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0041'ra RESOLUTION N0. 41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS AUTHORIZING EXECUTION OF AN AGREEMENT FOR STATE ADMINISTRATION OF LOCAL SALES AND USE'TAXES WHEREAS, pursuant to the provisions of Part 1.5.of Division'2 of the Revenue and Taxation Code of the State of California, this Council adopted Ordinance No. 11 being entitled "-An Ordinance of the City of Rolling Hills, Calif- ornia, Imposing a City Sales and Use Tax; Providing for the Performance by the State Board of Equalization of all Functions Incident to the Administration, Operation and Collection of the Sales and Use Tax Hereby Imposed; and Providing Penalties for Violations Thereof,,"; and 'WHEREAS, said Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California provides for State administration of local sales and use taxes upon execution of an agreement therefor with the State Board of Equalization; and WHEREAS, the State Board of Equalization has presented to the City Council a form of agreement under which it will administer the provisions of said Ordinance No. 11, a copy of which agreement has been submitted to this meeting; NOW, THEREFORE, BE IT RESOLVED that the Mayor and the City Clerk of the City of Rolling Hills be.and they are hereby authorized, empowered and directed, for and on be- half of the City of Rolling Hills to execute an agreement for State -administration of local sales and use taxes, in the form submitted to this meeting. THAT the Mayor shall. sign this resolution and the City Clerk shall attest and certify to the adoption thereof and' that there shall be attached to the permanent file copy of this resolution -a copy of the form of agreement above re- ferred to;.. The City Clerk is directed to forward a certified copy of this resolution, together with the necessary number of executed copies of said agreement to the State Board of Equalization, Sacramento, California. PASSED, APPROVED, AND ADOPTED THIS 12th day of November, 1957. ay . of the City of .Ro-illrig Wills ATTEST: City Clerk APPROVED AS TO FORM: City Attorney 1 1 City of Rolling Hills AGREEMENT FOR STATE ADMINISTRATION OF LOCAL SALES AND USE TAXES To carry out Part 1.5 of Division 2 of the Revenue and Taxation Code and the sales and use tax ordinance of the City hereinabove designated, hereinafter called the City, copy of which ordinance is attached hereto, the City and the State Board of Equalization, hereinafter called the Board, do agree as follows: Unless the following terms interpreted to 1. "Local penalties, and ordinance which the Revenue and ARTICLE 1 DEFINITIONS context requires otherwise, wherever the appear in this Agreement they shall be mean the following.* Taxes" shall mean the sales and use taxes, interest imposed by the City under an complies with Part 1.59 Division 2, of Taxation Code. 2. "Conforming Taxing Jurisdiction" shall mean any county, city, or city and county of this State which has adopted a sales and use tax ordinance of the kind des- cribed in' Part 1.5 of Division 2 of the Revenue and Taxation Code and which has entered into a contract with the State Board of Equalization to perform all functions incident to the administration and operation of the ordinance. 3. "City Ordinances' shall mean the Uniform City Sales and.Use Tax Ordinance attached hereto, as amended from time to time. ARTICLE II ADMINISTRATION AND COLLECTION OF LOCAL TAXES A. Administration. The Board and the City agree that the Board shall perform exclusively all functions incident to the administration and operation of. the City ordinance. B. Other applicable laws. The City agrees that all provisions of law applicable to the administration and operation of -the State Sales and Use Tax Law shall be applicable to the administration and operation of the City ordinance and that money collected pursuant to the City ordinance may be deposited in the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn .from that Fund for the purpose of making refunds, for the purpose of compensating and reimbursing the Board pursuant to Article IV of this Agreement and for the purpose of transmitting to the City the amount to which the City is entitled. C. Transmittal of money. Except as otherwise provided herein, all local taxes collected under the provisions of the City ordinance shall be transmitted to the City monthly beginning in the fourth month following the effective date of this Agreement. A statement shall be furnished indicating the amount withheld pursuant to Article IV of this Agreement. D. Rules. The. Board.shall prescribe and adopt such rules and regulations as in. its judgment are necessary or desirable for the administration and operation of the City ordinance and the distribution of the local taxes collected thereunder. - E. Preference. Unless the payor instructs otherwkse and except as otherwise provided in this Agreement, the Board shall give no preference in applying money received for sales and use taxes owed by a taxpayer but shall apply all monies collected to the satisfaction of the claims of the State and'the claims of the City as their interests appear. F. Security. The Board agrees that any secukity which it hereafter requires to be furnished under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of the City for local taxes owing to it as its interest appears. The Board shall not be required to -change the terms of any.security now held by it and the City shall not participate in any security now held by the Board. G. Names of sellers. The Board agrees to furnish the names, addresses, account numbers, and the business class- ification codes of all sellers holding sellers? permits within the City.. H. Records of the Board., Subject to executive approval under Section.7056 of the Revenue and Taxation Code, the Board agrees to permit authorized personnel of the City to examine the records and procedures of the Board concerning taxpayers subject to the City ordinance. I. City tax rate. The City agrees that any change in the rate of its conforming local sales and use tax will be made effective at the beginning of a calendar quarter and that it will give the Board at least two months? notice thereof and that it will also give notice to the Board of Supervisors of the County in which the City lies. J. Annexation. The City agrees that the Board shall not be required to give effect to an annexation, for the purpose of collecting and distributing city sales and°use taxes, earlibr than the first day of the calendar quarter which commences not less than two months after notice to the'Board. The notice shall:*include the address of the property nearest'to.the extended city'boundary on every street crossing that boundary. ARTICLE III ALLOCATION OF TAX A. Deficiency determination. All local taxes collected as a result of determinations or billings made by the Board, and all amounts refunded or credited may be distributed or charged to the respective conforming taxing jurisdictions in the same ratio as the taxpayer?s self -declared local tax for the period for which the determination, billing, refund, or credit applies. 1 B. Allocation. When the local tax is collected from or refunded. or credited'to the following: ARTICLE IV COMPENSATION A. Numerator. The cost of administering Parts 1 and 1.5 of Division 2 of the Revenue and Taxation Code and the conforming local sales and use tax ordinances for each fiscal year shall be determined in the manner herein set forth. Such cost shall include costs incurred by the Board and by other State agencies, including but not limited to the Attorney General, the State Controller, the State Personnel Board, the State Treasurer, and the Department of Finance. Such cost is referred to as "the administrative cost". B. Denominator. The amounts transferred during each fiscal year from the Retail Sales Tax Fund to conforming taxing jurisdictions and to the General Fund of the State, pursuant to Section 7102 of the Revenue and Taxation Code, together with amounts withheld pur- suant to this Article -of this Agreement, shall be deter- mined.. Such amounts are referred to as it tax dis- tributed". (1) Retailers having traveling sellerst per- mits or certificates of authority to collect use tax issued by the Board; (2) Persons regarded by the Board as retailers pursuant to Section 6015 of the Revenue and Taxation Code; (3) Persons for whom no continuing account number was active at the date of pay- ment; or (4) Other retailers or purchasers having no permanent place of business within the State as determined by the Board; 70 or when the localAis collected by way of deduction from refunds of motor vehicle fuel license taxes, the Board may distribute or charge such local tax to all conforming taxing jurisdictions in the county in which the sale or use occurred using the ratios reflbcted by the distribu- tion of taxes collected from all other taxpayers in that county. To the extent that this cannot be done in a manner consistent with the economic and efficient per- formance of the duties of the Board under the Revenue and Taxation Code and the provisions of this Agreement, the Board may distribute or charge such local tax to all conforming taxing jurisdictions of this State using the ratios reflected by the distribution of taxes collected from all other taxpayers in the State. C. Motor Vehicles. For the purpose of the fore- going allocation with respect to vehicles required to be registered under the Vehicle Code, the address of the registered owner appearing upon the application for the registration may be used by the Board in determining the county of use. ARTICLE IV COMPENSATION A. Numerator. The cost of administering Parts 1 and 1.5 of Division 2 of the Revenue and Taxation Code and the conforming local sales and use tax ordinances for each fiscal year shall be determined in the manner herein set forth. Such cost shall include costs incurred by the Board and by other State agencies, including but not limited to the Attorney General, the State Controller, the State Personnel Board, the State Treasurer, and the Department of Finance. Such cost is referred to as "the administrative cost". B. Denominator. The amounts transferred during each fiscal year from the Retail Sales Tax Fund to conforming taxing jurisdictions and to the General Fund of the State, pursuant to Section 7102 of the Revenue and Taxation Code, together with amounts withheld pur- suant to this Article -of this Agreement, shall be deter- mined.. Such amounts are referred to as it tax dis- tributed". C.. Ratio. The administrative cost for the fiscal year shall be compared to the tax distributed during the fiscal year and,a percentage computed. Such percent- age shall be rounded off to the nearest one hundredth of one percent. This percentage is referred to as "the actual cost percentage" for the fiscal year. The actual cost percentage computed for the most recent fiscal year is referred to as "the tentative cost percentaget/ . . D. Compensation. From the amounts otherwise available for distribution to the City during a fis- cal year, the Board is entitled to the actual cost percentage of such amounts as compensation to the Board and reimbursement to it for the cost of render- ing the service of administering the City ordinance. There shall be withheld from amounts collected.for the City the tentative cost percentage of such amounts. When the actual cost percentage for fiscal year has been computed, the amounts which should have been with- held shall be determined. If%these amounts are less than those withheld using a tentative cost percentage, the excess shall be included in the next distribution of money to the -City; if more, the deficiency shall be withheld from the next distribution to the City. -E. Computation and notification. The costs and percentages required by this Article shall be.computed by the Board and approved by the Department of Finance. The Board will notify the City of., --the results of its computations at least fifteen days before they are submitted to the Department of Finance for approval. ARTICLE V MISCELLAI9EOUS PROVISIONS A. Communications. Communications and notices may be sent by first-class United States Mail. A notification is complete when deposited in the mail. Communications and notices to be sent to the Board shall be addressed to: State Board of Equalization Sacramento 8, California Attention Secretary Communications and notices to be sent to'the City shall be addressed to: ­ City of Rolling Hills City Hall 1_ Portuguese Bend Road Rolling, Hills, California B. Term. The date of this Agreement is the date on which it is approved by the State Department of Finance. The Agreement shall take effect on the first day of the oalendar quarter next succeeding the _date of such approval$ but in no case before the operative date of the City ordinance,, nor on a day other than the first day of a calendar quarter. This Agreement shall continue until September 30 next following the operative date of the City ordinances and shall thereafter be renewed auto- matically from .year to year unless one of the parties gives written notice of termination at least two months before the end of the term. ATTEST: *ity Clerk. I,] STATE BOARD OF EqUALIZATION M Secretary CITY OF ROLLING HILLS W3 (Signature on this line) (Type name here) Mayor of the City of Rolling Hills 11 N EM