City of Fullerton, CAJuly 2, 2024
Transactions and Use Tax Information
Sales and Use Tax & Transactions and Use Tax
Sales and Use Tax also referred to as Sales Tax or Bradley Burns Transactions and Use Tax also referred to as Add-On Sales Tax or Transactions Tax Not levied on:
Medication
Groceries (non-prepared)
Rent
2 3
Transactions Tax
Transactions Taxes may be approved locally and added to the combined state and local sales and use tax rate.
Transactions Tax generally applies to the jurisdiction to which goods are delivered or placed in use.
Differs from Sales Tax which generally applies to the jurisdiction where the sale is negotiated (point of sale). 4 Transactions Tax Ballot Measure
General Purpose
Requires 67% or 2/3 vote of City Council to place on ballot Requires 50% + 1 or majority of voters to approve
Special Purpose
Requires 50% + 1 or majority of City Council to place on ballot Requires 67% or 2/3 majority of voters to approve
5 Transactions Tax
Sales Tax Rate of 7.75%
Generates approximately $30 million of General Fund revenue annually Transactions Tax Rate of 1%
Estimated to generate approximately $30 million of General Fund revenue annually 6 Questions?
STAFF RECOMMENDATION
Staff seeks direction from City Council.
ALTERNATIVE OPTIONS
Request staff to bring back a Resolution for consideration to place general purpose Transactions and Use tax on November Ballot.
Request staff to bring back a Resolution for consideration to place special purpose Transactions and Use tax on November Ballot.
Receive and file and take no further action at this time.
Request a Resolution for some other revenue measure previously discussed by the City Council. 7