Loading...
HomeMy WebLinkAbout2006-03 ukiah transaction & use taxRESOLUTION NO. 2006-03 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AGREEMENT WITH CALIFORNIA STATE BOARD OF EQUALIZATION TO ADMINISTER CITY OF UKIAH TRANSACTION AND USE TAX AND AUTHORIZING MAYOR TO SIGN AGREEMENT WHEREAS, on June 7, 2005, the City of Ukiah conducted a special election to approve an ordinance imposing a general one-half of one percent (.5%) transaction and use tax in the City of Ukiah pursuant to the authority contained in Revenue and Taxation Code Section 7285.9; and WHEREAS, Ordinance No. 1063, imposing the tax, was approved by more than 69% of the votes cast in that election; and WHEREAS, the results of that election have been certified in accordance with legal requirements; and WHEREAS, in order to implement the tax in the City of Ukiah, the City must enter an agreement with the State Board of Equalization to administer the tax on behalf of the City; NOW, THEREFORE, BE IT RESOLVED that the agreement with the State Board of Equalization, a true and correct copy of which is attached hereto as Exhibit A, is hereby approved and accepted by the City of Ukiah and the Mayor is hereby authorized to sign the agreement on behalf of the City. THE FOREGOING RESOLUTION WAS ADOPTED at a regular meeting of the Ukiah City Council held on the 20th day July, 2005, by the following roll call vote: AYES: NOES: None ABSENT: None ABSTAIN: None Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku ATTEST: Marie Ulvila, City Clerk ~Ma'rk Ashiku, Mayor Resolution No. 2006-03 Page 1of 1 EXHIBIT A AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE CITY'S TRANSACTIONS AND USE TAX ORDINANCE In order to prepare' to administer a transactions and use tax Ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and .. Taxation Code, the City of ljk±ah , hereinafter called .City, and the STATE BOARD OF EQUALIZATION, hereinafter called/Board, do agree as follows: 1. The Board agrees to enter into work to prepare to administer and operate a transaCtions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City. 2.' City agrees to pay to the'Board at the' times and in the mounts hereinafter specified all of the Board's costs for preparatory work necessary to administer` the City's transactions and use tax ordinance. The Board's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting 'appropriate. regulations, .designing and printing forms, developing instructions for the Board's 'staff and for' taxpayers, and other appropriate' and necessary preparatory costs to administer a transactions, and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the G°vemment Code. 3. Preparatory .costs may be accounted for in'a manner which 'conforms to' the internal accounting and personnel reCOrds currently maintained by the Board. The billings for costs may be presented in summary, form. Detailed records of preparatory costs will be retained for audit and verification-by the City. 4. Any dispute as to the amount of preparatory costs incurred by the Board shall be referred to the State DirectOr of Finance for resolution, and the Director's decision shall be final. 5. Preparat°ry costs incurred by the Board shall be billed by the Board periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Board the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. 6. The 'amount to be paid by City for the Board's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) 7. ~mmunications and notices' may be sent by first class Communications and notices to be sent to the Board shall be addressed to: STATE BOARD OF EQUALIZATION P. O. BOX 942879 SACRAMENT0, CAL~ORNIA 94279-0073 ATTENTION: EXECUTIVE DIRECTOR United States mail. Communications. and notices to be sent to City shall be addressed to: City of Ukiah - City Manager 300 Seminary. Ave Ukiah, CA .9548'2 8..The date of this agreement is the date on Which it is approved b~ the Depar~ent of General Seririces.. This' agreement shall continue in effect until the preparatory work necessary to 'adminiSter City's transactions and use 'tax ordinance has been completed and the Board has. received' all payments due from'City under the terms' of this agreement. · , .. CITY OF Ukiah .' STATE BOARD' OF EQUALIZATION '/,-~ .... ' (Signature) · .~ Hark .Ashiku " (Typed Name) .· (Title) (Rev. 11/02) By (Executive Director) AGREEMENT FOR STATE ADMINISTRATION OF CITY TRANSACTIONS AND USE TAXES The City Council ofthe City of. uk~h has adopted, and the voters ofthe City of .__Uk±ah (hereafter called "City" or '~Distdct") have approved by the required majority vote, the City of Ukiah Transactions and Use Tax Ordinance (hereafter called "Orainauce"), a copy of wkich is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the State Board of Equalization, (hereinafter called the "Board") and the City do.agree as'follows: ARTICLE I D mmo s Unless the.?ontext requires otherwise, wherever the folio.wing terms appear in the Agreement, they shall be interpreted to mean the following: " · · 1.. "District taxes" shall mean the transactions and use taxesl penalties, and interest imposed under an oi:dinance specifically authorized by Revenue and Taxation code Section 7'285.9, .and in .- · comPliauce With Part 1.6, Division 2 of the Revenue and Taxation Code. 2. "City Ordinauce" shah mean the City's Transactions and Use Tax ordinance referred to · · above andattached.hereto, OrdinauceNo.~ 1063 , as amended, from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2. .. .. · · · ARTICLE H ADMINIS~~0N AND COLLECTION · . OFcrr T .AX s. . A. Administration. The Board: and City agree that the Board shall perform exclusively'all .. functions incident to the.administration and operation of the City ordinance. B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and oPeration of the State Sales and Use Tax Law which are not inconsistent w/th Part · . 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant, to the City.'Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Bo. ard pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled. C. Transmittal of money. 1. For'the period during which the tax is in effect, and except as otherwise provided herein, . all district taxes collected under the provisions of the City Ordinance shall be transmitted~to City periodically as promptly as feasible, but not less often than twice in each calendar quarter. 2. For periods subsequent to the expiration date of the tax whether by city's self-imPosed limits or by final judgment of any court of the State of California holding that City's ordinance is invalid or void, all district taxes collected under the.provisions' of the City 'Ordinance shall be transmitted to City not less than once in each calendar quarter. 3.' Transmittals may be made by mail or electronic funds'transfer to an account of the City designated }md authoriZed by the City. A'statement shall be furnished at least quarterly indicating.the amounts withheld pursuant to Article IV of this Agreement. D. Rules. The Board shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation-of the City Ordinance and the distribution of the district taxes collected thereunder. · E. Preference. Unless the paYor instructs otherwise, and except as otherwise provided in this Agreement, the Board shall give no preference in applying money received for state sales and. use taxes, state-administered local sales and use taxes~ and district transactions and use taxes owed by a taxpayer, but shall apply moneys cOllected to the satisfaction of the.claims of the state, cities, counties," cities and counties, redevelopment agencies; other districts, 'and City as their interests appear. Kev. 1/05 2 F. Security. The Board agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Board shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Board. G. Records of the Board. When requested by resolution of the legislative body of.the City under section 7056 of the RevenUe and Taxation Code, the Board' agrees to permit authorized personnel of the City to examine the records of the Board, including the name, address, and account number of each seller hol~ting a seller's permit with a registered business location in the' City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination Of the Board's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Board pursuant to this Agreement. H. Annexation. City agrees that the Board shall not be required to give effect to an annexation; for the purpose of collecting, allocating, and distributing District transactions .and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after · notice to the Board. The notice shall· include the name' of the County or counties annexed to the extended C_ity boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the city showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary. ARTICLE III ALLOCATION OF TAX A. Allocation. In' the administration of the Board's contracts with all .dish'icts that impose · transactions and use taxes imposed under ordinances, which comply with Part '1.6 of Division 2 of the Revenue' and Taxation Code: Kev. 1/05 3 · . 1. Any payment not identified as being in payment .of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Board, to.. all districts with which the Board has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers. .' .. 2. All district taxes collected as a result of determinations or billings made by the Board, and. all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies. B..Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraf~,'the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Board in determiniug the place of use. ARTICLE IV COMPENSATION The City agrees to pay to the Board as.the Board's cost of 'administering the City ordinance .. such amount as is provided for by law. Such amounts shall be deducted from the taxes col.lected by the Board for the City. ARTICLE V MISCELLANEOUS PROVISIONS A. Communications. Communications and notices may be sent by 'first class United States 'mail to the addresses listed below, or to such other addresses as the parties may from time to time designate. A notification is COmplete when deposited in the mail. R~v. ~/05 4 Communications and notices to be sent to the Board shall'be addressed to: State Board of Equalization P.O. Box 942879' Sacramento, California 94279-0073 Attention: Executive Director Communications and notices to be sent to the City shall be addressed to: Candace Horsley, City Manager ~00 Seminary Ave. Ukiah, CA .95482 'Unless otherwise directed, transmittals of payment of'District' transactions and use taxes · will be Sent to the address above. B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on . This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until .the Board completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance. C. Notice Of Repeal of Ordinance. City shall give the Board written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. Rev. 1105 ARTICLE VI ADMINISTRATION OF TAXES IF THE ORDINANCE IS CHALLENGED AS BEING INVALID A. ImpOundment of funds. 1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C.; until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.. 2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Board the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and'fees becoming final and non- appealable. '. B. Costs of administration. Should a final judgment be entered in any court 'of the Stale of California, holding that City's Ordinance is invalid or void, and requiring, a rebate or refund to taxpayers of any taxes collected under the'terms of this Agreement, the parties mutually agree that: 1. Board may retain all payments made by City to Board to prepare to administer the City Ordinance. 2. City will pay to Board and allow Board to retain Board's cost of administering the City Ordinance in the mounts set forth in Article IV of this Agreement. 3. City will Pay to Board or to the State of California the mount of any taxes plus interest and penalties, if any, that Board or the State of California may be required to rebate or refund to taxpayers. Rev. 1/05 6 4. City will pay to Board its costs for rebating or refunding such taxes,' intbrest, or penalties. Board's costs shall include its additional cost for developing procedures for processing .the rebates 'or refundS-;: its Costs of actually, making these refunds, designing and printing forms, and developing instructions for Board's staff for use in making these rebates or refunds and any other costs incurred by Board which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Board's direct and indirect costs aS specified by Section 11256 .of the Government Code. .5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Boa.rd. The billings for such costs may be presented in summary, form. Detailed records will 'l~e retained for audit and 'verifications 'by City. 6. Any dispute as to the amount of costs incurred by Board I refunding taxes shall be referred to the State Director of FinanCe for 'resolutior~' and the Director's decision shall be final. 7. Costs 'incurred by Board in connection with such refunds shall be billed by Board on or before the 25th day of the second month.following the month in which the judgment of a .court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Board shall bill City on or before the 25th of each month for all costs incurred by Board for the preceding calendar month. City shall pay to Board the amount of such costs 'on or before the last day of the succeeding month and shall pay to Board' the total amount of taxes, interest, and penalties, refunded or paid to taxpayers, together with Board costs incurred in making those refunds. CITY OF UKIAH ~// ".-(Si~nat~e) - 'Mark Ashiku (Typed Name) Mayor (Title) STATE BOARD OF EQUALIZATION By, (Executive Director) CITY OF UKIAIt TRANSACTIONS AND USE TAX All' legal correspondence should be mailed to the following addresS: Jurisdiction: Title: C~ty Manager Address: Financial correspondence(Non-confidential information) should be mailed to the following address: Note: Confidential information may be s~nt only to positions authorized by resolution ' Jurisdiction: Title: .Finnnc, a ]3irar'~-nr Ad&ess: Paper warrants (if issued) and Monthly/quarterly statements' of transactions and use tax payments should be mailed to. the following address: Jurisdiction: Title: Finance Director Ad&ess: Name: Candace .l-J. or~sley Title:' City Manager Date: PASSED