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Ordinance No. 4246 1
AN ORDINANCE OF THE COUNTY OF BUTTE
IMPOSING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
The Board of Supervisors of the County of Butte ordains as follows:
Section 1. Chapter 55 is added to the Butte County Code as follows:
CHAPTER 55 — TRANSACTION AND USE TAX ORDINANCE
Section 2. Title. This ordinance shall be known as the Butte County Transactions and Use Tax
Ordinance. The County of Butte, hereinafter shall be called "County." This ordinance shall be
applicable in the incorporated and unincorporated territory of the County.
Section 3. Operative Date. "Operative Date" means the first day of the first calendar quarter
commencing more than 110 days after the adoption of this ordinance, the date of such adoption being
as set forth below.
Section 1. Purpose. This ordinance is adopted to achieve the following, among other purposes,
and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part
1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section
7285 of Part 1.7 of Division 2 which authorizes the County to adopt this tax ordinance which shall be
operative if a majority of the electors voting on the measure vote to approve the imposition of the tax
at an election called for that purpose. "
B. To adopt a retail transactions and use tax ordinance that incorporates provisions
identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions
are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the
Revenue and Taxation Code.
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C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a
measure therefor that can be administered and collected by the California Department of Tax and Fee
Administration in a manner that adapts itself as fully as practicable to, and requires the least possible
deviation from, the existing statutory and administrative procedures followed by the California
Department of Tax and Fee Administration in administering and collecting the California State Sales
and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a
manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of
Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and
use taxes, and at the same time, minimize the burden of record keeping upon persons subject to
taxation under the provisions of this ordinance.
Section 5. Contract with State. Prior to the operative date, the County shall contract with the
California Department of Tax and Fee Administration to perform all functions incident to the
administration and operation of this transactions and use tax ordinance; provided, that if the County
shall not have contracted with the California Department of Tax and Fee Administration prior to the
operative date, it shall nevertheless so contract and in such a case the operative date shall be the first
day of the first calendar quarter following the execution of such a contract.
Section 6. Transactions Tax Rate. For the privilege of selling tangible personal property at
retail, a tax is hereby imposed upon all retailers in the incorporated and unincorporated territory of
the County at the rate of 1 % of the gross receipts of any retailer from the sale of all tangible personal
property sold at retail in said territory on and after the operative date of this ordinance.
Section 7. Place of Sale. For the purposes of this ordinance, all retail sales are consummated at
the place of business of the retailer unless the tangible personal property sold is delivered by the
retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-
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state destination. The gross receipts from such sales shall include delivery charges, when such
charges are subject to the state sales and use tax, regardless of the place to which delivery is made.
In the event a retailer has no permanent place of business in the State or has more than one place of
business, the place or places at which the retail sales are consummated shall be determined under
rules and regulations to be prescribed and adopted by the California Department of Tax and Fee
Administration.
Section 8. Use Tax Rate. An excise tax is hereby imposed on the storage, use or other
consumption in the County of tangible personal property purchased from any retailer on and after the
operative date of this ordinance for storage, use or other consumption in said territory at the rate of
1 % of the sales price of the property. The sales price shall include delivery charges when such
charges are subject to state sales or use tax regardless of the place to which delivery is made.
Section 9. Adoption of Provisions of State Law. Except as otherwise provided in this ordinance
and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the
Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of
Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance
as though fully set forth herein.
Section 10. Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the
provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency,
the name of this County shall be substituted therefor. However, the substitution shall not be made
when:
1. The word "State" is used as a part of the title of the State Controller, State
Treasurer, State Treasury, or the Constitution of the State of California;
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2. The result of that substitution would require action to be taken by or
against this County or any agency, officer, or employee thereof rather than by or against the
California Department of Tax and Fee Administration, in performing the functions incident to the
administration or operation of this Ordinance.
3. In those sections, including, but not necessarily limited to sections
referring to the exterior boundaries of the State of California, where the result of the substitution
would be to:
a. Provide an exemption from this tax with respect to certain sales,
storage, use or other consumption of tangible personal property which would not otherwise be
exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the
State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other
consumption of tangible personal property which would not be subject to tax by the state under the
said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711,
6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word "County" shall be substituted for the word "State" in the phrase
"retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in
Section 6203.
1. "A retailer engaged in business in the District" shall also include any
retailer that, in the preceding calendar year or the current calendar year, has total combined sales of
tangible personal property in this state or for delivery in the State by the retailer and all persons
related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this
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section, a person is related to another person if both persons are related to each other pursuant to
Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
Section 11. Permit Not Required. If a seller's permit has been issued to a retailer under Section
6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by
this ordinance.
Section 12. Exemptions and Exclusions.
A. There shall be excluded from the measure of the transactions tax and the use
tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and
county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the
amount of any state -administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax
the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum
products, to operators of aircraft to be used or consumed principally outside the County in which the
sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or
property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the County which is shipped to a
point outside the County, pursuant to the contract of sale, by delivery to such point by the retailer or
his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the
purposes of this paragraph, delivery to a point outside the County shall be satisfied:
a. With respect to vehicles (other than commercial vehicles)
subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the
Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and
undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle
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Code by registration to an out -of -County address and by a declaration under penalty of perjury,
signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place
of business out -of -County and declaration under penalty of perjury, signed by the buyer, that the
vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to
furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of
this ordinance.
4. A lease of tangible personal property which is a continuing sale of
such property, for any period of time for which the lessor is obligated to lease the property for an
amount fixed by the lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, the sale
or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or
lease for any period of time for which any party to the contract or lease has the unconditional right to
terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage,
use or other consumption in this County of tangible personal property:
1. The gross receipts from the sale of which have been subject to a
transactions tax under any state -administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of
aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as
common carriers of persons or property for hire or compensation under a certificate of public
convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign
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government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1
of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price
pursuant to a contract entered into prior to the operative date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the
tangible personal property arises under a lease which is a continuing purchase of such property for
any period of time for which the lessee is obligated to lease the property for an amount fixed by a
lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, storage,
use, or other consumption, or possession of, or exercise of any right or power over, tangible personal
property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for
which any party to the contract or lease has the unconditional right to terminate the contract or lease
upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business
in the County shall not be required to collect use tax from the purchaser of tangible personal
property, unless the retailer ships or delivers the property into the County or participates within the
County in making the sale of the property, including, but not limited to, soliciting or receiving the
order, either directly or indirectly, at a place of business of the retailer in the County or through any
representative, agent, canvasser, solicitor, subsidiary, or person in the County under the authority of
the retailer.
7. "A retailer engaged in business in the County" shall also include any
retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing
with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section
21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5
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(commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use
tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the
County.
D. Any person subject to use tax under this ordinance may credit against that tax
any transactions tax or reimbursement for transactions tax paid to a County imposing, or retailer
liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with
respect to the sale to the person of the property the storage, use or other consumption of which is
subject to the use tax.
Section 13. Amendments. All amendments subsequent to the effective date of this ordinance to
Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are
not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all
amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall
automatically become a part of this ordinance, provided however, that no such amendment shall
operate so as to affect the rate of tax imposed by this ordinance.
Section 14. Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or
equitable process shall issue in any suit, action or proceeding in any court against the State or the
County, or against any officer of the State or the County, to prevent or enjoin the collection under
this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount
of tax required to be collected.
Section 15. Severability. If any provision of this ordinance or the application thereof to any
person or circumstance is held invalid, the remainder of the ordinance and the application of such
provision to other persons or circumstances shall not be affected thereby.
Section 16. Effective Date. This ordinance relates to the levying and collecting of the County
transactions and use taxes and shall take effect immediately upon its approval by the voters.
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Section 18. Termination Date. The authority to levy the tax imposed by this ordinance shall
expire when this ordinance is repealed.
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PASSED AND ADOPTED by the Board of Supervisors of the County of Butte, State of California,
on the 30t" day of July, 2024 by the following vote:
AYES: Supervisors Connelly, Durfee, Ritter, Teeter and Chair Kimmelshue
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Andy Pickett, Chief Administrative Officer
and Clerk of the Board
C
Tod Kimme shue, Chair
Butte COLM _ Board of Supervisors
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