1 APPROVED AS TO FORM AND LEGALITY
___________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
ORDINANCE NO. ________________C.M.S.
INTRODUCED BY COUNCIL PRESIDENT NIKKI FORTUNATO BAS AND
COUNCILMEMBERS KEVIN JENKINS, REBECCA KAPLAN, AND TREVA REID
ORDINANCE 1) SUBMITTING TO THE VOTERS AT A SPECIAL
ELECTION TO BE HELD ON APRIL 15, 2025, A PROPOSED
ORDINANCE TO IMPOSE A TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION; 2) REQUESTING CONSOLIDATION OF THE
ELECTION WITH ALL SPECIAL MU NICIPAL ELECTIONS TO BE
HELD IN THE CITY OF OAKLAND ON APRIL 15, 2025; AND 3)
DIRECTING THE CITY CLERK TO TAKE ANY AND ALL ACTIONS
NECESSARY UNDER LAW TO PREPARE FOR AND CONDUCT THE
APRIL 15, 2025 SPECIAL MUNICIPAL ELECTION
WHEREAS , under the “Transactions and Use Tax Law,” Part 1.6 of Division 2 of the Revenue and Taxation Code, the City may adopt a transactions and use tax to be imposed within the City; and
WHEREAS, under the limitation in section 7251.1 of the Revenue and Taxation Code, the City may adopt a transactions and use tax with a tax rate of up to 0.5%; and
WHEREAS, Oakland City Charter section 1103 provides that all elections and procedures related thereto shall be in acco rdance with the applicable prov isions of state law, except as otherwise may be provided by ordinance or the City Charter; and
WHEREAS, Oakland Municipal Code section 3.08.010 provides that except as may be otherwise provided in Chapter 3.08 all city elections and all p rocedures relating thereto shall be, where practicable, in accordance with the applicable provisions of state law relating to elections in general law cities; and
WHEREAS, by separate resolution, the City Council will call a special municipal election to be held on April 15, 2025 for the purposes of filling a vaca ncy in the office of the Mayor and the office of the District 2 Councilmember; and
WHEREAS, California Elections Code sections 10400 through 10403 provide that two or more municipal elections called by the same body may be consolidated upon an order by the county board of supervisors if the local body submits to the county legislation that requests consolidation of the elections
NOW, THEREFORE, THE CITY COUNCI L OF THE CITY OF OAKLAND DOES ORDAIN AS FOLLOWS:
SECTION 1. That the Oakland City Council finds and determines the forgoing recitals are true and correct and hereby adopts and incorporates them into this Ordinance.
SECTION 2. That the Oakland City Council does hereby call for a special el ection on April 15, 2025 and submits to the voters at the election an Ordinance that reads as follows:
Be it ordained by the People of the City of Oakland:
That a new chapter 4.26 is added to the Oakland Municipal Code to read as follows:
4.26.010. TITLE. This ordinance shall be known as the City of Oakland Transactions and Use Tax Ordinance. The city of Oakland hereinafter shall be ca lled "City." This ordinance shall be applicable in the incorporated territory of the City.
4.26.020. OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of thi s ordinance. For purposes of Revenue and Taxation Code section 7265, this ordinance shall be considered adopted on the date of the election in which it is approved by the qualified voters of the City.
4.26.030. PURPOSE. This ordinance is a dopted to achieve the following , among other purposes, and directs that the p rovisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transacti ons 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 measur e 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 i ncorporates 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 i mposes 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 p racticable to, and requires the least possible deviation from, the exis ting statutory and administrat ive procedures followed by the California Department of Tax and Fee Administration in administ ering and collecting the California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that c an 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 upo n persons subject to taxation under the provisions of this ordinance.
4.26.040. CONTRACT WITH STATE. Prior t o the operative date, the City 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 t ax ordinance; provided, that if the City 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.
4.26.050. 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 0.5% 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.
4.26.060. PLACE OF SALE. For the purpo ses of this ordinance, all reta il 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 desti nation or to a common carrier for delivery to an out-of-state destination. The gross receipts fr om such sales shall include delivery charges, when such charges are subject to the state sales and u se tax, regardless of the place to which delivery is made. In the event a retailer has no permane nt 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 prescribe d and adopted by the California Department of Tax and Fee Administration.
4.26.070. USE TAX RATE. An excise tax is hereby imposed on the storag e, 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 cons umption in said territory at the rate of 0.5% of the sales price of the property. The sales price sh all include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
4.26.080. ADOPTION OF PROVISIONS OF ST ATE LAW. Except as otherwise provided in this ordinance and except insofar as they are incon sistent 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.
4.26.090. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the prov isions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to a s 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 S tate Controller, State Treasurer, 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 th an by or against the California Department of Tax and Fee Administration, in performing the fun ctions incident to the administration or operation of this Ordinance.
3. In those sections, including, but not necessarily limite d 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 certa in 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 su bject to tax by the state under the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence there of), 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 d efinition of that phrase in Section 6203.
1. “A retailer engaged in bus iness in the District” shall also include any retailer that, in the preceding calendar year or the current calendar ye ar, has total combined sales of tangible personal property in thi s state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand doll ars ($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.
4.26.100. 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 tr ansactor's permit shall not be required by this ordinance.
4.26.110. EXEMPTIONS AND EXCLUSIONS.
A. There shall be excluded from the measure of the transactio ns 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 B radley-Burns Uniform Local S ales 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 t ransactions 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 outsid e the county in which the sale is made and directly and exclusively in the use of such aircraft a s 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 sh ipped 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 400 0) of Division 3 of the Vehicle Code, aircraft licensed in com pliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered u nder 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 o bligated 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 persona l property which is a continui ng 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 sec tion, the sale or lease of tangible personal property shall be deemed not to be obligat ed pursuant to a contract or lease for any period of time for which any party to the contract or l ease 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 ordina nce, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subje ct to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operat ors 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 t he laws of this State, the Un ited States, or any foreign government. This exemption is in addition to the exemptions pr ovided 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 fo r 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 pow er over, the tangible personal property arises under a lease which is a continuing pu rchase 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 subpar agraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right o r power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engage d 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 bus iness in the City" shall also i nclude any retailer of any of the following: vehicles subject to registration pursuan t to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licen sed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels reg istered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retai ler shall be required to collect use tax from any purchaser who re gisters or licenses the vehicl e, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this ordinance may cre dit 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 th e 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.
4.26.120. AMENDMENTS. All amendments subsequent to the effective date o f 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, prov ided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
4.26.130. ENJOINING COLLECTION FORBIDDE N. 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 t he Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
4.26.140. SEVERABILITY. If any provision of this ordinance or the appli cation 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.
4.26.150. EFFECTIVE DATE. This ordinance relates to the levying and col lecting of the City transactions and use taxes and shall take effect immediately.
4.26.160. TERMINATION DATE. The authority to levy the tax imposed by th is ordinance shall continue until terminated by the voters.
SECTION 3. This ordinance shall become effective immediately on final ado ption if it receives six or more affirmative votes; otherwise it shall beco me effective upon the seventh day after final adoption
SECTION 4. That each ballot used at said election shall have printed there in, in addition to any other matter required by law, the following:
MEASURE
Measure .
[FINAL BALLOT QUESTION SUBJECT TO CITY
ATTORNEY APPROVAL]
Yes
No
SECTION 5. That the City Council hereby authorizes and directs the City Clerk of the City of Oakland (the “City Clerk”) at l east 88 days prior to the specia l election to file with the Alameda County Clerk certified copies of this Ordinance.
SECTION 6. That the City Council does hereby request that the Board of Sup ervisors of Alameda County include on the ballots and sample ballots the measure language to be voted on by the voters of the City of Oakland.
SECTION 7. That the City Council does hereby request that the Registrar of Voters of the County of Alameda perform necessary services in connection with said election.
SECTION 8. The City Council does hereby request that the Board of Supervisors of Alameda County order the consolidation of the City of Oakland Special M unicipal Elections to be held on Tuesday, April 15, 2025.
SECTION 9. That the consolidated Municipal Election shall be held and conducted in the manner required in Section 10418 of the California Elections Code.
SECTION 10. That the City Attorney, in accord with the City Attorney's powers and duties is hereby authorized to insert the final ballot question into this Ordinance after adoption by the Council so that the ballot question constitutes a true and impa rtial synopsis of the final proposed measure; and to make any changes to the texts of the measure as described herein to conform to any legal requirements or requirements of the County Registrar or the California Department of Tax and Fee Administration.
SECTION 11. That the City Clerk is hereby directed to cause the posting, pu blication, and printing of notices, pursuant to the requirements of the Charte r of the City of Oakland, Chapter
3.08 of the Oakland Municipal Code, the California Government C ode, and the California Elections Code.
SECTION 12. That in accordance with the Elections Code and the Oakland Muni cipal Code, the City Clerk shall fix and determine a date for submission of a r g u m e n t s f o r o r a g a i n s t s a i d proposed Ordinance and rebuttals and said date shall be posted in the Office of the City Clerk.
SECTION 13. That the City Clerk and City Administrator are hereby authoriz ed and directed to take any and all actions necessary under law to prepare for and conduct the special election and appropriate all monies necessary for the City Administrator and City Clerk to prepare and conduct the special election.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES – FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND
PRESIDENT FORTUNATO BAS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California
D a t e o f A t t e s t a t i o n :
NOTICE AND DIGEST
ORDINANCE 1) SUBMITTING TO THE VOTERS AT A SPECIAL
ELECTION TO BE HELD ON APRIL 15, 2025, A PROPOSED
ORDINANCE TO IMPOSE A TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION; 2) REQUESTING CONSOLIDATION OF THE
ELECTION WITH ALL SPECIAL MU NICIPAL ELECTIONS TO BE
HELD IN THE CITY OF OAKLAND ON APRIL 15, 2025; AND 3)
DIRECTING THE CITY CLERK TO TAKE ANY AND ALL ACTIONS
NECESSARY UNDER LAW TO PREPARE FOR AND CONDUCT THE
APRIL 15, 2025 SPECIAL MUNICIPAL ELECTION
This ordinance would call a special municipal election to be held on April 15, 2025 for the purpose of submitting to the voters a proposed ordinance to impose a general transactions and use tax at a rate of .5%, to be administered by the California Department of Tax and Fee Administration. This ordinance would request consolidation of the election with all special municipal elections to be held in the City of Oakland on April 15, 2025 and direct the City Clerk to take all actions necessary to conduct the April 15, 2025 special municipal election.