City Council Agenda
City of Campbell, 70 N. First St., Campbell, California
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CAMPBELL CITY COUNCIL
NOTICE OF ADJOURNMENT OF THE JULY 16, 2024 MEETING
NOTICE IS HEREBY GIVEN that the regular meeting of the Campbell City Council scheduled for Tuesday, July 16, 2024 was adjourned to Thursday, August 8, 2024 at 7:00 p.m. for the purpose of conducting regular business, Council Chamber, 70 N. First Street, Campbell, California.
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_________________________
Andrea Sanders, City Clerk
Dated this 17
th day of July, 2024
REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Thursday, August 8, 2024 7:00 p.m.
City Hall Council Chamber – 70 N. First Street
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
COMMUNICATIONS AND PETITIONS
ORAL REQUESTS
NOTE: This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda. Persons wishing to address the Council are requested, but not required to complete a Speaker’s Card. Speakers are limited to two (2) minutes. The law generally prohibits the Council from discussion or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Requests.
NEW BUSINESS
UNFINISHED BUSINESS
1. Actions Related to Submitting a Transaction and Use Tax Ballot Measures to the Voters at the November 5, 2024 General Municipal Election (Ordinance/Resolution/Roll Call Vote)
Recommended Action: That the City Council approve the second reading and adopt Ordinance 2315 amending Chapter 3.09, of Title 3 of the Campbell Municipal Code enacting an additional 1/2 cent Transaction and Use Tax to be administered by the California Department of Tax and Fee Administration; and adopt a resolution submitting a Transactions and Use Tax Measure to the voters at the November 5, 2024 General Municipal Election.
ADJOURN
IMPORTANT NOTICE: Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection with the agenda packet in the lobby of City Clerk’s Office, 70 N. First Street, Campbell, CA 95008, during normal business hours. These materials will also be available on the City website at https://www.ci.campbell.ca.us/agendacenter with the agenda packet following the last item of the agenda, subject to staff’s ability to post the documents prior to the meeting. All documents not posted prior to the meeting will be posted the next business day.
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City
Council
Report
TITLE: Actions Related to Submitting a Transaction and Use Tax Ballot Measures to the Voters at the November 5, 2024 General Municipal Election (Ordinance/Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council approve the second reading and adopt Ordinance 2315 amending Chapter 3.09, of Title 3 of the Campbell Municipal Code enacting an additional 1/2 cent Transaction and Use Tax to be administered by the California Department of Tax and Fee Administration; and adopt a resolution submitting a Transactions and Use Tax Measure to the voters at the November 5, 2024 General Municipal Election.
BACKGROUND
During the FY 2024 priority setting process, the City Council identified Financial Health as one of its four (4) Strategic Objectives and Financial Stability as one of its five (5) Council Priorities. As such, the City Manager’s Office and Finance Department were assigned the following Workplan item in the FY 2024 Adopted Budget:
In coordination with an outside consultant, the City Manager’s Office, all members of the Executive Team, and other key stakeholders, explore potential new revenue sources to add to the FY 2025 Master Fee Schedule and/or place on the 2024 General Election ballot LEAD DEPARTMENTS – City Manager’s Office and Finance Department [Council Priority – Financial Stability] Financial Health and Financial Stability were also selected as Strategic Objectives and Council Priorities during the FY 2025 priority setting session held on February 28, 2024.
Subsequently, the Council held a Study Session on March 19, 2024 to discuss potential revenue measures for placement on the November 5, 2024 General Election or future election ballots. During that meeting, several types of revenue measures were discussed that would address a) Ongoing Operating Costs and Reserve Levels, b) Aging Infrastructure and Deferred Maintenance, and/or c) Housing. Revenue measures discussed included those summarized in Table 1 below:
Item: 1
Category: UNFINISHED BUSINESS
Meeting Date: August 8, 2024
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Cash or
Ongoing
Revenue
Ongoing
Operating
Costs and
Reserve
Levels
Aging
Infrastructure
and Deferred
Maintenance
Housing
Revenue Measure Type Based
on Area of Focus →
General or
Special
Purpose
Special
Purpose
Special
Purpose
Revenue Measure Options
Utility Users Tax (UUT) Ongoing X X X
Sales Tax Add On Ongoing X X X
Transient Occupancy Tax (TOT) Ongoing X X X
Parcel Tax Ongoing X X X
Vacant Parcel Tax Ongoing X X X
Infrastructure Bond Influx X
Housing Bond Influx X
Based on Council feedback provided during the March 19 Study Session and Council’s continued interest in placing a locally -controlled revenue measure on the November 2024 General Election ballot to maintain quality of life and financial stability, City staff partnered with outside experts to assess community interest in generating additional, locally-controlled revenue sources. Revenue measures surveyed in mid -May 2024 included an increased Transactions and Use (Sales) Tax rate and an increased Transient Occupancy Tax (TOT) rate. A summary of the survey results will be provided in the discussion section of this report.
At their July 16, 2024 meeting the City Council introduced and conducted the first reading of an Ordinance to place a 1/2 cent Transactions and Use (Sales) Tax measure on the November 5, 2024 ballot.
DISCUSSION
Fiscal Conditions Assessment
Over the course of the prior fiscal year (FY 2024), staff provided City Council with several updates on the City’s fiscal condition and growing concerns regarding the City’s long-term ability to simply maintain existing service levels given primary revenue sources that have not kept pace with a rapid rise in costs. As noted in the following updates, this has created a structural deficit within the General Fund and the need for long-term solutions that build fiscal resiliency:
· FY 2024 Mid-Year Financial Update (March 5, 2024)
· FY 2025 Budget Study Session (May 7, 2024)
· FY 2025 Budget Introduction (June 4, 2024)
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Table 1 – Revenue Measure Options Discussed at March 19 Study Session Influx of AREA OF FOCUS
Transaction and Use Tax Ballot Measures Page 3 of 10
· FY 2025 Budget Adoption (June 18, 2024)
The reports listed above and staff’s most recent update of the City’s Seven-Year Financial Forecast indicated a $3.9 million structural deficit in FY 2025 (before short - term corrective strategies were implemented) as well as structural deficits ranging from $1.9 million to $3.9 million in outer years of the forecast through FY 2031. Primary factors contributing to these forecasted structural deficits were detailed in the previous updates, but again include several items which are largely outside the City’s control and include the following:
• Loss of several significant sales tax generators in FY 2024 , which reduces ongoing sales tax revenue by approximately $600,000 annually and limits future growth.
• Increased annual payment of $1.25 million to the CalPERS retirement system in FY 2025 for the City’s required contribution towards its unfunded actuarial liability (UAL) . UAL payment growth is expected to normalize in future fiscal years, but the payment level itself will still remain elevated and not decrease from the FY 2025 UAL payment level.
• $379,880 increase in annual General Liability and Property Insurance premiums charged by the City’s risk sharing pool (PLAN JPA) in FY 2025. As detailed in the most recent update of the City’s Seven -Year Financial Forecast, the insurance market has been negatively impacted by climate change, changing weather patterns, more frequent and severe storms and wildfires, social inflation, nuclear jury verdicts, general inflation, and rising litigation costs. As such, General Liability Insurance premiums are expected to grow 15% annually over duration of the forecast and Property Insurance premiums are expected to growth 5% annually over the duration of the forecast. The City has not seen less than a 25% increase in its combined annual insurance premiums since FY 2019.
• Increased annual payment of $366,013 to Santa Clara County Fire District (SCCFD) in FY 2025 to pay for contractual fire services. Such increases are set by contractual formula each year (established July 1, 2018 and effective until June 30, 2028) and factor in the change in the Consumer Price Index (CPI), change in Firefighter/Engineer compensation, and change in Assessed Property Valuations within Campbell. Each carries a weight of 50%, 25%, and 25%, respectively, and the total fire services contract shall increase by no less than 2% and no more than 5% annually.
Taken on their own, the three (3) significant expenditure increase areas coupled with sizeable sales taxes losses detailed above contributed $2.60 million to the City’s projected General Fund operating deficit in FY 2025 (and beyond) and are again largely outside the City’s control. Other factors that contributed to the projected operating deficit in FY 2025 include scheduled 3% contractual cost of living adjustments (COLA) for all 1 Packet Pg. 5
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bargaining units per negotiated MOUs (with all expiring June 30, 2025 or December 31, 2025), 8% assumed healthcare premium increases across all plans, increases to utility rates, and generally elevated inflation across all service areas of the City.
In addition to limiting the City’s ability to simply maintain existing service levels, the City’s fiscal condition also places significant constraints on its ability to address aging infrastructure and increasing deferred maintenance issues. As Council may recall, on November 6, 2018, City of Campbell voters approved Measure O with a ‘Yes’ vote of
69.5% by the citizens that voted in the General Election. Bonds pursuant to Measure O were authorized to be issued in the aggregate amount of up to $50 million to construct and/or renovate City facilities to house Police and Library services.
While addressing the public safety and library buildings was a strong step forward for the City and an investment in the future, the City owns a number of other buildings such as City Hall, the Campbell Community Center, the Corporation Yard, and two Fire Stations, which are older, increasingly expensive to maintain as critical systems fail, and would benefit from significant rehabilitation or replacement. To aid in the analysis of ongoing infrastructure maintenance and repair needs, the following Workplan item was assigned to the Public Works, Finance, and Recreation Departments in the FY 2024 Adopted Budget:
Using results of completed facilities condition assessment, collaborate with the Public Works and Recreation and Community Services Departments to prepare capital projects to address Citywide deferred maintenance issues in future Capital Improvement Plans (CIP) LEAD DEPARTMENT - Public Works [Council Priority – Financial Stability]
The Facilities Conditions Assessment was recently completed by an experienced consultant; with full results to be presented to Council at the August 20, 2024 Regular Meeting. To provide some high -level numbers though, the conditions of 36 City buildings (446,904 square feet) with a current replacement value (CRV) of $219.10 million were assessed. In discussions between the consultant and City staff, $42.4 million of deferred maintenance issues were identified that would be beneficial for the City to address over the next 5 years. Obviously, the City does not have the current funding capacity nor the staff bandwidth to address all recommended deferred maintenance issues over the next 5 years. Nevertheless, it is useful to understand the magnitude of the issues at hand so that they can be addressed in a strategic manner through realistic and achievable objectives. And based on follow up discussions between the consultant and City staff, it is believed that existing staff would have the bandwidth to take on the most highly critical projects at a cost of between $2 million and $3 million annually over the next 5 years.
While addressing deferred maintenance issues sooner rather than later helps to ensure that more expensive issues don’t arise in the future, another option for the City is to construct new City facilities (similar to the Police building) or completely renovate existing City facilities (similar to the Library building). Based on the current construction estimates for the Police and Library buildings, very preliminary fiscal analysis, and the 1 Packet Pg. 6
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number of other older buildings that the City owns, between $100 million to $150 million may be needed to construct or renovate key City facilities such as City Hall, the Campbell Community Center, the Public Works Corporation Yard, and two (2) City owned Fire Stations operated by the Santa Clara County Fire Department (SCCFD).
And lastly, as identified in the City’s Adopted 2025 – 2029 Capital Improvement Plan (CIP), the City also has other unfunded and necessary capital projects totaling $84.2 million. Large unfunded capital items include ADA Accessibility Ramps ($9.0 million), Deferred Street Maintenance ($20.5 million), Campbell Priority Development Area (PDA) Street, Sidewalk, and Intersection Enhancements in the Downtown Area ($2.0 million), Downtown Alleyway Improvements ($1.5 million), Median Landscaping along Hamilton Avenue ($1.0 million), Community Center Pool Improvements ($5.4 million), Downtown Safety Bollards ($1.0 million), Future Park Acquisition to Meet Population Needs ($12.0 million), San Tomas Creek Trail Construction ($5.3 million), City Hall Renovations and Misc. Civic Center Improvements ($21.8 million). Please note that some of these unfunded projects may also be included within the Facilities Conditions Assessment and other numbers previously discussed.
Community Survey Overview
As previously mentioned, City staff partnered with outside experts to assess community interest in generating additional, locally -controlled revenue sources. Revenue measures surveyed in mid -May 2024 included an increased Transactions and Use (Sales) Tax rate and an increased Transient Occupancy Tax (TOT) rate. 652 interviews were conducted with likely November 2024 voters using both telephone and online interview methods. Surveys were conducted in English and Spanish and sought to gauge the community’s satisfaction with City services and leadership, knowledge of fiscal and other issues affecting the City, and overall receptiveness to revenue measures. Here are some key, high-level results of the survey:
• Broad Topics
o 52% of survey respondents were optimistic about the City’s direction; while only 16% were pessimistic.
▪ For those able to offer an opinion, views of City Council and City government are generally positive. 42% had a favorable opinion overall and only 12% had an unfavorable opinion.
▪ Large majorities are satisfied with the local quality of life and City services; with 86% being very satisfied or somewhat satisfied with the quality of life in Campbell and only 13% being somewhat dissatisfied or very dissatisfied.
▪ Cost of living issues are clearly seen as the most pressing problems facing the City, with cost of housing ranking as an extremely or very serious problem for 64% of respondents and cost 1 Packet Pg. 7
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of living ranking as an extremely or very serious problem for 60% of respondents.
▪ Most feel that crime in Campbell has stayed the same over the past five years – consistent with 2015; where 41% said it remained the same in both survey years.
▪ 89% feel safe in their own neighborhoods; with 10% feeling somewhat or very unsafe.
▪ Fewer than half ( 43%) see “ great” or “some need” for new funding – and one-quarter (25%) are unsure. 32% see little or no real need.
• View of Potential Revenue Measures
o The general -purpose Transactions and Use (Sales) Tax measure has support from three in five or 60% of voters surveyed, for a measure requiring a simple majority.
o Nearly two -thirds or 64% support the TOT measure . 26% do not support and 10% are undecided.
• Investment Priorities
o Voters’ top priorities for funding include emergency medical services and safe public spaces ; with both ranking as an extremely or very important issue for 84% of respondents.
o Broad segments also value supporting local businesses and maintaining local control over funds ; with both ranking as an extremely or very important issue for 71% of respondents.
o Respondents did not rank investments in sidewalks, senior services and street trees as highly, but were still enthusiastic overall; with all categories ranking as an extremely or very important issue for 53-60% of respondents.
o Spending city revenues to encourage building more affordable housing is a lower priority; ranking as an extremely or very important issue for 45- 52% of respondents.
• Measure Viability Conclusions
o Both a sales tax and a transient occupancy tax (TOT) start with similarly broad but not especially intense support.
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o However, support for both measures intensified after providing respondents with information about the need for investments.
o Critical information did push support down for both measures, though both still remained above a majority vote threshold.
o While its prospects appear somewhat less certain than a TOT measure, these results suggest that a sales tax measure —which would generate significantly more revenue for the city than a TOT measure —is potentially viable this November, particularly if a community-based support emerges.
• Other Notes
o At the end of the survey, voters were also asked conceptually about updating the business license tax . Slim majorities ( 51%) support a potential business license tax modification based on gross payroll or square footage; dependent on business type.
Staff Recommendation
Based on the City’s structural deficit issues, increasing to as much as $3.9 million over the course of its Seven -Year Financial Forecast, as well as significant demand for financial resources to address aging infrastructure and increasing deferred maintenance issues, staff recommends placing a 1/2 cent Transactions and Use (Sales) Tax on the November 5, 2024 election ballot . This has support of 60% of those surveyed and would generate approximately $7.0 million per year. Such an increase in ongoing, locally-controlled revenues, would not only help the City to rectify its structural deficit issues, but also allow it to build up necessary reserves to address significant aging infrastructure and deferred maintenance concerns. Excess revenue over what is needed to fund daily operations and services could also be leveraged to issue debt should the City wish to construct new facilities or significantly renovate existing facilities.
In this instance, added revenue not needed to address structural deficit issues could be the security and source of funding for debt service payments to construct new facilities or significantly renovate existing facilities. And lastly, as was discussed during the November 21, 2023 Study Session, the City has significant unfunded pension liabilities, which can increase greatly and require a payment of $6.5 million in FY 2025 and an estimated payment of $6.8 million in FY 2026. Given additional funding, the City could work to systematically pay down some of those unfunded liabilities and reduce overall costs to the City so that pension costs were not such a large percentage of annual costs; freeing up resources for other critical City services.
In short, the City has numerous financial needs and a 1/2 cent Transactions and Use (Sales) Tax, generating approximately $7.0 million per year, would allow the City to not only address its most pressing current issues, but also build up long -term fiscal resiliency so that the need for increased taxes becomes less likely in the future.
Nevertheless, the passage of such a measure by voters is not guaranteed nor assumed by City staff. As such, should the City not be able to secure additional revenue sources, 1 Packet Pg. 9
Transaction and Use Tax Ballot Measures Page 8 of 10
service level and expenditure reductions may be necessary to correct the structural imbalances in the General Fund detailed previously. As such, the Executive Team will engage in collaborative meetings over the next several months to discuss potential 5 - 10% service level reductions and their associated impacts on City operations and the community. If necessary, the corrective budget actions would be implemented at the mid-point of FY 2025 or the beginning of FY 2026; subject to further Council discussion and approval.
Staff recommends that the City Council approve the second reading and adopt the proposed Ordinance to place a 1/2 cent Transactions and Use (Sales) Tax measure on the November 5, 2024 ballot . If the Ordinance is adopted by the City Council , it would become effective 10 days after certification of the election results. The levy of the tax would begin on April 1, 2025.
Staff also, recommends the City Council adopt the attached resolution placing the proposed measure on the ballot. The resolution authorizes the City Attorney to prepare the impartial analysis of the measure and sets forth the argument s and rebuttal arguments submittal dates.
Key Dates
The following is a list of key dates should Council wish to place a1/2 cent Transactions and Use (Sales) Tax on the November 5, 2024 general election ballot:
• July 16 - Introduce and hold first reading of ordinance
• August 8 - Adopt and hold second reading of ordinance and adopt resolution submitting to the Registrar of Voters (ROV)
• August 9 - Submit materials to the ROV
• August 13, by 12:00 P.M. - Supporting and Opposing Arguments due to the City Clerk’s office
• August 19, 2024 by 12:00 P.M. - Impartial Analysis by City Attorney due to City Clerk’s office
• August 19, 2024 by 12:00 P.M. - Rebuttal Arguments due to City Clerk’s office
FISCAL IMPACT
It is anticipated that a 1/2 cent Transactions and Use (Sales) Tax will raise approximately $7.0 million in additional revenue for the General Fund. This would be in addition to the City’s current 1/4 cent Transactions and Use (Sales) Tax (approved in 1 Packet Pg. 10
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2008 via Measure O), which generates approximately $3.5 million in locally -controlled revenue for the City annually.
The City will incur an estimated cost of $133,000 to place a measure on the ballot with the Santa Clara County Registrar of Voters. Adequate funds have been allocated in the FY 2025 Adopted Budget for a ballot measure as well as two (2) district elections under the City Clerk’s Office and account 101.511.7436. Additionally, $100,000 was added to the FY 2024 City Manager expenditure budget at mid -year for ballot measure polling and community engagement, ballot measure language and structure development, legal services, and other related expenses.
ALTERNATIVES
1. Approve moving forward with a Transactions and Use (Sales) Tax revenue ballot measure at this time, but at a lessor 1/4 cent rate.
2. Do not approve moving forward with a Transactions and Use (Sales) Tax revenue ballot measure at this time.
3. Consider another type of revenue measure in a future election, such as a Transient Occupancy Tax (TOT) adjustment or Business License Tax (BLT) modernization. Increasing the TOT rate from 12% to 16% could generate up to $1.5 million annually in additional revenues. The fiscal impacts of a BLT modernization are unknown at this time pending more extensive analysis.
4. Provide other direction.
Prepared by:
Brian Loventhal, City Manager
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a. Ordinance for Sales Tax Ballot Measure
b. Resolution for Sales Tax Ballot Measure
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Attachment:
ORDINANCE NO. 2315
AN ORDINANCE OF THE CITY OF CAMPBELL AMENDING CHAPTER 3.09, OF TITLE 3 OF THE CAMPBELL MUNICIPAL CODE IMPOSING A TRANSACTIONS AND USE (SALES) TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
WHEREAS, the City of Campbell has authority, pursuant to Article XIIIC of the California Constitution and Revenue and Tax Code section 7285.9 et seq. to propose a transactions and use tax to be adopted by a majority vote of qualified voters, and is authorized by Elections Code section 9222 to submit an ordinance directly to the voters at the general election to be held on November 5, 2024,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES ORDAIN AS FOLLOWS:
Section 1. Amendment. Contingent upon approval by the voters at the election of November 5, 2024, and authorization of the proposed one-half cent increase in the City’s transaction and use tax by legislation of the State of California , Chapter 3.09, “ City of Campbell Transactions and Use Tax” of Title 3 of the Campbell Municipal Code is hereby amended to read in its entirety as follows:
3.09.010 Short title.
This chapter shall be known as the City of Campbell Transactions and Use Tax.
3.09.020 Purpose.
Pursuant to the requirements of the California Department of Tax and Fee Administration, this chapter is adopted to achieve the following, among other purposes, and directs that the provisions of this chapter be interpreted in order to accomplish those 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 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 of the Revenue and Taxation Code, which authorizes the city to adopt this chapter 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 transaction 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 therefor 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.
1.a
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Attachment: Ordinance for Sales Tax Ballot Measure (Transaction and Use Tax Ballot Measures)
(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 chapter. (e) To provide transactions and use tax revenue to the city to be used to fund city services, including, but not limited to: maintaining neighborhood police patrols, fire protection, 911 emergency response times, maintaining crime suppression and investigation, city streets and pothole repair, parks and recreation, job creation and economic improvement programs, senior and youth services, and with any transactions and use tax revenue received being placed into the city’s general fund.
(f) To provide transaction and use tax revenue to the city that can be spent for unrestricted general revenue purposes.
3.09.030 Operative date;
If approved by State legislation, this chapter shall be operative on the first day of the first calendar quarter commencing at least 110 days after the adoption of the ordinance codifying this chapter and approval by a vote of the electorate, in accordance with Revenue and Tax Code section 7265.
3.09.040 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 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 contract.
3.09.050 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 three-quarters of one percent of the gross receipts of any retailers for the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.
3.09.060 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 or her 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.
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Attachment: Ordinance for Sales Tax Ballot Measure (Transaction and Use Tax Ballot Measures)
3.09.070 Use tax rate.
A use 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 chapter for storage, use, or other consumption in said territory at the rate of three- quarters of one percent 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.
3.09.080 Adoption of provisions of state law.
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 (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.
3.09.090 Limitation 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. The substitution, however, 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, 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 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:
(i) 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
(ii) 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 of the Revenue and Taxation Code.
(c) “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
1.a
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Attachment: Ordinance for Sales Tax Ballot Measure (Transaction and Use Tax Ballot Measures)
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.
3.09.100 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 seller’s permit shall not be required by this chapter.
3.09.110 Exemptions and exclusions.
(a) There shall be excluded from the measure of the transactions 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 or her 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:
(i) 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
(ii) 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 the ordinance codified in this chapter.
(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 the ordinance codified in this chapter. (5) For the purposes of subsections (b)(3) and (b)(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
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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 chapter, 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.l 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 chapter. (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 chapter. (5) For the purposes of subsections (c)(3) and (c)(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 subsection (c)(7) of this section, 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 regis tered 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 chapter 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.
(e) Nothing in this chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States, or the Constitution of the
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State of California.
3.09.120 Amendments.
(a) 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 a nd 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. (b) The city council may otherwise amend this chapter without submitting the amendment to the voters for approval in any manner which does not constitute a tax “increase” as that term is defined in Government Code section 53750(h). The city council may amend this chapter without voter approval provided such amendments do not increase the tax rate; extend the duration of the tax; revise the methodology for calculating the tax, such that a tax increase would result; impose the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of law); or terminate the tax.
(c) Notwithstanding any provision to the contrary, any proposed change to the tax rate imposed under this chapter shall be submitted to the vote of the people.
3.09.130 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.
3.09.140 Audit Requirements.
The proceeds resulting from the transactions and use tax shall be deposited into the city’s general fund and become subject to the same audit requirements as other general fund revenue. Any auditor’s report shall include an accounting of the revenues received from the transactions and use tax and shall be presented to the city council and made available for public review.
Section 2. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), under Section 15061(b)(3) of the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment.
Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clau se, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.
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Section 4. Passage. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance by the City Council of the City of Campbell, California, and cause the same to be published in accordance with State law.
Section 5. Effective Date. This Ordinance shall go into effect in accordance with Elections Code Section 9217, and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Campbell voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that election by resolution. The levying and collection of the transaction and use tax shall be as specified in the Ordinance.
Section 6. Termination Date. The authority to levy the tax imposed by this ordinance shall continue until ended by voters.
PASSED AND ADOPTED by the voters of the City of Campbell this November 5, 2024.
***
It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024 election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on by the following vote:
AYES: Councilmember
NOES: Councilmember
ABSTAIN: Councilmember
ABSENT: Councilmember
APPROVED:
________________________
Susan M. Landry, Mayor
ATTEST: APPROVED AS TO FORM:
________________________
Andrea Sanders, City Clerk William Seligmann, City Attorney
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL SUBMITTING
A TRANSACTIONS AND USE (SALES) TAX MEASURE TO THE VOTERS AT THE NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION AND TAKING CERTAIN
RELATED ACTIONS
WHEREAS, the City of Campbell needs reliable sources of funding to help our City remain a safe and vibrant place to live, run a business, work and raise a family;
WHEREAS, a local, Campbell-approved funding measure would provide local control over local funds, for local needs; and
WHEREAS, voter-approved local funding will help to fund priorities identified by the public, such as to maintain and improve neighborhood police patrols, fire prevention and emergency medical response services, urban wildfire protection, crime suppression/investigation, pothole and street repair, parks, sports and recreation centers, and other city facilities and services; and
WHEREAS, voter-approved funding will provide funds for Campbell , and all measure funds are to be spent locally to benefit Campbell residents; and
WHEREAS, The City is committed to transparent, responsible fiscal stewardship and these funds are subject to the City’s annual financial audits and publicly disclosed spending practices; and
WHEREAS, Revenue & Taxation Code Section 7285.9 authorizes the City Council to levy a transactions and use tax for general purposes if the ordinance proposing that tax is approved by a twothirds vote of all members of the City Council and the tax is approved by a majority vote of the qualified voters of the city voting In an election on the issue; and
WHEREAS, the City Council has adopted an Ordinance, entitled, "An Ordinance of the City of Campbell Amending Chapter 3.09 of Title 3 of the Campbell Municipal Code Imposing a Transactions and Use Tax To Be Administered by the California Department of Tax and Fee Administration" (the "Tax Ordinance"); and
WHEREAS, the City Council desires to submit the Tax Ordinance to electorate at an election to be held on November 5, 2024 ( the “Election;”) and
WHEREAS, the City Council has requested that the Election be consolidated with the statewide election held on that date, and the City Council has requested the assistance of Santa Clara County in the conduct of the Election; and
WHEREAS, arguments for and against said measure, as well as rebuttals, may be filed in accordance with applicable provisions of the law pursuant to Elections Code and the text of the measure shall be printed on the ballot in the voter information portion of the sample ballot.
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NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Campbell does resolve and order as follows:
1. The City Council hereby orders, pursuant to Section 9222 of the Elections Code, that the Tax Ordinance, which is attached hereto as Exhibit "A" and incorporated herein by reference, be submitted to the voters at the Election. If a majority of the voters voting upon the ballot measure vote in its favor, the Tax Ordinance shall be considered operative on the date the vote is declared by the City Council and as set forth in Tax Ordinance.
2. The question submitted shall appear on the ballot as follows:
3. The City Clerk is instructed to transmit the Tax Ordinance to the City Attorney along with a request that an impartial analysis be prepared for inclusion in the Voters' Pamphlet materials.
Pursuant to Elections Code section 9280, the City Attorney shall prepare an impartial analysis, which shall be filed with the City Clerk's office no later than August 19, 2024 by 12:00 P.M.
4. Arguments for and against the Measure may be submitted to the City Clerk's office, until 12 p.m. on August 1 3, 2024. Rebuttal arguments will be permitted and must be received in the City Clerk's office by 12:00 pm on August 19, 2024.
5. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.
6. Notice of the time and place of holding of 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.
7. Pursuant to Section 10400 et seq. of the Elections Code, the Board of Supervisors of Santa Clara County is requested to consolidate the election on this ballot measure with other elections held on the same day in the County.
8. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to Section 10411 of the Elections Code.
9. Pursuant to Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the County Election Official to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the City agrees to reimburse the Campbell Local Funding/Community Services Measure . Shall the measure providing funding for Campbell’s fiscal stability and general government services, such as: police/fire protection; 911 emergency medical response; road and storm drain repairs; disaster preparation; homeless services; recreation programs; keeping public spaces and parks safe/clean, by establishing a locally controlled 1/2¢ transaction and use (sales) tax providing approximately $7,000,000 annually until ended by voters; requiring independent audits and public disclosure of spending, be adopted?
YES
NO
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County, in accordance with current County pro-rations and allocation procedures.
10. The City Clerk shall file a certified copy of this Resolution with the Santa Clara County Registrar of Voters.
11. The City Clerk is hereby authorized to do all things necessary and proper to implement the provisions of this Resolution, including certifying the passage and adoption of this Resolution.
I hereby certify that foregoing Resolution No. was adopted by the Campbell City Council at a regular meeting on August 8, 2024, by the following vote:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
APPROVED:
________________________
Susan M. Landry, Mayor
ATTEST:
________________________
Andrea Sanders, City Clerk
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EXHIBIT A
ORDINANCE NO. 2315
AN ORDINANCE OF THE CITY OF CAMPBELL AMENDING CHAPTER 3.09, OF TITLE 3 OF THE CAMPBELL MUNICIPAL CODE IMPOSING A TRANSACTIONS AND USE (SALES) TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
WHEREAS, the City of Campbell has authority, pursuant to Article XIIIC of the California Constitution and Revenue and Tax Code section 7285.9 et seq. to propose a transactions and use tax to be adopted by a majority vote of qualified voters, and is authorized by Elections Code section 9222 to submit an ordinance directly to the voters at the general election to be held on November 5, 2024,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES ORDAIN AS FOLLOWS:
Section 1. Amendment. Contingent upon approval by the voters at the election of November 5, 2024, and authorization of the proposed one -half cent increase in the City’s transaction and use tax by legislation of the State of California, Chapter 3.09, “City of Campbell Transactions and Use Tax” of Title 3 of the Campbell Municipal Code is hereby amended to read in its entirety as follows:
3.09.010 Short title.
This chapter shall be known as the City of Campbell Transactions and Use Tax.
3.09.020 Purpose.
Pursuant to the requirements of the California Department of Tax and Fee Administration, this chapter is adopted to achieve the following, among other purposes, and directs that the provisions of this chapter be interpreted in order to accomplish those 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 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 of the Revenue and Taxation Code, which authorizes the city to adopt this chapter 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 transaction 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 therefor 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
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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 chapter. (e) To provide transactions and use tax revenue to the city to be used to fund city services, including, but not limited to: maintaining neighborhood police patrols, fire protection, 911 emergency response times, maintaining crime suppression and investigation, city streets and pothole repair, parks and recreation, job creation and economic improvement programs, senior and youth services, and with any transactions and use tax revenue received being placed into the city’s general fund.
(f) To provide transaction and use tax revenue to the city that can be spent for unrestricted general revenue purposes.
3.09.030 Operative date;
If approved by State legislation, this chapter shall be operative on the first day of the first calendar quarter commencing at least 110 days after the adoption of the ordinance codifying this chapter and approval by a vote of the electorate, in accordance with Revenue and Tax Code section 7265.
3.09.040 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 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 contract.
3.09.050 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 three -quarters of one percent of the gross receipts of any retailers for the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.
3.09.060 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 or her 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.
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3.09.070 Use tax rate.
A use 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 chapter for storage, use, or other consumption in said territory at the rate of three - quarters of one percent 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.
3.09.080 Adoption of provisions of state law.
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 (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.
3.09.090 Limitation 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. The substitution, however, 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, 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 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:
(i) 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
(ii) 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 of the Revenue and Taxation Code.
(c) “A retailer engaged in business in the District” shall also include any retailer
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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.
3.09.100 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 seller’s permit shall not be required by this chapter.
3.09.110 Exemptions and exclusions.
(a) There shall be excluded from the measure of the transactions 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 or her 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:
(i) 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
(ii) 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 the ordinance codified in this chapter.
(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 the ordinance codified in this chapter. (5) For the purposes of subsections (b)(3) and (b)(4) of this section, the sale
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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 chapter, 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.l 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 chapter. (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 chapter. (5) For the purposes of subsections (c)(3) and (c)(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 subsection (c)(7) of this section, 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 regis tered 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 chapter 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.
(e) Nothing in this chapter shall be construed as imposing a tax upon any person
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or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States, or the Constitution of the State of California.
3.09.120 Amendments.
(a) 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 a nd 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. (b) The city council may otherwise amend this chapter without submitting the amendment to the voters for approval in any manner which does not constitute a tax “increase” as that term is defined in Government Code section 53750(h). The city council may amend this chapter without voter approval provided such amendments do not increase the tax rate; extend the duration of the tax; revise the methodology for calculating the tax, such that a tax increase would result; impose the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of law); or terminate the tax.
(c) Notwithstanding any provision to the contrary, any proposed change to the tax rate imposed under this chapter shall be submitted to the vote of the people.
3.09.130 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 thi s 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.
3.09.140 Audit Requirements.
The proceeds resulting from the transactions and use tax shall be deposited into the city’s general fund and become subject to the same audit requirements as other general fund revenue. Any auditor’s report shall include an accounting of the revenues received from the transactions and use tax and shall be presented to the city council and made available for public review.
Section 2. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), under Section 15061(b)(3) of the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment.
Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clau se, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences,
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Attachment: Resolution for Sales Tax Ballot Measure (Transaction and Use Tax Ballot Measures)
clauses or phrases be declared unconstitutional.
Section 4. Passage. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance by the City Council of the City of Campbell, California, and cause the same to be published in accordance with State law.
Section 5. Effective Date. This Ordinance shall go into effect in accordance with Elections Code Section 9217, and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Campbell voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that election by resolution. The levying and collection of the transaction and use tax shall be as specified in the Ordinance.
Section 6. Termination Date. The authority to levy the tax imposed by this ordinance shall continue until ended by voters.
PASSED AND ADOPTED by the voters of the City of Campbell this November 5, 2024.
***
It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024 election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on by the following vote:
AYES: Councilmember
NOES: Councilmember
ABSTAIN: Councilmember
ABSENT: Councilmember
APPROVED:
________________________
Susan M. Landry, Mayor
ATTEST: APPROVED AS TO FORM:
________________________
Andrea Sanders, City Clerk William Seligmann, City Attorney
1.b
Packet Pg. 29
Attachment: Resolution for Sales Tax Ballot Measure (Transaction and Use Tax Ballot Measures) To: Honorable Mayor and City Council
Date: August 7, 2024
From: Andrea Sanders, City Clerk
Subject: Desk Item 1 – Updated Ordinance and Resolution
The purpose of this desk item is to provide updated language to the “ Passed and Adopted” section of Ordinance 2315. The revised ordinance and resolution have been attached.
City of Campbell
MEMORANDUM
City Clerk’s Office
ORDINANCE NO. 2315
AN ORDINANCE OF THE CITY OF CAMPBELL AMENDING CHAPTER 3.09, OF TITLE 3 OF THE CAMPBELL MUNICIPAL CODE IMPOSING A TRANSACTIONS AND USE (SALES) TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
WHEREAS, the City of Campbell has authority, pursuant to Article XIIIC of the California Constitution and Revenue and Tax Code section 7285.9 et seq. to propose a transactions and use tax to be adopted by a majority vote of qualified voters, and is authorized by Elections Code section 9222 to submit an ordinance directly to the voters at the general election to be held on November 5, 2024,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES ORDAIN AS FOLLOWS:
Section 1. Amendment. Contingent upon approval by the voters at the election of November 5, 2024, and authorization of the proposed one- half cent increase in the City’s transaction and use tax by legislation of the State of California, Chapter 3.09, “ City of Campbell Transactions and Use Tax” of Title 3 of the Campbell Municipal Code is hereby amended to read in its entirety as follows:
3.09.010 Short title.
This chapter shall be known as the City of Campbell Transactions and Use Tax.
3.09.020 Purpose.
Pursuant to the requirements of the California Department of Tax and Fee Administration, this chapter is adopted to achieve the following, among other purposes, and directs that the provisions of this chapter be interpreted in order to accomplish those 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 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 of the Revenue and Taxation Code, which authorizes the city to adopt this chapter 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 transaction 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 therefor 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 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 chapter. (e) To provide transactions and use tax revenue to the city to be used to fund city services, including, but not limited to: maintaining neighborhood police patrols, fire protection, 911 emergency response times, maintaining crime suppression and investigation, city streets and pothole repair, parks and recreation, job creation and economic improvement programs, senior and youth services, and with any transactions and use tax revenue received being placed into the city’s general fund.
(f) To provide transaction and use tax revenue to the city that can be spent for unrestricted general revenue purposes.
3.09.030 Operative date;
If approved by State legislation, this chapter shall be operative on the first day of the first calendar quarter commencing at least 110 days after the adoption of the ordinance codifying this chapter and approval by a vote of the electorate, in accordance with Revenue and Tax Code section 7265.
3.09.040 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 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 contract.
3.09.050 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 three- quarters of one percent of the gross receipts of any retailers for the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.
3.09.060 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 or her 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.
3.09.070 Use tax rate.
A use 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 chapter for storage, use, or other consumption in said territory at the rate of three- quarters of one percent 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.
3.09.080 Adoption of provisions of state law.
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 (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.
3.09.090 Limitation 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. The substitution, however, 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, 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 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:
(i) 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
(ii) 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 of the Revenue and Taxation Code.
(c) “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.
3.09.100 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 seller’s permit shall not be required by this chapter.
3.09.110 Exemptions and exclusions.
(a) There shall be excluded from the measure of the transactions 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 or her 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:
(i) 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
(ii) 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 the ordinance codified in this chapter.
(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 the ordinance codified in this chapter. (5) For the purposes of subsections (b)(3) and (b)(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 chapter, 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.l 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 chapter. (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 chapter. (5) For the purposes of subsections (c)(3) and (c)(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 subsection (c)(7) of this section, 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 regis tered 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 chapter 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.
(e) Nothing in this chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States, or the Constitution of the
State of California.
3.09.120 Amendments.
(a) 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 a nd 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. (b) The city council may otherwise amend this chapter without submitting the amendment to the voters for approval in any manner which does not constitute a tax “increase” as that term is defined in Government Code section 53750(h). The city council may amend this chapter without voter approval provided such amendments do not increase the tax rate; extend the duration of the tax; revise the methodology for calculating the tax, such that a tax increase would result; impose the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of law); or terminate the tax.
(c) Notwithstanding any provision to the contrary, any proposed change to the tax rate imposed under this chapter shall be submitted to the vote of the people.
3.09.130 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.
3.09.140 Audit Requirements.
The proceeds resulting from the transactions and use tax shall be deposited into the city’s general fund and become subject to the same audit requirements as other general fund revenue. Any auditor’s report shall include an accounting of the revenues received from the transactions and use tax and shall be presented to the city council and made available for public review.
Section 2. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), under Section 15061(b)(3) of the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment.
Section 3 . S
everability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.
Section 4. Passage. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance by the City Council of the City of Campbell, California, and cause the same to be published in accordance with State law.
Section 5. Effective Date. This Ordinance shall go into effect in accordance with Elections Code Section 9217, and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Campbell voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that election by resolution. The levying and collection of the transaction and use tax shall be as specified in the Ordinance.
Section 6. Termination Date. The authority to levy the tax imposed by this ordinance shall continue until ended by voters.
Section 7 . Upon approval by the voters, the City Clerk shall certify the passage of this ordinance; publish the same by applicable law and forward a copy of the adopted ordinance to the Board of Equalization.
PASSED AND ADOPTED by the City Council at its regular meeting of August 8, 2024 by the following roll call vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
________________________
Susan M. Landry, Mayor
ATTEST: APPROVED AS TO FORM:
________________________
Andrea Sanders, City Clerk William Seligmann, City Attorney
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL SUBMITTING
A TRANSACTIONS AND USE (SALES) TAX MEASURE TO THE VOTERS AT THE NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION AND TAKING CERTAIN
RELATED ACTIONS
WHEREAS, the City of Campbell needs reliable sources of funding to help our City remain a safe and vibrant place to live, run a business, work and raise a family;
WHEREAS, a local, Campbell -approved funding measure would provide local control over local funds, for local needs; and
WHEREAS, voter-approved local funding will help to fund priorities identified by the public, such as to maintain and improve neighborhood police patrols, fire prevention and emergency medical response services, urban wildfire protection, crime suppression/investigation, pothole and street repair, parks, sports and recreation centers, and other city facilities and services; and
WHEREAS, voter-approved funding will provide funds for Campbell , and all measure funds are to be spent locally to benefit Campbell residents; and
WHEREAS, The City is committed to transparent, responsible fiscal stewardship and these funds are subject to the City’s annual financial audits and publicly disclosed spending practices; and
WHEREAS, Revenue & Taxation Code Section 7285.9 authorizes the City Council to levy a transactions and use tax for general purposes if the ordinance proposing that tax is approved by a two-thirds vote of all members of the City Council and the tax is approved by a majority vote of the qualified voters of the city voting In an election on the issue; and
WHEREAS, the City Council has adopted an Ordinance, entitled, "An Ordinance of the City of Campbell Amending Chapter 3.09 of Title 3 of the Campbell Municipal Code Imposing a Transactions and Use Tax To Be Administered by the California Department of Tax and Fee Administration" (the "Tax Ordinance"); and
WHEREAS, the City Council desires to submit the Tax Ordinance to electorate at an election to be held on November 5, 2024 ( the “Election;”) and
WHEREAS, the City Council has requested that the Election be consolidated with the statewide election held on that date, and the City Council has requested the assistance of Santa Clara County in the conduct of the Election; and
WHEREAS, arguments for and against said measure, as well as rebuttals, may be filed in accordance with applicable provisions of the law pursuant to Elections Code and the text of the measure shall be printed on the ballot in the voter information portion of the sample ballot.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Campbell does resolve and order as follows:
1. The City Council hereby orders, pursuant to Section 9222 of the Elections Code, that the Tax Ordinance, which is attached hereto as Exhibit "A" and incorporated herein by reference, be submitted to the voters at the Election. If a majority of the voters voting upon the ballot measure vote in its favor, the Tax Ordinance shall be considered operative on the date the vote is declared by the City Council and as set forth in Tax Ordinance.
2. The question submitted shall appear on the ballot as follows:
3. The City Clerk is instructed to transmit the Tax Ordinance to the City Attorney along with a request that an impartial analysis be prepared for inclusion in the Voters' Pamphlet materials.
Pursuant to Elections Code section 9280, the City Attorney shall prepare an impartial analysis, which shall be filed with the City Clerk's office no later than August 19, 2024 by 12:00 P.M.
4. Arguments for and against the Measure may be submitted to the City Clerk's office, until 12 p.m. on August 13 , 2024. Rebuttal arguments will be permitted and must be received in the City Clerk's office by 12:00 pm on August 19, 2024.
5. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.
6. Notice of the time and place of holding of 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.
7. Pursuant to Section 10400 et seq. of the Elections Code, the Board of Supervisors of Santa Clara County is requested to consolidate the election on this ballot measure with other elections held on the same day in the County.
8. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to Section 10411 of the Elections Code.
9. Pursuant to Section 10002 of the Elections Code, the Board of Supervisors is requested to permit the County Election Official to render all services specified by Section 10418 of the Elections Code relating to the election, for which services the City agrees to reimburse the Campbell Local Funding/Community Services Measure . Shall the measure providing funding for Campbell’s fiscal stability and general government services, such as: police/fire protection; 911 emergency medical response; road and storm drain repairs; disaster preparation; homeless services; recreation programs; keeping public spaces and parks safe/clean, by establishing a locally controlled 1/2¢ transaction and use (sales) tax providing approximately $7,000,000 annually until ended by voters; requiring independent audits and public disclosure of spending, be adopted?
YES
NO
County, in accordance with current County pro-rations and allocation procedures.
10. T
he City Clerk shall file a certified copy of this Resolution with the Santa Clara County Registrar of Voters.
11. T
he City Clerk is hereby authorized to do all things necessary and proper to implement the provisions of this Resolution, including certifying the passage and adoption of this Resolution.
PASSED AND ADOPTED by the City Council this 8th day of August, 2024, by the following roll call vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
APPROVED:
___
_____________________
Susan M. Landry, Mayor
A
TTEST:
___
_____________________
Andrea Sanders, City Clerk
EXHIBIT A
ORDINANCE NO. 2315
AN ORDINANCE OF THE CITY OF CAMPBELL AMENDING CHAPTER 3.09, OF TITLE 3 OF THE CAMPBELL MUNICIPAL CODE IMPOSING A TRANSACTIONS AND USE (SALES) TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
WHEREAS, the City of Campbell has authority, pursuant to Article XIIIC of the California Constitution and Revenue and Tax Code section 7285.9 et seq. to propose a transactions and use tax to be adopted by a majority vote of qualified voters, and is authorized by Elections Code section 9222 to submit an ordinance directly to the voters at the general election to be held on November 5, 2024,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES ORDAIN AS FOLLOWS:
Section 1. Amendment. Contingent upon approval by the voters at the election of November 5, 2024, and authorization of the proposed one- half cent increase in the City’s transaction and use tax by legislation of the State of California, Chapter 3.09, “City of Campbell Transactions and Use Tax” of Title 3 of the Campbell Municipal Code is hereby amended to read in its entirety as follows:
3.09.010 Short title.
This chapter shall be known as the City of Campbell Transactions and Use Tax.
3.09.020 Purpose.
Pursuant to the requirements of the California Department of Tax and Fee Administration, this chapter is adopted to achieve the following, among other purposes, and directs that the provisions of this chapter be interpreted in order to accomplish those 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 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 of the Revenue and Taxation Code, which authorizes the city to adopt this chapter 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 transaction 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 therefor 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 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 chapter. (e) To provide transactions and use tax revenue to the city to be used to fund city services, including, but not limited to: maintaining neighborhood police patrols, fire protection, 911 emergency response times, maintaining crime suppression and investigation, city streets and pothole repair, parks and recreation, job creation and economic improvement programs, senior and youth services, and with any transactions and use tax revenue received being placed into the city’s general fund.
(f) To provide transaction and use tax revenue to the city that can be spent for unrestricted general revenue purposes.
3.09.030 Operative date;
If approved by State legislation, this chapter shall be operative on the first day of the first calendar quarter commencing at least 110 days after the adoption of the ordinance codifying this chapter and approval by a vote of the electorate, in accordance with Revenue and Tax Code section 7265.
3.09.040 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 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 contract.
3.09.050 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 three- quarters of one percent of the gross receipts of any retailers for the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.
3.09.060 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 or her 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.
3.09.070 Use tax rate.
A use 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 chapter for storage, use, or other consumption in said territory at the rate of three - quarters of one percent 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.
3.09.080 Adoption of provisions of state law.
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 (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.
3.09.090 Limitation 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. The substitution, however, 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, 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 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:
(i) 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
(ii) 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 of the Revenue and Taxation Code.
(c) “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.
3.09.100 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 seller’s permit shall not be required by this chapter.
3.09.110 Exemptions and exclusions.
(a) There shall be excluded from the measure of the transactions 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 or her 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:
(i) 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
(ii) 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 the ordinance codified in this chapter.
(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 the ordinance codified in this chapter. (5) For the purposes of subsections (b)(3) and (b)(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 chapter, 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.l 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 chapter. (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 chapter. (5) For the purposes of subsections (c)(3) and (c)(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 subsection (c)(7) of this section, 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 regis tered 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 chapter 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.
(e) Nothing in this chapter shall be construed as imposing a tax upon any person
or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States, or the Constitution of the State of California.
3.09.120 Amendments.
(a) 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 a nd 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. (b) The city council may otherwise amend this chapter without submitting the amendment to the voters for approval in any manner which does not constitute a tax “increase” as that term is defined in Government Code section 53750(h). The city council may amend this chapter without voter approval provided such amendments do not increase the tax rate; extend the duration of the tax; revise the methodology for calculating the tax, such that a tax increase would result; impose the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of law); or terminate the tax.
(c) Notwithstanding any provision to the contrary, any proposed change to the tax rate imposed under this chapter shall be submitted to the vote of the people.
3.09.130 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.
3.09.140 Audit Requirements.
The proceeds resulting from the transactions and use tax shall be deposited into the city’s general fund and become subject to the same audit requirements as other general fund revenue. Any auditor’s report shall include an accounting of the revenues received from the transactions and use tax and shall be presented to the city council and made available for public review.
Section 2. Compliance with CEQA. The City Council hereby finds that the action to adopt this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), under Section 15061(b)(3) of the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment.
Section 3 . S everability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.
Section 4. Passage. The City Clerk is hereby ordered and directed to certify the passage of this Ordinance by the City Council of the City of Campbell, California, and cause the same to be published in accordance with State law.
Section 5. Effective Date. This Ordinance shall go into effect in accordance with Elections Code Section 9217, and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Campbell voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that election by resolution. The levying and collection of the transaction and use tax shall be as specified in the Ordinance.
Section 6. Termination Date. The authority to levy the tax imposed by this ordinance shall continue until ended by voters.
Section 7 . Upon approval by the voters, the City Clerk shall certify the passage of this ordinance; publish the same by applicable law and forward a copy of the adopted ordinance to the Board of Equalization.
P
ASSED AND ADOPTED by the City Council at its regular meeting of August 8, 2024 by the following roll call vote:
AYES:
NOES:
Councilmembers:
Councilmembers:
ABSTAIN: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
________________________
Susan M. Landry, Mayor
AT
TEST: APPROVED AS TO FORM:
________________________
Andrea Sanders, City Clerk William Seligmann, City Attorney