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HomeMy WebLinkAbout1340 ORDINANCE NO. 1340 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ADDING TO CHAPTER 6 OF ARTICLE II OF THE ARCADIA MUNICIPAL CODE A NEW PART 7 ENTITLED "CIGARETTE TAX" CONTAINING DIVISIONS 1, 2 AND 3. THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION l. That the Arcadia Municipal Code is hereby amended by adding to Chapter 6 of Article II thereof a new Part 7, the same to read as follows: ARTICLE II. CHAPTER 6. PART 7. DIVISION 1. ADMINISTRATION TAXES CIGARETTE TAX DEFINITIONS 2671. DEFINITIONS. For the purpose of this Part certain words and terms are hereafter defined and shall have the meaning thus ascribed. 2671.1. TITLE. This Part shall be known as the Ciga- rette Tax Ordinance of the City of Arcadia. 2671.2. CIGARETTE. "Cigarette" means any roll for smok- ing, made wholly or in part of tobacco, irrespective of size or shape and irrespective of whether the tobacco is flavored, adul- terated or mixed with any other ingredient, where such roll has a wrapper or cover made of paper or any other material, except where such wrapper is wholly or in the greater part made of tobacco and such roll weighs over three pounds per thousand. 2671. 3. USE OR CONSUMPTION. "Use or consumption" in- cludes the exerc:l.se of any right or power over cigarettes incident to the ownership thereof other than the sale of the cigarettes or the keeping or rE!tention thereof for the purpose of sale. -1- 1340 2671.4. RETAILER. "Retailer" means every person as herein defined who sells cigarettes for any purpose other than re- sale. Where cigarettes are offered for sale through the means of a vending machine, the person holding title to the cigarettes in the machine shall be deemed the retailer. DIVISION 2. IMPOSITION AND RATE. 2672. l~X IMPOSED. An excise tax is hereby imposed upon the use or consumption in the City of Arcadia of cigarettes purchased from a retailer for use or consumption within the City of Arcadia at the rate of two mills ($0.002) per cigarette. DIVISION 3. COLLECTION PROCEDURE. 2673.1. COLLECTION BY RETAILER. The tax constitutes a debt owed by the purChaser to the City which is extinguished only by payment of the tax to the City License Officer or to the retail- er. When a purchase from a retailer is made within the City, the tax shall be paid to the retailer at the time the purchase price is paid. The tax collected or required to be collected by the re- tailer constitutes a debt owed by the retailer to the City. Should any remittance of tax be made by a retailer prior to sale of ciga- rettes to a consmner, such remittance shall be considered as an ad- vance payment to be reimbursed by adding the amount of the tax to the price of the cigarettes at the time of sale to the user or consumer. 2673.2. QUARTERLY REMITTANCE BY RETAILER. Each retailer selling cigarettes within the City of Arcadia shall collect the tax imposed under this Part, and on or before the last day of the month following the close of a calendar quarter remit the total amount so collected to the City License Officer, together with a statement on a form provided by the City License Officer showing the number of cigarettes sold to purchasers, the amount of tax collected, and such other information as the City License Officer shall require. Where -2- 1340 the City License Officer determines that efficiency in the adminis- tration of the tax would be promoted, he may establish reporting periods greater than quarterly, but not to exceed one year. The City License Officer may establish shorter reporting periods for any retailer if he deems it necessary in order to insure collection of the tax. Statements and payments are due immediately upon cessa- tion of the business of selling cigarettes for any reason. All taxes collected by retailers pursuant to this Part shall be held in trust for the account of the City until payment thereof is made to the City License Officer. 2673.3. REGISTRATION. Within thirty (30) days after the operative date of this Part, or within the thirty (30) days after commencing business, whichever is later, each retailer shall register with the City License Officer and obtain from him a "Cigarette Tax Registration Certificate" to be at all times posted in a conspicuous place on the premises; provided, however, each re- tailer who does not operate from a fixed place of business shall keep the registration certificate upon his person at all times while engaging in the business of being a retailer. No person shall engage in the business of being a retailer without obtaining a regis- tration certificate therefor. Said certificate shall, among other things, state the following: (1) The name of the operator; (2) The address of the retailer's place of business; (3) The date upon which the certificate was issued; (4) "This Cigarette Tax Registration Certificate signifies that the person named on the face hereof has fulfilled the require- ments of the Cigarette Tax Ordinance by registering with the City License Officer for the purpose of collecting the Cigarette Tax from purchasers of cigarettes and remitting said tax to the City License Officer. This certificate does not authorize any person to -3- 1340 conduct any lawful business in an unlawful manner, nor to operate a cigarette retailing business without complying with all state and local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of this City. This certificate does not constitute a permit." 2673.3.1. SAME. COUNTERSIGNATURE. All Cigarette Tax Registration Certificates shall be countersigned by the City License Officer. 2673.3.2. SAME. SEPARATE REGISTRATIONS. A retailer having more than one place of business within the City at which cigarettes are sold, other than a vending machine operator, shall be required to obtain a separate registration for each such place of business. 2673.4. PENALTIES AND INTEREST. Taxes collected by a not retailer which are/remitted to the City License Officer on or be- fore the due dates as provided in Section 2673.2 hereof, or fixed by the City License Officer as provided herein, are delinquent. 2673.4.1. SAME. ORIGINAL DELINQUENCY. Any retailer who fails to remi.t any tax imposed by this Part within the time required shall pay a penalty of ten percent (10%) of the amount of the tax in addition to the amount of the tax. 2673.4.2. SAME. CONTINUED DELINQUENCY. Any retailer who fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the tax in addition to the amount of the t~c and the ten percent (10%) penalty first imposed. 2673.4.3. SAME. FRAUD. If the City License Officer de- termines that the non-payment of any remittance due under this Part is due to fraud, a penalty of twenty-five percent (25%) of the amount shall be added thereto in addition to the penalties stated in subsections 2673.4.1 and 2673.4.2. -4- 1340 2673.4.4. SAME. INTEREST. In addition to the penalties . imposed, any reta.iler who fails to remit any tax imposed by this Part shall pay interest at the rate of one-half of one percent (.5%) 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. 2673.4.5. SAME. PENALTIES MERGED WITH TAX. Every penalty imposed and such interest as aGcrues under the provisions of this Division shall become a part of the tax herein required to be paid. 2673.5.. CITY LICENSE OFFICER DETERMINATIONS. If any re- tailer shall fail or refuse to collect said tax and to make, within the time provided in this Part, any report and remittance of said tax or any portion thereof required by this Part, the City License Officer shall proceed in such manner as he may deem best to obtain facts and information on Which to base his estimate of tax due. As soon as the City License Officer shall procure such facts and infor- mation as he is able to obtain upon which to base the assessment of any tax imposed by this Part and payable by any retailer who has failed or refused to collect the same and to make such report and remittance, he shall proceed to determine and assess against such retailer the tax, interest and penalties provided for by this Part. In case such determination is made, the City License Officer shall give a notice of the amount so assessed by serving it personally or by depositing it in the United States mail, postage prepaid, ad- dressed to the retailer so assessed at his last known place of ad- dress. Such retailer may within ten (10) days after the serving or mailing of such notice make application in writing to the City Li- cense Officer. for a hearing on the amount assessed. If application by the retailer for a hearing is not made within the time prescribed, the taN interest and penalties, if any, determined by the City Li- cense Officer shall become final and conclusive and immediately due -5- 1340 and payable. If such application is made, the City License Officer snall give not less than five (5) days' written notice in the manner prescribed herein to the retailer 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 hearing, the retailer may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the City License Officer shall determine the proper tax to be re- mitted and shall thereafter give written notice to the retailer in the manner prescribed herein 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 the following subsection. 2673.5.1. SAME. APPEAL. Any retailer aggrieved after such hearing by any decision of the City License Officer with re- spect 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 retailer 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 prescribed above for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. 2673.6. RECORDS. It shall be the duty of every retailer liable for the collection and payment to the City of any tax imposed by this Part to keep and preserve, for a period of three (3) years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the City, which records the City License Officer shall have the right to inspect at all reasonable times. -6- 1340 2673.7. REFUNDS. 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 Part, it may be refunded as provided in the following subsec- tions provided a elaim in writing therefor, stating under penalty of. perjury the specific grounds upon which the claim is founded, is filed with the City License Officer,witRiR tRFSS (J) ysaFB sf tRB qgte sf ~a~~eRt. The claim shall be on forms furnished by the City License Officer. 2673.7.1. SAME. CREDITS. A retailer may claim a refund or take as credit against taxes collected and remitted -the amount overpaid, paid mor.e than onc~ or erroneously or illegally collected or received,when :It is established in a manner prescribed by the City License Officer that the person from whom the tax has been collected was not a user or consumer as that term is defined in Section 2671.3; provided, however, that neither a refund nor a credit shall be allowed unless the amount of the tax so collected has either been refunded to the purchaser erroneously required to pay the tax or otherwise cred:L ted to him. 2673.7.2. SAME. PROOF. No refund shall be paid under the provisions of this Part unless the claimant establishes his right thereto by l~ritten records showing entitlement thereto and unless the same is claimed in writing within 100 days after the amount overpaid, paid more than once, or erroneously or illegally collected or rece:lved, has been remitted to the City. 2673.8. ACTION TO COLLECT. Any person using or consum- ing cigarettes within the City who has not paid the tax required by the provisions of this Part and any retailer who has failed to collect or who has collected but not remitted any tax required to be paid by the provisions of this Part, shall be liable to an ac- tion brought in the name of the City for the recovery of such amount. -7- 1340 2673.9. VIOLATIONS. Any retailer or other person' who fails or refuses to register as required herein, or to furnish any return required to be made, or who fails or refuses to furnish a supplemental return or o'ther data required by the City License Officer, or who. renders a false or fraudulent return or claim, and any person required to make, render, sign or verify any report or claim who makes any false or fraudulent report or claim with intent to defeat or evade the determination of any amount due required by this Part to be made, is guilty of a misdemeanor. SECTION 2. This. ordinance shall be effective thirty (30) days from and after the date of its adoption except that the tax imposed by this ordinance shall become operative and be imposed on May 1 , 1967, and shall not apply prior to said date. SECTION 3. Any person violating any of the provisions of this ordinance or any 'rule or regulation of the City License Officer shall be guilty of a misdemeanor and shall be punishable therefor by a fine of not more than $500.00 or by imprisonment in the City jailor County jail for a period of not more than six (6) months or by both such fine and imprisonment. Each such person shall be deemed guilty of a separate offense for every day during any portion of which any violation of this ordinance is committed, continued or perm:ltted by such person and shall be punishable therefor as provided by this ordinance. SECTION 4. The City Clerk shall certify to the adoption of this ordinance. I HEREBY CERTIFY that the foregoing ordinance was adopted ndjourned a t a Fegular meet:lng of the Ci ty Council of the Ci ty of Arcadia held -8- 1340 f on the 30th day of March , 1967, by the affirmative vote of at least three Councilmen, to wit: AYES: Councilmen Arth, Butterworth, Considine, Hage and Forman NOES: None ABSENT: None ~~~~ City Clerk of the Ci y 0 rca a SIGNED AND APPROVED this March , 1967. ATTEST: (SEAL) -9- 1340