Date: April 28, 2026
Honorable Mayor and Council Members:
Author and Title: Andy Morris, Town Attorney and Alfred Knotts, Assistant Public Works Director Title: Adoption of Ordinance 2026-01 for One Half Percent (1/2%) Special Sales Tax Renewal Measure
Jen Callaway, Town Manager
Recommended Action: That Council adopt Ordinance 2026-01 of the Town of Truckee Imposing a Transactions and Use Tax to be Administered by the California Department of Tax and Fee Administration (CDTFA).
Discussion: On February 24, 2026 Council introduced Ordinance 2026-01 as part of the regularly scheduled meeting of the Town Council. This requested action would adopt Ordinance 2026-01.
Purpose of “Truckee Roads 1/2% Special Sales Tax Measure Renewal” In 1998, Truckee voters passed the Measure A ½ % sales tax to be used for the repair, replacement, construction or reconstruction of a select subset of roads accepted by the Town as part of it’s 1993 incorporation. In 2008 Truckee voters approved renewing the tax (Measure V), which extended the ½ % sales tax by 20 years as well as expanded the eligible use of funds to be used on all Town-maintained roads for “paving, repairing and improving our Town’s roads to enhance safety for drivers, bicyclists and pedestrians including regular upgrades to drainage to protect water quality.” Measure V is scheduled to expire in 2028. Although this tax authorization is not scheduled to expire for approximately two more years, renewing the measure in the near future provides the Town with more certainty for future road maintenance activity funding.
If the measure is approved by the voters, the Town will need to contract with the California Department of Tax and Fee Administration (CDTFA) to administer and collect the tax. CDTFA administers transactions and use taxes, and the substance of the Measure, along with the procedure used to approve it, needs to meet CDTFA requirements. Subsequent to the Council’s adoption of the resolution placing the measure on the June 2026 ballot (which occurred on February 24, 2026), CDTFA requires the Council to adopt an ordinance implementing the tax measure. Adoption of the ordinance by the Council is a procedural requirement, but the ordinance will not take effect unless approved by the voters.
Note that the Nevada County Elections Office has now assigned the ballot measure identifier of “Measure K” for the June 2, 2026 Primary Ballot.
Priority:
X Enhanced Communication Climate and Greenhouse Gas Reduction Housing X Infrastructure Investment Emergency and Wildfire Preparedness X Core Service
Fiscal Impact: Renewal of Truckee Roads Tax at a ½% tax rate would result in approximately $4 million annually being available to continue to fund road maintenance, repair, reconstruction and other eligible
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uses approved by voters. If the ½% sales tax is not continued by 2028, it will result in the loss of this $4 million annual revenue source. This revenue has been a vital part of the Town’s budget as depicted in the list of projects that have used Measure V funding (Attachment 2). Without this ongoing revenue, the Town’s ability to fund road maintenance Capital Improvement Programs and/or other CIPs outside the Town’s core services would be greatly impacted.
Public Communication: In addition to this Staff Report and associated agenda posting, the following recent public communications have occurred:
September 23, 2025 – Town Council approved contract with Team CivX to conducted public opinion surveys on the renewal of Truckee Roads Tax.
December 2025 – A random survey of 455 register Truckee voters was conducted. January 13, 2026 – Public Opinion Survey Results presented to Town Council as well as public and direction provided to Staff to proceed with placement of ballot measure renewal on the June 2026 Primary Ballot
February 24, 2026 – Adoption of Resolution 2026-04 Calling for Placement of Ballot Measure on June 2026 Primary Election Ballot and Introduction of Ordinance 2026-01 March 2026 – Informational flier distributed to registered voters within Town limits Attachments:
Attachment 1 – Ordinance 2026-01- Imposing a Transactions and Use Tax To Be Administered by the California Department of Tax and Fee Administration
Attachment 2 - List of Past Projects that Have Used Measure V Funding
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TOWN OF TRUCKEE
California
ORDINANCE 2026-01
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TRUCKEE IMPOSING A
TRANSACTIONS AND USE TAX FOR TO BE ADMINISTERED BY THE CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION
The Town Council of the Town of Truckee Does Ordain as Follows:
SECTION 1. TITLE.
This ordinance shall be known as the 2026 Truckee Transactions and Use Tax Ordinance. The Town of Truckee is referred to in this ordinance as “Town” or “City”. This ordinance shall be applicable in the incorporated territory of the City.
SECTION 2. OPERATIVE DATE.
“Operative Date” means January 1, 2027, which is the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance.
SECTION 3. 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 7286.60 of Part 1.7 of Division 2 which authorizes the Town to adopt this tax ordinance which shall be operative if a two-thirds majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor 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 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
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upon persons subject to taxation under the provisions of this ordinance.
SECTION 4. 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.
SECTION 5. 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 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.
SECTION 6. 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.
SECTION 7. 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 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.
SECTION 8. ADOPTION OF PROVISIONS OF STATE LAW.
Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.
SECTION 9. 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:
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A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State 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 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.
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.
SECTION 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 ordinance.
SECTION 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.
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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 or her 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 section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as
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common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the Operative Date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the Operative Date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
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.
SECTION 12. 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
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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.
SECTION 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 14. SEVERABILITY.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
SECTION 15. EFFECTIVE DATE.
This Ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately.
SECTION 16. TERM.
The authority to levy the tax imposed by this ordinance shall be in effect until ended by voters.
SECTION 17. USE OF TAX PROCEEDS AND EXPENDITURE PLAN.
A. All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into a special fund designated for use by the City only for the purposes set forth in the Expenditure Plan for the administration and expenditure of tax proceeds, attached to this ordinance as Exhibit 1. The Expenditure Plan may be amended from time to time by a majority vote of the City Council, so long as the funds are used for local streets and road maintenance, repair, rehabilitation, and reconstruction.
B. The City is hereby authorized to incur indebtedness in the form of bonds, notes, contractual obligations or other evidences of indebtedness authorized by law to finance or refinance costs described in Subdivision A, and to pay any and all costs of issuing or incurring such indebtedness, to fund reserve funds, capitalized interest, costs of capital enhancement, costs of interest rate hedging arrangements or any other financing costs associated with such indebtedness. Such indebtedness shall be solely payable from, and may be secured by a pledge and lien on, the proceeds of the tax levied and imposed hereunder.
SECTION 18. AUDIT AND REVIEW.
The proceeds of the tax imposed by this Ordinance, as well as the expenditure thereof, shall be audited from time to time. The results of such audits shall be presented to the Town Council at a meeting of the Town Council that is open to the public. The Town is hereby authorized to incur indebtedness in the form of bonds, notes, contractual obligations or other evidences of indebtedness authorized by law to finance or refinance costs described herein, and to pay any
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and all costs of issuing or incurring such indebtedness, to fund reserve funds, capitalized interest, costs of capital enhancement, costs of interest rate hedging arrangements or any other financing costs associated with such indebtedness.
SECTION 19. INCREASE IN APPROPRIATIONS LIMIT
To permit the Town to appropriate the proceeds of the taxes imposed by this Ordinance, the Town’s appropriations limit under Article XIII B of the California Constitution is hereby increased by an amount equal to any increase in revenues generated by those taxes, for each fiscal year commencing with fiscal year 2026–2027 through fiscal year 2030–2031.
SECTION 20. CERTIFICATION; PUBLICATION.
Upon approval by the voters, the Town Clerk shall certify to the passage and adoption of this ordinance and shall cause it to be published according to law and transmitted to the California Department of Tax and Fee Administration.
* * * * *
The foregoing ordinance was introduced at a regular meeting of the Truckee Town Council held on the ___day of _______ 2026, and adopted at a regular meeting of the Truckee Town Council, on the ___ day of _____; 2026; _________ moved for the adoption, the motion was seconded by ___________ and was carried by the following vote:
AYES:
NOES:
ABSENT:
__________________________
Anna Klovstad, Mayor
ATTEST: APPROVED AS TO FORM:
___________________________ __________________________
Kelly Carpenter, Town Clerk Andy Morris, Town Attorney
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EXHIBIT 1
EXPENDITURE PLAN
All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into a special fund designated for use by the Town of Truckee only to maintain, repair, reconstruct, and improve Town roads. Streets and roads maintenance includes pavement sealing and overlays; drainage repair and erosion control; sweeping; vegetation maintenance; trash removal; snow removal and other winter maintenance activity; repairs or replacement of ADA facilities associated with the streets and roads network, bridges, signs, and other appurtenances; and such other treatments as are necessary to provide for ongoing public use of streets and roads as determined by the Truckee Town Council. As funding permits, the funds may also be used to improve existing roadways including widening of shoulders for safety and the inclusion of bicycle and pedestrian facilities within the roadway right of way, and associated safety and drainage improvements and associated appurtenances.
Eligible construction and maintenance expenses include planning; design; right-of-way acquisition; environmental review; permitting, payment to consultants and construction contractors and other third-party street and road maintenance and construction entities; payment for roadway infrastructure planning, design, right of way acquisition and environmental professionals; purchases of equipment, material, and supplies; reimbursement of direct Town staff expenses; expenses associated with land acquisition or easement necessary for road construction; and other ancillary expenses related to the design, environmental clearance, permitting, construction or maintenance of local streets and roads and appurtenances as determined by the Truckee Town Council.
The Town is hereby authorized to incur indebtedness in the form of bonds, notes, contractual obligations or other evidences of indebtedness authorized by law to finance or refinance costs for road maintenance, repair, reconstruction, and improvement and to pay any and all costs of issuing or incurring such indebtedness, to fund reserve funds, capitalized interest, costs of credit enhancement, costs of interest rate hedging arrangements or any other financing costs associated with such indebtedness. Such indebtedness shall be solely payable from, and may be secured by a pledge and lien on, the proceeds of the tax levied and imposed hereunder.
Town staff shall provide recommendations to the Town Council regarding the use of funds.
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CIP#Project
Amount of Measure
V Expended
C0322 Brickelltown Streetscape Improvement Project $473,499.36 C0901 2009 Slurry Seal Project $406,658.64
C0902 Asphalt Curb Replacement Project $7,870.00
C0903 Donner Pass Road & Stockrest Springs Intersection Improvements $220,413.63 C0915 Miscellaneous Measure V Roadway Improvements $33,917.50 C1001 2010 Slurry Seal Project $97,651.50
C1011 Pedestrian Connection - Brickelltown to Gateway $324,542.77 C1013 2011 Glenshire Slurry Seal Project $43,234.56
C1101 2011 Slurry Seal Project $488,649.90
C1103 2012 Recessed Striping and Marking Project $39,448.40 C1104 Trout Creek Restoration - Reach 3 Construction $27,789.10 C1201 2012 Slurry Seal Project $307,174.66
C1202 2012 Paving Project $1,709,552.82
C1204 Comstock Drive Bridge Repair $29,287.80
C1205 Coldstream Road/Donner Creek Crossing Structure Replacement $98,340.25 C1301 2013 Slurry Seal Project $443,625.17
C1303 Glenshire Drive/Highland Avenue Safety Improvement Project $205,030.20 C1306 Glenshire Drive Bike Lane Project - Phase 2 $1,303,255.75 C1307 West River Street Widening & Bike Lane Project $1,465,652.30 C1401 2014 Slurry Seal Project $603,760.25
C1402 2014 Paving and Drainage Project $2,040,385.80
C1403 Bridge Street At-Grade Railroad Pedestrian Crossing $68,961.54 C1406 South Shore Drainage Improvements $27,230.00
C1407 Envision DPR Corridor Improvement - Western Segment Phase 1 $2,365,793.49 C1501 2015 Slurry Seal Project $443,190.61
C1504 Envision DPR Corridor Improvement Plan (Coldstream to McIver RAB)$228,556.53 C1508 Miscellaneous Curb/Gutter Replacement $208,510.49 C1601 2016 Slurry Seal Project $504,873.42
C1603 2016 Recessed Striping & Marking Project $532,445.30 C1604 Brockway Road Corridor/East River Street Improvement Project $1,215,169.82 C1605 Glenshire Drive/Dorchester Drive Pedestrian and Bicycle Improvements $842,901.19 C1606 Donner Pass Road/West Tamarack Road Drainage Improvement Project $10,643.75 C1607 Coldstream Road/Donner Creek Crossing Structure Replacement $123,488.52 C1612 Stockrest Springs/Truckee Way/East Jibboom St Roundabout $203,010.50 C1701 2017 Slurry Seal Project $418,938.12
C1703 West River Street Streetscape Improvement Project $700,039.85 C1713 2017 Flood Damage Repair $316,002.02
C1801 2018 Slurry Seal Project $4,453.69
C1802 2018 Paving & Drainage Project $2,346,489.18
C1815 Envision DPR - Western Segment Utility Undergrounding $576,712.22 C1901 2019 Slurry Seal Project $4,355.85
C1915 Town-wide Guardrail Project $44,647.46
C2001 2020 Slurry Seal Project $1,012.50
C2003 2022 Recessed Striping Project $270,204.80
C2007 2020 Bridge Maintenance Project $754,038.43
C2102 2021 Paving & Drainage Project $2,344,005.25
C2107 Legacy Trail-Brockway Road Multi-Use Trail Connect $797,000.15 C2202 2022 Paving & Drainage Project $7,020.00
C2203 2025 Recessed Striping Project $33,704.47
C2302 2023 Paving & Drainage Project $2,261,240.76
C2402 2024 Paving & Drainage Project $1,448,484.77
C2502 2025 Paving & Drainage Project $140,187.54
C2614 2025 Roadway Vegetation Management Project $135.00 TOTAL $29,613,187.60
Past Projects that Used Measure V (Since FY 2009/2010)
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