1 CITY OF COLTON
City Hall, Council Chambers
650 N. La Cadena Drive
Colton, CA 92324
Website: www.coltonca.gov
Mayor Frank J. Navarro
Council Members:
David J. Toro - District 1
Ernest R. Cisneros - District 2
Kenneth J. Koperski - District 3
Dr. Luis S. Gonzalez - District 4
John R. Echevarria - District 5
Isaac T. Suchil - District 6
City Treasurer Aurelio De La Torre
City Manager William R. Smith
City Attorney Carlos Campos
City Clerk Carolina R. Padilla
AGENDA
CITY COUNCIL,
COLTON UTILITY AUTHORITY, COLTON PUBLIC FINANCING AUTHORITY,
COLTON HOUSING AUTHORITY
SPECIAL MEETING
MONDAY, DECEMBER 12, 2022 – 5:00 P.M.
CITY HALL, COUNCIL CHAMBERS
RULES OF DECORUM
To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order, as provided for in the City Council Manual of Procedure. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public. Ge nerally, the City's rules of decorum prohibit comments or actions which willfully disrupt the meeting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first obtaining permission from the Presiding Officer. The City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.
OPEN SESSION
5:00 P.M.
OPEN SESSION CALLED TO ORDER
INVOCATION Pastor Scott Thibodo- Centerpoint Church
FLAG SALUTE
ROLL CALL
2 PUBLIC COMMENT Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding City Clerk items and other general comments about matters not on the agenda; however, any matter that requires action will be referred to staff for investigation and report at a subsequent Council meeting. The Council is prohibited by law from discussing or taking immediate action on items during th is public comment period.
Persons desiring to submit paperwork to the City Council Members shall provide copy of any paperwork to the City Clerk for the Official Record.
Speakers will be limited to 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.
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CITY CLERK ITEMS
CANVASS OF ELECTION
(1) CERTIFICATION OF ELECTION- Approve and Adopt a Resolution of the City Council Reciting the Fact of the General Municipal Election held on November 8, 2022, Declaring the Result and such other matters as provided by Law, RESOLUTION NO. R-123-22.
[Staff Person: Carolina R. Padilla]
COMMENTS FROM OUTGOING CITY OFFICIALS
A. Personal Comments from outgoing City Officials
B. Presentation to outgoing City Officials from the City of Colton
OATH OF OFFICE
City Clerk Carolina R. Padilla calls the newly-elected City Officials forward. The Oath of Office and the Certificate of Election is issued by City Clerk Carolina R. Padilla.
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RECEPTION IN THE LOBBY
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OPEN SESSION CALLED TO ORDER
ROLL CALL
COMMENTS FROM INCOMING CITY OFFICIALS
A. Personal Comments from incoming City Officials
3 MAYOR AND COUNCIL ITEMS
GIFT DISCLOSURES
Prior to rendering a decision in any proceeding involving a license, permit, contract or other entitlement pending before the City Council, any Council member who has received been promised a gift or gifts aggregating $50.00 or more in value within the preceding twelve months from a party or participant in the proceeding shall disclose that fact either orally or in writing during open session. This disclosure shall be made part of the official public record of the proceeding, either as part of the minutes of the meeting or as a separate writing filed with the city. (CMC Section 2.04.030) AB 1234 ORAL REPORTS
Members of the City Council shall provide brief reports on meetings attended at the expense of the city. (GC Section 53232.3(d))
PUBLIC COMMENT Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding Business items and other general comments about matters not on the agenda; however, any matter that requires action will be referred to staff for investigation and report at a subsequent Council meeting. T he Council is prohibited by law from discussing or taking immediate action on items during this public comment period.
Persons desiring to submit paperwork to the City Council Members shall provide copy of any paperwork to the City Clerk for the Official Record.
Speakers will be limited to 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.
BUSINESS ITEMS
(1) CDTFA Resolutions and Agreements - Adopt a Resolution of the City Council of the City of Colton Authorizing the California Department of Tax and Fee Administration (CDTFA) to Administrate and Implement Measure S, a Local Transaction and Use Tax (TUT); Authorize the City Manager to en ter into a Preparatory and Administration Agreement with the CDTFA; and Adopt a Resolution of the City Council of the City of Colton Authorizing Specified City Officials and Hinderliter, de Llamas & Associates to Examine Records Relating to the TUT Collected by the CDTFA, RESOLUTION NO. R-124-22 & RESOLUTION NO. R-125-
22. [Staff Person: Stacey Dabbs]
ADJOURNMENT
4 I, Stephanie Vargas, Deputy City Clerk or my designee, hereby certify that a true and correct, accurate copy of the foregoing agenda was posted , at least seventy-two (72) hours prior to the meeting per Government Code 54954.2, at the following locations:
City of Colton City Hall 650 N. La Cadena Drive
City of Colton Website, www.coltonca.gov <http://www.coltonca.gov>
PROCEDURES FOR ADDRESSING CITY COUNCIL
For the Official Record, it is requested that you obtain a card from the City Clerk and complete it by noting a specific item number on the Agenda, if applicable, or you can identify the subject that you wish to address under the Public Comme nt portion of the Agenda. The City Council encourages public input on all City issues within the Rules of Decorum. Speakers will be limited to the time periods provided on the Agenda; provided, however, that the presiding officer shall have certain discre tion to extend or limit time as provided for in the City Council Manual of Procedure.
RULES OF DECORUM
To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order, as provided for in the City Council Manual of Procedure. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public. Generally, the City's rules of decorum prohibit comments or actions which willfully disrupt the meeting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first obtaining permission from the Presiding Officer. The City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.
NOTICE TO PUBLIC
Staff reports or other written documentation relating to each item referred to, on the Agenda, are available for public inspection at the following locations: Office of the City Clerk, 650 N. La Cadena Drive, Colton, CA; City of Colton Public Library, 656 9 th St., Colton, CA; or the City of Colton Internet Website, www.coltonca.gov. Any person having questions concerning any item on the Agenda may call the City Clerk at 370 -5191 to make inquiry concerning the nature of the item described on the Agenda. The City Clerk shall direct inquiries to the appropriate office.
All matters listed under the Consent Calendar are considered by the City Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council votes on the m otion, unless councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.
5 In compliance with the American with Disabilities Act, if you need special assistance to participate in a City Meeting, please contact the City Clerk’s Office at 909-370-5001. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
LEGAL CHALLENGES
If you challenge in court any discu ssion or action taken concerning an item on this Agenda, you may be limited to raising only those issues you or someone else raised during the meeting or in written correspondence delivered to the City at or prior to the City's consideration of the item at the meeting.
MANUAL OF PROCEDURE
The City Council adopted its Manual of Procedure pursuant to Resolution No. R -150-07; Amended by Minute Action on December 2, 2014 and adopted by Resolution No. R -03-15 on January 20, 2015. Copies are available in the Office of the City Clerk.
ITEM NO. A
STAFF REPORT
DATE: DECEMBER 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: CAROLINA PADILLA, CITY CLERK
SUBJECT: CERTIFICATION OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 8, 2022.
RECOMMENDED ACTION
Staff recommends that the City Council take the following action:
Adopt Resolution No. R-123-22, certifying the results of the General Municipal Election held on November 8, 2022, which was consolidated with the Statewide General Election.
BACKGROUND
In accordance with City of Colton’s status as a General Law City, elections are held every two years.
On May 4, 2022, the City Council approved Resolution No. R-31-22 calling for placement on the Ballot to enact a one -cent (1 ¢) General Transactions and Use (Sales) Tax (Measure S) , Ordinance No. O -08-22, and to order a General Municipal Election to be held on Tuesday, November 8, 2022, which will be consolidated with the Statewide General Election
At the June 21, 2022 Council meeting t he City Council approved Resolution No. R -64-22 to call for the election of certain officers of the City and to order a General Municipal Election to be held on Tuesday, November 8, 2022, which will be consolidated with the Statewide General Election for the following:
1. District 1 Councilmember for full term of two years
2. District 2 Councilmember for full term of two years
3. District 3 Councilmember for full term of four years
4. District 4 Councilmember for full term of four years A
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Staff Report to the Mayor and City Council
Certification of Election 2022
December 12, 2022
5. Mayor, at large, for full term of four years
ISSUES/ANALYSIS
The San Bernardino County of Registrar of Voters (ROV) conducted the elections at the City’s request; completed a canvas of the votes; and provided certification of those results , which is included as Exhibit “A” to the resolution.
FISCAL IMPACTS
Certifying the election results has no direct fiscal impact. The estimate d cost for the election from the Registrar of Voters (ROV) is $90,000; the invoice is expected approximately ninety (90) days after the Certification of Elec tion by ROV (March 2023). The FY2022-23 adopted budget included appropriations for the election expense in General Fund City Clerk Elections Expense Account No. 100-6010-6010-2401-0000-000.
ALTERNATIVES
1. Provide alternative direction to staff.
ATTACHMENT
1. Resolution No. R-123-22
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022) A.a
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Attachment: Resolution No. R-123-22 (3877 : Certification of Election 2022)
ITEM NO. 1
STAFF REPORT
DATE: DECEMBER 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STACEY DABBS, FINANCE DIRECTOR
SUBJECT: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COLTON AUTHORIZING THE CALIFORNIA DEPARTMENT OF
TAX AND FEE ADMINISTRATION (CDTFA) TO ADMINISTRATE
AND IMPLEMENT MEASURE S, A LOCAL TRANSACTION AND
USE TAX (TUT); AUTHORIZE THE CITY MANAGER TO ENTER
INTO A PREPARATORY AND ADMINISTRATION AGREEMENT
WITH THE CDTFA; AND ADOPT A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF COLTON AUTHORIZING SPECIFIED
CITY OFFICIALS AND HINDERLITER, DE LLAMAS &
ASSOCIATES TO EXAMINE RECORDS RELATING TO THE TUT
COLLECTED BY THE CDTFA, RESOLUTION NO. R-124-22 &
RESOLUTION NO. R-125-22.
RECOMMENDED ACTION
Staff recommends that the City Council take the following action:
1. Adopt Resolution R -124-22 authorizing the California Department of Tax and Fee Administration (CDTFA) to administrate and implement Measure S, a Local Transaction and Use Tax (TUT) approved by voters on November 8, 2022.
2. Authorize the City Manager or his designee to enter into a Preparatory and Administration Agreement with the CDTFA.
3. Adopt Resolution R -125-22 authorizing specified City Officials and Hinderliter, de Llamas & Associates to examine records relating to the TUT collected by the CDTFA.
1 Packet Pg. 20
Staff Report to the Mayor and City Council
CDTFA Resolutions and Agreements
December 12, 2022
BACKGROUND
On May 4, 2022, City Council adopted Resolutions R -31,22, R-32-22, and R -33-22 to place a one-cent transactions (sales) and use tax (TUT) on the November 2022 ballot to allow voters an opportunity to determine the level of service they desire for the community. On Tuesday, November 8, 2022, Measure S was approved by voters by a majority vote in the General Election. On December 8, 2022, the San Bernardino County Registrar of Voters certified the election results officially declaring that Measure S passed, and Resolution R -123-22 is on the December 12, 2022 City Council agenda to officially certify the City of Colton’s election results.
ISSUES/ANALYSIS
Pursuant to Revenue and Taxation Code Section 7265, the voter -approved transactions and use tax is scheduled to become operative on April 1, 2022. In order to implement the new tax and establish proper administrative components, the CDTFA requires the following actions are taken by City Council:
a) Adopt a resolution authorizing the City Manager to execute agreements with the CDTFA for implementation of a Local Transaction and Use Tax (Measure S), including the “Preparatory Agreement” attached as Exhibit A and the “Administrat ive Agreement” attached as Exhibit B.
b) Adopt a resolution authorizing examination of sales, use, and transactions tax records.
Due to the confidential nature of the information, the CDTFA requires that the City formally designate only the necessary individ ual(s) and/or firm(s) authorized to examine these records.
c) Approve the Agreement for Transactions Tax Audit and Information Services. This agreement effectively extends the services of Hinderliter, de Llamas and Associates (HdL) to include the new local transactions and use tax. HdL has been providing various tax services to the City for decades, including the above services for the existing sales tax-related revenue received by the City.
FISCAL IMPACTS
The CDTFA will begin collection of the one -cent transactions and use tax beginning April 1, 2023. The City expects to receive its first advance payment at the end of June 2023 . Hinderliter de Llamas and Associates, the City’s consultant for sales tax analysis, estimated based on present sales tax reve nues and future projections that approximately $9 million will be generated annually, thus approximately $2.25 million is projected through the end of FY2022-23.
The City is responsible for payment to the CDTFA for preparatory costs, including costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing of forms, developing instructions for the CDTFA’s staff and taxpayers, and other necessary preparatory costs which shall include the CDTFA’s direct and 1 Packet Pg. 21
Staff Report to the Mayor and City Council
CDTFA Resolutions and Agreements
December 12, 2022
indirect costs as specified by Section 11256 of the Government Code. The maximum amount of all preparatory costs to be paid by the City shall not, in any event, exceed $175,000.
ALTERNATIVES
1. Provide staff alternative direction.
ATTACHMENT
1. Resolution R-124-22
2. Resolution R-125-22
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RESOLUTION NO. R-124-22
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COLTON, CALIFORNIA, AUTHORIZING THE CITY
MANAGER TO EXECUTE AGREEMENTS WITH THE
CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL
TRANSACTIONS AND USE TAX.
WHEREAS, on November 8, 2022, the City Council approved Ordinance No. O -08-22, amending the City Municipal Code and providing for a local transactions and use tax; and WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and
WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes; and WHEREAS, the Department requires that the City Council authorize the agreements;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON DO ES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement.
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APPROVED AND ADOPTED this 12th day of December, 2022.
FRANK J. NAVARRO, Mayor
ATTEST:
CAROLINA R. PADILLA, City Clerk
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements) Exhibit A
AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Colton, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:
1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department 's costs for preparatory work i nclude costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department 's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.
These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department . The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.
4. Any disput e as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
6. The amount to be paid by City for the Department 's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements) 2 7. Communications and notices may be sent by firs t class United States mail.
Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
City of Colton
Finance Director
650 N. La Cadena Drive
Colton, CA 92324
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.
CITY OF COLTON CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
By By
William R. Smith Administrator
City Manager Local Revenue Branch
(Rev. 11/17)
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements) Exhibit B
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Colton has adopted, and the voters of the City of Colton (hereafter called “City” or “District”) have approved by the required majority vote, the City of Colton Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration , (hereinafter called the “Department”) and the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. O-08-22, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements) (Rev. 10/17) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code s hall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fu nd for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.
C. Transmittal of money.
1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City’s self -imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A st atement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.
D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements) (Rev. 10/17) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use T ax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears.
The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.
G. Records of the Department.
When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorize d personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department 's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.
H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department . The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
A. Allocation. In the administration of the Department 's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements) (Rev. 10/17) 4
1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Department , to all distr icts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.
2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts re funded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self -declared district taxes for the period for which the determination, billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraf t. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate. A notification is complete when deposited in the mail.
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements) (Rev. 10/17) 5
Communications and notices to be sent to the Department shall be addressed to:
California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:
City of Colton
650 N. La Cadena Drive
Colton, CA 92324
Attention: Finance Director
Unless otherwise directed, tra nsmittals of payment of District transactions and use taxes will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April 1, 2023. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements) (Rev. 10/17) 6
ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non- appealable judgment that the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.
B. Costs of adm inistration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.
2. City will pay to Department and allow Department to retain Department 's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.
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4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of a ctually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records curr ently maintained by the Department . The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month fol lowing the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.
CITY OF COLTON CALIFORNIA STATE DEPARTMENT OF
TAX AND FEE ADMINISTRATION
By By
William R. Smith Administrator
City Manager Local Revenue Branch
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements)
ORDINANCE NO. O-08-22
AN ORDINANCE OF THE PEOPLE OF THE CITY OF COLTON, CALIFORNIA, ADDING CHAPTER 3.30 TO TITLE 3 OF THE COLTON MUNICIPAL CODE TO ENACT A ONE-CENT (1¢) GENERAL TRANSACTIONS AND USE TAX (SALES TAX)
TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION
WHEREAS, pursuant to California Revenue and Taxation Code s ection 7285.9 the City of Colton (“City”) is authorized to levy a Transactions and Use Tax for general purposes, subject to majority voter approval; and
WHEREAS, the P eople of the City desire to levy a Transactions and Use Tax for general purposes until repealed to fund important general City services, at a rate of one cent (1¢); and
WHEREAS, if approved by the City Council and Colton voters, the Transactions and Use Tax Ordinance will be incorporated into Chapter 3.30 of Title 3 of the Colton Municipal Code.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF COLTON DO
HEREBY ORDAIN AS FOLLOWS:
Section 1. Title and Text. This Ordinance shall be known as the Colton Transactions and Use Tax Ordinance, the full text of w hich is set forth in Attachment “1”, attached hereto and incorporated herein by reference.
Section 2. Approval by the City Council. Pursuant to California Government Code s ection 53724 and R evenue and Taxation Code section 7285.9, this Ordinance was duly approved for placement on the ballot by a minimum two-thirds (2/3) supermajority of all members of the City Council on May 3, 2022.
Section 3. Approval by the Voters. Pursuant to California Elections Code section 9217, this Ordinance shall be deemed adopted and take effect only if approved by a majority of the eligible voters of the City of Colton voting at the General Municipal Election of November 8, 2022. It shall be deemed adopted w hen the City Council has certified the results of that election by resolution and shall take effect ten (10) days thereafter.
Section 4. Operative Date. “Operative Date” for the Transactions and Use Tax means the first day of the first calendar quarter commencing more than 110 days after the date this Ordinance is adopted, as set forth in Section 3 above.
Section 5. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements) I hereby certify that the Colton Transactions and Use Tax Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of Colton on the 8th day of November, 2022.
CITY OF COLTON
FRANK J. NAVARRO, MAYOR
ATTEST:
_________________________________
CAROLINA R. PADILLA
CITY CLERK
APPROVED AS TO FORM:
_______________________________
CARLOS CAMPOS
CITY ATTORNEY
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements)
Chapter 3.30 - Transactions and Use Tax
Sections:
3.30.010 - Purpose.
3.30.020 - Contract With State.
3.30.030 - Transactions Tax Rate.
3.30.040 - Place of Sale.
3.30.050 - Use Tax Rate.
3.30.060 - Adoption of Provisions of State Law.
3.30.070 - Limitations on Adoption of State Law and Collection of Use Taxes.
3.30.080 - Permit Not Required.
3.30.090 - Exemptions and Exclusions.
3.30.100 - Amendments.
3.30.110 - Enjoining Collection Forbidden.
3.30.120 - Duration of Tax
Sections:
3.30.010 - Purpose.
This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the C ity to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that inc orporates 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 therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicab le 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 ordinance.
3.30.020 - Contract With State.
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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 Departme nt of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
3.30.030- Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one per cent ( 1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.
3.30.040 - Place of Sale.
For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out -of-state destination. The gross receipts from such sales shall include delivery charges, when such c harges 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.
3.30.050 - Use Tax Rate.
An excise tax is hereby imposed on the storage, use or other consumpt ion in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one percent (1%) of the sales price of the property. The sal es 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.
3.30.060 - Adoption of Provisions of State Law.
Except as otherwise provided in this ordinance and exc ept insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.
3.30.070 - Limitations on Adoption of State Law and Collection of Use Taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
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A. Wherever the State of Califo rnia is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word “State” is used as a part of the title of the State Controller, State Treasurer, California Victim Compensation Board , 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 Ordinance.
3. In those sections, including, but not necessari ly limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
4. In reference to 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 of the Revenue and Taxation Code and in the definition of that phrase in Section 6203.
1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to e ach other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
3.30.080 - Permit not Required.
If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance.
3.30.090 - Exemptions and Exclusions.
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A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the us e of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of- City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
b. With respect to commercial vehicles, by registration to a place of business out -of- City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this s ubsection, 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 leas e upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:
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1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lea se the property for an amount fixed by a lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this subsection, storage, use, or other consumption, or possession of, or exercise of any right or power ove r, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representat ive, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicl e Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storag e, use or other consumption of which is subject to the use tax.
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Attachment: Resolution R-124-22 (3871 : CDTFA Resolutions and Agreements)
3.30.100 - Amendments.
All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided howeve r, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
3.30.110 - Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
3.30.120 – Duration of Tax.
The tax imposed by this chapter shall continue until this ordinance is repealed.
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RESOLUTION NO. R-125-22
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COLTON, CALIFORNIA , AUTHORIZING EXAMINATION
OF SALES OR TRANSACTIONS AND USE TAXES RECORDS
WHEREAS, pursuant to Ordinance Number O -08-22 of City of Colton (District), and Revenue and Taxation Code section 7270, the District entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and WHEREAS, the Board of the District deems it desirable and necessary for authorized officers, employees and representatives of the District to examine confidential sales or transactions and use ta x records of the Department pertaining to transactions and use taxes collected by the Department for the District pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax record s of the Department;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That the City Manager, Finance Director, or other officer or employee of the District designated in writing by the City Manager or Finance Director to the California Department of Tax and Fee Administration is hereby appointed to represent the District wit h authority to examine sales or transactions and use tax records of the Department pertaining to transactions and
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use taxes collected for the District by the Department pursuant to the contract between the District and the Department.
SECTION 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of District transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the District:
(a) City Administration
(b) Revenue Management and Budgeting
(c) Community and Economic Development
(d) Business License Tax Administration
The information obtained by examination of Department records shall be used only for those governmental functions of the District listed above.
SECTION 3. That Hinderliter de Llamas & Associates is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to transactions and use taxes collected for the District by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the District and the Hinderliter de Llamas & Associates:
a) has an existing contract with the District to examine those sales or transactions and use tax records;
b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
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d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.
BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of District transactions and use taxes by the Department pursuant to the contract between the District and the Department and for those purposes relating to the governmental functions of the District listed in Section 2 of this resolution.
SECTION 4. That this resolution supersedes all prior re solutions of the Board of the District adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.
APPROVED AND ADOPTED this 12th day of December, 2022.
FRANK J. NAVARRO, Mayor
ATTEST:
CAROLINA R. PADILLA, City Clerk
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