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<br />1 <br /> <br />1 <br /> <br />Hearing <br />(Avon <br />Continued) <br />13 {~I <br /> <br />" <br /> <br />:J-I <br /> <br />oj' <br /> <br />:' <br /> <br />(! 114l: <br /> <br />cited by the City Attorney. <br /> <br />Councilman Reibold queried:' "When a sale is made, the person <br />soliciting does not actually take the money, but the buyer is <br />billed - is that correct?" to which Mr. . Mitchell replied that <br />when a sale is made no money changes hands until the merchandise <br />is delivered; that at the time the sale is made the price of the <br />merchandise, plus the sales and Federal tax, is computed and when <br />the customer pays for the merchandise the tax is paid. Councilman <br />Phillips then stated that it was his understanding that if all <br />sales for Arcadia are reported to l045 West Huntington Drive, <br />and on Avon Product's reports, then whatever accrues to the benefit <br />of the City would automatically come to Arcadia in its entirety. <br />Councilman Camphouse suggested that in the interval that the <br />matter is under advisement the staff and Mr. Mitchell work out <br />the details so that a program can be presented which would be <br />beneficial to Arcadia. <br /> <br />The City Attorney stated that he had doubts as to whether they <br />can get that 'type of permit; that if they could then Avon Products <br />of Pasadena would have secured that kind of license; that where <br />sales are in fact not made from a fixed place of business but <br />only reported through a fixed place of business the sales tax <br />collected is disbursed in accordance with the formula adopted by <br />the State Board of Equalization under the provisions of the Revenue <br />and Taxation Code and that formula is that percentage of sales tax <br />reported from fixed places of business. <br /> <br />Councilman Camphouse commented that Pasadena acquired its permit <br />prior to the enactment of the Bradley-Burns Act arid that there <br />might be a possibility of working it out with the State Board of <br />Equalization in that it may not have revised its original setup <br />since the enactment of the Bradley-Burns Act; to which the City <br />Attorney stated that prior to the enactment of the Bradley-Burns <br />Act the State did not collect any local retail sales tax or use <br />'tax. . <br /> <br />Councilman Reibold inquired of Mr. Mitchell as to whether, if it <br />were required, his company would take out a sales tax permit at <br />its Arcadia business address, to which Mr. Mitchell replied that <br />it would, reiterating his statement that in the counties that <br />have not accepted the Bradley-Burns law Avon Products is doing <br />just that and that it would be most happy to do that in Arcadia; <br />that as he understood it, the State takes a percentage of the tax <br />as its fee for collecting. <br /> <br />Councilman Reibold said that when it is prorated back on the basis <br />of total sales tax it may not be prorated back in the order of <br />magnitude of the sales. <br /> <br />The City Attorney queried if, at the time the merchandise is <br />delivered, the sales price is then collected from the customer, <br />to which Mr. Mitchell answered that it was; that no money is <br />collected until the merchandise is delivered. Mr. Mitchell then <br />inquired of the Council as to whether, during the time the matter <br />is under advisement Avon is still to operate in a curtailed manner, <br />as it had been during the time this "litigation" has been going <br />on concerning soliciting, to which Councilman Phillips answered <br />that unfortunately this is true, but that the City Attorney hoped <br />to have something for Council to consider at this meeting. <br /> <br />/ <br /> <br />.c,'. Mr. Mitchell then stated that Avon Products, as a company, <br />appreciates the open-minded approach that the Council of Arcadia <br />has taken in this matter and that it was certainly willing to <br />bear with the Council until the matter is worked out. <br /> <br />The City Attorney then stated that the matters of the City Attorney <br />are next on the agenda and that although the Green River Ordinance <br />is not listed on the agenda, that this is the first matter that <br />he would propose to discuss before the Council at this meeting <br />and that the Avon Products representatives might be interested in <br />remaining to hear the comments. <br /> <br />3. <br /> <br />2-4-58 <br />