RESOLUTION NO. 2016-06
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARYSVILLE,
CALIFORNIA, SUBMITTING TO THE ELECTORATE A BALLOT MEASURE AT A JUNE 7, 2016 SPECIAL ELECTION TO IMPOSE A TRANSACTIONS AND USE
TAX (SALES TAX) TO BE ADMINSTERED BY
THE STATE BOARD OF EQUALIZATION, KNOWN AS MEASURE "__"; AND
CALLING AND GIVING NOTICE OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON JUNE 7, 2016, AND REQUESTING CONSOLIDATION WITH THE
PRIMARY (STATEWIDE) ELECTION AND ESTABLISHING THE MANNER OF
HOLDING SAID ELECTION
At a regular meeting of the City Council of the City of Marysville, California, held on the 1st day of March, 2016.
WHEREAS, when a City seeks voter approval for a sales tax, article XIIIC, section 2(b) of the California Constitution requires the election to be consolidated with the general municipal election for City councilmembers, except in cases in which a City Council has unanimously declared that there is a fiscal emergency; and WHEREAS, the next general municipal election is not scheduled until November 2016. If the City waited until November 2016, the City will have to make drastic cuts to essential services. An election earlier than November 2016 is therefore required; and WHEREAS, the City has seen dramatic decreases in revenue because of a declining economy and continued takeaways by the State; and
WHEREAS, the State budget cuts have presented significant fiscal challenges to our City; and
WHEREAS, the City has slashed its budget by cutting service levels, employee positions, reforming employee pensions, purchasing essentials with grant funding, conserving energy to keep costs down, and participating in purchase pools with other cities to lower expenses; and
WHEREAS, the City has had to freeze positions in all City departments, including a dramatic reduction in public safety. This reduction in public safety personnel has increased our response times in both the police and fire departments. Increased response times to 911 calls potentially place our community at risk in emergency situations where every second counts; and WHEREAS, the City has projected a significant General Fund operating deficit over the next several years should the current economic and fiscal trends continue; and WHEREAS, while the City has already made steep budget cuts to all departments to address its deficit, including significantly reducing the total number of City employees, the City still faces more cuts to essential services, street paving, pothole and sidewalk repairs, park and lake maintenance; and
WHEREAS, the City Council held a noticed public hearing on February 2, 2016, to consider calling a special election to seek voter approval of a proposed general Transactions (sales) and Use Tax as authorized by Revenue and Taxation Code section 7285.9; and WHEREAS, at the conclusion of that hearing, the City Council concluded that all of the information presented indicated that the Council should call an election as soon as possible to ask the voters of the City to approve the sales tax ordinance, the revenue from which could be used to support general municipal services; and
WHEREAS, by adoption of this Resolution, and in due consideration of all of the foregoing reasons, the City Council believes that a fiscal emergency does now exist, requiring an election before November 2016; and
WHEREAS, a unanimous vote of the City Council is required for adoption of this resolution calling for an election and adoption of the ordinance in order to place the measures on the June 7, 2016 primary ballot.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Marysville, California as follows:
SECTION 1
Resolution No. 2016-04 adopted by the City Council of the City of Marysville on February 16, 2016, is hereby repealed and superseded.
SECTION 2
The foregoing recitals are true and correct. In due consideration thereof, it is hereby declared that a fiscal emergency exists in accordance with article XIIIC, section 2(b) of the California Constitution and, therefore, an election prior to November 2016 is permitted.
SECTION 3
There is hereby presented to the qualified electors of the City of Marysville at the Primary (Statewide) Election, to be held on June 7, 2016, a ballot measure to impose a Transactions and Use Tax to be administered by the State Board of Equalization. Such Measure shall be known as Measure “___.”
SECTION 4
The language of the ballot measure is attached hereto as Exhibit 1 and incorporated herein by this reference as if fully set forth herein.
SECTION 5
A Special Municipal Election is hereby called and ordered to be held in the City of Marysville on June 7, 2016, for the purpose of placing a measure on the ballot to impose a 1% Transactions and Use Tax.
SECTION 6
In accordance with the provisions of Sections 10400 and 10403 of the Elections Code, the City Council of the City of Marysville does hereby request that the Board of Supervisors of the County of Yuba, California, consolidate the Special Municipal Election called pursuant to Section 3 of this Resolution with the Primary (Statewide) Election to be held on June 7, 2016 SECTION 7
The Special Municipal Election hereby called shall be held in the manner provided for the Primary (Statewide) Election with which said Special Municipal Election is consolidated, and within the territory affected by the consolidations, the precincts, polling places, hours of election, and voting booths shall, in every case, be the same, and there shall be only one set of election officers in each of the precincts. Such precincts, polling places, hours of election, and precinct board members for the Primary (Statewide) Election shall be the same as those provided for the Special Municipal Election within the territory affected by the consolidation.
SECTION 8
Pursuant to provisions of Section 10002 of the Elections Code, the City Council of the City of Marysville hereby requests that the Board of Supervisors of the County of Yuba, California, permit the Yuba County Clerk to render to the City of Marysville such services as the City Clerk may request relating to the above-mentioned election including publication of all required election notices. The City Clerk is hereby authorized and directed to reimburse the County in full for the cost of any services performed by the Yuba County Clerk pursuant hereto upon presentation of an invoice to the City Clerk.
SECTION 9
Pursuant to the provisions of Section 10411 of the Elections Code, the Yuba County Board of Supervisors shall be and is authorized and directed to canvass the results of the Special Municipal Election hereby called.
SECTION 10
Pursuant to Elections Code sections 15372-15374 the County Clerk shall prepare a Certified Statement of Results within 30 days after the election and forward said certified statement to the City Clerk.
SECTION 11
The language of the proposed Transactions and Use Tax (Ordinance No. 1382) is attached hereto as Exhibit 2 and incorporated herein as if fully set forth herein, and shall be published in the voter guide as the full text of the measure.
SECTION 12
The City Manager and the City Clerk are hereby authorized and directed to take such further actions and execute such documents as are necessary to cause the Special Municipal Election to be conducted on behalf of the City of Marysville.
I HEREBY CERTIFY that the foregoing Resolution was duly and regularly introduced and adopted by the Council of the City of Marysville, California, on the 1st day of March, 2016, by the following vote:
AYES: Bill Simmons, Dale Whitmore, Jim Kitchen, Christopher Pedigo, and Ricky Samayoa
NOES: None
ABSENT: None
ABSTAIN: None
By: ________________________________________
Billie J. Fangman, City Clerk
CITY OF MARYSVILLE, CALIFORNIA
BY ITS CITY COUNCIL
____________________________________
Ricky A. Samayoa, Mayor
Exhibit 1
Ballot Language
MEASURE
Shall the City of Marysville enact a 1% sales tax (Transactions and Use Tax) for general municipal purposes, such as fire safety, police protection and emergency response services, traffic safety, streets and sidewalks repair, park improvements and maintenance, reducing debt and rebuilding financial reserves, with the following restrictions? This tax shall expire after ten years, on October 31, 2026. Annually, the City shall publish a report of how much tax revenue was received and how that money was used.
YES NO
Exhibit 2
ORDINANCE NO. 1382
AN ORDINANCE OF THE CITY OF MARYSVILLE
IMPOSING A TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE STATE BOARD OF EQUALIZATION
The City Council of the City of Marysville, State of California, does ordain as follows:
SECTION 1.
A new Chapter 3.05 entitled “Transactions and Use Tax” of Title 3 entitled “Revenue and Finance” of the Marysville Municipal Code is hereby added as follows:
3.05.010. TITLE. This ordinance shall be known as the City of Marysville Transactions and Use Tax Ordinance. The City of Marysville hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.
3.05.020. 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.
3.05.030. PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization 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 State Board of Equalization in administering and collecting the California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.
Exhibit 2
3.05.040. CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
3.05.050 TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one percent (1.0%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.
3.05.060 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 State Board of Equalization.
3.05.070 USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one percent (1.0%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
3.05.080 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.
3.05.090 LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Exhibit 2
Equalization, in performing the functions incident to the administration or operation of this Ordinance.
3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
(a). Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; (b). Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
3.05.100 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.
3.05.110 EXEMPTIONS AND EXCLUSIONS.
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any City, City and County, or County pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
(a). With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Exhibit 2
Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
(b). With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this 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.
Exhibit 2
6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels 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 City.
D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
3.05.120 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.
3.05.130 ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this 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 2.
3.05.140 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 3.
3.05.150 EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City Transactions and Use Taxes and shall take effect immediately. //
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Exhibit 2
The foregoing ordinance was introduced before the City Council of the City of Marysville, County of Yuba, at the meeting of the City Council of said City, held on the Second day of February, 2016, and finally adopted at the regular meeting of said Council held on the Sixteenth day of February, 2016, by the following vote:
AYES: Bill Simmons, Dale Whitmore, Jim Kitchen, Christopher Pedigo, and Ricky Samayoa
NOES: None
ABSTAIN: None
ABSENT: None
____________________________________
Ricky A. Samayoa, Mayor
ATTEST: _______________________________
Billie J. Fangman, City Clerk