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HomeMy WebLinkAboutRES-24-7417 (SALES TAX ADD TO BALLOT)Page 1 of 12 RES-24-7417 CITY OF HERMOSA BEACH RESOLUTION NO. RES-24-7417 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, CALLING FOR A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, FOR THE PLACEMENT OF AN ORDINANCE ON THE BALLOT TO ENACT A LOCALLY CONTROLLED GENERAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF THREE-QUARTER CENT (3/4 ¢) PURSUANT TO CALIFORNIA PROPOSITION 218 WHEREAS, the City Council of the City of Hermosa Beach (“City”) is authorized to levy a Transactions and Use Tax (“sales tax”) for general purposes pursuant to California Revenue and Taxation Code section 7285.9, subject to approval by a majority vote of the electorate pursuant to Article XIII C, section 2 of the California Constitution (“Proposition 218”); and WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be called and held in the City of Hermosa Beach on November 5, 2024; and WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place local measures on the ballot to be considered at a Municipal Election; and WHEREAS, the City Council would like to submit to the voters at the November 5, 2024 General Municipal Election a measure enacting a locally controlled general transactions and use tax at a rate of three quarter cent (3/4 ¢) on the sale and/or use of all tangible personal property sold at retail in the City until it is ended by voters, as more specifically set forth in the attached proposed ordinance adding Chapter 3.48 to Title 3 of the City’s Municipal Code; and WHEREAS, the ¾ cent sales tax is a general tax, the revenue of which will be placed in the City’s general fund and will be used to pay for important general City services; and WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition 218, an amendment to the State Constitution which requires that all general taxes which are imposed, extended or increased must be submitted to the electorate and approved by a majority vote of the qualified electors voting in the election; and DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 2 of 12 RES-24-7417 WHEREAS, pursuant to Proposition 218 (California Constitution, Article XIII C, § 2(b)), the general rule is that any local election for the approval of an increase to a general tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government; and WHEREAS, the next regularly scheduled general election at which City Council members are to be elected is November 5, 2024; and WHEREAS, pursuant to Government Code section 53724 (“Proposition 62”) and Revenue and Taxation Code section 7285.9, a two-thirds (2/3) vote of all members of the City Council is required to place the Measure on the November 5, 2024 ballot; and WHEREAS, the ordinance to be considered by the qualified voters and the terms of approval, collection and use of the general sales tax are described and provided for in the ordinance/measure attached hereto as Exhibit “A” (the “Measure”) and by this reference made an operative part hereof, in accordance with all applicable laws. WHEREAS, pursuant to Government Code section 53724 (“Proposition 62”) and Revenue and Taxation Code section 7285.9, a two-thirds (2/3) vote of all members of the City Council is required to place the Measure on the November 5, 2024 ballot; and WHEREAS, on February 15, 2024, the City Council considered the placement of this Transactions and Use Tax (“sales tax”) for general purposes on the upcoming November 5, 2024 ballot and directed City staff to make certain changes to the ordinance and ballot measure question. The ballot measure read into the record at the meeting was in excess of the statutory limit of 75 words (77 word ballot measure question). In order to avoid any confusion, this resolution contains the updated ballot measure question that conforms to the 75-word limit, updates the ordinance with the changes requested by the City Council and replaces any previous resolution related to this Transactions and Use Tax (“sales tax”) for general purposes. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. Incorporation of Recitals. The foregoing recitals are true and correct and are hereby incorporated and made an operative part of this Resolution. DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 3 of 12 RES-24-7417 SECTION 2. Calling of Election. Pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Hermosa Beach, California, on Tuesday, November 5, 2024, a General Municipal Election for the purpose of submitting the Measure attached hereto as Exhibit “A” and incorporated herein by this reference to the qualified electors of the City. SECTION 3. The City Council, pursuant California Elections Code Section 9222, hereby orders that the following question be submitted to the qualified electors of the City of Hermosa Beach and printed on the November 5, 2024 General Municipal Election ballot: Shall the measure protecting essential services such as police, crime prevention, parks, streets and sidewalks, beaches, cleaning of public areas, addressing homelessness, schools, supporting local businesses, and for other general governmental use by enacting a 3/4¢ transaction and use (sales) tax providing approximately $3,000,000 annually, with a sunset clause 20 years from the effective date, or until ended by voters, with annual audits, a citizen oversight committee and all funds staying local, be adopted? YES NO SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and directed to coordinate with the County of Los Angeles Registrar- Recorder/County Clerk to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 6. Notice of the election is hereby given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 7. Placement on the ballot. The full text of the Measure shall not be printed in the Sample Ballot Booklet, and a statement shall be printed in the ballot pursuant to Elections Code § 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the City Clerk. SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the General Municipal Election to be held on Tuesday, November 5, 2024, file with the Board of Supervisors and the Registrar-Recorder/County Clerk of the County of Los Angeles, State of California, a certified copy of this Resolution. DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 4 of 12 RES-24-7417 SECTION 9. Public Examination. Pursuant to California Elections Code § 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The City Clerk shall post notice in the Clerk’s office of the specific dates that the examination period will run. SECTION 10. The City Clerk is hereby authorized and directed to appropriate the necessary funds to pay for the City’s cost of placing the Measure on the election ballot. SECTION 11. That the vote requirement for the measure to pass is a majority (50% + 1) of the votes cast. SECTION 12. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 13. The City Council authorizes the City Clerk to administer said election and all the City shall reimburse Los Angeles County for all reasonable and actual election expenses upon presentation of a properly submitted bill. SECTION 14. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity. SECTION 15. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this Resolution and enter it into the book of original Resolutions. PASSED, APPROVED, and ADOPTED this 12th Day of March, 2024. Mayor Justin Massey PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM: __________________________________ __________________________________ Myra Maravilla, Patrick Donegan, City Clerk City Attorney DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 5 of 12 RES-24-7417 Exhibit “A” Chapter 3.48 - Transactions and Use Tax Sections: 3.48.010 - Purpose. 3.48.020 - Contract With State. 3.48.030 - Transactions Tax Rate. 3.48.040 - Place of Sale. 3.48.050 - Use Tax Rate. 3.48.060 - Adoption of Provisions of State Law. 3.48.070 - Limitations on Adoption of State Law and Collection of Use Taxes. 3.48.080 - Permit Not Required. 3.48.090 - Exemptions and Exclusions. 3.48.100 - Amendments. 3.48.110 - Enjoining Collection Forbidden. 3.48.120 - Duration of Tax. 3.48.130 - Citizens’ Oversight Committee. Sections: 3.48.010 - Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 6 of 12 RES-24-7417 manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record-keeping upon persons subject to taxation under the provisions of this ordinance. 3.48.020 - Contract With State. Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.48.030- Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of three quarters of one percent (3/4 %) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 3.48.040 - Place of Sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration. DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 7 of 12 RES-24-7417 3.48.050 - Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of three quarters of one percent (3/4 %) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 3.48.060 - Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 3.48.070 - Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: 1. The word “State” is used as a part of the title of the State Controller, State Treasurer, California Victim Compensation Board, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 8 of 12 RES-24-7417 which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In reference to Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word “city” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 of the Revenue and Taxation Code and in the definition of that phrase in Section 6203. 1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder. 3.48.080 - Permit not Required. If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this ordinance. 3.48.090 - Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 9 of 12 RES-24-7417 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this subsection, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 10 of 12 RES-24-7417 for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this subsection, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 11 of 12 RES-24-7417 soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.48.100 - Amendments. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. 3.48.110 - Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.48.120 - Duration of Tax. The tax imposed by this chapter shall continue for a period of twenty (20) years from its operative date or until this ordinance is repealed. DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 Page 12 of 12 RES-24-7417 3.48.130 - Citizens’ Oversight Committee. The City Council hereby establishes a citizens’ oversight committee to monitor the expenditures of revenue collected pursuant to this Chapter only. The make- up, terms and specific duties of the oversight committee shall be set forth in a resolution adopted by the City Council. Such a resolution may be amended by resolution of the City Council. DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365 State of California ) County of Los Angeles ) ss City of Hermosa Beach ) March 14, 2024 Certification of Council Action RESOLUTION NO. RES-24-7417 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, CALLING FOR A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, FOR THE PLACEMENT OF AN ORDINANCE ON THE BALLOT TO ENACT A LOCALLY CONTROLLED GENERAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF THREE-QUARTER CENT (3/4 ¢) PURSUANT TO CALIFORNIA PROPOSITION 218 I, Myra Maravilla, City Clerk of the City of Hermosa Beach do hereby certify that the above and foregoing Resolution No. RES-24-7417 was duly approved and adopted by the City Council of said City at its regular meeting thereof held on the 12th day of March 2024, and passed by the following vote: AYES: MAYOR MASSEY and COUNCILMEMBERS SAEMANN, DETOY and JACKSON NOES: MAYOR PRO TEMPORE FRANCOIS ABSTAIN: NONE ABSENT: NONE ________________________________ Myra Maravilla, City Clerk DocuSign Envelope ID: E6165F8C-D2A7-47BB-B4FE-8A046E7CF365