CC 2024-05-28_12a Local Transactions_Use Tax 2024 Ballot
MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Public Works Director
Nicole Valentine, Administrative Services Director
Jessica Matson, Legislative & Information Services Director/City Clerk
SUBJECT: Consider
Measure on the November 5, 2024 Ballot
DATE: May 28, 2024
RECOMMENDATION:
1) Adopt the proposed Resolution ordering the submission to the qualified electors of the
City a measure relating to the establishment of a local transactions and use tax
(hereinafter referred to as a "sales tax") at the General Municipal Election to be held on
Tuesday, November 5, 2024, as called by Resolution;
2) Adopt the proposed Ordinance adding Chapter 3.23 to Title 3 of the Arroyo Grande
Municipal Code regarding a transactions and use tax (to ultimately be considered for
approval by the voters);
3) Adopt the proposed Resolution setting priorities for filing a written argument regarding
a City measure and directing the City Attorney to prepare an impartial analysis of the
measure;
4) Adopt the proposed Resolution requesting consolidation with the County of San Luis
Obispo General Municipal Election to be held on Tuesday, November 5, 2024;
5) Appoint two members of the Council to serve on an ad-hoc committee for creation of
the argument to be submitted in favor of the measure; and
6) Determine that adopting the Resolutions and Ordinance 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 Environme
15378(b)(5).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
If approved by the voters, the proposed sales tax measure would generate approximately
$6 million in additional annual revenue. As a general tax, the proceeds would be
deposited into the General Fund and may be used for any lawful purpose, as designated
by the City Council, including being allocated towards City services including fixing
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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. Funding for the November 2024 General
Municipal Election has been included in the Biennial Budget for Fiscal Years 2024-25 in
the amount of $55,000 and is anticipated to cover costs associated with printing the ballot
measure in the Sample Ballot booklet.
BACKGROUND:
At the March 2, 2023, Special City Council Meeting, the City Council established four (4)
major City goals for staff to prioritize for the FY 2023-25 Biennial Budget. The goals were
established considering the results of a community survey and input from the public and
staff. The four major goals are:
Funding
Support a thriving community through fiscal responsibility, economic
development efforts, and additional and alternative revenue streams.
Fire Services
Implement operational and fire and emergency service delivery
improvements through the Five Cities Fire Authority and complete the
transition of services to Oceano due to its exit from the Authority.
Infrastructure
Invest in and complete critical infrastructure projects throughout the City
through the strategic prioritization of projects based on available resources.
General Plan Update
Prioritize and complete major work efforts for the comprehensive General
Plan update to provide a vision and framework for future development within
the City.
On June 13, 2023, the City Council authorized the publishing of a Request for Proposals
(RFP) for Voter Opinion Polling and Public Education and Outreach Services. On August
22, 2023, the City Council approved a professional services agreement with Clifford Moss
and True North Research for these services. Voter Opinion Polling was conducted in
November and December 2023. On January 9, 2024, the City Council reviewed the
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polling results summary report from True North Research and directed staff to continue
working with the consultant on a potential future revenue measure.
Grande, a Community Priorities Survey was mailed to all Arroyo Grande households on
February 22, 2024. The mailer included a tear-off response card as well as an online
option for completing the survey. To encourage resident participation, video and still ads
were developed and placed on various online platforms driving viewers to the online
version of the survey.
On April 23, 2024, the City Council reviewed the Community Priorities Survey Results.
As of May 23, 2024, the City received 1,509 responses to the Community Survey 488
written and 1,021 online. Over 400 personal comments were also provided with the
responses.
On average, the top three priorities, as ranked by Arroyo Grande residents responding to
the survey, were as follows:
1. Maintain fire protection services;
2. Maintain 911 response and emergency police services; and
3. otholes and
damaged sidewalks.
The top three priorities were calculated by taking the sum of each selection and dividing
it by the number of responses received for that category. Categories with the lowest
averages reflect the more important issues to the community members who responded.
1.
damaged sidewalks;
2. Maintain 911 response and emergency police services; and
3. Maintain fire protection and paramedic services.
received.
On May 14, 2024, the City Council received a presentation regarding financing options
related to the top three community priorities and directed staff to bring back an item for
consideration to place a one-
10-year sunset, on the November 5, 2024 ballot.
ANALYSIS OF ISSUES:
The City Council ha
opportunities to increase revenue in the face of rising costs. The revenue from a new one-
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cent local sales tax measure would be deposited into the General Fund and may be used
for any lawful purpose, as designated by the City Council, and could be allocated towards
City services, such as: 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. If
approved, the proposed sales tax measure would generate approximately $6 million
annually and is intended to augment the existing Measure O 2006 Sales Tax fund created
in 2006.
through December 2023 actual sales tax revenues received and to discuss projections
for the remaining fiscal year. The Consultant provided Measure O 2006 projections for
FY 2023-24, which are now expected to be $2,955,000. City staff have included language
in the ballot question to reflect an estimated $6 million ($2,955,000 x 2 =$5,910,000) in
additional revenue to the City if the voters approve the measure.
Funding received from a new sales tax measure could allow the City to expand its Capital
Improvement Projects (CIP) and public facility maintenance funds including the Fire
Service, the Police Department and the Streets Infrastructure Maintenance, as well as
provide funds for other City programs and facilities.
Structure of the Sales Tax Measure
Following discussion at the May 14, 2024 meeting, the Council provided feedback and
direction regarding a proposed one-cent (1%) general sales tax measure to address the
of City services, such as: 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. The Council also directed staff to include a 10-year sunset
clause in the ballot measure language.
In order to place a tax measure on the November 5, 2024, ballot, a 2/3 vote of the City
Council (at least 4 members) must approve the proposed Resolutions and Ordinance.
Revenue and Taxation Code Section 7285.9 authorizes the City to increase a
transactions and use tax for general purposes, and provides that the ordinance proposing
the tax is to be approved by a two-thirds vote of all members of that governing body and
the tax also has to be approved by a majority vote of the qualified voters of the City voting
in an election on the issue. Likewise, for general taxes, Government Code Section
53724(b) provides that the ordinance or resolution proposing the tax has to be approved
by a 2/3rd vote of the legislative body.
The proposed measure includes provisions for citizen review of reported revenue and
expenditures to establish accountability and transparency. The proposed measure also
includes a 10-year sunset clause in the ballot language. This clause requires the City
Council to come back to the voters in order to renew the measure in the future.
Item 12.a.
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Accordingly, the following language has been developed for the ballot measure, which is
limited to 75 words:
To provide funding for Arroyo Grande city services, such as: 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
-
cent sales tax for 10 years be adopted, providing $6,000,000 annually for
be taken by the State, with citizen
oversight, independent audits, and all money locally controlled?
Delegation of the Argument in Favor
In prior elections, the City Council has served as the signatory on Arguments in Favor for
a ballot measure. The Attorney and the
the Argument in Favor for this measure be developed by a City Council ad-hoc committee
and members of the community. Two members of the City Council may serve on this
limited-term, limited-scope committee and not be subject to Brown Act provisions. The
Elections Code allows no more than five signatures on the Argument, and the City Council
delegate would have one signature, with the remaining four signatures from community
members. This Argument would then be submitted to the City Clerk by July 19, 2024, in
accordance with the Elections Code.
The proposed Ordinance and Resolutions have been prepared and are included with this
report for consideration (Attachments 1-3). It is recommended the Council adopt the
Ordinance, adopt the Resolutions as presented for placement on the November 5, 2024,
ballot, and appoint two members of the Council to serve on an ad-hoc committee for the
development of an Argument in Favor.
ALTERNATIVES:
1. Adopt the Resolutions, the Ordinance pertaining to the placement of a ballot
measure on the November 5, 2024, ballot, and appoint two councilmembers to
serve on an ad-hoc committee;
2. Adopt the Resolutions, the Ordinance pertaining to the placement of a ballot
measure on the November 5, 2024, ballot, and do not appoint two councilmembers
to serve on an ad-hoc committee;
3. Modify and adopt the Resolutions, the Ordinance, and appoint two
councilmembers to serve on an ad-hoc committee;
4. Modify and adopt the Resolutions, the Ordinance, and do not appoint two
councilmembers to serve on an ad-hoc committee; or
5. Provide other direction to staff.
Item 12.a.
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ADVANTAGES:
Adoption of the proposed Resolutions and Ordinance will meet the provisions required by
the California Elections, Revenue and Taxation, and Government Codes for submitting
to the voters a measure relating to the establishment of a local sales tax in the City.
Additionally, appointing two councilmembers to an ad-hoc committee for the development
of an Argument in Favor will allow for this process to be driven by community involvement
with Council participation.
DISADVANTAGES:
There are no identified disadvantages related to adopting the Resolutions Ordinance as
they are required by State law in order to place a measure on the ballot.
ENVIRONMENTAL REVIEW:
Adopting the Resolutions and Ordinance 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
15378(b)(5).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda
Government Code Section 54954.2. A notice regarding the placement of a measure on
the November 2024 ballot will be published pursuant to the timeline prescribed by the
Elections Code.
ATTACHMENTS:
1. Proposed Resolution Ordering the Submission to Electors
2. Proposed Resolution Setting Priorities for Filing Arguments
3. Proposed Resolution Consolidation with the County
Item 12.a.
ATTACHMENT 1
RESOLUTION NO.
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
sales tax
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
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
Municipal Code; and
WHEREAS, the one cent (1¢) sales tax is a general tax, the revenue of
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
RESOLUTION NO.
PAGE2
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 approval, collection and use of the general sales tax are described and
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
YES
as: 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
NO
establishing a one-cent
sales tax for 10 years be adopted, providing $6,000,000
the State, with citizen oversight, independent audits, and all
money locally controlled?
SECTION 4. Conduct of Election. The City Clerk is authorized,
RESOLUTION NO.
PAGE3
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 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:
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
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
that the examination period will run.
RESOLUTION NO.
PAGE4
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
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.
On motion of Council Member _____________, seconded by Council Member
__________, and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
th
the foregoing Resolution was passed and adopted this 28 day of May, 2024.
RESOLUTION NO.
PAGE5
CAREN RAY RUSSOM, MAYOR
ATTEST:
_________________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
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 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 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
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. 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
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 Administrationin 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. e 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. citystate
engaged in business in this state of the Revenue and Taxation
Code and in the definition of that phrase in Section 6203.
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.
mit has been issued to a retailer under Section 6067 of the Revenue and
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.
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.
ATTACHMENT 2
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE, CALIFORNIA, PROVIDING FOR THE FILING OF PRIMARY
AND REBUTTAL ARGUMENTS AND SETTING RULES FOR THE
FILING OF WRITTEN ARGUMENTS REGARDING A CITY MEASURE
TO BE SUBMITTED AT THE NOVEMBER 5, 2024 GENERAL
MUNICIPAL ELECTION
WHEREAS, a General Municipal Election is to be held in the City of Arroyo Grande,
California on November 5, 2024, at which there will be submitted to the voters the
following measure:
To provide funding for Arroyo Grande city services, such as:
fixing potholes, maintaining city streets, sidewalks, parks, Yes
aging infrastructure, and community facilities; providing local
fire protection, police, and 9-1-1 emergency services; cleaning
No
up litter/graffiti, and addressing homelessness; shall City of
-cent sales tax
for 10 years be adopted, providing $6,000,000 annually for
citizen oversight, independent audits, and all money locally
controlled?
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. Primary Arguments. That the City Council authorizes (i) the City Council
or any member(s) of the City Council, (ii) any individual voter eligible to vote on the
above measure, (iii) a bona fide association of such citizens or (iv) any combination of
voters and associations, to file a written argument in favor of or against the City
measure, accompanied by the printed name(s) and signature(s) of the author(s)
submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of
the State of California, and to change the argument until and including the date fixed
below by the City Clerk, after which no arguments for or against the City measure may
be submitted to the City Clerk.
The deadline to submit arguments for or against the City Measure pursuant to this
Resolution is declared by the City Clerk to be July 19, 2024, at 5 p.m. Each argument
shall not exceed 300 words and shall be filed with the City Clerk, signed, and include
the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on
behalf of an organization, the name of the organization, and the printed name and
signature of at least one of its principal officers who is the author of the argument.
RESOLUTION NO.
PAGE 2
Section 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of
the State of California, when the City Clerk has selected the primary arguments for and
against the City Measure which will be printed and distributed to the voters, the Clerk
shall send copies of the primary argument in favor of the Measure to the authors of the
primary argument against, and copies of the primary argument against to the authors of
the primary argument in favor. The authors or persons designated by them may
prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal
arguments shall be filed with the City Clerk not later than July 30, 2024, at 5 p.m.
Rebuttal arguments shall be printed in the same manner as the primary arguments.
Each rebuttal argument shall immediately follow the primary argument which it seeks to
rebut.
Section 3. Prior Resolutions. That all previous resolutions providing for the filing of
primary and rebuttal arguments related to City measures are repealed.
Section 4. November 5, 2024 Election. That the provisions of Sections 1 and 2
shall apply only to the election to be held on November 5, 2024, and shall then be
repealed.
Section 5. Certification. The City Clerk shall certify to the passage and adoption of
this resolution and enter it into the book of original Resolutions.
On motion of Council Member _____________, seconded by Council Member
__________, and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
th
the foregoing Resolution was passed and adopted this 28 day of May, 2024.
2
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
_________________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
3
ATTACHMENT 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE, CALIFORNIA, REQUESTING THE BOARD OF
SUPERVISORS OF THE COUNTY OF SAN LUIS OBISPO TO
CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON
NOVEMBER 5, 2024 WITH THE STATEWIDE GENERAL ELECTION TO
BE HELD ON THAT DATE PURSUANT TO §10403 OF THE
ELECTIONS CODE
WHEREAS, on May 28, 2024, the City Council of the City of Arroyo Grande
adopted Resolution No. ____, calling a General Municipal Election to be held on
November 5, 2024; for the purpose of submitting to the voters the question relating to
the General Transactions and Use Tax; and
WHEREAS, it is therefore 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 election division of the County of San Luis Obispo canvass the
returns of the General Municipal Election and that the election be held in all respects as
if there were only one election.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Request for Consolidation. Pursuant to the requirements of
§10403 of the Elections Code, the Board of Supervisors of the County of San Luis
Obispo is hereby requested to consent and agree to the consolidation of a General
Municipal Election with the Statewide General Election on Tuesday, November 5, 2024,
for the purpose of submitting to the voters the following question relating to the
Transactions and Use Tax.
Section 2. Measure Language. A measure is to appear on the ballot as
follows:
To provide funding for Arroyo Grande city services, such as:
fixing potholes, maintaining city streets, sidewalks, parks, Yes
aging infrastructure, and community facilities; providing local
fire protection, police, and 9-1-1 emergency services; cleaning
No
up litter/graffiti, and addressing homelessness; shall City of
establishing a one-cent sales tax
for 10 years be adopted, providing $6,000,000 annually for
citizen oversight, independent audits, and all money locally
controlled?
RESOLUTION NO.
PAGE 2
Section 3. Canvass of Returns. The County election division is authorized to
canvass the returns and perform all other proceedings incidental to and connected with
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. Pursuant to California
Elections Code Sections 10403 and 10418, the election will be held and conducted in
accordance with the provisions of law regulating the Statewide General Election.
Section 4. Necessary Steps. The Board of Supervisors is requested to issue
instructions to the County election division to take any and all steps necessary for the
holding of the consolidated election.
Section 5. Costs. The City Council determines and declares that the City will
pay to the County the reasonable and actual expenses incurred by the County by the
consolidation of the General Municipal Election with the Statewide General Election.
The City shall reimburse the County for services performed when the work is completed
and upon presentation to the City of a properly approved bill. The City Manager of the
City of Arroyo Grande is authorized and directed to pay for the expenses incurred after
receiving a statement from the County of San Luis Obispo.
Section 6. Filing of Resolution. The City Clerk is hereby directed to file a
certified copy of this resolution with the Board of Supervisors and the election division of
the County of San Luis Obispo.
Section 7. Certification. The City Clerk shall certify to the passage and
adoption of this Resolution and enter it into the book of original Resolutions.
On motion of Council Member _____________, seconded by Council Member
__________, and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
th
the foregoing Resolution was passed and adopted this 28 day of May, 2024.
2
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
_________________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
3