HomeMy WebLinkAboutResolution 2020-057P"
RESOLUTION NO. 2020-057
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, APPROVING SUBMISSION OF DRAFT
ORDINANCE AMENDING TITLE 3 OF THE ATASCADERO
MUNICIPAL CODE TO ADD CHAPTER 18 "ESSENTIAL SERVICES
TRANSACTIONS AND USE TAX" AND BALLOT MEASURE TEXT
RELATING TO INCREASED SALES TAX TO THE QUALIFIED
ELECTORS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION
TO BE HELD ON TUESDAY, NOVEMBER 3, 20209
AS CALLED BY RESOLUTION NO. 2020-051
WHEREAS, under the provisions of the laws relating to general law cities in the State of
California, the City Council did previously call a General Municipal Election to be held on
November 3, 2020, for the election of Municipal Officers in Resolution No. 2020-051; and
WHEREAS, the City Council proposes to increase the sales tax rate in the City to fund,
enhance, and maintain important City services, with the rate set at one percent; and
WHEREAS, pursuant to California Revenue & Taxation Code Sections 7251 et seq. and
7285.9, the City of Atascadero ("City") is authorized to levy a Transactions and Use Tax (sales
tax) for general purposes, subject to voter approval; and
WHEREAS, the City Council desires to levy a Transaction and Use Tax for general
purposes, to be known as the "Essential Services Transactions and Use Tax'; and
WHEREAS, the Essential Services Transactions and Use Tax cannot be imposed without
voter approval; and
WHEREAS, the City Council desires to submit the Essential Services Transactions and
Use Tax measure to the voters of the City at the General Municipal Election to be held on Tuesday,
November 3, 2020, and to be consolidated with any other election to be held on that date.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of
Atascadero:
SECTION 1. The City Council hereby finds and determines that the foregoing recitals are
true and correct.
SECTION 2. The City Council hereby proposes the Essential Services Transaction and
Use Tax more completely described in the Ordinance attached hereto as Attachment "A" and
incorporated herein by reference.
n SECTION 3. That pursuant to the requirements of the laws of the State of California
relating to General Law Cities, there is called and ordered to be held in the City of Atascadero,
California on Tuesday, November 3, 2020, a General Municipal Election for the purpose of
submitting to the voters a question relating to increased sales tax.
City of Atascadero
Resolution No. 2020-057
Page 2 of 3
SECTION 4. As set forth in Resolution Nos. 2020-051 and 2020-052, adopted on ^
June 23, 2020, the City Council of the City of Atascadero has ordered an election to be called and I
consolidated with any and all elections also called to be held on November 3, 2020 insofar as said
elections are to be held in the same territory or in territory that is in part the same as the territory
of the City of Atascadero, and has requested that the Board of Supervisors of the County of San
Luis Obispo order such consolidation under Elections Code Sections 10401 and 10403.
SECTION 5. That the City Council, pursuant to its right and authority, does order
submitted to the voters at the General Municipal Election the following question:
To provide funding for fire protection, paramedics, and 911 emergency Yes
response, police, crime prevention and investigations, maintenance of
parks, public facilities and infrastructure, graffiti removal, and
recreation, community services, and other general city services in the
City of Atascadero, shall an ordinance establishing a one -percent
sales tax be adopted, providing approximately 4.5 million dollars No
annually for city services until ended by voters, with annual
independent audits ensuring money is spent properly, and all money
locally controlled?
SECTION 6. That the proposed complete text of the measure (Ordinance) submitted to
the voters is attached as Exhibit A to Attachment A.
SECTION 7. That pursuant to Article XIII C of the Constitution, this measure requires
approval by a majority (50% + 1) of the votes cast.
SECTION 8. 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 9. 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 10. The City Council authorizes the City Clerk to administer said election and
all reasonable and actual election expenses shall be paid by the City upon presentation of a properly
submitted bill.
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SECTION 11. This Resolution is exempt from the California Environmental Quality Act
(CEQA), Public Resources Code Section 21000 et seq., because it can be seen with certainty that
there is no possibility that the adoption of this Resolution would have a significant effect on the
environment (Pub. Resources Code § 21065; CEQA Guidelines §§ 15378(b)(4), 15061(b)(3)) and ^
because the Resolution involves the possible approval of government revenues to fund existing I
services (Pub. Resources Code § 21080, subd. (b)(8); CEQA Guidelines § 15273(a)(4)) it does not
make any commercial activity lawful nor commit the City to fund any particular activity.
F,
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City of Atascadero
Resolution No. 2020-057
Page 3 of 3
SECTION 12. That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
PASSED AND ADOPTED at a regular meeting of the City Council held on the 14th day
of July, 2020.
On motion by Council Member Newsom and seconded by Council Member Funk, the
foregoing Resolution is hereby adopted on the following roll call vote:
AYES:
Council Members Bourbeau, Fonzi, Funk, Newsom and Mayor Moreno
NOES:
None
ABSENT:
None
ABSTAIN:
None
APP�VEFORM:
Brian A. Pierik, City Attorney
CITY OF ATASCADERO
Heather Moreno, Mayor
DRAFT ORDINANCE
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO, CALIFORNIA, AMENDING TITLE 3 OF THE
ATASCADERO MUNICIPAL CODE TO ADD A NEW CHAPTER 18
"ESSENTIAL SERVICES TRANSACTIONS AND USE TAX" TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND
ADMINISTRATION, SUBJECT TO ADOPTION BY THE ELECTORATE
WHEREAS, pursuant to California Revenue & Taxation Code Sections 7251 et seq. and
7285.9, the City of Atascadero ("City") is authorized to levy a Transactions and Use Tax for
general purposes, subject to voter approval and
WHEREAS, the City proposes to levy a Transactions and Use Tax for general
purposes to fund maintain and enhance important City services, with the rate set at one percent;
and
WHEREAS, the City is fiscally challenged and while it does well with the funding that it
has, general fund revenue growth has not kept pace with the increasing costs of providing services
to a growing population; and
WHEREAS, the City seeks to maintain essential services and is coming to a crossroads
n where it cannot sustain the services it provides with the projected available resources; and
' WHEREAS, one of the two fire stations protecting lives and property within the City's
approximately 26 square miles was built in 1951 and has critical safety deficits requiring
replacement; and
WHEREAS, the City, has approximately half the national average of police officers per
capita for a City its size, is amongst the lowest paying City employer in the County for most
positions, and has deteriorating infrastructure including fire stations, parks. roads, zoo facilities
and other buildings; and
WHEREAS, Atascadero receives the lowest revenue per capita in Sales Tax, in Property
Tax and in General Fund revenues among all San Luis Obispo County cities and money from a
local, voter -approved funding measure is needed at the local level to address the community's
local needs; and
WHEREAS, the proceeds from such transactions and use tax could not be taken by the
State and would remain local, to be spent in the City of Atascadero for services such as police,
fire, paramedic, parks, recreation, public facilities. infrastructure and other services; and
WHEREAS, all City revenues are subject to annual independent audits with public review
of the City's budget being widely available, including at City Hall, and online; and
WHEREAS, under applicable law, to enact a transactions and use tax, the City Council of
the City of Atascadero must approve the Essential Services Transactions and Use Tax Ordinance
and the voters of the City of Atascadero must also adopt it upon majority vote at an election.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY
ORDAINS AS FOLLOWS:
SECTION 1. Title and Text. This Ordinance shall be known as the Essential Seryices ! 1
Transactions and Use Tax Ordinance, the full text of which is set forth in Attachment "A," attached
hereto and incorporated herein by reference.
SECTION 2. Approval by City Council. Pursuant to California Revenue Taxation Code
Section 7285.9, this Ordinance was duly introduced on July 14, 2020 and approved upon second
reading for placement on the ballot by a two-thirds (2/3) supermajority of all members of the City
Council on 2020.
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 Atascadero voting at the Regular Election on November 3, 2020, and
shall be deemed adopted and take effect ten (10) days after the City Council has certified the results
of that election by resolution.
SECTION 4. Operative Date. "Operative Date" for the Essential Services Transactions
and Use Tax means the first day of the first calendar quarter commencing more than one hundred
ten (I 10) days after the effective date of this Ordinance, 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 I
SECTION 6. Summary. The title and a summary of the Ordinance, along with the names
of the City Council members voting for and against the Ordinance, shall be published twice in a
newspaper of general circulation in the City of Atascadero.
SECTION 7. Publication. The City Clerk shall certify to the adoption of this Ordinance
no later than fifteen (15) days following the passage of this Ordinance, and shall cause this
Ordinance to be published by title and summary.
PASSED AND ADOPTED by the City Council of the City of Atascadero, California, held
on the day of 2020, by a vote of at least two-thirds of the City Council.
CITY OF ATASCADERO
Heather Moreno, Mayor
ATTEST:
Lara K. Christensen, City Clerk
APPROVED AS TO FORM:
Brian A. Pierik, City Attorney
ATTACHMENT A
CHAPTER 3-18
ESSENTIAL SERVICES TRANSACTIONS AND USE TAX
Sections:
3-18.010
Title.
3-18.020
Operative Date.
3-18.030
Purpose.
3-18.040
Contract with State.
3-18.050
Transaction Tax Rate.
3-18.060
Place of Sale.
3-18.070 Use Tax Rate.
3-18.080 Adoption of Provisions of State Law.
3-18.090 Limitations on Adoption of State Law and Collection of Use Taxes.
3-18.100 Permit Not Required.
3-18.110 Exemptions and Exclusions.
3-18.120 Amendments.
3-18.130 Enjoining Collection Forbidden.
3-18.140 Severability.
3-18.150 Effective Date.
3-18.140 Termination and Repeal.
3-18.170 Independent Annual Financial Audit,
3-18.010 Title.
This chapter is designated and shall be known as the Atascadero Essential Services Transactions and
Use Tax Ordinance. The city of Atascadero hereinafter shall be called "City." This ordinance shall be
applicable in the incorporated territory of the City.
3-18.020 Operative Date.
"Operative Date" means the first day of the first calendar quarter commencing more than 110
days after the adoption of this chapter, the date of such adoption being as set forth below.
3-18.030 Purpose.
This chapter is intended to achieve the following, among other purposes, and shall be interpreted
liberally in order to accomplish all of its lawful purposes:
A. To impose a retail transactions and use tax to be applied throughout the entire territory
of the City to the fullest extent permitted by law and in accordance with the provisions of Part 1.6
(commencing with Section 725 1) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of
Part 1.7 of Division 2.
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.
Essential Services Transactions and Use Tar
Page 1
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a
measure that can be administered and collected by the 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 Takation Code, minimize the cost of collecting the transactions and use taxes, and at
the same time, minimize the burden of record keeping upon persons subject to taxation under the
provisions of this chapter.
E. To provide transaction and use tax revenue for unrestricted general revenue purposes, and
not for specific purposes. All of the proceeds from the tax imposed by this chapter shall be placed in the
City's general fund and be available for any legal municipal purposes.
3-18.040 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 chapter;
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.
3-18.050 Transaction tax rate. ^
For the privilege of selling tangible personal property at retail, a tax is imposed upon all retailers ( I
in the incorporated territory of the City at the rate of 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.
3-18.060 Place of sale.
For the purposes of this chapter, all retail sales are consummated at the place of business of the
retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state
destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from
such sales shall include delivery charges, when such charges are subject to the state sales and use tax,
regardless of the place to which delivery is made. In the event a retailer has no permanent place of
business in the State or has more than one place of business, the place or places at which the retail sales
are consummated shall be determined under rules and regulations to be prescribed and adopted by the
California Department of Tax and Fee Administration.
3-18.070 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 for storage, use or other
consumption in the territory of the City at the rate of 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.
3-18.080 Adoption of provision of State law.
Essential Services Transactions and Use Tax
Page 2
Except as otherwise provided in this chapter and except insofar as they are inconsistent with the
provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1
n (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted
and made a part of this chapter as though fully set forth herein.
3-18.090 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 the City of Atascadero shall be substituted. 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 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 perfonning the functions incident to the administration or operation of
this chapter;
3. In those sections, including, but not necessarily limited to sections referring to the
exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from the taxes of this chapter 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.
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.
3-18.100 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 chapter.
3-18.110 Exemptions and exclusions.
A. There shall be excluded from the measure of the transactions tax and the use tax the
Essential Services Transactions and Use Tax
Page 3
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. n
B. There are exempted from the computation of the amount of transactions tax the gross fl I
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 I (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 n 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 chapter.
5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of
tangible personal property shall be deemed not to be obligated pursuant to a 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:
I. 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.
Essential Services Transactions and Use Tax
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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.
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
17 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.
3-18.120 Amendments.
All amendments subsequent to the effective date of this chapter.to Part 1 of Division 2 of the
Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6
and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7
of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter,
provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this
chapter. The City Council may amend this chapter to comply with applicable law or as may be otherwise
necessary in order to further the chapter's stated purposes.
However, as required by Article X111 C of the California Constitution, voter approval is required
for any amendment that would increase the rate of any tax levied pursuant to this Chapter. The people of
the City of Atascadero affirm that the following actions shall not constitute an increase of the rate of a
tax:
A. The restoration of the rate of the tax to a rate that is no higher than that set by this
Chapter, if the City Council has acted to reduce the rate of the tax;
Essential Services Transactions and Use Tax
Page 5
B. An action that interprets or clarifies the methodology of the tax, or any definition
applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation
or clarification) is not inconsistent with the language of this Chapter; or n
C. The collection of the tax imposed by this Chapter even if the City had, for some period of I I
time, failed to collect the tax.
3-18.130 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 chapter, or Part 1.6 of Division 2 of the Revenue and Taxation
Code, of any tax or any amount of tax required to be collected.
3-18.140 Severability.
If any provision of this chapter or its application to any person or circumstance is determined by a court
of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall not
effect on any other provision of this chapter or the application of this chapter to any other person or
circumstance and, to that end, the provisions hereof are severable.
3-18.150 Effective date.
This chapter relates to the levying and collecting of the City transactions and use taxes and shall
take effect 10 days after the election results are declared by the City Council (CA Elections Code §9217).
The operative date (Section 2) will be the first day of the first calendar quarter commencing more than
1 10 days after the adoption of this ordinance, which will be April 1, 2021.
3-18.160 Termination and repeal.
The authority to levy a retail transaction and use tax shall be in effect until and unless repealed by
the voters of the City in the manner provided by law.
3-18.170 Independent annual financial audit.
The revenue and expenditures of this new transactions and use tax shall be included in the annual
audit of the City's financial operations by an independent certified public accountant.
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Essential Services Transactions and Use Tax
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