Loading...
HomeMy WebLinkAboutState Board of Equalization 2005-10-01; Amendment 1 2015-10-01STATE OF CALIFORNIA COAX- No 100105—M STATE BOARD OF EQUALIZATION 450 N STREET, SACRAMENTO, CALIFORNIA (PO BOX 942879, SACRAMENTO, CALIFORNIA 94279 -0027) TELEPHONE (916) 324 -1371 FAX (916) 324 -3001 www.boe.ca.gov Karen Scalabrini, Finance Director City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 June 16, 2015 Tax Area Code: 122 SEN. GEORGE RUNNER (RET.) First District, Lancaster FIONA MA, CPA Second District, San Francisco, JEROME E. HORTON Third District, Los Angeles County DIANE L. HARKEY Fourth District, Orange County BETTY Y. YEE State Controller CYNTHIA BRIDGES Executive Director The Board of Equalization has received and accepted the Ordinance #1149 for the extension of the existing City of Ukiah transactions and use tax. A copy of the accepted and stamped ordinance is enclosed for your records. The City's agreement becomes operative on October 1, 2016 and continues indefinitely or until repealed by the City. Payments will continue to be transmitted each month. Estimated monthly advance payments for the three months of each quarter will be made, followed by a final cleanup payment for the actual balance of the tax collected, less administrative fees. You may view your current statement of payment on the Board's website at https:// efile. boe. ca. gov /boewebservices /locallur.jsp. Click the indicator opposite "District Add -on Code (3 Digits) ", and enter your 3 -digit code (122) in the box opposite "Jurisdiction Code ". Click on "Send Request ", and your statement will be displayed. For your convenience, the Local Tax Statement page also contains a link to the Local Tax Allocation Calendar, which is the schedule of payment dates. If you have any questions regarding the above, please contact me at (916) 324 -1371. Sincerely, 114.7A 4 itfitA 't Donna Puchalski Business Taxes Specialists I Local Revenue Allocation Unit Enclosures MEASURE P ORDINANCE NO. 1149 Accepted as to form and content Date f G i5 Accepted by i (7. c1 �vl AN ORDINANCE OF THE VOTERS OF THE CITY OF UKIAH EXTENDING THE EXISTING TRANSACTIONS AND USE TAX BY AMENDING SECTION 1799.5 OF CHAPTER 8C OF DIVISION 1 OF THE UKIAH CITY CODE The voters of the City of Ukiah hereby ordain as follows: SECTION 1. FINDINGS. The voters of the City of Ukiah hereby find as follows: The City Council and the people of the City of Ukiah hereby find: 1. At an election held on June 7, 2005, by a vote of 1442 for and 634 against, 69.46% of the voters of the City of Ukiah approved, as a general tax, a one -half cent (0.5 %) Transaction and Use Tax, commonly called a "Sales Tax" and known as "Measure S." 2. Measure S is codified at Chapter 8c of Division 1 of the Ukiah City Code and has an expiration date under Ukiah City Code Section 1799.5 on the tenth anniversary of the Operative Date thereof, unless extended by a majority vote in a subsequent municipal election. 3. The Operative Date of Measure S was the date when the half -cent transactions and use tax was first imposed. That date was September 25, 2005, 110 days after the voters approved the measure. 4. Under Ukiah City Code Section 1799.5, the Measure S Sales Tax will terminate on September 25, 2015. 5. When Measure S passed, the voters overwhelmingly answered "Yes" to the question posed by Measure T, an accompanying advisory measure which asked: "Should additional funds for public safety, including police, fire and emergency medical services, be the first priority for the use of new sales tax revenues in the City of Ukiah ?" 6. In 2005, when Measures S and T passed, the City spent $5,670,719 on public safety, including police, fire and emergency medical services. 7. Under the guidance from Measure T, the City has spent as follows for public safety: Fiscal Year ('Unaudited) FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013* FY2014* General Fund Measure S Other Total $5,286,893 $1,092,344 $ -0- $6,379,237 $5,177,424 $2,277,084 $ 27,861 $7,482,369 $5,451,375 $2,322,584 $ 3,794 $7,777,753 $6,127,841 $2,129,720 $ 1,337 $8,258,898 $7,152,310 $2,013,673 $ 79,918 $9,245,901 $5,991,911 $2,153,968 $ 136,321 $8,282,200 $6,233,347 $2,229,049 $ 88,158 $8,550,554 $6,826,934 $2,412,549 $ 7,670 $9,247,153 $6,250,200 $2,371,888 $ 500 $8,622,588 Page 1 of 3 While Measure S revenues are general fund revenues subject to the budgeting discretion of the City Council, it has, in fact, used the taxes from Measure S exclusively for public safety. In addition, the City Council has increased general fund support for public safety by over $4.5 million since 2005. The City Council chose consistently throughout the financial crisis since 2008 to sustain funding for public safety. and added to it from the General Fund, even in the face of making significant spending reductions in other city operations and non- safety personnel. Despite this level of spending the City has struggled to maintain adequate personnel and equipment to meet the demands for public safety services which have increased substantially over the past 10 years. 9. The 10 year sunset in Measure S has created a significant problem for the City's Police Department in recruiting and retaining new peace officers, because the City cannot assure new recruits that it will have funding for their positions, after the tax revenue from Measure S terminates in 2015. 10. This measure, if passed by the voters, continues the sales tax enacted by Measure S beyond its current repealed date and provides that the tax will remain in effect until it is repealed by majority vote at a municipal election. 11. The City Council determined at its special meeting on June 24, 2014, to place this measure on the ballot for the regular municipal election on November 4, 2014, as authorized by Revenue and Taxation Code section 7285.9. 12. While this measure will continue the tax indefinitely. unless repealed or amended by the voters. a City Council resolution adopted at its meeting on June 24. 2014, will establish a committee composed of members of the public (the Oversight Committee) to review and report on the use of the revenue from the tax. The extension of the tax shall be approved if the measure receives at least a majority of affirmative votes. 13 Based on all of the information presented at the City Council meetings on June 18 and 24. 2014, both written and oral, including the staff reports. minutes. and other relevant materials, the City Council finds that under CEQA Guidelines 15060(c)(2) and 15378 subdivisions (2) and (4) of subdivision (b), this action does not constitute a project under CEQA and therefore, review under CEQA is not required. SECTION 2. AMENDMENT OF SECTION 1799.5 OF THE UKIAH CITY CODE. Section 1799.5, "Repeal of Tax." of the Ukiah City Code shall be amended to read as follows. §1799.5 REPEAL OF TAX The tax imposed by this chapter shall be made permanent and remain in full force and effect. unless and until repealed by a majority vote at a general municipal election. SECTION 3. ORDINANCE TO BE SUBMITTED TO THE VOTERS. This ordinance shall be submitted to the voters at an election to be held on November 4, 2014. Upon approval by a majority of the voters of the City voting on this ordinance. the Transactions and Use Tax set forth in City of Ukiah Ordinance No. 1063 ( "Measure S ") shall be continued indefinitely, unless repealed by majority vote in a subsequent municipal election. SECTION 4. SEVERABILITY If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the Page 2 of 3 application of such provision to the other persons or circumstances shall not be affected thereby. The voters of the City of Ukiah hereby declare that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. SECTION 5. CODIFICATION. Upon adoption of this ordinance pursuant to the voter approval referenced herein, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Ukiah City Code. SECTION 6. EFFECTIVE DATE. If this ordinance is approved by a majority of the voters voting on the issue at the November 4, 2014 election, pursuant to Elections Code Section 9217, this ordinance shall become effective ten (10) days after the City Council declares the results of the election. The Operative Date of the Transactions and Use Tax set forth in City of Ukiah Ordinance No. 1063 shall not be affected by this ordinance. Approved on June 24, 2014 by the following roll call vote of the Ukiah City Council: AYES: Councilmembers Scalmanini, Crane. Thomas, Landis, and Mayor Baldwin NOES: None ABSENT: None ABSTAIN: None ATTEST: s v� Philip E.,'BfIdwin, Mayor Kristine Lawler, City Clerk Page 3 of 3 City of Ukiah, California Certified to be a True and Exact Copy Date Kristine Lawler, City Clerk ORDINANCE NO. 1063 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: 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 calendar 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 7285.9 in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be effective and operative if a 2/3 majority of the City Council adopts this ordinance and a simple majority of the electors voting on the measure vote 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 are 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 Board 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 1 ATTACHMENT 1 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 the general fund purposes of the City of Ukiah as further provided herein. § 1738: CONTRACT WITH STATE: Prior to the operative date, the City shall contract with the State Board 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 Board 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 calendar 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 are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his 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 and adopted by the State Board 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 charges are subject to state sales or use tax regardless of the place to which delivery is made. §1742: ADOPTION OF PROVISIONS OF STATE LAW: Except as otherwise provided in this ordinance and except insofar 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 ATTACHMENT 1 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 Board of Control, State Board 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 necessarily 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 seIler's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall 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 are 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 ATTACHMENT 1 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 an out -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 ATTACHMENT 1 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. USES OF TAX: The revenues generated by this tax shall be deposited in the General Fund of the City of Ukiah and may be used for the general governmental purposes 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. 5 ATTACHMENT 1 §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. §1749: REPEAL OF TAX: The tax imposed by this Ordinance shall be repealed and of no further force and effect ten years (10) after the Operative Date. SECTION THREE 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 declares 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 declared 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 its approval by the voters as provided in Section 1737.A . Approved on March 2, 2005 by the following roll call vote of the Ukiah City Council: AYES: Councilmembers Crane, McCowen, Baldwin, and Mayor Ashiku NOES: None ABSENT: Councilmember Rodin ABSTAIN: None �TTEST: Marie Ulvila, City Clerk 6 ark Ashiku, Mayor