B0785-0001\3017427v1.doc
AGENDA REPORT
Meeting Date: October 1, 2024
Item Number:
To: Honorable Mayor & City Council
From: Laurence S. Wiener, City Attorney
Subject: RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
SUSPENDING THE COLLECTION OF A TRANSACTION AND USE
TAX PURSUANT TO MEASURE RP
Attachments: 1. Resolution
RECOMMENDATION
The City Attorney recommends adoption of the resolution suspending the collection of a transaction and use tax pursuant to Measure RP.
INTRODUCTION
At its meeting on September 17, 2024, the City Council voted to suspend the implementation of Measure RP.
DISCUSSION
Measure RP enacted a 0.75% transaction and use tax for the City of Beverly Hills. This
0.75% was the difference between the current Beverly Hills sales and transaction and use tax and the maximum sales and transaction and use tax permitted Los Angeles County.
However, pursuant to Measure RP, the City suspended the collection of that tax until Los Angeles County or any agency of Los Angeles County (collectively, the “County”) placed a Measure on the ballot seeking voter authorization for a new or increased transactions and use tax. In that case, in order to ensure that then the City will retain this funding for local use without raising taxes, the City would commence the process of collection of the tax authorized by Measure RP.
Meeting Date: October 1, 2024
B0785-0001\3017427v1.doc
Measure A has been placed on the November ballot. Measure A would enact a 0.5% transaction and use tax in Los Angeles County to fund homeless services. Therefore, Measure A would trigger the tax enacted by Measure RP.
However, Measure A is being enacted pursuant to a special State law which allows Measure A to exceed the maximum 10.25% on sales and transaction and use taxes.
Therefore, if the City imposes the Measure RP tax, then the Measure A tax will still be imposed in addition to the Measure RP tax.
Measure RP provides the City Council may suspend or reduce the Measure RP taxes by resolution after a public meeting at which public testimony is taken. At the meeting on September 17, 2024 the City Council solicited public testimony and determined to suspend the Measure RP tax because Measure RP will not achieve the previously represented goal of not increasing taxes and retaining the tax revenue for local use.
FISCAL IMPACT
By suspending the collection of the Measure RP tax, the City would be foregoing an estimated $30 million, approximately, in the upcoming fiscal year Laurence S. Wiener,
City Attorney
Approved By
Attachment 1
B0785-0001\3015825v2.doc
RESOLUTION NO. 24-R-_______
RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY
HILLS SUSPENDING THE COLLECTION OF A
TRANSACTION AND USE TAX PURSUANT TO MEASURE
RP
Measure RP was on the November 3, 2020 ballot and enacted a transaction and use tax of .75%. The Measure RP tax occupied the remainder of the total 10.25% sales and transaction and use taxes allowed in Los Angeles County at that time.. The Measure RP tax would be triggered when Los Angeles County or a county agency was scheduled to have on the ballot a competing transaction and use tax. In that event, the City of Beverly Hills, rather than Los Angeles County or a county agency, would receive the revenue from the additional transaction and use tax to use for local purposes.
In November, 2024 the citizens of Los Angeles County are scheduled to vote on Measure A which would enact a .5% transaction and use tax on the citizens of Los Angeles County, including the City of Beverly Hills.
The tax imposed pursuant to proposed Measure A would trigger the tax imposed by Measure RP.
However, Measure A was placed on the ballot pursuant to special State legislation, which allowed Measure A to exceed the 10.25% total sales and transaction and use tax imposed in Los Angeles County.
As a consequence, Measure RP cannot replace the tax imposed by Measure A and instead would be imposed in addition to the tax imposed by Measure A.
Docusign Envelope ID: 9F9E10F5-D8F1-4D8A-8366-44810F3FB521 -2-
B0785-0001\3015825v2.doc
NOW, THEREFORE, the Council of the City of Beverly Hills does hereby resolve as follows:
Section 1. The Council of the City of Beverly Hills hereby suspends the collection of the tax imposed by Measure RP.
Section 2. The City Clerk shall certify to the adoption of this Resolution and shall cause this Resolution and her certification to be entered in the Book of Resolutions of the Council of this City.
Adopted:
LESTER J. FRIEDMAN
Mayor of the City of Beverly Hills,
California
ATTEST:
(SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO FORM:
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
Docusign Envelope ID: 9F9E10F5-D8F1-4D8A-8366-44810F3FB521 Certificate Of Completion
Envelope Id: 9F9E10F5D8F14D8A836644810F3FB521 Status: Sent Subject: URGENT Docusign: Resolution - Suspending the Collection of Transaction and Use Tax Per M...
Source Envelope:
Document Pages: 2 Signatures: 1 Envelope Originator:
Certificate Pages: 2 Initials: 0 Jill Doohen
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 208.87.233.201
Record Tracking
Status: Original
9/25/2024 2:35:28 PM
Holder: Jill Doohen
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Laurence S. Wiener
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Cindy Owens
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Policy & Management Analyst
City of Beverly Hills
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Nancy Hunt-Coffey
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Lester J. Friedman
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Huma Ahmed
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Adrianne Tarazon
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Keith Sterling
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