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HomeMy WebLinkAbout2006-068 RESOLUTION NO 2006-068 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 7, 20069 FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES AND FOR THE SUBMISSION TO THE VOTERS QUESTIONS RELATING TO INCREASED SALES TAX WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 7, 2006, for the election of Municipal Officers, and WHEREAS, the City Council also desires to submit to the voters at the election questions relating to increased sales tax, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS SECTION 1 That pursuant to the requirements of the laws of the State of California err relating to General Law Cities, there is called and ordered to be held in the City of Atascadero, California on Tuesday, November 7, 2006, a General Municipal Election for the purpose of electing two Members of the City Council for the full term of four years, a City Clerk for the full term of four years, and a City Treasurer for the full term of four years. SECTION 2 That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question BALLOT MEASURE # ATASCADERO PUBLIC SERVICES PRESERVATION MEASURE Yes Shall the City of Atascadero enact a one-half cent sales tax for a period of six years to help preserve the safety and character of Atascadero, by funding essential services such as road maintenance, fire/police services, and other general governmental purposes, requiring a published annual report on No General Fund expenditures, and requiring a public hearing by the City Council every three years to determine whether the tax is still necessary? SECTION 3 That the proposed complete text of the Ordinance submitted to the voters is attached as Exhibit A. City of Atascadero Resolution No.2006-068 Page 2 of 9 SECTION 4 That the ballots to be used at the election shall be in form and content as required by law SECTION 5 That the City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 6 That the polls for the election shall be open at seven o'clock a.m. of the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, except as provided in § 14401 of the Elections Code of the State of California. SECTION 7 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 8 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 time, form and manner as required by law SECTION 9 That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions On motion by Council Member Pacas and seconded by Council Member Clay, the foregoing Resolution is hereby adopted on the following roll call vote AYES Council Members Clay, Luna, Pacas and Mayor O'Malley NOES None ABSENT One vacancy ADOPTED June 27, 2006 ATTEST CI Y-QF ATAS RO M94&,1, M Vtc 4�m� Marcia McClure Torgerson, C.M C ity Clerk Tom O'Malley, Mayor APPROVE AS TU Rl Patrj L. E g ` ity Attorney City of Ataseadero Resolution No.2006-068 Page 3 of 9 Exhibit A DRAFT ORDINANCE AN ORDINANCE OF THE CITY OF ATASCADERO ADDING CHAPTER 3-16 TO TITLE 3 OF THE ATASCADERO MUNICIPAL CODE RELATING TO A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION The City Council of the City of Atascadero ordains as follows Section 1 Authority. The City Council enacts this ordinance in accordance with the authority granted to cities by Article XI, Section 7, of the California Constitution. Section 2 Addition of Chapter. Chapter 3-16 is hereby added to Title 3 of the Atascadero Municipal Code. Section 3-16 01 TITLE, CITY AND TERRITORY. This Chapter shall be known as the City of Atascadero Transactions and Use Tax Ordinance The City of Atascadero hereinafter shall be called "City " This ordinance shall be applicable in the incorporated temtory of the City Section 3-16 02 OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the later of the adoption of this ordinance and chapter, the date of such adoption being as set forth below, and the approval of the voters of the City of a measure approving the imposition of the transaction and use tax set forth herein, provided that if the City shall not have entered into a contract with the State Board as required herein prior to such date, the Operative date shall be the first day of the first calendar quarter following execution of such a contract. Section 3-16 03 PURPOSE. The purpose of this chapter is 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 qualified voters of the City 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. City of Atascadero Resolution No.2006-068 Page 4 of 9 Exhibit A 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 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 Section 3-16 04 CONTRACT WITH STATE. Prior to the Operative Date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this 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. Section 3-16 05 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 half of one percent (0 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 VOW Section 3-16 06 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. Section 3-16 07 USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the incorporated territory of 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 the City at the rate of one-half of one percent (0 5%) of the sales price of the property The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made Section 3-16 08 ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance and Chapter and except insofar as they are inconsistent with the provisions of Part 1 6 of Division 2 of the Revenue and Taxation Code, all of the provisions City of Atascadero Resolution No.2006-068 Page 5 of 9 Exhibit A 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 and Chapter as though fully set forth herein. Section 3-16 09 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 Section 3-16 10 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. Section 3-16 11 EXEMPTIONS AND EXCLUSIONS. City of Ataseadero Resolution No.2006-068 Page 6 of 9 Exhibit A 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 Chapter 2 of 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 penury, 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 penury, 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 subsections (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. 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• City of Atascadero Resolution No.2006-068 Page 7 of 9 Exhibit A 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 subsections (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 Chapter 2 of 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 City of Atascadero Resolution No.2006-068 Page 8 of 9 Exhibit A Section 3-16 12 PUBLIC HEARING. The City Council shall receive an annual report and shall hold a public hearing three years after the Operative Date to determine if the sales tax is necessary The Council shall review the annual report on the General Fund, annual collection of sales tax pursuant to this Chapter, and the annual expenditure of funds collected from the sales tax The Council shall also review and consider the projected annual collection of sales tax and the projected expenditures for the next three years Section 3-16 13 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 16 and Part 1 7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 16 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 Section 3-16 14 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 16 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. Section 3-16 15 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 3-1616 EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect upon the Operative Date and shall be published within 15 days after adoption by the City Council in a paper of general circulation published and circulated within the City of Atascadero Section 3-16 17 TERMINATION DATE The authority to levy the tax imposed by this ordinance shall expire six years from the Operative Date of this ordinance. City of Atascadero Resolution No.2006-068 Page 9 of 9 Exhibit A INTRODUCED at a regular meeting of the City Council held on and PASSED and 1%✓ ADOPTED by the City Council of the City of Atascadero, State of California, on by the following roll call vote AYES NOES ABSTAIN ABSENT ATTEST CITY OF ATASCADERO Marcia McClure Torgerson, C.M C , Tom O'Malley, Mayor City Clerk APPROVED AS TO FORM Patrick L. Enright, City Attorney