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UNIFORM SALES AND USE TAX

Los Angeles Municipal Code ch. II, art. 1.6
in effect

Los Angeles Municipal Code § 21.6.2 PURPOSE.

SEC. 21.6.2. PURPOSE. The City Council of the City of Los Angeles hereby declares that 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 adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Code of the State of California; (b) To adopt a sales and use tax ordinance which 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 1.5 of Division 2 of the said Revenue and Taxation Code; (c) To adopt a sales and use tax ordinance which imposes a one per cent (1%) tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practical to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes; (d) To adopt a sales and use tax ordinance which can be administered in a manner that will, to the degree possible consistent with the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code, minimize the cost of collecting city sales 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; (e) (None)

Los Angeles Municipal Code § 21.6.3 OPERATIVE DATE - CONTRACT WITH STATE.

SEC. 21.6.3. OPERATIVE DATE - CONTRACT WITH STATE. This ordinance shall become operative on April 1, 1956, and prior thereto this City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this sales and use tax ordinance, provided, that if this City shall not have contracted with the said State Board of Equalization, as above set forth, prior to April 1, 1956, this ordinance shall not be operative until the first day of the first calendar quarter following the execution of such a contract by the City and by the State Board of Equalization; provided, further, that this ordinance shall not become operative prior to the operative date of the Uniform Local Sales and Use Tax Ordinance of the County of Los Angeles.

Los Angeles Municipal Code § 21.6.4 SALES TAX.

SEC. 21.6.4. SALES TAX. (a) (1) For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the City at the rate of one per cent (1%) of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the City of Los Angeles on and after the operative date of this ordinance. (2) (Amended by Ord. No. 120,455, Eff. 12/22/61, Operative 1/1/62.) 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 the retailer’s agent to an out-of-state destination or to a common carrier for delivery to an out-of-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 by the Board of Equalization. (b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of said Code, as amended and in force and effect on April 1, 1956, applicable to sales taxes are hereby adopted and made a part of this section as though fully set forth herein. (2) Wherever, and to the extent that, in Part 1 of Division 2 of the said Revenue and Taxation Code the State of California is named or referred to as the taxing agency, the City of Los Angeles shall be substituted therefor. Nothing in this subdivision shall be deemed to require the substitution of the name of the City of Los Angeles for the word “State” when that word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, or the name of the State Treasury, or of the Constitution of the State of California; nor shall the name of the City be substituted for that of the State in any section when the result of that substitution would require action to be taken by or against the City or any agency thereof, rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance; and neither shall the substitution be deemed to have been made 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 provide an exemption from this tax with respect to certain gross receipts which would not otherwise be exempt from this tax while those gross receipts remain subject to tax by the State under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code; nor to impose this tax with respect to certain gross receipts which would not be subject to tax by the State under the said provisions of that Code; and, in addition, the name of the City shall not be substituted for that of the State in Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 and 6828 of the said Revenue and Taxation Code as adopted. (3) If a seller’s permit has been issued to a retailer under Section 6067 of the said Revenue and Taxation Code, an additional seller’s permit shall not be required by reason of this section. (Amended by Ord. No. 145,139, Eff. 11/4/73, Operative 1/1/74.) (4) There shall be excluded from the gross receipts by which the tax is measured: (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (ii) Receipts from sales to operators of common carrier and waterborne vessels of property to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the City. (Former (ii) Repealed and Replaced by Former (iii), Ord. No. 120,455, Eff. 12/22/61. Operative 1/1/62.) (4.5) (Amended by Ord. No. 158,588, Eff. 12/29/83, Oper. 1/1/84.) There shall be excluded from the gross receipts by which the tax is measured: (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (ii) The gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city 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. *(4.5) There shall be excluded from the gross receipts by which the tax is measured: (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (ii) The gross receipts from the sale of tangible personal property to operators of waterborne vessels to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the carriage of persons or property in such vessels for commercial purposes. (iii) The gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city in which the sale is made and directly and exclusively in the use of such aircraft as common carriers or persons or property under the authority of the laws of the state, the United States, or any foreign government. * The provisions of this Subparagraph (4.5) shall become operative on the operative date of any act of the Legislature of the State of California which amends or repeals and re-enacts Section 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same or substantially the same language as that existing in subdivisions (i)(7) and (i)(8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

Los Angeles Municipal Code § 21.6.5 USE TAX.

SEC. 21.6.5. USE TAX. (a) An excise tax is hereby imposed on the storage, use or other consumption in the City of Los Angeles of tangible personal property purchased from any retailer on or after the operative date of this ordinance, for storage, use or other consumption in the City at the rate of one per cent (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. (b) (1) Except as hereinafter provided, and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the said Revenue and Taxation Code, all of the provisions of Part 1, Division 2 of said Code, as amended and in force and effect on April 1, 1956, applicable to use taxes are hereby adopted and made a part of this section as though fully set forth herein. (2) Wherever, and to the extent that, in Part 1 of Division 2 of the Revenue and Taxation Code the State of California is named or referred to as the taxing agency, the name of the City shall be substituted therefor. Nothing in this subdivision shall be deemed to require the substitution of the name of the City for the word “State” where the word is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, or the name of the State Treasury, or of the Constitution of the State of California, nor shall the name of the City be substituted for that of the State in any section where the result of that substitution would require action to be taken by or against the City or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance, and neither shall the substitution be deemed to have been made 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 provide an exemption from the tax with respect to certain storage, use or other consumption or tangible personal property which would not otherwise be exempt from this tax while such storage, use or other consumption remains subject to tax by the State under the provisions of Part 1 of Division 2 of the said Revenue and Taxation Code, or to impose this tax with respect to certain storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the provisions of that Code, and in addition, the name of the City shall not be substituted for that of the State in Sections 6701, 6702 (except in the last sentence thereof). 6711, 6715, 6737, 6797 and 6828 of the said Revenue and Taxation Code as adopted and the name of the City shall not be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 nor in the definition of that phrase in Section 6203. (Amended by Ord. No. 120,455, Eff. 12/22/61.) (3) There shall be exempt from the tax due under this section: (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (ii) The storage, use or other consumption of tangible personal property, the gross from the sales of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this State. (Amended by Ord. No. 120,455, Eff. 12/22/61, Operative 1/1/62.) (iii) The storage or use of tangible personal property in the transportation or transmission of persons, property or communications, or in the generation, transportation or distribution of electricity, or in the manufacture, transportation or distribution of gas in intrastate, interstate or foreign commerce by public utilities which are regulated by the Public Utilities Commission of the State of California. (iv) The use or consumption of property purchased by operators of common carrier or waterborne vessels to be used or consumed in the operation of such common carriers or waterborne vessels principally outside the City. (3.5) (Amended by Ord. No. 158,588, Eff. 12/29/83, Oper. 1/1/84.) There shall be exempt from the tax due under this section: (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (ii) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this state. (iii) In addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code, the storage, use, or other consumption of tangible personal property 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 government. *(3.5) There shall be exempt from the tax due under this section: (i) The amount of any sales or use tax imposed by the State of California upon a retailer or consumer. (ii) The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this state. (iii) The storage, use or other consumption of tangible personal property purchased by operators of waterborne vessels and used or consumed by such operators directly and exclusively in the carriage of persons or property in such vessels for commercial purposes. (iv) In addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code, the storage, use, or other consumption of tangible personal property 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 government. * The provisions of this Subparagraph (3.5) shall become operative on the operative date of any act of the Legislature of the State of California which amends or repeals and re-enacts Section 7202 of the Revenue and Taxation Code to provide an exemption from city sales and use taxes for operators of waterborne vessels in the same, or substantially the same, language as that existing in subdivisions (i)(7) and (i)(8) of Section 7202 of the Revenue and Taxation Code as those subdivisions read on October 1, 1983.

Los Angeles Municipal Code § 21.6.6 AMENDMENTS.

SEC. 21.6.6. AMENDMENTS. All amendments of said Revenue and Taxation Code enacted subsequent to the effective date of this ordinance, including amendments adopted and effective to and including September 18, 1959, which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance. (Amended by Ord. No. 115,042, Eff. 1/1/60.)

Los Angeles Municipal Code § 21.6.6.1 APPLICATION OF PROVISIONS RELATING TO EXCLUSIONS AND EXEMPTIONS.

SEC. 21.6.6.1. APPLICATION OF PROVISIONS RELATING TO EXCLUSIONS AND EXEMPTIONS. (Added by Ord. No. 145,139, Eff. 11/4/73, Operative 1/1/74.) (a) Sections 21.6.4(b)(4.5), and 21.6.5(b)(3.5) of this article shall become operative on January 1st of the year following the year in which the State Board of Equalization adopts an assessment ratio for state assessed property which is identical to the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, at which time Sections 21.6.4(b)(4) and 21.6.5(b)(3) of this article shall become inoperative. (b) In the event that Sections 21.6.4(b)(4.5) and 21.6.5(b)(3.5) of this article become operative and the State Board of Equalization subsequently adopts an assessment ratio for state assessed property which is higher than the ratio which is required for local assessments by Section 401 of the Revenue and Taxation Code, Sections 21.6.4(b)(4) and 21.6.5(b)(3) of this article shall become operative on the first day of the month following the month in which such higher ratio is adopted, at which time Sections 21.6.4(b)(4.5) and 21.6.5(b)(3.5) of this article shall become inoperative until the first day of the month following the month in which the Board again adopts an assessment ratio for state assessed property which is identical to the ratio required for local assessments by Section 401 of the Revenue and Taxation Code, at which time Sections 21.6.4(b)(4.5) and 21.6.5(b)(3.5) shall again become operative and Sections 21.6.4(b)(4) and 21.6.5(b)(3) shall become inoperative.

Los Angeles Municipal Code § 21.6.7 ENJOINING COLLECTION FORBIDDEN.

SEC. 21.6.7. 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 this City, or against any officer of the State or this City, to prevent or enjoin the collection under this ordinance, or Part 1.5 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

Los Angeles Municipal Code § 21.6.8 EXISTING SALES AND USE TAX ORDINANCES SUSPENDED.

SEC. 21.6.8. EXISTING SALES AND USE TAX ORDINANCES SUSPENDED. At the time this ordinance goes into operation, the provisions of Section 21.199 and Article 1.5 of Chapter 2, Los Angeles Municipal Code, shall be suspended and shall not again be of any force or effect until and unless for any reason the State Board of Equalization ceases to perform the functions incident to the administration and operation of the sales and use tax hereby imposed; provided, however, that if for any reason it is determined that the City of Los Angeles is without power to adopt this ordinance, or that the State Board of Equalization is without power to perform the functions incident to the administration and operation of the taxes imposed by this ordinance, the provisions of Section 21.199 and Article 1.5 of Chapter 2, Los Angeles Municipal Code, shall not be deemed to have been suspended, but shall be deemed to have been in full force and effect at the rate of one percent (1%) continuously from and after April 1, 1956. Upon the ceasing of the State Board of Equalization to perform the functions incident to the administration and operation of the taxes imposed by this ordinance, the provisions of Section 21.199 and Article 1.5 of Chapter 2, Los Angeles Municipal Code, shall again be in full force and effect at the rate of one percent (1%). Nothing in this ordinance shall be construed as relieving any person of the obligation to pay the City of Los Angeles any sales or use tax accrued and owing by reason of the provisions of Section 21.199 and Article 1.5 of Chapter 2. Los Angeles Municipal Code, in force and effect prior to and including March 31, 1956.

Los Angeles Municipal Code § 21.6.9 SEVERABILITY.

SEC. 21.6.9. SEVERABILITY. If any section, subsection, sentence clause, phrase or portion of this ordinance, including but not limited to any exemption, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The Council of the City of Los Angeles hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional.

Los Angeles Municipal Code § 21.6.10 USE TAX INCENTIVE PROGRAM.

SEC. 21.6.10. USE TAX INCENTIVE PROGRAM. (Title and Section amended by Ord. No. 177,216, Eff. 2/8/06.) Any person or entity that has a State of California (State) Sales and Use Tax Permit (Permit) shall be eligible to receive a rebate of 20% of the net use tax gain, as described below, received by the City from a purchase, lease, or any other transaction that is subject to use tax and in which the City of Los Angeles (City) is properly identified as the jurisdiction in which the property acquired under the permit is first functionally used, stored or consumed. A person or entity must file a claim for a use tax rebate with the Director of Finance (Director) within one year from the payment of the use tax to the State. The claim must contain documentation to substantiate the rebate. The Director may request from the claimant any other information necessary to substantiate the rebate claim. The Director shall issue the rebate after verification that the City received the correct amount of funds from the State. The use tax rebate shall be 20% of the difference between the amount of use tax actually received by the City because the Permit was used and the amount of use tax the City would have received if the tax had been allocated to the Los Angles Countywide pool. The rebate shall be paid directly to the claimant but shall be increased or decreased in accordance with any adjustment made by the State to a prior use tax payment by the claimant. The City reserves the right to amend or discontinue any provision of this program without voter approval. Any amendment shall be made by ordinance and shall be applicable to any transaction made subsequent to the effective date of any ordinance.
Source: City of Los Angeles, Charter and Codes (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/los_angeles/latest/lamc/0-0-0-126572Fetched: 10/24/2026

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