R 3939
RESOLUTION NO. 3939
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE ORDERING THE SUBMISSION TO THE QUALIFIED
ELECTORS OF THE CITY A MEASURE AND FOUR ADVISORY
MEASURES RELATING TO THE ESTABLISHMENT OF A LOCAL
TRANSACTIONS AND USE TAX (SALES TAX) AT THE GENERAL
ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7, 2006, AS
CALLED BY RESOLUTION NO. 3925
WHEREAS, on October 6, 1997, Assembly Bill 14 72 became law, adding Chapter 2.93
(commencing with Section 7286.52) to Part 1.7 of Division 2 of the Revenue and
Taxation Code; and
WHEREAS, Assembly Bill 1472 authorizes the City of Arroyo Grande (hereinafter "the
City"), subject to approval by a majority vote of the qualified voters of the City voting in
an election on the issue, to levy a transactions and use tax pursuant to the Transactions
and Use Tax Law at a rate of 0.25% or 0.5%, for general revenue purposes; and
WHEREAS, Section 2(b) of Article XIII C of the California Constitution, added by
Proposition 218, effective November, 1996, requires that a measure proposing a
general tax be submitted to the voters at an election consolidated with a regularly
scheduled general election for members of the governing body of the local government;
and
WHEREAS, a General Municipal Election to be held in the City on Tuesday, November
7, 2006, for the election of certain officers of the City has been called per Resolution No.
3925; and
WHEREAS, a request for consolidating the General Municipal Election with the
Statewide General Election on November 7, 2006 has been called by Resolution No.
3926; and
WHEREAS, pursuant to California Constitution Article XIII C, Section 2(b) and Elections
Code Section 10201, the City has determined to submit a rneasure to the voters to
enact an ordinance establishing a transactions and use tax at the City's next regular
consolidated general municipal election; and
WHEREAS, the City Council also desires to submit to the voters four advisory
measures relating to the establishment of a local transactions and use tax; and
NOW, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows:
SECTION 1. That the City Council, pursuant to its right and authority, does order
submitted to the voters at the General Municipal Election the following questions:
RESOLUTION NO. 3939
PAGE 2
CITY OF ARROYO GRANDE
ADVISORY MEASURE K-06
YES
Advisory Vote Only
If the proposed sales tax measure
(Measure 0-06) is approved, should a
portion of the proceeds be used to fund
transportation improvements, including, NO
but not limited to, upgrade of the Brisco
Road/Halcyon Road - Highway 101
Interchange?
CITY OF ARROYO GRANDE
ADVISORY MEASURE L-06
Advisory Vote Only
If the proposed sales tax measure
(Measure 0-06) is approved, should a
portion of the proceeds be used to fund
maintenance and upgrade of the City's
infrastructure, including, but not limited
to, street maintenance and
improvements, upgrade of the drainage
system, and projects to prevent
pollution, erosion and sedimentation in
the creek system from storm water
runoff?
YES
NO
CITY OF ARROYO GRANDE
ADVISORY MEASURE M-06
YES
Advisory Vote Only
If the proposed sales tax measure
(Measure 0-06) is approved, should a
portion of the proceeds be used to fund
public safety expenses, including, but NO
not limited to, expansion of the Police
Station, purchase of Fire apparatus, and
additional Fire Department staffing?
RESOLUTION NO. 3939
PAGE 3
CITY OF ARROYO GRANDE
ADVISORY MEASURE N-06
Advisory Vote Only YES
If the proposed sales tax measure
(Measure 0-06) is approved, should a
portion of the proceeds be used to fund
improvements to City facilities to meet
Federal Americans with Disabilities Act NO
(ADA) requirements, including, but not
limited to, upgrade of the City Hall
Complex?
CITY OF ARROYO GRANDE
MEASURE 0-06
Shall an Ordinance be adopted enacting YES
a one half cent sales tax to fund
community needs, with a requirement to
publish and distribute an annual report
to each household on the revenues and
expenditures from the proceeds, and
requiring a review and public hearing by NO
the City Council every five years to
determine whether it is necessary for
the sales tax to remain in effect?
SECTION 2. That the full text of the measure is attached hereto as Exhibit "A" and
incorporated herein by this reference.
SECTION 3. That in all particulars not recited in this Resolution, the election shall be
held and conducted as provided by law for holding municipal elections.
SECTION 4. That notice of the time and place of holding the election is given and the
City Clerk is authorized, instructed, and directed to give further or additional notice of
the election, in the time, form and manner as required by law.
SECTION 5. That Resolution No. 3933, adopted on June 27, 2006, is hereby repealed
in its entirety.
SECTION 6. That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
RESOLUTION NO. 3939
PAGE 4
On motion by Council Member Arnold, seconded by Council Member Dickens, and on
the following role call vote, to wit:
AYES:
NOES:
ABSENT:
Council Members Arnold, Dickens, Costello, Guthrie, and Mayor Ferrara
None
None
the foregoing Resolution was passed and adopted this 25th day of July, 2006.
RESOLUTION NO. 3q39
PAGE 5
TONY~ER~ ~
ATTEST:
APPROVED AS TO CONTENT:
, ~/~:2'
.---- ~--
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
L, CITY ATTORNEY
EXHIBIT A
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF ARROYO GRANDE ADDING
CHAPTER 3.22 TO TITLE 3 OF THE ARROYO GRANDE MUNICIPAL
CODE ESTABLISHING A TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE STATE BOARD OF EQUALIZATION
BE IT ORDAINED BY THE VOTERS OF THE CITY OF ARROYO GRANDE, AS
FOLLOWS:
SECTION 1. AMENDMENT OF CODE.
Arroyo Grande Municipal Code Title 3 is hereby amended to add Chapter 3.22 to
read as follows:
CHAPTER 3.22. TRANSACTIONS AND USE TAX.
3.22.010. TITLE.
This ordinance shall be known as the "Transactions and Use Tax Ordinance of the
City of Arroyo Grande". The City of Arroyo Grande hereinafter shall be called "City."
This ordinance shall be applicable in the incorporated territory of the City.
3.22.020. 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 Califomia
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 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 Califomia 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.
ORDINANCE NO.
PAGE 2
3.22.030. OPERATIVE DATE.
"Operative Date" means the first day of the first calendar quarter commencing more
than 110 days after the adoption of this ordinance, the date of such adoption being as
set forth below.
3.22.040. CONTRACT WITH STATE.
Prior to the operative date, the City shall contract with the State Board of
Equalization tei perform all functions incident to the administration and operation of this
transactions and use tax ordinance; provided, that if the City shall not have contracted
with the State Board of Equalization prior to the operative date, it shall nevertheless so
contract and in such a case the operative date shall be the first day of the first calendar
quarter following the execution of such a contract.
3.22.050. 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 .5% of
the gross receipts of any retailer from the sale of all tangible personal property sold at
retail in the City on and after the operative date of this ordinance.
3.22.060. PLACE OF SALE.
For the purposes of this ordinance, all retail sales are consummated at the place of
business of the retailer unless the tangible personal property sold is delivered by the
retailer or his agent to an out-of-state destination or to a common carrier for delivery to
an out-of-state destination. The gross receipts from such sales shall include delivery
charges, when such charges are subject to the state sales and use tax, regardless of
the place to which delivery is made. In the event a retailer has no permanent place of
business in the State or has more than one place of business, the place or places at
which the retail sales are consummated shall be determined under rules and
regulations to be prescribed and adopted by the State Board of Equalization.
3.22.070. 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 .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.
3.22.080. 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.
ORDINANCE NO.
PAGE 3
3.22.090. 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, State Board of Control, State Board of Equalization, State Treasury, or
the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or
against this City or any agency, officer, or employee thereof rather than by or against
the State Board of Equalization, in performing the functions incident to the
administration or operation of this Ordinance.
3. In those sections, including, but not necessarily limited to sections
referring to the exterior boundaries of the State of California, where the result of the
substitution would be to:
a. Provide an exemption from this tax with respect to certain sales,
storage, use or other consumption of tangible personal property which would not
otherwise be exempt from this tax while such sales, storage, use or other consumption
remain subject to tax by the State under the provisions of Part 1 of Division 2 of the
Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other
consumption of tangible personal property which would not be subject to tax by the
state under the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711,
6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word "City" shall be substituted for the word "State" in the phrase
"retailer engaged in business in this State" in Section 6203 and in the definition of that
phrase in Section 6203.
3.22.100. 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.
ORDINANCE NO.
PAGE 4
3.22.110. 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 section, the
sale or lease of tangible personal property shall be deemed not to be obligated
pursuant to a contract or lease for any period of time for which any party to the contract
. or lease has the unconditional right to terminate the contract or lease upon notice,
whether or not such right is exercised.
ORDINANCE NO.
PAGE 5
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 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 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
ORDINANCE NO.
PAGE 6
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.
3.22.120. 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.
3.22.130. 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.
3.22.140. ANNUAL REPORT.
City shall annually mail to each household an annual report, which presents in
summary form expenditures from the prionfiscal year from revenue generated from the
Transactions and Use Tax and budgeted expenditures for the upcoming fiscal year.
3.22.150. PERIODIC REVIEW.
The City Council shall consider reduction or repeal of the Transactions and Use Tax
at public hearings every five years after the effective date of this ordinance.
SECTION 2. USE OF TAX PROCEEDS.
All proceeds of the tax levied and imposed hereunder shall be accounted for and
paid into the City of Arroyo Grande General Fund, and may be used for any lawful
purpose as designated by the City Council.
SECTION 3. 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.
SECTION 4. STATUTORY AUTHORITY FOR TAX.
This ordinance is adopted pursuant to Revenue and Taxation Code section 7285.9.
SECTION 5. ELECTION REQUIRED.
This ordinance shall not become operative unless and until a majority of the electors
voting on this measure vote to approve the imposition of the tax at the general
municipal election to be held on November 7,2006.
ORDINANCE NO.
PAGE 7
SECTION 6. EFFECTIVE DATE.
If this ordinance is approved by a majority of the electors voting on the issue at the
November 7, 2006 general municipal election, pursuant to Elections Code Section
9217, the tax shall become effective ten (10) days after the City Council accepts the
certified results of the election.
On motion by Council Member
and on the following roll call vote:
, seconded by Council Member
AYES:
NOES:
ABSENT:
the foregoing Ordinance was passed and adopted this _ day of July 2006.
PASSED AND ADOPTED by the Voters of the City of Arroyo Grande on November 7,
2006 by the following vote:
AYES:
NOES:
ORDINANCE NO.
PAGE 8
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that Resolution
No. 3939 is a true, full, and correct copy of said Resolution passed and adopted at a
regular meeting of the City Council/Redevelopment Agency of the City of Arroyo Grande
on the 25th day of July 2006.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 26th day of
July 2006.
>/1JL-.
RE, CITY CLERK