HomeMy WebLinkAboutR 5367 RESOLUTION NO. 5367
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE, CALIFORNIA CALLING FOR THE
PLACEMENT OF A GENERAL TAX MEASURE ON THE BALLOT
FOR THE NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION
FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF AN
ORDINANCE TO ENACT A GENERAL TRANSACTIONS AND USE
TAX (SALES TAX) AT THE RATE OF ONE CENT (1¢)
WHEREAS, the City of Arroyo Grande ("City") is authorized to levy a Transactions and
Use Tax ("sales tax") for general purposes pursuant to California Revenue and Taxation
Code section 7285.9, subject to approval by a majority vote of the electorate pursuant to
Article XIIIC, section 2 of the California Constitution ("Proposition 218"); and
WHEREAS, pursuant to California Elections Code section 9222, the City Council has
authority to place local measures on the ballot to be considered at a Municipal Election; and
WHEREAS, the City Council would like to submit to the voters at the November 5,
2024 General Municipal Election a measure establishing the rate of the sales tax of one
cent (1¢) on the sale and/or use of all tangible personal property sold at retail in the City
until it is repealed by voters, as more specifically set forth in the attached proposed
ordinance adding Chapter 3.26 to the City's Municipal Code; and
WHEREAS, the one cent (1¢) sales tax is a general tax, the revenue of which will be
placed in the City's general fund and will be used to pay for general City services; and
WHEREAS, on November 6, 1996, the voters of the State of California approved
Proposition 218, an amendment to the State Constitution which requires that all general
taxes which are imposed, extended or increased must be submitted to the electorate and
approved by a majority vote of the qualified electors voting in the election; and
WHEREAS, pursuant to Proposition 218 (California Constitution, Article XIIIC, section
2(b)), the general rule is that any local election for the approval of an increase to a general
tax must be consolidated with a regularly scheduled general election for members of the
governing body of the local government; and
WHEREAS, the next regularly scheduled general election at which City Council
members will be elected is November 5, 2024; and
WHEREAS, pursuant to Revenue and Taxation Code section 7285.9, a two-thirds
(2/3) vote of all members of the City Council is required to place the Measure on the
November 5, 2024 ballot; and
WHEREAS, the ordinance to be considered by the qualified voters and the terms of
RESOLUTION NO. 5367
PAGE 2
approval, collection and use of the general sales tax are described and provided for in the
ordinance/measure attached hereto as Exhibit "A" (the "Measure") and by this reference
made an operative part hereof, in accordance with all applicable laws.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE:
SECTION 1. Incorporation of Recitals. The foregoing recitals are true and correct and
are hereby incorporated and made an operative part of this Resolution.
SECTION 2. Submission of Ballot Measure. Pursuant to California Elections Code
section 9222, Government Code section 53724, Revenue and Taxation Code section
7285.9 and any other applicable requirements of the laws of the State of California
relating to the City, the City Council, by a two-thirds (2/3) vote of all members, hereby
orders the Measure to be submitted to the voters of the City at the General Municipal
Election to be held on Tuesday, November 5, 2024.
SECTION 3. The City Council, pursuant to California Elections Code section
9222, hereby orders that the ballot question for the Measure shall be presented and
printed upon the ballot submitted to the qualified voters in the manner and form set forth
in this Section 3. On the ballot to be submitted to the qualified voters at the General
Municipal Election to be held on Tuesday, November 5, 2024, in addition to any other
matters required by law, there shall be printed substantially the following ballot question:
" To provide funding for Arroyo Grande city services, such as: YES
fixing potholes, maintaining city streets, sidewalks, parks,
aging infrastructure, and community facilities; providing local
fire protection, police, and 9-1-1 emergency services; cleaning
up litter/graffiti, and addressing homelessness; shall City of NO
Arroyo Grande's ordinance establishing a one-cent sales tax
for 10 years be adopted, providing $6,000,000 annually for
general government use that can't be taken by the State, with
citizen oversight, independent audits, and all money locally
controlled?"
SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and
directed to procure and furnish any and all official ballots, printed matter and all supplies,
equipment and paraphernalia that may be necessary in order to properly and lawfully
conduct the election. In all particulars not recited in this Resolution, the election shall be
held and conducted as provided by law for holding municipal elections.
SECTION 5. Pursuant to Elections Code section 9280, the City Council hereby
directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City
Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in
length, showing the effect of the Measure on the existing law and the operation of the
RESOLUTION NO. 5367
PAGE 3
Measure, and transmit such impartial analysis to the City Clerk not later than the deadline
for submittal of primary arguments for or against the Measure.
The impartial analysis shall include a statement indicating whether the Measure
was placed on the ballot by a petition signed by the requisite number of voters or by the
City Council. In the event the entire text of the Measure is not printed on the ballot, nor in
the voter information guide, there shall be printed immediately below the impartial
analysis, in no less than 10-font bold type, the following: "The above statement is an
impartial analysis of Ordinance or Measure . If you desire a copy of the
ordinance or measure, please call the Office of the City Clerk at (805) 473-5418 and
a copy will be mailed at no cost to you."
SECTION 6. Notice of the election is hereby given and the City Clerk is authorized,
instructed and directed to give further or additional notice of the election, in time, form and
manner as required by law.
SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed
in the voter information guide, and a statement shall be printed on the ballot pursuant to
Elections Code section 9223 advising voters that they may obtain a copy of this Resolution
and the Measure, at no cost, upon request made to the City Clerk.
SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior
to the General Municipal Election to be held on Tuesday, November 5, 2024, file with the
Board of Supervisors and the Registrar of Voters of the County of San Luis Obispo, State of
California, a certified copy of this Resolution.
SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this
Measure will be available for public examination for no fewer than ten (10) calendar days
prior to being submitted for printing in the voter information guide. The City Clerk shall post
notice in the Clerk's office of the specific dates that the examination period will run.
SECTION 10. The City Council hereby finds and determines that the Measure relates
to organizational or administrative activities of governments that will not result in direct or
indirect physical changes in the environment, and therefore is not a project within the
meaning of the California Environmental Quality Act ("CEQA") and the State CEQA
Guidelines, section 15378(b)(5).
SECTION 11. Severability. The provisions of this Resolution are severable and if
any provision of this Resolution is held invalid, that provision shall be severed from the
Resolution and the remainder of this Resolution shall continue in full force and effect, and
not be affected by such invalidity.
SECTION 12. This Resolution shall become effective upon its adoption.
SECTION 13. The City Clerk shall certify to the adoption of this Resolution.
RESOLUTION NO. 5367
PAGE 4
On motion of Council Member George, seconded by Council Member Barneich, and on
the following roll call vote, to wit:
AYES: Council Members George, Barneich, Secrest, Guthrie, and Mayor Ray Russom
NOES: None
ABSENT: None
the foregoing Resolution was passed and adopted this 28th day of May, 2024.
RESOLUTION NO.
PAGE 5
Or,. A
ot ,
CARE RAY " •M, MAYOR
ATTEST:
g-s-/4,4,AL.cl-e-r-1. .4.-Ibta........1/4.
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
-41101101- -
MATTHEW DOWNING, CITY 0 . NAGER
APPROVED AS TO FORM:
IS ‘i', ROi
_,- .- AT _�RNEY
Exhibit "A"
Transactions and Use Tax Ordinance
[attached behind this page]
ORDINANCE NO.
AN ORDINANCE OF THE PEOPLE OF THE CITY OF ARROYO GRANDE,
CALIFORNIA, ADDING CHAPTER 3.26 TO TITLE 3 OF THE ARROYO GRANDE
MUNICIPAL CODE TO ENACT A ONE PERCENT (1%) GENERAL TRANSACTIONS
AND USE TAX (SALES TAX) TO BE ADMINISTERED BY THE CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, pursuant to California Revenue and Taxation Code section 7285.9 the
City of Arroyo Grande ("City") is authorized to levy a Transactions and Use Tax for
general purposes, subject to majority voter approval; and
WHEREAS, the People of the City desire add Chapter 3.26 to Title 3 of the Arroyo
Grande Municipal Code establishing a general Transactions and Use Tax ("sales tax")
until ended by voters, on the sale and/or use of all tangible personal property sold at
retail in the City, at a rate of one percent (1%).
NOW, THEREFORE, THE PEOPLE OF THE CITY OF ARROYO GRANDE
DO HEREBY ORDAIN AS FOLLOWS:
Section 1. Title and Text. This Ordinance shall be known as the "Arroyo Grande
General Transactions and Use Tax", the full text of which is set forth in Attachment "1",
attached hereto and incorporated herein by reference.
Section 2. Approval by the City Council. Pursuant to California Government Code
section 53724 and Revenue and Taxation Code section 7285.9, this Ordinance was
duly approved for placement on the ballot by a minimum two-thirds (2/3) supermajority
of all members of the City Council on May 28, 2024.
Section 3. Approval by the Voters. Pursuant to California Elections Code section
9217, this Ordinance shall be deemed adopted and take effect only if approved by a
majority of the eligible voters of the City of Arroyo Grande voting at the General
Municipal Election of November 5, 2024. It shall be deemed adopted when the City
Council has certified the results of that election by resolution and shall take effect ten
(10) days thereafter.
Section 4. Operative Date. "Operative Date" for the Transactions and Use Tax
means the first day of the first calendar quarter commencing more than 110 days after
the date this Ordinance is adopted, as set forth in Section 3 above.
Section 5. 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.
I HEREBY CERTIFY that the foregoing ordinance was adopted by a two-thirds vote of
all members of the City Council of the City of Arroyo Grande as required by Revenue
and Taxation Code Section 7285.9 and Government Code Section 53724 and
submitted to the voters at the meeting of the City Council held on the day of June,
2024, by the following roll call vote:
AYES:
NOES:
ABSENT:
CAREN RAY RUSSOM. MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
Ordinance No. was submitted to the People of the City of Arroyo Grande at the
November 5, 2024 General Election. It is hereby certified that this ordinance was passed
and approved by following vote of the People of the City of Arroyo Grande:
YES:
NO:
This ordinance was thereby adopted by the voters at the November 5, 2024 General
Election and shall take effect as provided by law.
ATTACHMENT 1
Chapter 3.23 — GENERAL TRANSACTIONS AND USE TAX
Sections:
3.23.010 - Title.
3.23.020 - Purpose.
3.23.030 - Contract With State.
3.23.040 - Transactions Tax Rate.
3.23.050 - Place of Sale.
3.23.060 - Use Tax Rate.
3.23.070 -Adoption of Provisions of State Law.
3.23.080 - Limitations on Adoption of State Law and Collection of Use Taxes.
3.23.090 - Permit Not Required.
3.23.100 - Exemptions and Exclusions.
3.23.110 -Amendments.
3.23.120 - Enjoining Collection Forbidden.
3.23.130 - Duration of Tax
Sections:
3.23.010 —Title.
This ordinance shall be known as the "City of Arroyo Grande General Transactions and
Use Tax Ordinance". The City of Arroyo Grande hereinafter shall be called "City." This
ordinance shall be applicable in the incorporated territory of the City.
3.23.020 — 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 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 operative 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 therefore that can be administered and collected by the California
Department of Tax and Fee Administration 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 California Department of Tax and Fee
Administration 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 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.
3.23.030 - Contract With State.
Prior to the operative date, the City shall contract with the California Department of Tax
and Fee Administration 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 California Department of Tax and Fee Administration 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.
3.23.040 - Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed
upon all retailers in the incorporated territory of the City at the rate of one percent (1%)
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.
3.23.050 - 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 California Department of Tax and Fee
Administration.
3.263060 - 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
percent (1%) 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.
3.23.070 - 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.
3.23.080 - 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 of California is named or referred to as the taxing agency, the
name of this City shall be substituted therefore. 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, California Victim Compensation Board, California Department of Tax
and Fee Administration, 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
California Department of Tax and Fee Administration, 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 reference to 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 of the Revenue and Taxation
Code and in the definition of that phrase in Section 6203.
1. "A retailer engaged in business in the District" shall also include any retailer that,
in the preceding calendar year or the current calendar year, has total combined
sales of tangible personal property in this state or for delivery in the State by the
retailer and all persons related to the retailer that exceeds five hundred thousand
dollars ($500,000). For purposes of this section, a person is related to another
person if both persons are related to each other pursuant to Section 267(b) of
Title 26 of the United States Code and the regulations thereunder.
3.23.090 - 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 Ordinance.
3.23.100 - 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 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 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 subparagraphs (3) and (4) of this subsection, 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. 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 subparagraphs (3) and (4) of this subsection, 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 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.
3.23.110 - 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.
3.23.120 - 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.
3.23.130 — Duration of Tax.
The tax imposed by this chapter shall continue for ten (10) years from the Operative
Date and shall, thereafter be automatically repealed, unless extended by Arroyo Grande
voters in a subsequent election.
OFFICIAL CERTIFICATION
I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 5367 was passed and adopted at a regular meeting of the City Council
of the City of Arroyo Grande on the 28th day of May, 2024.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 31St day of
May, 2024.
J SSICA MATSON, CITY CLERK