2372O2DINAvCE iso, 2372
AN ORDINANCE OF THE CITY OF ANAHEI1>1
AMENDING TITLE 3 OF THE ANAHtsT1�i 1,>UNICIPAL
CODE EY ADDItvG CHAPTER 3.80 AELATI1G TO
THE I11POSITION OF A TAX UPON THE PRIVILEGE
OF DISTRIBUTING CIGARETTES, AND PROVIDING
FOR THE COLLECTION THEREOF.
THE CITY COUiuCIL OF ThE CITY OF ANAHLLI2,1 DOES ORDAIN
AS FOLLOWS:
SECTION 1.
That "Title 3 of the Anaheim i''iunicipal Code be, and the
same is hereby amended by adding thereto Chapter 3.80, containing
Sections 3.80.010 through 3.80.130, inclusive, and reading as
follows:
"CHAPTER 3.80 - CIGARETTE TAX.
"SECTION 3.80.010 'TITLE AND PURPOSE.
(a) Title. This Chapter shall be known as the
Cigarette Taxx Orainance of the City of Anaheim.
(b) Purpose and Intent. It is the purpose and intent
of the City Council that tn.ere be a tax imposed on the privi-
lege of distributing cigarettes in tree City of Anaheim.
"SECTION 3.80.020 DEFINITIONS.
"Except where the context otherwise requires, the definitions
given in this section govern the construction of this Chapter.
(a) Cigarette. 'Cigarette' means any roll for smoking,
made wholly or in part of tobacco, irrespective of size or
shape and irrespective of whether the tobacco is flavored,
adulterated or mixed with any other ingredient, where such
roll nas a wrapper or cover made of paper or any other mate-
rial, except where such wrapper is wholly or in the greater
part made of tobacco and such roll weighs over three pounds
per thousand.
(b) Distributor. 'Distributor' means a person who,
having title to cigarettes, transports them, or causes them
to be transported to a retail outlet in the City of Anaheim,
whether for consideration or otherwise,
(c) Distribute. 'Distribute' means the act, by a
distributor,ortransporting cigarettes or causing cigarettes
to be transported to a retail outlet.
(d) Untaxed Cigarette. 'Untaxed Cigarette' means any
cigarette wzich nas not yet been distributed in such manner as
to result in a tax liability under this Chapter.
(e) retail Outlet. 'Retail outlet' means any store,
business, place or Ziac ine where cigarettes are transferred
to the possession of the ultimate consumer thereof.
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"SECTION 3.80.030 TAX Iiya:�OSEO.
"An excise tax is hereby imposed upon the privilege of dis-
tributing cigarettes in the City of Anaheim, whether for a
consideration or otherwise. Said tax is imposed at the rate
of one mill ($0.001) per cigarette. Said tax is imposed only
upon the first such distribution of each previously untaxed
cigarette in the City of Anaheim. It shall be unlawful
knowingly to sell, transfer, distribute or give away untaxed
cigarettes in the City of Anaheim.
"SECTION 3.80.040 REGISTRATION.
"Within thirty (30) days after the effective date of this
Chapter (Yiay 27th , 1967) , within thirty (30) days after com-
mencing business or within thirty (30) days after a change
in ownership of a business registered under this Chapter,
whichever is later, each distributor shall register with
the City Treasurer on a form provided by him.
"SECTION 3.80.U50 RECORDS AND STATEIC14TS REQUIRED.
"Every distributor shall keep a complete and accurate record
of all cigarettes distributed by him in the City of Anaheim.
Such records shall include a written statement containing the
name and address of the retail outlet to which distribution
is made, the date of delivery, the quantity of cigarettes
and such other information as the City Treasurer may reason-
ably require. All statements and records required by this
section shall be in a form satisfactory to the City Treasurer.
They shall be preserved for a period of three years and shall
be offered for inspection at any time by the City Treasurer
or his authorized agent.
"SECTION 3.80.06U REPORTING AND REMITTING.
"At the time of registration, as provided in Section 3.80.U40
of this Chapter, each distributor shall indicate, on a form
provided for the purpose by the City Treasurer, which of
the following two methods of reporting and remitting said
distributor chooses to use:
(a) Quarterly Return. If the distributor chooses to
report and rem the --fax provided for in this Chapter on a
quarterly basis, he shall make a return to the City Treasurer
of the total number of cigarettes distributed in the City of
Anaheim by the distributor during each calendar quarter.
The return shall be filed with the City Treasurer on or
before the last day of the month following the close of the
calendar quarter for which the return is made. No discount
will be allowed under the quarterly return metizod.
(b) klionthly Return. If the distributor chooses to
report and remit tile ax provided for in this Chapter on a
monthly basis, he shall make a return to the City Treasurer
of the total number of cigarettes distributed in the City of
Anaheim during each calendar month. The return shall be
filed with the City Treasurer on or before the last day of
the month following tile close of the calender month for which
the return is made. Under the monthly return method, if the
return is filed and payment is made within the month
following the close of the calendar month for which the
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return is made, the distributor shall be entitled to
deduct from such payment two per cent (20) of the tax
payable for the calendar month reported.
"At the time the return is filed, the full amount of the tax
imposed by this Chapter, less any discount allowed by this
Section, shall be remitted to the City Treasurer. The
return shall be on forms provided by the City Treasurer.
The City Treasurer may establish a shorter reporting period
for any distributor if he deems it necessary in order to
insure collection of the tax. Returns and payments are due
immediately upon cessation of business for any reason. All
returns and payments submitted by each distributor shall be
treated as confidential by the City Treasurer and shall not
be released by him except by order of a court of competent
jurisdiction or to an official or agent of the united
States, the State of California, the County of Orange, or
the City of Anaheim, for official use only.
"SECTION 3.80.070 PE14AL^l IES AND INTEREST.
(a) Original Delinquency Period. Any distributor
who fails to remit any tax imposed by—this Chapter within
the time required shall pay a penalty of ten per cent (10%)
of the amount of the tax in addition to the amount of the
tax.
(b) Continued Delinquency. Any distributor who fails
to remit any delinquent remi ance within one month follow -
the date on which the remittance first became delinquent
shall pay a second delinquency penalty of ten per cent (10%)
of the amount of the tax in addition to the amount of the
tax and the ten per cent (10%) penalty first imposed.
(c) Fraud. If the City Treasurer determines that
the nonpayment o -F any remittance due under this Chapter is
due to fraud, a payment of twenty-five per cent (250) of
the amount of the tax shall be added thereto in addition to
the penalties stated in Paragraphs (a) and (b) of this
Section.
(d) Interest. In addition to the penalties imposed,
any distributor To fails to remit any tax imposed by this
Chapter shall pay interest at the rate of one-half of one
per cent (0.50) per month or fraction thereof on the amount
of the tax, exclusive of penalties, from the date on which
the remittance first became delinquent until paid.
(e) Penalties tiierged with Tax. Every penalty
imposed, and such interest as accrues under the provisions
of this Section, shall become a part of the tax herein
required to be paid.
(f) Penalties During Pendency of ;fearing or Appeal.
No penalty provided under the terms of this Chapter sia
be imposed during tree pendency of any hearing which is
provided for in Section 3.80.080 of this Chapter nor during
the pendency of any appeal to the City Council, which is
provided for in Section 3.80.080 of this Chapter, nor during
the pendency of any appeal to the City Council for which
provision is made in Section 3.80.030 of this Chapter.
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"SECTION 3.80.080 FAILURES TO COLLECT AND REPORT TAX;
DETERP1INATION OF TAX BY CITY TREASURE
"If any distributor shall fail or refuse, within the time
provided for in this Chapter, to make any report and remit-
tance of said tax or any portion thereof required by this
Chapter, the City Treasurer shall proceed to obtain facts
and information on which to base his estimate of the tax
due. As soon as the City Treasurer shall procure such
facts and information as he is able to obtain upon which
to base the assessment of any tax imposed by this Chapter
and payable by any distributor who has failed or refused
to make such report and remittance, he shall proceed to
determine and assess against such distributor the tax,
interest and penalties provided for by this Chapter. In
case such determination is made, the City Treasurer shall
give notice of the amount so assessed by serving it per-
sonally or by depositing it in the United States mail,
postage prepaid, addressed to the distributor so assessed
at his last known place of address. Such distributor may,
within ten (10) days after the serving or mailing of such
notice, make application in writing to the City Treasurer
for a hearing on such amount assessed. If application by
the distributor for a hearing is not made within the time
prescribed, the tax, interest and penalties, if any,
determined by the City Treasurer shall become final and
conclusive and immediately due and payable. If such
application is made, the City Treasurer shall give not less
than five (5) days written notice in the manner prescribed
herein to the distributor to show cause, at a time and place
fixed in said notice, why said amount specified therein
should not be fixed for such tax, interest and penalties.
At such nearing, the distributor may appear and offer
evidence why such specified tax, interest and penalties
should not be so fixed. lifter such hearing, the City
Treasurer shall determine the proper tax to be remitted and
shall thereafter give written notice to the distributor in
the manner prescribed ilerein of such determination and the
amount of such tax, interest and penalties. The amount
determined to be due shall be payable after fifteen (15)
days unless an appeal is taken as provided in Section
3.80.090.
"SECTION 3.80.090 APPEAL.
"Any distributor aggrieved by any decision by the City
Treasurer with respect to the amount of such tax, interest
and penalties, if any, may appeal to the Council by filing
a notice of appeal with the City Clerk within fifteen (15)
days of the serving or mailing of the determination of tax
due. The Council shall fix a time and place for hearing
such appeal and the City Clerk shall give notice in writing
to such distributor at his last known place of address.
The findings of the Council shall be final and conclusive
and shall be served upon the appellant in the manner pre-
scribed above in the service of notice of hearing. Any
amount found to be due shall be immediately due'and payable
upon the service of notice.
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"SECTION 3.80.100 REFUND.
(a) Whenever the amount of any tax, interest or
penalty has been overpaid or paid more than once or has
been erroneously or illegally collected or received by the
City under this Chapter, it may be refunded as provided
in Paragraph (b) of this Section, provided a claim in
writing therefor, stating under penalty of perjury the
specific ground upon which the claim is founded, is filed
with the City Treasurer within three years of the date of
payment. The claim shall be on forms furnished by the
City Treasurer.
(b) A aistributor may claim a refund or take as
credit against taxes due, but never remitted, the amount
overpaid, paid more than once or erroneously or illegally
collected or received, when it is established in a manner
prescribed by the City Treasurer that the amount claimed
has been overpaid or paid more than once or has been
erroneously or illegally collected or received by the City.
(c) No refund shall be paid under the provisions of
this Section unless the claimant establishes, by written
records, entitlement thereto.
"SECTION 3.80.110 ACTIONS 10 COLLECT.
"Any tax required to be paid by a distributor under the pro-
visions of this Chapter shall be deemed a debt owed to the
City. Any person owing taxes under tiie provisions of this
Chapter shall be liable to an action brought in the name
of the City of T naheim for recovering of such amount.
"SEC`T'ION 3.80.120 VIOLA`T'IONS -- • ISDEI-'aANOR.
"Any person violating any provision of the Chapter shall be
guilty of a misdemeanor and shall be punishable by a fine of
not more than Five Hundred Dollars ($500.00) or by imprison-
ment in the City Jail for not more than six months or by
both such fine and imprisonment.
"Any distributor who fails to furnish any required return to
be made or who fails to furnish or refuses to furnish other
data required by the City Treasurer, or who renders a false
or fraudulent -return or claim, is guilty of a misdemeanor,
and is punishable as aforesaid. Any person required to make,
render, sign or verify any report or claim who makes a false
or fraudulent report or claim with intent to defeat or evade
the determination of any amount due required by this Chapter
to be made, is guilty of a misdemeanor and is punishable
as aforesaid.
"SECTION 3.80.130. SEVERABILITY.
"If any section, subsection, subdivision, paragraph, sentence,
clause or phrase of this Chapter or any part thereof is for
- any reason held to be unconstitutional, such decision shall
not affect the validity of the remaining portions of this
Chapter or any part thereof. The City Council hereby declares
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that it would have passed each section, subsection, subdivi-
sion, paragraph, sentence, clause or phrase thereof, irrespec-
tive of the fact thay any one or more sections, subdivisions,
paragraphs, sentences, clauses or phrases be declared
unconstitutional."
SECTION 2.
The City Clerk shall certify to the passage of this
ordinance and shall cause the same to be printed once within
fifteen (15) days after its adoption, in the linaheim Bulletin,
a newspaper of general circulation, printed, published and
circulated in said City, and thirty (30) days from and after
its final passage it shall take effect and be in full force.
THE FOREGOING ORDINANCE is approved and signed by rae
this 28th day of March 1967.
ivY,YOR OF THE CITY OF Al, - 'IL
ATTEST:
CITY CLERK�1r0(�• THE CITY OF ANAHEI117
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
i, DENS P`'s. WILLIAPIS, City Clerk of the City of Anaheim,
do hereby certify that the foregoing ordinance was introduced at
a regular meeting of the City Council of the City of
Ana ei.m, neTU on the 21st day of March ,1967, and that
the same was passed anima opted at a regular meeting of
the City Council held on the 28th day of Marc ,
19 67 , by the following vote o the members thereo
AYES : COUNCILYffiNI: Dutton, Pebley, Schutte, Chandler
and Krein
NOES : COUNCILI4�N : None
ABSENT: COUNCILNEN : None
AND I FURTHER CERTIFY that the hayor of the City of
Anaheim approved and signed said ordinance on the 28th day of
March , 1967.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the official seal of the City of Anaheim this 28th day
of March , 1967.
C1 -4Y CLERK OF THE CITY OF AtNAHEIli
(SEAL)
I, DENS M. WILLIAMS, City Clerk of the City of Anaheim, do hereby
certify that the foregoing Ordinance is the original Ordinance No. 2372 and
was published once in the Anaheim Bulletin on the 7th day of April, 1967.
i
_6_ City Clerk