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"Sale" and "sell" mean the making of any transfer of title, in any manner or by any means whatsoever, to property for a price, and to the serving, supplying or furnishing, for a price, of any property fabricated or made at the special order of consumers who do or who do not furnish directly or indirectly the specifications or materials therefor. A transaction whereby the possession of property is transferred but the seller retains the title as a security for the payment of the price shall likewise be deemed a sale.
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014)
(a) Except as otherwise provided under this Article 12-A-1
, the City imposes and every person engaging in business within the City shall pay an annual gross receipts tax measured by the person's gross receipts from all taxable business activities attributable to the City. A person's liability for the gross receipts tax shall be calculated according to Sections 953.1 through 953.7.
(b) The gross receipts tax is a privilege tax imposed upon persons engaging in business within the City for the privilege of engaging in a business or occupation in the City. The gross receipts tax is imposed for general governmental purposes. Proceeds from the tax shall be deposited in the City's general fund and may be expended for any purposes of the City.
(c) The voters intend by adopting this measure to authorize application of the gross receipts tax in the broadest manner consistent with the provisions of this Article 12-A-1
and the requirements of the California Constitution, the United States Constitution, and any other applicable provision of federal and state law.
(d)
The tax on Administrative Office Business Activities imposed by Section 953.8 is intended as a complementary tax to the gross receipts tax, and shall be considered a gross receipts tax for purposes of this Article 12-A-1.
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014; amended by Proposition F, 11/3/2020, Eff. 12/29/2020, Oper. 1/1/2021)
(a)
The gross receipts tax rates applicable to the business activities of retail trade, wholesale trade, and certain services are:
(1) For tax years beginning on or after January 1, 2018 and ending on or before December 31, 2020:
0.075% (e.g., $0.75 per $1,000) for gross receipts between $0 and $1,000,000
0.1% (e.g., $1 per $1,000) for gross receipts between $1,000,001 and $2,500,000
0.135% (e.g., $1.35 per $1,000) for gross receipts between $2,500,001 and $25,000,000
0.16% (e.g., $1.60 per $1,000) for gross receipts over $25,000,000
(2) For the business activities of retail trade and certain services:
(A) For tax years 2021 through and including 2024:
0.053% (e.g., $0.53 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.07% (e.g., $0.70 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.095% (e.g., $0.95 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.224% (e.g., $2.24 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2025:
0.079% (e.g., $0.79 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.105% (e.g., $1.05 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.142% (e.g., $1.42 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.224% (e.g., $2.24 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax years beginning on or after January 1, 2026:
0.105% (e.g., $1.05 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.14% (e.g., $1.40 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.189% (e.g., $1.89 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.224% (e.g., $2.24 per $1,000) for taxable gross receipts over $25,000,000
(3) For the business activity of wholesale trade for tax years beginning on or after January 1, 2021:
0.105% (e.g., $1.05 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.14% (e.g., $1.40 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.189% (e.g., $1.89 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.224% (e.g., $2.24 per $1,000) for taxable gross receipts over $25,000,000
(b) Retail trade includes the activity of retailing any type of personal property, generally without significantly transforming its characteristics, and rendering services incidental to the retail sale of property; it includes business activity described in NAICS codes 44 and 45.
(c) Wholesale trade includes the activity of wholesaling property, generally without transformation, and rendering services incidental to the sale of property on a wholesale basis; it includes business activity described in NAICS code 42.
(d) Certain services includes the repair and maintenance services, personal and laundry services, and religious, grantmaking, civic, professional and similar organizations that are not otherwise exempt; it includes business activity described in NAICS codes 811, 812 and 813.
(f) The amount of gross receipts from certain services activities subject to the gross receipts tax shall be the total amount determined under Section 956.2.
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014; amended by Proposition F, 11/3/2020, Eff. 12/29/2020, Oper. 1/1/2021; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021; Ord. 151-23, File No. 230155, App. 7/28/2023, Eff. 8/28/2023, Retro. 1/1/2023)
(a)
The gross receipts tax rates applicable to the business activities of manufacturing, transportation and warehousing, information, biotechnology, clean technology, and food services are:
(1) For tax years beginning on or after January 1, 2018 and ending on or before December 31, 2020:
0.125% (e.g., $1.25 per $1,000) for gross receipts between $0 and $1,000,000
0.205% (e.g., $2.05 per $1,000) for gross receipts between $1,000,001 and $2,500,000
0.37% (e.g., $3.70 per $1,000) for gross receipts between $2,500,001 and $25,000,000
0.475% (e.g., $4.75 per $1,000) for gross receipts over $25,000,000
(2) For the business activities of manufacturing and food services:
(A) For tax years 2021 through and including 2024:
0.088% (e.g., $0.88 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.144% (e.g., $1.44 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.259% (e.g., $2.59 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2025:
0.131% (e.g., $1.31 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.215% (e.g., $2.15 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.389% (e.g., $3.89 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax years beginning on or after January 1, 2026:
0.175% (e.g., $1.75 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.287% (e.g., $2.87 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.518% (e.g., $5.18 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000
(3) For the business activities of transportation and warehousing and clean technology for tax years beginning on or after January 1, 2021:
0.175% (e.g., $1.75 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.287% (e.g., $2.87 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.518% (e.g., $5.18 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000
(4) For the business activity of biotechnology:
(A) For tax year 2021:
0.175% (e.g., $1.75 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.287% (e.g., $2.87 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.518% (e.g., $5.18 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.181% (e.g., $1.81 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.297% (e.g., $2.97 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.537% (e.g., $5.37 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.689% (e.g., $6.89 per $1,000) for taxable gross receipts over $25,000,000
0.188% (e.g., $1.88 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.308% (e.g., $3.08 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.555% (e.g., $5.55 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.713% (e.g., $7.13 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.194% (e.g., $1.94 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.318% (e.g., $3.18 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.574% (e.g., $5.74 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.736% (e.g., $7.36 per $1,000) for taxable gross receipts over $25,000,000
(5) For the business activity of information:
(A) For tax year 2021:
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.644% (e.g., $6.44 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.714% (e.g., $7.14 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.784% (e.g., $7.84 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.573% (e.g., $5.73 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.665% (e.g., $6.65 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.751% (e.g., $7.51 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.832% (e.g., $8.32 per $1,000) for taxable gross receipts over $25,000,000
0.579% (e.g., $5.79 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.675% (e.g., $6.75 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.77% (e.g., $7.70 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.855% (e.g., $8.55 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.585% (e.g., $5.85 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.685% (e.g., $6.85 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.788% (e.g., $7.88 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.879% (e.g., $8.79 per $1,000) for taxable gross receipts over $25,000,000
(b) Manufacturing includes the activity of transforming materials, substances or components into new products by mechanical, physical or chemical means; it includes the activity of assembling component parts of manufactured products; it includes business activity described in NAICS codes 31, 32 and 33.
(c) Transportation and warehousing includes the activities of providing transportation of passengers and/or goods, warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation; it includes business activity described in NAICS codes 48 and 49.
(d) Information includes producing and distributing information or cultural products; providing the means to transmit or distribute those products; and processing data; it includes business activity described in NAICS code 51.
(e) For purposes of this Article 12-A-1:
(1) Biotechnology includes the activity of conducting biotechnology research and experimental development, and operating laboratories for biotechnology research and experimental development, using DNA, cells, and/or bioprocessing techniques, as well as the application thereof to the development of therapeutics, diagnostic products and/or devices to improve human health, animal health, and agriculture. For purposes of this Section 953.2(e)(1):
(A) “DNA” is a nucleic acid sequence, or fragment thereof, that contains the genetic information for cell growth, division, and function. Examples of DNA include recombinant DNA, RNA, mRNA, antisense, RNAi, genes and ESTs.
(B) “Cells” are membrane bound structures containing biomolecules, such as nucleic acids, proteins, and polysaccharides. This definition includes both prokaryotic (bacterial) and eukaryotic (animal or plant) cells. Examples include primary cells, transformed or cultured cells, stem cells, iPS, ESCs, fused cells and cell lines.
(C) “Bioprocessing” is the use of microbial, plant, or animal cells or portions thereof, for the production of therapeutics or diagnostics. Bioprocessing includes the extraction of compounds from biomaterials; reaction of biomaterials, such as microbial fermentation, cell culture, cell fusion or biotransformation by enzymes; and separation of product from biomaterials using filtration, purification, precipitation, centrifugation, solvents, chromatography or other means.
(A) Research and development and/or associated manufacturing applying scientific advances to the production, distribution or storage of clean energy.
(B) Research and development and/or associated manufacturing applying scientific advances to prototype or commercially viable materials and products powered by clean energy, including but not limited to single passenger vehicles and fueling infrastructure.
(C) Research and development and/or associated manufacturing applying scientific advances to prototype or commercially viable techniques, materials and products that materially improve energy efficiency, water conservation or air quality.
(D) Research and development, manufacture and/or installation of solar panels.
(3) For purposes of Section 953.2(e)(2), “clean energy” means energy utilizing energy produced by wind, solar energy, landfill gas, geothermal resources, ocean thermal energy conversion, quantifiable energy conservation measures, tidal energy, wave energy, biomass, biofuels, or hydrogen fuels derived from renewable sources, excluding:
(A) any fossil fuel based energy production, including but not limited to, clean coal, clean diesel, natural gas and hydrogen from natural gas;
(B) any nuclear based energy production;
(C) waste to energy via combustion or incineration; or/and
(D) other technologies that are detrimental to human health.
(f) Food services includes the activity of preparing meals, snacks and/or beverages to customer order for immediate on-premises or off-premises consumption; it includes drinking places; it includes business activity described in NAICS code 722.
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014; amended by Proposition F, 11/3/2020, Eff. 12/29/2020, Oper. 1/1/2021; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021; Ord. 151-23, File No. 230155, App. 7/28/2023, Eff. 8/28/2023, Retro. 1/1/2023)
(a)
The gross receipts tax rates applicable to the business activities of accommodations; utilities; and arts, entertainment and recreation are:
(1) For tax years beginning on or after January 1, 2018 and ending on or before December 31, 2020:
0.3% (e.g., $3 per $1,000) for gross receipts between $0 and $1,000,000
0.325% (e.g., $3.25 per $1,000) for gross receipts between $1,000,001 and $2,500,000
0.325% (e.g., $3.25 per $1,000) for gross receipts between $2,500,001 and $25,000,000
0.4% (e.g., $4 per $1,000) for gross receipts over $25,000,000
(2) For the business activities of accommodations and arts, entertainment and recreation:
(A) For tax years 2021 through and including 2024:
0.21% (e.g., $2.10 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.228% (e.g., $2.28 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.228% (e.g., $2.28 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2025:
0.315% (e.g., $3.15 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.341% (e.g., $3.41 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.341% (e.g., $3.41 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(C) For tax years beginning on or after January 1, 2026:
0.42% (e.g., $4.20 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(3) For the business activity of utilities:
(A) For tax year 2021:
0.42% (e.g., $4.20 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.455% (e.g., $4.55 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.56% (e.g., $5.60 per $1,000) for taxable gross receipts over $25,000,000
(B) For tax year 2022 and, if the Controller does not certify under Section 953.10 that the 90% gross receipts threshold has been met for tax year 2023, for tax year 2023:
0.435% (e.g., $4.35 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.471% (e.g., $4.71 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.471% (e.g., $4.71 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.58% (e.g., $5.80 per $1,000) for taxable gross receipts over $25,000,000
0.45% (e.g., $4.50 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.488% (e.g., $4.88 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.488% (e.g., $4.88 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.6% (e.g., $6 per $1,000) for taxable gross receipts over $25,000,000
(D) For tax year 2024 if the Controller certifies under Section 953.10 that the 95% gross receipts threshold has been met for tax year 2024, and for tax years beginning on or after January 1, 2025:
0.465% (e.g., $4.65 per $1,000) for taxable gross receipts between $0 and $1,000,000
0.504% (e.g., $5.04 per $1,000) for taxable gross receipts between $1,000,000.01 and $2,500,000
0.504% (e.g., $5.04 per $1,000) for taxable gross receipts between $2,500,000.01 and $25,000,000
0.62% (e.g., $6.20 per $1,000) for taxable gross receipts over $25,000,000
(b) Accommodations includes the activity of providing lodging or short-term accommodations for travelers, vacationers, or others; it includes business activity described in NAICS code 721.
(c) Utilities includes the activities of the generation, transmission and distribution of electric power, the distribution of natural gas, the provision and distribution of steam supply, the treatment and distribution of water supply, and the removal of sewage; it includes business activity described in NAICS code 22; it excludes establishments primarily engaged in waste management services.
(d) Arts, entertainment and recreation include the activity of operating facilities or providing services to meet cultural, entertainment or recreational interests of customers or patrons; it includes business activity described in NAICS code 71.
(e) The amount of gross receipts and from accommodations subject to the gross receipts tax shall be the total amount of gross receipts derived from or related to properties located or used within the City.
(g) The amount of gross receipts from arts, entertainment and recreation subject to the gross receipts tax shall be the total amount determined under Section 956.2.
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014; amended by Proposition F, 11/3/2020, Eff. 12/29/2020, Oper. 1/1/2021; Ord. 152-21, File No. 210828, App. 9/29/2021, Eff. 10/30/2021; Ord. 151-23, File No. 230155, App. 7/28/2023, Eff. 8/28/2023, Retro. 1/1/2023)
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