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HomeMy WebLinkAbout2007-031 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2007-31 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE AGREEMENTS WITH THE STATE BOARD OF EQUALIZATION FOR IMPLEMENT A TION OF A LOCAL TRANSACTIONS AND USE TAX. WHEREAS, on September 5, 2006, the City Council approved Ordinance No. MC1229 amending the City of San Bernardino Municipal Code and providing for a local transactions and use tax; and WHEREAS, the State Board of Equalization (Board) administers and coHects the transactions and use taxes for aH applicable jurisdictions within the state; and WHEREAS, the Board wiH be responsible to administer and coHect the transactions and use tax for the City; and WHEREAS, the Board requires that the City enter into a "Preparatory Agreement" and an "Administration Agreement" prior to implementation of said taxes, and WHEREAS, the Board requires that the City Council authorize the agreements; NOW, THEREFORE BE IT RESOLVED by the City Council of the City of San Bernardino that the "Preparatory Agreement" attached as Exhibit A and the "Administrative Agreement" attached as Exhibit B are hereby approved and the Mayor is hereby authorized to execute each agreement. 1/1/ 1/1/ 1/1/ 1/1/ 1/1/ 1/1/ 1/1/ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE AGREEMENTS WITH THE ST ATE BOARD OF EQUALIZA nON FOR IMPLEMENT A TION OF A LOCAL TRANSACTIONS AND USE TAX. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a joint regular meeting thereof, held on the 22nd day of January ,2007, by the following vote, to wit: COUNCILMEMBERS AYES NAYS ABSTAIN ABSENT ESTRADA X BAXTER X BRINKER ---1L DERRY X KELLEY X JOHNSON X McCAMMACK ~ ~~ /;1.~ Ra el Clark, City Clerk The foregoing resolution is hereby approved this;( .>'1tay of JanH'lTY 2007. ~4 --f3-. Tobin Brinker, Mayor Pro Tern City of San Bernardino Approved as to form: JAMES F. PENMAN City Attorney 2 ~ , Exhibit A 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 San Bernardino, hereinafter called City, and the STATE BOARD OF EQUALIZATION, hereinafter called Board, do agree'as follows: I, The Board 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 Board at the times and in the amounts hereinafter specified all of the Board's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Board'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 Board'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 Board. 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 Board 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 Board shall be billed by the Board periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Board the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. 6. The amount to be paid by City for the Board's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) 2007-31 *" 7. Communications and notices may be sent by first class United States mail. Communications and notices to be sent to the Board shall be addressed to: STATE BOARD OF EQUALIZATION P. O. BOX 942879 SACRAMENTO, CALIFORNIA 94279-0073 ATTENTION: EXECUTIVE DIRECTOR Communications and notices to be sent to City shall be addressed to: CITY OF SAN BERNARDINO 300 NORTH aD" STREET SAN BERNARDINO, CA 92418-0001 ATTENTION: DIRECTOR OF FINANCE 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 Board has received all payments due from City under the terms of this agreement. CITY OF SAN BERNARDINO STATE BOARD OF EQUALIZATION By ~~ (S nature) ~ By ~/~ (EX'ecuti ve Director) Patrick J. Morris, Mayor City of San Bernardino APPROVED FEB 2 3 2007 DEPT OF GENERAL SERViCES I Approved as to form: & ~ 6cs--- JAMES F. PENMAN City Attorney 2 2007-31 Exhibit B AGREEMENT FOR STATE ADMINISTRATION OF CITY TRANSACTIONS AND USE TAXES The City Council of the City of San Bernardino has adopted, and the voters of the City of San Bernardino (hereafter called "City" or "District") have approved by the required majority vote, the City of San Bernardino 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 State Board of Equalization, (hereinafter called the "Board") 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. MC 1229, 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 Board and City agree that the Board shall perform exclusively all functions incident to the administration and operation ofthe City Ordinance. 2007-31 B. Other Applicable Laws. City agrees that all provIsions of law applicable to the administration and operation of the State 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 Board pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled. C. Transmittal of money. I. 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 Board 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 Board 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 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. Rev. 1/05 2 v 2007-31 F. Security. The Board 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 Board 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 Board. G. Records of the Board. When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Board agrees to permit authorized personnel of the City to examine the records of the Board, 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 Board's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Board pursuant to this Agreement. H. Annexation. City agrees that the Board 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 Board. 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 ALLOCA nON OF TAX A. Allocation. In the administration of the Board'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: I. 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 Rev. 1/0; 3 2007-31 of the Board, to all districts with which the Board 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 Board, 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 Board in determining the place of use. ARTICLE IV COMPENSA nON The City agrees to pay to the Board as the Board'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 Board for the City. ARTICLE V MISCELLANEOUS PROVISIONS 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. A notification is complete when deposited in the mail. Rev. 1105 4 2007-31 Communications and notices to be sent to the Board shall be addressed to: State Board of Equalization P.O. Box 942879 Sacramento, California 94279-0073 Attention: Executive Director Communications and notices to be sent to the City shall be addressed to: City of San Bernardino 300 North "D" Street San Bernardino, CA 92418-000 I Attention: Director of Finance 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 April I, 2007. 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 Board 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 Board written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. Rev. 1105 5 2007-31 ARTICLE VI ADMINISTRATION OF TAXES IF THE ORDINANCE IS CHALLENGED AS BEING INY ALID A. Impoundment of funds. I. When a legal action is begun challenging the validity of the ill}position 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 Board 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. Board may retain all payments made by City to Board to prepare to administer the City Ordinance. 2. City will pay to Board and allow Board to retain Board's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement. 3. City will pay to Board or to the State of California the amount of any taxes plus interest and penalties, if any, that Board or the State of California may be required to rebate or refund to taxpayers. Rev. 1105 6 2007-31 4. City will pay to Board its costs for rebating or refunding such taxes, interest, or penalties. Board'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 Board's staff for use in making these rebates or refunds and any other costs incurred by Board which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Board'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 Board. 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 Board 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 Board in connection with such refunds shall be billed by Board 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 Board shall bill City on or before the 25th of each month for all costs incurred by Board for the preceding calendar month. City shall pay to Board the amount of such costs on or before the last day of the succeeding month and shall pay to Board the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Board costs incurred in making those refunds. B ~k -~.~ Y Patnc. Moms, Mayor . an Bernardino By STATE BOARD OF EQUALIZA nON ~/~ (ExeCu"tive Director) CITY OF SAN BERNARDINO APPROVED ~ 1 31.1lJI Approved as to fonn: JAMES F. PENMAN .~ City Attorney 7 LUU I j 1 Adopted: August 21, 2006 Effective: November 8, 2006 (If approved by voters on November 7, 2006) 1 ORDINANCE NO. MC-1229 2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF 3 EQUALIZA TlON PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE 4 TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 5 BE IT RESOLVED THE MAYOR AND COMMON COlJNCIL OF THE CITY OF 6 SAN BERNARDINO DO ORDAIN AS FOLLOWS: 7 SECTION 1. Title. This ordinance shall be known as the City of San Bernardino 8 Transactions, and Use Tax Ordinance. The CityofSan Bernardino hereinafter shall be called "City." 9 This ordinance shall be applicable in the incorporated territory of the City. 10 SECTION 2. Ooerative Date. "Operative Date" means the first day of the first calendar II quarter commencing more than 110 days after November 7, 2006. 12 SECTION 3. Puroose. This ordinance is adopted to achieve the following, among other 13 purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: 14 15 16 17 18 19 20 21 To impose a retail transactions, and use tax in accordance with the provisions of Part A. 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, that authorize the City to adopt this tax ordinance. which shall be operative only 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 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 22 those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. 23 24 25 26 27 28 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 State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the OHCljs IOrdinances\GeneralTransactions.Use Tax.Ord] Revised Snt06 LUU! j1 MC-1229 ] AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 2 3 4 5 6 California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a 7 manner that will be, to the greatest degree possible, consistent with the provisions of 8 Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of 9 collecting the transactions and use taxes, and at the same time, minimize the burden 10 of record keeping upon persons subject to tahation under the provisions of this 11 ordinance. 12 SECTION 4. Contract With State. Priorto the operative date, the City shall contract with 13 the State Board of Equalization to perform all functions incident to the administration and operation 14 of this transactions and use tah ordinance; provided, that if the City shall not have contracted with 15 the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in 16 such a case the operative date shall be the first day of the first calendar quarter following the 17 execution of such a contract. 18 SECTION 5. Transactions Tax Rate. For the privilege of selling tangible personal 19 property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City 20 at the rate of 0.25% of the gross receipts of any retailer from the sale of all tangible personal property 21 sold at retail in said territory on and after the operative date of this ordinance. 22 SECTION 6. Place of Sale. For the purposes of this ordinance, all retail sales are 23 consummated at the place of business of the retailer unless the tangible personal property sold is 24 delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery 25 to an out-of-state destination. The gross receipts from such sales shall include delivery charges, 26 when such charges are subject to the state sales and use tax, regardless of the place to which delivery 27 is made. In the event a retailer has no permanent place of business in the State or has more than one 28 III DHCljs {Ordioanccs\GeneraITransactions.Usc: Tax.Ordl z Revised snlO6 2UU/-31 ._------.---- HC-1229 1 AN ORDINANCE OF THE CITY OFSAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREA nON OF A CITIZEN'S OVERSIGHT COMMITTEE. 2 3 4 5 place of business, the place or places at which the retail sales are consummated shall be determined 6 under rules and regulations to be prescribed and adopted by the State Board of Equalization. 7 SECTION 7. Use Tax Rate. An excise tax is hereby imposed on the storage, use or other 8 consumption in the City of tangible personal property purchased from any retailer on, and after the 9 operative date of this ordinance for storage, use or other consumption in said territory at the rate of 10 0.25% of the sales price of the property. The sales price shall include delivery charges when such II charges are subject to state sales or use tax regardless of the place to which delivery is made. 12 SECnON 8. Adoption of Provisions o[State Law. Except as otherwise provided in this 13 orctinance, and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 14 of the Revenue and Taxation Code, all of the provisions of Part I (commencing with Section 6(01) 15 of Division 2 of the Revenue and Taxation Code are hereby adopted, and made a part of this 16 ordinance as though fully set forth herein. 17 SECTION 9. Limitations on Adoption of State Law and Collection of Use Taxes. In 18 adopting the provisions of Part I of Division 2 of the Revenue and Taxation Code: 19 20 21 22 23 24 25 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: I. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; The result of that substitution would require action to be taken by or against 2. 26 this City or any agency, officer. or employee thereof rather than by or against 27 the State Board of Equalization, in performing the functions inddentto the 28 III DHaj~ [Ordinaocc)\GeneraITransactions.Use Tax.Ord] Revised Snl06 3 , , LUU/-jl KC-1229 2 AN ORDINANCE OF THE CITY OF SAN BER.1'JARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALlZA TION PURSUANT TO REVENUE AND TAXA nON CODE SECTIONS 7251 ET SEQ., SUBJECT TO VOTER APPRO V AL, AND PROVIDING FOR SUNSET OF THE TAX, AA'D THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 3 4 5 6 administration or operation of this ordinance. 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 3. 7 8 9 substitution would be to: a. Provide an exemption from this tax with respect to certain sales, 10 11 12 13 14 l5 16 storage, use or other consumption of tangible personal property which would not othcIWise be exempt from this tax while such sales, storage, use or othcr consumption rcmain subjcct 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 respcct to certain sales, storage, use or other consumption of tangible personal property which would not be 17 18 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. 19 20 B. The word "City" shall be substituted for the word "State" in the phrase "retailer 21 engaged in business in this State" in Section 6203, and in the definition of that phrase 22 in Section 6203. 23 SECTION 10. Permit Not Required. If a seller's permit has been issued to a retailer under 24 Section 6067 of the Revenue and Taxation Code, an additional transaction's pennit shall not be 25 required by this ordinance. 26 SECTION 11. Exemptions and Exclusions. 27 28 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 Cali fomi a or by any city, DHC/js (Ordinallct's\GencralTransactions.Use Tax.Old] Revised gnlO6 4 LUU/-jl Il.C-1229 2 3 4 5 6 7 8 9 10 AN ORDINANCE OF THE CITY OFSAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZA TION PURSUANT TO REVENUE AND TAXA TION CODE SECTIONS 7251 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. city and county, or county pursuant to the Bradley-Bums Unif011ll 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 propeny, 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 or persons or property under the authority of the laws of this State, the United States, or any foreign government. II 12 13 14 2. IS 16 17 18 19 20 21 22 23 24 25 26 27 28 fll 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 rctaileror his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the pUI1loses 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 (connecting 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 DHCJjs [Ordinancc:i\OeoeralTraasactlons.usc Tax.OId] 5 Revised 817/06 KC-1229 1 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXA TION CODE SECTIONS 7251 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 2 3 4 5 b. With respect to commercial vehicles, by registration to a place of 6 business out-of-City, and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 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. A lease of tangible personal property which is. continuing sale of such 7 8 3. 9 10 11 12 13 14 15 16 17 4. 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 10 the contract or lease has the unconditional right to terminate the contract or 18 19 lease upon notice, whether or not such right is exercised. There are exempted from the use tax imposed by this ordinance, the storage, use or 20 c. 21 other consumption in this City of tangible personal property: 22 1. The gross receipts from the sale of which have been subject to a transactions 23 24 25 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 common carriers of persons or property for hire or 26 27 28 compensation under a certificate of public convenience, and necessity issued pursuant to the laws of this State, the United States, or any foreign DHOjs [Ordinsncc:s\GeoeraITransacrions.Use Tax..Ord] Revised 8r7!06 6 L.VUI .)1 MC-1229 2 AN ORDINANCE OF THE CITY OFSANBERNARDINO IMPOSING A GENERAL TRA:\'SACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUA LIZA nON PURSUANT TO REVENUE AND TAXA nON CODE SECTIOt\S 7251 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF TIlE TAX, Al'iD TilE CREATION OF A CITIZEN'S OVERSIGHT CO:\-IMITTEE. 3 4 5 government. This exemption is in addition to the exemptions provided in 6 7 Sections 6366 and 6366, I of the Revenue and Taxation Code of the State of California, 8 9 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 10 ordinance, II 4, If the possession of. or the exercise of any right Or power over. the tangible ]2 personal property arises under a lease which is a continuing purchase of such 13 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 14 ]5 ordinance, 16 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or 17 other consumption, or possession of, or exercise of any right or power over, 18 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 19 20 lease has the unconditional right to terminate the contract or lease upon 21 notice, whether or not such right is exercised. 22 23 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 24 25 26 27 28 m-lC/)S IOrdinil.nces\GcneraITr.lnSaClions_Use TaJ(.Ord] 7 Revised 811![)6 ,"VVI .J.L HC-1229 2 AN ORDINANCE OFTHE CITY OF SAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STA TE BOARD OF EQUALlZA TlON PURSUANT TO REVENUE AND TAXA TlON CODE SECTIONS 7251 ET SEQ., SVBJECT TO VOTER APPROV AL, AND PROVIDING FOR SUNSET OF THE TAX, A:\1) THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 3 4 5 under the authority of the retailer. 6 7 7. "A retailer engaged in business in the City" shalt also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 40(0) of Divis ion 3 of the Vehicle Code, aircraft 8 9 licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with 10 11 Section 9840) of the Vehicle Code. That retailer shall be required to collect 12 use tax from any purchaser who registers or licenses the vehicle,. vessel, or 13 ai rcraft at an address in the Ci ty. 14 D. Any person subject to use tax under this ordinance may credit against that tax any 15 16 17 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. 18 19 20 SECTION 12. Amendments To State Law. All amendments subsequent to the effective date of this ordinance to Part I 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 Di vision 2 of the Revenue and 21 22 23 24 25 26 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 tall: imposed by this ordinance. SECTION 13. EnioiniUl! Collection Forbidden. No injunction or writ of mandate orother 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 27 28 OHCljs [Ordinances\GeneraITransactions.U~ Tax.Grdl Revised snlO6 8 ,-UU/-J~ KC-1229 2 3 4 5 6 AN ORDINANCE OFTHE CITY OF SAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZA TION PURSUAl'ti TO REVENUE AND TAXA TION CODE SECTIONS 7251 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COM~nTTEE. 7 of tax required to be collected. SECTION 14. Severabilitv. 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. 8 9 SECTION 15. Effective Date. and Submission To Voters. This ordinance relates to the 10 11 levy and collection of City transactions and use taxes and shall take effect immediately upon its 12 approval by the voters of the City. SECTION 16. Amendment. and Termination Date. The authority to levy the tax imposed by this ordinance shall expire 15 years after the Operative Date defined in Section 2 of this 13 14 15 16 ordinance. However, as required by Article XIIIC of the California Constitution, no amendment to this ordinance may increase the rates of the taxes above 0.25% without voter approval. SECTION 17. Declaration. The proceeds of the taxes imposed uy this ordinance may be used for any lawful purpose of the City, as authorized by ordinance, resolution or action of the Mayor and Common Council. These taxes are not special taxes within the meaning of Section I( d) of Article XIIIC of the California Constitution, but are general taxes imposed for general government 17 18 19 20 21 22 purposes. SECTION 18. Citizen's Advisory Committee. The Mayor and Common Council shall create a Citizen's Oversight Committee, which shall review the expenditure of proceeds of the taxes imposed by this ordinance and report on those expenditures to the voters of the City at least once a 23 24 year. 25 SECTION 19. Execution. The Mayor and City Clerk are authorized to subscribe this Ordinance where indicated below to evidence its approval by the voters of the City. 26 27 III /II 28 DHCljs (Ordinances\GeneraTTransactions. Use Ta,l;.Ordl Revised 8/7/06 9 LVUI ..lr-- KC-1229 AN ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF 2 EQUALIZA nON PURSUANT TO REVENUE AND TAXA nON CODE SECTIONS 7251 3 ET SEQ., SUBJECT TO VOTER APPROVAL, AND PROVIDING FOR SUNSET OF THE TAX, AND THE CREATION OF A CITIZEN'S OVERSIGHT COMMITTEE. 4 5 6 7 8 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and Common Council of the City of San Bernardino at a j oint regular, meeting thereof, held on the 21st day of Au!\ust ,2006. by the following vote. to wit: COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT ESTRADA 9 BAXTER 10 VACANT 11 DERRY 12 KELLEY 13 JOHNSON 14 MCCAMMACK 15 16 ~ ~ x x x ~ 17 Q~i'h.~ RaChel G. Clark, City Clerk The foregoing Ordinance is hereby approved this J..~y of ,2006. 18 19 Au!\ust 20 21 ~~ Pat ckJ. Mom, a I y of San Bernardino 22 23 24 25 By: /'---- / Approved as to Form: Michael G. Colantuono, Special Counsel \.... '-., 8/1/0(., 26 27 28 DHC/js [Ordinances\GellenlTransactions.Ust: Tax.Ord] 10 Revised sn/06