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HomeMy WebLinkAbout26- City Manager CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Charles E. McNeely Subject: Resolutions and Urgency Ordinance to place a ''/z cent Local Transactions and Use Dept: City Manager's Office Tax Measure on the November 2010 ballot and to provide a public education effort. Date: July 19, 2010 MCC Date: August 2, 2010 Synopsis of Previous Council Action: 6/30/2010—The Mayor and Common Council direct staff to research a possible %cent increase to the City's sales tax and bring the information back to the Council on July 6, 2010. 7/6/2010—The Mayor and Common Council authorize the City Manager to proceed with the Local Transaction and Use Tax process including securing proposals from consultants for public education,voter outreach and the preparation of documents for placement of a measure on the November 2010 election Recommended Motion: Adopt resolutions and an urgency ordinance to place a % cent increase to the City's Local Transaction and Use Tax on the November 2010 Statewide Consolidated Election and to provide a public education effort. a(y1 Charles E. Mc eely Contact person: Barbara Pachon. Director of Finance Phone: 5144 Supporting data attached: StaffRenort Ward: Alt FUNDING $110,000 for conducting the election and$16,250 for direct REQUIREMENTS: Amount: charges by the Registrar of Voters; $86,500 for public education Source: (Acct.No.) City Clerk and General Government (Acct. Description) Elections/Professional & Contractual Finance: Council Notes: Agenda Item No. #ab �_a-( 0 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Staff Report Subiect: Resolutions and Urgency Ordinance to place a % cent Local Transactions and Use Tax Measure on the November 2010 ballot and to provide a public education effort. Background: The fiscal condition of the City of San Bernardino has been severely impacted by the declining national, state and local economies coupled with continued State financial take-aways. Over the last two years, the City has implemented a number of actions designed to save money, including eliminating 173 full-time positions, imposing a freeze on most hiring, asking vendors to take a voluntary 5% reduction in contract costs, placing restrictions on non-mandated travel and training, and reducing supply and material purchases to the extent practical. Additionally, significant reductions in budget allocations for facilities and public infrastructure maintenance were imposed, new revenue sources were identified, and personnel costs were reduced through employee granted wage concessions. To further address a major shortfall in revenue resources, the City implemented a number of one-time revenue mechanisms to help close the gap. These actions were undertaken to address a net General Fund shortfall of more than $59 million the City identified in mid 2008. These budget reduction actions have had significant impacts on the City's ability to deliver services to its residential and business communities, as well as on the employees who provide these services. Despite the City's best efforts, a deficit of approximately $24 million was projected for 2010-11 fiscal year with an estimated five-year cumulative deficit of$188 million. In large part this deficit is due to an anticipated continued decline in sales tax, utility user tax and property tax revenues, as well as increases in costs related to personnel compensation, retirement and other benefits. The gravity of the City's fiscal position was acknowledged by the Mayor and Common Council in the adoption on May 6, 2010, of Resolution 2010-87 which proclaimed the existence of a fiscal emergency. Beginning in April, 2010, the City Manager presented a number of "Budget Balancing Strategy Options" to the Mayor and Common Council in order to address the projected deficit. At the Council's direction, staff was requested to research and present information for a Property Transfer Tax and the formation of a City-wide Assessment District. On June 30, 2010, the Mayor and Common Council were presented with each of these options, and the associated revenue. After discussion, the Council decided not to pursue either of these two options. As an alternative, a motion was made directing staff to research a possible %s cent sales tax and to bring that information back to the Council. On July 6, 2010 the Mayor and Common Council authorized the City Manager to proceed with the Local Transaction and Use Tax process including securing proposals from consultants for public education, voter outreach and the preparation of documents for placement of a measure on the November 2010 election. Staff Report—Local Transaction and Use Tax p,] Senate Bill 566, effective January 1, 2004, authorizes cities to levy transactions and use taxes for general or special purposes, subject to voter approval. Prior to the enactment of SB 566, cities needed specific legislative approval in order to place a sales tax ordinance before the voters of that city. Transactions and use taxes generally apply to merchandise that is delivered in a jurisdiction which imposes such a tax. State law allows local transactions and use taxes to be imposed at a rate of 0.25% or a multiple thereof up to a total of 2%. Outside of a small administrative fee collected by the State Board of Equalization, all funding generated by a local voter-approved sales tax increase is legally required to be spent on city services, and can not be diverted by Sacramento. The current total sales and use tax rate in San Bernardino is 9.00%, which includes the State's base of 8.25%, the County transportation Measure I rate of 0.50% and the 0.25% for Measure Z. If approved by the voters, the new rate will be 9.50 percent. (See Exhibits A and B for additional information on the background, exemptions and rates of sales and use taxes in jurisdictions in California.) In the current economy, a %z cent Local Transaction and Use Tax is expected to generate approximately $10.2 million annually, with $2.5 estimated for FY 2010-11. These projections are based on actual revenue generated from Measure Z, the 'A cent sales tax passed by voters in 2006. The estimated revenue that would be generated from a % cent tax would be sufficient to meet the revenue enhancement assumptions for the previously proposed Property Transfer Tax and City- wide Assessment District combined. If adopted,the proposed resolutions and ordinance will place the %cent Local Transactions and Use Tax Measure on the November 2010 ballot and provide the resources needed for a public education effort. The proposed tax will expire after seven years, unless an extension is approved by a majority vote of the citizens. The measure will also include fiscal accountability, with an annual audit and oversight by a citizen's committee. Additionally, the resolution requests that the processing of the pre-election arguments and rebuttals, together with the conducting of the election, be performed by the San Bernardino County Registrar of Voters. The deadline to submit ballot measures for the Statewide Consolidated election on November 2, 2010, is August 6. To place the measure on the ballot, the Mayor and Common Council must take the following actions: • adopt a resolution calling a special municipal election to be consolidated with the statewide general election and requesting services from the County Registrar of Voters for the processing and conducting of the election, • adopt a resolution proposing the tax, and • adopt an urgency ordinance imposing the general transactions and use tax subject to voter approval. In order for the measure to be placed on the ballot, the ordinance must be approved by a two-thirds vote of all members of the Common Council. If on November 2. 2010, the measure is approved by a majority of the voters (50 percent plus one),the tax will become effective April 1, 2011 Public resources can not be used to advocate for or against a ballot measure. However, it is permissible and common for public agencies to fund neutral public information programs that are designed to inform constituents about a given issue of importance to the community. Staff secured proposals from the two major firms providing these services in California, Tramutola and Lew Edwards Group (LEG). Staff interviewed both firms and recommends that the City retain the Lew Staff Report—Local Transactions and Use Tax p. 2 Edwards Group n an amount not to exceed $86 500 for u to four mailers. LEG has extensive P > P experience in providing public education materials for cities;their recent successful experience with sales tax measures includes the cities of Cathedral City, Cotati, Desert Hot Springs and Rohnert Park. The firm also currently represents eight additional jurisdictions with sales tax measures in their 2010 planning efforts, including the cities of Concord, El Cerrito, Half Moon Bay, Livermore, Novato, San Leandro, Tracy and Vallejo. Financial Impact: The '/3 cent Local Transaction and Use Tax is anticipated to generate approximately $10.2 million annually. If the measure is approved on the November ballot, the additional %2 cent will become effective on April 1, 2011; generating approximately $2.5 Million for FY 2010/2011. The estimate of $110,000 to place one measure on the November ballot and $16,250 for direct charges for performing the pre-election processing by the Registrar of Voters is budgeted in the FY 2010-11 City Clerk's account for elections. The budget for the public education effort, in an amount not to exceed $86,500 is appropriated in the FY 2010-11 budget's Non-Departmental account for consultant services. Recommendation: It is recommended that the Mayor and Common Council approve the following actions in order to place a '/3 cent Local Transactions and Use Tax Measure on the November 2010 ballot and to provide a public education effort: A. Approve a Resolution calling a special election to be consolidated with the Statewide general election and requesting the services of the County Registrar of Voters for the conducting of the election and processing of the City's proposed measures; B. Approve a Resolution placing a general transactions and use tax on the ballot for the November 2, 2010 Consolidated Special Election; C. Approve a Resolution authorizing the consultant services agreement with the Lew Edwards Group to provide public information service related to the 2010 Local Transactions and Use Tax Ballot Measure; and D. Adopt an Urgency Ordinance imposing a general transactions and use tax to be administered by the State Board of Equalization subject to voter approval, and providing for a 7 year sunset of the tax and the creation of an oversight committee, subject to voter approval. Staff Report—Local Transaction and Use Tax p.7 Exhibit A CALIFORNIA STATE BOARD California OF EQUALIZATION BOARD MEMBERS City and County BETTY T.YEE First District Ben Francisco Sales and Use MICHELLE STEEL TniN WIN JEROHills Estates Tax Rates JEROME E.HORTON Fourth d Los s AAngeples les JOHN CHIANG Slew Conlmller BARBARAALBY Acting Member Second District Sacrament° f RAMON J.HIRSIG Executive Director April 1, 2010 Publication No. 71 • LDA Contents Preface Page Many of California's cities,counties,towns, 1 How To Use This Publication and communities have special taxing jurisdic- 2 District Taxes,Rates,and tions(districts),which impose a transactions Effective Dates (sales)and use tax.These districts increase 20 History of Sales and Use Tax the tax rate in a particular area by adding the Rates district tax to the combined statewide rate of Inside BOE Offices,Addresses, 8.25%(effective April 1,2009).The rates for Back and Phone Numbers these districts range from 0.10%to 1.00%per Cover district.More than one district tax may be in effect in a given location. As a seller or a consumer,you may be required to report and pay district taxes for your taxable sales and purchases.For more information on district taxes and how they are applied,you should download or order: • Publication 44,District Taxes • Publication 105,District Taxes and Delivered Sales For more information go online at wurmboe.ca.gov to: • View an electronic version of this publication: www.boe.ca.gov/pdf/pub7l.pdf • Order publications www.boe.ca.gov/cgi-bin/form_search.cgi • Search for rates by city or county or to access links to search rates by address: www.bae.ca.gov 1sutax1pam71.htm I 3 Z How To Use This Publication To find out the sales and use tax rate for a county,city,or community in California,first locate the county,city,or community name,listed alphabetically beginning on page 5.The rate is shown,along with the name of the county in which the city or community is located. The rate includes the combined statewide rate of 8.25%plus any applicable district taxes. Please Note:It is not always possible to determine the correct rate based solely on a mailing address.For example,a customer may live near a county line and have a zip code and city name whose mail is routed to a post office in a neighboring county which has a different tax rate.If you relied solely on the post office mailing address to determine the tax rate, you might assume the customer lived m a county other than the one in which he or she actually resides.As a result,you may apply an incorrect tax rate. If you are in doubt about the correct rate,check with your customer,call our toll-free number 800-400-7115,or call the local Board of Equalization(BOE)office new you for assistance.You may want to refer to other references for help,such as the California Directory of Post Offices,Thomas Guides,and other map references.Post Office mailing addresses sometimes use a"city"designation other than the actual city in which the addressee is located.For example,in Los Angeles County,the"cities"of Hollywood, Van Nuys,Sherman Oaks,San Pedro,West Los Angeles,and Eagle Rock are actually located within the City of Los Angeles. Recent Tax Rate Changes We update this pamphlet whenever special tax districts are added or deleted,or when other tax rate changes occur.The following section,District Taxes,Rates,and Effective Dates, incorporates the district tax rate changes through April 1,2010.The Effective and End dates for the particular district tax indicate the recent changes. District tax rate changes may occur more frequently than once a year.In order to maintain an adequate supply of this publication while keeping the information updated,when necessary,we will insert an update sheet of any changes that occur between revision dates. This publication,including the most recent updates,may be viewed on the BOE's website at urunu.boe.ca.gov/pdf/pub7l.pdf. California City and County Sales and Use Tax Rates ■ April 2010 Page 1 District Taxes, Rates, and Effective Dates (City): Indicates district tax applies within the city limits and is in addition to other applicable state, local and transit district taxes. Effective End Tax Area District Name and Initials Rate Date Date Alameda County Alameda County Essential Health Care Services Transactions 0.50% 07-01-04 and Use Tax(ACHC) Alameda County Transportation Improvement Authority(ACTI) 0.50% 04-01-02 Alameda County Transportation Authority(ACTH) 0.50% 04-01-87 03-31-02 Bay Area Rapid Transit District (BART) 0.50% 04-01-70 Amador County Amador County Fire Protection and Emergency Med.Services 0.50% 04-01-09 Transactions and Use Tax(AMCG) Colusa County Williams (City) City of Williams Transactions and Use Tax(WLMS) 0.50% 04-01-07 Contra Costa County Contra Costa Transportation Authority,(CCTA) 0.50% 04-01-89 Bay Area Rapid Transit District(BART) 0.50% 04-01-70 El Cerrito(City) City of El Cerrito Street Improvements Transactions and Use Tax(SCSI) 0.50% 07-01-08 Pinole(City) City of Pinole Transactions and Use Tax (PNLE) 0.50% 04-01-07 Richmond (City) City of Richmond Transactions and Use Tax(RMGT) 0.60% 04-01-05 Del Norte County Del Norte County District(DNCD) 0.50% 07-01-93 06-30-98 El Dorado County Placerville(City) City of Placerville Public Safety Transactions and Use Tax(PLPS) 0.25% 04-01-99 South Lake Tahoe(City) City of South Lake Tahoe Transactions and Use Tax(SLTG) 0.50% 0401-05 Fresno County Fresno County Public Library Transactions and Use Tax (FCPL) 0.125% 0401-99 Fresno County Fresno County Transportation Authority(FCTA) 0.50% 07-01-87 Fresno County Fresno County Zoo Authority(FCZA) 0.10% 0401-05 Clovis(City) City of Clovis Public Safety Transactions and Use Tax(CCPS) 0.30% 0401-00 9-30-08 Reedley(City) City of Reedley Public Safety Transactions and Use Tax(RDPS) 0.50% 07-01-08 Sanger(City) City of Sanger Public Safety Transactions and Use Tax(SGPS) 0.75% 07-01-08 Selma (City) City of Selma Public Safety Transactions and Use Tax(SLMA) 0.50% 0401-08 Humboldt County Arcata(City) City of Arcata Transactions and Use Tax (ARGF) 0.75% 0401-09 Eureka(City) City of Eureka Transactions and Use Tax(ERKA) 0.25% 0401-09 Trinidad(City) City of Trinidad Transactions and Use Tax(TRGF) 0.75% 0401-09 Trinidad (City) City of Trinidad General Revenue Transactions and Use Tax(TDGF) 1.00% 10-01-04 12-31-08 Imperial County Imperial County Local Transportation Authority(IMTA) 0.50% 04-01-90 Calexico(City) Calexico Heffernan Memorial Hospital District(CXHD) 0.50% 10-01-92 03-31-06 Inyo County Inyo County Rural Counties Transactions Tax(INRC) 0.50% 10-01-88 Kern County Arvin (City) City of Arvin Transactions and Use Tax(ARVN) 1.00% 0401-09 Delano(City) City of Delano Transactions and Use Tax(DLNO) 1.00% 04-01-08 Lake County Clearlake(City) City of Cleadake Public Safety Transactions and Use Tax(CUPS) 0.50% 07-01-95 Lakeport(City) City of Lakeport Transactions and Use Tax(LPGT) 0.50% 04-01-05 Los Angeles County Los Angeles County Transportation Commission(LATC) 0.50% 04-01-91 Los Angeles County Transportation Commission(LACT) 0.50% 07-01-82 Los Angeles County Metro Transportation Authority(LAMT) 0.50% 07-01-09 Avalon(City) City of Avalon Municipal Hospital and Clinic Tax(AMHC) 0.50% 10-01-00 El Monte (City) City of El Monte Transactions and Use Tax(EMGF) 0.50% 04-01-09 Inglewood(City) City of Inglewood Vital City Services Transactions and Use Tax(IGWD) 0.50% 04-01-07 Pico Rivera(City) City of Pico Rivera Transactions and Use Tax(PCRV) 1.00% 04-01-09 South Gate(City) City of South Gate Transactions and Use Tax(SGTE) 1.00% 10-01-08 Madera County Madera County 2006 Transportation Authority(MCTC) 0.50% 0401-07 Madera County Transportation Authority(MCTA) 0.50% 10-01-90 09-30-06 Marin County Transportation Authority Marin County(TAMC) 0.50% 0401-05 Sonoma-Marin Area Rail Transit District(SMRT) 0.25% 04-01-09 San Rafael(City) City of San Rafael Transactions and Use Tax(RFEL) 0.50% 04-01-06 Mariposa County Mariposa County Healthcare Transactions and Use Tax(MCHC) 0.50% 0401-05 Maripasa County Healthcare Authority(MCHA) 0.50% 07-01-00 06-30-04 Mendocino County Fort Bragg (City) City of Fort Bragg Maintain City Streets Transactions and Use Tax(FBCS) 0.50% 01-01-05 Point Arena (City) City of Point Arena Transactions and Use Tax(PARS) 0.50% 04-01-04 Page 2 Califomia City and County Sales and Use Tax Rates ■ April 2010 District Taxes, Rates, and Effective Dates Effective End Tax Area District Name and Initials Rate Date Date Ukiah(City) City of Ukiah Transactions and Use Tax(UKGT) 0.50% 10-01-05 Willits(Coy) City of Willits Road System Transactions and Use Tax(WCRS) 0.50% 10-01.03 Merced County Gustine(City) City of Gustine Community Enhancement to Services Transactions and Use Tax(GSTG) 0.50% 04-01-10 Los Banos (City) City of Los Banos Public Safety Transactions and Use Tax(LBPS) 0.50% 04-01-05 Merced(City) City of Merced Transactions and Use Tax(MRCD) 0.50% 04-01-06 Mono County Mammoth Lakes(City) City of Mammoth Lakes Parks, Recreation,and Trails 0.50% 10-01-08 Transactions and Use Tax(MLPR) Monterey County Del Rey Oaks (City) City of Del Rey Oaks Transactions and Use Tax(DLRY) 1.00% 04-01-07 Pacific Grove (City) City of Pacific Grove Transactions and Use Tax(PGRV) 1.00% 10-01-08 Salinas(City) City of Salinas Transactions and Use Tax(SLNS) 0.50% 04-01-06 Sand City(City) City of Sand City General Purpose Transactions and Use Tax(SAND) 0.50% 04-01-05 Seaside(City) City of Seaside Transactions and Use Tax(SEAS) 1.00% 07-01-08 Napa County Napa County Flood Protection Authority Tax(NCFP) 0.50% 07-01-98 Nevada County Nevada County Public Library Transactions and Use Tax(NVPL) 0.125% 10-01-98 Nevada City(City) City of Nevada City Street Improvements Transactions and Use Tax(NVSI) 0.50% 04-01-07 Truckee(City) Town of Truckee Road Maintenance Transactions and Use Tax(TRSR) 0.50% 10-01-98 Orange County Orange County Local Transportation Authority(OCTA) 0.50% 0401-91 La Habra(City) City of La Habra Transactions and Use Tax(LHBR) 0.50% 04-01-09 Laguna Beach (City) City of Laguna Beach Temporary Transactions and Use Tax(LGBH) 0.50% 07-01-06 06-30-09 Riverside County Riverside County Transportation Commission(RCTC) 0.50% 07-01-89 Sacramento County Sacramento Transportation Authority(STAT) 0.50% 04-01-89 Galt(City) City of Galt Public Safety Transactions and Use Tax(GLTS) 0.50% 04-01-09 San Benito County San Benito County General Fund Augmentation(SBTU) 0.50% 01-01-94 12-31-97 San Benito County Council of Governments (SBCG) 0.50% 01-01-89 12-31.98 Hollister(City) City of Hollister Transactions and Use Tax(HLST) 1.00% 04-01-08 San Juan Bautista (City) City of San Juan Bautista Transactions and Use Tax(SJBG) 0.75% 04-01-05 San Bernardino County San Bernardino County Transportation Authority(SEER) 0.50% 04-01-90 Montclair(City) City of Montclair Transactions and Use Tax(MTGR) 0.25% 04-01-05 San Bernardino(City) City of San Bernardino Transactions and Use Tax(SBRN) 0.25% 04-01-07 San Diego County San Diego County Regional Transportation Commission(SDTC) 0.50% 04-01-88 El Cajon(City) City of El Cajon Service Preservation Transactions and Use Tax(ECGF) 0.50% 04-01-09 El Cajon(City) City of El Cajon Public Safety Facilities Transactions and Use Tax(ECPS) 0.50% 04-01-05 La Mesa(City) City of La Mesa Transactions and Use Tax(LMSA) 0.75% 0401-09 National City(City) City of National City Transactions and Use Tax(NCGT) 1.00% 10-01-06 Vista(City) City of Vista Transactions and Use Tax(VSTA) 0.50% 04-01-07 San Francisco City San Francisco County Public Finance Authority(SFPF) 0.25% 10-01-93 and County San Francisco County Transportation Authority(SFTA) 0.50% 04-01-90 Bay Area Rapid Transit District(BART) 0.50% 0401-70 San Joaquin County San Joaquin Transportation Authority(SJTA) 0.60% 04-01-91 Manteca(City) City of Manteca Public Safety Transactions and Use Tax(MTPS) 0.50% 0401-07 Stockton(City) City of Stockton Public Safety Transactions and Use Tax(SPFG) 0.25% 0401-05 San Luis Obispo County Arroyo Grande(City) City of Arroyo Grande Transactions and Use Tax(ARGO) 0.50% 0401-07 Grover Beach(City) City of Grover Beach Transactions and Use Tax(GRBH) 0.50% 04-01-07 Morro Bay(City) City of Mono Bay Transactions and Use Tax(MRBY) 0.50% 0401-07 Pismo Beach(City) City of Pismo Beach Transactions and Use Tax(PSMO) 0.50% 10-01-08 San Luis Obispo(City) City of San Luis Obispo Essential Services Transactions and Use Tax(SLOG) 0.50% 0401-07 San Mateo County San Mateo County Transportation Authority(SMTA) 0.50% 01-01-89 San Mateo County Transit Distract(SMCT) 0.50% 07-01-82 San Mateo(City) City of San Mateo Transactions and Use Tax(SMTG) 0.25% 04-01-10 Santa Barbara County Santa Barbara County Local Transportation Authority(SBAB) 0.50% 04-01-90 Santa Clara County Santa Clara County Transactions and Use Tax(SCGF) 0.50% 0401-97 03-31-DB Santa Clara County Transit District(SCCT) 0.50% 10-01-76 Santa Clara County Valley Transportation Authority(SCVT) 0.50% 04-01-06 California City and County Sales and Use Tax Rates ■ Apri12010 Page 3 District Taxes, Rates, and Effective Dates Effective End Tax Area District Name and Initials Rate Date Date Campbell(City) City of Campbell Vital City Services,Maintenance and Protection 0.25% 04-01-09 Transactions and Use Tax(CMPL) Santa Cruz County Santa Cruz County Public Library Transactions and Use Tax(SZPL) 0.25% 04-01-97 Santa Cruz County Earthquake Recovery Bond(SCER) 0.50% 04-01-91 03-31-97 Santa Cruz Metropolitan Transit District(SCMT) 0.50% 01-01-79 Capitols(City) City of Capitols Transactions and Use Tax(CPGT) 0.25% 04-01-05 Santa Cruz(City) City of Santa Cruz Replacement Transactions and Use Tax(STCZ) 0.50% 04-01-07 Santa Cruz(City) City of Santa Cruz Transactions and Use Tax(SZGT) 0.25% 07-01-04 03-31-07 Scoffs Valley(City) City of Scotts Valley Transactions and Use Tax(SVGT) 0.50% 04-01-06 03-31-09 Scoffs Valley(City) City of Scotts Valley Transactions and Use Tax(SVGF) 0.25% 04-01-09 Watsonville(City) City of Watsonville Transactions and Use Tax(WTVL) 0.25% 0401-07 Solano County Solano County Public Library Transactions and Use Tax(SLPL) 0.125% 10-01-98 Sonoma County Sonoma County Open Space Authority(SCOS) 0.25% 0401-91 Sonoma County Transportation Authority(SNTA) 0.25% 0401-05 Sonoma-Mann Area Rail Transit District(SMRT) 0.25% 0401-09 Santa Rosa(City) City of Santa Rosa Public Safety Transactions and Use Tax(SRPS) 0.25% 0401-05 Sebastopol(City) City of Sebastopol Transactions and Use Tax(SEGR) 0.125% 0401-03 03-31-05 Sebastopol(City) City of Sebastopol Community Transactions and Use Tax(SEBG) 0.25% 04-01-05 Stanislaus County Stanislaus County Library Transactions and Use Tax(STCL) 0.125% 07-01-95 Ceres(City) City of Ceres Public Safety Transactions and Use Tax(CRPS) 0.50% 04-01-08 Tulare County Tulare County Transportation Authority(TCTA) 0.50% 04-01-07 Tulare County Transactions and Use Tax(TCTU) 0.50% 10-01-95 12-31-97 Dinuba(City) City of Dinuba Police and Fire Protection Transactions and Use Tax(DNBA) 0.75% D4-01-06 Farmersville(City) City of Farmersville Transactions and Use Tax(FMGT) 0.50% 04-01-05 Porterville(City) City of Porterville Public Safety, Police and Fire Transactions 0.50% 04-01-06 and Use Tax(PTVL) Tulare(City) City of Tulare Transactions and Use Tax(TLRE) 0.50% 0401-06 Visalia(City) City of Visalia Transactions and Use Tax(VPST) 0.25% 07-01-04 Tuolumne County Sonora(City) City of Sonora Transactions and Use Tax(SPFW) 0.50% 01-01-05 Venture County Oxnard(City) City of Oxnard Vital Services Transactions and Use Tax(OXND) 0.50% 04-01-09 Port Hueneme(City) City of Port Hueneme Transactions and Use Tax(PTHN) 0.50% 04-01-09 Yolo County Davis(City) City of Davis Transactions and Use Tax(DAGT) 0.50% 07-01-04 West Sacramento(City) City of West Sacramento Transactions and Use Tax(WSTU) 0.50% 04-01-03 Woodland(City) City of Woodland Transactions and Use Tax(WDLD) 0.50% 10-01-06 Woodland(City) City of Woodland General Revenue Transactions and Use Tax(MGT) 0.50% 07-01-00 06-30-06 Page 4 California City and County Sales and Use Tax Rates ■ April 2010 Cities, Counties, and Tax Rates Location Rate County Amboy 8.75% San Bernardino County Total County Rate American 8.75% Napa County Total County Rate Canyon' Alameda 9.75% Anaheim' 8.75% Orange Butte 8.25% Alpine 8.25% Anderson' 8.25% Shasta Location Rate County Amador 8.75% Angels Camp' 8.25% Calaveras Badger 8.75% Tulare Location Rate County Angelus Oaks 8.75% San Bernardino Bailey 9.75% Los Angeles Acampo 8.75% San Joaquin Angwin 8.75% Napa Baker 8.75% San Bernardino Acton 9.75% Los Angeles Annapolis 9.00% Sonoma Bakersfield' 8.25% Kern Adelaide 8.25% San Luis Obispo Antelope 8.75% Sacramento Balboa 8.75% Orange Adelanto' 8.75% San Bernardino Antelope Acres 9.75% Los Angeles (Newport Adin 8.25% Modoc Antioch' 9.25% Contra Costa Beach`) Agoura 9.75% Los Angeles Anza 8.75% Riverside Balboa Island 8.75% Orange Agoura Hills' 9.75% Los Angeles Apple Valley' 8.75% San Bernardino (Newport Ague Caliente 9.00% Sonoma Applegate 8.25% Placer Beach? Ague Caliente 8.75% San Diego Aptos 9.00% Santa Cruz Balboa Park 8.75% San Diego Springs Arbuckle 8.25% Colusa (San Diego? Ague Dulce 9.75% Los Angeles Arcadia' 9.75% Los Angeles Baldwin Park' 9.75% Los Angeles Aguanga 8.75% Riverside Arcata' 9.00% Humboldt Ballard 8.75% Santa Barbara Ahwahnee 8.75% Madera Argue 8.75% San Bernardino Ballico 8.25% Merced AI Tahoe 8.25% El Dorado Arleta 9.75% Los Angeles Ballroad 8.75% Orange l A Los ngees? Alameda' 9.75% Alameda ( Bangor 8.25% Butte Alamo 9.25% Contra Costa Arlington 8.75% Riverside Banning' 8.75% Riverside Albany' 9.75% Alameda (Riverside') Banta 8.75% San Joaquin Alberhill 8.75% Riverside Armona 8.25% Kings Bard 8.75% Imperial (Lake Elsinore') Army Terminal 9.75% Alameda Barrington 9.75% Los Angeles Albion 8.25% Mendocino Arnold 8.25% Calaveras Barstow' 8.75% San Bernardino Alderpoint 8.25% Humboldt Aromas 8.25% Monterey Bartlett 8.75% Inyo Alhambra' 9.75% Los Angeles Arrowbear Lake 8.75% San Bernardino Barton 8.975% Fresno Aliso Viejo' 8.75% Orange Arrowhead 8.75% San Bernardino Base Line 8.75% San Bernardino Allegheny 82 Highlands 5% Sierra Bass Lake 8.75% Madera Almaden Valley 9.25% Santa Clara Arroyo Grande' 8.75% San Luis Obispo Bassett 9.75% Los Angeles Almanor 8.25% Plumes Artesia' 9.75% Los Angeles Baxter 8.25% Placer Almondale 9.75% Los Angeles Artois 8.25% Glenn Bay Point 9.25% Contra Costa Alondra 9.75% Los Angeles Arvin' 9.25% Kern Bayside 8.25% Humboldt Alpaugh 8.75% Tulare Ashland 9.75% Alameda Baywood Park 8.25% San Luis Obispo 00% Sonoma Alpine 8.75% San Diego Asti 9. Beale A.F.B. 8.25% Yuba Alta 8.25% Placer Atascadero' 8.25% San Luis Obispo Bear River Lake 8.75% Amador Alta Loma 8.75% San Bernardino Athens 9.75% Los Angeles Bear Valley 8.25% Alpine (Rancho Atherton' 9.25% San Mateo Bear Valley 8.75% Mariposa Cucamonga') Atwater' 8.25% Merced Beaumont' 8.75% Riverside Altadena 9.75% Los Angeles Atwood 8.75% Orange Beckwourth 8.25% Plumes ABaville 8.25% Calaveras Auberry 8.975% Fresno Be[Air Estates 9.75% Los Angeles Alton 8.25% Humboldt Auburn' 8.25% Placer Belden 8.25% Plumes Alturas' 8.25% Modoc Avalon' 10.25% Los Angeles Bell Gardens' 9.75% Los Angeles Alviso 9.25% Santa Clara Avenel' 8.25% Kings Bell' 9.75% Los Angeles Avery 8.25% Calaveras (San Jose') Avila Beach 825% San Luis Obispo Bella Vista 8.25% Shasta . Amador 8.75% Amador Bellflower* 9.75% Los Angeles City Azusa' 9.75% Los Angeles Belmont' 9.25% San Mateo Amargosa 8.75% Inyo Belvedere' 9.00% Martin (Death Valley) Ben Lomond 9.00% Santa Cruz Benicia' 8.375% Solano Benton 8.25% Mono 'Incorpoat c!city a Certain cfts wMin tN county have a higher W rere.Locate Xte city M fntl the correct rare. California City and County Sales and Use Tax Rates ■ April 2010 Page 5 Cities, Counties, and Tax Rates Location Rate County Location Rate County Location Rate County Berkeley` 9.75% Alameda Boyes Hot 9.00% Sonoma Calabasas 9.75% Los Angeles Bermuda Dunes 8.75% Riverside Springs Highlands Berry Creek 8.25% Butte Bradbury' 9.75% Los Angeles Calabasas Park 9.75% Los Angeles Bethel Island 9.25% Contra Costa Bradford 9.75% Alameda Calabasas" 9.75% Los Angeles Betteravia 8.75% Santa Barbara Bradley 8.25% Monterey Calexico' 8.75% Imperial Beverly Hills' 9.75% Los Angeles Branscomb 8.25% Mendocino Caliente 8.25% Kern Bieber 8.25% Lassen Brawley' 8.75% Imperial California 8.25% Kern Big Bar 8.25% Trinity Brea' 8.75% Orange City' Big Basin 9.00% Santa Cruz Brenta Junction 9.75% Los Angeles California Hot 8.75% Tulare Big Bear 8.75% San Bernardino Brentwood 9.75% Los Angeles Springs City (Los Angeles? California Valley 8.25% San Luis Obispo Big Bear Lake' 8.75% San Bernardino Brentwood" 9.25% Contra Costa Calimesa' 8.75% Riverside Big Bend 8.25% Shasta Briceland 8.25% Humboldt Calipatria' 8.75% Imperial Big Creek 8.975% Fresno Bridgeport 8.75% Mariposa Calistoga' 8.75% Napa Big Oak Flat 8.25% Tuolumne Bridgeport 8.25% Mono Callahan 8.25% Siskiyou Big Pine 8.75% Inyo Bridgeville 8.25% Humboldt Calpella 8.25% Mendocino Big River 8.75% San Bernardino Brisbane 9.25% San Mateo Calpine 8.25% Sierra Big Sur 8.25% Monterey Broderick(West 8.75% Yolo Calwa 8.975% Fresno Biggs` 8.25% Butte Sacramento") Camarillo" 8.25% Ventura Bijou 8.25% El Dorado Brookdale 9.00% Santa Cruz Cambria 8.25% San Luis Obispo Biola 8.975% Fresno Brookhurst 8.75% Orange Cambrian Park 9.25% Santa Clara Biola College 9.75% Los Angeles Center Cameron Park 8.25% El Dorado (La Mirada? Brooks 8.25% Yolo Camino 8.25% El Dorado Birds Landing 8.375% Solano Browns Valley 8.25% Yuba Camp Beale 8.25% Yuba Bishop' 8.75% Inyo Brownsville 8.25% Yuba Camp Connell 8.25% Calaveras Black Hawk 9.25% Contra Costa Bryn Mawr 8.75% San Bernardino Camp Curry 8.75% Mariposa Blairsden 8.25% Plumes Bryte(West 8.75% Yolo Camp Kaweah 8.75% Tulare Blocksburg 8.25% Humboldt Sacramento? Camp Meeker 9.00% Sonoma Bloomington 8.75% San Bernardino Buellton' 8.75% Santa Barbara Camp Nelson 8.75% Tulare Blossom Hill 9.25% Santa Clara Buena Park' 8.75% Orange Camp Pendleton 8.75% San Diego Blossom Valley 9.25% Santa Clara Burbank' 9.75% Los Angeles Camp Roberts 8.25% Monterey Blue Jay 8.75% San Bernardino Burlingame` 9.25% San Mateo Campbell' 9.50% Santa Clara Blue Lake` 8.25% Humboldt Burney 8.25% Shasta Campo 8.75% San Diego Blythe' 8.75% Riverside Burnt Ranch 8.25% Trinity Campo Seco 8.25% Calaveras Bodega 9.00% Sonoma Burrell 8.975% Fresno Camptonville 8.25% Yuba Bodega Bay 9.009/ Sonoma Burson 8.25% Calaveras Canby 8.25% Modoc Bodfish 8.25% Kern Butte City 8.25% Glenn Canoga Annex 9.75% Los Angeles Bolinas 9.00% Mann Butte Meadows 8.25% Butte Canoga Park 9.75% Los Angeles Boise 8.75% Orange Buttonwillow 8.25% Kern (Los Angeles) Bombay Beach 8.75% Imperial Byron 9.25% Contra Costa Cantil 8.25% Kern Bonita 8.75% San Diego Cantua Creek 8.975% Fresno Bonny Doan 9.00% Santa Cruz Canyon 9.25% Contra Costa Bonsall 8.75% San Diego Canyon Country 9.75% Los Angeles Boonville 8.25% Mendocino County Total County Rate (Santa Clarita7 Boron 8.25% Kern Calaveras 8.25% Canyon Lake' 8.75% Riverside Borrego Springs 8.75% San Diego Colusa+ 8.25% Canyondam 8.25% Plumes Bostonia 8.75% San Diego Contra Costa+ 9.25% Capay 8.25% Yolo Boulder Creek 9.00% Santa Cruz Capistrano 8.75% Orange Boulevard 8.75% San Diego Location Rate County Beach(Dana Bouquet Canyon 9.75% Los Angeles Cabazon 8.75% Riverside Point? (Santa Clarita7 Cabrillo 9.75% Los Angeles Capitols' 9.25% Santa Cruz Bowman 8.25% Placer Cadiz 8.75% San Bernardino Cardiff By The 8.75% San Diego Sea(Encinitas) 'Incorp mNddry +CertaincNeswMMntfnmurMyhaveahighert rate.LocalethecityMfiMaremovedcare. Page 6 California City and County Sales and Use Tax Rates ■ April 2010 Cities, Counties, and Tax Rates Location Rate County Location Rate County Location Rate County Cardwell 8.975% Fresno Chinese Camp 8.25% Tuolumne Concord' 9.25% Contra Costa Carlotta 8.25% Humboldt Chino Hills' 8.75% San Bernardino Cool 8.25% El Dorado Carlsbad' 8.75% San Diego Chino' 8.75% San Bernardino Copperopolis 8.25% Calaveras Carmel Rancho 8.25% Monterey Chiriaco Summit 8.75% Riverside Corcoran' 8.25% Kings Carmel Valley 8.25% Monterey Cholame 8.25% San Luis Obispo Cornell 9.75% Los Angeles Carmel' 8.25% Monterey Chowchilla' 8.75% Madera Corning' 8.25% Tehama Carmichael 8.75% Sacramento Chualar 8.25% Monterey Corona Del Mar 8.75% Orange Carnelian Bay 8.25% Placer Chula Vista' 8.75% San Diego (Newport Beach? Carpinteria' 8.75% Santa Barbara Cima 8.75% San Bernardino Corona' 8.75% Riverside Carson' 9.75% Los Angeles Citrus Heights' 8.75% Sacramento Coronado' 8.75% San Diego Cartago 8.75% Inyo City of 9.75% Los Angeles Corralitos 9.00% Santa Cruz Caruthers 8.975% Fresno Commerce' Corte Madera' 9.00% Merin Castles Springs 8.25% Ventura City of 9.75% Los Angeles Coso Junction 8.75% Inyo Casmalia 8.75% Santa Barbara Industry' Costa Mesa' 8.75% Orange Caspar 8.25% Mendocino City Terrace 9.75% Los Angeles Cotati' 9.00% Sonoma Cassel 8.25% Shasta Claremont 9.75% Los Angeles Cottonwood 8.25% Shasta Castaic 9.75% Los Angeles Clarksburg 8.25% Yolo Coulterville 8.75% Mariposa Castella 8.25% Shasta Clayton' 9.25% Contra Costa Courtland 8.75% Sacramento Castle A.F.B. 825% Merced Clear Creek 8.25% Siskiyou Covelo 8.25% Mendocino Castro Valley 9.75% Alameda Clearlake 8.25% Lake Covina' 9.75% Los Angeles Castroville 8.25% Monterey Highlands Cowan Heights 8.75% Orange Cathedral 8.75% Riverside Clearlake Oaks 8.25% Lake Coyote 9.25% Santa Clara City' Clearlake Park 8.75% Lake Crannell 8.25% Humboldt Catheys Valley 8.75% Mariposa (Clearlake') Crenshaw 9.75% Los Angeles i Cayucos 8.25% San Luis Obispo Clearlake' 8.75% Lake Crescent 8.25% Del Norte Cazadero 9.00% Sonoma Clements 8.75% San Joaquin City' Cecilville 8.25% Siskiyou Clinter 8.975% Fresno Crescent Mills 8.25% Plumas Cedar 9.75% Los Angeles Clio 8.25% Plumes Cressey 8.25% Merced Cedar Crest 8.975% Fresno Clipper Mills 8.25% Butte Crest Park 8.75% San Bernardino Cedar Glen 8.75% San Bernardino Cloverdale' 9.00% Sonoma Crests Blanca 9.75% Alameda Cedar Ridge 8.375% Nevada Clovis' 8.975% Fresno Crestline 8.75% San Bernardino Cedarpines 8.75% San Bernardino Coachella' 8.75% Riverside Creston 8.25% San Luis Obispo Park Coalinga' 8.975% Fresno Crockett 9.25% Contra Costa Cedarville 8.25% Modoc Coarsegold 8.75% Madera Cromberg 8.25% Plumes Central Valley 8.25% Shasta Cobb 8.25% Lake Cross Roads 8.75% San Bernardino Century 9.75% Los Angeles Cohasset 8.25% Butte Crowley Lake 8.25% Mono City Cole 9.75% Los Angeles (Mammoth Ceres' 8.875% Stanislaus Coleville 8.25% Mono Lakes') Cerritos' 9.75% Los Angeles Colfax' 8.25% Placer Crows Landing 8.375% Stanislaus Challenge 8.25% Yuba College 8.25% Colusa Cucamonga 8.75% San Bernardino Chambers 8.25% Placer City (Rancho Lodge College Grove 8.75% San Diego Cucamonga') Charter Oak 9.75% Los Angeles Center Cudahy' 9.75% Los Angeles Chatsworth 9.75% Los Angeles Colma' 9.25% San Mateo Culver City' 9.75% Los Angeles (LOS Angeles") Coloma 8.25% El Dorado Cummings 8.25% Mendocino Cherry Valley 8.75% Riverside Colorado 8.75% Mariposa Cupertino' 9.25% Santa Clara Chester 8.25% Plumes Colton' 8.75% San Bernardino Curry Village 8.75% Mariposa Chicago Park 8.375% Nevada Columbia 8.25% Tuolumne Cutler 8.75% Tulare Chico' 825% Butte Colusa' 8.25% Colusa Cutten 8.25% Humboldt Chilcoot 8.25% Plumes Commerce' 9.75% Los Angeles Cuyama 8.75% Santa Barbara China Lake 8.25% Kern Comptche 8.25% Mendocino Cypress' 8.75% Orange NWC Compton` 9.75% Los Angeles (Ridgecrest7 'Incorp med city +Certain anise wmin the county have a higher t rate.Locate Me airy b fl M Me coned rate. California City and County Sales and Use Tax Rates ■ April 2010 Page 7 Cities, Counties, and Tax Rates Location Rate County Location Rate County Dogtown 9.00% Merin Eastside 8.75% San Bernardino County Total County Rate Dollar Ranch 9.25% Contra Costa Echo Lake 8.25% El Dorado Del Norte 8.25% Dorris' 8.25% Siskiyou Echo Park 9.75% Los Angeles Dos Palos' 8.25% Merced (LOS Angeles') Location Rate County Dos Rios 8.25% Mendocino Edgemont 8.75% Riverside Daggett 8.75% San Bernardino Douglas 8.25% Trinity (Moreno Valley`) Dairy Farm 8.375% Solano City Edgewood 8.25% Siskiyou Daly City' 9.25% San Mateo Douglas Flat 8.25% Calaveras Edison 8.25% Kern Dana Point' 8.75% Orange Downey' 9.75% Los Angeles Edwards 8.25% Kern Danville' 9.25% Contra Costa Downieville 8.25% Sierra Edwards A.F.B. 8.25% Kern Dardanelle 8.25% Tuolumne Doyle 8.25% Lassen El Cajon' 9.75% San Diego Darwin 8.75% Inyo Drytown 8.75% Amador El Centro' 8.75% Imperial Davenport 9.00% Santa Cruz Duarte' 9.75% Los Angeles El Cerrito' 9.75% Contra Costa Davis Creek 8.25% Modoc Dublin' 9.75% Alameda El Dorado 8.25% El Dorado Davis' 8.75% Yolo Ducor 8.75% Tulare El Dorado Hills 8.25% El Dorado The University of California Davis Dulzura 8.75% San Diego El Granada 9.25% San Mateo campus tax rate is 8.25% Duncan Mills 9.00% Sonoma El Macero 8.25% Yolo Death Valley 8.75% Inyo Dunlap 8.975% Fresno El Modena 8.75% Orange Death Valley 8.75% Inyo Dunnigan 8.25% Yolo El Monte' 10.25% Los Angeles Junction Dunsmuir' 8.25% Siskyou El Nido 8.25% Merced Deer Park 8.75% Napa Durham 8.25% Butte El Portal 8.75% Mariposa Del Kern 8.25% Kern Dutch Flat 8.25% Placer El Segundo* 9.75% Los Angeles El Sobrante 9.25% Contra Costa (Bakersfield') El Toro 8.75% Orange Del Mar Heights 8.75% San Luis Obispo (Lake Forest? (Morro Bay? County Total County Rate EI Toro M.C.A.S. 8.75% Orange Del Mar' 8.75% San Diego El Verano 9.00% Sonoma Del Monte Park 8.25% Monterey El Dorado+ 8.25% El Viejo 8.375% Stanislaus (Monterey? Location Rate County Eldridge 9.00% Sonoma Del Rey 8.975% Fresno Del Rey Oaks' 9.25% Monterey Eagle Mountain 8.75% Riverside Elizabeth Lake 9.75% Los Angeles Del Rosa 8.75% San Bernardino Eagle Rock 9.75% Los Angeles Elk 8.25% Mendocino Del Sur 9.75% Los Angeles (Los Angeles? Elk Creek 8.25% Glenn Delano' 9.25% Kern Eagleville 8.25% Modoc Elk Grove' 8.75% Sacramento Deleven 8.25% Colusa Eadimart 8.75% Tulare Elmira 8.375% Solano Delhi 8.25% Merced Earp 8.75% San Bernardino Elmwood 9.75% Alameda Denair 8.375% Stanislaus East Highlands 8.75% San Bernardino Elverta 8.75% Sacramento Denny 8.25% Trinity (Highland? Emerald Hills Riverside East Irvine 8.75% Orange (Redwood City? 9.25% San Mateo Desert Center Desrt Ce nter 8.78.75%8.75% San Diego (Irvine') Emeryville 9.75% Alameda Desert Hot 8.75% Riverside East Los 9.75% Los Angeles Emigrant Gap 8.25% Placer Springs' Angeles Empire 8.375% Stanislaus Di Giorgio 8.25% Kern East Lynwood 9.75% Los Angeles Encinitas" 8.75% San Diego Diablo 9.25% Contra Costa (Lynwood') Encino 9.75% Los Angeles Diamond Bar' 9.75% Los Angeles East Nicolaus 8.25% Sutter (Los Angeles? Diamond 8.25% El Dorado East Palo Afto' 9.25% San Mateo Enterprise 8.25% Shasta Springs East Porterville 8.75% Tulare Escalon' 8.75% San Joaquin Dillon Beach 9.00% Marin East Rancho Escondido' 8.75% San Diego Dinkey Creek 8.975% Fresno Dominguez 9.75% Los Angeles Esparto 8.25% Yolo East San Pedro 9.75% Los Angeles Essex 8.75% San Bernardino Discove 9.50% Tulare Etiwanda 8.75% San Bernardino Discovery Bay 9.25% Contra Costa (Los Angeles? Dixon' 8.375% Solano Eastgate 9.75% Los Angeles (Rancho Easton 8.975% Fresno Cucamonga? Dobbins 8.25% Yuba Etna' 8.25% Siskiyou IncoWa t d city +Certain dries wmn the county have a higl r Ma mte.Locate Ne city to fYM Me coned rate. Page 8 California City and County Sales and Use Tax Rates ■ April 2010 Cities, Counties, and Tax Rates Location Rate County Location Rate County Location Rate County Ettersburg 8.25% Humboldt Forest Glen 8.25% Trinity Georgetown 8.25% El Dorado Eureka' 8.50% Humboldt Forest Knolls 9.00% Merin Gerber 8.25% Tehama Exeter' 8.75% Tulare Forest Park 9.75% Los Angeles Geyserville 9.00% Sonoma Forest Ranch 8.25% Butte Giant Forest 8.75% Tulare Foresthill 8.25% Placer Gillman Hot 8.75% Riverside Forestville 9.00% Sonoma Springs County Total County Rate Forks of Salmon 8.25% Siskiyou Gilroy' 9.25% Santa Clara Fresno+ 8.975% Fort Bidwell 8.25% Modoc Glassell Park 9.75% Los Angeles Fort Bragg' 8.75% Mendocino (LOS Angelesy Location Rate County Fort Dick 8.25% Del Norte Glen Avon 8.75% Riverside Fair Oaks 8.75% Sacramento Fort Irwin 8.75% San Bernardino Glen Ellen 9.00% Sonoma Fairfax' 9.00% Madn Fort Jones' 8.25% Siskiyou Glenburn 8.25% Shasta Fairfield' 8.375% Solano Fort Ord 8.25% Monterey Glencoe 8.25% Calaveras Fairmount 9.25% Contra Costa (Seasideh Glendale' 9.75% Los Angeles Fall River Mills 8.25% Shasta Fort Seward 8.25% Humboldt Glendora' 9.75% Los Angeles Fallbrook 8.75% San Diego Fortuna" 8.25% Humboldt Glenhaven 8.25% Lake Fallbrook 8.75% San Diego Foster City' 9.25% San Mateo Glenn 8.25% Glenn Junction Fountain Valley' 8.75% Orange Glennville 8.25% Kern Fallen Leaf 8.25% El Dorado Fowler' 8.975% Fresno Gold River 8.75% Sacramento Fallon 9.00% Madn Frazier Park 8.25% Kern (Rancho Fancher 8.975% Fresno Freedom 9.00% Santa Cruz Cordovan Farmersville 9.25% Tulare Freeport 8.75% Sacramento Gold Run 8.25% Placer Farmington 8.75% San Joaquin Freestone 9.00% Sonoma Golden Hills 8.25% Kern Fawnskin 8.75% San Bernardino Fremont' 9.75% Alameda Goleta" 8.75% Santa Barbara Feather Falls 8.25% Butte French Camp 8.75% San Joaquin Gonzales' 8.25% Monterey Fellows 8.25% Kern French Gulch 8.25% Shasta Goodyears Bar 8.25% Sierra Felton 9.00% Santa Cruz Freshwater 8.25% Humboldt Gorman 9.75% Los Angeles Fenner 8.75% San Bernardino Fresno' 8.975% Fresno Goshen 8.75% Tulare Fernbridge 8.25% Humboldt Friant 8.975% Fresno Government 9.75% Alameda (Fortuna') Friendly Valley 9.75% Los Angeles Island Ferndale' 8.25% Humboldt (Santa Clarka7 Graeagle 8.25% Plumes Fiddletown 8.75% Amador Frontera 8.75% Riverside Granada Hills 9.75% Los Angeles Fields Landing 8.25% Humboldt Fullerton' 8.75% Orange (Los Angeles') Fig Garden 8.975% Fresno Fulton 9.00% Sonoma Grand Terrace' 8.75% San Bernardino Village(Fresno? Granite Bay 8.25% Placer Fillmore' 8.25% Ventura Gress Valley' 8.375% Nevada Finley 8.25% Lake Graton 9.00% Sonoma Firebaugh" 8.975% Fresno County Total County Rate Green Valley 9.75% Los Angeles Fish Camp 8.75% Mariposa Glenn 8.25% Green Valley 8.75% San Bernardino Five Points 8.975% Fresno Lake Flinn Springs 8.75% San Diego Location Rate County Greenacres 8.25% Kern Flimridge 9.75% Los Angeles Galt' 9.25% Sacramento Greenbrae 9.00% Marin (LaCanada/ Garberville 8.25% Humboldt (Larkspur') Flintridge7 Garden Grove' 8.75% Orange Greenfield' 8.25% Monterey Florence 9.75% Los Angeles Garden Valley 8.25% El Dorado Greenview 8.25% Siskiyou Floriston 8.375% Nevada Gardena" 9.7596 Los Angeles Greenville 8.25% Plumes Flournoy 8.25% Tehama Garay 8.75% Santa Barbara Greenwood 8.25% El Dorado Folsom" 8.75% Sacramento Garnet 8.75% Riverside Grenada 8.25% Siskiyou Fontana' 8.75% San Bernardino Gasquet 8.25% Del Norte Gridley' 8.25% Butte Foothill Ranch 8.75% Orange Gaviota 8.75% Santa Barbara Grimes 8.25% Colusa Forbestown 825% Butte Gazelle 8.25% Siskiyou Grizzly Flats 8.25% El Dorado Forest Falls 8.75% San Bernardino George A.F.B. 8.75% San Bernardino Groveland 8.25% Tuolumne Grover Beach" 8.75% San Luis Obispo 'Imorpo d city ♦Certain dries wkhin the county have a highertea mk.Local ft city b find the wmd rare. California City and County Sales and Use Tax Rates ■ April 2010 Page 9 Cities, Counties, and Tax Rates Location Rate County Location Rate County Guadalupe' 8.75% Santa Barbara Hidden Hills' 9.75% Los Angeles Gualala 8.25% Mendocino Highgrove 8.75% Riverside County Total County Rate Guasti(Ontariol 8.75% San Bernardino Highland Park 9.75% Los Angeles Imperial 8.75% Guatay 8.75% San Diego (Los Angeles') Inyo 8.75% Guerneville 9.00% Sonoma Highland' 8.75% San Bernardino Guinda 8.25% Yolo Highway 8.975% Fresno Location Rate County Gustine' 8.75% Merced City Idria 8.25% San Benito -©,- (Fresno') Ignaciio 8.75% Riverside Hillcrest 8.75% San Diego Ignacio 9.00% Morin (San Diego'l (Novato') County Total County Rate Hillsborough' 9.25% San Mateo Igo 8.25% Shasta Humboldt+ 8.25% Hillsdale 9.50% San Mateo Imola(Nepal 8.75% Napa (San Mateo') Imperial Beach' 8.75% San Diego Location Rate County Hilmar 8.25% Merced Imperial' 8.75% Imperial Hacienda 9.75% Los Angeles Hilt 8.25% Siskiyou Independence 8.75% Inyo Heights Hinkley 8.75% San Bernardino Indian Wells' 8.75% Riverside Halcyon 8.25% San Luis Obispo Hobergs 8.25% Lake Indio' 8.75% Riverside Half Moon Bay` 9.25% San Mateo Hollister' 9.25% San Benito Industry' 9.75% Los Angeles Hamilton A.F.B. 9.00% Martin Hollywood 9.75% Los Angeles Inglewood' 10.25% Los Angeles (Novato') (Los Angeles? Inverness 9.00% Martin Hamilton 8.25% Glenn Holmes 8.25% Humboldt Inyo 8.75% Inyo City Holt 8.75% San Joaquin Inyokern 8.25% Kem Hanford' 8.25% Kings Holtville` 8.75% Imperial lone' 8.75% Amador Happy Camp 8.25% Siskiyou Holy City 9.25% Santa Clara Iowa Hill 8.25% Placer Harbor City 9.75% Los Angeles Homeland 8.75% Riverside Irvine' 8.75% Orange (Los Angeles') Homestead 8.25% Kern Irwindale' 9.75% Los Angeles Harmony 8.25% San Luis Obispo Homestead 8.75% Riverside Isla Vista 8.75% Santa Barbara Harris 8.25% Humboldt Homewood 8.25% Placer Island Mountain 8.25% Trinity Hat Creek 8.25% Shasta Honby 9.75% Los Angeles Isleton' 8.75% Sacramento Hathaway Pines 8.25% Calaveras Honeydew 8.25% Humboldt Ivanhoe 8.75% Tulare Havasu Lake 8.75% San Bernardino Hood 8.75% Sacramento Ivanpah 8.75% San Bernardino Hawaiian 9.75% Los Angeles Hoops 8.25% Humboldt Gardens' Hope Valley 8.25% Alpine Hawthorne' 9.75% Los Angeles (Forest Camp) Hayfork 8.25% Trinity Hopland 8.2596 Mendocino Location Rate County Hayward' 9.75% Alameda Hornbrook 8.25% Siskiyou Hazard 9.75% Los Angeles Hornitos 8.75% Mariposa Jackson` 8.75% Amador Healdsburg• 9.00% Sonoma Home Creek 8.25% Siskiyou Jacumba 8.75% San Diego Heber 8.75% Imperial Horse Lake 8.25% Lassen Jamacha 8.75% San Diego Helena 8.25% Trinity Hughson" 8.375% Stanislaus Jamestown 8.25% Tuolumne Helendale 8.75% San Bernardino Hume 8.975% Fresno Jamul 8.75% San Diego Helm 8.975% Fresno Huntington 8.75% Orange Janesville 8.25% Lassen Hemet' 8.75% Riverside Huntington 8.75% Orange Jenner 9.00% Sonoma Herald 8.75% Sacramento Beach' Johannesburg 8.25% Kern Hercules' 9.25% Contra Costa Huntington Lake 8.975% Fresno Johnsondale 8.75% Tulare Herlong 825% Lassen Huntington 9.75% Los Angeles Johnstonville 8.25% Lassen Hermosa 9.75% Los Angeles Park' Johnstown 8.75% San Diego Beach' Huron' 8.975% Fresno Jolon 8.25% Monterey Herndon 8.975% Fresno Hyampom 8.25% Trinity Joshua Tree 8.75% San Bernardino Hyde Park 9.75% Los Angeles Julian 8.75% San Diego Hesperia' 8.75% San Bernardino 9 Heyer 9.75% Alameda (Los Angeles? Junction City 8.25% Trinity Hickman 8.375% Stanislaus Hydeaville 8.25% Humboldt June Lake 8.25% Mono Juniper 8.25% Lassen 'ecorwrated city +cetlein ciges wit in to county have a higher tax rate.Locate Me city le fiod the coma mte. Page 10 California City and County Sales and Use Tax Rates ■ April 2010 Cities, Counties, and Tax Rates Location Rate County Location Rate County La Canada- 9.75% Los Angeles Lakeview 9.75% Los Angeles County Total County Rate Flintridge' Terrace Kern+ 8.25% La Crescents 9.75% Los Angeles (Los Angeles] Kings 8.25% La Crests 8.25% Kern Lakewood' 9.75% Los Angeles Village Lamont 8.25% Kern Location Rate County LaGrange 8.375% Stanislaus Lancaster' 9.75% Los Angeles Kagel Canyon 9.75% Los Angeles La Habra 9.75% Los Angeles Landers 8.75% San Bernardino Kaweah 8.75% Tulare Heights' Landscape 9.75% Alameda Keddie 8.25% Plumes La Habra' 9.25% Orange Lang 9.75% Los Angeles Keeler 8.75% Inyo La Honda 9.25% San Mateo Larkfield 9.00% Sonoma Keene 8.25% Kern La Jolla 8.75% San Diego Larkspur' 9.00% Merin Kelsey 8.25% El Dorado (San Diego? Larwin Plaza 8.375% Solano Kelseyville 8.25% Lake La Mesa' 9.50% San Diego Lathrop' 8.75% San Joaquin Kelso 8.75% San Bernardino La Mirada' 9.75% Los Angeles Laton 8.975% Fresno Kensington 9.25% Contra Costa La Palma' 8.75% Orange Lawndale' 9.75% Los Angeles Kentfield 9.00% Merin La Porte 8.25% Plumes Laws 8.75% Inyo Kenwood 9.00% Sonoma La Puente' 9.75% Los Angeles Laytonville 8.25% Mendocino Kerman' 8.975% Fresno La Ouinta' 8.75% Riverside Le Grand 8.25% Merced Kernville 8.25% Kern La Salve Beach 9.00% Santa Cruz (Also Legrand) Keswick 8.25% Shasta La Verne' 9.75% Los Angeles Lebec 8.25% Kern Kettleman 8.25% Kings La Vina 9.75% Los Angeles Lee Vining 8.25% Mono City Ladera 9.25% San Mateo Leggett 8.25% Mendocino Keyes 8.375% Stanislaus Ladera Heights 9.75% Los Angeles Leisure World 8.75% Orange King City' 8.25% Monterey Ladera Ranch 8.75% Orange Leisure World 8.75% Orange Kings Beach 8.25% Placer Lafayette' 9.25% Contra Costa (Seal Beach') Kings Canyon 8.75% Tulare Laguna Beach' 8.75% Orange Lemon Grove 8.75% San Diego National Park Laguna Hills' 8.75% Orange Lemoncove 8.75% Tulare Kingsburg' 8.975% Fresno Laguna Niguel' 8.75% Orange Lemoore' 8.25% Kings Kinyon 8.25% Siskiyou Laguna Woods' 8.75% Orange Lennox 9.75% Los Angeles Kirkwood 8.25% Alpine Lagunitas 9.00% Marin Lenwood 8.75% San Bernardino Kit Carson 8.75% Amador Lake Alpine 8.25% Alpine Leona Valley 9.75% Los Angeles Klamath 8.25% Del Norte Lake Arrowhead 8.75% San Bernardino Leucadia 8.75% San Diego Klamath River 8.25% Siskiyou Lake City 8.25% Modoc (Encinitasy Kneeland 8.25% Humboldt Lake City 8.375% Nevada Lewiston 8.25% Trinity Knights Ferry 8.375% Stanislaus Lake Elsinore 8.75% Riverside Liberty Farms 8.375% Solano Knights Landing 8.25% Yolo Lake Forest' 8.75% Orange Likely 8.25% Modoc Knightsen 9.25% Contra Costa Lake Hughes 9.75% Los Angeles Lincoln Acres 8.75% San Diego Korbel 8.25% Humboldt Lake Isabella 8.25% Kern Lincoln Heights Korbel 9.00% Sonoma Lake 9.75% Los Angeles (Los Angeles? 9.75% Los Angeles Kyburz 8.25% El Dorado Los Angeles Lincoln Village 8.75% San Joaquin Lake Mary 8.25% Mono Lincoln' 8.25% Placer Lake 8.75% San Diego Linda 8.25% Yuba San Marcos Linden 8.75% San Joaquin County Total County Rate Lake Shastina 8.25% Siskiyou Undsay' 8.75% Tulare Lake Sherwood 8.25% Ventura Unnell 8.75% Tulare Lake+ 8.25% Lakehead 8.25% Shasta Litchfield 8.25% Lassen Lassen 8.25% Lakeport' 8.75% Lake Little Lake 8.75% Inyo Los Angeles+ 9.75% Lakeshore 8.975% Fresno Little Norway 8.25% El Dorado Location Rate County Lakeside 8.75% San Diego Little Valley 8.25% Lassen LA.Airport 9.75% Los Angeles Lakeview 8.75% Riverside Littleriver 8.25% Mendocino Uttlerock(Also 9.75% Los Angeles (Los Angeles? Little Rock) 'Incorporated cIty +CerW n cities wmin the county have a higher tax rata Locate the city to An the coned rate. California City and County Sales and Use Tax Rates ■ April 2010 Page 11 Cities, Counties, and Tax Rates Location Rate County Location Rate County Live Oak' 8.25% Sutter McArthur 8.25% Shasta Livermore' 9.75% Alameda County Total County Rate McClellan 8.75% Sacramento Livingston' 8.25% Merced Madera 875% McCloud 8.25% Siskiyou . Llano 9.75% Los Angeles McFarland' 8.25% Kern Loch Lomond 8.25% Lake Merin+ 9.00% McKinleyville 8.25% Humboldt Locke 8.75% Sacramento Mariposa 8.75% McKittrick 8.25% Kern Lockeford 6.75% San Joaquin Mendocino+ 8.25% Mead Valley 8.75% Riverside Lockheed 9.00% Santa Cruz Merced+ 8.25% Meadow Valley 8.25% Plumes Modoc 8 Lockwood 8.25% Monterey .25% Meadow Vista 8.25% Placer Lodi' 8.75% San Joaquin Mono+ 8.25% Meadowbrook 8.75% Riverside Loleta 8.25% Humboldt Monterey+ 8.25% Mecca 8.75% Riverside Loma Linda' 8.75% San Bernardino Location Rate County Meeks Bay 8.25% El Dorado Loma Mar 9.25% San Mateo Macdoel 8.25% Siskiyou Meiners Oaks 8.25% Ventura Loma Rica 8.25% Yuba Maclay 9.75% Los Angeles Mendocino 8.25% Mendocino Lomita' 9.75% Los Angeles Mendota' 8.975% Fresno Mad River 8.25% Trinity Lompoc' 8.75% Santa Barbara Madeline 8.25% Lassen Menifee 8.75% Riverside London 8.75% Tulare Madera' 8.75% Madera Menlo Park` 9.25% San Mateo Lone Pine 8.75% Inyo Madison 8.25% Yolo Mentone 8.75% San Bernardino Long Barn 8.25% Tuolumne Magalia 8.25% Butte Merced' 8.75% Merced Long Beach' 9.75% Los Angeles Malaga 8.975% Fresno Meridian 8.25% Sutter Longview 9.75% Los Angeles Malibu' 9.75% Los Angeles Mettler 8.25% Kern Lookout 8.25% Modoc Mammoth 8.75% Mono Meyers 8.25% El Dorado Loomis' 8.25% Placer Lakes` Middletown 8.25% Lake Loma Estates 9.25% Santa Clara Midland 8.75% Riverside Manhattan 9.75% Los Angeles Los Alamitos' 8.75% Orange Beach' Midpines 8.75% Mariposa Los Alamos 8.75% Santa Barbara Manteca` 9.25% San Joaquin Midway 8.75% Orange Los Altos Hills' 9.25% Santa Clara Manton 8.25% Tehama city Los Affos` 9.25% Santa Clara Manzanita Lake 8.25% Shasta Mifford 8.25% Lassen Los Angeles' 9.75% Los Angeles Mill Creek 8.25% Tehama Mar Vista 9.75% Los Angeles Los Banos' 8.75% Merced Mill Valley' 9.00% Marin Marceline 9.75% Los Angeles Los Gatos' 9.25% Santa Clara Millbrae` 9.25% San Mateo March A.F.B. 8.75% Riverside Los Molinos 8.25% Tehama Millville 8.25% Shasta Mare Island 6.375% Solana Los Nietos 9.759'o Los Angeles aM ory Milpitas' 9.25% Santa Clara Los Chivas 6.75% Santa Barbara aricricopa` 6.25% Kern Mineral 8.25% Tehama Los Osos 8.25% San Luis Obispo Merin City 9.00% Merin Mineral King 8.75% Tulare Los Padres 8.25% San Luis Obispo Mint Canyon 9.75% Los Angeles Marina Del Rey 9.75% Los Angeles Los Serranos 8.75% San Bernardino Marina` 8.25% Monterey Mira Loma 8.75% Riverside (Chino Hills') Mira Vista 9.25% Contra Costa Marine Corps 8.75% San Bernardino Lost Hills 8.25% Kern (T Miracle 8.25% Kern Lost Lake 8.75% Riverside Palms) ine Hot Springs Lotus 8.25% El Dorado Mariner 8.75% Orange Miramar 8.75% San Diego Lower Lake 8.25% Lake (San Diego r) Mariposa 8.75% Mariposa Loyaffon' 8.25% Sierra Miramonte 8.975% Fresno Markleeville 8.25% Alpine Lucerne 8.25% Lake Marsh Manor 9.25% San Mateo Miranda 8.25% Humboldt Lucerne Valley 8.75% San Bernardino Marshall 9.00% Merin Mission Hills 9.75% Los Angeles Lucia 8.25% Monterey (Los Angeles') Martell 8.75% Amador Ludlow 8.75% San Bernardino Martinez' 9.25% Contra Costa Mission Viejo' 8.75% Orange Lugo 9.75% Los Angeles Marysville' 8.25% Yuba Ml-Wuk Village 8.25% Tuolumne Lynwood' 9.75% Los Angeles Mather 8.25% Tuolumne Moccasin 8.25% Tuolumne Lytle Creek 8.75% San Bernardino Mather 8.75% Sacramento Modesto' 8.375% Stanislaus Maxwell 8.25% Colusa Moffett Field 9.25% Santa Clara Maywood' 9.75% Los Angeles Mojave 8.25% Kern Mokelumne Hill 8.25% Calaveras 'IncorpmUd city +C Ann cities within the cauray have a higher tax rate.Locate ere city to fin the cono rate. Page 12 California City and County Sales and Use Tax Rates ■ April 2010 Cities, Counties, and Tax Rates Location Rate County Location Rate County Monarch Beach 8.75% Orange Nice 8.25% Lake (Dana Pointry County Total County Rate Nicolaus 8.25% Sutter Moneta 9.75% Los Angeles Niland 8.75% Imperial Mono 8.975% Fresno Napa 8.75% Nipomo 8.25% San Luis Obispo Hot Springs Nevada+ 8.375% s Nipton 8.75% San Bernardino P 9 Mono Lake 8.25% Mono Location Rate County Norco' 8.75% Riverside Monolith 8.25% Kern Napa' 8.75% Napa Norden 8.375% Nevada Monrovia' 9.75% Los Angeles Naples 9.75% Los Angeles North Edwards 8.25% Kern Monte Vista 9.25% Santa Clara Nashville 8.25% El Dorado North Fork 8.75% Madera Montague' 8.25% Siskiyou National 9.75% San Diego North Gardena 9.75% Los Angeles Montalvo 8.25% Ventura City. North Highlands 8.75% Sacramento (Venturary Naval(Port 8.75% Ventura North Hills 9.75% Los Angeles Montane 9.25% San Mateo Huenemery (Los Angeles') Montclair' 9.00% San Bernardino Naval 8.75% San Diego North Hollywood 9.75% Los Angeles Monte Rio 9.00% Sonoma (San Diegory (Los Angeles') Monte Seri 9.25% Santa Clara Naval Air Station 9.75% Alameda North Palm 8.75% Riverside Montebello' 9.75% Los Angeles Springs (Alamedary Montecito 8.75% Santa Barbara North San Juan 8.375% Nevada Naval Air Station 8.75% San Diego Monterey Bay 9.00% Santa Cruz (Coronadory North Shore 8.75% Riverside Academy Naval Air Station 8.25% Kings Northridge 9.75% Los Angeles Monterey Park' 9.75% Los Angeles (Le (Los Angelesry Hospital Monterey' 8.25% Monterey Naval al Hospital 9.75% Alameda Norton A.F.B. 9.00% San Bernardino Montgomery 8.25% Shasta (San (Oakland') Creek Naval Hospital 8.75% San Diego Bernardino') ! Montrose 9.75% Los Angeles (San Diegory Norwalk' 9.75% Los Angeles Mooney 8.75% Tulare Novato' 9.00% Merin Naval Supply 9.75% Alameda Moonridge 6.75% San Bernardino Center Nubieber 8.25% Lassen Moorpark' 8.25% Ventura (Oaklandry Nuevo 8.75% Riverside Moraga' 9.25% Contra Costa Naval Training 8.75% San Diego Nyeland Acres 8.25% Ventura Moreno Valley' 8.75% Riverside Center Morgan Hill' 9.25% Santa Clara (San Diego') e Morongo Valley 8.75% San Bernardino Navarro 8.25% Mendocino Morro Bay' 8.75% San Luis Obispo Needles' 8.75% San Bernardino County Total County Rate Morro Plaza 8.25% San Luis Obispo Nelson 8.25% Butte Orange+ 8.75% Moss Beach 9.25% San Mateo Nevada 8.875% Nevada Moss Landing 8.25% Monterey City. Location Rate County Mount Hamilton 9.25% Santa Clara New Almaden 9.25% Santa Clara Oak Park 8.25% Ventura Mount Hebron 8.25% Siskiyou New Cuyama 8.75% Santa Barbara Oak Run 8.25% Shasta Mount Hermon 9.00% Santa Cruz New Idria 8.25% San Benito Oak View 8.25% Ventura Mount Laguna 8.75% San Diego Newark' 9.75% Alameda Oakdale' 8.375% Stanislaus Mount Shasta' 8.25% Siskiyou Newberry 8.75% San Bernardino Oakhurst 8.75% Madera Mount Wilson 9.75% Los Angeles Newberry 8.75% San Bernardino Oakland' 9.75% Alameda Mountain Center8.75% Riverside Springs Oakley' 9.25% Contra Costa Mountain Mesa 8.25% Kern Newbury Park 8.25% Ventura Oakville 8.75% Napa Mountain Pass 8.75% San Bernardino (Thousand Oasis 8.75% Riverside Mountain Ranch 8.25% Calaveras Oaksry Oban 9.75% Los Angeles Mountain View' 9.25% Santa Clara Newcastle 8.25% Placer O'Brien 8.25% Shasta Mt.Aukum 8.25% El Dorado Newhall(Santa 9.75% Los Angeles Occidental 9.00% Sonoma Mt. Badly 8.75% San Bernardino Claritary Oceano 8.25% San Luis Obispo Murphys 8.25% Calaveras Newman' 8.375% Stanislaus Oceanside 8.75% San Diego Murrieta' 8.75% Riverside Newport Beach' 8.75% Orange Ocotillo 8.75% Imperial Muscoy 8.75% San Bernardino Nicasio 9.00% Martin Ocotillo Wells 8.75% San Diego Myers Flat 8.25% Humboldt .Incorporeletl city +Cermin cities within th county have a highertex rate.Locale the city to find the correct rate. California City and County Sales and Use Tax Rates ■ Apri12010 Page 13 Cities, Counties, and Tax Rates Location Rate County Location Rate County Location Rate County Oildale 8.25% Kern Pajaro 8.25% Monterey Philo 8.25% Mendocino Ojai" 8.25% Ventura Pala 8.75% San Diego Pico Rivera' 10.75% Los Angeles Olancha 8.75% Inyo Palermo 8.25% Butte Piedmont' 9.75% Alameda Old Station 8.25% Shasta Pallett 9.75% Los Angeles Piedra 8.975% Fresno Olema 9.00% Merin Palm City 8.75% Riverside Piercy 8.25% Mendocino Olinda 8.25% Shasta Palm City 8.75% San Diego Pilot Hill 8.25% El Dorado Olive View 9.75% Los Angeles (San Diegol Pine Grove 8.75% Amador (Los Angeles? Palm Desert' 8.75% Riverside Pine Valley 8.75% San Diego Olivehurst 8.25% Yuba Palm Springs' 8.75% Riverside Pinecrest 8.25% Tuolumne Olivenhain 8.75% San Diego Palmdale' 9.75% Los Angeles Pinedale 8.975% Fresno (Encinitas') Palo Alto' 9.25% Santa Clara (Fresno') Olympic Valley 8.25% Placer Palo Cedro 8.25% Shasta Pinetree 9.75% Los Angeles Omo Ranch 8.25% El Dorado Palo Verde 8.75% Imperial Pinole 9.75% Contra Costa O'Neals 8.75% Madera Palomar 8.75% San Diego Pinon Hills 8.75% San Bernardino Ono 8.25% Shasta Mountain Pioneer 8.75% Amador Ontario' 8.75% San Bernardino Palos Verdes 9.75% Los Angeles Pioneartown 8.75% San Bernardino Onyx 8.25% Kern Estates' Piru 8.25% Ventura Opal Cliffs 9.00% Santa Cruz Palos Verdes/ 9.75% Los Angeles Pismo Beach' 8.75% San Luis Obispo Orange Cove' 8.975% Fresno Peninsula Pittsburg' 9.25% Contra Costa Orange' 8.75% Orange Panorama 9.75% Los Angeles Pixley 8.75% Tulare Orangevale 8.75% Sacramento City Placentia' 8.75% Orange Orcutt 8.75% Santa Barbara (Los Angeles? Placerville 8.50% El Dorado Ordbend 8.25% Glenn Paradise 8.25% Butte Plainview 8.75% Tulare Oregon House 8.25% Yuba Paramount' 9.75% Los Angeles Planada 8.25% Merced Orick 8.25% Humboldt Parker Dam 8.75% San Bernardino Plaster City 8.75% Imperial Orinda' 9.25% Contra Costa Parkfield 8.25% Monterey Platina 8.25% Shasta Orland' 8.25% Glenn Padier' 8.975% Fresno Playa Del Rey 9.75% Los Angeles Orleans 8.25% Humboldt Pasadena' 9.75% Los Angeles (LOS Angeles? Oro Grande 8.75% San Bernardino Paskenta 8.25% Tehama Pleasant Grove 8.25% Sutter Orosi 8.75% Tulare Paso Robles' 8.25% San Luis Obispo Pleasant Hilr 9.25% Contra Costa Oroville" 8.25% Butte Patterson' 8.375% Stanislaus Pleasanton' 9.75% Alameda Otay 8.75% San Diego Patton 8.75% San Bernardino Plymouth' 8.75% Amador (Chula Vista') Pauma Valley 8.75% San Diego Point Arena' 8.75% Mendocino Oxnard' 8.75% Ventura Paynes Creek 8.25% Tehama Point Mugu 8.25% Ventura Pearblossom 9.75% Los Angeles Point Pittsburg 9.25% Contra Costa Pearland 9.75% Los Angeles (Pittsburgl Pebble Beach 8.25% Monterey Point Reyes 9.00% Mann County Total County Rate Pedley 8.75% Riverside Station Placer 8.25% Peninsula 8.25% Plumes Pollock Pines 8.25% El Dorado Plumes 8.25% Village Pomona' 9.75% Los Angeles Penn Valley 8.375% Nevada Pond 8.25% Kern Location Rate County Penngrove 9.00% Sonoma Pondosa 8.25% Siskiyou Pacheco 9.25% Contra Costa Penryn 8.25% Placer Pope Valley 8.75% Napa Pacific Grove 9.25% Monterey Pepperwood 8.25% Humboldt Poplar 8.75% Tulare Pacific House 8.25% El Dorado Permanente 9.25% Santa Clara Port Costa 9.25% Contra Costa Pacific 9.75% Los Angeles Perris' 8.75% Riverside Port Hueneme' 8.75% Ventura Palisades Perry(Whittiery 9.75% Los Angeles Porter Ranch 9.75% Los Angeles (Los Angeles? Pescadero 9.25% San Mateo (Los Angelesl Pacifica` 9.25% San Mateo Petaluma' 9.00% Sonoma Porterville' 9.25% Tulare Pacoima 9.75% Los Angeles Petrolia 8.25% Humboldt Portola Valley' 9.25% San Mateo (LOS Angeles? Phelan 8.75% San Bernardino Portola' 8.25% Plumes Paicines 8.25% San Benito Phillipsville 8.25% Humboldt Inver Mted city a Cerleln dues within are wumy have a hiomrtev mte.Lwele the city b li ere wmd rare. Page 14 California City and County Sales and Use Tax Rates ■ April 2010 Cities, Counties, and Tax Rates Location Rate County Location Rate County Location Rate County Portuguese 9.75% Los Angeles Rancho Mirage` 8.75% Riverside Rio Linda 8.75% Sacramento Bend(Rancho Rancho Murieta 8.75% Sacramento Rio Nido 9.00% Sonoma Palos Verdes? Rancho Palos 9.75% Los Angeles Rio Oso 8.25% Sutter Posey 8.75% Tulare Verdes* Rio Vista' 8.375% Solano Potrero 8.75% San Diego Rancho Park 9.75% Los Angeles Ripley 8.75% Riverside Potter Valley 8.25% Mendocino (LOS Angeles? Ripon' 8.75% San Joaquin Poway' 8.75% San Diego Rancho 8.75% San Diego River Pines 8.75% Amador Prather 8.975% Fresno Santa Fe Riverbank' 8.375% Stanislaus Presidio(San 9.50% San Francisco Rancho Santa 8.75% Orange Riverdale 8.975% Fresno Francisco? Margarita' Riverside 8.75% Riverside Presidio of 8.25% Monterey Randsburg 8.25% Kern Robbins 8.25% Sutter Monterey Ravendale 8.25% Lessen Rocklin' 8.25% Placer (Monterey') Ravenna 9.75% Los Angeles Rodeo 9.25% Contra Costa Priest Valley 8.25% Monterey Raymond 8.75% Madera Rohnert Pads" 9.00% Sonoma Princeton 8.25% Colusa Red Bluff' 8.25% Tehama Rohnerville 8.25% Humboldt Proberta 8.25% Tehama Red Mountain 8.75% San Bernardino Rolling Hills 9.75% Los Angeles Project City 8.25% Shasta Red Top 8.75% Madera Estates` Prunedale 8.25% Monterey Redcrest 8.25% Humboldt Rolling Hills` 9.75% Los Angeles Pt. Dome 9.75% Los Angeles Redding' 8.25% Shasta Romoland 8.75% Riverside Pulga 8.25% Butte Redlands' 8.75% San Bernardino Rosamond 8.25% Kern Pumpkin Center 8.25% Kern Redondo 9.75% Los Angeles Rose Bowl 9.75% Los Angeles Beach' (Pasadenah Redway 8.25% Humboldt Roseland 9.00% Sonoma Redwood City' 9.25% San Mateo Rosemead' 9.75% Los Angeles -° Location Rate County Redwood 9.25% Santa Clara Roseville' 8.25% Placer Quail Valley 8.75% Riverside Estates Ross' 9.00% Marin Quartz Hill 9.75% Los Angeles Redwood Valley 8.25% Mendocino Rossmoor 8.75% Orange Quincy 8.25% Plumes Reedley' 9.475% Fresno Rough and 8.375% Nevada Refugio Beach 8.75% Santa Barbara Ready Repress 8.75% Sacramento Round Mountain 6.25% Shasta (Folsom Prison) Rowland 9.75% Los Angeles County Total County Rate Requa 8.25% Del Norte Heights Rescue 8.25% El Dorado Royal Oaks 8.25% Monterey Riverside 8.75% Reseda 9.75% Los Angeles Rubidoux 8.75% Riverside Location Rate County (Los Angeles? Ruby Valley 8.25% Humboldt Rackerby 8.25% Yuba Rheem Valley 9.25% Contra Costa Rumsey 8.25% Yolo (Moraga7 Running Springs 8.75% San Bernardino Rail Road Flat 8.25% Calaveras Rialto' 8.75% San Bernardino Ruth 8.25% Trinity Rainbow 8.75% San Diego Richardson 8.25% Humboldt Rutherford 8.75% Napa Raisin City 8.975% Fresno Grove Ryde 8.75% Sacramento Ramona 8.75% San Diego Richardson 8.25% Butte Ranchfta 8.75% San Diego Springs Rancho 8.75% San Diego Richfield 8.25% Tehama Bernardo Richgrove 8.75% Tulare County Total County Rate (San Diegoh Richmond' 9.75% Contra Costa Rancho 8.75% Riverside Richvale 8.25% Butte Sacramento+ 8.75% California RidgecresY 8.25% Kern San Benito+ 8.25% Rancho 8.754'. Sacramento San 8.75% Cordova' Rimforest 8.75% San Bernardino Bernardino+ Rancho 8.75% San Bernardino (Los An geles? 9.75% Los Angeles San Diego+ 8.75% Cucamonga' (Los An San Francisco 9.50% Rancho 9.75% Los Angeles Rio Bravo 8.25% Kern San Joaquin+ 8.75% g Rio Dell' 8.25% Humboldt Dominguez (Bakersfield? San Luis Obispo+ 8.25% 'Incorp u led dry +Cann dries within the muMy have a higher tax rah.Lomh ft city h fiM the coned mte. California City and County Sales and Use Tax Rates ■ April 2010 Page 15 Cities, Counties, and Tax Rates County Total County Rate Location Rate County Location Rate County San Mateo+ 9.25% San Marcos' 8.75% San Diego Seeley 8.75% Imperial Santa Barbara 8.75% San Marino' 9.75% Los Angeles Salad Valley 8.25% Siskiyou Santa Clara+ 9.25% San Martin 9.25% Santa Clara Selby 9.25% Contra Costa Santa Cruz+ 9.00% San Mateo' 9.50% San Mateo Selma' 9.475% Fresno Shasta 8.25% San Miguel 8.25% San Luis Obispo Seminole Hot 9.75% Los Angeles Sierra 8.25% San Pablo' 9.25% Contra Costa Springs Siskiyou 8.25% San Pedro 9.75% Los Angeles Sepulveda 9.75% Los Angeles Solano 8.375% (Los Angeles') (Los Angeles') Sonoma+ 9.00% San Quentin 9.00% Merin Sequoia 8.75% Tulare Stanislaus+ 8.375% San Rafael* 9.50% Marin National Park Sutter 8.25% San Ramon' 9.25% Contra Costa Shaffer' 8.25% Kern Location Rate County San Simeon 8.25% San Luis Obispo Shandon 8.25% San Luis Obispo San Tomas 9.25% Santa Clara - Sharpe Army 8.75% San Joaquin Sacramento` 8.75% Sacramento San Ysidro 8.75% San Diego Depot Saint Helena` 8.75% Napa (San Diego') Shasta 8.25% Shasta Salida 8.375% Stanislaus Sand City' 8.75% Monterey Shasta Lake' 8.25% Shasta Salinas' 8.75% Monterey Sanger' 9.725% Fresno Shaver Lake 8.975% Fresno Salton City 8.75% Imperial Santa Ana' 8.75% Orange Sheepranch 8.25% Calaveras Salyer 8.25% Trinity Santa Barbara' 8.75% Santa Barbara Shell Beach 8.75% San Luis Obispo Samoa 8.25% Humboldt Santa Clara' 9.25% Santa Clara (Pismo Beach? San Andreas 8.25% Calaveras Santa Clarita' 9.75% Los Angeles Sheridan 8.25% Placer San Anselmo' 9.00% Marin Santa Cruz' 9.50% Santa Cruz Sherman Island 8.75% Sacramento San Ardo 8.25% Monterey Santa Fe 9.75% Los Angeles Sherman Oaks 9.75% Los Angeles San Benito 8.25% San Benito Springs' (Los Angelesh San 9.00% San Bernardino Santa Margarita 8.25% San Luis Obispo Sherwin Plaza 8.25% Mono Bernardino' Santa Maria' 8.75% Santa Barbara Shingle Springs 8.25% El Dorado San Bruno' 9.25% San Mateo Santa Monica' 9.75% Los Angeles Shingletown 8.25% Shasta San Carlos" 9.25% San Mateo Santa Nella 8.25% Merced Shively 8.25% Humboldt San Clemente* 8.75% Orange Santa Paula' 8.25% Ventura Shore Acres 9.25% Contra Costa San Diego' 8.75% San Diego Santa Rita Park 8.25% Merced Shoshone 8.75% Inyo San Dimas' 9.75% Los Angeles Santa Rosa' 9.25% Sonoma Sierra City 8.25% Sierra San Fernando' 9.75% Los Angeles Santa Rosa 8.25% Ventura Sierra Madre 9.75% Los Angeles San Francisco' 9.50% San Francisco Valley Sierraville 8.25% Sierra San Gabriel' 9.75% Los Angeles Santa Ynez 8.75% Santa Barbara Signal Hill' 9.75% Los Angeles San Geronimo 9.00% Marin Santa Ysabel 8.75% San Diego Silver Lake 8.75% Amador San Gregorio 9.25% San Mateo Santee' 8.75% San Diego Silverado 8.75% Orange San Jacinto' 8.75% Riverside Saratoga• 9.25% Santa Clara Canyon San Joaquin' 8.975% Fresno Saticoy 8.25% Ventura Simi Valley' 8.25% Ventura San Jose' 9.25% Santa Clara Bartley 8.25% Sierra Sisquoc 8.75% Santa Barbara San Juan 9.00% San Benito Saugus(Santa 9.75% Los Angeles Sites 8.25% Colusa Bautista' Clarita') Sky Valley 8.75% Riverside San Juan 8.75% Orange Sausalito' 9.00% Merin Skyforest 8.75% San Bernardino Capistrano' Sawtelle 9.75% Los Angeles Sleepy Valley 9.75% Los Angeles San Juan Pima 8.75% Orange (Los Angeles? Sloat 8.25% Plumes (San Juan Sawyers Bar 8.25% Siskiyou Sloughhouse 8.75% Sacramento Capistrano) Scotia 8.25% Humboldt Smartville 8.25% Yuba San Leandro' 9.75% Alameda Scott Bar 8.25% Siskiyou Smith River 8.25% Del Norte San Lorenzo 9.75% Alameda Scotts Valley' 9.25% Santa Cruz Smith9at 8.25% El Dorado San Lucas 8.25% Monterey Sea Ranch 9.00% Sonoma Smoke Tree 8.75% San Bernardino San Luis 8.75% San Luis Obispo Seabright 9.00% Santa Cruz (Palm Springs? Obispo' Seal Beach' 8.75% Orange Snelling 8.25% Merced San Luis Rey 8.75% San Diego Seaside' 9.25% Monterey Soda Springs 8.375% Nevada (Oceanside') Sebastopol' 9.25% Sonoma Solana Beach' 8.75% San Diego Incorporated city .Certain titles within Me county have a higher w rate.Locate to city oo Potl Me wrrod rate. Page 16 California City and County Sales and Use Tax Rates ■ April 2010 Cities, Counties, and Tax Rates Location Rate County Location Rate County Location Rate County Soledad' 8.25% Monterey Strawberry 8.25% Yuba Tahoma 8.25% Placer Solemint 9.75% Los Angeles Valley Talmage 8.25% Mendocino Solvang' 8.75% Santa Barbara Studio City 9.75% Los Angeles Tama](San 9.00% Morin Somerset 8.25% El Dorado (Los Angeles') Quentin) Somes Bar 8.25% Siskiyou Sugarloaf 8.75% San Bernardino Tarzana 9.75% Los Angeles Somis 8.25% Ventura Suisun 8.375% Solano (Los Angelesh Sonoma' 9.00% Sonoma City' Taylorsville 8.25% Plumes Sonora' 8.75% Tuolumne Sulphur Springs 9.75% Los Angeles Tecate 8.75% San Diego Soquel 9.00% Santa Cruz Sultana 8.75% Tulare Tecopa 8.75% Inyo Soulsbyville 8.25% Tuolumne Summer]and 8.75% Santa Barbara Tehachapi' 8.25% Kern South 8.25% Merced Summit 8.75% San Bernardino Tehama' 8.25% Tehama Dos Palos Summit 8.25% Shasta Temecula' 8.75% Riverside South EI Monte 9.75% Los Angeles City Temple 9.75% Los Angeles South Fork 8.25% Humboldt Sun City 8.75% Riverside City' South Gate' 10.75% Los Angeles Sun Valley 9.75% Los Angeles Templeton 8.25% San Luis Obispo South Laguna 8.75% Orange (Los Angeles') Terminal Island 9.75% Los Angeles (Laguna Beach? Sunland 9.75% Los Angeles (Los Angeles') South Lake 8.75% El Dorado (Los Angeles? Termo 8.25% Lassen Tahoe' Sunnymead 8.75% Riverside Two Bella 8.75% Tulare South 9.75% Los Angeles (Moreno Thermal 8.75% Riverside Pasadena' Valley') Thornton 8.75% San Joaquin South San 9.25% San Mateo Sunnyside 8.75% San Diego Thousand Oaks'8.25% Ventura Francisco' Sunnyvale 9.25% Santa Clara Thousand 8.75% Riverside South Shore 9.75% Alameda Sunol 9.75% Alameda Palms i (Alameda? Sunset Beach 8.75% Orange Three Rivers 8.75% Tulare South Whittier 9.75% Los Angeles Sunset Whitney 8.25% Placer Tiburon' 9.00% Morin Spanish Flat 8.75% Napa Ranch Tierra Del Sol 8.75% San Diego Spreckels 8.25% Monterey Surfside 8.75% Orange Tiemasanta 8.75% San Diego Spring Garden 8.25% Plumes (Seal Beach? (San Diego? Spring Valley 8.75% San Diego Susanville' 8.25% Lassen Tipton 8.75% Tulare Springville 8.75% Tulare Sutter 8.25% Sutter Tollhouse 8.975% Fresno Spyrock 8.25% Mendocino Sutter Creek` 8.75% Amador Toluca Lake 9.75% Los Angeles Squaw Valley 8.975% Fresno Swell Meadows 8.75% Inyo (Los Angeles') St. Helena' 8.75% Napa (Bishop? Tomales 9.00% Morin Standard 8.25% Tuolumne Sylmar 9.75% Los Angeles Toms Place 8.25% Mono Standish 8.25% Lassen (Los Angeles`) Topanga 9.75% Los Angeles Stanford 9.25% Santa Clara (Los Angeles') Stanislaus 8.25% Tuolumne Topanga Park 9.75% Los Angeles Stanton' 8.75% Orange (Los Angeles') Steele Park 8.75% Napa County Total County Rate Topaz 8.25% Mono Stevenson 9.75% Los Angeles Thhrma 8.25% Torrance' 9.75% Los Angeles Ranch T Town Center 8.75% Tulare Tulare 8.25% Stevinson 8.25% Merced Tulare+ 8.75% Trsbuco Canyon 8.75% Orange Stewarts Point 9.00% Sonoma Tuolumne+ 8.25% Tracy' 8.75% San Joaquin Stinson Beach 9.00% Morin Tranquillity 8.975% Fresno Stirling City 8.25% Butte Location Rate County Traver 8.75% Tulare Stockton' 9.00% San Joaquin Taft' 8.25% Kern Travis A.F.B. 8.375% Solano Stonyford 8.25% Colusa Tagus Ranch 8.75% Tulare (Fairfield') Storrie 8.25% Plumes Tahoe City 8.25% Placer Tres Pinos 8.25% San Benito Stratford 8.25% Kings Tahoe Paradise 8.25% El Dorado Trinidad' 9.00% Humboldt Strathmore 8.75% Tulare Tahoe Valley 8.25% El Dorado Trinity Center 8.25% Trinity Strawberry 8.25% Tuolumne Tahoe Vista 8.25% Placer Trona 8.75% San Bernardino Trowbridge 8.25% Sutter Incorporated city +CeaMn gties wuhin tM muMy haw a higher t"mte.Locate ft qty b find ft correct rate. Califiornia City and County Sales and Use Tax Rates ■ April 2010 Page 17 Cities, Counties, and Tax Rates Location Rate County Location Rate County Location Rate County Truckee' 8.875% Nevada Valley Center 8.75% San Diego Wasco' 8.25% Kern Tujunga 9.75% Los Angeles Valley Fair 9.25% Santa Clara Waterford' 8.375% Stanislaus (Los Angeles? Valley Ford 9.00% Sonoma Watsonville' 9.25% Santa Cruz Tulare' 9.25% Tulare Valley Home 8.375% Stanislaus Watts 9.75% Los Angeles Tulelake' 8.25% Siskiyou Valley Springs 8.25% Calaveras Waukena 8.75% Tulare Tuolumne 8.25% Tuolumne Valley Village 9.75% Los Angeles Wawona 8.75% Mariposa Tuolumne 8.75% Mariposa Valyermo 9.75% Los Angeles Weaverville 8.25% Trinity Meadows Van Nuys 9.75% Los Angeles Weed' 8.25% Siskiyou Tupman 8.25% Kern (LOS Angeles? Weimar 8.25% Placer Turlock' 8.375% Stanislaus Vandenberg 8.75% Santa Barbara Weldon 8.25% Kern Tustin' 8.75% Orange A.F.B. Wendel 8.25% Lassen Twain 8.25% Plumes Vasquez Rocks 9.75% Los Angeles Weott 8.25% Humboldt Twain Harte 8.25% Tuolumne Venice 9.75% Los Angeles West Covina' 9.75% Los Angeles Twentynine 8.75% San Bernardino (Los Angeles? West Hills 9.75% Los Angeles Palms' Ventucopa 8.75% Santa Barbara (Los Angeles') Twin Bridges 8.25% El Dorado Ventura' 8.25% Ventura West 9.75% Los Angeles Twin Peaks 8.75% San Bernardino Verdugo 9.75% Los Angeles Hollywood" Two Rock Coast 9.00% Sonoma City West Los 9.75% Los Angeles Guard Station (Glendale? Angeles(Los Angeles? Vernalis 8.75% San Joaquin West Pittsburg 9.25% Contra Costa Vernon' 9.75% Los Angeles West Point 8.25% Calaveras Veteran's 9.75% Los Angeles West 8.75% Yolo Location Rate County Hospital Sacramento' U.S. Naval 8.25% Monterey (Los Angelesy Westchester 9.75% Los Angeles Postgrad Victor 8.75% San Joaquin (Los Angelesy School Victorville' 8.75% San Bernardino Westend 8.75% San Bernardino (Monterey? Vidal 8.75% San Bernardino Westhaven 8.25% Humboldt Ukiah' 8.75% Mendocino View Park 9.75% Los Angeles Westlake 9.75% Los Angeles Union City' 9.75% Alameda Villa Grande 9.00% Sonoma (Los Angeles? Universal 9.75% Los Angeles Villa Park' 8.75% Orange Westlake Village 8.25% Ventura City Vine 8.25% Tehama (Thousand University 8.75% Santa Barbara Vincent 9.75% Los Angeles Oaksl University Park 8.75% Orange Vineburg 9.00% Sonoma Westlake 9.75% Los Angeles (Irvine') Vinton 8.25% Plumes Village' Upland' 8.75% San Bernardino Virgilia 8.25% Plumes Westley 8.375% Stanislaus Upper Lake/ 8.25% Lake Visalia' 9.00% Tulare Westminster' 8.75% Orange Upper Lake Vista Park 8.25% Kern Westmorland' 8.75% Imperial Valley Vista` 9.25% San Diego Westport 8.25% Mendocino Volcano 8.75% Amador Westside 8.375% Stanislaus Volta 8.25% Merced Westwood 8.25% Lassen Westwood 9.75% Los Angeles County Total County Rate (Los Angeles') Wheatland' 8.25% Yuba Ventura+ 8.25% Location Rate County Wheeler Ridge 8.25% Kern Location Rate County Wallace 8.25% Calaveras Whiskeytown 8.25% Shasta Vacaville' 8.375% Solano Walnut Creek' 9.25% Contra Costa Whispering 8.25% Lake Val Verde Park 9.75% Los Angeles Walnut Grove 8.75% Sacramento Pines Valencia(Santa 9.75% Los Angeles Walnut Park 9.75% Los Angeles White Pines 8.25% Calaveras Clarita7 Walnut' 9.75% Los Angeles Whitethorn 8.25% Humboldt Valinda 9.75% Los Angeles Warm Springs 9.75% Alameda Whitewater 8.75% Riverside Vallecito 8.25% Calaveras (Fremont? Whitlow 8.25% Humboldt Vallejo' 8.375% Solano Warner Springs 8.75% San Diego Whitmore 8.25% Shasta Whittier' 9.75% Los Angeles 'IncMorateduly +CerfeinCisswithinth muntyhmahiaherwmte.LwateM otyrofinathewnecirats. Page 18 California City and County Sales and Use Tax Rates ■ April 2010 Cities, Counties, and Tax Rates Location Rate County Location Rate County Wildomar 8.75% Riverside Yorkville 8.25% Mendocino Wildwood 8.25% Shasta Yosemite Lodge 8.75% Mariposa Williams' 8.75% Colusa Yosemite 8.75% Mariposa Willits' 8.75% Mendocino National,Park Willow Creek 8.25% Humboldt Yountville' 8.75% Napa Willow Ranch 8.25% Modoc Yreka' 8.25% Siskiyou Willowbrook 9.75% Los Angeles Yuba City' 8.25% Sutter Willows' 8.25% Glenn Yucaipa' 8.75% San Bernardino Wilmington 9.75% Los Angeles Yucca Valley' 8.75% San Bernardino (Los Angeles') Wilseyville 8.25% Calaveras - Wilsona 9.75% Los Angeles Gardens Location Rate County Wilton 8.75% Sacramento Zamora 8.25% Yolo Winchester 8.75% Riverside Zenia 8.25% Trinity Windsor Hills 9.75% Los Angeles Windsor` 9.00% Sonoma Winnetka 9.75% Los Angeles (Los Angeles? Winterhaven 8.75% Imperial Winters` 8.25% Yolo Winton 8.25% Merced Wishon 8.75% Madera Witter Springs 8.25% Lake Wofford Heights 8.25% Kern Woodacre 9.00% Marin Woodbridge 8.75% San Joaquin Woodfords 8.25% Alpine Woodlake' 8.75% Tulare Woodland' 8.75% Yolo Woodland Hills 9.75% Los Angeles (Los Angeles? Woodleat 8.25% Yuba Woodside' 9.25% San Mateo Woodville 8.75% Tulare Woody 8.25% Kern Wrightwood 8.75% San Bernardino County Total County Rate Y010+ 8.25% Yuba 8.25% Location Rate County Yankee Hill 8.25% Butte Yermo 8.75% San Bernardino Yettem 8.75% Tulare Y010 8.25% Yolo Yorba Linda' 8.75% Orange Inoorparet hi city +certain cltles within the county have a higher tax tate.L«ate the uty to find the come nate. California City and County Sales and Use Tax Rates • April 2010 Page 19 History of Sales and Use Tax Rates (excludes district taxes) Effective Date End Date State Rate Local Rate Combined Rate 04-01-09 7.25%' 1.00%* 8.25% 07-01-04 03-31-09 6.25%' 1.00%' 7.25% 01-01-02 06-30-04 6.00% 1.25% 7.25% 01-01-01 12-31-01 5.75% 1.25% 7.00% 07-15-91 12-31-00 6.00% 1.25% 7.25% 01-01-91 07-14-91 4.75% 1.25% 6.00% 12-01-89 12-31-90 5.00% 1.25% 6.25% 04-01-74 11-30-89 4.75% 1.25% 6.00% 10-01-73 03-31-74 3.75% 1.25% 5.00% 07-01-73 09-30-73 4.75% 1.25% 6.00% 07-01-72 06-30-73 3.75% 1.25% 5.00% 08-01-67 06-30-72 4.00% 1.00% 5.00% 01-01-62 07-31-67 3.00% 1.00% 4.00% 07-01-49 12-31-61 3.00% 3.00% 07-01-43 06-30-49 2.50% 2.50% 07-01-35 06-30-43 3.00% 3.00% 1 08-01-33"" 06-30-35" 2.50% 2.50% The Bradley-Bums Uniform Local Sales and Use Tax Law was enacted in 1955.The law authorizes counties to impose a sales and use tax.Effective January 1,1962,all counties have adopted ordinances for the Board of Equalization to collect the local tax(Tehama County did not conform from 1-1-65 to 9-30-65). Effective July 1,2004,the rates on a sales tax return do not match these rates.This is due to changes of the funding procedure involving sales,local,and property taxes implemented as a result of the March 2,2004,voter approval of the"Economic Recovery Bond Act"Please refer to Return and Schedule A Instructions of the State,Local,and District Sales and Use Tax Return for more information. Sales tax only.The use tax was enacted effective July 1,1935. Page 20 California City and County Sales and Use Tax Rates ■ April 2010 CALIFORNIA STATE BOARD OF EQUALIZATION FIELD OFFICES BOARD MEMBERS(Nome*updated 2010) DISTRKT MEMBER OFFW COD AREA ADDRESS E TELEPHONE COOS NUMBER First Betty T.Yee 455 Golden Gate Avenue,Suite 10500,San Francisco,CA 94102 415 557-3000 Third Michelle Steel 550 Deep Valley Drive,Suite 355,Rolling Hills Estates,CA 90274 310 377.8016 Fourth Jerome E.Horton 1100 Corporate Center Drive,Suite 203,Monterey Park,CA 91754 323 980-1221 State Controller Jahn Chiang 777 South Figueroa Street,Suite 4800,Los Angeles,CA 90017 213 833-6010 Second Barbara Alby,Acting Member 400 Capitol Mall,Suite 2340,Sacramento,CA 95814 916 445-2181 Executive Director Ramon J.Hireig 450 N Street,PO Box 942879,Sacramento,CA 94279-0001 916 445-6464 FOR GENERAL TAX INFORMATION VISIT OUR WEBSITE AT www.bm.ca.gov For account-specific information contact your local field office. SACRAMENTO HEADQUARTERS 450 N Street,PO Box 942879,Sacramento 94279-0001 916 445-6464 BUSINESS TAXES FIELD OFFICES AREA TEIFPRONE CAUFORNUA CRIES OFFUE ADDRESS CODE NUMBER Bakersfield 1800 30th Street,Suite 380,93301-1922 661 395-2880 Culver City 5901 Green Valley Circle,Suite 200,90230-6948(PO Box 3652,90231-3652) 310 342-1000 El Centro 1550 W.Main Street,92243-2832 Note.closed 12 noon to 1 p.m.M-F 760 352-3431 Fresno 8050 North Palm Avenue,Suite 205,93711-5510 559 440-5330 Irvine 16715 Von Kaman Avenue,Suite 200,92606 949 440-3473 Norwalk 12440 E.Imperial Highway,Suite 200,90650-8397(PO Box 409,90651-0409) 562 466-1694 Oakland 1515 Clay Street,Suite 303,94612-1432 510 622-4100 Rancho Mirage 35-900 Bob Hope Drive,Suite 280,92270-1768 760 770-4828 Redding 2881 Chum Creek Road,Suite B,96002-1146(PO Box 492529,96049-2529) 530 224-4729 Riverside 3737 Main Street,Suite 1000,92501-3395 951 680-6400 Sacramento 3321 Power Inn Road,Suite 210,95826-3889 916 227-6700 Salinas 111 East Navajo Drive,Suite 100,93906-2452 831 443-3003 San Diego 1350 From Street,Room 5047,92101-3698 619 525-4526 San Francisco 121 Spear Street,Suite 460,94105-1584 415 356-6600 San Jose 250 South Second Street,95113-2706 408 277-1231 San Marcos 334 Via Vera Cruz,Suite 107,92078-2637 760 510-5850 Santa Rosa 50 D Street,Room 230,95404-4791 (PO Box 730,95402-0730) 707 576-2100 Suisun City 333 Sunset Avenue,Suite 330,94585-2003 707 428-2041 � Van Nuys 15350 Sherman Way,Suite 250,91406-4203(PO Box 7735,81409.7735) 818 904.2300 Venture 4820 McGrath Street,Suite 260,93003-7778 805 677-2700 West Covina 1521 West Cameron Avenue,Suite 300,91790-2738(PO Box 1500,91793-1500) 626 480-7200 OUT-OF-STATE FIELD OFFICES Chicago,Illinois 120 N.La Salle,Suite 1600,60602-2412 312 201-5300 Houston,Texas 1155 Dairy Ashford,Suite 550,77079-3007 281 531-3450 New York,N.Y. 485 Lexington Avenue,Suite 400,10017-2600 212 697-4680 Sacramento 3321 Power Inn Road,Suite 130,95826-3893(PO Box 188268,95818-8268) 916 227-6600 FOR MORE INFORMATION Call 800-400-7115,TDD/TTY 800-735-2929 Ii you are unable to resolve a problem through normal channels,we encourage you to contact the Taxpayers Rights Advocate Office for help at 888-324-2798 or 916.324-2796. Addresses and telephone numbers are current as of November 2009,but are subject to change. We recommend you call the field office before visiting. Unless otherwise noted all offices arc open from 8 a.m.to 5 p.m.Monday-Friday,excluding awe holidays. BOE-8-B REV.7(11-09) Exhibit B District • ' (Sales • • Use Taxes) WAN E.HORTON JOHN CHIANG BARBARA ALSY RAMON J.HIR51G stria State Controller Acting Member Executive Dlrector o lolffnq H ffs E atls" les second Dlstdo Sacramento Over 75 percent of businesses in California are located or do business in special tax districts.This publication is designed as a guide to the application of district tax to your sales and purchases. The first chapter presents an overview of district taxes using a question and answer format.Subsequent chapters cover the specific application of the tax to place of sale,sales across district lines,construction contractors,and leases. Effective April 1,2009,the state sales and use tax rate increased by 1 percent.In addition,if you are in a city or county that has a voter approved local district tax rate increase effective on April 1,2009,your overall tax rate increase will be higher. If you need information about tax rates in specific areas,you should refer to publication 71,California Cityond County Sales and Use Tax Rates.That publication has a list of the tax rates for postal delivery addresses in California. See page 22 for information on how to order a copy or visit our website at www.boe.ca.gov/pdf/pub7l.pdf. The Board of Equalization(BOE)website now includes a link,www.geotax.com,to a free sales and use tax rate locator that allows any person to determine tax rates based on address.We are providing this site as a service to taxpayers and consumers who are trying to obtain the tax rate for any address in the state. We provide the GeoTax link only as a public service and do not maintain the website.The BOE is not responsible for the content or accuracy of the information shown on that site.Problems or suggestions concerning the information on geotax.com should be sent to Group 1 Software at www.geotax.com.Also,please contact the BOE webmaster at www.boe.ca.govlinfoAvebmail.htmi if you experience any difficulties with the link to geotax.com. Additionally,some cities have developed a database of addresses to help retailers and consumers in identifying addresses located within special taxing jurisdictions for district tax rates.In cooperation with these cities,we are providing links to their address databases located on our website at www.boe.ca.gov 1.sutax1pam7l.htm.If you have questions about the addresses,please contact the cities directly. All BOE regulations,publications,and written information are available from our website at www.boe.co.gov. If you need information about specific sales or purchases,you can call our Taxpayer Information Section at 800100-7115 or write to the address below.Staff are available to answer your questions Monday through Friday (except state holidays)from 8:00 a.m.to 5:00 p.m.(Pacific time).They can also provide you with copies of the Transactions and Use Tax law and Regulations and the other publications which are listed on page 22. Please send your questions or your suggestions for improving this publication to: Audit and Information Section,MIC:44 State Board of Equalization PO Box 942879 Sacramento,CA 94279-0044 Note.This publication summarizes the law and applicable regulations in effect when the publication was written, as noted on the cover.However,changes in the law or in regulations may have occurred since that time.If there is a conflict between the text in this publication and the law,the decision will be based on the law and not on this publication. To contact your Board Member,see www.boe.ca.govlmemberslboard.htm. e ile BOARD OF EQUALIZATION Efile today. It's E-Z, It's Fast, It's Smart. www.boe.co.gov )5PINITENTS Chapter Page District Taxes-An Overview 1 Introduction to district taxes Place of Sale 3 Retailers with one location • Retailers with multiple locations Sales Across District Lines 5 Property sold in a district which is delivered or first used in that district • Property delivered to another district • Sales across district lines—examples •Voter approved city district taxes Construction Contractors 14 Tax provisions common to both sales and use tax and district tax • Provisions specific to district tax • Construction contractors—examples Leases 18 Leases and the sales and use tax law• Leases and district tax Leases—example For More Information 21 DISTRICT TAXES—AN Voters throughout California commonly approve new transactions and use taxes in their areas.All district tax rates used in this publication are current as of January 2007.Publication 71,California City and County Sales and Use Tax Rates, is updated when special tax districts are added or deleted,or when other tax rate changes occur.To view this publication, go to www.boe.ca.gov/pdf/pub7l.pdf.To order a copy please see page 22.The following questions and answers provide an overview of district taxes. Introduction to district taxes What is a district? A"district"is a local jurisdiction that,under enabling statutes in various codes,may impose transactions(sales) and use taxes within its borders.Voter approved district taxes are levied on a county-wide basis and within many incorporated city limits. What are district taxes? District taxes are either transactions(sales)or use taxes.The Revenue and Taxation Code provides that transactions (sales)taxes are due from retailers on their sales of tangible personal property,and use taxes are due from purchasers for their use of tangible personal property in the district."Use is defined as the use,storage,or other consumption of tangible personal property.In this publication,we will refer to such taxes generally as'district" taxes and designate them as either"tra n saction s(sales)"or"use"taxes only when necessary. Who is responsible for reporting district taxes? Note:The following information describes who is responsible for reporting district transactions(sales)tax or district usetax. Since transactions(sales)taxes are imposed on the sale of tangible personal property in a district,you are responsible for reporting transactions tax if you are a retailer located in a district.If you have more than one business location,your liability for district tax will depend on the location at which you conduct principal negotiations for your sales.For more information about the application of tax to sales by businesses with multiple locations or with no fixed location,you should read the discussion about place of sale,which begins on page 4. Since district use taxes are imposed on the storage,use or other consumption of tangible personal property in a district,you may be responsible for reporting district use tax if: • You are a retailer"engaged in business"within a district(see next section). • You lease,store,or consume tangible personal property in a district. What does engaged in business"mean? You are"engaged in business"in a district if you are a retailer who: • Maintains,occupies,or uses any type of office,sales room,warehouse,or other place of business in the district,even if it is used temporarily,indirectly,or through an agent. • Has any kind of representative operating in the district for the purposes of making sales or deliveries, installing or assembling tangible personal property,or taking orders. • Receives rentals from a lease of tangible personal property located in the district. • Sells or leases vehicles or undocumented vessels which will be registered in a district. APRIL2009I D15TRICTTAXES(SALES AND USE TAXES) 1 What are some of the differences between district taxes and the sales and use tax? Since district tax ordinances must incorporate provisions of the Sales and Use Tax Law,the taxes are generally the same except for: • Sale of property in a district and delivered to a customer outside the district may not be subject to the district tax. • Retailers outside a district delivering property into a district may be requited to collect the district's tax if they are engaged in business in the district. • Sellers or lessors of vehicles or undocumented vessels are required to collect district use tax imposed in the county of registration. • Sales of tangible personal property,other than fuel or petroleum products,to operators of aircraft are exempt from transactions(sales)tax if(1)the aircraft Is used as a common carrier of persons or property and(2)the property purchased will be used or consumed principally outside the district where the sale was made. • Fixed-price contracts,including leases entered into prior to the starting date of a new district tax may be exempt. What exempts a fixed-price contract from district taxes? To qualify as an exempt°fixed-price contract,"a contract must meet the following conditions: • It must have been entered into prior to the effective date of the district tax.Contracts for which an irrevocable bid was submitted prior to the effective date will qualify even when signed on or after that date, provided they are signed during a period for which the bid is still irrevocable. • It must be for a fixed amount.A contract may not have any clauses which allow for increases or decreases in the contract price because of a change in the tax rates or the cost of the property to be furnished.This provision is not invalidated if the contract allows change orders.Change orders are considered separate contracts. • All parties to the contract must be obligated to the terms of the contract.No party can have the unconditional right to terminate the contract,whether or not that right is exercised. • The sales tax amount or rate must be specifically stated in the contract,orthe contract must be tax-included. The exemption allowed for fixed-price contracts applies not only to standard retail sales contracts,but also to sales of materials and fixtures under fixed-price construction contracts and to contracts for leases of tangible personal property.Fixed-price construction contracts are discussed in more detail on page 15;and fixed-price lease contracts are discussed on page 19. 2 DISTRICT TAXES(SALES AND USE TAXES) I APRIL2009 PLACE OF SALE A major factor that affects a retailer's liability for district taxis the place of sale,"that is,the location of the retailer's business.you should read this section and page I if your business is located in a district or you have multiple locations. Retailers with one location If you area retailer whose only business location is in a district,you must generally report transactions(sales)tax on all your sales unless: • You,your agent,or a common carrier ships or delivers the property to an out-of-state or out-of-district location,or • The sale is exempt from the general sales tax or is otherwise exempt from transactions tax. If your business is not located in a district,your sales are not subject to transactions tax.However,you may be liable for district use tax if you are"engaged in business'in a district.For more information about being"engaged in business"in a district,you should read the discussion beginning on page 1. Retailers with multiple locations If you are a retailer with more than one location,the place of sale is generally considered the location at which you carry on principal negotiations even if you must forward the order to another location for acceptance,approval of credit,shipment,or billing.Your employees'activities will be attributed to the location from which they work. Consequently,sales made or negotiated by employees,or at places located in districts,are generally subject to transactions tax. As with a single location business,you are allowed an exemption from district tax for property which is shipped to an out-of-state location or for property which is also exempt from the sales and use tax. You are not liable for transactions tax on sales made at business locations outside districts.You may,however,be liable for collecting district use tax if you ship the property into a district in which you are"engaged in business," unless you accept a declaration in good faith as provided in Regulation 1823.4,Place of Delivery of Tangible Personal Property Generally,and Regulation 1823.5,Place of Deliveryof Certain Vehicles,Aircraft,and Undocumented Vessels, see pages 8 to 11.Vendors with multiple locations have their place of sale prescribed by theTransactions and Use Tax Regulation 1822,Place of5ale for Purposes of Transactions(Sales)and Use Taxes,see page 22. Vending machine operators For vending machine operators,the place of sale is the location of the vending machine.If you are a vending machine operator generally you should pay tax when buying inventory.When you make a tax-free purchase of inventory,you must report use tax based on the location of the machine through which the inventory is sold.When a machine is located in a district,you are liable for state,local,and district tax.Please visit our website at wwwboe. co.gov/pdf/reg 1574.pdf for a copy of Regulation 1574,Vending Machine Operators.Publication 118,Vending Machine Food Sales,is also available,at www.boe.co.gov/pdf/publ18.pdf. Itinerant merchants Itinerant merchants are defined as retailers with no permanent place of business.This category includes certain door-to-door salespersons. As an itinerant merchant,your place of sale Is the permanent address shown on your seller's permit.If your permanent address is located in a district,you are generally liable for district tax on your sales unless you deliver the property to the buyer outside the district for use outside the district.If your permanent address is not in a district, your sales are generally exempt from transactions tax.However,they may be subject to district use tax,if you solicit the sale in a district and ship or deliver the property to the buyer in the district.Please see page 1 for the definition of"engaged in business." APRIL 2009 1 DISTRICTTAXES(SALES AND USETAXES) 3 Businesses qualifying as section 6015 retailers A business which uses salespersons,representatives,peddlers,canvassers,agents,or other persons who operate under the direction of or obtain property from the business may be treated as the retailer under Revenue and Taxation Code section 6015(b)of the Sales and Use Tax Law.As a section 6015 retailer,the business is responsible for reporting tax on any sales made by these persons.Section 6015 retailers include operators of certain school book clubs. If you qualify as a section 6015 retailer,your place of sale is the location from which your salespersons, representatives,peddlers,canvassers,or agents operate.Sales made by persons located in districts are generally subject to transactions tax unless the property is delivered to the buyer outside the district for use outside the district.Sales made by persons located outside districts are generally exempt from transactions(sales)tax but may be subject to district use tax if the sale is solicited in a district and the property is shipped or delivered to the buyer in the district. Auctioneers For auctioneers,the place of sale is the location at which the auction is held.If you are an auctioneer holding an auction in a district,your sales are subject to transactions tax unless otherwise exempt. Out-of-state retailers engaged in business"in California Revenue and Taxation Code section 6203,Collection by Retailer,provides,in part,the definition of a retailer engaged in business in this state as any of the following: (1)Any retailer maintaining,occupying,or using,permanently or temporarily,directly or indirectly,or through a subsidiary,or agent,by whatever name called,an office,place of distribution,sales or sample room or place, warehouse or storage place,or other place of business. (2)Any retailer having any representative,agent,salesperson,canvasser,independent contractor,or solicitor operating in this state under the authority of the retailer or its subsidiary for the purpose of selling,delivering, installing,assembling,or the taking of orders for any tangible personal property. A copy of section 6203 is available from our website at wwwboetaxes.co.gov/businessNoll/Sutlsuti.pdf. An out-of-state retailer whose only presence in the state is a stock of tangible personal property is considered a California retailer,and the place of sale is the location of the property from which delivery or shipment is made.If the property is located in a district,the sale may be subject to transactions tax. 4 DISTRICTTAXES(SALES AND USETAXES) I APRIL 2009 SALES ACROSS You should read this chapter if you have a business located in a district and you make sales to customers located outside the district.You should also read this chapter if you purchase property which you intend to store,use,or consume in a district.This chapter gives a general outline of the application of district tax to these types ofsoles and purchases. If you have questions about particular sales,you should call our Taxpayer Information Section at 800-0IX1-7115 or contact one of our field offices.A complete list of field offices is provided on page 21. Retailers in districts selling property which they deliver outside the district are generally not liable for district tax in their district.However,district tax may apply in one of the following situations: • A retailer located in a district sells property to a purchaser located outside the district but the purchaser takes delivery of or first uses,the property in the district. • Property is sold outside a district and is then brought into the district for storagG use,or consumption. This chapter discusses the general rules covering the application of district tax to these kinds of transactions and then discusses the responsibilities ofretallers and purchasers for reporting the tax. Property sold in a district which is delivered or first used in that district If your business is located in a district,your sales are generally subject to transactions(sales)tax when you deliver the property to the purchaser in the district.The transactions tax applies even if the purchaser intends to immediately transport and use the property outside the district. Note:You are liable for your district's transactions(sales)tax If you deliver the property outside the district with the knowledge that the purchaser will store,use,or consume the property in your district. Property delivered to another district District use tax is due on property that the customer first stores,uses,or otherwise consumes in a district.A customer who is liable for district use tax on property first used in a district is allowed a credit for any district transactions(sales)tax already paid.This credit is limited to the amount of transactions(sales)tax reimbursement paid by the customer in the district of origin.That is,a refund of district tax is not available if the tax owed in the district of first use is less than the transactions(sales)tax reimbursement already paid on the purchase.See page 6 under the heading of°Purchasers"for an example of how the credit applies. For example,your business is located in a district and you sell merchandise to a customer who is located in an area where there is no district.If your customer picks up the merchandise at your location,the sale is subject to your district's transactions(sales)tax,even if your customer intends to take the merchandise back to his or her location. On the other hand,if you ship the property to the purchaser's location,the sale is not subject to your districts transactions(sales)tax. Either the retailer or purchaser may be responsible for reporting district use tax to the BOE,depending on the circumstances of the sale or use of the property.The following sections on retailers and purchasers discuss this in more detail. APRIL2009 I DISTRICT TAXES(SALES AND USE TAXES) 5 Retailers Asa retailer,you are required to collect and report district use tax on a sale in a district in which you are"engaged in business"(please seepage 1 for a discussion of'engaged in business"),and one of the following conditions applies: • You ship or deliver the property into the district. • You participate within that district in the sale of the property."Participation"includes solicitation whether direct or indirect.It also includes receipt of orders at a place of business in the district or through any representative,agent,canvasser,solicitor,subsidiary,or any other person working in the district under your authority. • You are a licensed dealer of vehicles or undocumented vessels which are registered by the purchaser in a county with district taxes. If a sale meets these conditions,you must collect district use tax on all taxable charges including those taxable charges which result from repairs or reconditioning. The following example illustrates when retailers should collect and report district use tax: A retailer in Santa Clara County makes a taxable sale of property which is delivered to and used by the purchaser in Alameda County.Even though it is subject to the general sales tax,the sale would be exempt from Santa Clara County district taxes because the property was delivered outside the county.However,use of the property in Alameda County makes the sale subject to the district use tax in Alameda County.If the retailer is engaged in business in Alameda County and delivers the property to the Alameda County location,he or she is responsible for reporting district use tax.If the retailer is not engaged in business in the county,the purchaser is responsible for reporting district use tax. In contrast,if the property were delivered into and first used In Ventura County,neither transactions nor district use tax would be due since Ventura County has no district taxes except for the cities of Oxnard and Port Hueneme, which are both located in Ventura County. Purchasers As a purchaser,you are generally required to report district use tax on the purchase price of tangible personal property when: • You make the first taxable use of the property in a district. • You purchased the property without district tax or at a lesser rate of district tax than is imposed in the district of use. • The retailer has no obligation to report the tax. As stated above,you are eligible for a credit of tax paid to another district,but only up to the amount of tax due in the district of use. Application of this credit is illustrated by the following example: A consumer buys merchandise in San Mateo County and pays district tax of 1.00 percent.The consumer then first uses the property in Orange County where the district tax rate is.50 percent.The consumer is liable for the Orange County district use tax at the.50 percent rate,but is eligible for a credit based on the district tax paid in San Mateo County.However,no refund is allowed for the additional.50 percent paid in San Mateo County. If the consumer buys the merchandise in Orange County and then first uses it in San Mateo County,he or she is liable for the San Mateo district use tax of 1.00 percent.The consumer is allowed a credit for the.50 percent district transactions(sales)tax paid in Orange County,but owes the additional.SO percent district use tax due in San Mateo County. 6 DISTRICTTAXES(SALES AND USETAXES) I APRIL 2009 Declaration to relieve retailer of obligation to collect district use tax for sales delivered to purchaser outside of the district Regulation 1823.4,Place of Delivery of Tangible Personal Property Generally,provides,for the purposes of the use tax,not the transactions(sales)tax,a retailer may be relieved of the obligation to collect the use tax(other than for vehicles,aircraft,and vessels)imposed by that district when you ship or deliver tangible personal property outside of that district to a purchaser's principal residence address or principal business address.You are relieved of the obligation by accepting,in good faith,a properly executed declaration under penalty of perjury.The declaration must be signed by the buyer,stating that such address is,in fact,the buyer's principal place of residence or principal place of business;that the buyer's principal place of residence or principal place of business is located outside the boundaries of the district;and that the property was purchased for use at a designated point orpoints outside of that district. It should also state that the purchaser will be liable for and pay the use tax if the property is principally stored,used,or otherwise consumed within a district. For example,you are a retailer required to collect district use tax on property you ship to the city of Trinidad, which has a tax rate of 9.00 percent.Humboldt County and the city of Trinidad have the same zip code.However, Humboldt County has a tax rate of 8.25 percent.Customers living in Humboldt County near Trinidad,but not within Trinidad's city limits,are not subject to the 9.00 percent tax rate,but the 8.25 percent rate for Humboldt County Is applicable.If your customer provides a declaration as provided in Regulation 1823.4,you may charge them the 8.25 percent tax rate. An example of the declaration to relieve the retailer of the obligation to collect district use tax is shown on page 9. One is also in Regulation 1823.4,Place of Delivery of Tangible Personal Property Generally,and available from our website at www.boe.ca.gov/pdf/reg1813-4.pdf. Declaration to relieve retailers of the obligation to collect district sales tax for sales of certain vehicles,aircraft, and undocumented vessels when delivered to purchaser outside of the district In California,if you register a vehicle or vessel at DMV to an address that falls within a special tax district,the district tax is generally included as part of the total tax collected. Regulation 182 3.5,Place of Delivery of Certain Vehicles,Aircraft,and Undocumented Vessels,relates to the place of delivery of certain vehicles(both commercial and noncommercial),aircraft,and undocumented vessels for the purpose of the district transactions(sales)tax portion only.It does not apply to the district use tax. A retailer of certain vehicles,aircraft,and undocumented vessels is considered engaged in business in any district imposing district use tax and is generally required to collect the district use tax and pay it to the state,if the vehicle, aircraft,or undocumented vessel is licensed or registered in any district imposing a district tax. Regulation 1823.5 defines the type of vehicles,aircraft,and undocumented vessels that under certain circumstances qualify for a district sales tax exemption.As stated above,this regulation also applies to certain commercial vehicles.The regulation includes declarations for the purpose of allowing the seller to treat the sale as exempt from the district transactions(sales)tax.The declarations are made under penalty of perjury.If the purchaser issues a declaration to the seller then if the property is principally stored,used or otherwise consumed in that district,the purchaser will be liable for and pay the use tax.Even though the sale of the vehicle,aircraft,or undocumented vessel may be exempt from the district sales tax under this regulation,the statewide rate of 8.25 percent will still apply to the sale and the retailer may still be responsible for collecting the district use tax. Any seller claiming exemption under this regulation must retain these declarations executed in the prescribed form. If the exemption claimed relates to the sale of a vehicle,the seller also must retain in his records a copy of either the Department of Motor Vehicles report of sale or other documentary evidence showing the out-of-district address to which the vehicle is registered. APRIL 20091 DISTRICTTAXES(SALES AND USETAXES) 7 An undocumented vessel is a vessel that is required to be registered with the California Department of Motor Vehicles(DMV).Purchasers of undocumented vessels that are exempt from transactions(sales)tax,under Regulation 1823.5 shall pay district use tax to the DMV at the time of registering the vessel if the seller did not collect the use tax.As discussed above,the seller may be required to collect the district use tax and pay it to the state.A documented vessel means a vessel which is required to be documented by the United States Coast Guard and for which the United States Coast Guard has issued a valid marine certificate.If you have questions as to whether your vessel qualifies as documented or undocumented,please refer to our publication 40,Watercraft Industry,available from our website at www.boe.ca.gov/pdf1pub40.pdf. Delivery outside district Any seller claiming an exemption from the district tax under Regulation 1823.5 must retain a declaration signed under penalty of perjury in the form prescribed in the regulation.The declaration must be signed by the buyer, accepted by the seller in good faith,and include a written statement that the vehicle,aircraft or undocumented vessel was purchased for use at designated point(s)outside the district.If the claimed exemption relates to the sale of a vehicle,the seller also must retain in his records a copy of either the DMV report of sale or other documentary evidence showing the out-of-district address to which the vehicle is registered. Regulation 1823.5,Place of Delivery ofCertain Vehicles,Aircraft,and Undocumented Vessels,includes sample declarations that can be used to relieve the retailer of the obligation to collect district transactions(sales)tax. Examples of the declarations are also available from our website at wwwboe.co.gov 1pdf 1reg7813-5.pdf and included on pages 10 and 11 of this publication. For further assistance on sales or purchases of vehicles,vessels,and aircraft,please visit our website at www.boe. co.gov/sutmr/fagtrans.htm for frequently asked questions,or call our Consumer Use Tax Section at 916-445-9524. a DISTRICTTAXES(SALES AND USETAXES) I APRIL 2009 Sample Declaration (Regulation 1823.4) I HEREBY CERTIFY THAT: (1)The purchased from (here insert description of tangible personal Property purchased) was delivered to the following address: (insert name of seller) (2)The above address is located outside the District. (name of district) (3)The above address is my principal place of residence or principal place of business. (4)The tangible personal property listed above is purchased for use at the following location(s),which is outside the District. (name of district) (street,city,state,zip code) I understand that this dedaration is for the purpose of allowing the above named seller to treat the sale of the above-described tangible personal property as exempt from the use tax imposed by the district of .If the property is principally stored,used or otherwise consumed in that (name of district) district,the purchaser shall be liable for and pay the use tax. I have personal knowledge of the statements of fact Contained in this declaration.I declare under penalty of perjury under the laws of the State of California and the United States that the foregoing statements are true and comet. PRINTED NAME OF PURCHASER SIGNATURE OF PURCHASER OR AUTHORIZED AGENT(IF APPLICABLE) NAME AND TITLE OF AUTHORIZED AGENT DATE History:Adopted October 25,2005,effective January 26,2006. Regulations are issued by the State Board of Equalization to implement,interpret or make specific provisions of the Cal Joan" Sales and Use Tax Law and to aid in the administration and enforcement of that law.If you are in doubt about how the Sales and Use Tax law applies to your specific activity or transaction,you should write the nearest State Board of Equalization office. Requests far advice regarding a specific activity or transaction should be in writing and should fully describe the facts and circumstances of the activity or transaction. APRIL 2009 1 DISTRICTTAAES(SALES AND USETA%ES) 9 Sample Declaration (Regulation 1823.5) Vehicles,Aircraft,and Undocumented Vessels I HEREBY CERTIFY THAT: (1) The (here insert description of vehicle,aircraft or undocumented Wessel giving mmne purchased from will be registered to of manufacturer and type) (insert new of seller) the following address: (2) The above address is outside the District. (name oJdistNct) (3) The address is my principal place of residence(or,in the case of a corporation,principal place of business). (4) The vehicle,aircraft,or undocumented vessel when not in use will be kept,garaged,hangared or docked at: (5) The vehicle,aircraft,or undocumented vessel will be stored,used or otherwise consumed principally outside the District (Warne of district) (Check applicable box.) (6) ❑ (a)The purchaser does not hold a California seller's permit. ❑ (b)The purchaser holds California seller's permit No. I understand that this declaration is for the purpose of allowing the above named seller to treat the sale of the above described tangible personal property as exempt from the transactions (sales) tax imposed by the District.If the property is principally stored,used (name of district) or otherwise consumed in that district,the purchaser shall be liable for and pay the use tax. The foregoing declaration is made under penalty of perjury. PRINTED NAME OF PURCHASER OR AUTHORIZEDAGENT SIGNATURE OF PURCHASER OR AUTHORIZED AGENT TIRE DATE 10 DISTRICTTAXES(SALES AND USETAXES) I APRIL 2009 Sample Declaration (Regulation 1823.5) Commercial Vehicles I HEREBY CERTIFY THAT: (1) The (here insert description of commercial vehicles giving name of manufacturer and type purchased from will be registered to the following address: (insert move of seller) (2) The vehicle will be operated from the following address: (3) The address from which the vehicle will be operated is outside the District. (name of district) (4) When not in use,the vehicle will be kept or garaged at: (5) The vehicle will be stored,used or otherwise consumed principally outside the District. (name of district) (Check applicable box.) (6) ❑ (a)The purchaser does not hold a California seller's permit. ❑ (b)The purchaser holds California seller's permit No. I understand that this declaration is for the purpose of allowing the above named seller to treat the sale of the above described tangible personal property as exempt from the transactions(sales)tax imposed by the (mmeafdishict) erty District.If the prop is principally stored,used or otherwise consumed in that district,the purchaser shall be liable for and pay the use tax. The foregoing declaration is made under penalty of perjury. PRINTED NAME OF PURCHASER OR AUTHORIZED AGENT SIGNATURE OF PURCHASER OR AUTHORIZED AGENT TT LE DATE APRIL2009 I DISTRICT TAXES(SALES AND USE TAXES) fl Sales across district lines—examples Am I liable for district transactions(sales)tax in a district where 1 solicit and accept a sale when the property is never physically in the district? No.Under these circumstances,you are not liable for transactions(sales)taxes.District tax law allows a specific exemption for property which Is sold within a district but delivered and used outside the district.You may be responsible for district use tax in the district in which the property is delivered. If am located in a district am Iliable for my district's tax if I make a sale to a person located outside the district? You are generally not liable for your district's tax so long as the customer does not take possession of the property in your district.However,if your customer is located in another district,you are generally liable for that district's use tax if(1)you are engaged in business in that district and(2)you ship or deliver the property into that district or participation within the district in making the sale. Ifl purchase property at o lower rate of tax,am I required to pay additional district tax if I use the property in a district with a higher tax rate? Yes.If the property is used in a district with a higher tax rate than the rate paid at the time of purchase,the additional tax is due. If lam not located in a district and deliverproperty to my customer at myplace of business,must I collect district use tax if the customer's billing address is located in a tax district? No.You would be required to collect the tax only if you are"engaged in business"in the district and participated in the district in making the sale or delivered or shipped the property into the district.Please note that retailers of vehicles or undocumented vessels are always"engaged in business"in districts in which the property is registered and,therefore,are always required to collect district use tax. Ill am a retailer located outside a district and I regularly make deliveries to customers in a district am I required to report district use tax? If you make deliveries with your own vehicle,you are considered"engaged in business"in the district and are required to report district use tax on the sale.If you make the deliveries through a common carrier,you generally are not liable for the tax unless you are otherwise engaged in business in the district,such as maintaining an office or other place of business in the district. If lbuytools,equipment,orotherpropertyforusein a districtfrom a vendor who is notlengagedin engagedinbusiness"ina district,are my purchases subject to district tax? Yes.You are required to report and pay the district use tax. If live outside a district and bring property into a district forrepair or reconditioning,are the repair charges which are subject to sales tax also subject to the district tax? Yes,if you pick up the property in the district.However,if you take delivery of the property outside the district for use outside the district,the district transactions(sales)tax does not apply.If there is a district tax in the location where you use the property,you are required to report and pay the use tax. Voter approved city district taxes I am located in San Diego County and regularly make deliveries in my own vehicle into the city of El Cajon.l am not considered engaged in business anywhere else in California.When I make taxable sales to customers in the county of San Diego,including sales into the city of El Cajon,am Iliable for the higher rate for the sales to El Cajon? The city of El Cajon,located in San Diego County,has a tax rate of 9.75 percent.Th is reflects the 8.25 percent statewide base rate plus 0.50 percent district tax for the entire county of San Diego and 1.00 percent district tax 12 DISTRICT TAXES(SALES AND USETAXES) I APRIL 2009 for the city of El Cajon.As of the date of this publication,the tax rate in areas of San Diego County outside the city of El Cajon is 8.75 percent. If you regularly deliver merchandise to locations within the city limits of El Cajon in your own vehicle,you are considered"engaged in business"in the district of El Cajon and are responsible for reporting the additional 1.00 percent El Cajon district tax.You should not charge the El Cajon district tax on sales that occur at your business location if your business is located outside the city limits of El Cajon or for sales otherwise made outside of the El Cajon City limits. To allow for the correct application of district taxes,many cities with voter approved district taxes have provided a list of addresses located inside their incorporated city limits.Our website provides a link to the address list at www.boe.ca.gov/sutox/cityoddresses.htm. APRIL2009I DISTRICT TAXES(SALES AND USE TAXES) 13 CONSTRUCTION CONTRACTORS This chapter covers the general application of district taxes to construction contractors.You should read this chapter if you make sales to construction contractors,or if you are a contractor located or doing work in districts. District tax generally applies to a construction contractor's purchases in the same manner as the sales and use tax. However,there are certain exceptions,which are explained in the following pages.This chapter briefly summarizes the provisions that are common to both sales and use tax and district tax and then discusses the specific district tax provisions. Tax provisions common to both sales and use tax and district tax Under both the sales and use tax and the district tax,construction contractors(other than those working under Federal contracts)are: • Consumers of materials furnished and installed on real property such as lumber,cement,roofing,windows, and wall-to-wall carpeting.As consumers,contractors generally should pay sales tax to their vendors when purchasing these items or report use tax when the materials are installed on real property. • Retailers of fixtures furnished and installed on real property such as air conditioning units,lighting and plumbing fixtures,and blinds.Contractors should remit tax to the BOE in a time and materials contract on the sale of the fixtures to their customers.Or,if installing the fixtures on a lump-sum contract, contractors should pay sales or use tax on the cost of the fixtures.If the contractor manufactures the fixture, the selling price is considered the price at which similar fixtures are sold or the price reflected by the contractor's records such as bid sheets or costing sheets. • Retailers of machinery and equipment such as drill presses,lathes,and movable partitions.Contractors should charge and remit tax on the selling price of these types of items to their customers. In contrast,construction contractors working on contracts with the Federal government(also known as United States construction contractors)are considered the consumers of both materials and fixtures.In addition,a United States construction contractor's sale of equipment to the Federal government is generally considered an exempt retail sale. For more information about the application of sales and use tax to construction contractors and a more complete listing of property qualifying as materials,fixtures,machinery,and equipment,you should read publication 9, Construction and Building Contractors,and Regulation 1521,Construction Contractors.See page 22 for information on how to order or download each. Provisions specific to district tax In addition to the above criteria,district tax law provides that: • Materials purchased before the effective date of a district tax and installed after that date may not be subject to the district tax. • The contractor's jobsite is considered the place of business for purposes of determining the applicable tax. • Certain fixed-price contracts may be exempt from district taxes enacted after the contract date. Consequently,to determine if a contractor's sales or purchases are subject to district tax,you need to take into account: • The date of purchase, • The place at which the materials,fixtures,and equipment are delivered or installed,and • Whether the construction contract qualifies as a fixed-price contract. These points are discussed in more detail below. 14 DISTRICT TAXES(SALES AND USE TAXES) I APRIL2009 Date of purchase Materials purchased before the effective date of a district tax and installed after that date are not subject to the tax.This exclusion,however,does not apply to materials purchased under a resale certificate when the materials are used for a purpose other than that stated on the certificate.It also does not apply to fixtures and equipment. Materials,fixtures,and equipment purchased under a resale certificate are generally subject to district tax if sold or consumed after the effective date of the district tax. Installation or delivery location As discussed in the previous chapter,the place of sale or place of first use determines whether district tax applies to a sale or purchase of tangible personal property.However,for materials not purchased under a resale certificate,tax applies at the time of purchase.For purchases by construction contractors: • District transactions tax applies when a contractor picks up materials or fixtures in a district even if the contractor intends to install it at a jobsite located outside the district. • District use tax applies when materials or fixtures are installed at a jobsite in a tax district and they have been purchased without district tax or at a lower rate of district tax.Generally,the contractor is responsible for reporting and paying the tax. • District tax will not apply if the sale occurs in a district,but the supplier ships the property to a nondistrict location where it is installed. The only exception to these general rules are certain purchases offixtures.The law allows contractors a credit for district tax paid on fixtures which are subsequently installed at a nondistrict location.For example,if you purchase air conditioning units in Los Angeles County(which has a total district tax rate of 1 percent)and install them on a structure in Ventura County(in areas outside of the cities of Oxnard and Port Hueneme),which has no district taxes, you are eligible for a credit of the 1 percent district tax paid in Los Angeles County. Fixed-price construction contracts As noted in chapter 1,purchases of materials,fixtures,and equipment under a qualified fixed-price contract are exempt from district tax.To qualify as an exempt fixed-price contract,a contract must: • Be entered into prior to the effective date of the district tax, • Be for a fixed amount, • Have all parties obligated to the terms of the contract,and • Have the sales tax amount or rate specifically stated in the contract. This exemption also applies to the purchases which subcontractors make as part of a fixed-price prime contract.If you are unsure whether a construction contract qualifies as"fixed-price,"you should request a review of the contract by your nearest BOE office.A list of offices is on page 21. Please Note:The exemption allowed for the purchase of materials,fixtures,and equipment under a qualified fixed-price contract does not apply to purchases of supplies such as tools,scaffolding,or welding gases which are used on the construction site.Supply purchases are only exempt if made under a fixed-price supply contract entered into directly with the supplier prior to the effective date of the district tax. Construction contractors—examples If I am a contractor located in a location without district taxes and I install materials and fixtures which are delivered to a jobsite located in a district am I liable for the district tax? Yes.Under the Transactions and Use Tax Law,your jobsite is considered your place of business.Consequently, if your jobsite is in a tax district,district tax is due on the cost of materials you use or on the selling price of the fixtures which you furnish and install. APRIL2009 I DISTRICTTAXES(SALES AND USE TAXES) is As a construction contractor,am I responsible for district tax on materials which I purchase prior to the operative date ofa district tax and use after that date? No,unless you originally purchased the materials under a resale certificate and you are using them for a purpose other than that stated on the certificate. If I purchase construction materials after the effective date of a district tax,does district tax apply? Yes,if you are purchasing and picking up the materials 1n the district or materials are delivered to a jobsite in the district(if you are operating under a fixed-price contract,see page 15). If I purchase construction materials and fixtures from a vendor in a district for use outside the district does the district tax apply? Yes,if you take delivery of the materials or property in the district.However,if you take delivery outside the district and use the property outside the district,district tax does not apply unless your jobsite is in another district.Under certain circumstances,you may be entitled to a credit for tax-paid purchases. Unless materials are purchased under a resale certificate,the district tax applies to materials purchased and delivered within a special taxing district even though such materials may be purchased for installation outside the district.The district tax does not apply to property purchased from a retailer within the district,for use outside the district,when the property is shipped to a point outside the district as agreed to in the contract of sale,and is shipped directly by the retailer or delivered by the retailer to a carrier for subsequent delivery to the out-of-district location. If materials are purchased tax-paid in an area with district taxes,the person liable for the use tax may only claim a credit against a use tax liability that is equal to the district tax rate in which the materials were installed jobsite), but not at a tax rate exceeding the district tax where the materials were installed.Accordingly,if the contractor purchased materials,tax-paid,in Orange County with a total tax rate of 8.75 percent and installs the materials in Ventura County with a tax rate of 8.25 percent the contractor does not have an additional district use tax liability in Ventura County.In this example,the sale to the contractor is a sales tax transaction and the contractor is considered the consumer of materials and would not be entitled to a credit of the 0.50 percent district tax difference paid for the materials in Orange County at the 8.75 percent tax rate. Note.,The cities of Oxnard and Port Hueneme,located in Ventura,both have district taxes. If a contractor purchased materials tax paid in Orange County with a district tax rate of 8.75 percent,and installs the materials in Los Angeles County with a district tax rate of 9.25 percent,the contractor is liable for the additional 0.50 percent district tax at thejobsite in Los Angeles County.If the contractor has a seller's permit,an adjustment should be made on Schedule A to allocate the district tax to the proper district of installation.If the contractor does not hold a seller's permit the additional use tax liability can be easily paid by providing,in writing, all the following information: 1. A request that the correspondence be accepted as a return or a statement,regardless of how brief, indicating that you are attempting to file a return,and 2. The reporting period for which the correspondence(return)is filed,and 3. The amount of tax due for each district. Please segregate your total reported use tax to each district where the materials were installed.This will assist us in allocating the use tax to the proper district. Contractors with ongoing use tax liabilities should apply fora California Consumer Use Tax Account,using BOE-400-CSU,California Consumer Use Tax Account Application,available from our website at www.boe.co.gov.If you require further assistance or you would like an application mailed or faxed to you,please call our Taxpayer Information Section at 800-400-7115. 16 DISTRICTTAXES(SALESANDUSETAXES) I APRIL 2099 If fixtures are purchased by a contractor tax-paid in an area with district taxes,the contractor,upon installing the fixtures at ajobsite without a district tax,or with a lower tax rate is entitled to a credit for the full amount of the district tax of the district of purchase. For more information about the application of district tax on sales to and purchases by construction contractors, please call our Taxpayer Information Section at 800-400-7115 or review publication 9,Construction and Building Contractors,on our website at www.boe.ca.govpdf 1pub9.pdf. APREL2009 I DISTRICT TAXES(SALES AND USE TAXES) 17 This chapter discusses the application of district tax to leases.You should read this chapterif you are the lessor or lessee of tangible personal property which is being used in a tax district.As with other types of transactions,application of district tax to a lease is generally affected by how the lease is treated under the Sales and Use Tax Law.This chapter briefly discusses the treatment ofleoses under the sales and use tax and then discusses the application of district tax. Leases and the sales and use tax law The Sales and Use Tax Law distinguishes between leases of: • Tangible personal property in general,and • Tangible personal property which qualifies as mobile transportation equipment. The following sections summarize how the law applies to these two types of leases and then discusses provisions that apply to all leases. Leases of tangible personal property in general Under the Sales and Use Tax Law,most leases are treated as continuing sales or purchases.Generally,the tax that applies is a use tax on the amounts payable under the lease(rentals),which is imposed on the lessee.If use tax does not apply(in the case of insurance companies for example),the payments are subject to the sales tax.Even though the tax is imposed on the lessee,the lessor is usually required to collect the tax and report it in the period during which he or she has received the rental payments.The lessee is not relieved from the liability until he or she is given a receipt of the kind called for in Regulation 1686,Receipts for Tax Paid to Retailers,or the tax is paid to the state. As an alternative,under certain circumstances the law allows the lessor to pay tax on the purchase price of the leased property instead of on the rentals.This choice is an irrevocable election and may be taken only if both of the following conditions are met: • The lessor leases the property in substantially the same form as purchased,and The lessor makes the election during the first quarterly reporting period in which the property is rented. These general rules apply whether the lessor purchases the property specifically for leasing or purchases it for resale and then decides to lease it. Leases of mobile transportation equipment Mobile transportation equipment includes rail cars,locomotives,truck tractors and trailers,ships,reusable shipping containers,and airplanes.The law considers lessors of mobile transportation equipment to be consumers of the equipment.Consequently,they are usually required to pay tax on the purchase price. As an alternative,lessors may issue a resale certificate when purchasing the equipment and elect to report tax on the fair rental value of the equipment.If lessors make this election,they need to remember that: The election must be made during the first period in which equipment is leased(usually the calendar quarter),and The tax rate that applies to the fair rental value is the rate imposed at the location where the equipment is first used.If the lessee moves the equipment to another location,even outside California,the tax rate still applies. i 18 DISTRICT TAXES(SALES AND USE TAXES) I APRIL2009 Conditions applying to all leases In addition to the specific conditions noted above,the following rules apply to all leases: • Property that has been leased and is then sold either to the lessee or another person is subject to sales and use tax in the same manner as other retail sales.If the sale occurs as the result of a purchase option in the lease contract,the sale occurs at the time the option is exercised. • Property which has been leased and then converted to personal use by the lessor is subject to use tax measured by the original purchase price unless the lessor paid the correct amount of tax on the original purchase.The amount of tax due may be offset by tax already collected on rentals. For more detailed information about the treatment of leases under the sales and use tax law,please see page 22 to order Regulation 1660,Leases of Tangible Personal Property-In General,Regulation 1661,Leases of Mobile Transportation Equipment and publication 46,Leasing of Tangible Personal Property in California. Leases and district tax Leases of tangible personal property in general Payments on most leases are subject to district tax if: • The property is used in a district,and The payments are subject to the statewide use tax. These general rules apply unless one of the following exemptions or exclusions applies to the lease: • The lease contract qualifies as an exempt fixed-price contract,and the payments are exempt from district tax.As noted on page 2,qualifying contracts must be entered into prior to the effective date of the district tax,must be for a fixed amount,and have all parties obligated to the terms of the contract. • The property was purchased before the effective date of the districttax,taxwas paid on the purchase price, and the property was leased in the same form as acquired in the district after the effective date. In addition,district tax applies only while the property is used in the district.Leased property which is moved from a district is no longer subject to that district's tax.If moved into another district,the property would be subject to 1. the district tax imposed at the new location;if moved to a nondistrict location,no district tax would apply.Similarly, leased property which is first used outside a district and then moved into a district becomes subject to the district tax. The responsibility for reporting district tax on a lease is the lessor's when the property is located in the district. The lessor may also be liable when he or she is"engaged in business"in the district and has delivered the leased property into the district or participated in the district in the making of the lease.When the lessor is not responsible for reporting the tax,the lessee is liable. Lessors who elect to pay tax on the purchase price of property may be liable for district tax if both the following conditions apply: • The property is first leased in a district,and • The lessor paid no district tax or paid district tax at a rate less than that imposed in that district. If,for example,you pay tax when you buy property in San Joaquin County(which has a district tax rate of 0.50 percent)and you first lease it at a location in Contra Costa County where the district rate is 1 percent,you owe Contra Costa County district use tax at a rate of 0.50 percent of the purchase price. Leases of mobile transportation equipment When a lessor pays tax on the purchase of mobile transportation equipment,the application of district tax follows the same rules as any other sale of tangible personal property.That is,district tax is due on the sale if the property is either delivered or first used in a tax district. APRIL 2009 1 DISTRICTTAXES(SALES AND USETAXES) 19 If a lessor elects to pay tax on the fair rental value of the equipment,district tax applies if the first use of the equipment is in a tax district.If the equipment is part of a resale inventory which is located in a tax district,the lease is generally subject to district tax at the time the equipment is withdrawn from inventory for lease.However,district tax will not apply if: • The only use of the equipment in the district is its transport to a lessee located outside a district,and • The equipment is thereafter used solely outside any district. Lessors whose inventories are located outside districts are not subject to district tax V their leases if the equipment is not used within any district for more than 90 days.For more information,see Regulation 1661,Leases ofMobile Transportation Equipment available at our website,www.boe.gov/pdf/regi661.pdf. Conditions applying to all leases The subsequent sale of leased property by the lessor is a retail sale,which is subject to district tax if the property is delivered or first used in a tax district.For an overview of when district tax would apply,see the first three chapters. Lessors who convert leased property to personal use will generally not be liable for district tax if one of the following conditions applies: • They have already paid district tax equal to that due in the district of use. • They are not first using the property in a district. • They originally purchased the property under a fixed-price contract.They acquired the property as the result of a transaction excluded or exempted from the sales tax such as an occasional sale,a gift,or a bequest. Leases—example On which basis should 1 pay tax:my cost of the propertyor rental charges? Your basis for payment of tax is determined by the following: • If,as lessoryou have paid state sales or usetaxonthe costof the property and you are renting the property in substantial) the same form as you acquired it,rental charges are not subject to tax.However,if you paid Y Y q 9 no district tax,you would owe district tax on the purchase price unless the item was purchased prior to the operative date of the tax. • If the rental charges are subject to tax,the rate applied should include the appropriate district taxes. For more information about leases,please contact our Taxpayer Information Section at 800-400-7115. 20 DISTRICTTAxES(SALES AND USETAxES) I APRIL 2009 FOR MORE INFORMATION For additional information or assistance with how the Sales and Use Tax Law applies to your business operations,please take advantage of the resources listed below. INTERNET TAXPAYER INFORMATION SECTION www.bae.ca.gov 800-400-7115 You can log onto our website for additional information—such as laws,regulations,forms, TDD/TTY 800-735-2929 publications,and policy manuals—that will help you understand how the law applies to your business. Customer service representatives o 5:00 p.m.available You can also verify seller's permit numbers on the BOE website(look for'Verify a Permit/ weekdays from 8:00a.m.ys 5na addition(Pacific time),except state holidays.In addition[o Licensed or call our toll-free automated verification service at 688-225-5263. English,assistance is available in other Multi-lingual versions of publications in Chinese,Korean,Spanish,and Vietnamese are languages. available on our website at wwwboe.ca.gov. FIELD OFFICES Another good resource—especi ally for starting businesses—is the California Tax Service City Area Number Center at www.taxes.ca.gov. Code FAXBACKSERVICE Bakersfield 661 395-2880 Our fatback service,which allows you to order selected publications,forms,and regula- Culver City 310 342-1000 tions,is available 24 hours a day.Call 800-400-7115 and choose the fax option.We'll fax El Centro 760 352-3431 your selection to you within 24 hours. Eureka' 707 576-2100 TAX INFORMATION BULLETIN Fresno 559 440-5330 The quarterly Tax Information Bulletin(TIB)includes articles on the application of law to Irvine 949 440-3473 specific types of transactions,announcements about new and revised publications,and Norwalk 562 466-1694 other articles of interest.You can find current and archived TIBs on our website at Oakland 510 622-4100 wwwboe.ca.gov/newshibcont.htm.Sign up for our BOE updates email list and receive Rancho Mirage 760 770-4828 notification when the latest issue of the TIB has been posted to our website. Redding 530 224-4729 FREE CLASSES AND SEMINARS Riverside 951 680-6400 Most of our statewide field offices offer free basic sales and use tax classes with some Sacramento 916 227-6700 classes offered in other languages.Check the Sales and Use Tax Section on our website at Salinas 831 443-3003 a'wwboeca.govfor a listing of classes and locations.You can also call your local field office San Diego 619 5254526 for class information.We also offer an online Basic Sales and Use Tax tutorial that you can San Francisco 415 3563600 access on our website at any time. San Jose 408 277-1231 WRITTEN TAX ADVICE San Marcos 760 510-5850 For your protection,it is best to get tax advice in writing.You may be relieved of tax, Santa Rosa 707 576-2100 penalty,or interest charges that are due on a transaction if we determine that we gave Suisun City 707 428-2041 you incorrect written advice regarding the transaction and that you reasonably relied on that advice in failing to pay the proper amount of tax.For this relief to apply,a request Van Nuys 818 9042300 for advice must be in writing,identify the taxpayer to whom the advice applies,and fully Ventura 805 677-2700 describe the facts and circumstances of the transaction. West Covina 626 480-7200 Please visit our website at:wwwboe.ca.govA'nfo 1emai1.html to email your request.You may Out-of-State Field Offices also send your request in a letter to:Audit and Information Section,MICA4,State Board of Equalization,P.O.Box 942879,Sacramento,CA 94279-0044. Chicago,IL 312 201-5300 Houston,TX 281 531-3450 TAXPAYERS'RIGHTSADVOCATE New York,NY 212 697-4680 If you would like to know more about your rights as a taxpayer or if you have not been able to resolve a problem through normal channels(for example,by speaking to a Sacramento,CA 916 227-6600 supervisor),please see publication 70,Understanding Your Rights os a California Taxpayer, 'Limited services are available in Eureka.See or contact the Taxpayers'Rights Advocate Office for help at 916-324-2798(or toll-free, wwwboe.co.gov or call the Santa Rosa field 888-324-2798).Their fax number is 916-323-3319. office. If you prefer,you can write to:Taxpayers Rights Advocate,MIC:70;State Board of Equaliza- tion;P.O.Box 942879;Sacramento,CA 94279-0070. APRIL2009 I DISTRICT TAXES ISALES AND USE TAXES) 21 Regulations and publications Lists vary by publication Selected regulations and publications that may interest you are listed below.The letters C,F,KS,or V next to a pub- lication means it is available in Chinese(C),Farsi(F),Korean(K),Spanish(5),or Vietnamese(V).A complete listing of sales and use tax regulations and publications appears on the BOE website. Regulations 1821 Foreword 1822 Place of Sale for Purposes of Transactions(Sales)and Use Taxes 1823 Application of Transactions(Sales)Tax and UseTax 1823.4 Place of Delivery of Tangible Personal Property Generally 1823.5 Place of Delivery of Certain Vehicles,Aircraft,and Undocumented Vessels 1825 Aircraft Common Carriers 1826 Construction Contractors 1827 Collection of Use Tax by Retailers Publications 2 Uniform Local Sales and Use Tax Law and Transactions and Use Tax Law and Additional Local Taxes 9 Construction and Building Contractors 46 Leasing of Tangible Personal Property in California 51 Guide to Board of Equalization Services(C,K,5,V) 70 Understanding Your Rights as a California Taxpayer(C,K,S,V) 71 California City and County Sales and Use Tax Rates 73 Your California Seller's Permit(C,F,K,S,V) i 22 DISTRICT TAXES(SALES AND USE TAXES) I APRIL2009 I RESOLUTION NO. A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA 2 BERNARDINO CALLING A SPECIAL ELECTION TO BE HELD ON TUESDAY 3 NOVEMBER 2, 2010; REQUESTING THAT THE COUNTY BOARD O SUPERVISORS ALLOW THE ELECTION TO BE CONSOLIDATED WITH THE 4 STATEWIDE GENERAL ELECTION OF THAT SAME DATE; AND REQUESTING 5 SERVICES OF THE COUNTY REGISTRAR OF VOTERS FOR THE CONDUCT O THE ELECTION AND FOR THE PROCESSING OF THE CITY'S PROPOSE 6 MEASURES 7 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 8 OF SAN BERNARDINO AS FOLLOWS: 9 FINDINGS: 10 11 WHEREAS, the Mayor and Common Council desire to submit certain matters to the 12 City's electorate, and 13 WHEREAS, there is a statewide general election scheduled for Tuesday, November 2 14 2010,and 15 WHEREAS, the Mayor and Common Council desire to call a special municipal electio 16 17 to be consolidated with the statewide general election. 18 SECTION 1. The Mayor and Common Council find and determine that each of the 19 findings set forth above is true and correct. 20 SECTION 2. There shall be, and there is hereby called and ordered held in the City o 21 zz San Bernardino, California, on Tuesday, the 2nd day of November, 2010, a special election (the 23 "Special Election") to present measures to the City's voters to be enumerated by one or more 24 resolutions adopted subsequent to the adoption of this resolution. 25 SECTION 3. The Mayor and Common Council hereby declare its intent to consolidate 26 the Special Election with the statewide general election to be held on November 2, 2010. 27 28 ORIGINAL a /�( (� I SECTION 4. In all particulars not recited in this Resolution, the Special Election shall 2 be held and conducted as provided by law. 3 SECTION 5. Notice of the time and place of holding the Special Election is hereby 4 given. 5 6 SECTION 6. The Mayor and Common Council hereby request the San Bernardino 7 County Registrar of Voters(the"Registrar of Voters")to provide all services necessary to 8 conduct the Special Election, including accepting the filing of arguments, rebuttals and other 9 documents and performing all processing and pre-election responsibilities, and to conduct and 10 canvass the results of the Special Election. 11 SECTION 7. The City shall reimburse the Registrar of Voters for services performed at 12 the rate specified per registered voter in the City,plus the additional direct charges,when the 13 work is completed and upon presentation to the City of a properly approved bill. 14 SECTION 8. The Registrar of Voters is authorized, instructed, and directed to give 15 further or additional notice of the election, in time, form, and manner as required by law. 16 SECTION 9. The Registrar of Voters is authorized, instructed and directed to procure 17 and furnish(or cause to be procured and furnished)any and all official ballot notices,printed 18 matter,and all other supplies, equipment, and paraphernalia that may be necessary to prepare an 19 lawfully conduct the Consolidated Special Election. 20 SECTION 10. The last day for receipt of primary arguments for or against the 21 ordinance has been established as 5:00 p.m. on August 16, 2010 in the Registrar of Voter's 22 Office, 777 E. Rialto Avenue, San Bernardino, California, and the last day for receipt of rebuttal 23 arguments is 5:00 p.m. on August 23, 2010. 24 SECTION 11. The City Clerk shall certify to the passage and adoption of this 25 Resolution and enter it into the book of original Resolutions and transmit a copy to the County 26 Board of Supervisors and to the County Registrar of Voters. 27 28 _2 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA I N BERNARDINO CALLING A SPECIAL ELECTION TO BE HELD ON TUESDAY 2 NOVEMBER 2, 2010; REQUESTING THAT THE COUNTY BOARD O SUPERVISORS ALLOW THE ELECTION TO BE CONSOLIDATED WITH THE 3 STATEWIDE GENERAL ELECTION OF THAT SAME DATE; AND REQUESTIN 4 SERVICES OF THE COUNTY REGISTRAR OF VOTERS FOR THE CONDUCT O THE ELECTION AND FOR THE PROCESSING OF THE CITY'S PROPOSE 5 MEASURES 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Council of the City of San Bernardino at a meeting thereof, held on the day of 2010,by the following vote,to wit: s COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 9 10 MARQUEZ u DESJARDINS 12 BRINKER 13 SHORETT 14 KELLEY 15 16 JOHNSON 17 MC CAMMACK 18 19 Rachel Clark, City Clerk 20 21 The foregoing Ordinance is hereby approved this day of , 2010. 22 23 PATRICK J. MORRIS, Mayor 24 City of San Bernardino Approved as to form: 25 JAMES F. PENMAN 26 City A omey 27 By: 28 .3 I RESOLUTION NO. 2 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA 3 BERNARDINO PLACING A GENERAL TRANSACTIONS AND USE TAX QUESTIO ON THE BALLOT FOR THE NOVEMBER 2,2010 SPECIAL ELECTION a 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY 6 OF SAN BERNARDINO AS FOLLOWS: 7 FINDINGS: 8 WHEREAS, Revenue & Taxation Code Section 7285.9 authorizes the City of San 9 10 Bernardino ("City")to levy a general transactions and use tax if the ordinance proposing that tax I I is approved by a two-thirds vote of all members of the Mayor and Common Council (five (5 12 members), and the tax is approved by a majority vote of the qualified voters of the City voting in 13 an election on the issue, and la WHEREAS, The Mayor and Common Council, by a sufficient vote of its members 15 16 adopt this resolution to propose to the electorate of the City of San Bernardino a Transaction 17 and Use Tax Ordinance which imposes a general transactions and use tax and, by separate 18 action, will adopt the tax on condition that it is subsequently approved by the voters, and 19 WHEREAS, by prior resolution, the Mayor and Common Council called a Special 20 Election for Tuesday,November 2, 2010, and 21 22 WHEREAS, the Mayor and Common Council desire to submit the tax measure to the 23 electorate at the Special Election. 24 SECTION 1. The Mayor and Common Council find and determine that each of the 25 findings set forth above is true and correct. 26 27 28 _1 i I A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA I BERNARDINO PLACING A GENERAL TRANSACTIONS AND USE TAX QUESTIO 2 ON THE BALLOT FOR THE NOVEMBER 2,2010 SPECIAL ELECTION 3 SECTION 2. The Mayor and Common Council hereby order the following question t 4 he submitted to the voters at the special municipal election called for Tuesday, November 2 5 2010: 6 San Bernardino Emergency Revitalization Funding Measure. For the 7 To offset the impact of severe budget cuts and return jobs and businesses to San Ordinance Bernardino through neighborhood police patrols,street repairs,blight and graffiti 8 removal,and other critical general fund services that create a safe and well- Against the maintained community,shall San Bernardino adopt a%2 cent transaction and use Ordinance 9 (sales)tax that terminates in 7 years,with citizen oversight,annual audits,and all funds staying local to revitalize our city's economy? 10 This question requires the approval of a majority of those casting votes and the Ordinance 11 12 referenced therein is Ordinance No. of the City,attached hereto as Exhibit A. 13 SECTION 3. Pursuant to California Elections Code Section 9280, the Mayor an 14 Common Council hereby direct the City Clerk to transmit a copy of this Resolution and Exhibit 15 A to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure 16 17 which shall not exceed 500 words in length, showing the effect of the measure on the existing 18 law and the operation of the measure. The impartial analysis shall be submitted to the Regis t9 of Voters no later than 5:00 p.m. on August 16, 2010. 20 SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolutio 21 and enter it into the book of original Resolutions. 22 23 24 25 26 27 28 -2 1 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY O SAN BERNARDINO PLACING A GENERAL TRANSACTIONS USE TAX QUESTIO 2 ON THE BALLOT FOR THE NOVEMBER 2, 2010 CONSOLIDATED SPECIA ELECTION AND ADVISORY ELECTION 3 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Council of the City of San Bernardino at a meeting thereof,held on the 5 day of 2010, by the following vote,to wit: 6 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 7 MARQUEZ 8 DESJARDINS 9 10 BRINKER n SHORETT 12 KELLEY 13 JOHNSON 14 MC CAMMACK 15 16 17 Rachel Clark, City Clerk 18 The foregoing Resolution is hereby approved this day of 19 2010• 20 zl PATRICK J. MORRIS, Mayor City of San Bernardino 22 Approved as to form: 23 24 JAMES F. PENMAN City Attorney 25 By: .� 26 27 28 -3 I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING THE EXECUTION OF A CONSULTANT SERVICES AGREEMENT WITH THE LEW 3 EDWARDS GROUP TO PROVIDE PUBLIC INFORMATION SERVICE RELATED TO THE 2010 LOCAL TRANSACTIONS AND USE TAX BALLOT MEASURE. 4 5 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The City Manager of the City of San Bernardino is hereby authorized 7 8 and directed to execute on behalf of said City a Consultant Services Agreement between The 9 Lew Edwards Group and the City of San Bernardino, a copy of which is attached hereto, 10 marked Exhibit A, and incorporated herein by reference as fully as though set forth at length. 11 SECTION 2. The authorization to execute the above referenced agreement is 12 rescinded if the parties to the agreement fail to execute it within sixty (60) days of the adoption 13 of this resolution. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL AUTHORIZING THE EXECUTION OF A CONSULTANT SERVICES AGREEMENT WITH LEW 1 EDWARDS GROUP TO PROVIDE PUBLIC INFORMATION SERVICE RELATED TO THE 2010 LOCAL TRANSACTIONS AND USE TAX BALLOT MEASURE. 2 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the 3 4 Mayor and Common Council of the City of San Bernardino at a meeting 5 thereof, held on the day of , 2010,by the following vote to-wit: 6 Council Members: AYES NAYS ABSTAIN ABSENT 7 MARQUEZ 8 DESJARDINS 9 BRINKER 10 SHORETT j 11 ! KELLEY 12 13 JOHNSON 14 MCCAMMACK i 15 ' 16 City Clerk 17 The foregoing resolution is hereby approved this day of 2010 18 19 20 Patrick J. Morris, Mayor 21 City of San Bernardino Approved as to form: 22 23 JAMES F. PENMAN, 24 City Attorney 25 By. — 26 27 l 28 2 i CONSULTANT SERVICES AGREEMENT CITY OF SAN BERNARDINO AND THE LEW EDWARDS GROUP This Consultant Services Agreement is entered into this day of , 2010 by and between The Lew Edwards Group ("CONSULTANT") and the City of San Bernardino ("CITY"or"San Bernardino"). WITNESSETH: WHEREAS, The Mayor and Common Council have initiated a Local Transactions and Use Tax; and III WHEREAS,it is the best interest of the CITY to acquire the services of a Consultant to assist with public information and community outreach services related to the City's Local Transactions and Use Tax ballot efforts. NOW,THEREFORE,the parties hereto agree as follows: 1. SCOPE OF SERVICES For the remuneration stipulated, San Bernardino hereby engages CONSULTANT to provide those services as set forth in Exhibit "A", which is attached hereto and incorporated herein by this reference. 2. COMPENSATION AND EXPENSES a. Consultant shall be paid a flat consulting fee of $25,000 (Twenty Five Thousand . Dollars), payable in three monthly payments of Eight Thousand, Three Hundred and thirty- three Dollars and thirty-three cents ($8,333.33) per payment on August 31, September 30, and October 29, 2010. b. Among other public information services, Consultant shall be paid to implement an informational direct mail program consisting of no more than 4 (four) mailers at a total cost not to exceed $60,000 (Sixty Thousand Dollars). Mailings costs are due within thirty (30) days upon Consultant's invoice. c. CITY shall separately reimburse CONSULTANT for CONSULTANTS reasonable and necessary expenses, including without limitation travel, long distance telephone charges teleconferencing, and/or cellular toll charges; photocopying and faxes; express mail; messenger or delivery service incurred in performing the services hereunder. These expenses shall be charged by CONSULTANT and CONSULTANT shall be reimbursed by CITY within thirty (30) days following presentation of CONSULTANTS invoice or billing statement. Expenses reimbursed pursuant to this section shall not exceed$1,500(Fifteen Hundred Dollars). d. The total amount paid to CONSULTANT shall not exceed$86,500. 1 CONSULTANT SERVICES AGREEMENT CITY OF SAN BERNARDINO AND THE LEW EDWARDS GROUP 3. TERM The term of this Agreement shall begin on August 3, 2010 and terminating on October 29, 2010. This Agreement may be terminated at any time by thirty (30) days written notice by either party. The terms of this Agreement shall remain in force unless mutually amended. 4. INDEMNITY CONSULTANT agrees to and shall indemnify and hold the City, its elected officials, employees, agents or representatives, free and harmless from all claims, actions, damages and liabilities of any kind and nature arising from bodily injury, including death, or property damage, based or asserted upon any actual or alleged act or omission of CONSULTANT, its employees, agents, or subcontractors, relating to or in any way connected with the accomplishment of the work or performance of services under this Agreement, unless the bodily injury or property damage was actually caused by the sole negligence of the City, its elected officials, employees, agents or representatives. As part of the foregoing indemnity, CONSULTANT agrees to protect and defend at its own expense, including attorney's fees, the City, its elected officials, employees, agents or representatives from any and all legal actions based upon such actual or alleged acts or omissions. CONSULTANT hereby waives any and all rights to any types of express or implied indemnity against the City, its elected officials, employees, agents or representatives, with respect to third party claims against the CONSULTANT relating to or in any way connected with the accomplishment of the work or performance of services under this Agreement. 5. INSURANCE While not restricting nor limiting the foregoing, during the tern of this Agreement, CONSULTANT shall maintain in effect policies of comprehensive public, general and automobile liability insurance, in the amount of$1,000,000.00 combined single limit, and statutory worker's compensation coverage, and shall file copies of said policies with the CITY'S Risk Manager prior to undertaking any work under this Agreement. CITY shall be set forth as an additional named insured in each policy of insurance provided hereunder. The Certificate of Insurance furnished to the CITY shall require the insurer to notify CITY of any change or termination in the policy. 3 6. NON-DISCRIMINATION 2 CONSULTANT SERVICES AGREEMENT CITY OF SAN BERNARDINO AND THE LEW EDWARDS GROUP 1 2 In the performance of this Agreement and in the hiring and recruitment of employees, 3 CONSULTANT shall not engage in, nor permit its officers, employees or agents to engage in, 4 discrimination in the employment of persons because of their race, religion, color, national origin, ancestry, age, mental or physical disability, medical condition, marital status, sexual 5 gender or sexual orientation,or any other status protected by law. 6 7. INDEPENDENT CONTRACTOR 7 CONSULTANT shall perform work tasks provided by this Agreement but for all intents 8 and purposes, CONSULTANT shall be an independent CONTRACTOR and not an agent or 9 employee of the CITY. CONSULTANT shall secure, at its expense, and be responsible for any 10 and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for CONSULTANT and its 11 officers, agents, and employees, and all business licenses, if any are required, in connection 12 with the services to be performed hereunder. 13 g, BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS 14 CONSULTANT warrants that it possesses or shall obtain and maintain a business 15 registration certificate pursuant to chapter 5 of the Municipal Code, and any other license, 16 permits, qualifications, insurance and approval of whatever nature that are legally required of CONSULTANT to practice its profession. 17 9. NOTICES. 18 Any notice to be given pursuant to this Agreement shall be deposited with the United 19 States Postal Service,postage prepaid and addressed as follows: 20 21 TO THE CITY: City Manager's Office 6 22 300 North"D" Street 23 San Bernardino, CA 92418 Phone: (909) 384-5122 24 25 TO THE CONSULTANT: Catherine Lew Esq. 26 The Lew Edwards Group 27 PO Box 21215, Oakland, CA 94620 28 Phone: (510) 594-0224 3 CONSULTANT SERVICES AGREEMENT CITY OF SAN BERNARDINO AND THE LEW EDWARDS GROUP In the event that litigation is brought by any party in connection with this agreement, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions or provisions hereof. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement on behalf of the City shall be considered as"attorneys' fees" for the purposes of this paragraph. 11. ASSIGNMENT CONSULTANT shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any part of the CONSULTANT's interest in this Agreement without CITY's prior written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach of this Agreement and cause for the termination of this Agreement, regardless of CITY's consent, no subletting or assignment shall release CONSULTANT of CONSULTANT's obligation to perform all other obligations to be performed by CONSULTANT hereunder for the term of this agreement. 12. VENUE The parties hereto agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated either in the State courts located in the County of San Bernardino, State of California or the U.S. District Court for the Central District of California, Riverside Division. The aforementioned choice of venue is intended by the parties to be the mandatory and not permissive in nature. 13. GOVERNING LAW This Agreement shall be governed by the laws of the State of California. 14. SUCCESSORS AND ASSIGNS This Agreement shall be binding on and inure to the benefit of the parties to this Agreement and their respective heirs,representatives, successors, and assigns. 15. HEADINGS The subject headings of the sections of this Agreement are included for the purposes of convenience only and shall not affect the construction or the interpretation of any of its provisions. 16. SEVERABILITY 4 CONSULTANT SERVICES AGREEMENT CITY OF SAN BERNARDINO AND THE LEW EDWARDS GROUP If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of the Agreement shall remain in full force and effect. 17. REMEDIES; WAIVER. All remedies available to either party for one or more breaches by the other party are and shall be deemed cumulative and may be exercised separately or concurrently without waiver of any other remedies. The failure of either party to act in the event of a breach of this Agreement by the other shall not be deemed a waiver of such breach or a waiver of future breaches, unless such waiver shall be in writing and signed by the party against whom enforcement is sought. 18. ENTIRE AGREEMENT; MODIFICATION. This Agreement constitutes the entire agreement and the understanding between the parties, and supersedes any prior agreements and understandings relating to the subject matter of this Agreement. This Agreement may be modified or amended only by a written instrument executed by all parties to this Agreement. IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and date set forth below. Date: August , 2010 THE LEW EDWARDS GROUP By: Catherine Lew, Owner Date: August , 2010 CITY OF SAN BERNARDINO By: Charles McNeely, City Manager Approved as to Form: B?Penman, J City Attorney 5 Exhibit A July 26, 2010 To: City Manager Charles McNeely Assistant City Manager Debra Kurita City of San Bernardino From: Catherine Lew,Esq. President&CEO RE: UPDATED PROPOSAL Thank you for your invitation to our firm to submit a proposal to serve the City's needs as you plan for a second General Purpose Sales Tax in November 2010. The Lew Edwards Group enthusiastically welcomes a partnership with the City of San Bernardino. ABOUT THE LEW EDWARDS GROUP The Lew Edwards Group (LEG)has enacted more than $27 Billion in California Revenue Measures with a 94% success rate. The following are some of the many qualities that our team offers to the City of San Bernardino: ✓ Extensive experience and a proven track record of success on California revenue measures of all types,with a specific track record of 32 successful sales tax measures, a specialty of our firm; ✓ A stable professional bench of long-time firm experts who have legal backgrounds and decades of professional experience in communications, coalition-building, and legally- permissible public information programs; ✓ Nationally recognized, award-winning communications products; and ✓ A team and consensus-building management style, with enthusiastic and committed dedication to your needs. LEG has represented well over 100 cities and other public agencies throughout California, and was successful in 29 of 31 local revenue projects in November 2008, including both General Purpose and Special Purpose sales tax measures. In addition, LEG was successful in local sales tax and other revenue measures for the cities of Cathedral City (sales tax), Cotati (sales tax), Desert Hot Springs (2/3s requirement parcel tax), and Rohnert Park (sales tax) in 2010. LEG currently =resents the following eight additional sales tax jurisdictions in their 2010 planning efforts: the cities of Concord. El Cerrito, Half Moon Bay, Livermore, Novato, San Leandro, Tracy and Valle o. LEG experts are outstanding professionals from disciplines such as communications, direct mail, media relations, government affairs, coalition building, and public information campaigns. Our nationally-recognized, award-winning communications products have been honored on multiple occasions in the prestigious Pollie Awards. LEG prides itself on providing individualized, quality service to each of our clients and has an extensive track record of designing innovative Public Information programs and winning elections for cities and public agencies across California. LEG experts are frequent lecturers and trainers for organizations that include the League of California Cities, Local Government Commission, California Municipal Treasurers Association, Institute for Local Governments, Municipal Management Association of Northern California,and other public agency associations. LEG principals and experts are also lead trainers for the League of California Cities, and I am a co-author of the League's Countdown to Success a "How-To" manual for local communities planning for revenue measures. I provided you both with complimentary copies of this manual. EXPERIENCE Sales Tax and City Revenue Measures Having overseen hundreds of successful revenue measure projects since 1997, LEG is proud of its demonstrated track record on city revenue measures throughout California and the Bay Area, a firm specialty. Specifically, LEG has quarterbacked successful sales tax proiects in 32 cities and counties, a strong standard by any measure. LEG's past election cycles have included successful outcomes on behalf of revenue measures in the cities of Artesia, Arvin (Sales Tax), Bellflower, Belmont, Burlingame, Campbell (Sales Tax), Cathedral City (Sales Tax), Ceres (Sales Tax), Clovis (Sales Tax), Cotati (Sales Tax), Cupertino, Desert Hot Springs, Dinuba (Sales Tax), El Cerrito (Sales Tax), Emeryville, Escondido, Galt (Sales Tax), Gardena, Gilroy, Grover Beach (Sales Tax), Hermosa Beach, Inglewood (Sales Tax), Kingsburg, La Habra (Sales Tax), La Mesa (Sales Tax), Lawndale, Los Banos (Sales Tax), Palo Alto, Manteca (Sales Tax), Millbrae, Morro Bay (Sales Tax), Pasadena, Pinole (Sales Tax), Porterville (Sales Tax), Redondo Beach, Reedley (Sales Tax), Rohnert Park (Sales Tax), San Juan Capistrano, Sanger (Sales Tax), Saratoga, San Leandro, San Luis Obispo (Sales Tax), San Ramon, Santa Cruz, Sausalito, Seaside (Sales Tax), Santa Monica, Selma (Sales Tax), South Gate (Sales Tax), Stockton (Sales Tax), Torrance, Visalia (Sales Tax), Vallejo, Vista (Sales Tax), and West Hollywood, to name a few. Countywide sales tax measures successfully enacted by LEG include a June 2008 Santa Cruz County sales tax measure to provide permanent annual funding at the level of $8.5 Million for local libraries, Imperial County and Tulare County sales tax measures raising $940 Million and $652 2 Million respectively for local streets and roads; and a 2004 Fresno County sales tax raising$94 million for Chaffee Zoo. LEG has also conducted revenue-planning efforts for the cities of Coachella, Chico, Fremont, Hemet, Livermore, Lynwood, Long Beach, Manhattan Beach, Newark, Rancho Cordova, Salinas (sales tax), Santa Rosa (sales tax), and Wasco (sales tax) and is directing Public Information efforts currently for the cities of Arcadia, Bellflower, Ceres, Chino Hills, Cloverdale, Concord (sales tax), El Cerrito (sales tax), Emeryville, Half Moon Bay (sales tax), Huntington Beach, Indio, Lincoln, Livermore (sales tax), Novato (sales tax), Riverside, San Leandro (sales tax), Santa Fe Springs, Tracy (sales tax), and Vallejo (sales tax), among others. Greater Regional Experience As noted in my letter dated July 101", LEG has represented a number of agencies in the San Bernardino County and surrounding region, including successful bond measures or bond planning for the school districts of Colton joint USD, Fontana USD, San Bernardino City USD, Victory Elementary SD, Victor Union High SD, and Victorville Community College District. In the surrounding region, LEG has recently engaged in initial revenue planning efforts for San Bernardino County and the City of Chino Hills, as well as overseeing successful revenue measures for the cities of Cathedral City and Desert Hot Springs, for whom we assisted with two successful, two-thirds requirement revenue measures. As noted above LEG is currently representing the cities of Indio, Huntington Beach, Riverside, and Santa Fe Springs in revenue planning efforts, among several others. RECOMMENDED SCOPE OF SERVICES Scope of Work Components LEG will provide overall strategic direction and supportive project management for the City's educational activities, including City-sponsored, legally permissible Public Information Materials about the City's needs. Communication Goals 1. Develop messages that effectively inform, solicit and respond to questions from the public 2. Provide structure and copy for informational materials to educate residents about the needs 3. Implement an earned (non-paid) media press and Internet strategy to highlight the services or projects at stake,budget realities and challenges 4. Implement a Community Information direct mail program to the public-at-large to highlight budget realities, needs, service demands, and other relevant facts to inform and engage the public 3 LEG will assist the City in focusing key messages for use in all communications vehicles, with an emphasis on articulating the community service benefits for local residents. Refine and Recommend Key Messages The Public Information Program is a critical method of educating the public and raising awareness of the needs. The type of messaging information that is helpful to your effort typically includes: a. a defining message of"what's at stake;" b. information about the City's sound fiscal management and the external threats; c. information about how locally-approved revenue will protect quality of life and property values; and d. the continued service benefits to the community. Any information developed for the Public Information Program is factual, not advocacy, and typically reviewed and approved by the City Attorney. This is particularly important as recent opinions and rulings issued by the state Fair Political Practices Commission (FPPC) and State Supreme Court in Vargas v. Salinas point to the need for care in the implementation of the Public Information Program to assure that all activities are legally-permissible. Though I am a member of the California State Bar, and LEG has enjoyed an outstanding relationship with all of our client City Attorneys,neither LEG nor I are functioning as the City's legal counsel, and legal advice is not within the scope of our services. Direct Mail Component LEG recommends that an informational direct mail program be implemented to the public-at-large. LEG also recommends fully utilizing all Internet or Web-based communications vehicles. As few as three and as many as six or seven informational mailers have been implemented on behalf of our other city clients. The number of mailers recommended depends on a city's budgetary parameters, the difficulty of the task as revealed by the public opinion survey, the past communications practices of a city, and the duration of the City's Public Information Program. LEG typically recommends four mailers as being prudent. In consultation with city staff, LEG will also draft and/or refine informational articles for city handouts, press releases and website, with appropriate supporting materials (charts, graphs, visual aids, etc.) to communicate key messages and inform residents. In addition, LEG will draft, review and/or refine supporting fact sheets, flyers and other communications. 4 Speakers Bureau and other Communication Vehicles LEG will also work with the City to maximize use of the City's website, community television, and an informational Speakers' Bureau program strategically directed to key stakeholder organizations in the City. LEG will develop Power Point and other presentation materials that deliver an effective information message and train City staff, officials and key stakeholders on how to deliver the message. Typically the City Attorney reviews all messaging before it is finalized. Press Coverage LEG will review earned(non-paid)media press opportunities with City Staff. Balanced or positive press coverage will build additional awareness and support throughout the process, which is critical to engaging community stakeholders and informing your public about your needs. Developing Your General Purpose Sales Tax Measure LEG provides input and perspectives to the City Attorney and City staff on the proper and recommended wording and structure of your General Purpose Sales Tax measure, including refining the ballot question and other submittals so that they are understandable to the average person. This addresses specific documents such as the resolution,measure ordinance, and ballot question among other items. Rapid Response LEG will redirect message points and materials to assist in rapid response to problematic media or citizen inquiries as necessary. Frequently,communities that pride themselves on having active stakeholder groups can, at times, be prone to being victims of inaccurate information. LEG experts will be available to craft appropriate rapid responses as necessary to address changing external nuances. PROPOSED PROFESSIONAL FEE This proposal only addresses those consulting services that are legally-permissible for the City of San Bernardino to contract for, and assumes that as in other cities and consistent with your past UUT planning, the City will be continuing its legally-permissible public information/education activities from initiation of our services,until Election Day. Our proposed fee for preparing the City of San Bernardino for a November 2010 General Purpose Sales Tax measure is $25,000 for a project period commencing in August through October 29, 2010. The professional fee is the City's cost to retain LEG's strategic expertise, including overall project direction and advice, strategy, planning, assessment and conceiving communications materials. The professional fee is for strategic services only- - and does not include"hard"project costs such as 5 graphics, mailing data, postage, and printing which are described below. Please note that without exception, the Lew Edwards Group does not charge on an hourly basis. In addition, we suggest a "not to exceed" allocation of $1,500 for routine out of pocket expenses for the costs of airfare, car rental, teleconferencing, or messenger. Only those costs actually incurred will be billed, at cost. When visiting other clients in the region, costs are prorated accordingly. In addition to our professional fee, most cities your size would budget approximately $60,000 for up to four informational mailers about budget and service needs. SUMMARY OF PROPOSAL Professional Fee through October 29th $25,000 Mailing Costs (up to 4 mailers) $60,000 Out of Pocket Expenses (not to exceed) $1,500 PROFESSIONAL BID (Not to Exceed) $86,500 SELECTED CLIENT REFERENCES City of El Cerrito (successful sales tax, engaging in second sales tax planning) Scott Hanin, City Manager 510-215-4301 sch @ci.el-cerrito.ca.us City of Cathedral City(successful June 2010 sales tax and November 2008 UUT) Don Bradley, City Manager 760-770-0372 dbradley @cathedralcity.gov Allen Howe, Assistant to the City Manager 760-770-0396 ahowe @cathedralcity.gov City of Desert Hot Springs (successful two-thirds requirement parcel tax/UUT measures) Rick Daniels, City Manager 760-329-6411 x 101 rdaniels @cityofdhs.org Patrick Williams, Police Chief 760-636-6022 cellular suuerbolts @verizen.net City of Chino Hills (area client) Michael Fleager, City Manager 909-364-2611 mfleager @chinohills.org Kathy Gotch, Assistant CM 909-364-2610 kgotch @chinohills.org City of La Habra (successful sales tax increase) City Manager Don Hannah: 562-905-9798 donh@lahabracity.com 6 I ORDINANCE NO. 2 3 AN URGENCY ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE a STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 ET SEQ.,SUBJECT TO VOTER APPROVAL AND 5 PROVIDING FOR SUNSET OF THE TAX AND THE CREATION OF A CITIZENS' 6 OVERSIGHT COMMITTEE,AND DECLARING THE URGENCY THEREOF 7 SECTION 1. Title. This ordinance shall be known as the San Bernardino Emergent 8 Revitalization Funding Measure. The City of San Bernardino hereinafter shall be called "City.' 9 This ordinance shall be applicable in the incorporated territory of the City. to SECTION 2. Operative Date. "Operative Date" means the first day of the first calendat I quarter commencing more than 110 days after November 2, 2010. tz SECITON 3. Purpose. This ordinance is adopted to achieve the following, among othe 13 purposes, and directs that the provisions hereof be interpreted in order to accomplish those to purposes: is A. To impose a retail transactions and use tax in accordance with the provisions of Part 1. 16 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code an n Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax is ordinance which shall be operative if a majority of the electors voting on the measure 19 vote to approve the imposition of the tax at an election called for that purpose. 20 B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical 21 to those of the Sales and Use Tax Law of the State of California insofar as those zz provisions are not inconsistent with the requirements and limitations contained in Part 1. of Division 2 of the Revenue and Taxation Code. 23 za C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides zs measure therefore that can be administered and collected by the State Board of 26 Equalization in a manner that adapts itself as fully as practicable to, and requires the leas 27 possible deviation from, the existing statutory and administrative procedures followed by 28 _t i the State Board of Equalization in administering and collecting the California State Sale 2 and Use Taxes. 3 D. To adopt a retail transactions and use tax ordinance that can be administered in a mannei 4 that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 0 s Division 2 of the Revenue and Taxation Code, minimize the cost of collecting th 6 transactions and use taxes, and at the same time, minimize the burden of record keeping 7 upon persons subject to taxation under the provisions of this ordinance. s SECTION 4. Contract With State. Prior to the operative date, the City shall contras v with the State Board of Equalization to perform all functions incident to the administration an to operation of this transactions and use tax ordinance; provided, that if the City shall not have i i contracted with the State Board of Equalization prior to the operative date, it shall nevertheless 12 so contract and in such a case the operative date shall be the first day of the first calendar quartet 13 following the execution of such a contract. 14 SECTION 5. Transactions Tax Rate. For the privilege of selling tangible persona is property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the 16 City at the rate of 0.50% of the gross receipts of any retailer from the sale of all tangible personal 17 property sold at retail in said territory on and after the operative date of this ordinance. 18 SECTION 6. Place of Sale. For the purposes of this ordinance, all retail sales are 19 consummated at the place of business of the retailer unless the tangible personal property sold is 20 delivered by the retailer or his agent to an out-of-state destination or to a common carrier for 21 delivery to an out-of-state destination. The gross receipts from such sales shall include delivery 22 charges, when such charges are subject to the state sales and use tax, regardless of the place to 23 which delivery is made. In the event a retailer has no permanent place of business in the State o 24 has more than one place of business, the place or places at which the retail sales are 25 consummated shall be determined under rules and regulations to be prescribed and adopted by 26 the State Board of Equalization. 22 SECTION 7. Use Tax Rate. An excise tax is hereby imposed on the storage, use o 28 other consumption in the City of tangible personal property purchased from any retailer on and 2 i after the operative date of this ordinance for storage, use or other consumption in said territory a 2 the rate of 0.50% of the sales price of the property. The sales price shall include delivery charge 3 when such charges are subject to state sales or use tax regardless of the place to which delivery is a made. s SECTION 8. Adoption of Provisions of State Law. Except as otherwise provided in 6 this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 0 7 Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with 8 Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made 9 part of this ordinance as though fully set forth herein. 10 SECTION 9. Limitations on Adoption of State Law and Collection of Use Taxes. I i i adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: 12 A. Wherever the State of California is named or referred to as the taxing agency, the 13 name of this City shall be substituted therefor. However, the substitution shall no a 14 be made when: 15 1. The word "State" is used as a part of the title of the State Controller, State 16 Treasurer, State Board of Control, State Board of Equalization, State Treasury, 17 or the Constitution of the State of California; 18 2. The result of that substitution would require action to be taken by or again 19 this City or any agency, officer, or employee thereof rather than by or agains 20 the State Board of Equalization, in performing the functions incident to the 21 administration or operation of this Ordinance. 22 3. In those sections, including, but not necessarily limited to sections referrin 23 to the exterior boundaries of the State of California, where the result of the 24 substitution would be to: 25 a. Provide an exemption from this tax with respect to certain sales, storage 26 use or other consumption of tangible personal property which would no 27 otherwise be exempt from this tax while such sales, storage, use or othe 28 -3 I consumption remain subject to tax by the State under the provisions of Pan 2 1 of Division 2 of the Revenue and Taxation Code, or; 3 b. Impose this tax with respect to certain sales, storage, use or othe 4 consumption of tangible personal property which would not be subject to tax 5 by the state under the said provision of that code. 6 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715 7 6737, 6797 or 6828 of the Revenue and Taxation Code. 8 B. The word "City" shall be substituted for the word "State" in the phrase "retaile 9 engaged in business in this State" in Section 6203 and in the definition of tha 10 phrase in Section 6203. I SECTION 10. Permit Not Required. If a seller's permit has been issued to a retaile 12 under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall no 13 be required by this ordinance. 14 SECTION 11. Exemptions and Exclusions. 15 A. There shall be excluded from the measure of the transactions tax and the use tax 16 the amount of any sales tax or use tax imposed by the State of California or by 17 any city, city and county, or county pursuant to the Bradley-Bums Uniform Local 18 Sales and Use Tax Law or the amount of any state-administered transactions o 19 use tax. 20 B. There are exempted from the computation of the amount of transactions tax the 21 gross receipts from: 22 1. Sales of tangible personal property, other than fuel or petroleum products, t 23 operators of aircraft to be used or consumed principally outside the count 24 in which the sale is made and directly and exclusively in the use of such 25 aircraft as common carriers of persons or property under the authority of the 26 laws of this State, the United States,or any foreign government. 27 2. Sales of property to be used outside the City which is shipped to a poin 28 outside the City, pursuant to the contract of sale, by delivery to such poin -4 I by the retailer or his agent, or by delivery by the retailer to a carrier fo 2 shipment to a consignee at such point. For the purposes of this paragraph 3 delivery to a point outside the City shall be satisfied: 4 a. With respect to vehicles (other than commercial vehicles) subject t 5 registration pursuant to Chapter 1 (commencing with Section 4000) of a Division 3 of the Vehicle Code, aircraft licensed in compliance with 7 Section 21411 of the Public Utilities Code, and undocumented vessel 8 registered under Division 3.5 (commencing with Section 9840) of the 9 Vehicle Code by registration to an out-of-City address and by 10 declaration under penalty of perjury, signed by the buyer, stating that 11 such address is,in fact,his or her principal place of residence; and 12 b. With respect to commercial vehicles, by registration to a place of 13 business out-of-City and declaration under penalty of perjury, sign 14 by the buyer,that the vehicle will be operated from that address. 15 3. The sale of tangible personal property if the seller is obligated to furnish the 16 property for a fixed price pursuant to a contract entered into prior to the n operative date of this ordinance. 18 4. A lease of tangible personal property which is a continuing sale of such 19 property, for any period of time for which the lessor is obligated to lease the 20 property for an amount fixed by the lease prior to the operative date of thi 21 ordinance. 22 5. For the purposes of subparagraphs (3) and (4) of this section, the sale o 23 lease of tangible personal property shall be deemed not to be obligate 24 pursuant to a contract or lease for any period of time for which any party t 25 the contract or lease has the unconditional right to terminate the contract o 25 lease upon notice,whether or not such right is exercised. 27 C. There are exempted from the use tax imposed by this ordinance, the storage, use 28 or other consumption in this City of tangible personal property: -5 1 1. The gross receipts from the sale of which have been subject to a transaction z tax under any state-administered transactions and use tax ordinance. 3 2. Other than fuel or petroleum products purchased by operators of aircraft an a used or consumed by such operators directly and exclusively in the use o s such aircraft as common carriers of persons or property for hire o 6 compensation under a certificate of public convenience and necessity issue 7 pursuant to the laws of this State, the United States, or any foreign s government. This exemption is in addition to the exemptions provided in 9 Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State o 10 California. 11 12 3. If the purchaser is obligated to purchase the property for a fixed price 13 pursuant to a contract entered into prior to the operative date of this la ordinance. 15 16 4. If the possession of, or the exercise of any right or power over, the tangible 17 personal property arises under a lease which is a continuing purchase o IS such property for any period of time for which the lessee is obligated to 19 lease the property for an amount fixed by a lease prior to the operative date 20 of this ordinance. 21 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, o other consumption, or possession of, or exercise of any right or power over. 22 23 tangible personal property shall be deemed not to be obligated pursuant to 24 contract or lease for any period of time for which any party to the contract o 2s lease has the unconditional right to terminate the contract or lease upon 26 notice, whether or not such right is exercised. 27 6. Except as provided in subparagraph(7), a retailer engaged in business in the 28 City shall not be required to collect use tax from the purchaser of tangible -6 I personal property, unless the retailer ships or delivers the property into the 2 City or participates within the City in making the sale of the property, 3 including, but not limited to, soliciting or receiving the order, either direct] 4 or indirectly, at a place of business of the retailer in the City or through an 5 representative, agent, canvasser, solicitor, subsidiary, or person in the City 6 under the authority of the retailer. 7 7. "A retailer engaged in business in the City" shall also include any retailer o 8 any of the following: vehicles subject to registration pursuant to Chapter 1 9 (commencing with Section 4000)of Division 3 of the Vehicle Code,aircraft 10 licensed in compliance with Section 21411 of the Public Utilities Code, or II undocumented vessels registered under Division 3.5 (commencing with 12 Section 9840) of the Vehicle Code. That retailer shall be required to collect 13 use tax from any purchaser who registers or licenses the vehicle, vessel, or 14 aircraft at an address in the City. 15 D. Any person subject to use tax under this ordinance may credit against that tax an 16 transactions tax or reimbursement for transactions tax paid to a district imposing 17 or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the 18 Revenue and Taxation Code with respect to the sale to the person of the property 19 the storage, use or other consumption of which is subject to the use tax. 20 SECTION 12. Amendments. All amendments subsequent to the effective date of this 21 ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use I 22 taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue an 23 Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue an 24 Taxation Code, shall automatically become a part of this ordinance, provided however, that no 25 such amendment shall operate so as to affect the rate of tax imposed by this ordinance. 26 SECTION 13. Enjoining Collection Forbidden. No injunction or writ of mandate or 27 other legal or equitable process shall issue in any suit, action or proceeding in any court again 28 the State or the City, or against any officer of the State or the City, to prevent or enjoin the i -7 i collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, o 2 any tax or any amount of tax required to be collected. 3 SECTION 14. Severability. If any provision of this ordinance or the application thereo 4 to any person or circumstance is held invalid, the remainder of the ordinance and the applicatio 5 of such provision to other persons or circumstances shall not be affected thereby. 6 SECTION 15. Effective Date.and Submission to Voters. This ordinance relates to the 7 levying and collecting of the City transactions and use taxes and shall take effect immediate) s upon its approval by the voters of the City. 9 SECTION 16. Amendment and Termination Date. The authority to levy the tax imposed io by this Ordinance shall expire seven (7) years after the Operative Date defined in Section 2 0 t i this Ordinance. However, as required by Article XIIIC of the California Constitution, no 12 amendment to this Ordinance may increase the rates of the taxes above 0.50% without vote 13 approval. 14 SECTION 17. Declaration. The proceeds of the taxes imposed by this ordinance may be 15 used for any lawful purpose of the City as authorized by ordinance, resolution or action of the 16 Mayor and Common Council. These taxes are not special taxes within the meaning of Section 17 1(d) of Article XIIIC of the California Constitution, but are general taxes imposed for genera 18 government purposes. 19 SECTION 18. Citizen's Advisory Committee. The Mayor and Common Council shat 20 create a Citizen's Oversight Committee, which shall review the expenditure of proceeds of the 21 taxes imposed by this Ordinance and report on those expenditures to the voters of the City a 22 least once a year. 23 SECTION 19. Urgency Ordinance to Take Effect Upon Adoption 24 A. Declaration of Urgency 25 This is an urgency ordinance of the City of San Bernardino adopted pursuant to the authority 26 described in Section 3 (A) above, and San Bernardino City Charter Sections 31 and 121. Save as 27 to those matters set forth herein requiring voter approval, this ordinance shall take affect upon 28 adoption by a two-thirds (2/3) vote of all members of the City Council. This ordinance is _8 1 adopted for the immediate preservation of the public peace, health, or safety. Said finding o 2 urgency is based on the recitals set forth immediately below all of which are hereby found to be 3 true. 4 B. Recitals 5 1. On February 20, 2009,the Mayor and Common Council approved adoption 6 of Resolution No. 2009-36, proclaiming the existence of a local fiscal emergency in the City o 7 San Bernardino. Resolution No. 2009-36 is hereby incorporated herein by reference. 8 2. On May 3, 2010,the Mayor and Common Council approved adoption of 9 Resolution No. 2010-87, proclaiming the existence of a local fiscal emergency in the City of San 10 Bernardino. Resolution No. 2010-87 is hereby incorporated herein by reference. 11 3. The fiscal conditions giving rise to the emergency described and 12 anticipated by Resolutions 2009-36 and 2010-87 persist at this time within the City of Sar 13 Bernardino and are expected to continue for the foreseeable future. 14 4. The City of San Bernardino has adopted a budget for Fiscal Year 2010- 15 2011 which anticipates new sources of revenue to relieve a $24.3 million difference betwee 16 projected revenues and expenditures. 17 5. Absent new revenues, as anticipated by this ordinance, the City is unable to 18 provide general fund services, including police and fire services, street maintenance, street light 19 maintenance, and similar services at levels sufficient to avoid harm to the health safety an 20 welfare of the community. 21 SECTION 20. Execution. The Mayor and City Clerk are authorized to subscribe this 22 Ordinance where indicated below to evidence its approval by the voters of the City. 23 24 25 26 27 28 -9 I AN URGENCY ORDINANCE OF THE CITY OF SAN BERNARDINO IMPOSING A GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE 2 STATE BOARD OF EQUALIZATION PURSUANT TO REVENUE AND TAXATION CODE SECTIONS 7251 ET SEQ.,SUBJECT TO VOTER APPROVAL AND 3 PROVIDING FOR SUNSET OF THE TAX AND THE CREATION OF A CITIZENS' 4 OVERSIGHT COMMITTEE, AND DECLARING THE URGENCY THEREOF 5 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and 6 Council of the City of San Bernardino at a meeting thereof,held on the day of 2010, by the following vote,to wit: 8 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 9 10 MARQUEZ t 1 DESJARDINS 1z BRINKER 13 SHORETT 14 1s KELLEY 16 JOHNSON 17 MCCAMMACK 18 19 Rachel Clark, City Clerk 20 21 The foregoing Ordinance is hereby approved this day of , 2010. 22 23 PATRICK J. MORRIS, Mayor 24 City of San Bernardino Approved as to form: 25 JAMES F. PENMAN 26 City orney 27 By: P/Hiyy 28 10