CITY OF EL PASO DE ROBLES
"The Pass of the Oaks"
City Council Special Meeting Agenda
Monday, December 9, 2024, 4:00 PM
Council Chamber - Library/Conference Center
1000 Spring Street
Paso Robles, CA 93446
Residents can livestream the meeting at www.prcity.com/youtube, and call (805)865-7276 to provide public comment via phone. The phone line will open just prior to the start of the meeting and remain open throughout the meeting to ensure the opportunity to comment on each item heard by the Council. Written public comments can be submitted via email to [email protected] prior to 12:00 noon on the day of the Council meeting to be posted as an addendum to the Agenda. If submitting written comments in advance of the meeting, please note the agenda item by number or name.
City Council meetings will be live-streamed during the meeting and also available to play later on YouTube by accessing the following link: www.prcity.com/youtube.
Any writing or document pertaining to an open session item on this agenda which is distributed to a majority of the City Council after the posting of this agenda will be available for public inspection at the time the subject writing or document is distributed. The writing or document will be available for public review in the City Clerk’s Office, 1000 Spring Street, Paso Robles, CA, during normal business hours, and may be posted on the City’s web site at www.prcity.com/meetings.
AMERICANS WITH DISABILITIES ACT Any individual, who because of a disability needs special assistance to attend or participate in this meeting, may request assistance by contacting the City Clerk’s Office (805) 237- 3960. Whenever possible, requests should be made four (4) working days in advance of the meeting.
Pages
A. CALL TO ORDER
B. ROLL CALL
C. PLEDGE OF ALLEGIANCE
D. STAFF INTRODUCTIONS
E. NO GENERAL PUBLIC COMMENT
Public comment for Special Meetings is limited to agenda items only and an opportunity will be provided for each agenda item after the item has been presented.
F. DISCUSSION ITEMS
1. Declaration and Certification of Election Results for Measure I-24 3 - 20 Melissa Boyer, City Clerk
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Recommendation: Approve Resolution 24-XXX reciting the facts of the General Municipal Election held on November 5, 2024 and declaring the results of Measure I-24.
2. Measure I-24 Transaction and Use Tax – Approval of California Department of Tax and Fee Preparatory and Administration Agreements
21 - 38
Ryan Cornell, Director of Administrative Services
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Recommendation: It is recommended that City Council take the following actions:
1. Approve Resolution 24-XXX (A), authorizing the Director of Administrative Services to execute agreements with the California Department of Tax and Fee Administration for implementation of a local transaction and use tax.
2. Approve Resolution 24-XXX, (B) authorizing the examination of sales or transactions and use tax records.
3. Approve Resolution 24-XXX (C) expressing the intent to prioritize spending of future Measure I-24 sales tax revenues.
4. Authorize the Administrative Services Director to take all further actions necessary to implement Measure I-24's ½-cent transaction and use tax (sales tax) approved the City’s voters.
G. ADJOURNMENT
City Council Special Meeting Agenda December 9, 2024
Council Agenda Report
From: Melissa Boyer, City Clerk
Subject: Declaration and Certification of Election Results for Measure I-24 CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Date: December 9, 2024
Facts
1. On June 4, 2024, the City Council approved resolutions to place a general transactions and use tax (sales tax) measure at the rate of 1/2 percent (0.5%) on the General Municipal Election ballot for Tuesday, November 5, 2024 – Measure I-24. The election for City Council Members and other elected officers was also placed on this ballot.
2. The City of El Paso de Robles General Municipal Election was conducted on November 5, 2024 by the San Luis Obispo County Registrar of Voters and the results were certified by the Registrar of Voters on December 3, 2024.
3. According to the report provided by the Registrar of Voters, there were a total of 7,502 votes cast in favor of Measure I-24 and 6,283 votes cast against Measure I-24. Therefore, Measure I-24 has passed.
4. California Elections Code requires that, once the results are certified by the Registrar of Voters, the City Council must meet and declare the results of the election “no later than the next regularly scheduled city council meeting following presentation of the 28-day canvass of the returns, or at a special meeting called for this purpose”.
Options
1. Take no action;
2. Approve Resolution 24-XXX Certifying Election Results for Measure I-24;
3. Provide alternative direction to staff.
Analysis and Conclusions
The City Council is already scheduled to hold its next regular meeting on December 17, 2024. It was originally intended to declare the results of the General Municipal Election for both City Council Members and Measure I-24 at this regular meeting.
However, the California Department of Tax and Fee Administration (CDTFA), the State agency that collects local sales taxes like Measure I-24 for cities, has informed the City that, due to a timing technicality in State tax law, the City Council must certify the Measure I-24 election results by no later than Thursday, December 12. If it does not, collection of the Measure I-24 tax will not start on April 1, 2025 as anticipated but will be delayed until July 1, 2025. This represents a fiscal quarter of potential sales tax revenue not collected and remitted to the City.
City Council Special Meeting Agenda December 9, 2024
Therefore, staff has scheduled this special meeting to give the Council the opportunity to certify the results for Measure I-24 this evening. This will satisfy the technical timing rules outlined above and ensure that sales tax collection commences on April 1, 2025 as anticipated.
Attached is a draft resolution accepting the County Clerk’s certification of the election and an attachment with the Statement of Votes cast for Measure I-24, and Statement of Certification of Election Results for Measure I-24 at the 2024 General Municipal Election.
It is noted that this action is limited to Measure I-24 only. The certification of the election results for City Council Members and other elected officers will remain on schedule for December 17, 2024 as originally planned. At that time, newly elected Members will be sworn in and assume office.
Fiscal Impact
None if the Resolution is approved. If not approved, the Measure will not take effect until July 1, 2025, which will result in the loss of an estimated $1.5 million in sales tax revenues that will be available for general funds uses, including road repairs.
CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Recommendation (Option 2)
Approve Resolution 24-XXX reciting the facts of the General Municipal Election held on November 5, 2024 and declaring the results of Measure I-24.
Attachments
1. Resolution 24-XXX - Measure I-24 Declaration of Results a. Exhibit A - Statement of Votes Cast Report
b. Exhibit B - Statement of Certification of Election Results 2024 General Election from the Registrar of Voters
c. Exhibit C - Ordinance No. 1154 adopted by the citizens of the City of El Paso de Robles, CA on November 5, 2024, at the General Municipal Election
City Council Special Meeting Agenda December 9, 2024
Attachment 1
RESOLUTION 24-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES RECITING THE FACTS OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 5, 2024 AND DECLARING THE RESULTS OF BALLOT MEASURE I-24
WHEREAS, a General Municipal Election was held and conducted in the City of El Paso de Robles, California, on Tuesday, November 5, 2024, as required by law; and WHEREAS, notice of the election was given in the time, form and manner as provided by law; voting precincts were properly established; election officers were appointed, and in all respects the elections were held and conducted and the votes were cast, received and canvassed and the returns made and declared in the time, form and manner as required by the provisions of the Elections Code of the State of California for the holding of elections in general law cities; and WHEREAS, the County Election Department canvassed the returns of the election and has certified the results to this City Council; the results are received, attached, and made a part hereof as “Exhibit A”.
NOW, THEREFORE, the City Council of the City of El Paso de Robles hereby finds, determines and resolves as follows:
Section 1. That the whole number of ballots cast in the precincts including vote-by-mail ballots and provisional ballots are detailed in the Official Canvass attached as Exhibit A.
Section 2. That the following local Measure(s) voted upon at the election is/are as follows:
Measure I-24
PASO ROBLES LOCAL SERVICES FUNDING CONTINUATION MEASURE.
Shall the measure to extend the existing voter-approved ½¢ sales tax for general government use including to improve Paso Robles’ longterm finances, maintain important services such as fixing damaged streets/roads/infrastructure, repairing potholes, synchronizing traffic signals, maintaining traffic/pedestrian safety, and improving emergency evacuation routes, providing approximately $5,500,000 annually until ended by voters, requiring audits, citizen oversight, public disclosure of all spending, all funds for Paso Robles, be adopted?
YES
NO
Section 3. That the number of votes cast for and against the Measure, are set forth in “Exhibit A,” which is attached hereto and incorporated herein by this reference.
Section 4. The City Council does declare and determine that as a result of the election:
A majority of voters voting on Measure I-24 did vote in favor thereof, the Measure I-24 carried, and it shall be deemed adopted and ratified.
City Council Special Meeting Agenda December 9, 2024
Section 5. The City Clerk shall enter on the records of the City of El Paso de Robles, a statement of result of the election, showing:
a) The whole number of votes/ballots cast in the City;
b) The measure voted upon;
c) The number of votes cast at each precinct for and against Measure I-24; and d) The total number of votes cast for each person, and for and against Measure I-24.
Section 6. Compliance with California Environmental Quality Act. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Further, if the activity is deemed a project this City Council finds that this Resolution is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.
Section 7. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
Section 8. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof.
The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.
Section 9. Effective Date. This Resolution shall become effective immediately.
APPROVED this 9
th day of December, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
Exhibit A - Statement of Votes Cast Report
Exhibit B - Statement of Certification of Election Results 2024 General Election from the Registrar of Voters
Exhibit C - Ordinance No. 1154 adopted by the citizens of the City of El Paso de Robles, CA on November 5, 2024, at the General Municipal Election
City Council Special Meeting Agenda December 9, 2024
Precinct Registered
Voters Voters Cast % Turnout
County
Electionwide
101
Polling 2,332 166 7.12%
Vote by Mail 2,332 1,545 66.25%
Total 2,332 1,711 73.37%
102
Polling 1,955 123 6.29%
Vote by Mail 1,955 1,430 73.15%
Total 1,955 1,553 79.44%
103
Polling 1,854 107 5.77%
Vote by Mail 1,854 1,422 76.70%
Total 1,854 1,529 82.47%
104
Polling 897 91 10.14%
Vote by Mail 897 609 67.89%
Total 897 700 78.04%
105
Polling 2,447 170 6.95%
Vote by Mail 2,447 1,847 75.48%
Total 2,447 2,017 82.43%
106
Polling 2,167 140 6.46%
Vote by Mail 2,167 1,644 75.87%
Total 2,167 1,784 82.33%
SOVC for: Measure I-24 City of El Paso de Robles Transactions and Use Tax (50% +1), City of El Paso de Robles, All Counting Groups
NOVEMBER 5, 2024, GENERAL ELECTION
COUNTY OF SAN LUIS OBISPO
OFFICIAL ELECTION RESULTS - MEASURE I-24
Page: 1 of 4
Exhibit
12/4/2024 3:17:04 PM
A
City Council Special Meeting Agenda December 9, 2024
Precinct Registered
Voters Voters Cast % Turnout
107
Polling 844 64 7.58%
Vote by Mail 844 602 71.33%
Total 844 666 78.91%
108
Polling 1,965 139 7.07%
Vote by Mail 1,965 1,422 72.37%
Total 1,965 1,561 79.44%
109
Polling 2,452 177 7.22%
Vote by Mail 2,452 1,809 73.78%
Total 2,452 1,986 81.00%
110
Polling 1,805 117 6.48%
Vote by Mail 1,805 1,225 67.87%
Total 1,805 1,342 74.35%
MB12
Polling10 0.00%
Vote by Mail11 100.00%
Total11 100.00%
MB39
Polling00 N/A
Vote by Mail00 N/A
Total00 N/A
MB40
Polling00 N/A
Vote by Mail00 N/A
Total00 N/A
MB41
Polling 120 0.00%
Vote by Mail 12 10 83.33%
Total 12 10 83.33%
Electionwide - Total 18,731 14,860 79.33%
County - Total 18,731 14,860 79.33%
Polling 18,731 1,294 6.91%
Vote by Mail 18,731 13,566 72.43%
Page: 2 of 4
Exhibit
12/4/2024 3:17:04 PM
A
City Council Special Meeting Agenda December 9, 2024
Measure I-24 City of El Paso de Robles Transactions and Use Tax (50% +1) (Vote for 1) **** - Insufficient Turnout to Protect Voter Privacy
Precinct
Times CastRegistered VotersUndervotesOvervotes
County
Electionwide
101
Polling 166 2,332 24 0
Vote by Mail 1,545 2,332 90 0
Total 1,711 2,332 114 0
102
Polling 123 1,955 8 0
Vote by Mail 1,430 1,955 95 0
Total 1,553 1,955 103 0
103
Polling 107 1,854 12 0
Vote by Mail 1,422 1,854 97 0
Total 1,529 1,854 109 0
104
Polling 91 897 12 0
Vote by Mail 609 897 43 0
Total 700 897 55 0
105
Polling 170 2,447 26 0
Vote by Mail 1,847 2,447 108 0
Total 2,017 2,447 134 0
106
Polling 140 2,167 16 0
Vote by Mail 1,644 2,167 74 0
Total 1,784 2,167 90 0
107
Polling 64 844 9 0
Vote by Mail 602 844 42 0
Total 666 844 51 0
Precinct
YESNOTotal Votes
County
Electionwide
101
Polling 80 62 142
Vote by Mail 857 598 1,455
Total 937 660 1,597
102
Polling 55 60 115
Vote by Mail 766 569 1,335
Total 821 629 1,450
103
Polling 33 62 95
Vote by Mail 676 649 1,325
Total 709 711 1,420
104
Polling 42 37 79
Vote by Mail 308 258 566
Total 350 295 645
105
Polling 64 80 144
Vote by Mail 1,006 733 1,739
Total 1,070 813 1,883
106
Polling 53 71 124
Vote by Mail 854 716 1,570
Total 907 787 1,694
107
Polling 29 26 55
Vote by Mail 317 243 560
Total 346 269 615
Page: 3 of 4
Exhibit
12/4/2024 3:17:04 PM
A
City Council Special Meeting Agenda December 9, 2024
Precinct
Times CastRegistered VotersUndervotesOvervotes
108
Polling 139 1,965 20 0
Vote by Mail 1,422 1,965 109 1
Total 1,561 1,965 129 1
109
Polling 177 2,452 19 0
Vote by Mail 1,809 2,452 158 0
Total 1,986 2,452 177 0
110
Polling 117 1,805 14 0
Vote by Mail 1,225 1,805 96 0
Total 1,342 1,805 110 0
MB12
Polling 0 1 0 0
Vote by Mail 1 1 **** ****
Total 1 1 **** ****
MB39
Polling 0 0 0 0
Vote by Mail 0 0 0 0
Total 0 0 0 0
MB40
Polling 0 0 0 0
Vote by Mail 0 0 0 0
Total 0 0 0 0
MB41
Polling 0 12 0 0
Vote by Mail 10 12 **** ****
Total 10 12 **** ****
Electionwide - Total 14,860 18,731 1,074 1
County - Total 14,860 18,731 1,074 1
Precinct
YESNOTotal Votes
108
Polling 48 71 119
Vote by Mail 673 639 1,312
Total 721 710 1,431
109
Polling 79 79 158
Vote by Mail 914 737 1,651
Total 993 816 1,809
110
Polling 46 57 103
Vote by Mail 600 529 1,129
Total 646 586 1,232
MB12
Polling 0 0 0
Vote by Mail **** **** **** **** ****
Total **** **** **** **** ****
MB39
Polling 0 0 0
Vote by Mail 0 0 0
Total 0 0 0
MB40
Polling 0 0 0
Vote by Mail 0 0 0
Total 0 0 0
MB41
Polling 0 0 0
Vote by Mail **** **** **** **** ****
Total **** **** **** **** ****
Electionwide - Total 7,502 6,283 13,785
County - Total 7,502 6,283 13,785
Page: 4 of 4
Exhibit A
12/4/2024 3:17:04 PM
City Council Special Meeting Agenda December 9, 2024
Exhibit B
City Council Special Meeting Agenda December 9, 2024
Exhibit B
City Council Special Meeting Agenda December 9, 2024
Exhibit C
ORDINANCE NO. 1154
AN ORDINANCE OF THE PEOPLE OF THE CITY OF EL PASO DE ROBLES, CALIFORNIA, AMENDING CHAPTER 3.10 OF TITLE 3 OF THE EL PASO DE ROBLES MUNICIPAL CODE TO EXTEND THE TERM OF A GENERAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF ONE-HALF CENT (1/2¢); TO BE
ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION WHEREAS, pursuant to California Revenue and Taxation Code section 7285.9 the City of El Paso de Robles (“City”) is authorized to levy a Transactions and Use Tax for general purposes, subject to majority voter approval; and
WHEREAS, the People of the City desire to amend Chapter 3.10 of Title 3 of the El Paso de Robles Municipal Code to extend the term of a general Transactions and Use Tax (“sales tax”) until ended by voters, on the sale and/or use of all tangible personal property sold at retail in the City, at a rate of onehalf (1/2%).
NOW, THEREFORE, THE PEOPLE OF THE CITY OF EL PASO DE ROBLES DO HEREBY ORDAIN AS FOLLOWS:
Section 1. Title and Text. This Ordinance shall be known as the “General Transactions and Use Tax”, the full text of which is set forth in Attachment “1”, attached hereto and incorporated herein by reference.
Section 2. Approval by the City Council. Pursuant to California Government Code section 53724 and Revenue and Taxation Code section 7285.9, this Ordinance was duly approved for placement on the ballot by a minimum two-thirds (2/3) supermajority of all members of the City Council on May 28, 2024.
Section 3. Approval by the Voters. Pursuant to California Elections Code section 9217, this Ordinance shall be deemed adopted and take effect only if approved by a majority of the eligible voters of the City of El Paso de Robles voting at the General Municipal Election of November 5, 2024. It shall be deemed adopted when the City Council has certified the results of that election by resolution and shall take effect ten (10) days thereafter.
Section 4. Operative Date. “Operative Date” for the Transactions and Use Tax means the first day of the first calendar quarter commencing more than 110 days after the date this Ordinance is adopted, as set forth in Section 3 above.
Section 5. 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.
Passed and adopted by the voters of the City of El Paso de Robles at the General Consolidated Election held on the 5
th day of November, 2024 and certified by the City Council of the City of El Paso de Robles on December 9, 2024 by the following vote:
AYES:
NOES:
ABSTAIN:
City Council Special Meeting Agenda December 9, 2024
Exhibit C
ABSENT:
__________________________________
John R. Hamon, Jr., Mayor
ATTEST:
_________________________________
Melissa Boyer, City Clerk
City Council Special Meeting Agenda December 9, 2024
Exhibit C
ATTACHMENT 1
Chapter 3.10 – GENERAL TRANSACTIONS AND USE TAX
Sections:
3.10.010 – Short Title.
3.10.020 - Purpose.
3.10.030 - Contract With State.
3.10.040 - Transactions Tax Rate.
3.10.050 - Place of Sale.
3.10.060 - Use Tax Rate.
3.10.070 - Adoption of Provisions of State Law.
3.10.080 - Limitations on Adoption of State Law and Collection of Use Taxes.
3.10.090 - Permit Not Required.
3.10.100 - Exemptions and Exclusions.
3.10.110 - Amendments.
3.10.120 - Enjoining Collection Forbidden.
3.10.130 - Duration of Tax
Sections:
3.10.010 – Short Title.
This chapter shall be known as the “General Transactions and Use Tax” and shall be applicable in the incorporated territory of the City of El Paso de Robles ("city"). This chapter shall complement, and not replace or supersede, the city's existing sales and use tax, as such tax is described in Chapter 3.08 of Article 3 of the El Paso be Robles Municipal Code.
3.10.020 – 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 transaction 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 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 City Council Special Meeting Agenda December 9, 2024
Exhibit C
Department of Tax and Fee Administration 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.
3.10.030 - Contract With State.
Prior to 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 tax 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.
3.10.040 - 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-half percent (1/2%) 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.
3.10.050 - 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.
3.263060 - 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-half percent (1/2%) 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.
3.10.070 - 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 City Council Special Meeting Agenda December 9, 2024
Exhibit C
(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.
3.10.080 - 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 therefore. 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, California Victim Compensation Board, California Department of Tax and Fee Administration, 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 California Department of Tax and Fee Administration, 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 reference to 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 of the Revenue and Taxation Code and in the definition of that phrase in Section 6203.
1. “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.
3.10.090 - 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.
City Council Special Meeting Agenda December 9, 2024
Exhibit C
3.10.100 - 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 stateadministered 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 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 subsection, 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 stateadministered transactions and use tax ordinance.
City Council Special Meeting Agenda December 9, 2024
Exhibit C
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 subsection, 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.
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.
3.10.110 - 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.
City Council Special Meeting Agenda December 9, 2024
Exhibit C
3.10.120 - 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.
3.10.130 – Duration of Tax.
The tax imposed by this chapter shall continue until this ordinance is repealed by El Paso de Robles voters in a subsequent election.
City Council Special Meeting Agenda December 9, 2024
Council Agenda Report
From: Ryan Cornell, Director of Administrative Services Subject: Measure I-24 Transaction and Use Tax – Approval of California Department of Tax and Fee Preparatory and Administration Agreements
CEQA Determination: The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Date: December 9, 2024
Facts
1. On June 4, 2024, City Council approved, placing a ½-cent transactions and use tax extension measure (Measure I-24) on the November general election ballot for voter consideration. Upon certification of the election results, the ordinance/measure amending Chapter 3.10 of Title 3 of the City of El Paso de Robles Municipal Code will extend the term of the current ½-cent general transactions and use tax until ended by voters. As with the City’s existing transaction and use taxes, this extended tax will be administered by the California Department of Tax and Fee Administration.
2. On December 4, 2024, the City received the certified election results from the County of San Luis Obispo which reported that 54.42% of the voters of Paso Robles approved the passage of Measure I24. A simple majority of voters is required to pass the measure.
3. The California Department of Tax and Fee Administration (CDTFA) administers and collects the transactions and use taxes for all applicable jurisdictions within the State of California, including the City of Paso Robles.
4. To begin collection of the extended Measure I-24 tax, CDTFA requires that the City to enter into a “Preparatory Agreement” and an “Administrative Agreement” (see Exhibit A and B of Attachment 1) prior to implementation.
5. The ½-cent transactions and use tax extends the current ½-cent transactions and use tax (Measure E12) which sunsets as of March 31, 2025. Collection of Measure I-24 will start on April 1, 2025, allowing the City to recognize three-months of sales tax income (about $1.6 million) in Fiscal Year 2024-25.
Unlike Measure E-12, Measure I-24 does not have a sunset and will continue to be collected until ended by voters.
Options
1. Authorize the Director of Administrative Services to execute agreements with the California Department of Tax and Fee Administration for implementation of a local transactions and use tax and for the examination of sale or transactions and use tax records; or
2. Provide alternative direction to staff.
Analysis and Conclusions
The California Department of Tax and Fee Administration (CDTFA) administers and collects the transactions and use taxes for the City of Paso Robles, including the current supplemental sales tax City Council Special Meeting Agenda December 9, 2024
measures, J-20 and E-12. Despite the current agreements between the City and CDTFA, CDTFA requires the City Council to approve new agreements (attached) in order to begin the preparation and eventual collection and distribution of the newly extended ½-cent transactions and use tax.
Measure I-24 extends the current ½-cent transaction and use tax (Measure E-12) which sunsets on March 31, 2025. Measure I-24 identifies priorities for spending this sales tax revenue on improving the City’s long-term finances, maintaining important services such as fixing damaged streets/roads/infrastructure, repairing potholes, synchronizing traffic signals, maintaining traffic/pedestrian safety, and improving emergency evacuation routes. The measure emphasizes the responsibilities of a citizens’ advisory committee to oversee the expenditures of all generated funds to ensure they are spent exclusively on meeting the community’s highest-priority needs.
Fiscal Impact
In order to start collection of the tax by April 1, 2025, the measure must be adopted by December 12, 2024 pursuant to state statue. Under the Elections Code, adopted means when the City Council certifies the election results. If the City Council waits until after December 12th to certify the election results for the measure, the tax will not become effective until July 1, 2025. If the Measure election is certified by December 12th and related documents provided to the CDTFA by December 27, 2024, collection of the extended ½-cent sales tax will begin on April 1, 2025 and will generate approximately $6.5 million in revenues annually, until ended by voters.
CEQA
The City finds that this action is not a project under the California Environmental Quality Act pursuant to State Guidelines Section State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378.
Recommendation (1 through 4)
It is recommended that City Council take the following actions:
1. Approve Resolution 24-XXX (A), authorizing the Director of Administrative Services to execute agreements with the California Department of Tax and Fee Administration for implementation of a local transaction and use tax.
2. Approve Resolution 24-XXX, (B) authorizing the examination of sales or transactions and use tax records.
3. Approve Resolution 24-XXX (C) expressing the intent to prioritize spending of future Measure I-24 sales tax revenues.
4. Authorize the Administrative Services Director to take all further actions necessary to implement Measure I-24's ½-cent transaction and use tax (sales tax) approved the City’s voters.
Attachments
1. Resolution 24-XXX (A) – CDTFA Agreement
a. Exhibit A - Preparatory Agreement
b. Exhibit B - Administrative Agreement
2. Resolution 24-XXX (B) – Examination of Sales and Use Tax Records
3. Resolution 24-XXX (C) – Measure I-24 Priorities
City Council Special Meeting Agenda December 9, 2024
Attachment 1
RESOLUTION 24-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES
AUTHORIZING THE DIRECTOR OF ADMINISTRATIVE SERVICES TO EXECUTE AGREEMENTS WITH THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL
TRANSACTIONS AND USE TAX
WHEREAS, on December 9, 2024, the City Council certified the results of the election in which the citizens of the City of El Paso de Robles, CA adopted Ordinance No. 1154 amending the City Municipal Code and providing for a local transaction and use tax; and
WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administrative Agreement” prior to implementation of said taxes; and WHEREAS, the Department requires that the City Council authorize the agreements.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of El Paso de Robles that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are hereby approved and the Director of Administrative Services is hereby authorized to execute each agreement.
APPROVED by the City Council of the City of El Paso de Robles this 9 th day of December 2024 by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
Exhibit A – Preparatory Agreement
Exhibit B – Administrative Agreement
City Council Special Meeting Agenda December 9, 2024
Exhibit A
(Rev. 07/24) 1
AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of El Paso de Robles, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:
1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.
These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
City Council Special Meeting Agenda December 9, 2024
(Rev. 07/24) 2
6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)
7. Communications and notices may be sent by first class United States mail or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail. Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
City of Paso Robles
Attention: Department of Administrative Services
1000 Spring Street
Paso Robles, CA 93446
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.
CITY OF El Paso de Robles CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Ryan Cornell
(Typed Name) Date: _______________________________
Director of Administrative Sercvices
(Title)
Date: _______________________________
City Council Special Meeting Agenda December 9, 2024
Exhibit B
(Rev. 7/24) 1
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of El Paso de Robles has adopted, and the voters of the City of El Paso de Robles (hereafter called “City” or “District”) have approved by the required majority vote, the City of El Paso de Robles Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part
1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 1154 N.S., as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.
City Council Special Meeting Agenda December 9, 2024
Exhibit B
(Rev. 7/24) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.
C. Transmittal of money.
1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.
D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but City Council Special Meeting Agenda December 9, 2024
Exhibit B
(Rev. 7/24) 3
shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.
G. Records of the Department.
When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.
H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
City Council Special Meeting Agenda December 9, 2024
Exhibit B
(Rev. 7/24) 4
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:
1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.
2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
City Council Special Meeting Agenda December 9, 2024
Exhibit B
(Rev. 7/24) 5
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate or through email at [email protected]. If and when communications and notices may include confidential information, communications and notices must be sent through encrypted email at [email protected] or by mail.
City Council Special Meeting Agenda December 9, 2024
Exhibit B
(Rev. 7/24) 6
Communications and notices to be sent to the Department shall be addressed to:
California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:
City of Paso Robles
Attention: Department of Administrative Services
1000 Spring Street
Paso Robles, CA 93446
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on ______________. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.
City Council Special Meeting Agenda December 9, 2024
Exhibit B
(Rev. 7/24) 7
ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-appealable.
B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.
2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.
City Council Special Meeting Agenda December 9, 2024
Exhibit B
(Rev. 7/24) 8
4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties.
Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.
CITY OF El Paso de Robles CALIFORNIA STATE DEPARTMENT OF
TAX AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Ryan Cornell
(Typed Name) Date: _______________________________
City Council Special Meeting Agenda December 9, 2024
Exhibit B
(Rev. 7/24) 9
Director of Administrative Services
(Title)
(Date)
City Council Special Meeting Agenda December 9, 2024
Attachment 2
RESOLUTION 24-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES
AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS WHEREAS, pursuant to Ordinance Nos. 981, 1100, and 1154 of the City of El Paso de Robles hereinafter called “City” and Section 7270 of the Revenue and Taxation Code, the City entered into a contract with the California Department of Tax and Fee Administration (CDTFA) to perform all functions incident to the administration and operation of the Transaction and Use Tax Ordinance; and WHEREAS, the City deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the CDTFA pertaining to transactions and use taxes collected by the CDTFA for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of CDTFA records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the CDTFA; and NOW THEREFORE, THE CITY COUNCIL OF THE EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. That the Director of Administrative Services or other officer or employee of the City designated in writing by the Director of Administrative Services to the California Department of Tax and Fee Administration (CDTFA) is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the CDTFA pertaining to transactions and use taxes collected for the City by CDTFA pursuant to the contract between the City and the CDTFA. The information obtained by examination of CDTFA records shall be used only for purposes related to the following governmental functions of the City:
a. collection of the City’s transactions and use taxes by the CDTFA pursuant to that contract; b. budgetary purposes;
c. economic development purposes.
Section 2. That Hinderliter de Llamas and Associates (HdL) is hereby designated to examine the sales or transactions and use tax records of the CDTFA pertaining to transactions and use taxes collected for the City by the CDTFA. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and HdL:
a. has an existing contract with the City to examine those sales or transactions and use tax records;
b. is required by that contract to disclose information contained in, or derived from those sales or transactions and use tax records only to the officer or employee authorized under Section 1 (or Section 2) of this resolution to examine the information; c. is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d. is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.
NOW BE IT FURTHER RESOLVED that the information obtained by examination of CDTFA records shall be used only for purposes related to the collection of City transactions and use taxes by the CDTFA pursuant to the contracts between the City and the CDTFA.
City Council Special Meeting Agenda December 9, 2024
Attachment 2
Section 3. That this resolution supersedes all prior resolutions of the City Council of the City of El Paso de Robles adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.
APPROVED by the City Council of the City of El Paso de Robles this 9 th day of December 2024 by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
City Council Special Meeting Agenda December 9, 2024
Attachment 3
RESOLUTION 24-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES
EXPRESSING ITS INTENT TO PRIORITIZE SPENDING OF GENERAL TRANSACTION AND USE TAX (SALES
TAX) REVENUES
WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place measures on the ballot to be considered at a General Municipal Election; and WHEREAS, pursuant to the law of the State of California, the City Council has called and ordered to be held in the City of El Paso de Robles, California, on Tuesday, November 5, 2024, a General Municipal Election; and
WHEREAS, Revenue and Taxation Code section 7285.9 authorizes the City of El Paso de Robles (“City”), subject to approval by a majority vote of the qualified voters of the City voting in an election on the issue, to levy a transactions and use tax (sales tax) pursuant to the Transactions and Use Tax Law at a rate of 0.125% or any multiple thereof for general purposes and projects; and WHEREAS, the City Council placed a general sales tax measure on the November 5, 2024 ballot, Measure I-24, which was passed by the voters; and
WHEREAS, a general tax enacted solely to raise revenue for the general governmental purposes of the City and all of the proceeds from the tax shall be placed in the City’s general fund and used for the usual current expenses of the City; and
WHEREAS, the general fund pays for important City services such as police, fire and paramedic services, street operations and maintenance, community center and recreation services, and general municipal services to the public; and
WHEREAS, the City Council desires to adopt this resolution expressing its intent to spend the sales tax revenue from Measure I-24 for various purposes, with proposed priorities as identified herein.
NOW, THEREFORE the City Council of the City of El Paso de Robles does hereby resolve as follows:
Section 1. The City Council hereby finds and determines that the foregoing recitals are true and correct and are hereby incorporated by reference.
Section 2. Priorities for Spending Future Measure I-24 Supplemental Sales Tax Revenue. The City Council hereby expresses its intent to prioritize spending of future Measure I-24 supplemental sales tax revenue for the following purposes:
Improving the City’s long-term finances, maintaining important services such as fixing damaged streets/roads/infrastructure, repairing potholes, synchronizing traffic signals, maintaining traffic/pedestrian safety, and improving emergency evacuation routes.
Section 3. Adjustment of Priorities over Time. This Resolution expresses the intent of the current City Council to spend future Measure I-24 supplemental sales tax revenues to address specific priorities. These priorities remain in effect, for this and future Councils, unless and until replaced by a City Council Special Meeting Agenda December 9, 2024
Attachment 3
future Resolution stating adjusted priorities and the reasons for such adjustments.
APPROVED by the City Council of the City of El Paso de Robles this 9th day of December 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk
City Council Special Meeting Agenda December 9, 2024