HomeMy WebLinkAboutResolution No. 16-7654-Consolidate Measure Levy Transactions and Use Tax Measure ElectionWHEREAS, the City Council is submitting to the voters the question relating to the levy
of a one -half of one percent transactions and use tax as set forth in this Resolution; and,
WHEREAS, it is desirable that the General Municipal Election be consolidated with the
Statewide General Election to be held on the same date and that within the City the precincts,
polling places and election officers of the two elections be the same, and that the county
election department of the County of Los Angeles canvass the returns of the General Municipal
Election and that the election be held in all respects as if there were only one election.
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SECTION 1. That pursuant to the requirements of Section 10403 of the California
Elections Code, the Board of Supervisors of the County of Los Angeles is hereby requested to
consent and agree to the consolidation of a General Municipal Election with the Statewide
General Election on Tuesday, November 8, 2016, for the purpose of placing before the voters a
measure to levy a transactions and use tax of one -half of one percent.
SECTION 2. That measure is to appear on the ballot as follows`
TRANSACTIONS AND USE TAX. To maintain
and improve city services including city -run police YES
and fire departments, paramedic /9 -1 -1
emergency response, anti- gang /drug /crime NO
programs, school safety, after- school and seniors
programs; ensure fire engines and emergency
vehicles have updated equipment; and repair
streets /potholes; shall the ordinance to increase
the sales tax by ,one -half of one percent,
providing $9,000,000 annually, to expire after 20
years, requiring audits, public disclosure of funds,
and all funds only for Downey be adopted?
SECTION 3. That the proposed full text of the ordinance authorizing the transactions
and use tax to be approved by the voters, entitled the "City of Downey Transactions and Use
Tax Ordinance," is attached as Exhibit "A" to this Resolution. The full text of the ordinance shall
be printed in the Voter Information Pamphlet.
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SECTION 4. That the proposed transactions and use tax is a general tax requiring the
approval of a majority of votes cast by` qualified electors of the City voting in the election on the
issue.
SECTION 5. That the Registrar of Voters of the County of Los Angeles is authorized to
canvass the returns of the General Municipal Election. The election shall be held in all respects
as if there were only one election, and only one form of ballot shall be used. The election will be
held and conducted in accordance with California Elections Code Section 10418 and the
provisions of law regulating the Statewide Election.
SECTION 6. That the Board of Supervisors is requested to issue instructions to the
Registrar of Voters of the County of Los Angeles to take any and all steps necessary for the
holding of the consolidated election.
SECTION 7. That the City of Downey recognizes that additional costs will be incurred
by the County by reason of this consolidation and agrees to reimburse the County for any costs.
SECTION 8. That the City Clerk is hereby directed to file a certified copy of this
Resolution with the Board of Supervisors and Registrar of Voters of the County of Los Angeles.
SECTION 9. That the City Clerk shall certify to the passage and adoption of this
resolution.
RESOLUTION
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AN ORDINANCE OF OF DOWNEY
TRANSACTIONS ENACTING A r USE TAX TO BE ADMINISTERED BY T
STATE BOARD OF EQUALIZATION, UPON ADOPTION BY THE VOTERS
The People of the City of Downey do hereby ordain as follows`
Section 1. Chapter 1 E is hereby added to Article Vl of the Downey Municipal Code with the
following provisions:
"Section 6199.60. Title. This chapter shall be known as the City of Downey
Transactions and Use Tax Ordinance. The City of Downey will hereinafter be called City.
This chapter shall be applicable in the incorporated territory of the City.
Section 6199.61. Definitions. The following words and phrases shall be defined as
set forth in this chapter, except that any term or phrase not defined in this shall have the
same meaning as that term or phrase is defined in the California Revenue and Taxation
Code, Division 2, Parts 1.6 and 1.7:
A. "City" means the City of Downey.
B. "Operative Date means the first day of the first calendar quarter commencing
more than 110 days after the adoption of this chapter by vote of the electorate on
November 8, 2016.
C. "Chapter" means Chapter 1 E of Article VI of the Downey Municipal Code.
D. "State" means the State of California.
Section 6199.62. Purpose. This chapter is adopted to achieve the following, among
other purposes, and it shall be interpreted liberally in order to accomplish all of its lawful
purposes:
A. To impose a retail transactions and use tax to be applied throughout the entire
territory of the City to the fullest extent permitted by law and 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 Ordinance if a 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 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 chapter 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 and use taxes and, at the same time,
minimize the burden of record keeping upon persons_ subject to taxation under
the provisions of this chapter.
E. To provide transactions and use tax revenue to the City to be used for general
purposes.
Section 6199.63. Contract with the 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 chapter; 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.
Section 6199.64. Transactions Tax Rate. For the privilege of selling tangible
personal property at retail, a general transactions tax is hereby imposed upon all
retailers in the incorporated territory of the City at the rate of 0.5% of the gross receipts
of any retailer from the sale of all tangible personal property sold at retail within the
territory of the City on and after the Operative Date of this chapter.
Section 6199.65. Place of Sale. For the purposes of this chapter, 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.
Section 6199.66. 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 chapter for storage, use or other
consumption in the territory of the City at the rate of 0.5% 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.
Section 6199.67. Adoption of Provisions of State Law. Except as otherwise
provided in this chapter, 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 of the Revenue and Taxation Code are
hereby adopted, incorporated, and made a part of this chapter as though fully set forth
herein.
Section 6199.68. 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:
A. Wherever the State is named or referred to as the taxing agency, the name of
the City shall be substituted. However, this substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller,
State Treasurer, Victim Compensation and Government Claims Board,
State Board of Equalization, State Treasury, or the Constitution of the
State of California;
2. The result of the substitution would require action to be taken by or
against the 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 chapter.
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 the tax in this chapter with respect to
certain sales, storage, use or other consumption of tangible
personal property which would not otherwise be exempt from the
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 same provision of that code.
4. 1n 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.
Section 6199.69. 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 shall not be required by this chapter.
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 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 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;
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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 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 chapter.
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 Tease
the property for an amount fixed by the lease prior to the Operative Date
of this chapter.
5. For the purposes of subparagraphs (3) and (4) of this section, the sale or
lease of tangible personal property shall be deemed not to be obligated
pursuant to a contractor 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 chapter, 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
chapter;
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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 chapter.
5. For the purposes of subparagraphs (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 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 chapter 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.
Section 6199.71. Amendments. All amendments subsequent to the Effective Date
of this chapter 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 adopted and
part of this chapter; provided, however, that no such amendment shall operate so as to
affect the rate of tax imposed by this chapter. The City Council or the City's voters may
amend this chapter to comply with applicable law or as may be otherwise necessary to
further the chapter's stated purposes. However, as required by Article XIII C of the
California Constitution, no amendment to this chapter may increase the rates of the
taxes authorized by this chapter unless such amendment is submitted to and approved
by the voters.
Section 6199.72. Prohibition on Enjoining Collection. 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 chapter, 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
under this chapter.
Section 6199.73. Severability. If any provision of this chapter or the application
thereof to any person or circumstance is held invalid, the remainder of the chapter or the
application of such provision to other persons or circumstances shall not be affected
thereby.
Section 6199.74. Effective Date. This chapter relates to the levying and collecting
of City transactions and use taxes and shall take effect immediately. However, no tax
imposed by this chapter shall be effective unless that tax has been approved by the
voters of the City as required by section 2(b) of Article XIII C of the California
Constitution and applicable law.
Section 6199.75. Precedence over Other Provisions in the Municipal Code. Any
provision of the Downey Municipal Code or _appendices thereto inconsistent with the
provisions of this chapter, to the extent of such inconsistency and no further, is hereby
repealed or modified to the extent necessary to effect the provisions of this chapter.
Section 6199.76. Independent Citizen Oversight. A five - member Independent
Citizens' Advisory Committee will be created by the City Council and shall meet at least
quarterly to review the expenditure of revenues generated by the tax imposed by this
chapter and to make recommendations to the City Council regarding those
expenditures. The Independent Citizens' Advisory Committee shall meet publicly on at
least a quarterly basis to review all revenues and expenditures of the transactions and
use tax imposed by this chapter, review annual audit reports related to the tax, and
make at least one written annual report to the City Council at a public meeting
summarizing the Independent Citizens' Advisory Committee's findings and including any _
appropriate recommendations. The minutes of the meetings of Independent Citizens'
Advisory Committee shall be provided to the City Council and placed on the next
available regular City Council meeting agenda for informational purposes.
Section 6199.77.- Audit and Review. The proceeds of the tax imposed by this
chapter, as well as the expenditure thereof, shall be audited annually by an independent
accounting firm. The City Council shall discuss the results of such audit at a meeting of
the City Council that is open to the public. The report of such audit shall be posted on
the City's website.
Section 6199.78. Sunset of Tax. The taxes imposed by this chapter shall remain
effective until the soonest to occur of (i) the voters repeal this Ordinance; or (ii) twenty
(20) years from the date the taxes imposed by this chapter are first collected. The taxes
imposed by this chapter may be renewed prior to the sunset period by a majority of the
electors voting in an election."
Section 2. Execution. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance upon certification by the City Council of the results of the election approving this
Ordinance.
PASSED AND ADOPTED by the City Council of the City of Downey, on
by the following vote:
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AYES:
NOES`
ABSENT
Attest:
Adria M. Jimenez, MMC, City Clerk
Alex Saab, Mayor
I hereby certify that this Ordinance was APPROVED by the voters of the City of Downey,
State of California, at a general election held on November 8, 2016 and by the City Council of
the City of Downey at a regular meeting of the Council held on November 2016.
Attest:
Adria M. Jimenez, MMC, City Clerk
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Alex