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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.
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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
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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
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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.
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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
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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.
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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.
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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
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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)
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