for and against Measure G; and (d) the total number of votes for Measure G amounting to 7,471, and the total number of votes against Measure G amounting to 6,398.
Pursuant to California Revenue and Taxation Code section 7285.9, th e City of Moreno Valley is authorized to levy a transactions and use tax for general purposes, subject to majority voter approval, which is wholly consistent with the Measure G ballot question in that this transactions and use tax ordinance shall impose a one percent tax that may be used for any local general municipal purpose including, but not limited to, maintain 9-1-1 emergency response times, robbery/burglary prevention, neighborhood police patrols/fire engine service levels; address homelessness, traf fic; repair potholes/streets; keep public areas safe/clean; help retain local businesses; maintain senior services, youth/afterschool programs, until ended by voters, with independent financial audits, public review, all funds used locally.
The California Supreme Court has recognized in Associated Home Builders etc., Inc. v.
City of Livermore (1976) 18 Cal.3d 582 that the initiative represents one of the most precious rights of our democratic process and that it is the duty of the courts to jealously guard this right of the people. The California Supreme Court has further held in Silicon Valley Taxpayers' Assn., Inc. v. Santa Clara County Open Space Authority (2008) 44 Cal.4th 431 that when construing constitutional provisions and statutes, including those enacted through voter initiative the primary concern is giving effect to the intended purpose of the provisions at issue by construing provisions in a manner that effectuates the enactors' (voters) purpose in adopting the law.
This transactions and use tax ordinance, which is consistent with the intent of Measure G in that it will impose a one -percent tax that may be used for any local general municipal purpose including, but not limited to, maintain 9 -1-1 emergency response times, robbery/burglary prevention, neighborhood police patrols/fire engine service levels; address homelessness, traffic; repair potholes/stre ets; keep public areas safe/clean; help retain local businesses; maintain senior services, youth/afterschool programs, until ended by voters, with independent financial audits, public review, all funds used locally, shall be incorporated into Chapter 3.37 of Title 3 of the Moreno Valley Municipal Code.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Steven B. Quintanilla Steven B. Quintanilla
Interim City Attorney Interim City Attorney
CITY COUNCIL GOALS
Revenue Diversification and Preservation. Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
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Public Safety. Provide a safe and secure environment fo r people and property in the community, control the number and severity of fire and hazardous material incidents, and provide protection for citizens who live, work and visit the City of Moreno Valley.
Public Facilities and Capital Projects . Ensure that n eeded public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.
Positive Environment. Create a positive environment for the development of Moreno Valley's future.
Community Image, Neighborhood Pride an d Cleanliness . Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
ATTACHMENTS
To view large attachments, please click your “bookma rks” on the left hand side of this document for the necessary attachment.
None
APPROVALS
Budget Officer Approval Approved . 3/23/22 11:26 AM City Attorney Approval Approved .
City Manager Approval Approved . 3/23/22 11:28 AM A.3
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Ordinance No. 2022-___
Adopted:
ORDINANCE NO. _____
AN ORDINANCE OF THE PEOPLE OF THE CITY OF MORENO VALLEY, CALIFORNIA, ADDING CHAPTER 3.3 7 TO TITLE 3 OF THE MORENO VALLEY MUNICIPAL CODE TO ENACT A ONE -CENT (1¢) GENERAL
TRANSACTIONS AND USE TAX (SALES TAX) TO BE ADMINISTERED
BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION
WHEREAS, the Moreno Valley City Council placed Measure G on the November 2, 2021, Special Election ballot, titled “Moreno Valley Essential Services Measure” which asked the voters the following: “Shall an ordinance be adopted to maintain 9-1-1 emergency response times, robbery/burglary prevention, neighborhood police patrols/fire engine service levels; address homelessness, traffic; repair potholes/streets; keep public areas safe/clean; help retain local businesses; maintain senior services, youth/afterschool programs, and other general services by establishing a 1¢ sales tax, generating approximately $20,000,000 annually until ended by voters, with independent financial audits, public review, all funds used locally?”; and
WHEREAS, the Riverside County Registrar of Voters canvassed the returns of the November 2, 2021, Special Election on November 18, 2021, and the Moreno Valley City Council at a regularly scheduled meeting held on December 7, 2021, certified the results of the election that included the following determinations: (a) the whole number of votes cast in the City of Moreno Valley was 13,869 votes; (b) the measure that appeared on the ballot and voted upon was Measure G; (c) the number of votes given at each precinct for and against Measure G; and (d) the total number of votes for Measure G amounting to 7,471, and the total number of votes against Measure G amounting to 6,398; and
WHEREAS, pursuant to California Revenue and Taxation Code section 7285.9 the City of Moreno Valley is authorized to levy a transactions and use tax for general purposes, subject to majority voter approval, which is wholly consistent with the Measure G ballot question in that this transactions and use tax ordinanc e shall impose a one percent tax that may be used for any local general municipal purpose including, but not limited to, maintain 9 -1-1 emergency response times, robbery/burglary prevention, neighborhood police patrols/fire engine service levels; address h omelessness, traffic; repair potholes/streets; keep public areas safe/clean; help retain local businesses; maintain senior services, youth/afterschool programs, until ended by voters, with independent financial audits, public review, all funds used locally; and
WHEREAS, the California Supreme Court has recognized in Associated Home Builders etc., Inc. v. City of Livermore (1976) 18 Cal.3d 582 that the initiative represents one of the most precious rights of our democratic process and that it is the duty of the courts to jealously guard this right of the people; and
WHEREAS, the California Supreme Court has further held in Silicon Valley Taxpayers' Assn., Inc. v. Santa Clara County Open Space Authority (2008) 44 Cal.4th A.3.a
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Ordinance No. 2022-___
Adopted:
431 that when construing constitutional provisions and statutes, including those enacted through voter initiative the primary concern is giving effect to the intended purpose of the provisions at issue by construing provisions in a manner that effectuates the enactors' (voters) purpose in adopting the law; and
WHEREAS, this transactions and use tax ordinance, which is consistent with the intent of Measure G in that it will impose a one-percent tax that may be used for any local general municipal purpose including, but not limited to, maintain 9 -1-1 emergency response times, r obbery/burglary prevention, neighborhood police patrols/fire engine service levels; address homelessness, traffic; repair potholes/streets; keep public areas safe/clean; help retain local businesses; maintain senior services, youth/afterschool programs, until ended by voters, with independent financial audits, public review, all funds used locally , shall be incorporated into Chapter 3.3 7 of Title 3 of the Moreno Valley Municipal Code.
THE PEOPLE OF THE CITY OF MORENO VALLEY ORDAIN AS FOLLOWS:
Section 1. ELECTIONS CODE SECTION 13119 STATEMENT
That the one percent transactions and use tax is estimated to produce approximately $20 million per year, which may be used to fund general municipal services, and which shall remain in effect unless subsequently repealed by the voters.
Section 2. LOCAL USE OF PROCEEDS
That the revenue produced by the 1% transactions and use tax may be used for any local general municipal purpose including, but not limited to, maintain 9 -1-1 emergency response times, robbery/burglary prevention, neighborhood police patrols/fire engine service levels; address homelessness, traffic; repair potholes/streets; keep public areas safe/clean; help retain local businesses; maintain senior services, youth/afterschool programs, until ended by voters, with independent financial audits, public review, all funds used locally.
Section 3. ANNUAL INDEPENDENT AUDITS
That the financial records, accounting practices and internal controls related to the collection, deposit and expenditure of the revenue produced by the one percent transactions and use tax shall be examined by means of an annual audit conducted by an independent auditor whose services shall be retained by the City through a contract for services as an independent contractor and available to the public for review.
Section 4. ONE PERCENT TRANSACTIONS AND USE TAX
That Chapter 3.37 (Transactions and Use Tax) shall be added to Title 3 (Revenue and Finance) of the Moreno Valley Municipal Code percent to read as follows:
Chapter 3.37
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Ordinance No. 2022-___
Adopted:
TRANSACTIONS AND USE TAX
3.37.010 Short title.
This chapter shall be known as the “Moreno Valley Transactions and Use Tax Ordinance.”
3.37.020 Rate.
The rate of the transactions and use tax imposed by this chapter shall be one percent.
3.37.030 Purpose.
The city council declares that the ordinance codified in this chapter is adopted to achieve the following, among other, purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the 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 transactions and use tax ordinance which 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 transactions and use tax ordinance which imposes a tax and provides a measure therefor 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 transactions and use tax ordinance which can be administered in a manner that will, to the degree possible consistent with the provisions of Part 1. 6 of Division 2 of the Revenue and Taxation Code , minimize the cost of collecting city 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 chapter.
3.37.040 Contract with state.
Prior to the operative date th e 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 A.3.a
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Ordinance No. 2022-___
Adopted:
case the operative date shall be the first day of the first calendar quarter following the execution of such a contract rather than the first day of the first calendar quarter following the adoption of the ordinance codified in this chapter.
3.36.050 Transactions and use tax.
For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the city at the rate stated in Section 3.37.020 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in this city on and after the operative date.
3.36.060 Place of sale.
For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out -of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.
3.37.070 Use tax.
An excise tax is imposed on the storage, use or other consumption in this city of tangible personal property purchased from any retailer on and after the operative date for storage, use or other consumption in thi s city at the rate stated in Section 3.37.020 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.
3.37.080 Adoption of provisions of state law.
Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 of Division 2 of the Revenue and Taxation Code are adopted and made a part of this chapter as though fully set forth herein.
3.37.090 Limitations on adoption of state law.
In adopting the provisio ns of Part 1 of Division 2 of the Revenue and Taxation Code , wherever the State of California is named or referred to as the taxing agency, the na me of the city shall be substituted therefor. The substitution, however, shall not be made when the word “State” is used as part of the title of the State Controller, the State Treasurer, the State Board of Control, the State Board of Equalization, the Sta te Treasury, or the Constitution of the state of California; the substitution shall not be made when the result A.3.a
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Ordinance No. 2022-___
Adopted:
of that substitution would require action to be taken by or against the city, or any agency thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this chapter; the substitution shall not be made 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 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 su ch 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 to 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 provisions of that Code; the substitution shall not be made in Sect ions 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code ; and the substitution shall not be made for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 or in the definition of that phrase in Section 6203.
3.37.100 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 seller’s permit shall not be required by this chapter.
3.37.110 Exclusions and exemptions.
The following exclusions and exemptions shall apply:
A. The amount subject to tax shall not include any sales or use tax imposed by the State of California upon a retailer or consumer.
B. The storage, use or other consumption of tangible personal property, the gross receipts from the sale of which have been subject to tax under a sales and use tax ordinance enacted in accordance with Part 1.5 of Division 2 of the Revenue and Taxation Code by any city and county, county, or city in this state shall be exempt from the tax due under this ordinance.
C. There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of aircraft to be used or consumed principally outside the city 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 th e State of California , the United States, or any foreign government.
D. In addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code, the storage, use, or other consumption of tangible personal property 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 A.3.a
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Ordinance No. 2022-___
Adopted:
property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of th e State of California , the United States, or any foreign government is exempted from the use tax.
3.37.120 Amendments.
All subsequent amendments of the Revenue and Taxation Code which relate to sales and use taxes and which are not inconsistent with Part 1. 6 and 1.7 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
3.37.130 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 this city, or against any officer of the state or th e city, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
3.37.140 Violations—Penalties.
Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars ($500.00) or by imprisonment for a period of not more than six months, or by both such fine and imprisonment.
Section 5. SEVERABILITY
That should any provision, section, paragraph, sentence, or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby ado pted shall remain in full force and effect.
Section 6. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Moreno Valley that conflict with the provisions of this ordinance are hereby repealed.
Section 7. AMENDMENTS
That Section 3. 37.020 (Rate) of Chapter 3. 37 (Transactions and Use Tax) of Title 3 (Revenue and Finance) of the Moreno Valley Municipal Code shall not be subsequently amended unless approved by the voters, but the remaining provisions of Chapter 3. 37 (Transactions and Use Tax) may be amended by the city council unless otherwise provided by applicable law.
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Ordinance No. 2022-___
Adopted:
Section 8. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.
Section 9. OPERATIVE DATE OF ONE PERCENT TRANSACTIONS
AND USE TAX
That the operative date of the additional one percent sales and use tax shall be April 1, 2022, which is the first day of the first calendar quarter commencing more than 110 days after adoption of this ordinance by the voters on November 2, 2021.
PASSED AND ADOPTED by the People of the City of Moreno Valley at a special municipal election held and conducted with the consolidate d general election held on November 2, 2021.
__________________________
Mayor
ATTESTED BY:
_____________________________
City Clerk
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