Attachment A
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FULL TEXT OF MEASURE__ 2026
AN ORDINANCE OF THE CITY OF SANTA MARIA, CALIFORNIA, ADDING CHAPTER 3-8B IMPOSING A TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, recent polling shows that a large majority of residents expressed high satisfaction with the City’s delivery services; and
WHEREAS, recent polling and community input also show that residents are concerned with quality of life issues facing Santa Maria; and
WHEREAS, the City remains committed in delivering high -quality services to the community’s residents and in addressing the expressed concerns of the community; and
WHEREAS, locally-controlled funding is more necessary now than ever to continue to support the City’s efforts to provide the full-range of services, including but not limited to, parks and recreation, including the aquatic center, library, youth programs, and improving the City’s roads and streets; and
WHEREAS, this measure will give Santa Maria loc al control over local funds for local needs. No funds can be taken by Sacramento; and
WHEREAS, the City must ensure delivery of high-quality services to the community and to address the concerns identified by community residents; and
WHEREAS, a secure source of local funding is needed to maintain recreational facilities, including the aquatic center, and programs focused on at-risk youth, anti -gang outreach coordination, and after-school programs that keep the City’s kids safe, off the streets, and out of trouble; and
WHEREAS, resources are needed to address public improvements, including maintenance of the City’s streets and roadways; and
WHEREAS, expanding local funding will qualify Santa Maria to receive its fair share of millions of dollars in matching grants, so taxpayers do not have to pay the entire cost of critical programs.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SANTA MARIA, AS FOLLOWS:
SECTION 1. Chapter 3-8B of Title 3 of the Santa Maria Municipal Code is hereby added to read as follows:
CHAPTER 3-8B CITY SERVICES TRANSACTIONS AND USE TAX
Section 3-8B.01. Title.
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This Chapter shall be known as the “City Services Transactions and Use Tax Code.” The City of Santa Maria hereinafter shall be called “City.” This Chapter shall be applicable in the incorporated territory of the City.
Section 3-8B.02. Operative Date.
“Operative Date” means the first day of the first calendar quarter commencing mor e than 110 days after adoption of this Chapter, the date of such adoption being ____ ____, 2026.
Section 3-8B.03. Purpose.
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 which shall be operative if a 50% and 1 vote of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
(b) To adopt a retail transactions and use tax 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 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 dev iation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes. (d) To adopt a retail transactions and use tax 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 t ime, minimize the burden of recordkeeping upon persons subject to taxation under the provisions of this ordinance.
Section 3-8B.04. 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; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative d ate, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
Section 3-8B.05. Transactions Tax Rate.
For the privilege of selling tangible pe rsonal 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 an d after the operative date of this Chapter. This tax is in addition to the tax imposed by Chapter 3-8A of this code.
Section 3-8B.06. 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 4903-5498-5646.2 014517.001 3
from such sales shall include delivery charges, wh en 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.
Section 3-8B.07. 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 Chapter for storage, use or other consumption in said territory at the ra te of 0.5% of the sales price of the property. This tax is in addition to the tax imposed by Chapter 3 -8A of this code. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
Section 3-8B.08. 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 pr ovisions 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 Chapter as though fully set forth herein.
Section 3-8B.09. 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, 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 Chapter.
(3) In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
(A) Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; (B) Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
(4) In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
(b) The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.
Section 3-8B.10. 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 Chapter.
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Section 3-8B.11. Exemptions and Exclusions.
(a) There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state - administered transactions or use tax.
(b) There are exempted from the computation of the amount of transactions tax the gross receipts from:
(1) Sales of tangible personal propert y, 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 o r his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this Section, delivery to a point outside the City shall be satisfied:
(A) With respect to vehicles (other than commercial vehicles) sub ject 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 Chapter. (4) A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the leaser is obligated to lease the property for an amount fixed by the lease prior to the operative date of this Chapter.
(5) For the purposes of subparagraphs (3) and (4) of this Section, the sale or lease of tangible personal property shall be deemed not to be obli gated 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 us e tax imposed by this Chapter, the storage, use or other consumption in this City of tangible personal property:
(1) The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax.
(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 Chapter. (4) If the possession of, or the exercise of any right or power over, the tangible pe rsonal property arises under a lease which is a continuing purchase of such property for any period of time for 4903-5498-5646.2 014517.001 5
which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this Chapter.
(5) For the purposes of subparagraphs (3) and (4) of this Section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(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 Chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a tr ansactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
Section 3-8B.12. Amendments.
All amendment s subsequent to the effective date of this Chapter 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 am endments to Part 1.6 and Part
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 Chapter.
Section 3-8B.13. Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
Section 3-8B.14. Annual Independent Audits.
The City shall ensure that annual indepe ndent audits are conducted to account for the tax revenues received and expenditures made in relation to the 0.5% transaction and use tax. Such audits will be provided to the City Council for their review.
Section 3-8B.15. Termination Date.
The authority to levy the tax imposed by this Chapter shall expire when ended by the voters of the City.
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SECTION 2. USE OF TAX PROCEEDS. The proceeds of the tax approved by this Ordinance may be used for unrestricted general revenue purposes.
SECTION 3. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstances is determined by a competent court to be invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
SECTION 4. ELECTION REQUIRED. This Ordinance shall not become operative unless and until a 50% and 1 vote of the electors voting on this measure vote to approve the imposition of the tax at the General Election to be held on November 3, 2026.
SECTION 5. EFFECTIVE DATE. This Ordinance relates to the levying and collecting of the City transaction and use taxes and shall take effect immediately.
SECTION 6. COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), and the CEQA guidelines, and the City’s environmental procedures and determined not to be a "Project" under CEQA. Section 15378(b)(4) of the CEQA Guidelin es states a Project does not include the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The transactions and use tax imposed by the adoption of this Ordinance is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. Accordingly, the Ordinance is not a Project under CEQA. Furthermore, even if the Ordinance was a Project, it would be exempt pursuant to § 15061(b)(3) (common sense) of the CEQA Guidelines, which provides that a Project is exempt if it can be seen with certainty that there is no possibility that the activity in question may have a significant physical impact on the environment . The City Council hereby finds with certainty that there is no possibility the passage of this Ordinance will have a significant physical impact on the environment because the Ordinance is not a commitment to any particular action. If revenue from the tax were used for a purpose that would have such a potential for physical impact, the City would undertake any required CEQA review for that particular project at the earliest feasible date.
SECTION 7. CLERICAL CORRECTION. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy C ity Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
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INTRODUCED at a regular meeting of the City Council held on the 7th day of July 2026, and PASSED AND ADOPTED at a regular meeting held on the ____ day of ____ 2026, by the following roll call vote, subject to voter approval at the November 3, 2026, General Municipal Election:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager