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HomeMy WebLinkAbout2003-11-05 PRA Olsen (2) ATTACHMENTI ORDINANCE NO. AN ORDINANCE OF THE CITY OF COUNCIL OF THE CITY OF UKIAH ADOPTING CHAPTER 8C OF DIVISION 1 OF THE UKIAH CITY CODE IMPOSING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE. A new Chapter 8C of Division 1 is hereby added to the Ukiah City Code to read as follows: Article 1. General. §1735: TITLE: This ordinance shall be known as the City of Ukiah Transactions and Use Tax Ordinance. The City of Ukiah hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. §1736: OPERATIVE DATE: "Operative Date" means the first day of the first calendaz quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. §1737: 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 as authorized by Revenue and Taxation Code Section 7285.91 in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7286.24 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a 2/3 majority of the City Council adopts this ordinance and a 2/3 majority of the electors voting on the measure 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 aze not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. 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 State Board of Equalization 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 State Boazd of Equalization 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 ATTACHMENTI 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. To raise revenue for public safety services as further provided herein. § 1738: CONTRACT WITH STATE: Prior to the operative date, the City shall contract with the State Boazd of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Boazd of Equalization 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 calendaz quarter following the execution of such a contract. Article 2. Transactions and Use Tax §1739: 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 City at the rate of one-half of one percent (.5%) 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. §1740: PLACE OF SALE: For the purposes of this ordinance, all retail sales aze consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to anout-of--state destination or to a common carrier for delivery to anout-of--state destination. The gross receipts from such sales shall include delivery chazges, when such charges are subject to the state sales and use tax, regazdless 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 aze consummated shall be determined under rules and regulations to be prescribed and adopted by the State Boazd of Equalization. §1741: USE TAX RATE: An excise tax is hereby imposed on the storage, use or other consumption in the City 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 one-half of one percent (.5%) of the sales price of the property. The sales price shall include delivery charges when such chazges aze subject to state sales or use tax regazdless of the place to which delivery is made. §1742: ADOPTION OF PROVISIONS OF STATE LAW: Except as otherwise provided in this ordinance and except insofaz 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. §1743: 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: 2 ATTACHMENTI A. Wherever the State of California is named or referred to as the taxing agency, the name of this City 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 Boazd of Control, State Boazd of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessazily 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 "City" 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. §1744: 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 shal- not be required by this ordinance. §1745: 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 aze 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 3 ATTACHMENTI 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 City which is shipped to a point outside the City, 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 City 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 Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to anout-of--City 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--City 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 subsections (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 City 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 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 ATTACHMENTI 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 subsections (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 City 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 City or participates within the City 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 City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" 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 Chapter 2 of Division 3.5 (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 City. 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 district 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. Article 3. Permissible Uses of Transactions and Use Tax §1746: EXPENDITURE PLAN: A. Use of the tax proceeds. The revenues received by the City from the tax imposed by this Chapter ("Proceeds") together with any interest earned by the Proceeds shall be used exclusively to provide public safety services within the City. As used herein, "public safety services" means law enforcement and crime prevention services provided by the Ukiah Police Department, and fire protection and prevention and emergency medical services provided by the Ukiah Fire Department. The Proceeds may be used to pay the salaries, including overtime and specialty pay, and fringe benefits of public safety officers and support staff working in the Police Department and of firefighters, emergency medical technicians and support staff working in the Fire Department, and for the purchase of vehicles, equipment and supplies used exclusively by the Police and Fire Departments. In no event shall the amount of general fund revenues budgeted in any future fiscal year for public safety services in the City be less than an amount necessary to 5 ATTACHMENTI maintain public safety services at the level available in the City in the 2003-2004 fiscal year, when those general fund revenues are combined with the Proceeds; provided, however, that this requirement shall not prevent the City from reorganizing or changing the method of providing public safety services. B. Accounting for tax revenue. All revenues produced by the tax imposed by this Section and all interest on said revenues shall be placed in an account separate and apart from the general fund, designated the "Public Safety Services Fund," and shall be designated for use and used only in accordance with subsection A of this Section 1746. The income to and expenditures from the Public Safety Services Fund shall be accounted for sepazately in the financial reports and records of the City of Ukiah. Article 4. Miscellaneous §1747: 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. §1748: 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 City, or against any officer of the State or the City, 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 TWO 1. 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. The City Council hereby declazes that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more section, subsection, sentence, clause or phrase be declazed unconstitutional or otherwise invalid. 2. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon approval of the ordinance by not less than a 2/3 vote majority of the City Council and a 2/3 majority of the electors voting on a measure to approve this Ordinance at an election called for that purpose. Approved on 2003 by the following roll call vote of the Ukiah City Council: AYES: NOES: ABSENT: ABSTAIN: 6 ATTACHMENTI Eric Larson, Mayor ATTEST: Marie Ulvila, Ciry Clerk ~w0~9EPd1 'JJ ATTACHMENT 2 AGREEMENT BETWEEN THE CITY OF UKIAH AND MENDOCINO COUNTY FOR ELECTION SERVICES WHEREAS, a special Municipal Election has been set for March 2, 2004, the same day as the Statewide Presidential Primary Election, and the City Council of the City of Ukiah desires that the County Clerk shall conduct the election of Mazch 2, 2004, for two (2) ballot measures submitted to the Boazd of Supervisors with the request for consolidation at least 88 days before the election. 1. The County Clerk shall provide the following services in connection with conducting the March 2, 2004 Municipal Election, on the City's behalf: a. Establish precinct boundaries to coincide with Statewide Election. b. Designate polling places and appoint election officers. c. Notify election officers of their appointment and instruct inspectors concerning their duties. d. Appoint and pay election officers. e. Arrange for the availability of polling places, all supplies necessary for casting ballots, and setting up of voting booths. f. Publish lists of precincts, election officers, polling places, and hours polls will be open. g. Provide sample ballots to each voter. h. Receive absent voter applications: supply absent voter ballots to applicants; accept absent voter ballot returns; retain custody of absent voter ballots; and count absent voter ballots. Provide Certificate of County Clerk as to result of the Canvass, for approval by the City Council. 2. The City Clerk of the City of Ukiah shall be responsible for: a. All functions of the City Clerk relative to azguments concerning City measures as set forth in Article 4, Chapter 3, Division 5 (§ 5012) of the Elections Code, including filing and accepting notices required. b. Publication of the Notice of Election. C.\WINDOWS\TEMPoRARY INTERNET FILES\OLKS225WTTACH2.ELECT.SERVICES.DOC c. Receipt of campaign statements and disclosure statements as required by law. 3. In consideration of the services rendered by the County Clerk and described herein, the City of Ukiah agrees to pay the actual direct costs reasonably attributable to the City's Municipal Election, and a ten percent (10%) chazge for associated overhead based upon a detailed invoice prepared by the County Clerk and presented to the City for payment. 4. Payment for services due under this agreement shall be made after billing is submitted by the County of Mendocino. DATED: CITY OF UKIAH, CALIFORNIA By: Eric Larson, Mayor ATTEST: By: Gordon Elton, City Clerk BOARD OF SUPERVISORS MENDOCINO COUNTY, CALIFORNIA By: Richazd Shoemaker, Chairman By: Kristi Furman, Clerk of the Board C'\WINDOWS\TEMPORARY INTERNET FILES\OLK8225\A77ACH2ELECT.SERVICESDOC :ATTACHMENT I Senate Bill No. 566 CHAPTER 709 An act to amend Sections 7251.1, 7285, and 7285.5 of, to add Chapter 2.3 (commencing with Section 7285.9) to Part 1.7 of Division 2 of, and to repeal Sections 7251.3 and 7251.4 of, the Revenue and Taxation Code, relating to taxation. [Approved by Governor October 8, 2003. Filed with Secretary of Srate October 9, 2003.] LEGISLATIVE COUNSEL'S DIGEST SB 566, Scott. Transactions and use tax: maximum allowable rate. Existing law authorizes various local governmental entities, subject to certain limitations and approval requirements, to levy transactions and use taxes in accordance with the procedures and requirements set forth in the Transactions and Use Tax Law. Existing law provides that the combined rate of all transactions and use taxes imposed in accordance with that law, in any county, may not exceed 1.5%, except in the County of San Mateo and the City and County of San Francisco. This bill would authorize any city to levy, increase, or extend a transactions and use tax in accordance with the Transactions and Use Tax Law. This bill would provide that the combined rate of transactions and use taxes in any county may not exceed 2%. This bill would make conforming changes to related provisions. The people of the State of California do enacd as follows: SECTION 1. Section 725 t.l of the Revenue and Taxation Code is amended to read: 7251.1. The combined rate of all taxes imposed in accordance with this part in any county may not exceed 2 percent. No tax shall be considered to be in accordance with this part if, upon its adoption, the combined rate in the county will exceed 2 percent. SEC. 2. Section 7251.3 of the Revenue and Taxation Code is repealed. SEC. 3. Section 7251.4 of the Revenue and Taxation Code is repealed. SEC. 4. Section 7285 of the Revenue and Taxation Code is amended to read: 94 Ch. 709 - 2 - 7285. The board of supervisors of any county may levy, increase, or extend a transactions and use tax for general purposes at a rate of 0.25 percent or a multiple thereof, if the ordinance proposing that tax is approved by atwo-thirds vote of all members of the boazd of supervisors and the tax is approved by a majority vote of the qualified voters of the county voting in an election on the issue. The board of supervisors may levy, increase, or extend more than one transaction and use tax under this section, if the adoption of each tax is in the manner prescribed in this section. The transactions and use tax shall conform to Part 1.6 (commencing with Section 7251). SEC. 5. Section 7285.5 of the Revenue and Taxation Code is amended to read: 7285.5. As an alternative to the procedure set forth in Section 7285, the boazd of supervisors of any county may levy, increase, or extend a transactions and use tax for specific purposes. The tax may be levied, increased, or extended at a rate of 0.25 percent, or a multiple thereof, for the purpose for which it is established, if all of the following requirements are met: (a) The ordinance proposing that tax is approved by atwo-thirds vote of all members of the boazd of supervisors and is subsequently approved by atwo-thirds vote of the qualified voters of the county voting in an election on the issue. (b) The transactions and use tax conforms to the Transactions and Use Tax Law Part 1.6 (commencing with Section 7251). (c) The ordinance includes an expenditure plan describing the specific projects far which the revenues from the tax may be expended. SEC. 6. Chapter 2.3 (commencing with Section 7285.9) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read: CHAPTER 2.3. CITIES TRANSACTIONS AND USE TAXES 7285.9. The governing body of any city may levy, increase, or extend a transactions and use tax for general purposes at a rate of 0.25 percent or a multiple thereof, if the ordinance proposing that tax is approved by atwo-thirds vote of all members of that governing body and the tax is approved by a majority vote of the qualified voters of the city voting in an election on the issue. The governing body may levy, increase, or extend more than one transaction and use tax under this section, if the adoption of each tax is in the manner prescribed in this section. The transactions and use tax shall conform to Part 1.6 (commencing with Section 7251). 7285.91. As an alternative to the procedure set forth in Section 7285.9, the governing body of any city may levy, increase, or extend a 94 - 3 - Ch. 709 transactions and use tax for specific purposes. The tax may be levied, increased, or extended at a rate of 0.25 percent, or a multiple thereof, for the purpose for which it is established, if all of the following requirements are met: (a) The ordinance proposing that tax is approved by atwo-thirds vote of all members of the governing body and is subsequently approved by atwo-thirds vote of the qualified voters of the city voting in an election on the issue. (b) The transactions and use tax confomu to the Transactions and Use Tax Law Part 1.6 (commencing with Section 7251). (c) The ordinance includes an expenditure plan describing the specific projects for which the revenues from the tax may be expended. 7285.92. The authority of a city to impose transactions and use taxes under this chapter is in addition to any authority to impose these taxes contained in Chapters 2.6 (commencing with Section 7286.20) to 2.99 (commencing with Section 7286.80), inclusive, of this part. The authority of a city to impose transactions and use taxes under any provision of law is subject to the rate limitation specified in Section 7251.1. O 94 a,7'ACHPa1Etia ~, _®v STATE OF CALIFORNIA STATE BOARD OF EQUALIZATION LOCAL REVENUE ALLOCATION SECTION CAROLE MIGDEN First Dismct, San Frandsco 450 N STREET, SACRAMENTO, CALIFORNIA (PO BOX 942879, SACRAMENTO, CALIFORNIA 94279-0027 BILL LEONARD Sewntl District, Onlano TELEPHONE (918) 324-3000 FAX (91 fi) 324-3001 CLAUDE PARRISH ThiM Dlstnc( Lone Beach www.boe.ca.9ov JOHN CHIrWG October 24, 2003 Fouts District, Los Angeles STEVE WESTLV CITY OF UKIAH Stata Controller, Sacramento CITY MANAGER 300 SEMINARY AVE Interim Executive D~ecEor UKIAH CA 95482 23033 SB 566 AUTHORIZES CITIES TO IMPOSE TRANSACTIONS AND USE (DISTRICT) TAXES Senate Bi11566 adding sections 7285.9 and 7285.91 to the Revenue and Taxation Code will become effective on Januazy 1, 2004. Section 7285.9 authorizes cities to impose a general purpose transactions and use tax at a rate of 0.25% or increments thereof with the approval of a majority of the voters voting on the issue. Section 7285.91 authorizes cities to impose a special puroose transactions and use tax at a rate of 0.25% or increments thereof with the approval of a 2/3 majority of the voters voting on the issue. The Local Revenue Allocation Section is responsible for the preparatory functions leading to a locally imposed tax being placed on the ballot. Accordingly, if your city is contemplating imposing a district tax, or if you have questions regarding SB 566, please contact Cleveland Turner at (916) 324-1386 or Debby Nelson at (916) 324-1334 to discuss the steps to be taken before the election date. Thank you for your cooperation. Sincerely, L.D. Micheli, Supervisor Local Revenue Allocation Section LDM/DGN cc: District Administrators