FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
MEETING DATE March 4, 2026
PREPARED FOR Mayor and Town Council
PREPARED BY Heather Abrams, Town Manager
Janet Coleson, Town Attorney
SUBJECT Adopt Three (3) Resolutions Calling for a Special Election to Extend the Term of and Increase of the Measure C Sales Tax
RECOMMENDATION
Staff recommends that the Town Council:
1. Adopt Resolution 2026-03 submitting to the qualified voters of the Town of Fairfax a General Tax Measure increasing the rate of the Town’s Transactions and Use (Sales) Tax from three-quarters percent (0.75%) to one percent (1%) and extending the term of the tax by removing its sunset, at a Special Municipal Election to be held on Tuesday, June 2, 2026;
2. Adopt Resolution 2026-04 requesting the Board of Supervisors of the County of Marin to consolidate a special municipal election to be held on June 2, 2026 with the Statewide Primary Election to be held on that date pursuant to elections code section 10403;
3. Adopt Resolution 2026-05 providing for the filing of direct and rebuttal arguments and setting rules for the filing of written arguments regarding a Town measure to be submitted at the June 2, 2026 Special Municipal Election.
BACKGROUND
An important portion of the Town’s annual revenue needed to provide Police, Fire, road repair and other general services comes from a general sales tax measure commonly referred to Measure C. Measure C expires or sunsets in March of 2027 and needs to be renewed in order continue providing these Town services at the same level. Below is a summary of the information regarding Measure C.
What is Measure C:
• Fairfax’s Transactions and Use Tax (TUT), commonly referred to as a “sales tax”. • Currently set at ¾% on taxable retail sales.
• Originally approved by voters in November 2016.
• Expires March 31, 2027, unless extended by voters.
• Revenues remain local to Fairfax.
• Approved by 76.63% of Fairfax voters in 2016 (above 50% + 1 needed in 2016). • Was a renewal of a previous sales tax known as Measure D.
Purpose of Measure C:
• General-purpose revenue source.
• Supports the Town’s General Fund.
• Provides stable funding for core municipal services.
• Requires annual independent audits of revenues and expenditures.
Measure C revenues are used for:
• Police and Fire services
• Street and infrastructure maintenance
• General Town services and operations
• Capital improvements
Measure C revenues and percentage of funding for town services:
ANALYSIS/DISCUSSION
Based on direction received from the full Council at the Strategic Planning Workshop on February 13, 2026, staff recommends approving the attached resolutions to place the ballot measure before voters in the June election. The Council must act now in order to avoid a gap in Town funding for critical services, such as Police and Fire. If the Council unanimously approves the resolution, staff will work quickly with the registrar of voters to place the sales tax renewal on the ballot for June 2026. The town attorney will create an impartial analysis of the measure. Residents and stakeholders may campaign for or against the measure, and Town staff may only provide factual information as part of their work. Because the June 2026 ballot will also contain the statewide primary election, voter turnout is expected to be high.
Council Members directed that the voters be given the opportunity to vote for an advisory measure expressing the Town’s intent to use the funds for Fairfax Police, Fire and Road Repairs. The Council wants the sales tax to be at the 1% level to keep the maximum amount at the local Fairfax level, and not to be used by the state or other agencies.
If Fairfax voters approve the sales tax renewal in June 2026, collection of the tax will not begin until April 1, 2027, after the current Measure C sales tax has expired. Measure C was approved by Fairfax voters in 2016 and was a renewal of a previous sales tax known as Measure D.
Per the full Council’s direction, staff drafted the attached ballot measure, with the following features:
• Election date: June 2, 2026 (Statewide Primary)
• 1% on taxable retail sales
• Collection starting April 1, 2027 (after Measure C sunset) • General Tax
• Funds core services (i.e. Police, Fire, etc.)
• Funds stay in Fairfax
• Advisory Measure (A) allows voters to instruct the Town to use funds for Police, Fire, Road Repair, plus a second measure allows voters to approve the General Tax (B). • Votes required to approve the measure: 50% +1
• Council must make a finding of fiscal emergency resulting from the loss of the funds generated by the tax if it is not extended
FY 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 Budgeted Revenue $649,000 $681,000 $755,465 $904,156 $1,090,561 $1,064,620 $1,044,000 $1,082,820 $1,078,180 Percentage of Source of Funds 6.80% 6.50% 6.80% 5.20% 7.00% 7.20% 7.50% 7.30% 7.20% Measure C
• Requires unanimous Council vote (5–0) to be placed on the ballot in June • Deadline for Council to place on June ballot: March 6, 2026
FISCAL IMPACT
Although the Town is currently in solid financial condition, the loss of Measure C revenues would cause a fiscal emergency. After property tax, Measure C is the town’s second largest source of revenue.
See the orange wedge at the bottom of the Source of Funds figure below (also shown on page 4 of the Town’s adopted budget).
If the general sales tax is not renewed the Town will lose over 7% of its annual revenue, causing a fiscal emergency. This fiscal emergency will result in significant cuts to town services, particularly in Police, Fire, and road repair. Police and Fire are the Town’s top expenses.
See the blue and red wedges on the right side of the Use of Funds figure below (also shown on page 4 of the Town’s adopted budget).
For example, the largest expense category for the Town is the Police budget, of which 92% are personnel costs (i.e. officers). In Fiscal Year (FY) 2025-26 Fairfax Police Department budget was $5.2 million dollars, and total budgeted Measure C revenue in FY 2025-26 was $1.08 million. Because Measure C is a general sales tax, it funds all general fund activities, including police, fire, road repair, planning and building, facilities, recreation and arts programs, etc. Fairfax has no enterprise funds in which fees fully support services.
Additionally, due to the special timing rules under State law to implement transactions and use taxes, if the Town were to wait until November 3, 2026 to hold an election on this tax measure, Measure C could sunset before any voter-approved extension could be implemented. This would result in a significant gap in tax collection and the loss of revenue for important Town services. Placing the renewal measure on the June 2, 2026 statewide primary election would allow voters to consider the measure without creating a fiscal emergency that would necessitate a significant reduction in Town services to residents.
Reasons Council would make findings that Measure C must be renewed on the Ballot in June 2026:
• The loss of this revenue would cut revenue significantly, necessitating significant cuts in essential services.
• Voter approval is needed in June 2026 to avoid a gap in funding, which would necessitate reductions in service.
In California, property tax (the Town’s largest source of revenue) is limited by measures such as Prop 13.
As a result, inflation, the cost of goods and services, and economic pressures frequently rise more swiftly than property tax. The Town must keep up with rising costs in order to continue providing services such as Police and Fire, which are the Town’s two largest expenses. Renewing the Measure C sales tax at the 1% level, rather than at the previous ¾% level, is estimated to yield an additional $300,000 annually. This will help the Town address the miss-match between steady property tax revenues and more steeply
escalating costs. Escalating costs are due to larger economic factors, such as inflation, the labor market, and the cost of living in the area.
During the February 13, 2026 Strategic Planning Workshop, the full Council expressed its direction to place the 1% sales tax measure before voters in June in order to keep the maximum amount of sales tax locally in Fairfax, which is needed to continue to provide critical services such as Police, Fire and Road Repair.
ATTACHMENT
A. Resolution 2026-03 Calling for a Special Election
B. Resolution 2026-04 Requesting Consolidation with the County of Marin C. Resolution 2026-05 Providing for the filing of Arguments and Rebuttals Town of Fairfax
Resolution No. 2026-03
RESOLUTION NO. 2026-03
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX, CALIFORNIA,
SUBMITTING TO THE QUALIFIED VOTERS OF THE TOWN OF FAIRFAX A GENERAL TAX MEASURE INCREASING THE RATE OF THE TOWN’S TRANSACTIONS AND USE (SALES) TAX FROM THREE-QUARTERS PERCENT (0.75%) TO ONE PERCENT (1%) AND EXTENDING THE
TERM OF THE TAX BY REMOVING ITS SUNSET, AT A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 2, 2026.
WHEREAS, pursuant to Fairfax Municipal Code, Chapter 3.10 (FMC Sections 3.10.010 through
3.10.160), approved by Fairfax voters as “Measure C” at the November 8, 2016 General Municipal Election, the Town currently imposes a general transactions and use/sales tax on the sale and use of tangible personal property sold at retail within the Town, at a rate of three-quarters percent (0.75%) of the transaction (“Transactions and Use Tax” or “TUT”); and WHEREAS, pursuant to Fairfax Municipal Code Section 3.10.160, the TUT is set to expire/“sunset” on March 31, 2027, after which the Town shall no longer be authorized to collect the TUT unless it is “continued or reestablished by a majority vote of Fairfax voters pursuant to California Proposition 218”; and
WHEREAS, the Town Council desires to place a measure on a June 2, 2026 Special Municipal Election ballot that would increase the TUT rate from three-quarters percent (0.75%) to one percent (1%) of the transaction and which would extend its term by removing its sunset; and WHEREAS, the Town’s TUT is a general tax, the revenue of which is placed in the Town’s general fund and is used to pay for important general Town services; and WHEREAS, pursuant to Proposition 218 (California Constitution, Article XIIIC, Section 2(b)) any measure proposing to impose a new general tax, or increase or extend an existing general tax must be consolidated with a “regularly scheduled general election” for members of the Town Council, unless the Town Council makes certain fiscal emergency findings by unanimous vote to place the measure on a special election at another date; and
WHEREAS, the next “regularly scheduled general election” at which Town Council members are to be elected is not until the General Municipal Election to be held on Tuesday, November 3, 2026; and WHEREAS, for the following reasons, the health, safety and general welfare of the citizens of the Town would be endangered if the Town were unable to place this Measure before its voters until November 3, 2026; and
WHEREAS, after property tax, Measure C is the town’s second largest source of revenue; and WHEREAS, if the general sales tax is not renewed the Town will lose over 7% of its annual revenue; and
WHEREAS, among the Town’s top expenses that are funded by this general sales tax are police response and fire protection and prevention; and
WHEREAS, for example, Measure C represents over 20% of the total budget for Police services; and
Town of Fairfax
Resolution No. 2026-03
WHEREAS, Measure C funds many other town programs and services, such as fire, road repair, planning and building, facilities, recreation and arts programs; and WHEREAS, if Measure C sunsets and is not extended, the Town will have to consider significant cuts to the Town programs and services identified above; and WHEREAS, due to the special timing rules under State law to implement transactions and use taxes, if the Town were to wait until November 3, 2026 to hold an election on this tax measure, Measure C could sunset before any voter-approved extension could be implemented, resulting in a potential gap in tax collection and loss of revenue for important Town services; while a June 2, 2026 election would allow voters to consider the measure in such time that, if they approve the measure, there would be not gap in tax collection between the sunset of Measure C and this measure; and WHEREAS, all of the circumstances described above create an emergency situation warranting the placement of this Measure on a special municipal election to be held on the next available election ballot date to permit the voters to decide pursuant to Proposition 218; and WHEREAS, the next available legal election ballot date for a special municipal election is the Statewide Primary Election to be held on Tuesday, June 2, 2026; and WHEREAS, the specific terms of the Measure are attached hereto as Exhibit “A” and by this reference made an operative part hereof, and in accordance with all applicable laws.
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF FAIRFAX, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. Recitals. The Town Council of the Town hereby finds and determines that the foregoing recitals are true and correct, are incorporated herein and by this reference made an operative part hereof.
SECTION 2. Declaration of Emergency. Pursuant to California Constitution, Article XIIIC, Section 2(b), the Town Council, by a unanimous vote, hereby declares the existence of an emergency in that there are imminent financial risks and dangers, as described above, to the public welfare and the Town’s financial ability to provide necessary municipal services without disruption, so that a special municipal election prior to the General Municipal Election on November 3, 2026 is necessary to address such risks and dangers.
SECTION 3. Submission of Ballot Measure. The Town Council of the Town, pursuant to its right and authority as contained in California Constitution, Article XIIIC, Section 2(b), California Elections Code Section 9222 and California Revenue and Taxation Code Section 7285.9, by unanimous vote, hereby orders the Measure attached hereto as Exhibit “A” to be submitted to the qualified voters of the Town at a Special Municipal Election to be held on Tuesday, June 2, 2026. The proposed Measure shall be in the form attached hereto as Exhibit “A” to this Resolution and is incorporated by this reference as if fully set forth herein.
Town of Fairfax
Resolution No. 2026-03
SECTION 4. Ballot Question. The Town Council, pursuant to its right and authority, does hereby order that the ballot question for the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the election to be held at a Special Municipal Election on Tuesday, June 2, 2026, in addition to any other matters required by law, there shall be printed substantially the following:
“Fairfax Town Services Measure. Shall the measure to
extend the Town’s sales tax by removing its sunset and to increase its rate from ¾% to 1%, generating approximately $1,300,000 annually in local funds until ended by voters and that cannot be taken away by the State, to maintain general Town services, such as public safety and emergency
response, improve infrastructure such as repairing and
repaving streets, subject to annual independent audits, be adopted?”
YES
NO
SECTION 4. Election Procedures. The Town Clerk is authorized, instructed, and directed to procure and furnish, or cause to be procured and furnished, any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.
SECTION 5. Impartial Analysis. Pursuant to Elections Code section 9280, the Town Council hereby directs the Town Clerk to transmit a copy of the Measure to the Town Attorney. The Town Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analysis to the Town Clerk not later than the deadline for submittal of direct arguments for or against the Measure.
The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the Town Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: “The above statement is an impartial analysis of Ordinance or Measure ____. If you desire a copy of the ordinance or measure, please call the Office of the Town Clerk at (415) 458-2343 and a copy will be mailed at no cost to you.”
SECTION 6. Notice of Election. Notice of the election is hereby given and the Town Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.
SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed in the voter information guide, and a statement shall be printed on the ballot pursuant to Elections Code section 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the Town Clerk.
SECTION 8. Filing with County. The Town Clerk shall, not later than the 88th day prior to the Special Municipal Election to be held on Tuesday, June 2, 2026, file with the Board of Supervisors and the County Registrar of Voters of the County of Marin, State of California, a certified copy of this Resolution.
Town of Fairfax
Resolution No. 2026-03
SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The Town Clerk shall post notice in the Clerk’s office of the specific dates that the examination period will run.
SECTION 10. CEQA. The Town Council hereby finds and determines that the ballot measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).
SECTION 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.
SECTION 12. Effective Date of Resolution. This Resolution shall become effective upon its adoption.
SECTION 13. Certification of Resolution. The Town Clerk shall certify to the adoption of this Resolution.
APPROVED and ADOPTED by the Town Council and signed by the Mayor and attested by the Town Clerk this 4th day of March, 2026.
______________________________________
Stephanie Hellman, Mayor
Town of Fairfax
Attest:
___________________________________
Christine Foster
Deputy Town Clerk
Town of Fairfax
Resolution No. 2026-03
STATE OF CALIFORNIA )
COUNTY OF MARIN ) ss.
TOWN OF FAIRFAX )
I HEREBY CERTIFY that the foregoing Resolution No. 2026-03 was duly adopted by the Town Council of the Town of Fairfax at a regular meeting thereof, held on the 4th day of March, 2026, by the following vote of Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
___________________________________
Christine Foster
Deputy Town Clerk
Town of Fairfax
Resolution No. 2026-03
EXHIBIT “A”
TEXT OF GENERAL TAX MEASURE/ORDINANCE
INCREASING THE RATE OF THE TOWN OF FAIRFAX
TRANSACTIONS AND USE (SALES) TAX FROM THREE-QUARTERS PERCENT (0.75%) TO ONE PERCENT (1%) AND EXTENDING THE TERM OF THE TAX BY REMOVING ITS SUNSET [attached behind this page]
Town of Fairfax
Resolution No. 2026-03
ORDINANCE
AN ORDINANCE OF THE PEOPLE OF THE TOWN OF FAIRFAX, CALIFORNIA, AMENDING CHAPTER 3.10 OF TITLE 3 (REVENUE AND FINANCE) OF THE FAIRFAX MUNICIPAL CODE
INCREASING THE RATE OF THE TOWN OF FAIRFAX TRANSACTIONS AND USE (SALES) TAX FROM THREE-QUARTERS PERCENT (0.75%) TO ONE PERCENT (1%) AND EXTENDING THE
TERM OF THE TAX BY REMOVING ITS SUNSET
THE PEOPLE OF THE TOWN OF FAIRFAX DO HEREBY ORDAIN AS FOLLOWS:
WHEREAS, pursuant to California Revenue and Taxation Code section 7285.9 the Town of Fairfax (“Town”) is authorized to levy a Transactions and Use Tax for general purposes, subject to majority voter approval; and
WHEREAS, the People of the Town desire to amend Chapter 3.10 of the Fairfax Municipal Code increasing the Town’s Transactions and Use Tax (“TUT”) from the rate of three-quarters percent (.75%) to one percent (1%) on the sale and/or use of all tangible personal property sold at retail in the Town, and extending the term of the TUT by removing its sunset.
NOW, THEREFORE, THE PEOPLE OF THE TOWN OF FAIRFAX DO HEREBY ORDAIN AS FOLLOWS:
Section 1. Title and Text. This Ordinance shall be known as the “Fairfax General Transactions and Use Tax”, the full text of which is set forth in Attachment “1”, attached hereto and incorporated herein by reference.
Section 2. Approval by the Town Council. Pursuant to California Revenue 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 Town Council on March 4, 2026.
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 Town of Fairfax voting at the Special Municipal Election of June 2, 2026. It shall be deemed adopted when the Town 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.
I hereby certify that the Fairfax General Transactions and Use Tax Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the town of Fairfax on the 2nd day of June, 2026.
Town of Fairfax
Resolution No. 2026-03
______________________________________
Stephanie Hellman, Mayor
Town of Fairfax
Attest:
___________________________________
Christine Foster
Deputy Town Clerk
Town of Fairfax
Resolution No. 2026-03
ATTACHMENT “1”
“CHAPTER 3.10 - GENERAL TRANSACTIONS AND USE TAX
Sections:
3.10.010 - Title.
3.10.020 - Operative Date.
3.10.030 - Purpose.
3.10.040 - Contract With State.
3.10.050 - Transactions Tax Rate.
3.10.060 - Place of Sale.
3.10.070 - Use Tax Rate.
3.10.080 - Adoption of Provisions of State Law.
3.10.090 - Limitations on Adoption of State Law and Collection of Use Taxes.
3.10.100 - Permit Not Required.
3.10.100 - Exemptions and Exclusions.
3.10.120 - Annual Audit.
3.10.130 - Amendments.
3.10.140 - Enjoining Collection Forbidden.
3.10.150 - Severability
3.10.160 - Termination Date/Duration of Tax.
Sections:
3.10.010 – Title.
This chapter shall be known as the “Fairfax General Transactions and Use Tax Ordinance”. The Town of Fairfax hereinafter shall be called "Town." This chapter shall be applicable in the incorporated territory of the town.
3.10.020 – Operative Date.
“Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of this chapter, the effective date being as set forth herein.
3.10.030 – Purpose.
This chapter 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 Town 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 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.
Town of Fairfax
Resolution No. 2026-03
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 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 ordinance.
3.10.040 - Contract With State.
Prior to the operative date, the Town 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 Town shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
3.10.050 - 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 Town at the rate of three-quarters percent (3/4%) until April 1, 2027, at which point the tax shall be imposed at the rate of one percent (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.
3.10.060 - Place of Sale.
For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
3.10.070 - Use Tax Rate.
An excise tax is hereby imposed on the storage, use or other consumption in the Town 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 one percent (1%) of the sales price of the property.
The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
3.10.080 - Adoption of Provisions of State Law.
Town of Fairfax
Resolution No. 2026-03
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.
3.10.090 - Limitations on Adoption of State Law and Collection of Use Taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the name of this Town 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 Town 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:
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 “Town” 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 Town” 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.
Town of Fairfax
Resolution No. 2026-03
3.10.100 - Permit not Required.
If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this chapter.
3.10.110 - Exemptions and Exclusions.
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 town, city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any stateadministered 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 Town which is shipped to a point outside the Town, 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 Town 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-Town 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-Town 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 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 this chapter.
5. For the purposes of subparagraphs (3) and (4) of this subsection, 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 Town of tangible personal property:
Town of Fairfax
Resolution No. 2026-03
1. The gross receipts from the sale of which have been subject to a transactions tax under any stateadministered 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 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 subparagraphs (3) and (4) of this subsection, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the Town 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 Town or participates within the Town 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 Town or through any representative, agent, canvasser, solicitor, subsidiary, or person in the Town under the authority of the retailer.
7. “A retailer engaged in business in the Town” shall also include any retailer of any of the following:
vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the Town.
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.
3.10.120 - Annual Audit.
By no later than December 31 of each year, the Town shall cause an independent auditor to complete a "Fairfax Transactions and Use Tax Ordinance Report." Such report shall review whether the tax revenues collected pursuant to this chapter are collected, managed, and expended in accordance with the requirements of this chapter.
Town of Fairfax
Resolution No. 2026-03
3.10.130 - Amendments.
All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part
1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.
3.10.140 - 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 Town, or against any officer of the State or the Town, 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.
3.10.150 – Severability.
If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of this chapter and the application of such provision to other persons or circumstances shall not be affected thereby.
3.10.160 – Termination Date/Duration of Tax.
The authority to levy the tax imposed by this chapter shall continue until it is repealed.
Town of Fairfax
Resolution No. 2026-04
RESOLUTION NO. 2026-04
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX, CALIFORNIA,
REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF MARIN TO CONSOLIDATE A SPECIAL MUNICIPAL ELECTION TO BE HELD ON JUNE 2, 2026 WITH THE STATEWIDE
PRIMARY ELECTION TO BE HELD ON THAT DATE PURSUANT TO ELECTIONS CODE SECTION 10403
WHEREAS, on March 4, 2026, the Town Council of the Town of Fairfax (“Town Council”) adopted Resolution No. 2026-03, calling a Special Municipal Election to be held on June 2, 2026 for voters to consider a general transactions and use (sales) tax measure; and WHEREAS, it is therefore desirable that the Special Municipal Election be consolidated with the Statewide Primary Election to be held on the same date and that within the Town of Fairfax (“Town”) the precincts, voting centers, ballot drop box locations, and election officers of the two elections be the same, and that the election department of the County of Marin (“County”) canvass the returns of the Special Municipal Election and that the election be held in all respects as if there were only one election.
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF FAIRFAX DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Request for Consolidation. Pursuant to the requirements of Elections Code section 10403, the Board of Supervisors of the County of Marin (“Board of Supervisors”) is hereby requested to consent and agree to the consolidation of a Special Municipal Election with the Statewide Primary Election on Tuesday, June 2, 2026, for the purpose of submitting to the voters the following special parcel tax initiative measure:
Section 2. Measure Language. The measure is to appear on the ballot as follows:
“Fairfax Town Services Measure. Shall the measure to extend the Town’s sales tax by removing its sunset and to increase its rate from ¾% to 1%, generating approximately $1,300,000 annually in local funds until ended by voters and that cannot be taken away by the State, to maintain general Town services, such as public safety and emergency response, improve infrastructure such as repairing and repaving streets, subject to annual independent audits, be adopted?” YES
NO
Section 3. Canvass of Returns. The County election department is authorized to canvass the returns and perform all other proceedings incidental to and connected with the Special Municipal Election. The Election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. Pursuant to Elections Code sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide Primary Election.
Section 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election.
Section 5. Costs. The Town Council determines and declares that the Town will pay to the County the reasonable and actual expenses incurred by the County by the consolidation of the Special Town of Fairfax
Resolution No. 2026-04
Municipal Election with the Statewide Primary Election. The Town shall reimburse the County for services performed when the work is completed and upon presentation to the Town of a properly approved bill. The Town Manager of the Town of Fairfax is authorized and directed to pay for the expenses incurred after receiving a statement from the County of Marin.
Section 6. Filing of Resolution. The Town Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of Marin.
Section 7. Certification. The Town Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
APPROVED and ADOPTED by the Town Council and signed by the Mayor and attested by the Town Clerk this 4th day of March, 2026.
______________________________________
Stephanie Hellman, Mayor
Town of Fairfax
Attest:
___________________________________
Christine Foster
Deputy Town Clerk
Town of Fairfax
Resolution No. 2026-04
STATE OF CALIFORNIA )
COUNTY OF MARIN ) ss.
TOWN OF FAIRFAX )
I HEREBY CERTIFY that the foregoing Resolution No. 2026-04 was duly adopted by the Town Council of the Town of Fairfax at a regular meeting thereof, held on the 4th day of March, 2026, by the following vote of Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
___________________________________
Christine Foster
Deputy Town Clerk
Town of Fairfax
Resolution No. 2026-05
RESOLUTION NO. 2026-05
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX, CALIFORNIA,
PROVIDING FOR THE FILING OF DIRECT AND REBUTTAL ARGUMENTS AND SETTING RULES
FOR THE FILING OF WRITTEN ARGUMENTS REGARDING A TOWN MEASURE TO BE SUBMITTED AT THE JUNE 2, 2026 SPECIAL MUNICIPAL ELECTION WHEREAS, a Special Municipal Election is to be held in the Town of Fairfax, California on June 2, 2026, at which there will be submitted to the voters the following measure:
“Fairfax Town Services Measure. Shall the measure to extend the Town’s sales tax by removing its sunset and to increase its rate from ¾% to 1%, generating approximately $1,300,000 annually in local funds until ended by voters and that cannot be taken away by the State, to maintain general Town services, such as public safety and emergency response, improve infrastructure such as repairing and repaving streets, subject to annual independent audits, be adopted?”
Yes
No
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF FAIRFAX, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Direct Arguments. That the Town Council authorizes (i) the Town Council or any member(s) of the Town Council, (ii) any individual voter eligible to vote on the above measure, (iii) a bona fide association of such citizens or (iv) any combination of voters and associations, to file a written argument in favor of or against the Town measure, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the argument until and including the date fixed below by the Town Clerk, after which no arguments for or against the Town measure may be submitted to the Town Clerk.
The deadline to submit direct arguments for or against the Town Measure pursuant to this Resolution is Monday, March 16, 2026. Each argument shall not exceed 300 words and shall be filed with the Town Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.
Section 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, when the Town Clerk has selected the primary arguments for and against the Town Measure which will be printed and distributed to the voters, the Clerk shall send copies of the primary argument in favor of the Measure to the authors of the primary argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the Town Clerk not later than Monday, March 23, 2026. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.
Town of Fairfax
Resolution No. 2026-05
Section 3. June 2, 2026 Election. That the provisions of Sections 1 and 2 shall apply only to the election to be held on June 2, 2026, and shall then be repealed.
Section 4. Certification. The Town Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions.
APPROVED and ADOPTED by the Town Council and signed by the Mayor and attested by the Town Clerk this 4th day of March, 2026.
______________________________________
Stephanie Hellman, Mayor
Town of Fairfax
Attest:
___________________________________
Christine Foster
Deputy Town Clerk
Town of Fairfax
Resolution No. 2026-05
STATE OF CALIFORNIA )
COUNTY OF MARIN ) ss.
TOWN OF FAIRFAX )
I HEREBY CERTIFY that the foregoing Resolution No. 2026-05 was duly adopted by the Town Council of the Town of Fairfax at a regular meeting thereof, held on the 4th day of March, 2026, by the following vote of Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
___________________________________
Christine Foster
Deputy Town Clerk