ITEM NO. 22.
PAGE 5 OF 5
SUBJECT: Interim Community Center
DATE: June 10, 2024
CONCLUSION (continued):
The following summarizes staff’s recommendations and requests for Council’s direction throughout this report:
Hybrid Meeting Equipment: Staff looks forward to Council’s direction on whether to pursue one portable system or two systems to accommodate both the first and second floors.
Office for Shared Desk Space for Community Partners: Staff recommends that Council direct staff to proceed with the keypad for the office and to provide any direction regarding the nominal charge to community partners to cover LGS Recreation’s related operating expenses.
Other Improvements: Staff recommends that Council direct staff to proceed with the large hall divider and safety lighting. Staff looks forward to Council’s direction regarding the second large hall divider for storage, the lobby lighting upgrade, and any other nearterm improvements of interest.
COORDINATION:
The preparation of this report was coordinated with the Town Manager’s Office, Parks and Public Works, and the Town Attorney.
FISCAL IMPACT:
The $877,614 allocated to the Community Center Development Fund can be used for near-term improvements to the Adult Recreation Center/Community Center. Additional funding may be required to support the operational and administrative needs of coordinating and supporting the service providers if the providers do not pay those costs directly.
ENVIRONMENTAL ASSESSMENT:
This informational update and request for direction is not a project defined under CEQA, and no further action is required.
Attachment:
1. Input Received from January 25, 2024 Community Meeting
ITEM NO. 22.
Input Received from January 25, 2024 Interim Community Center Community Meeting ATTACHMENT 1
1. What near-term improvements would you like to see at the Adult Recreation Center/Interim Community Center to make the space more welcoming for all ages? • Ability for seniors to meet 2 hours/week – Continuing, Large screen TVs/Internet for lounge, Earthquake compliance/retrofit, No improvements • Sliding doors
• More storage in the conference room
• Enclose patio for storage, more usage
• AV upgrades -- current projectors flaky
• Noise abatement in large hall
• Commercial kitchen update
• Good to have in-wall sound system
• Lighting -- stretch down for better cleaning
• Water damage throughout the building
• Restroom, emergency lights upgrade
• Sensors in bathroom
• Restroom automatic door openers
• Uneven parking lots – unsafe esp. for seniors –add handrails • More lighting in parking lot
• Cover on the entrance for rain
• More cameras in the parking lot
• Cosmetic improvements (Ask Nancy and users)
• Play area for children
• Panic button (mental health)
• Well-defined purpose of rooms reconfiguration
• Survey of current users of this space and potential users and their road blocks to current use
• This building as a central hub to coordinate
• Upgrading tech to modernize
• Equipment/tech for hybrid/virtual meetings in several designated areas/rooms of various sizes (includes AV camera, OWL 360˚, ADA compliant, etc) • Better utilization of 2nd floor to maximize space, i.e. size of room, combine services, remediation
• Closet/storage space for non-profits
• Access to kitchen
• Food pantry for storage/food prep for unhoused individuals • One room that service providers can use
• Translation services
• Minor repairs and upgrades (including entryway)
• Suggestion box in lobby somewhere easily accessible
• Make empty space more inviting
• Functional upgrades – See LGS Rec list
o LGS Rec List: Recommended ARC Building Improvements 2/13/2023
ITEM NO. 22.
Input Received from January 25, 2024 Interim Community Center Community Meeting ATTACHMENT 1
Replace large hall dividing doors – current divider door is broken Solution for table and chair storage – possible partition wall in large hall for storage?
AV upgrades in conference rooms / large hall
ARC in-wall sound system in large hall
Noise abatement in large hall – wall or ceiling sound dampening? More secure storage in large hall - repurpose large hall outside patio for storage?
Deepen shelves in existing large hall locked cabinets Paint/refresh large hall kitchen cabinets and counter Pendant lighting in the lobby – easier to clean and brighter light! Restroom upgrades - emergency lights in restrooms during power outage, sensors on sinks/toilets/soap/towels so they are touchless Parking lot changes to increase safety
More lighting, ramps, cameras, handrails
Awning at entry to protect against rain
Address water damage
• Welcoming entry – sliding glass doors in north wall to a patio • Electronic signage with activities and schedule
• Modern AV and IT upgrades – local and remote capabilities • Lighting – External and emergency
• Improve lobby -- space decorate -- user friendly
• Lighting
• Better internet capability
• Zoom
• Microphone speaker unit
• More video screens – adequate size
• Comfortable rooms for group meetings of 20 people
• Soung proofing enhancements
• Big room into 2 soundproof rooms
• Break room for staff
• Enhance kitchen
• Long term -- NUMU, police space could be repurposed
• Long term -- Use existing inventory of buildings for community usage • How should the money be allocated? Initial improvements and reserve funds for future com. Center reconstruction/new center (i.e. $300k saved for future plan/design for the new center); keep extra $ in the community center fund
2. What types of community partners and services would you like to see at the Adult Recreation Center/Interim Community Center?
• Ability for seniors to get together/talk
• West Valley Community Services – Already serving LG, pantry, brown bag
ITEM NO. 22.
Input Received from January 25, 2024 Interim Community Center Community Meeting ATTACHMENT 1
• HUB model – place to go
• Mental Health Service with CASSY
• Co-sharing space – Day assignment to different organizations • Life long learning – LGS Rec
• Speaker series catering to community—Could also use LG Theater (Oshner) • If $866K is not used, donate to senior 501c3 as seed to get it started • Live Oak Nutrition – food scarcity – “Food with a friend” • “To good to go” app – partner with them
• Dest for RYDE program (senior lobby)
• Sourcewise (house rich, cash poor)
• Fund grant writer
• Case manager/social worker
• Meeting place for other clubs/non-profits
• Mental health services
• Fundraisers
• Financial support for those who need it
• General place to enhance the quality of life for residents • Plays the role of the Civic Center
• Navigator system (housing, youth and family, mental health) – one stop shop • Facilitate creation of new organizations
• West valley community services
• Rotation of different types of partners/non-profits
• A room dedicated to non-profits
• Plant-based Advocates non-profit (local in LG)
• Health and nutrition education (esp. plant-based education) and how it relates to health/chronic illnesses
• Certain number of days allocated to community groups to host events at no charge • Community discussion groups (where seniors feel safe, ADA accessibility, and can speak freely)
• Speaker series
• Mental health services – CASSY, Navigators, County
• Medicare reps
• Veterans affairs Benefits
• Ombudsman
• Health care services
• Business mentoring (SCORE)
• Police dept – fraud/scam prevention
• Transportation
• West Valley College
• Is the Town going to pay providers to staff the ARC, or do potential providers have to pay?
• Person to answer questions in the lobby
ITEM NO. 22.
Input Received from January 25, 2024 Interim Community Center Community Meeting ATTACHMENT 1
• Concierge
• Guidance for transportation
• Life issues – Life and death
• Reference to transit agency
• Community meeting room (seniors) to discuss local issues • True senior center
3. What criteria do you believe should be used when selecting community partners and services?
• 501c3 or JPA (Joint Powers Authority)
• Should already be serving LG or close by South Bay community • Should they be financially solvent?
• Are they going to pay?
• Case manager/social worker could funnel ppl/issues to the right area • Create “volunteer support base” list – helping to provide resources • Student nurses to do BP check, wellness check
• Youth centric space/activities – Hangout, game console, etc • Services
• We should survey for services in demand
• Check what other communities have
• Basic needs (housing, mental health, food, nutrition) • Rideshare services (free/community organized)
• Intentional avoidance of duplication of services
• Maslow’s hierarchy of needs
• Would providing this venue expand the capacity of organizations to provide services? • Non-profit predominant (free/at cost)
• Non-profits as a priority (but not an absolute)
• Provide services for residents of Los Gatos
• Provide services that promote our health and wellness and benefit society (health, environment, humanity, social responsibility)
• Providers of social services (e.g. case management and other services that funds have been allocated to)
• Unduplicated services
• Reporting requirements (residency percent of service utilization, funding needs/use) • Provider plan for space utilization
• Operational/administrative needs/footprint
• Non-commercial
• Responsive to community needs/alignment to senior roadmap • Track record/community presence
ITEM NO. 22.
Input Received from January 25, 2024 Interim Community Center Community Meeting ATTACHMENT 1
• 55+ members have priority to set up meetings or any topic • Local issues discussion
• A place for 55+members to meet in a safe and accommodating space on Town owned property to have discussion on local regional and national topics, the intent is a forum with [non legible] behavior, where [non legible] can advocate their views, this should be easy to set up without lawyers and discouraging requirements
ITEM NO. 22.
Commissioner Lead Transcribed Notes 1
ATTACHMENT 1
Feb. 4, 2024
To: Katy Nomura, Asst. Town Manager
Fr: Eleanor Yick
Re: Community Feedback – purple group ( front group on the left) Members of the group: Tom Picraux, Rob Moore, Darryl, friend of Darrly’s, 2 women from Plant Based Advocates and Eleanor Yick. The top comments under each question are listed in order.
1. Near term improvements to make the space more welcoming for all ages:
1.Equipment ( tech) for hybrid/virtual meetings in several designated areas/room of various sizes, particularly large room on main floor. (Includes 360 degree camera and meets all ADA regs for access, hearing, sight impaired, etc.
2.Better utilization of second floor to maximize usage, i.e. size of room, remediation and combine some rooms. One room that service providers can use.
3.Minor repairs entering building and upgrades
•Closet space for storage for non-profits
•Translation services
•Access to kitchen
•Food pantry for storage, food prep for unhoused individuals •Suggestion box in lobby that is easily accessible
•Make entry space more inviting
2.What types of Community Partners and Services:
1. West Valley Community Services
2 .Health and Nutrition education ( i.e. plant based and how it relates to health and chronic illnesses)
3.Community Discussion Groups: where seniors feel safe and can speak freely.
Space must be ADA compliant. Speaker series.
•Rotation of different types of partners and non profits •A room dedicated to non-profits
•Certain number of days allocated to community groups at no cost to host events
ITEM NO. 22.
Commissioner Lead Transcribed Notes 1
ATTACHMENT 1
3. Criteria to select Community Partners:
1. Non-profits as a priority but not a deal breaker.
2. Provide services to the residents of Los Gatos.
3.Provide services that promote our health and wellness and benefit society (health, environment, humanity, social responsibility. Provides social services, such as case management & other services that funds have been allocated to.
4. The Group also discussed how the money should be allocated and the idea of saving some funds for a dedicated new community center and agreed:
1.Initial improvements and reserve fund for future community centernew or remodeled ( i.e. $300K saved for planning, design, etc.
2. Keep saved/extra funds in a dedicated, restricted fund ( i.e.
Community Center Fund.
ITEM NO. 22.
Commissioner Lead Transcribed Notes 2
ATTACHMENT 1
#1: Near Term Improvements:
Functional upgrades: See LGS Rec. list
Welcoming Entry Way-sliding glass door in north wall to a patio Electronic Signage with activities and schedule
Modern A/V & IT upgrades; local and remote capabilities Lighting-external and emergency
#2: Community Partners and Services:
Mental Health Services
CASSY
Navigators
County
West Valley Community Services
West Valley College
Medicare Reps.
Veteran’s affairs-Benefits
Ombudsman
Health Care Services
Business Mentoring (SCORE)
Police Department-Fraud/Scam prevention
Transportation
Question: Is the town going to pay providers to staff the space or do potential providers have to pay?
#3: Community Partner Priority Criteria:
Unduplicated service
Reporting requirements
Residency % of service utilization
ITEM NO. 22.
Commissioner Lead Transcribed Notes 2
ATTACHMENT 1
Funding needs/use
Provider plan for space utilization
Operational/Administrative needs/Footprint
Noncommercial
Responsive to community needs/Alignment to Senior Road Map Track record/community presence
ITEM NO. 22.
Commissioner Lead Transcribed Notes 3
ATTACHMENT 1
1. What near-term improvements would you like to see at the Adult Recreation Center/Interim Community Center to make the space more welcoming for all ages? Near-term improvements would be smaller-scale improvements such as improving signage or upgrading conference room technology for hybrid meetings. Larger-scale improvements would be more costly and would be reserved for the full remodel of the building in the future. Tonight’s discussion will focus on near-term improvements. If you are not sure whether your idea falls into the “near-term” category, please share it, and we will do our best to determine whether it would be most appropriate for the near-term or future.
Some general improvement areas:
• Replace large hall dividing doors - large hall space must be configurable (current door is reported to be broken)
• Solution for table and chair storage - building partition wall in large hall for storage? • AV upgrades in conference rooms / large hall
• Noise abatement in large hall
• More secure storage in large hall ( repurpose patio for storage?) • Paint/refresh kitchen cabinets and counter
• In-wall sound system in Large Hall
• Pendant lighting in the lobby - easier to clean plus brighter light • Look for and fix water damage
• Restroom upgrades - emergency lights in restrooms for power outage, sensors on sinks, toilets, soap, towel holders
• Automatic door openers
• Parking lot changes focusing on safety - lights, direction signs etc. currently parking lots are uneven and hence unsafe for seniors. Install cameras in the parking lot • More lighting, ramps, install cameras and handrails
• Cover at the entry to protect against rain
2. What types of community partners and services would you like to see at the Adult Recreation Center/Interim Community Center? The Town is exploring providing space for community partners to provide services at the Adult Recreation Center in partnership with LGS Recreation. The intent would be to work with LGS Recreation to ensure there is minimal impact to existing programming, if any. This would mean there may be limited space available for community partners and the Town would appreciate feedback on which services should be prioritized. It is possible that multiple community partners could provide services on a rotation throughout the week to allow a variety of services using minimal space.
• Do not disrupt existing activities, esp for seniors. Maintain the ability for seniors to meet at least 2 hours per week.
• Partner with West valley Community Services - already serving Los Gatos, Support services like pantry, brown bag lunch
• Envision it as a HUB - place to go for everyone including seniors as well as youth. Co-sharing concept - daily assignment to different organizations
ITEM NO. 22.
Commissioner Lead Transcribed Notes 3
ATTACHMENT 1
• Partner with CASSY to provide mental health services
• Life-long learning opportunities - via speaker series or specific keynotes • Support Live Oak Nutrition - "Food with a friend". leverage kitchen and relationship with West Valley Community Services to provide food/nutritions • Potential partnership with "Too Good to go" App to provide food options to the needy at the center
• Desk for RYDE program providing both service/information • Create Senior Lobby
• Fund GRANT writer to seek grants for the center
• Fund case manager/social worker
• Youth centric space/activities for youths to hangout, with game consoles etc • Student nurses for basic health check like BP
3. What criteria do you believe should be used when selecting community partners and services? Since space will be limited, it is likely there will be more potential community partners than there is space available, even if they share the space on a rotational basis. Criteria will be used to evaluate community partners to select the top candidates.
For example, criteria could include a requirement that they currently provide services to the Los Gatos community or that they are a nonprofit.
• 501c(3) or JPA (Joint Powers Authority)
• Prioritize if already serving Los Gatos or surrounding communities • Financial sustainability/solvency and be able to pay for the usage • Prioritize org with existing or commitment to create "Volunteer Support Base" to support services at the center
ITEM NO. 22.
PREPARED BY: Katy Nomura
Assistant Town Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/18/2024
ITEM NO: 23
DATE: June 14, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution and Introduce Ordinances to Place a One-Eighth Cent Sales Tax on the November 2024 Ballot as Either One Measure for a Special Tax or Two Measures for a General Tax and a Companion Advisory Measure to be Adopted by a Separate Resolution; and Authorize a Fiscal Year 2024/25 Expenditure Budget Adjustment of $66,000 for a Single Measure or $132,000 for Two Measures from the Available Capital/Special Projects Reserve.
RECOMMENDATION:
Adopt a resolution and introduce ordinances by title only, waiving further reading, to place a one-eighth cent sales tax on the November 2024 Ballot as either one measure for a special tax or two measures for a general tax and a companion advisory measure to be adopted by a separate resolution; and authorize a Fiscal Year 2024/25 expenditure budget adjustment of $66,000 for a single measure or $132,000 for two measures from the available Capital/Special Projects Reserve.
BACKGROUND:
In January 2023, the Town Council included Exploring Revenue Measures as one of its Strategic Priorities to address its overall goal to ensure fiscal stability and sustainability in the long term for the Town of Los Gatos. Since then, the Town has conducted a competitive consultant selection process and hired NBS to advise on a potential revenue measure. Through May 2024, NBS has analyzed different revenue options and conducted a scientific poll on a potential 1/8th cent sales tax measure.
On May 21, 2024, Town Council discussed the poll results and the Finance Commission recommendation for a special tax and voted to:
ITEM NO. 23.
PAGE 2 OF 5
SUBJECT: Adopt a Resolution to Place a One-Eighth Cent Sales Tax on the November 2024 Ballot
DATE: June 14, 2024
BACKGROUND (continued):
Explore a special tax for police, public safety, and emergency preparedness; wildfire prevention (such as vegetation management); and traffic relief. Approve an amendment to the NBS agreement to conduct outreach. Direct staff to talk to key stakeholders and work with NBS on the outreach.
This report summarizes the outreach conducted, evaluates options for Town Council for a potential ballot measure, and discusses next steps should the Council adopt a resolution to place a measure on the ballot.
DISCUSSION:
NBS Outreach
NBS completed a set of frequently asked questions and answers regarding sales tax measures which was posted on the Town’s website on Friday, June 7, 2024:
www.losgatosca.gov/RevenueMeasure.
In addition, this webpage also contains a link to a short survey, encouraging community members to identify their priorities for the use of the revenue from a potential sales tax measure. The data from the survey are currently being compiled and are expected to be available to the Council and the public in a Desk Item for the June 18th Council meeting.
Staff Outreach
Based on Council direction, the Town Manager and Assistant Town Manager met with a few key stakeholders to understand their perspectives on a potential ballot measure. While recognizing that a 1/8th cent sales tax would add 12.5 cents for every $100 purchase and would most likely not deter people from shopping in Los Gatos, most stakeholders acknowledged tax and inflation fatigue on the part of Los Gatos voters.
In addition, stakeholders thought voters would want to know how the extra revenue would be used. The three dedicated areas identified by the Council all resonated with the stakeholders.
For this reason, the notion of a special tax seemed most appealing to some despite the 2/3rd vote requirement. Others also expressed that while these areas were worthy recipients of additional funding, there was some concern that the special tax would not pass with the higher threshold and therefore, result in no additional funding for these areas.
The Los Gatos Chamber of Commerce Board is scheduled to discuss the potential sales tax and at the time of the writing of this report, the outcome of the Board’s discussion is not known.
ITEM NO. 23.
PAGE 3 OF 5
SUBJECT: Adopt a Resolution to Place a One-Eighth Cent Sales Tax on the November 2024 Ballot
DATE: June 14, 2024
DISCUSSION (continued):
Options for Consideration
Special Tax: Based on the Council’s motion on May 21, 2024, Attachment 1 contains a draft resolution with ballot language for a special tax to be placed on the November ballot and the proposed ordinance attached as Exhibit A. Attachment 2 contains a draft ordinance approving placement of the ballot measure on the ballot with the proposed ordinance attached as Exhibit A. The specific uses of the additional revenue are the three priorities identified by the Town Council on May 21, 2024. The resolution and ordinances were prepared by municipal tax counsel.
General Tax with a Companion Advisory Measure: At the May 21, 2024, Council meeting, the Town Attorney mentioned an approach that has been used in other jurisdictions in which a general tax is placed on the ballot along with a companion advisory measure that indicates the specific use(s) for which the voters would prefer the tax revenue to be spent should both measures pass. This concept was not explored in depth at the meeting and subsequently, a Council Member has asked staff to provide more information to the Council.
The advantage of the general tax with a companion advisory measure is that each only need a simple majority to pass. In addition, having a companion advisory measure prioritizing the specific uses of the tax revenue would provide compelling guidance to the elected officials of the will of the voters.
Attachment 3 is a draft resolution placing a general tax on the ballot with the proposed ordinance imposing a general tax as Exhibit A. Attachment 4 is a draft ordinance approving placement of the general tax on the ballot with the proposed ordinance imposing a general tax as Exhibit A. Attachment 5 is a resolution placing an advisory measure on the ballot to accompany the general tax measure. The advisory measure focuses on the same three priorities as identified in the proposed special tax. The resolution for this measure has been prepared by municipal tax counsel.
While the Registrar of Voters customarily receives ballot measures adopted by resolution, the Revenue and Taxation Code can be interpreted to require that the placement of sales tax measures on the ballot be approved by ordinance. For that reason, the attachments include both resolutions and ordinances approving both measures for placement on the ballot. The resolution will be provided to the County Registrar upon adoption and the ordinances will be provided separately after adoption.
Attachment 6 contains examples of California cities that have successfully passed a general tax with a companion advisory measure.
ITEM NO. 23.
PAGE 4 OF 5
SUBJECT: Adopt a Resolution to Place a One-Eighth Cent Sales Tax on the November 2024 Ballot
DATE: June 14, 2024
CONCLUSION AND NEXT STEPS:
The Town Council has the opportunity to determine whether to:
1. Adopt a resolution and introduce an ordinance by title only to place a one-eighth cent sales tax on the November 2024 ballot as a special tax, waive further reading, introduce an ordinance to approve the tax ordinance, and authorize a budget adjustment in the amount of $66,000 from the available Capital/Special Projects Reserve; or
2. Adopt a resolution and introduce an ordinance by title only to place a one-eighth cent sales tax on the November 2024 ballot as a general tax, waive further reading, introduce an ordinance to approve the tax ordinance, adopt a resolution to add a companion advisory measure, and authorize a budget adjustment in the amount of $132,000 from the available Capital/Special Projects Reserve; or
3. Provide other direction; or
4. Take no action.
August 9, 2024 is the last day in which the Santa Clara County Registrar of Voters is accepting resolutions to add measures for the November 2024 election.
COORDINATION:
This report was prepared in collaboration between NBS, the Town Manager’s Office, the Town Attorney, and municipal tax counsel.
FISCAL IMPACT:
The cost of each ballot measure is approximately $66,000. If the Council votes to put two measures on the ballot (i.e., general tax and companion advisory measures), the total estimated cost is $132,000. Budget adjustments would be needed to add these resources to the adopted Fiscal Year 2024/25 Operating Budget. The source of funds would be the Capital/ Special Projects Reserve.
If a sales tax measure passes in November, it is estimated to generate approximately $1 million per year.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Draft Special Tax Resolution with Exhibit A: Special Tax Ordinance
2. Draft Ordinance Approving Proposed Ordinance with Exhibit A: Special Tax Ordinance
ITEM NO. 23.
PAGE 5 OF 5
SUBJECT: Adopt a Resolution to Place a One-Eighth Cent Sales Tax on the November 2024 Ballot
DATE: June 14, 2024
Attachments (continued):
3. Draft General Tax Resolution with Exhibit A: General Tax Ordinance
4. Draft Ordinance Approving Proposed Ordinance with Exhibit A: General Tax Ordinance
5. Resolution Approving Advisory Measure to General Tax
6. Examples of Approved General Taxes with Advisory Measures
ITEM NO. 23.
1 of 4
Resolution 2024- Date
ATTACHMENT 1
RESOLUTION NO. _______
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS, CALIFORNIA,
SUBMITTING A SPECIAL TRANSACTIONS AND USE TAX MEASURE TO THE VOTERS AT THE TUESDAY, NOVEMBER 5, 2024, GENERAL MUNICPAL ELECTION WHEREAS, Town of Los Gatos residents have indicated that the quality of life in Los Gatos is highly valued; and
WHEREAS, the costs of providing Town services and programs to residents have significantly increased over the years and Town revenues have not kept pace; and WHEREAS, additional locally controlled funding would allow the Town to maintain and enhance critical public safety services and infrastructure; and WHEREAS, the Town seeks to maintain and improve public safety services; and WHEREAS, the Town also seeks to maintain and improve emergency services, including protection against wildfire and storm hazards; and
WHEREAS, the Town also seeks to help fund infrastructure programs improving traffic flow and mobility to relieve congestion;
WHEREAS, Government Code section 53724 and Revenue & Taxation Code section 7285.91 authorize the Town Council to submit to the qualified voters of the Town for their approval a proposed special transactions and use tax; and
WHEREAS, locally-enacted funding sources such as a voter-approved transactions and use tax are not subject to seizure by the State or County; and
WHEREAS, the Town Council desires to submit to the qualified voters of the Town a proposed one-eighth of one percent (0.125%) special Transactions and Use Tax(the "Tax") to be collected in addition to the existing one-eighth of one percent (0.125%) general Transactions and Use Tax currently being collected within the Town; and
WHEREAS, the Tax must be approved by the electorate to be effective; and WHEREAS, by Resolution 2024-029, the Town Council of the Town of Los Gatos called a municipal election to be held on Tuesday, November 5, 2024, (“the Election”) and requested the Board of Supervisors of the County of Santa Clara to consolidate the election with the General Statewide election; and
WHEREAS, the consolidated municipal election will be held, regulated, and conducted in accordance with the provisions of the law as provided in Resolution 2024-029.
ITEM NO. 23.
2 of 4
Resolution 2024- Date
ATTACHMENT 1
NOW THEREFORE, BE IT RESOLVED, that the Town Council orders as follows:
Section 1. The Town Council finds and determines that each of the findings set forth above are true and correct.
Section 2. The Town Council hereby submits the proposed ordinance set forth in Exhibit A, attached hereto and incorporated in this Resolution by this reference, to the qualified voters of the Town at the Election, and orders the following question to be submitted to the voters at the Election:
“To provide dedicated funding for Los Gatos, that cannot be taken by the State/County, for maintaining and enhancing Police and emergency services, rapid 911 response times, wildfire/storm hazard prevention/protection, and infrastructure to improve traffic flow/reduce congestion, shall the measure to enact a 1/8 cent sales tax (0.125%), raising approximately $1 million annually, ending in 20 years, with mandatory annual audits, independent resident oversight, and all funds controlled locally in Los Gatos, be adopted?”
YES
NO
The measure requires a two-thirds majority of the qualified voters voting on the proposed ordinance to pass.
Section 3. That the “full text” of the proposed ordinance shall appear in the Voter Information Pamphlet. The “full text” of the proposed ordinance is attached to this resolution as “Exhibit A.” Section 4. 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 on or before 4:00 p.m. on August 12, 2024.
Section 5. Pursuant to Elections Code Section 9286 et. seq., August 12, 2024, at 4:00 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, this measure.
Arguments in favor of or against the measure shall not exceed 300 words in length. The Mayor, or her designee(s), is hereby authorized to prepare a written argument in favor of the proposed measure on behalf of the City Council. At the Mayor’s discretion, the Argument may also be signed by bona fide associations or by individual voters who are eligible to vote in the Town of Los Gatos. Each argument shall be signed, filed with the Town Clerk, and include the printed name(s) and signature(s) of the author(s) submitting the argument. If more than one argument for or against is received, the priorities established by Elections Code Section 9287 shall control.
ITEM NO. 23.
3 of 4
Resolution 2024- Date
ATTACHMENT 1
Section 6. Subdivision (a) of section 9285 of the Elections Code shall apply to the Election and shall control the submission of any rebuttal arguments for this measure. If an argument in favor and an argument against the measure have been selected to be printed in the voter information guide, the Clerk shall send a copy of the argument in favor of the measure to the authors of the argument against the measure and a copy of an argument against the measure to the authors of the argument in favor of the measure. The rebuttal authors or persons designated by them may prepare and submit rebuttal arguments not to exceed 250 words in length. Rebuttal arguments must be submitted not later than August 19, 2024, by 4:00 p.m. This Section shall apply only to the election to be held on November 5, 2024, and shall then be repealed.
Section 7. Pursuant to Elections Code Section 10002, the Town Council hereby requests the Board of Supervisors of the County of Santa Clara to make available the services of the Registrar of Voters for the purpose of performing the usual services necessary in the conduct of the consolidated general municipal election, including the provisions of election supplies and voters' pamphlets; and that upon approval of such requests, the Registrar of Voters of the County of Santa Clara shall be reimbursed for all costs incurred by said services.
Section 8. Pursuant to Elections Code commencing with Section 10400, the Town Council hereby requests the Board of Supervisors of the County of Santa Clara to order the consolidation of the general municipal election to be conducted within the boundaries of the Town of Los Gatos on November 5, 2024, with respect to which the Board of Supervisors of the County of Santa Clara has the power to order a consolidation. The Town Council further consents to and orders the consolidation of the general municipal election hereby called with the statewide general election and acknowledges that the consolidated election will be held and conducted in the manner prescribed in Section 10418.
Section 9. The Town Clerk is hereby authorized and directed to publish a notice of the general municipal election within the time and in the manner specified in the Elections Code Section 12112. The Town Clerk is further authorized and directed to do all other things required by law to hold the general municipal election above provided.
Section 10. The Town Clerk is hereby authorized and directed to certify to the adoption of this resolution and to transmit a certified copy to the Board of Supervisors of the County of Santa Clara and to the Registrar of Voters of the County of Santa Clara.
Section 11. That the Town Manager is authorized to negotiate and execute an agreement with the Board of Equalization in accordance with Revenue and Taxation Code Section 7270 to perform all functions incident to the administration and operation of the ordinance if adopted.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos this 18th day of June, 2024 by the following vote:
COUNCIL MEMBERS:
ITEM NO. 23.
4 of 4
Resolution 2024- Date
ATTACHMENT 1
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: _________________
ITEM NO. 23.
EXHIBIT A
ORDINANCE NO._________
AN ORDINANCE OF THE PEOPLE OF THE TOWN OF LOS GATOS IMPOSING A SPECIAL
TRANSACTIONS AND USE TAX FOR A PERIOD OF TWENTY YEARS
The People of the Town of Los Gatos ordain as follows:
SECTION 1. AMENDMENT OF MUNICIPAL CODE.
Chapter 25 of the Los Gatos Town Code is hereby amended by adding provisions as set forth in this section below. Portions of the Chapter not included in this Ordinance are not changed.
Chapter 25
REVENUE AND TAXATION
ARTICLE VIII. SPECIAL TRANSACTIONS AND USE TAX
Section 25.080.010. Title.
This article shall be known as the Los Gatos Special Transactions and Use Tax Ordinance.
The town of Los Gatos hereinafter shall be called "Town." This article shall be applicable in the incorporated territory of the Town.
Section 25.080.020. Operative Date.
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.
Section 25.080.030. Purpose.
This article is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
(1) 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 7285.91 of Part 1.7 of Division 2 which authorizes the Town to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. (2) 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.
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(3) 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. (4) 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. (5) To provide transactions and use revenue to the Town to be used solely for maintaining and enhancing Police and emergency services, rapid 911 response times, wildfire and storm hazard prevention and protection, and infrastructure to improve traffic flow and to reduce congestion.
Section 25.080.040. 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.
Section 25.080.050. 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 one-eight of one percent (0.125%) 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.
Section 25.080.060. 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 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
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under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
Section 25.080.070. 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 ordinance for storage, use or other consumption in said territory at the rate of one-eight of one percent (0.125%) 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.
Section 25.080.080. Adoption of Provisions of State Law.
Except as otherwise provided in this ordinance 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 ordinance as though fully set forth herein.
Section 25.080.090. 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:
(1) 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:
a. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California; b. 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 Ordinance. c. 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:
1. 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;
ITEM NO. 23.
2. 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.
d. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
(2) The word "Town" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
a. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
Section 25.080.100. 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 ordinance.
Section 25.080.110.Exemptions and Exclusions.
(1) 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. (2) There are exempted from the computation of the amount of transactions tax the gross receipts from:
a. 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.
b. 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:
ITEM NO. 23.
1. 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
2. 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.
c. 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.
d. 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. e. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(3) There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this Town of tangible personal property:
a. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. b. 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.
c. 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. d. 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
ITEM NO. 23.
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 ordinance. e. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
f. 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. g. "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. (4) 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 storage, use or other consumption of which is subject to the use tax.
Section 25.080.120. 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 however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
ITEM NO. 23.
Section 25.080.130. Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the Town, or against any officer of the State or the Town, 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.
Section 25.080.140. Use of Revenue.
The revenues from the tax imposed by this chapter shall be segregated and deposited into a special account and may be spent only for maintaining or enhancing Police or emergency services, rapid 911 response times, wildfire or storm hazard prevention or protection, or infrastructure to improve traffic flow or to reduce traffic congestion.
Section 25.080.150. Residents’ Oversight and Annual Audit. (1) The Town Council shall appoint a committee (“Special Tax Finance Committee”) to review and report on the receipt of revenues and the expenditure of funds from the tax authorized by this chapter (“revenues and expenditures”). The number, qualifications, and duties of Special Tax Finance Committee members shall be established by ordinance or resolution of the Town Council.
(2) Beginning with the fiscal year that ends June 30, 2025, the Town's independent auditors shall, as part of their annual audit of the Town's financial statements, review the collection and expenditure of revenue from the tax authorized by this chapter. The auditors' review shall be a public document.
(3) Each year, the Finance Director shall prepare a report consistent with the requirements of section 50075.3 of the Government Code and shall submit the report to the Special Tax Finance Committee and to the Town Council. The Special Tax Finance Committee shall annually review the auditors' findings and the Finance Director’s report and report in writing to the Town Council regarding the revenues and expenditures. The Special Tax Finance Committee’s report shall be transmitted to the Town Council for consideration at a public meeting.
(4) By January 31, 2025, the Town Council shall adopt a resolution establishing the composition of the Special Tax Finance Committee and further defining its responsibilities consistently with this section. Provisions defining the scope of the Special Tax Finance Committee’s responsibilities and reporting requirements shall address bond oversight, in the event that a decision is made at a later time to sell bonds that are in part backed by the revenues referenced in this section. The Town Council shall appoint the initial members of the Special Tax Finance Committee no later than March 1, 2025
ITEM NO. 23.
Section 25.080.160. Termination Date.
The authority to levy the tax imposed by this chapter shall expire on March 31, 2045, without further action by the Town Council or the voters of the Town. After said date, the tax imposed by this Chapter can only be continued or reestablished by a two-thirds majority vote of Los Gatos voters.
SECTION 2. ADJUSTMENT OF APPROPRIATIONS LIMIT.
Pursuant to Article XIIIB of the Constitution of the State of California and applicable laws, the appropriations limit for the Town is hereby increased by the aggregate sum authorized to be levied by this tax for fiscal year 2024-2025 and each year thereafter.
SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.
This ordinance is exempt from the California Environmental Quality Act, Public Resources Code section 21000 et seq., under, including without limitation, Public Resources Code section 21065, and CEQA Guidelines sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the activity authorized herein may have a significant effect on the environment.
SECTION 4. 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.
SECTION 5. EFFECTIVE DATE.
This ordinance relates to the levying and collecting of the Town transactions and use taxes and shall take effect immediately.
SECTION 6. NOTICE.
Upon approval by the voters, the Town Clerk Administrator shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law. * * * * * * * * *
It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024 General Municipal Election and took effect 10 days following adoption of a resolution
ITEM NO. 23.
declaring the results of the election at a regular meeting of the Town Council held on _____, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ITEM NO. 23.
Draft Ordinance Date Adopted
ATTACHMENT 2
DRAFT ORDINANCE
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE ORDINANCE TO BE SUBMITTED TO THE VOTERS OF THE TOWN OF LOS GATOS AT THE NOVEMBER 5, 2024, GENERAL MUNICIPAL
ELECTION THAT PROPOSES TO IMPOSE A ONE-EIGHTH OF ONE PERCENT
SPECIAL TRANSACTIONS AND USE TAX IN THE TOWN OF LOS GATOS WHEREAS, The Town Council of the Town of Los Gatos has adopted a resolution submitting to the voters of the Town of Los Gatos at the November 5, 2024, general municipal election as a measure on the ballot for their approval an ordinance, a copy of which is attached hereto as Exhibit A (“Proposed Ordinance”) that proposes to impose a one-eighth of one percent (0.125%) special Transactions and Use Tax in the Town of Los Gatos; and WHEREAS, The Town Council wishes to approve by its own ordinance the Proposed Ordinance, although the Proposed Ordinance cannot go into effect unless and until approved by a two-thirds majority of the voters of the Town of Los Gatos voting on the measure at the November 5, 2024, general municipal election;
NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as follows:
The Town Council of the Town of Los Gatos approves the Proposed Ordinance, attached hereto as Exhibit A, which proposes to impose a one-eighth of one percent (0.125%) special Transactions and Use Tax in the Town of Los Gatos.
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the 18th day of June, 2024, and adopted by the Town Council of the Town of Los Gatos at its regular meeting on the ____ day of _____ 2024, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
_______________________________
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
ITEM NO. 23.
Draft Ordinance Date Adopted
ATTACHMENT 2
___________________________________
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ITEM NO. 23.
EXHIBIT A
ORDINANCE NO._________
AN ORDINANCE OF THE PEOPLE OF THE TOWN OF LOS GATOS IMPOSING A SPECIAL
TRANSACTIONS AND USE TAX FOR A PERIOD OF TWENTY YEARS
The People of the Town of Los Gatos ordain as follows:
SECTION 1. AMENDMENT OF MUNICIPAL CODE.
Chapter 25 of the Los Gatos Town Code is hereby amended by adding provisions as set forth in this section below. Portions of the Chapter not included in this Ordinance are not changed.
Chapter 25
REVENUE AND TAXATION
ARTICLE VIII. SPECIAL TRANSACTIONS AND USE TAX
Section 25.080.010. Title.
This article shall be known as the Los Gatos Special Transactions and Use Tax Ordinance.
The town of Los Gatos hereinafter shall be called "Town." This article shall be applicable in the incorporated territory of the Town.
Section 25.080.020. Operative Date.
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.
Section 25.080.030. Purpose.
This article is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
(1) 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 7285.91 of Part 1.7 of Division 2 which authorizes the Town to adopt this tax ordinance which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. (2) 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.
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(3) 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. (4) 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. (5) To provide transactions and use revenue to the Town to be used solely for maintaining and enhancing Police and emergency services, rapid 911 response times, wildfire and storm hazard prevention and protection, and infrastructure to improve traffic flow and to reduce congestion.
Section 25.080.040. 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.
Section 25.080.050. 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 one-eight of one percent (0.125%) 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.
Section 25.080.060. 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 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
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under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
Section 25.080.070. 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 ordinance for storage, use or other consumption in said territory at the rate of one-eight of one percent (0.125%) 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.
Section 25.080.080. Adoption of Provisions of State Law.
Except as otherwise provided in this ordinance 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 ordinance as though fully set forth herein.
Section 25.080.090. 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:
(1) 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:
a. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California; b. 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 Ordinance. c. 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:
1. 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;
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2. 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.
d. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
(2) The word "Town" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
a. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
Section 25.080.100. 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 ordinance.
Section 25.080.110.Exemptions and Exclusions.
(1) 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. (2) There are exempted from the computation of the amount of transactions tax the gross receipts from:
a. 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.
b. 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:
ITEM NO. 23.
1. 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
2. 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.
c. 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.
d. 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. e. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(3) There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this Town of tangible personal property:
a. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. b. 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.
c. 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. d. 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
ITEM NO. 23.
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 ordinance. e. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
f. 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. g. "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. (4) 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 storage, use or other consumption of which is subject to the use tax.
Section 25.080.120. 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 however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
ITEM NO. 23.
Section 25.080.130. Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the Town, or against any officer of the State or the Town, 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.
Section 25.080.140. Use of Revenue.
The revenues from the tax imposed by this chapter shall be segregated and deposited into a special account and may be spent only for maintaining or enhancing Police or emergency services, rapid 911 response times, wildfire or storm hazard prevention or protection, or infrastructure to improve traffic flow or to reduce traffic congestion.
Section 25.080.150. Residents’ Oversight and Annual Audit. (1) The Town Council shall appoint a committee (“Special Tax Finance Committee”) to review and report on the receipt of revenues and the expenditure of funds from the tax authorized by this chapter (“revenues and expenditures”). The number, qualifications, and duties of Special Tax Finance Committee members shall be established by ordinance or resolution of the Town Council.
(2) Beginning with the fiscal year that ends June 30, 2025, the Town's independent auditors shall, as part of their annual audit of the Town's financial statements, review the collection and expenditure of revenue from the tax authorized by this chapter. The auditors' review shall be a public document.
(3) Each year, the Finance Director shall prepare a report consistent with the requirements of section 50075.3 of the Government Code and shall submit the report to the Special Tax Finance Committee and to the Town Council. The Special Tax Finance Committee shall annually review the auditors' findings and the Finance Director’s report and report in writing to the Town Council regarding the revenues and expenditures. The Special Tax Finance Committee’s report shall be transmitted to the Town Council for consideration at a public meeting.
(4) By January 31, 2025, the Town Council shall adopt a resolution establishing the composition of the Special Tax Finance Committee and further defining its responsibilities consistently with this section. Provisions defining the scope of the Special Tax Finance Committee’s responsibilities and reporting requirements shall address bond oversight, in the event that a decision is made at a later time to sell bonds that are in part backed by the revenues referenced in this section. The Town Council shall appoint the initial members of the Special Tax Finance Committee no later than March 1, 2025
ITEM NO. 23.
Section 25.080.160. Termination Date.
The authority to levy the tax imposed by this chapter shall expire on March 31, 2045, without further action by the Town Council or the voters of the Town. After said date, the tax imposed by this Chapter can only be continued or reestablished by a two-thirds majority vote of Los Gatos voters.
SECTION 2. ADJUSTMENT OF APPROPRIATIONS LIMIT.
Pursuant to Article XIIIB of the Constitution of the State of California and applicable laws, the appropriations limit for the Town is hereby increased by the aggregate sum authorized to be levied by this tax for fiscal year 2024-2025 and each year thereafter.
SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.
This ordinance is exempt from the California Environmental Quality Act, Public Resources Code section 21000 et seq., under, including without limitation, Public Resources Code section 21065, and CEQA Guidelines sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the activity authorized herein may have a significant effect on the environment.
SECTION 4. 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.
SECTION 5. EFFECTIVE DATE.
This ordinance relates to the levying and collecting of the Town transactions and use taxes and shall take effect immediately.
SECTION 6. NOTICE.
Upon approval by the voters, the Town Clerk Administrator shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law. * * * * * * * * *
It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024 General Municipal Election and took effect 10 days following adoption of a resolution
ITEM NO. 23.
declaring the results of the election at a regular meeting of the Town Council held on _____, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ITEM NO. 23.
1 of 4
Resolution 2024- June 18, 2024
ATTACHMENT 3
RESOLUTION NO. _______
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS, CALIFORNIA,
SUBMITTING A SUPPLEMENTAL GENERAL TRANSACTIONS AND USE TAX MEASURE TO THE VOTERS AT THE TUESDAY, NOVEMBER 5, 2024,
GENERAL MUNICPAL ELECTION
WHEREAS, Town of Los Gatos residents have indicated that the quality of life in Los Gatos is highly valued; and
WHEREAS, the costs of providing Town services and programs to residents have significantly increased over the years and Town revenues have not kept pace; and WHEREAS, additional locally controlled funding would allow the Town to maintain and enhance critical public safety services and infrastructure; and WHEREAS, the Town seeks to maintain and improve public safety services; and WHEREAS, the Town also seeks to maintain and improve emergency services, including protection against wildfire and storm hazards; and
WHEREAS, the Town also seeks to help fund infrastructure programs improving traffic flow and mobility to relieve congestion;
WHEREAS, Government Code section 53724 and Revenue & Taxation Code section 7285.9 authorize the Town Council to submit to the qualified voters of the Town for their approval a proposed transactions and use tax; and
WHEREAS, locally-enacted funding sources such as a voter-approved transactions and use tax are not subject to seizure by the State or County; and
WHEREAS, the Town Council desires to submit to the qualified voters of the Town a proposed one-eighth of one percent (0.125%) Transactions and Use Tax(the "Tax") to be collected in addition to the existing one-eighth of one percent (0.125%) Transactions and Use Tax currently being collected within the Town; and
WHEREAS, the Tax must be approved by the electorate to be effective; and WHEREAS, by Resolution 2024-029, the Town Council of the Town of Los Gatos called a municipal election to be held on Tuesday, November 5, 2024, (“the Election”) and requested the Board of Supervisors of the County of Santa Clara to consolidate the election with the General Statewide election; and
ITEM NO. 23.
2 of 4
Resolution 2024- June 18, 2024
ATTACHMENT 3
WHEREAS, the consolidated municipal election will be held, regulated, and conducted in accordance with the provisions of the law as provided in Resolution 2024-029.
NOW THEREFORE, BE IT RESOLVED, that the Town Council orders as follows:
Section 1. The Town Council finds and determines that each of the findings set forth above are true and correct.
Section 2. The Town Council hereby submits the proposed ordinance set forth in Exhibit A, attached hereto and incorporated in this Resolution by this reference, to the qualified voters of the Town at the Election, and orders the following question to be submitted to the voters at the Election and appear on the ballot immediately after the advisory measure:
“To provide funding that cannot be taken by the State/County, to maintain/enhance Los Gatos essential services, including Police/emergency services, rapid 911 response, wildfire/storm hazard prevention/protection, infrastructure to reduce traffic congestion, and for general government use, shall the measure enacting a 1/8 cent sales tax (0.125%), raising approximately $1 million annually, ending in 20 years, with mandatory annual audits, independent resident oversight, and all funds controlled locally in Los Gatos, be adopted?”
YES
NO
The measure requires a majority of the qualified voters voting on the proposed ordinance to pass.
Section 3. That the “full text” of the proposed ordinance shall appear in the Voter Information Pamphlet. The “full text” of the proposed ordinance is attached to this resolution as “Exhibit A.” Section 4. 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 on or before 4:00 p.m. on August 12, 2024.
Section 5. Pursuant to Elections Code Section 9286 et. seq., August 12, 2024, at 4:00 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, this measure.
Arguments in favor of or against the measure shall not exceed 300 words in length. The Mayor, or her designee(s), is hereby authorized to prepare a written argument in favor of the proposed measure on behalf of the City Council. At the Mayor’s discretion, the Argument may also be signed by bona fide associations or by individual voters who are eligible to vote in the Town of Los Gatos. Each argument shall be signed, filed with the Town Clerk, and include the printed name(s) and signature(s) of the author(s) submitting the argument. If more than one argument for or against is received, the priorities established by Elections Code Section 9287 shall control.
ITEM NO. 23.
3 of 4
Resolution 2024- June 18, 2024
ATTACHMENT 3
Section 6. Subdivision (a) of section 9285 of the Elections Code shall apply to the Election and shall control the submission of any rebuttal arguments for this measure. If an argument in favor and an argument against the measure have been selected to be printed in the voter information guide, the Clerk shall send a copy of the argument in favor of the measure to the authors of the argument against the measure and a copy of an argument against the measure to the authors of the argument in favor of the measure. The rebuttal authors or persons designated by them may prepare and submit rebuttal arguments not to exceed 250 words in length. Rebuttal arguments must be submitted not later than August 19, 2024, by 4:00 p.m. This Section shall apply only to the election to be held on November 5, 2024, and shall then be repealed.
Section 7. Pursuant to Elections Code Section 10002, the Town Council hereby requests the Board of Supervisors of the County of Santa Clara to make available the services of the Registrar of Voters for the purpose of performing the usual services necessary in the conduct of the consolidated general municipal election, including the provisions of election supplies and voters' pamphlets; and that upon approval of such requests, the Registrar of Voters of the County of Santa Clara shall be reimbursed for all costs incurred by said services.
Section 8. Pursuant to Elections Code commencing with Section 10400, the Town Council hereby requests the Board of Supervisors of the County of Santa Clara to order the consolidation of the general municipal election to be conducted within the boundaries of the Town of Los Gatos on November 5, 2024, with respect to which the Board of Supervisors of the County of Santa Clara has the power to order a consolidation. The Town Council further consents to and orders the consolidation of the general municipal election hereby called with the statewide general election and acknowledges that the consolidated election will be held and conducted in the manner prescribed in Section 10418.
Section 9. The Town Clerk is hereby authorized and directed to publish a notice of the general municipal election within the time and in the manner specified in the Elections Code Section 12112. The Town Clerk is further authorized and directed to do all other things required by law to hold the general municipal election above provided.
Section 10. The Town Clerk is hereby authorized and directed to certify to the adoption of this resolution and to transmit a certified copy to the Board of Supervisors of the County of Santa Clara and to the Registrar of Voters of the County of Santa Clara.
Section 11. That the Town Manager is authorized to negotiate and execute an agreement with the Board of Equalization in accordance with Revenue and Taxation Code Section 7270 to perform all functions incident to the administration and operation of the ordinance if adopted.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos this 18th day of June, 2024 by the following vote:
COUNCIL MEMBERS:
ITEM NO. 23.
4 of 4
Resolution 2024- June 18, 2024
ATTACHMENT 3
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: _________________
ITEM NO. 23.
EXHIBIT A
ORDINANCE NO._________
AN ORDINANCE OF THE PEOPLE OF THE TOWN OF LOS GATOS IMPOSING A
SUPPLEMENTAL TRANSACTIONS AND USE TAX FOR A PERIOD OF TWENTY YEARS The People of the Town of Los Gatos ordain as follows:
SECTION 1. AMENDMENT OF MUNICIPAL CODE.
Chapter 25 of the Los Gatos Town Code is hereby amended by adding provisions as set forth in this section below. Portions of the Chapter not included in this Ordinance are not changed.
Chapter 25
REVENUE AND TAXATION
ARTICLE VIII. SUPPLEMENTAL TRANSACTIONS AND USE TAX
Section 25.080.010. Title.
This article shall be known as the Los Gatos Supplemental Transactions and Use Tax Ordinance. The town of Los Gatos hereinafter shall be called "Town." This article shall be applicable in the incorporated territory of the Town.
Section 25.080.020. Operative Date.
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.
Section 25.080.030. Purpose.
This article is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
(1) 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. (2) 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.
ITEM NO. 23.
(3) 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. (4) 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.
Section 25.080.040. 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.
Section 25.080.050. 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 one-eight of one percent (0.125%) 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.
Section 25.080.060. 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 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.
ITEM NO. 23.
Section 25.080.070. 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 ordinance for storage, use or other consumption in said territory at the rate of one-eight of one percent (0.125%) 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.
Section 25.080.080. Adoption of Provisions of State Law.
Except as otherwise provided in this ordinance 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 ordinance as though fully set forth herein.
Section 25.080.090. 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:
(1) 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:
a. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California; b. 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 Ordinance.
c. 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:
1. 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;
2. 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.
ITEM NO. 23.
d. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
(2) The word "Town" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
a. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
Section 25.080.100. 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 ordinance.
Section 25.080.110.Exemptions and Exclusions.
(1) 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. (2) There are exempted from the computation of the amount of transactions tax the gross receipts from:
a. 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.
b. 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:
1. 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
ITEM NO. 23.
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
2. With respect to commercial vehicles, by registration to a place of business outof-Town and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
c. 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.
d. 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. e. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(3) There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this Town of tangible personal property:
a. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. b. 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.
c. 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. d. 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 ordinance.
ITEM NO. 23.
e. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
f. 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. g. "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. (4) 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 storage, use or other consumption of which is subject to the use tax.
Section 25.080.120. 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 however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
Section 25.080.130. Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the Town, or against any officer of the State or the Town, 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.
ITEM NO. 23.
Section 25.080.140. Residents’ Oversight and Annual Audit. (1) The Town Council shall appoint a committee (“Tax Finance Committee”) to review and report on the receipt of revenue and expenditure of funds from the tax authorized by this chapter (“revenues and expenditures”). The number, qualifications, and duties of Tax Finance Committee members shall be established by ordinance or resolution of the Town Council.
(2) Beginning with the fiscal year that ends June 30, 2025, the Town's independent auditors shall, as part of their annual audit of the Town's financial statements, review the collection and expenditure of revenue from the tax authorized by this chapter. The auditors' review shall be a public document. The Tax Finance Committee shall annually review the auditors' findings and report in writing to the Town Council regarding the revenues and expenditures. The Tax Finance Committee report shall be transmitted to the Town Council for consideration at a public meeting. (3) By January 31, 2025, the Town Council shall adopt a resolution establishing the composition of the Tax Finance Committee and further defining its responsibilities consistently with this section. Provisions defining the scope of the Tax Finance Committee’s responsibilities and reporting requirements shall address bond oversight, in the event that a decision is made at a later time to sell bonds that are in part backed by the revenues referenced in this section. The Town Council shall appoint the initial members of the Tax Finance Committee no later than March 1, 2025 Section 25.080.150. Termination Date.
The authority to levy the tax imposed by this chapter shall expire on March 31, 2045, without further action by the Town Council or the voters of the Town. After said date, the tax imposed by this Chapter can only be continued or reestablished by a majority vote of Los Gatos voters.
SECTION 2. ADJUSTMENT OF APPROPRIATIONS LIMIT.
Pursuant to Article XIIIB of the Constitution of the State of California and applicable laws, the appropriations limit for the Town is hereby increased by the aggregate sum authorized to be levied by this tax for fiscal year 2024-2025 and each year thereafter.
SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.
This ordinance is exempt from the California Environmental Quality Act, Public Resources Code section 21000 et seq., under, including without limitation, Public Resources Code section 21065, and CEQA Guidelines sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the activity authorized herein may have a significant effect on the environment.
ITEM NO. 23.
SECTION 4. 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.
SECTION 5. EFFECTIVE DATE.
This ordinance relates to the levying and collecting of the Town transactions and use taxes and shall take effect immediately.
SECTION 6. NOTICE.
Upon approval by the voters, the Town Clerk Administrator shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law. * * * * * * * * *
It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024 General Municipal Election and took effect 10 days following adoption of a resolution declaring the results of the election at a regular meeting of the Town Council held on _____, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ITEM NO. 23.
Draft Ordinance Date Adopted
ATTACHMENT 4
DRAFT ORDINANCE
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING THE ORDINANCE TO BE SUBMITTED TO THE VOTERS OF THE TOWN OF LOS GATOS AT THE NOVEMBER 5, 2024, GENERAL MUNICIPAL
ELECTION THAT PROPOSES TO IMPOSE A ONE-EIGHTH OF ONE PERCENT
GENERAL TRANSACTIONS AND USE TAX IN THE TOWN OF LOS GATOS WHEREAS, The Town Council of the Town of Los Gatos has adopted a resolution submitting to the voters of the Town of Los Gatos at the November 5, 2024, general municipal election as a measure on the ballot for their approval an ordinance, a copy of which is attached hereto as Exhibit A (“Proposed Ordinance”) that proposes to impose a one-eighth of one percent (0.125%) general Transactions and Use Tax in the Town of Los Gatos; and WHEREAS, The Town Council wishes to approve by its own ordinance the Proposed Ordinance, although the Proposed Ordinance cannot go into effect unless and until approved by a majority of the voters of the Town of Los Gatos voting on the measure at the November 5, 2024, general municipal election;
NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as follows:
The Town Council of the Town of Los Gatos approves the Proposed Ordinance, attached hereto as Exhibit A, which proposes to impose a one-eighth of one percent (0.125%) general Transactions and Use Tax in the Town of Los Gatos.
This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the 18th day of June, 2024, and adopted by the Town Council of the Town of Los Gatos at its regular meeting on the ____ day of _____ 2024, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
_______________________________
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
___________________________________
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ITEM NO. 23.
EXHIBIT A
ORDINANCE NO._________
AN ORDINANCE OF THE PEOPLE OF THE TOWN OF LOS GATOS IMPOSING A
SUPPLEMENTAL TRANSACTIONS AND USE TAX FOR A PERIOD OF TWENTY YEARS The People of the Town of Los Gatos ordain as follows:
SECTION 1. AMENDMENT OF MUNICIPAL CODE.
Chapter 25 of the Los Gatos Town Code is hereby amended by adding provisions as set forth in this section below. Portions of the Chapter not included in this Ordinance are not changed.
Chapter 25
REVENUE AND TAXATION
ARTICLE VIII. SUPPLEMENTAL TRANSACTIONS AND USE TAX
Section 25.080.010. Title.
This article shall be known as the Los Gatos Supplemental Transactions and Use Tax Ordinance. The town of Los Gatos hereinafter shall be called "Town." This article shall be applicable in the incorporated territory of the Town.
Section 25.080.020. Operative Date.
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.
Section 25.080.030. Purpose.
This article is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
(1) 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. (2) 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.
ITEM NO. 23.
(3) 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. (4) 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.
Section 25.080.040. 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.
Section 25.080.050. 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 one-eight of one percent (0.125%) 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.
Section 25.080.060. 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 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.
ITEM NO. 23.
Section 25.080.070. 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 ordinance for storage, use or other consumption in said territory at the rate of one-eight of one percent (0.125%) 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.
Section 25.080.080. Adoption of Provisions of State Law.
Except as otherwise provided in this ordinance 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 ordinance as though fully set forth herein.
Section 25.080.090. 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:
(1) 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:
a. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California; b. 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 Ordinance.
c. 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:
1. 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;
2. 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.
ITEM NO. 23.
d. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
(2) The word "Town" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
a. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
Section 25.080.100. 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 ordinance.
Section 25.080.110.Exemptions and Exclusions.
(1) 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. (2) There are exempted from the computation of the amount of transactions tax the gross receipts from:
a. 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.
b. 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:
1. 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
ITEM NO. 23.
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
2. With respect to commercial vehicles, by registration to a place of business outof-Town and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
c. 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.
d. 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. e. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(3) There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this Town of tangible personal property:
a. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. b. 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.
c. 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. d. 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 ordinance.
ITEM NO. 23.
e. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
f. 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. g. "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. (4) 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 storage, use or other consumption of which is subject to the use tax.
Section 25.080.120. 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 however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
Section 25.080.130. Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the Town, or against any officer of the State or the Town, 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.
ITEM NO. 23.
Section 25.080.140. Residents’ Oversight and Annual Audit. (1) The Town Council shall appoint a committee (“Tax Finance Committee”) to review and report on the receipt of revenue and expenditure of funds from the tax authorized by this chapter (“revenues and expenditures”). The number, qualifications, and duties of Tax Finance Committee members shall be established by ordinance or resolution of the Town Council.
(2) Beginning with the fiscal year that ends June 30, 2025, the Town's independent auditors shall, as part of their annual audit of the Town's financial statements, review the collection and expenditure of revenue from the tax authorized by this chapter. The auditors' review shall be a public document. The Tax Finance Committee shall annually review the auditors' findings and report in writing to the Town Council regarding the revenues and expenditures. The Tax Finance Committee report shall be transmitted to the Town Council for consideration at a public meeting. (3) By January 31, 2025, the Town Council shall adopt a resolution establishing the composition of the Tax Finance Committee and further defining its responsibilities consistently with this section. Provisions defining the scope of the Tax Finance Committee’s responsibilities and reporting requirements shall address bond oversight, in the event that a decision is made at a later time to sell bonds that are in part backed by the revenues referenced in this section. The Town Council shall appoint the initial members of the Tax Finance Committee no later than March 1, 2025 Section 25.080.150. Termination Date.
The authority to levy the tax imposed by this chapter shall expire on March 31, 2045, without further action by the Town Council or the voters of the Town. After said date, the tax imposed by this Chapter can only be continued or reestablished by a majority vote of Los Gatos voters.
SECTION 2. ADJUSTMENT OF APPROPRIATIONS LIMIT.
Pursuant to Article XIIIB of the Constitution of the State of California and applicable laws, the appropriations limit for the Town is hereby increased by the aggregate sum authorized to be levied by this tax for fiscal year 2024-2025 and each year thereafter.
SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.
This ordinance is exempt from the California Environmental Quality Act, Public Resources Code section 21000 et seq., under, including without limitation, Public Resources Code section 21065, and CEQA Guidelines sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the activity authorized herein may have a significant effect on the environment.
ITEM NO. 23.
SECTION 4. 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.
SECTION 5. EFFECTIVE DATE.
This ordinance relates to the levying and collecting of the Town transactions and use taxes and shall take effect immediately.
SECTION 6. NOTICE.
Upon approval by the voters, the Town Clerk Administrator shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law. * * * * * * * * *
It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024 General Municipal Election and took effect 10 days following adoption of a resolution declaring the results of the election at a regular meeting of the Town Council held on _____, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ITEM NO. 23.
1 of 3
Resolution 2024- June 18, 2024
ATTACHMENT 5
RESOLUTION NO. _______
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS,
CALIFORNIA, SUBMITTING AN ADVISORY MEASURE TO THE VOTERS AT THE TUESDAY, NOVEMBER 5, 2024, GENERAL MUNICPAL ELECTION WHEREAS, the Town Council is submitting to the qualified voters of the Town a proposed one-eighth of one percent (0.125%) general Transactions and Use Tax (the "Tax") to be collected in addition to the existing one-eighth of one percent (0.125%) general Transactions and Use Tax currently being collected within the Town; and
WHEREAS, revenues from the Tax, if approved by a majority of the qualified voters voting on the measure, could legally be used by the Town for any legitimate municipal purpose; and WHEREAS, the Town Council wishes to ask the voters to state in a non-binding measure whether they would prefer the revenues from the Tax to be spent on certain identified priorities; and
WHEREAS, by Resolution 2024-029, the Town Council of the Town of Los Gatos called a municipal election to be held on Tuesday, November 5, 2024, (“the Election”) and requested the Board of Supervisors of the County of Santa Clara to consolidate the election with the General Statewide election; and
WHEREAS, the consolidated municipal election will be held, regulated, and conducted in accordance with the provisions of the law as provided in Resolution 2024-029.
NOW THEREFORE, BE IT RESOLVED, that the Town Council orders as follows:
Section 1. The Town Council finds and determines that each of the findings set forth above are true and correct.
Section 2. The Town Council hereby submits the following question to the qualified voters of the Town at the Election and appear on the ballot immediately before the general tax measure:
“If Measure __ is approved by Los Gatos voters, authorizing a local 1/8th cent sales tax, shall the measure providing that the revenues from Measure __ should be dedicated to the following categories: 1) Maintaining and enhancing Police and emergency services, including rapid 911 response times; 2) Wildfire and storm hazard prevention and protection; and 3) Infrastructure projects to improve traffic flow and reduce congestion, be adopted?”
YES
NO
ITEM NO. 23.
2 of 3
Resolution 2024- June 18, 2024
ATTACHMENT 5
This measure will require a majority of the qualified voters voting on the measure to pass.
Section 3. 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 on or before 4:00 p.m. on August 12, 2024.
Section 4. Pursuant to Elections Code Section 9286 et. seq., August 12, 2024, at 4:00 p.m. shall be the deadline for submission of arguments in favor of, and arguments against, this measure.
Arguments in favor of or against the measure shall not exceed 300 words in length. The Mayor, or her designee(s), is hereby authorized to prepare a written argument in favor of the proposed measure on behalf of the City Council. At the Mayor’s discretion, the Argument may also be signed by bona fide associations or by individual voters who are eligible to vote in the Town of Los Gatos. Each argument shall be signed, filed with the Town Clerk, and include the printed name(s) and signature(s) of the author(s) submitting the argument. If more than one argument for or against is received, the priorities established by Elections Code Section 9287 shall control.
Section 5. Subdivision (a) of section 9285 of the Elections Code shall apply to the Election and shall control the submission of any rebuttal arguments for this measure. If an argument in favor and an argument against the measure have been selected to be printed in the voter information guide, the Clerk shall send a copy of the argument in favor of the measure to the authors of the argument against the measure and a copy of an argument against the measure to the authors of the argument in favor of the measure. The rebuttal authors or persons designated by them may prepare and submit rebuttal arguments not to exceed 250 words in length. Rebuttal arguments must be submitted not later than August 19, 2024, by 4:00 p.m. This Section shall apply only to the election to be held on November 5, 2024, and shall then be repealed.
Section 6. Pursuant to Elections Code Section 10002, the Town Council hereby requests the Board of Supervisors of the County of Santa Clara to make available the services of the Registrar of Voters for the purpose of performing the usual services necessary in the conduct of the consolidated general municipal election, including the provisions of election supplies and voters' pamphlets; and that upon approval of such requests, the Registrar of Voters of the County of Santa Clara shall be reimbursed for all costs incurred by said services.
Section 7. Pursuant to Elections Code commencing with Section 10400, the Town Council hereby requests the Board of Supervisors of the County of Santa Clara to order the consolidation of the general municipal election to be conducted within the boundaries of the Town of Los Gatos on November 5, 2024, with respect to which the Board of Supervisors of the County of Santa Clara has the power to order a consolidation. The Town Council further consents to and orders the consolidation of the general municipal election hereby called with the statewide general election and acknowledges that the consolidated election will be held and conducted in the manner prescribed in Section 10418.
ITEM NO. 23.
3 of 3
Resolution 2024- June 18, 2024
ATTACHMENT 5
Section 8. The Town Clerk is hereby authorized and directed to publish a notice of the general municipal election within the time and in the manner specified in the Elections Code Section 12112. The Town Clerk is further authorized and directed to do all other things required by law to hold the general municipal election above provided.
Section 9. The Town Clerk is hereby authorized and directed to certify to the adoption of this resolution and to transmit a certified copy to the Board of Supervisors of the County of Santa Clara and to the Registrar of Voters of the County of Santa Clara.
Section 10. That the Town Manager is authorized to negotiate and execute an agreement with the Board of Equalization in accordance with Revenue and Taxation Code Section 7270 to perform all functions incident to the administration and operation of the ordinance if adopted.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos this 18th day of June, 2024 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: _________________
ITEM NO. 23.
ATTACHMENT 6
Examples of Approved General Taxes with Advisory Vote
Loomis, California, Sales Tax with Advisory (November 2016) General Tax - Yes 59.59%
Measure F: To support the continued operation of the Loomis library, and for other general fund purposes, shall a quarter percent transactions and use tax ("sales tax") raising approximately $250,000 annually be adopted for a period of ten years, subject to annual audits? Advisory Vote - Yes 64.41%
Measure G: If a local transactions and use tax is enacted in the Town of Loomis, should its revenue be used predominantly to support the continued operation of the Loomis Library? Santa Monica, California, Sales Tax with Advisory (November 2016) General Tax - Yes 62.35%
MEASURE GSH: To maintain and improve Santa Monica community services including support for preservation of affordable housing, reducing homelessness, school repair and improvement, education of Santa Monica children and students, and other general fund services, shall an ordinance be adopted to increase by one-half percent Santa Monica’s transactions and use tax, subject to independent annual audits, all funds used locally, no money going to Sacramento, raising approximately $16 million annually, until ended by the voters?
Advisory Vote - Yes 70.18%
MEASURE GS: ADVISORY VOTE ONLY: If a local transactions and use tax is enacted in Santa Monica, should half its revenue be used to improve and maintain local public schools, including attracting and retaining high-quality teachers, expanding access to pre-schools, assisting at-risk students, and improving school technology, arts, music, math, and science instruction; and half to help preserve and ensure housing in Santa Monica that is affordable, protect residents from displacement by rising housing costs, and reduce homelessness?
King City, California Sales Tax with Advisory (November 2018) General Tax - Yes 56.03%
Measure K: Shall the measure increasing the City of King’s current one-half percent sales tax to one percent to generate an estimated increase of $800,000 annually for general city expenses, such as public safety and other essential services, street repairs, economic development efforts, and improving the City’s overall financial solvency subject to citizen oversight, an annual audit, and expiration of the tax in 10 years be adopted?
Advisory Vote - Yes 68.11%
Measure L: If the City of King General Sales Tax Measure K passes, should the revenues be used to balance the budget in order to maintain existing services; pay off General Fund debt and establish a financial reserve; fund public safety staffing, services and projects designed to eliminate youth violence; fund improvements to street and sidewalk infrastructure; and fund downtown public improvements and other economic development efforts designed to increase businesses, jobs and visitors to King City?
ITEM NO. 23.
ATTACHMENT 6
Ukiah, California, Sales Tax with Advisory (November 2016) General Tax - Yes 51.5%
Measure Y: Shall Ordinance No. 1165 be adopted to impose as a general tax and additional transaction (sales) and use tax of one-half percent within the city limits of the City of Ukiah to fund essential City services, including street repair and maintenance? Such tax increase is estimated to raise $2,470,000 annually at a rate of .5%. The duration of the tax will continue unless or until the tax is repealed by majority vote in a municipal election
Advisory Vote - Yes 68.84%
Measure Z: Should street repair and maintenance and related public infrastructure improvements be the exclusive use of the revenues from an additional .5% sales tax in the City of Ukiah and add to and not replace current spending for street maintenance and repair? Fort Bragg, California, Hotel Tax with Advisory (November 2016) General Tax - Yes 59.55%
Measure AA: Shall Ordinance No. 924-2016 amending portions of Chapter 3.12 of the Fort Bragg Municipal Code to increase the City of Fort Bragg's existing Transient Occupancy Tax (a bed tax paid when overnight visitors rent a room) from ten percent (10%) to twelve percent (12%) to fund public services and maintain public areas, effective April 1, 2017, which proposed rate increase and amendment is anticipated to raise an additional $400,000 per year in revenue and which will continue until repealed by the City Council or the city voters, be adopted? Advisory Vote - Yes 69.65%
Measure AB: If Measure "AA" is approved by voters, shall the People of the City of Fort Bragg advise the City Council to use the additional funds in the following manner: (i) One-half of the revenues to substantially increase promotions, events, and marketing for Fort Bragg; (ii) One-quarter of the revenues to enhance Coastal Trail maintenance and security; (iii) One-eighth of the revenues to support establishment of the Noyo Center for Marine Sciences as a premiere visitor attraction; and (iv) Oneeighth of the revenues to undertake special projects that support tourism and benefit the community including, but not limited to, repair and enhancement of local athletic fields? Pasadena, California, Sales Tax with Advisory (November 2018) General Tax - Yes 68.74%
Measure I: Shall an ordinance be adopted to maintain essential City of Pasadena services such as fire, police, paramedics, emergency service/response times; keep fire stations open; improve neighborhood and school safety; repair streets/sidewalks; address homelessness; maintain after-school programs/senior services, and other general fund services, by establishing a ¾¢ sales tax providing approximately $21,000,000 annually until ended by voters; requiring audits and all funds locally controlled?
Advisory Vote - Yes 72.05%
Measure J: If Pasadena voters approve a local sales tax measure, should the City use 2/3rds of the measure’s annual revenue to maintain essential City of Pasadena services such as fire, police, paramedics, emergency service/response times; keep fire stations open; improve neighborhood and school safety; repair streets/sidewalks; address homelessness; maintain afterschool programs/senior services; with the remaining 1/3rd of the measure’s revenue going to support Pasadena public schools?
ITEM NO. 23.