible personal
property purchased from any retailer on or after the operative
date of this chapter, for storage, use or other consumption in
the City at the rate of one percent of the sales price of the
property. 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.
.020 Except as hereinafter provided, and except insofar as
they are inconsistent with the provisions of Part 1.5 of Division
2 of the said Revenue and Taxation Code, all of the provisions of
Part 1 of Division 2 of said Code, as amended, applicable to use
taxes are hereby adopted and made a part of this section as
though fully set forth herein.
.030 Wherever, and to the extent that, in Part 1 of Division
2 of the said Revenue and Taxation Code the State of California
is named or referred to as the taxing agency, the name of this
City shall be substituted therefor. Nothing in this subdivision
shall be deemed to require the substitution of the name of this
City 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 City 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
City 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
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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 that Code; and in addition, the name of the City
shall not be substituted for that of the State in Sections 6701,
6702 (except in the last sentence thereof), 6711, 6715, 6737,
6797 and 6828 of the said Revenue and Taxation Code as adopted,
and the name of the City shall not be substituted for the word
"State" in the phrase "retailer engaged in business in his State"
in Section 6203 nor in the definition of that phrase in Section
6203.
.040 There shall be excluded from the gross receipts by
which the tax is measured:
.0401 The amount of any sales or use tax imposed by
the State of California upon a retailer or consumer.
.0402 The gross receipts from the sale of tangible
personal property to operators of waterborne vessels to be used
or consumed principally outside the city in which the sale is
made and directly and exclusively in the carriage of persons or
property in such vessels for commercial purposes.
.0403 The gross receipts 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 foreign government.
.050 There shall be exempt from the tax due under this
section:
.0501 The amount of any sales or use tax imposed by
the State of California upon a retailer or consumer.
.0502 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 by any city and county, county, or
city in this state.
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.0503 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.
.0504 In addition to the exemptions provided in
Sections 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."
SECTION 5.
That Section 2.04.051 of Chapter 2.04 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby, repealed.
SECTION 6.
That Section 2.04.080 of Chapter 2.04 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby, repealed.
SECTION 7.
That Section 2.04.100 of Chapter 2.04 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby, repealed.
SECTION 8.
That Chapter 2.06 of Title 2 of the Anaheim Municipal
Code be, and the same is hereby, repealed in its entirety.
SECTION 9.
That the title of Chapter 2.10 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby amended to read
as follows:
"DOCUMENTARY TRANSFER TAX"
SECTION 10.
That Section 2.10.010 of Chapter 2.10 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby, amended to
read as follows:
"2.10.010 SHORT TITLE.
This chapter shall be known as the `Documentary Transfer Tax
Ordinance of the City of Anaheim.' It is adopted pursuant to the
authority contained in Part 6.7 (commencing with Section 11901)
of Division 2 of the Revenue and Taxation Code of the State of
California."
SECTION 11.
That new Section 2.10.130 be, and the same is hereby,
added to Chapter 2.10 of Title 2 of the Anaheim Municipal Code,
to read as follows:
"2.10.130 ADOPTION OF SUBSEQUENT AMENDMENTS TO STATE LAW.
All references contained in this chapter to any provision of
state law shall be deemed to include and refer to any amendments
or successor provisions thereto which may be adopted subsequent
to the date of adoption of this chapter or the section referring
to such state law."
SECTION 12.
That subsection .080 of Section 2.12.005 of Chapter
2.12 of Title 2 of the Anaheim Municipal Code be, and the same is
hereby, amended to read as follows:
".080 `Rent' means the consideration charged by an
operator for accommodations, including without limitation any (1)
unrefunded advance rental deposits or (2) separate charges levied
for items or services which are part of such accommodations
including, but not limited to, furniture, fixtures, appliances,
linens, towels, non -coin-operated safes, and maid service. `Rent'
shall not include any charge, billing, or account or portion
thereof which the operator finds to be worthless or uncollectible
and charged off for tax purposes. If any such worthless or
uncollectible rent is thereafter collected, the amount shall be
considered rent in the month collected and the tax collected
shall be included in the next monthly payment to Anaheim by the
operator. `Rent' shall also not include any amount upon which a
sales or use tax is imposed pursuant to Chapter 2.04 of this Code
if the imposition of a tax pursuant to this Chapter 2.12 would be
deemed to constitute an additional sales and use tax conforming
to all of the conditions set forth in subdivision (b) of Section
7203.5 of the Revenue and Taxation Code of the State of
California."
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SECTION 13.
That Section 2.12.010 of Chapter 2.12 of Title 2 of the
Anaheim Municipal Code be, and the same is hereby, amended in its
entirety to read as follows:
"2.12.010 TRANSIENT OCCUPANCY TAX IMPOSED.
.010 For the privilege of occupancy of space in any hotel,
each transient is subject to and shall pay a tax in the amount of
fifteen percent of the rent.
.020 The License Collector shall issue forms and any
additional regulations deemed necessary to implement the
provisions of this section."
SECTION 14.
That subsection .015 of Section 2.12.020 of Chapter
2.12 of Title 2 of the Anaheim Municipal Code be, and the same is
hereby, amended to read as follows:
.015 Notwithstanding subsections 2.12.020.011 and
2.12.020.013, if any audit reveals that the gross income to the
operator attributable to the accommodations portion of such
special package (hereinafter "audited rate") is more than ten
percent greater than the specified rate, the rent for tax
purposes shall be the audited rate. In the event subsection
2.12.020.014 applies and the audited rate is greater than the
imputed rate, the rent for tax purposes shall be the audited
rate. The audited rate shall be determined by an audit of a
sample of the special packages sold by the operator within an
individual special package category. The audited rate shall be
the amount of the special package rate remaining after deducting
the fair market value of each of the benefits included in the
special package rate other than room accommodations and room tax.
Where more than one type of special package was offered within
the audit period, each special package shall be audited
separately for purposes of determining the applicable audited
rate. Credits or offsets shall not be allowed between different
special packages.
SECTION 15.
That subsection .030 of Section 2.12.030 of Chapter
2.12 of Title 2 of the Anaheim Municipal Code be, and the same is
hereby, amended to read as follows:
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".030 Tax returns filed with the City pursuant to this
chapter, and information contained therein regarding amounts of
gross receipts, adjustments, credits, overcollections, tax,
penalty and interest, shall be and remain confidential.
Unauthorized disclosure or use of such confidential information
by any officer, agent or employee of the City shall constitute a
misdemeanor; provided, however, this section shall not apply to
any disclosures made in connection with any hearing, appeal, or
any civil action or proceeding relating to the determination or
recovery of the Tax, or any prosecution of any person for
violation of any provision of this chapter or any criminal or
civil proceeding pertaining to the Tax. This subsection shall not
prohibit, nor be construed to prohibit, disclosure of statistical
or cumulative information derived from tax returns, when the
information disclosed does not identify or relate to any
particular taxpayer. This subsection shall not prohibit, nor be
construed to prohibit, any disclosure of tax returns or
information contained therein which disclosure is compelled by an
order of court or other judicial process."
SECTION 16.
That subsection .020 of Section 2.12.040 of Chapter
2.12 be, and the same is hereby, amended to read as follows:
".020 Upon non-payment by an operator, the License
Collector may issue a Jeopardy Determination to require the
operator to furnish additional information or provide adequate
security as necessary to ensure collection of any Taxes due or to
become due, and to remit taxes on a daily or weekly basis. The
operator shall thereafter report and remit all taxes due under
the terms and conditions prescribed by the License Collector. The
License Collector shall cancel the Jeopardy Determination once
timely accounting and remittance procedures have been established
and the operator is satisfying all obligations imposed by law
pertaining to the Tax."
SECTION 17.
That subsection .010 of Section 2.12.060 of Chapter
2.12 of Title 2 of the Anaheim Municipal Code be, and the same is
hereby, amended to read as follows:
".010 If any operator shall fail or refuse to collect said
tax and to make, within the time permitted, any report and
remittance of tax, the City Auditor shall proceed in such manner
as the City Auditor may deem best to obtain facts and information
on which to base an estimate of the tax and the City Auditor
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shall thereupon proceed to determine and assess the Tax against
such operator. If any operator shall fail or refuse to collect
the proper amount of tax due pursuant to this chapter as
determined by the City Auditor pursuant to Section 2.12.080
hereof, the City Auditor shall proceed to determine and assess
the Tax due against the operator. The City Auditor shall give
notice of any amount so assessed under this subsection by serving
it personally or by depositing it in the United States mail,
postage prepaid, addressed to the operator at the operator's last
known address."
SECTION 18.
That subsection .030 of Section 2.12.080 of Chapter
2.12 of Title 2 of the Anaheim Municipal Code be, and the same is
hereby, amended to read as follows:
".030 Confidential or proprietary information furnished to
or secured by Anaheim from an operator pursuant to this Section
or contained in any audit report or findings made pursuant to
this Section shall be confidential. Unauthorized disclosure or
use of such confidential information by any officer, agent or
employee of the City shall constitute a misdemeanor; provided,
however, this section shall not apply to any disclosures made in
connection with any hearing, appeal, or any civil action or
proceeding relating to the determination or recovery of the Tax,
or any prosecution of any person for violations of any provision
of this chapter or any criminal or civil proceeding pertaining to
the Tax. This subsection shall not prohibit, nor be construed to
prohibit, any disclosure of information which disclosure is
compelled by an order of court or other judicial process."
SECTION 19.
That subsection .010 of Section 2.12.090 of Chapter
2.12 of Title 2 of the Anaheim Municipal Code be, and the same is
hereby, amended to read as follows:
".010 The tax constitutes a debt owed by the transient to
Anaheim which is extinguished only by payment of the tax to the
operator. The transient shall pay the tax to the operator at the
time the rent is paid. If rent is paid in installments, a
proportionate share of the tax shall be paid with each
installment. The unpaid tax shall be due upon the transient's
ceasing to occupy space in the hotel. The Tax imposed by this
chapter constitutes a debt owed by the operator to Anaheim. Any
operator owing Tax to Anaheim shall be liable in an action
brought by Anaheim for the recovery of such amount."
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SECTION 20.
That Chapter 2.13 Of Title 2 of the Anaheim Municipal
Code be, and the same is hereby, repealed.
SECTION 21. SEVERABILITY
The City Council of the City of Anaheim declares that
should any section, paragraph, sentence or word of this ordinance
hereby adopted be declared for any reason to be invalid, it is
the intent of the Council this it would have passed all other
portions of this ordinance independent of the elimination
herefrom of any such portion as may be declared invalid.
Section 22. SAVINGS CLAUSE
Neither the adoption of this ordinance nor the repeal
or amendment of any other ordinance of this City shall in any
manner affect the prosecution for violations of ordinances, which
violations were committed prior to the effective date thereof,
nor be construed as a waiver of any tax, license or penalty or of
the penal provisions applicable to any violations thereof. The
provisions of the ordinance, insofar as they are substantially
the same as ordinance provisions previously adopted by the City
relating to the same subject matter, shall be construed as
restatements and continuations, and not as new enactments.
THE FOREGOING ORDINANCE is approved and adopted by the
City Council of the City of Anaheim this28th day of August
2001.
MAY OF TH CITY OF J
NAHEIM
ATTEST:
CITY CLERK 15F THE CITY OF ANAHEIM
41282.1
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Ordinance No. 5777 was introduced at a regular meeting of the City Council of the City of
Anaheim, held on the 21st day of August, 2001, and that the same was duly passed and adopted
at a regular meeting of said City Council held on the 28th day of August, 2001, by the following
vote of the members thereof:
AYES: MAYOR/COUNCIL MEMBERS:
NOES: MAYOR/COUNCIL MEMBERS:
ABSENT: MAYOR/COUNCIL MEMBERS:
(SEAL)
Feldhaus, Kring, Tait, McCracken, Daly
None
None
MMM
(SEAL)
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