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
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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.
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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;
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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
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N
EM