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A. The DAA shall promulgate rules and regulations to implement this article within sixty days after the effective date of this ordinance.
B. The DAA shall develop an affidavit to be used by Awarding Authorities within sixty days after the effective date of this ordinance.
C. The DAA shall administer the requirements of this article and monitor compliance, including investigation of alleged violations.
SECTION HISTORY
Added by Ord. No. 175,346, Eff. 8-16-03.
A. This article shall be applicable to Contracts entered into after the rules and regulations have been promulgated by the DAA.
B. This article shall be applicable to Contract amendments entered into after the rules and regulations have been promulgated by the DAA where the initial Contract was not subject to the provisions of this article.
SECTION HISTORY
Added by Ord. No. 175,346, Eff. 8-16-03.
(a) “City” means the City of Los Angeles.
(b) “Contract” means any agreement for the performance of any work or service, the provision of any goods, equipment, materials or supplies, or the rendition of any service to the City or to the public, which is let, awarded or entered into by, or on behalf of, the City of Los Angeles.
(c) “Contractor” means any person, firm, corporation, partnership, association or any combination thereof, which enters into a Contract with the City of Los Angeles.
(d) “Designated Administrative Agency (DAA)” means the City department, board or office which has administrative responsibility under this article. For purposes of this article, it is the Office of Finance.
(e) “Invitation for Bid” means the process through which the City solicits Bids, including but not limited to, Requests for Proposals and Requests for Qualifications.
(f) “Permit” means a State of California Use Tax Direct Payment Permit issued by the State Board of Equalization allowing certain vendors to self-assess and remit use taxes directly to the State.
(g) “Tangible Property” means any property for which a sales or use tax is required to be paid or collected pursuant to California law.
SECTION HISTORY
Added by Ord. No. 178,869, Eff. 7-24-07.
Each year the City spends millions of dollars contracting for the delivery of products and services from private sector Contractors. Many of these Contracts provide funds for the purchase and/or lease of Tangible Property within the City. The California State Board of Equalization allows business that have a California Seller or Consumer Use Tax Account Number to obtain a Permit for remitting use tax when certain conditions are met. The Permit allows purchasers and lessees of Tangible Property to self-assess and pay use taxes directly to the State Board of Equalization instead of paying use taxes to the vendor or lessor from whom the Tangible Property is purchased or leased. To qualify for a Permit, the Tangible Property purchased or leased must have a total value of $500,000 or more annually, and must be purchased from in-state retailers or leased from in-state or out-of-state lessors during the years preceding the application for the program. The Permit holder must allocate local use taxes to the local jurisdiction in which the Tangible Property acquired under the Permit is first functionally used.
It is in the City’s interest to require that eligible Contractors obtain a Permit and properly designate use taxes to the City when the Tangible Property acquired under the Permit is first functionally used within the City. To that end, the City adopted Los Angeles Municipal Code Section 21.6.10 which establishes a Use Tax Direct Payment Permit incentive program to provide for a rebate of a certain percentage of any net use tax gain received by the City as a result of the use of a Permit by any qualified person or entity.
SECTION HISTORY
Added by Ord. No. 178,869, Eff. 7-24-07.
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