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HomeMy WebLinkAboutCity of Oroville Amendment to Proposed Sales Tax Measure xt;1I['W 'X 'Y "� 9 Z, y CITY OF OR V'ILLE OFFICE OF THE CITY ADMINISTRATOR 1735 MONTGOMERY STREET • OROVILLE, CA 95965-4897 Y. 530-538-253: Fax 530-538-2468 August 17, 2016 Mr. Pau n Administrative Officer, Butte County 25 County Center Dr., #200 Oroville, CA 95965 Re: Amendment to Proposed Sales`fax Measure Bear Paul, As you are likely aware, on .lune 2.1, 2016, the City of Oroville approved a resolution calling for the consolidation of the general municipal election with the statewide election to be held on November 8, 2016, which included a proposed sales tax measure. The resolution and proposed sales tax measure were delivered to the County Elections Department for consideration by the Board of Supervisors for consolidation and placement on the ballot. The calling for the election was done pursuant to Elections Code section 10403(a), which provides, in pertinent part, "Whenever an election called by a district city, or other political subdivision for the submission of a question, proposition, or office to be filled is to be consolidated with a statewide election, and the question, proposition, or office to be filled is to appear upon the same ballot as that provided for the statewide election, the district, city, or other political subdivision shall, at least 88 days prior to the date of the election, file with the board of supervisors, and a copy with the elections official, a resolution of its governing board that does all of the following: (1) Requests that the district, city, or other political subdivision election be consolidated with the statewide election. (2) Sets forth the exact form of the question, proposition, or office to be voted upon at the election, as it is to appear on the ballot. The question or proposition to appear on the ballot shall conform to this code governing the wording of propositions submitted to the voters at a statewide election. (3) Acknowledges that the consolidated election will be held and conducted in the manner prescribed in Section 10418." (underlining added.) Mr. Paul Hahn August 17, 2016 Page Two The calling of the election and the request for consolidation complied with Elections Code 10403(a). On July 26, 2016, the Board of Supervisors considered and approved Item No. 3.12, entitled "City of Oroville Requests Consolidation of General Municipal Election and Measure on Ballot." A copy of Item 3.12 is, attached as Exhibit A for your reference. On August 12, 2016, the City of Oroville amended the text of Resolution 8516.1 to add five words to the question to be placed on the ballot. The added words are, "generating approximately $3.6 million annually" which were added to give the voting public more clarity related to the proposed sales tax measure. In all other respects, the resolution was identical to the one passed on June 21, 2016, A copy of the amended Resolution 8516.1 is attached as Exhibit B for your reference. The amendment to Resolution 8516.1 was done pursuant to Elections Code section 9605�, which provides, in pertinent part, "The order of election shall be amended or withdrawn upon the filing of a resolution by the legislative body stating the specifics concerning the amendment or withdrawal. The resolution shall be filed with the election official not later than the 83rd day prior to the election." The Council properly amended the resolution and the amendment did not nullify the prior calling of the election by the City or the approval of consolidation of the election by the Board of Supervisors. In fact, the action taken on August 12, 2016 complied with Elections Code sections 9605 and 10403(a) in all respects. The amended Resolution 8516.1 was presented to the County Elections Department on August 12, 2016. Upon presentation of the documents to the County, we were asked to prepare this correspondence to you to finalize this matter. We believe that this matter is now resolved and the measure, as amended, can be placed on the November 8, 2016 ballot without further action on behalf of the Board of Supervisors. We are grateful for the efforts of the County in conducting the consolidated election. If you have any questions regarding this matter, please contact me as soon as possible. Very truly Pours, Ru nald ,t . �u Acting City Administrator cc: Candace J. Grubbs EXHIBIT "A" Clerk,of the Board Use Only Butte County Boardof Supervisors Agenda Item: Benda Transmittal 3.12. +CA tFC,RYrh Subject: City of Oroville Requests Consolidation of General Municipal Election and Measure on Ballot Department: County Clerk-Recorder Meeting Date Requested: July 26,2016 t Contact: Candace J.Grubbs Phone: 53$7762 Regular Agenda F1 Consent Agenda Department Summary: (Information provided in this section will be included on the agenda.Attach explanatory memorandum and other background information as necessary). The City Council of the City ofOroville submits Resolution 8516.1 (attachment 1),calling for a General Municipal Election and requesting consolidation of of said election with the statewide Consolidated Presidential General Election to be held on November 8, j 2016.,for the purpose of electing three(3)City Council Member positions,each serving a four year term ending December 2020. In addition,the City requests consolidation of one ballot measure question to be submitted to the voters relating to approval of Ordinance No.1816,regarding a temporary sales tax increase of one percent If a majority of the votes cast on the measure are'"yes", 1 the measure will be approved. j I Fiscal Impact: Costs incurred during the November 8,2016 General Election are prorated on the basis of the level of services provided to each participating entity that is consolidated on the ballot. The expenditures and anticipated revenues are appropriated in the 2016-17 fiscal year budget. The City will reimburse the County for costs. Personnel Impact: No personnel impact. Action Requested: Approve Consolidation. i 1 Administrative deice Review: Shari McCracken,Deputy Chief Administrative Officer EEF"!;TV 1�,A 3 J T FZIJ,E I '5 Mtachrnent 1TIMIAl"'l!"............. 1 (")F OROVRA-Ea,NC RESOLL1110N NO, 8516 1 a kh A RESOLUTION OF'THE CITY' (s�CIJINCII(- OF PtlE CITY OF OROVILLE, CALIFORNW RE,C,,,,)UEST11*G TFiE BOARD OF S(UPERVfSORS OF THE COU N"I'Y OF eu'rnE TO CONSOLIDATE AGENEld`,?AL PAUNKAPAL lEL,.EC'TK)N '1'0 BE �,iEi.() ON N(')VEMBER 8, 2016, VKTH THE STATEARDE GENERAL EIJ[ECTION T(') 13E �-IELD PURSUAN'TTO SECT�OPJ 10403 CW THE QAi-�FORNIA ELECT IONS (""ODE WHEREAS, the Cly Cowidl of Me CRY ()& c,,,.,Ae,,J Geneii,.a4 K be KaRl on 1 6vember 8 2016 N,),r tl-�e of the e�ect��:)n of Onee Q members: of fele &hy( (' )iif[(. I flUll tfle: V eNZIC)f fULHyears arlil 'WHEREAS, the Cly Councd m subnilthng to INR Were the quesbon alahng ho aggRwal of Or Jfiriance dl4o 1811 an Cklrnaricy,,,,, ,arfi-hng Chaf,-,Af-ir 3 18 tio the �,4uncilpaCa dr,-:,,, FZe3arding ,,i 'fiansacoonsand Use Tax to be AcJrntimsterecl by the State Ba,ard of afld WHEREAS, it is desaai�,rhe that Generaprvlur,,d6pap Epect�on be conscikda�ed I,Adth Statevolde Gener4 �.,db.6b;.a iii ru, flc� be hek:l the sarne dab and fl,,iat wiflhn flle the 1weWwAs pohng Qces and eWchmv afficers of the two AwAhns be the same. ak tat Me Butte County Chrk-ReandeNRegisArai of Volers of tt"re County of Butte carrvass t.he reKHTl,";, Of tfl(� Geneiap M,,,rnwpal Elchon and = the ehecborr, Q hekJ & aa respects If ufiere oven,,-,, on ,y ,,)ne eiection *DVY, TPEREFORE, THE C17"Y CO(JNCIL., OF—THE (Xr'Y OF OROVILLE DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Secton 1 , 6 h pumuent to the squke'nr rits of §10403 of the Cakforma E�,Et�ons, the Board of Supvvmofs of t�rie (,m.iii-ity c4 Butte s hentby requested to consent and agiee to the consoddabon of a Genera � %.,inidpaC Epecbov� \0�ith thE� SGat&Ahde (,;eneraEiectuon On Tuesday Novembe 8, 2016, fl,,,x, tl'fe PLH'l)O$e of the eldmw"l Kee (3) hAembers 0 the Cly (A)rmc0 for the �eirnI cif yeas. Sectan 2. ThW a measure is to appear on Me baHot as faHows ShW "DVdmanc(.", t,,,do i8 v a Tepwr,.)rar,r nmose of one pment riJ lhat automawhy expoes r six years and that eslabWes a ahzen y womgm cammmee m; enswe Om," zrro Nwos WE Met W PleSerVe Phbk S&VHMS mh as ht r^ 'Cpar arlcf inannnanne Same and hurn.,irl tlescurces sd-*rvw�d,-,s fc,1 (�.Wy be ada0e?' Section 3, lhat the proposed compNown text of the fneas;Ke vub&Ued lithe ,,,oters P attached as ExhMq A, whK shaR tat panted in fuH MY, Secfion 4, Fh,,d the vr-Ae fol the k-) pass 1(� �I Malori:vy of v s ca"" Section 5,. 1 hat the, Butte County cf Volo,-_-,-rs i,,; ,)uth06ze(:I to (";anvass Ihe returris of ffie Geneial Muriicipai Election 7h(-,,: election be. hekj in 0 as if theme, were oNy one election, and onr y one four of ballot sh,all tip used The wW be held and conducted in acc;ordance w4h the PWV156W`� Of 1,IW rC()Ulath'ig the statewide or stalk W eiectiofl, Section 6. That the Board of Supe ms is re.quested to rssue instruc6ons to the 13�,Me Counly t:lefk.Recorder/Registrar of Voters to take, any and all steps necessary for the holctuig of the cons6jdc ,.ate d edection, Section 7, That they tfit.y of Oroville, iecognizies that addibonal costs will be mcurre,d by the COUnty by reason of arts consnfidaion ard agrees to reiriburse the CGUIlty for any custs. Section 8. 'Fhal the Cty Ce!rk Ns heieby directe,x.l to fie a cerfified copy of this ReS6L,Iti0rr with the Board of Supervisors, and the B U t I E_- (_,'ounty C,I e,r k,- Recorder/Registrar of Votes of the County o(' BUtt(-`. Section 9. IJat the City Clerk s['wY certify to the pa�,,rsage and adoption of ti'-rase ReSOILItion and enter rt into throe Bmok of 0iginal Resolutions PAS , APPROVED AND ADTED by the OrOOH6 City C0Ljnc0 at a regWar meeting on June 21, 2016, by the foHowing votle, A)(E S Councif Meriib&s Berry, Del Rosari(.), Hatley, Pttn)an, Sirripson, is Mayor Chan WHujx, Mayor Dafflrnc,:ier NOES None ABSTAlN- None ABSENT-. None Linda L DaWrneier, Mayor APPROVED AS TO FORK ATTEST� Sc('.)ft E Attorney doral k s.ast, Acting City Clerk _ CARTMED As a1 TRUE MR r � � a1r _.._ Ni(,"),tttt L t. ` t t�:,1 R li�.aTrAll td Netr 't f^wt C t:. 18,16 AN ��a R D M .NC E OF IH E C G T Y C O'U M I� OF THE CP Y OF ()lR 0V R.L E AMED i N G D At:ld.adNti;' CN°°daa PTER 3 18 TO TIN (.lftOVIL..t, E MUNICIPAL CODE R;EG.t t'td".nd t:1 tt Tt"tA,6 „w' Al IONS AND USETAX T13 BE ADI INtSTE t,.D BY I Ht dATE T_ BOA tID OF" EamtULVA l..R.d l Tho6 . 4 P" �"., ,. ��d�r�.w °a,=:rti>t Fa=; .�� its martyr o,� �.� t.'vfaQA�! `. t^Ma"t�� r� a..„airfos n@@ dc) uraam aaau"� asfoose t ,!,,t1 ... a., i aJ:a,er 3 '18 is hemby added Q the Ccktle ko {,ead as Wows E rr,d r:araar^f Fr ans;'ictrons and Us 1µaax Sechons 3 18,02t:f a;tp llerabve Dw " 18 04(): corltract st-lt 18 050 .1,.r nsaac0on G;rix R,--ate .18 060 Ra �:� of sak- 118 75 Uzens Ove..r~zIg: ht'. CaC C*V@".nVft.ee MUM UM adoption of Ps o0dean s of State p._a 115190 Utna tations on, Adopficin of State Law and ,-,Ng ectucn of m.. se Taxes w 18 100 Perua°rit Nccat Re(jLJred 118 110 Wa"aat,ataaans atad Exclusions .18.1 RC1 Affle, drrents 118130 L:aaja.c ri� rc1 C ,GVectir,u"r p."rarrlhiba ted ff ,d tt11 tT M Y-d°aGl tµwrrt na»ance shah be known as the G a'`rnT.ac)aara;y Transactions and UseTax Ofdinance -i-he Coy c'rtl QwAl&le hc aeunTxer MH be a apNai Cwt d`t% a,r1iw°aana., shalt be appdaanaaWa: an the crac c,)r°por,,.ata d ,rrea of the t:.,itat. 318.020 Operative tive apt a, r)era't;ive Date" means the AM day of the first, callendar awta.aaate: cornmencing rnore than 110 days An the adaption of t,hs oi[dinance, tire: date of sw.^ti,xh rai`Opti+;gra t,eia"art as set 1d;arlira be4,taca'a. TWs a,rdhanc'e, a c°,ta,pte.;cd t¢, .ac8ieve the ta.,pla,a a&g, Hamid c~.dwects that the barraaassrr: is hc.rr' `Of be interpreted in ccar°et to a acccc`,unpfish , aNLa es A. To maintain and preserve City of Oroville public services, including police protection, fire suppression, vehicle repair and maintenance, finance analyst and human resources services with the City. B. To impose a retail transactions and use tax in accordance with the provision 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. C. 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. D. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. E. 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. 3.18.040 Contract with State Prior to the operative date, the City shall contract with the State Board of Equalization 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 State board of Equalization prior to the operative date it shall nevertheless so contract and in such case the operative date shall be the first day of the first calendar quarter following the execution of such contract. 3.18.050 Transactions Rate Tax For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the incorporated area of the City at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said area for six (6) years from the operative date of this ordinance. 3.18.060 Place of Sate 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 VOroville r Transactions tax ordinance revised.f retailer or his /her or its agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. T he 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 of California 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 State Board of Equalization. 3.18.070 Use Tax Rage A complementary tax is hereby imposed on the storage, use, or other consumption in the incorporated area of the City of tangible personal property purchased from any retailer for six (6) years after the operative date of this ordinance for storage, use, or other consumption in such area at the rate of one percent(1%)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. 3.18.075 Citizens Oversight Committee A. The City Council shall establish and appoint a Citizens Oversight Committee. B. The Citizens Oversight Committee shall consist of a nine-member board of residents and/or business owners and two elected City Council members of the City of Oroville. C. The purpose of the Citizens Oversight Committee shall be to meet with the City Department Heads during the preparation of each fiscal year budget until the ordinance sunsets, to make recommendations to the City Council regarding how the proceeds from the implementation of the ordinance will be allocated for the ensuing budget year. The committee shall make recommendations to the Council to provide for local public services, including but not limited to police protection, fire suppression, vehicle repair and maintenance, finance analyst and human resources services that will improve the quality of life for residents and businesses within the City of Oroville. The committee shall meet at least quarterly during the fiscal year to ensure that the revenue generated by the ordinance is allocated and disbursed in accordance with the City budget. All quarterly and annual budget reports from the committee shall be published on the City of Oroville website prior to Council adoption of the budget and will be available for public review. 3.18.080 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. 3.18.090 Limitations of Adoption of State Law and Collection of Use Taxes In adopting the provisions of Part 1 Division 2 of the Revenue and Taxation Code- YOroville Transactions tax ordinance revised. } A. Wherever the State of California is names 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, Victim Compensation and Government Control Board, State board of Equalization, 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 State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance_ 3. In those sections, including but not necessarily limited to sections referring to the exterior boundaries of the State of California where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code or, b. Impose this tax with respect to certain sales, storage use or other consumption of tangible personal property which would not be subject to tax by the state under the provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The work "City" shall be substituted for the word "State" in the phrase "retainer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.18.100 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 transaction's permit shall not be required by this ordinance. 3.18.110 Exemptions and Exclusions A. There shall be excluded from the measure of the transactions tax and the use tax in 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 shall be exempted from the computation of the amount of transactions tax the gross receipts from: {/Oroville Transactions tax ordinance revised.) i. 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 City pursuant to the contract of sale by delivery to such point by the retailer or his/her or its agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purpose of this paragraph, delivery to a point 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 Chapter 2 of Division 3.5 commencing with Section 9840) if 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 the ordinance. 5. For the purposes of subsections (3) and (4) of this section the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any State-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as 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 VOrmlle Transactions tax ordinance rev;saed ) Statf---a oany foiicryn govemmeril 1hr') rs ir) a(AeJition to the exerfir,,)t4onF, provided en Sections 61366 and 636(3 1 of the Flevenue and taxation (,,(,)de of lhwpr State of C:',a f r f c)I rl I'a 3 If th& f)LJO'NlSk. is Obligated to Purchase tine properly for as fixed lance pursuarfl to into pr�or t a f�_�e ()Perat�Vp �j ccrntract entered io fr lNs on. inaince, zif the possessson of ot the exercise of any i ifjht or power over the tangible personal pioperty anises under as lease which is a confin.r,sing purchase of such property for any period of flirne for whkJi the Iessee is oLACjated to Hie proj,�erly fol arry arilourit fixi,,A by a lease prior to the operative, date of fl,ris ordrnarlce 5- For the purposes, of subsections (3) and (4) of this skjb-secfion, storage, use, or other cora sura p6)n or possession of or exericise of any right or power over tangiUe pefsorial property shaH f:je deernerf riot to be obligallerd purse rant to a contract Or wease for ary period of tinte for wt-rich any party to Vw) contract of lease has the unir,,ondibonaI rcgh't to terni1nate the contract or 9ease upon notice, whether or riot such right is exercised 6. Except as provi(.Jed if) SiLlbparayfaph (7), as retailer engaged in business irr the City shall not be required to collect use tax from the I")urchaser of tangiNe personal properly, unless the retailer ships or delivers the property in the City of parficipates, witl"iin the City in making the sak, of the property including, bi.A not limited to sofidfi'nq or receivirig the order, either di"recfly or ind4-ecfly at a f.flace of business of the retaIleir in the City or through any representative, agent, canvasser, SOkitOf SUbsidiary, or person 0 the City under the autho6ty of the retailer. 7, "A retailer engaged in business in the City' shall Mso include any retailer of any of the foHowing, vehicles subject to registration pursuant to Chaptei 1 (commencing with Section 4000) of Division 3 of the Vehice Code, aircraft licensed in compliance with Section 21411 of th""' Ptriblic Utilities Code, or undOCUmerrted vessels tegistered Under Chapter 2 of Division 3,5 (coi,nmendrig with secU'cin 984t) of the Vehicle Code. That retailer shall be reqUira,,d to collect use tax from any purchaser who registers or licenses the vel.'ticle, vessel, or aircraft at an address in the City D, Any person subject to use tax tinder this ordinance may credit against that tax any transac,,tions tax tare rein,rbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pur'SUant to Dart 1 6 of Division 2 of the Revenue anid `faxafion code with respect to the sale to the r,,rerscrn of the, property the storage, use OF, other constrinption of which is subject to thus Use tax, 3.18,130 Amen dmen t.% All amendaients sut)sequent to the effective date of tl"ie ordinance to Part 1 of [)Msion 2 of the Revenue and Taxation Code relabng to sales arid use 'taxes and which are riot consistent with F)art 1,6 and Part 1 7 of Divisk)n 2 of the Rt- VenUe arid `faxafion Code, and all amendments to Part 1 ,6 and Flart 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. 3.18.140 Enjoining Collection Forbidden No injunction or writ of mandate or other legal or equitable process shall issue in any suit action or proceeding in any court against the State or the City or against any officer of the State or the City to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. SECTION 2. SEVERABLILITY. If any section, subsection, sentence, clause, phrase portion of the application thereof to any person or circumstance of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate distinct and independent provision of such ordinance and shall not affect the validity of the remaining portions thereof. SECTION 3. CEQA COMPLIANCE. The City Council finds and determines that the enactment of this Ordinance is not a "project" as that term is used in the California Environmental Quality Act ("CEQA;" Cal Pub. Resources Code Section 21000 et seq.) or the State CEQA Guidelines(Cal.Code of Regs. Title 14, Section 15000 et seq.) Therefore no environmental assessment is required or necessary. SECTION 4. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon its approval by voters of the City. SECTION 5. TERMINATION DATE. The tax levied by this ordinance shall continue at the rate of 1% from April 01, 2017 until December 31, 2022. The authority to levy the tax imposed by this ordinance shall expire six (6) years from the operative date of this ordinance. SECTION 6. DECLARATION. The proceeds of the taxes imposed by this ordinance may be used for any lawful purpose of the City, as authorized by ordinance, resolution or action of the City Council. These taxes are not special taxes within the meaning of Section 1(d) of Article XIIIC of the California Constitution, but are general taxes imposed for general government purposes. SECTION 7. EXECUTION. The Mayor and City Council are authorized to subscribe this ordinance where indicated below to evidence its approval by the voters of the City. 1 i 1 1 1 YOrovilte Transactions tax oedinance revised. PASSED AND ADOPTED by the Oroviile City Council of the City of Oroville, County of Butte, State of California, on this 2151 day of June, 2016, by the following two-thirds vote: Ayes: Council Members Berry, Del Rosario, Hatley, Pittman, Simpson,Vice Mayor Chan Wilcox, Mayor Dahlmeier Noes: None Abstain: None Absent: None Linda L. Dahlmeier, Mayor APPROVED AS TO FORM: ATTEST: Scb6 E.`Huber, City Attorney nald RusV, Acting City Clerk {/Oroville-Transactions tax ordinance revised.} CERIAND ASA TAUE COPY EXHIBIT A r � .. � 03"±IE)1NA,NC,'E NO '316 G r� AN O 3° D I N A N(,,'Z OF 1"H CM(( COUNCIL OF .3 VI ft,1E ff"YO F (DRO z I't-I- M '.N D i N '"3 3 D!1 A DD t 3 G CHAPTER g118 TO s i��..,� .� �..� I a"���"�9��.,.p,.E I jj�'�,� ���✓i °�p���. C���0�� : R M� ,��' ' ������w ,:,gip .3 R A N C ,T V�> N;":Jl a k tl,u LJSEE E TAX 3 ) BE J ��i �I 3 @ 3 'I E-VIw E D '�»�°Y T � �� I. T �,. BOARD OF ECRIALKEA110IN The P,3ti"We of the (My of Qt; vjll ', ordain fohows: Cl uapQ 3 1; is s _uha.,4,xd Munf",4p ai Code to rewJ as CHAPI ER 3 18 a�n�V J VJse Ta,,,( `:'ae r h y V R s 311010,yy f.d�l Purpose 3 18030 �iw.a u a p o s'e. 3 18 04C) `'iii°th 3 18175 C�3u en's 3 18 080 A"3o3 k,4or1 of State Law 10090 Wi3a3 ons on Adoptior-t o3 St�aP:e at .t Go0eacr,, c')f Use Taxes 3 18 110 Exernp3fop^,.x F., +.Qa.&ryns 3 18 120 Arnendrnents 3 18 130 EQUAng CoBGe"..hm 3`a yAmMrM p: .°3A10 Me � n p T his .,�°_3�a�,.�a�a��G:� ����� f�R be ➢�o°���w ,�wa �� Pi�a�; � u..,�����n��>'".��� t� ,_�a�����a.,3i���ro.�� ff��� ��sm,. T �;4� O16uwnce. .3.h City ""�f Omv We heree�nafte shah t-ye cafled W"3°j this oup°3Wance shaN bepWo.G, " kL�- in, tht- "irea the D-at tbBo-?,p>r,kP"s the fI6s'r clay of first ca�endar cluah"te cnxP"M&"T@encwfa P"Y.Vore tirkan 110 ¢3ay:w a3t;H:"toe ad4, ptfon o3 this ofchnchr'e, the date of sa..ay"rGr adoption, being a4, set forth l:e bw T hk rrd[u Cance is adaMed to achlye tl-e foftmua g, and Weds that Vie p omians hereof be cV%alf;,VV.-md in ark;ev k"hosu . pu�pag^~e"" A, 10 rrlarntaul alrd pr("�S(,'�Ive City cA (")r(wWe publi(, se�vices, including protection fire suppression, f�.'�Paif and rnaintenance, finance anayst and human resnDure,e,!s spiwces Mth (fie (]Jly B Io irnpose a rt-,;tail transactions and use tax in ac,,coidance with the provi,'sion of ['art 1 6 (comrnenclng vAth Section 721,51,t of Division 2 of fine Rravenue and I'axation Code and Section 7285 9 of f'-'aQ '1 7 of Divisiart 2 wl-kh authorizes the City to adopt ths U-ix ordinance, which shall [)e operative, if as nnajorfty ()f the eectors, voting on the sneaSLJr ., vote to approve the irmposition of the tax at an election cafled foi that purpose. C To adopI as retail transactions wid LJSe tax ordinance that incorporates provisron!s identicM to those of the Sales and Use I @x Law, of the State of California insofar as those provusnons are not inconsistent Mth the requirernpnts and lifnitatr(:)ns conta4ied in Part 1 6 of cfrvision 2 of the Revel We and Taxalicn Cod; D� To adopt a retail transaefians and osetax (�xdHIWICE.' that imposes as tax and pmvtdEIS a rneasure therefor that can be admir"iIistered and c6lected by the State Board r .)f Equalization in as manner that adapts itself as ftflly as practicoble to, and requires the least possible deviation from the existing statutory and administrative procedures foliowed by ti-ue State Board of Equalization in administering and coHecting the California Stante Sales and Use Taxes, E, To adopt a retail transactions and use tax ordinance that can be administered in a manner that Ml be, to the greatest degree possible, consistent wtth the provisions of Part 1 6 of Division 2 ofthe Revenue and Taxation Cnde, niininiize the cost of collecting the trarsacfions and use taxes, and gat the sarne firne rrninimrze the burden of record keeping upon persons subject to taxafion Under the provisions of this ordinance. .1 .l C'ontract with State Prior to the operative (Jatle, tl'ie City shall contract with fl"ie State Board of Equalization to perfonn ail functions incident to the adminstration and operation of this transactions and use tax ordinance; provOed, that if the City shaN not have contracted with the State board of Equalization pficir to the operative date it shall nevertheless so coritract and in st.ich case the operative date shall bpe the first day of the first calendar quarter followkig the execution of such contract. 3,18.050 Transactions Rate Tax For the privOege of selling tangible personal property ait retail as tax is hereby impo�sed up ori aH retailers in tl-te incorporated area of the City at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personM property sold at retak in said area for six (6) years frorn the operative date of this ordinance 11 8. Place of Sale For the PLIfposes of this ordinance all retail sales are consurnmated at tile place of business of ff)En retailer unless the tangible persortal fro)roperty sol(I is delivered by the retailer or his /her or its 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 of California 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 State Board of Equalization. 3.18.070 Use Tax Rate A complementary tax is hereby imposed on the storage, Use, or other consumption in the incorporated area of the City of tangible personal property purchased from any retailer for six (6) years after the operative date of this ordinance for storage, use, or other consumption in such area at the rate of one percent (1%)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. 3.18.075 Citizens Oversight Committee A. The City Council shall establish and appoint a Citizens Oversight Committee. B. The Citizens Oversight Committee shall consist of a nine-member board of residents and/or business owners and two elected City Council members of the City of Oroville. C. The purpose of the Citizens Oversight Committee shall be to meet with the CifYs Department Heads during the preparation of each fiscal year budget until the ordinance sunsets, to make recommendations to the City Council regarding how the proceeds from the implementation of the ordinance will be allocated for the ensuing budget year. The committee shall make recommendations to the Council to provide for local public services, including but not limited to police protection, fire suppression, vehicle repair and maintenance, finance analyst and human resources services that will improve the quality of life for residents and businesses within the City of Oroville. The committee shall meet at least quarterly during the fiscal year to ensure that the revenue generated by the ordinance is allocated and disbursed in accordance with the City budget. All quarterly and annual budget reports from the committee shall be published on the City of Oroville website prior to Council adoption of the budget and will be available for public review. 3.18.080 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. 3.18.090 Limitations of Adoption of State Law and Collection of Use Taxes In adopting the provisions of Part 1 Division 2 of the Revenue and Taxation Code: UOroville- Tramictions tax Ordinance r(,+ns6d.) A '4,(Vhereve�- the St,,-,fle of refem-�d to c,,Is the tc,ixlfrg agcncy name, of this City sh�ffl 6 r. substifuled theefoc Homwer, the subsfittAm shaH not be 1 hf,r Word "Staf,�" 11:s us(-"Id "-"Is z'i PV�-,krt of the htle of 1he state controRei, 'State' Ifeisuier, Vtctrn,r (. ompensation and ("Yovernrnent Contr()r Board, Stale board C"A Equal�'z,i,Mon, Stak.,,, Treasury of the ConsWubon of the State of Calm orna, 2 '1 he result of that sof)sMubon wo(Ad r0-(,,j acfion to be, taken by or agairvst IN Oty or, any agency, offict,-,,r of er11jA0yeE! O)WEI(A fathEr t[)an by or against the Stale Board of Equeifization, in perfoviling aw, fune .-.fions inridenl to the administration or operation of this ofdmance 3. In those sections, McAuding bi-A not r1ecessarity himited to secfioris, ref rang to tlue exterior bOLIndcarjes of the State (,,)f CaHfornra where the result of the SUbStftUtiOn wmfld be to" & Provide an exemp6on from tfus tax with resipect to certain StOr8ge, Ll,,-,e or Dther CCNISUMP60t) Of fang ble personal property which viould not otheirMse be exen-ipt fion,i this tax while such saIes, storaqe, use or other, consUITIption rertlairy SUbject to tax by the Staab: Under the proOsions of Part 1 of [)Msion 2 of the Revier-We and Taxatrorl Code or, i�es, storage use or other conSUrT)Pfi0F1 Of b. Impose this tax with respect to, cr-��rt.acn s' tangiWe personal prof.)erty which woWd riot be subject to t,,-ix by the state under the priovrsion of that code 4, In Sections 6701, 6702 (except in the last: sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the RevenUe arid "Taxation Cor"Je B The work "City" shall be substitUted for the word "State" in the phrase "retainer engaged in business rn ths State" in Secfion 6203 and in the definition of that phrase in Section 6203. 118.100 Permit not Required If a seller's permit has been i&sued to a retailENUnder Section 6067 of the Revenue and Taxation Code an addifional trarisacfion's permit shall not be required by this ordinance 3.18A 10 Exeaipfions and Exclusions A, There shall be excluded frorn the meaSUre of the transactions tax and the use tax in 0*; alTIOUM of any sales tax or use tax iff1posed by the State of CafifornO or by any City, pity and COMIty or county pursuant to the Badley-Burns Llniforrn Local Sales and Use "Fax Law or- the aniount of any state adrninistered transacfions Or Use tax B The ie shall be exempted from the compt.dation of the atnount of transactions tax the gross receipts frorTv, I. 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 City pursuant to the contract of sale by delivery to such point by the retailer or his/her or its agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purpose of this paragraph, delivery to a point the City shall be satisfied. a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4400) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code and undocumented vessels registered under Chapter 2 of Division 3.5 commencing with Section 9840) if 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 the ordinance. 5. For the purposes of subsections (3) and (4) of this section the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any State-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as 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 VOroville Transactions Sax ordinance revised.} SWtt-'-s ()r any gov,,mn'tenf. � hls eXc-.mpOon 1111 to, pf,,.)vkh,,�d �o 6366 cmd 63661 of atnd taxaticni f-I'kxje! of the� Stati,,a of CaVornr,-) 3 H th((' otAgated to purc'h�,.ise, the, pfic)f,.)erty fof a Ue(,.1 prif,;epursuant tcj� as cOf*,-v-.r eritered' fnto prior to the or)(-:.,rafivr,> ,Aate of this 4 If the poss(--,Ssior-, of or the €:xer6se of any tigh[ cir power, ove,u thc, tarfgable p&sona� propie(ty unser under a pe,,ise which is a confiru,flng pUrchase of such property for any period of lime, for which the lessee is oblngalc-A lo iease the f.,)rq)edy for any arnount fixed by a lease prJor to the operafive, date of this oidrnzjnce 5 For the purposes of subsections, (3) and (4) of this sub-section,, stc)rage. use, or other consumplion or possiession i or exercise of any right of, power over tarigible personaf property shaH be deeaierf not tic be obligated pWrsuant to a contract or leasefor any period of time for wh�ch any party to thee (;ontract or fease [-nas the unconditiona, t fight to terminate the contract or lease upo(j jrT()fiC .(r, whether of not such right is exer6sed 6. Except as provided 4) SUbparagraph (7), a engagred ir.i business in [lie (.,4y hall nolt be required to collect LISe tax frorn the porchaser of tangible personal property, unless the retailer rahps or de1livief s the property irn the City of parkipates within the City in cnaking the sale of the pfopert.y Oiduding, but not Hmded to sokrb'1r1t,j of reciewing the order, either direc.0y or indirectly at as pilace of bu.,isiness of the retailer in the City of,through any representative, agent, canvasser, soN6tor subs6ary, or person in the Uy urlider the authority of the retailer 7. 'A retailer ern aged in business 4-1 the City"' shall also irwkldie any reta0er of any of the fcllowing: veNcles subject to n giStr' fiOrl PLIfWaW to ChOpter 1 (cornmencing Faith Section 4000) of Dvison 3 of the Vehicfe Code, an'rcraft licensed in compliance with Section 2,1411 of the Public Utilihes Code, W UndOGUrf-rented vessels iegstered under Chapter 2 of Dvision 3,5 (conirnencing with secOon 9840) of the Vehicle Code, That retailer, shaH be reqiiAired to coNect use tax from any purchaser who registers or licenses the veNcle, vessel, or aircraft at an address in tt"ie City. D Any person subject to use tax under this ordinance may credit against that tax any transacfions tax oreirnbursernent for transactions tax paid to as distkt imposirig, or retailier liable for a trarisactioris tax pursuant tic) part 1.6 of DiOsiion 2 of the Revenue and 1"axation code with respect to the sale to the person of 'the property the Storage, use or other corisurnplion of which is subject to the use tax. 3.18.130 Arnendnients All an,iendrnents %tAbSE1(;Uert ((,,n the effective date of the, ordinance to Part 1 of Divisk)n 2 of the Reve�nue a, nit Taxation Code rel�iflrig to sales and USE� taxes and which are not consistent with Part 1: 6 and Part 1 7 of Divisfon 2 of fl'ie Revenue and Taxation Code, and M arnendn-uents to Part 1 6 and Part 1 7 of Dvision 2 of the Revenue arid Taxatuoin {pkov,I V 'fc1f1 Y,,x a, Iii,W;.''(, i!xr h Code, shall automatically become a part of this ordinance provided however that no srIch amendment shall operate so as to affect the rate of tax imposed by this ordinance. 3.18.140 Enjoining Collection Forbidden No injunction or writ of mandate or other legal or equitable process shall issue in any suit action or proceeding in any court against the State or the City or against any officer of the State or the City to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. SECTION 2. SEVERABLILITY. If any section, subsection, sentence, clause, phrase portion of the application thereof to any person or circumstance of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate distinct and independent provision of such ordinance and shall not affect the validity of the remaining portions thereof. SECTION 3. CEQA COMPLIANCE. The City Council finds and determines that the enactment of this Ordinance is not a "project" as that term is used in the California Environmental Quality Act ("CEQA;" Cal Pub_ Resources Code Section 21000 et seq.) or the State CEQA Guidelines (Cal.Code of Regs. Title 14, Section 15000 et seq.) Therefore no environmental assessment is required or necessary. SECTION 4. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon its approval by voters of the City. SECTION 5. TERMINATION DATE. The tax levied by this ordinance shall continue at the rate of 1% from April 01, 2017 until December 31, 2022. The authority to levy the tax imposed by this ordinance shall expire six (6) years from the operative date of this ordinance. SECTION 6. DECLARATION. The proceeds of the taxes imposed by this ordinance may be used for any lawful purpose of the City, as authorized by ordinance, resolution or action of the City Council. These taxes are not special taxes within the meaning of Section 1(d) of Article XIIIC of the California Constitution, but are general taxes imposed for general government purposes. SECTION 7. EXECUTION. The Mayor and City Council are authorized to subscribe this ordinance where indicated below to evidence its approval by the voters of the City. 1 I 1 1 1 y0rovdie rran5actions tax ordinance revtSed j PASSED AND ADOPTED by the Oroville City Council of the City of Oroville, County of Butte, State of California, on this 21st day of June, 2016, by the following two-thirds vote: Ayes: Council Members Berry, Del Rosario, Hatley, Pittman, Simpson, Vice Mayor Chan Wilcox, Mayor Dahlmeier Noes: None Abstain: None Absent: None Linda L. Dahlmeier, Mayor APPROVED AS TO FORM- ATTEST: Sco E. Huber, City Attorney dwald Rus , Acting City Clerk {/Oroville•Transactions tax ordinance revised.r EXHIBIT "B" CITY OF OROVILLE AN AMENDED RESOLUTION NO. 8516.1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OROVILLE, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF BUTTE TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2016, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD PURSUANT TO SECTION 10403 OF THE CALIFORNIA ELECTIONS CODE WHEREAS, on July 26, 2016, the Butte County Board of Supervisors approved Oroville City Council's request to consolidate the General Municipal Election to be held on November 8, 2016; and WHEREAS, the City Council of the City of Oroville is amending Resolution No_ 8516.1 to clarify the sales tax measure language to be presented to the voters on November 8, 2016; and WHEREAS, the City Council of the City of Oroville has called a General Municipal Election to be held on November 8, 2016, for the purpose of the election of three (3) members of the City Council for the term of four years; and WHEREAS, the City Council is submitting to the voters the question relating to approval of Ordinance No. 1816, an Ordinance adding Chapter 3.18 to the Oroville Municipal Code Regarding a Transactions and Use Tax to be Administered by the State Board of Equalization; and WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the city the precincts, polling places and election officers of the two elections be the same, and that the Butte County Clerk-Recorder/Registrar of Voters of the County of Butte canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OROVILLE DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That pursuant to the requirements of §10403 of the California Elections Code, the Board of Supervisors of the County of Butte is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 8, 2016, for the purpose of the election of three (3) Members of the City Council for the term of four years. Section 2. That a measure is to appear on the ballot as follows: PUBLIC SAFETY SOLUTIONS FOR OROVlLLE — SALES TAX � MEASURE Shall Ordinance No. 1816, a Temporary sales tax increase of one percent o YES (1%) generating approximately $3.6 million annually, that automatically expires in six years, and that establishes a citizen oversight committee to ensure that the funds are used to preserve public services such as police o NO protection,fire suppression, vehicle repair and maintenance, finance analyst and human resources services for the City of Oroville, be adopted? Section 3. That the proposed complete text of the measure submitted to the voter's is attached as Exhibit A, which shall be printed in full text_ Section 4. That the vote requirement for the measure to pass is a majority of the votes cast. Section S. That the Butte County Clerk-Recorder/Registrar of Voters is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the statewide or special election. Section 6. That the Board of Supervisors is requested to issue instructions to the Butte County Clerk-Recorder/Registrar of Voters to take any and all steps necessary for the holding of the consolidated election. Section 7. That the City of Oroville recognizes that additional. costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs. Section 8. That the City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the Butte County Clerk- Recorder/Registrar of Voters of the County of Butte. Section 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the Book of Original Resolutions. A PASSED, APPROVED AND ADOPTED by the Oroville City Council at a special meeting on August 12, 2016, by the following vote: AYES: Council Members Berry, ®el Rosario, I-latley, Pittman, Simpson, Vice Mayor Chan Wilcox, Mayor Oahlmeier NOES: Bone ABSTAIN: None ABSENT: None 2 Lind L. Dahlmeier, Mayor APPROVED AS TO FORM: ATTEST: Scott E. Huber, City Attorney Jami Hayes, Assista t ty Clerk 3 EXHIBIT "A" CITY OF OROVILLE ORDINANCE NO. 1816 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OROVILLE AMENDING AND ADDING CHAPTER 3.18 TO THE OROVILLE MUNICIPAL CODE REGARDING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION The People of the City of Oroville, State of California do ordain as follows: SECTION 1: Chapter 3.18 is hereby added to the Oroville Municipal Code to read as follows: CHAPTER 3.18 Temporary Transactions and Use Tax Sections: 3.18.010 Title 3.18.020 Operative Date 3.18.030 Purpose 3.18.040 Contract with State 3.18.050 Transaction Tax Rate 3.18.060 Place of Sale 3.18.070 Use Tax Rate 3.18.075 Citizens Oversight Committee 3.18.080 Adoption of Provisions of State Law 3.18.090 Limitations on Adoption of State Law and Collection of Use Taxes 3.18.100 Permit Not Required 3.18.110 Exemptions and Exclusions 3.18.120 Amendments 3.18.130 Enjoining Collection Prohibited 3.18.010 Title This ordinance shall be known as the Temporary Transactions and Use Tax Ordinance. The City of Oroville hereinafter shall be called "City". This ordinance shall be applicable in the incorporated area of the City. 3.18.020 Operative Date "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.18.030 Purpose This ordinance is adopted to achieve the following, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To maintain and preserve City of Oroville public services, including police protection, fire suppression, vehicle repair and maintenance, finance analyst and human resources services with the City. B. To impose a retail transactions and use tax in accordance with the provision 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. C. 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. D. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. E. 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. 3.18.040 Contract with State Prior to the operative date, the City shall contract with the State Board of Equalization 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 State Board of Equalization prior to the operative date it shall nevertheless so contract and iri such case the operative date shall be the first day of the first calendar quarter following the execution of such contract. 3.18.050 Transactions Rate Tax For the privilege of selling tangible personal property at retail a tax is hereby imposed upon all retailers in the incorporated area of the City at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said area for six (6) years from the operative date of this ordinance. 3.18.060 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 /her or its 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 of California 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 State Board of Equalization. 3.18.070 Use Tax Rate A complementary tax is hereby imposed on the storage, use, or other consumption in the incorporated area of the City of tangible personal property purchased from any retailer for six (6) years after the operative date of this ordinance for storage, use, or other consumption in such area at the rate of one percent (1%) 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. 3.18.076 Citizens Oversight Committee A. The City Council shall establish and appoint a Citizens Oversight Committee. B. The Citizens Oversight Committee shall consist of a nine-member board of residents and/or business owners and two elected City Council members of the City of Oroville. C. The purpose of the Citizens Oversight Committee shall be to meet with the City's Department Heads during the preparation of each fiscal year budget until the ordinance sunsets, to make recommendations to the City Council regarding how the proceeds from the implementation of the ordinance will be allocated for the ensuing budget year. The committee shall make recommendations to the Council to provide for local public services, including but not limited to police protection, fire suppression, vehicle repair and maintenance, finance analyst and human resources services that will improve the quality of life for residents and businesses within the City of Oroville. The committee shall meet at least quarterly during the fiscal year to ensure that the revenue generated by the ordinance is allocated and disbursed in accordance with the City budget. All quarterly and annual budget reports from the committee shall be published on the City of Oroville website prior to Council adoption of the budget and will be available for public review. 3.18.080 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. 3.18.090 Limitations of Adoption of State Law and Collection of Use Taxes In adopting the provisions of Part 1 Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is names 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, Victim Compensation and Government Control Board, State Board of Equalization, 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 State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance_ 3. In those sections, including but not necessarily limited to sections referring to the exterior boundaries of the State of California where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code or; b. Impose this tax with respect to certain sales, storage use or other consumption of tangible personal property which would not be subject to tax by the state under the provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The work "City" shall be substituted for the word "State" in the phrase "retainer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.18.100 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 transaction's permit shall not be required by this ordinance. 3.18.110 Exemptions and Exclusions A. There shall be excluded from the measure of the transactions tax and the use tax in 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 shall be exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products to operators of aircraft to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State the United States or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside City pursuant to the contract of sale by delivery to such point by the retailer or his/her or its agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purpose of this paragraph, delivery to a point 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 Chapter 2 of Division 3.5 commencing with Section 9840) if 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 ut-ofcity 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 the ordinance. 5. For the purposes of subsections (3) and (4) of this section the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any State-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as 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 purchase is obligated to purchase the properly 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 any amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subsections (3) and (4) of this sub-section, storage, use, or other consumption or possession of or exercise of any right or power over tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property in the City of participates within the City in making the sale of the property including, but not limited to soliciting or receiving the order, either directly or indirectly at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of 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. 3.18.130 Amendments All amendments subsequent to the effective date of the ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not consistent 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. 3.18.140 Enjoining Collection Forbidden No injunction or writ of mandate or other legal or equitable process shall issue in any suit action or proceeding in any court against the State or the City or against any officer of the State or the City to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. SECTION 2. SEVERABLILITY. If any section, subsection, sentence, clause, phrase portion of the application thereof to any person or circumstance of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate distinct and independent provision of such ordinance and shall not affect the validity of the remaining portions thereof. SECTION 3. CEQA COMPLIANCE. The City Council finds and determines that the enactment of this Ordinance is not a "project" as that term is used in the California Environmental Quality Act ("CEQA;" Cal Pub. Resources Code Section 21000 et seq.) or the State CEQA Guidelines (Cal.Code of Regs. Title 14, Section 15000 et seq.) Therefore no environmental assessment is required or necessary. SECTION 4. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon its approval by voters of the City. SECTION 5. TERMINATION DATE. The tax levied by this ordinance shall continue at the rate of 1% from April 01, 2017 until December 31, 2022. The authority to levy the tax imposed by this ordinance shall expire six (6) years from the operative date of this ordinance. SECTION 6. DECLARATION. The proceeds of the taxes imposed by this ordinance may be used for any lawful purpose of the City, as authorized by ordinance, resolution or action of the City Council. These taxes are not special taxes within the meaning of Section 1(d) of Article XIIIC of the California Constitution, but are general taxes imposed for general government purposes. SECTION 7. EXECUTION. The Mayor and City Council are authorized to subscribe this ordinance where indicated below to evidence its approval by the voters of the City. PASSED AND ADOPTED by the Oroville City Council of the City of Oroville, County of Butte, State of California, on this 21st day of June, 2016, by the following two-thirds vote: Ayes: Council Members Berry, Del Rosario, Hatley, Pittman, Simpson, Vice Mayor Chan Wilcox, Mayor Dahlmeier Noes: None Abstain: None Absent: None Li/rrda L. Dahlmeier, Mayor APPROVED AS TO FORM: ATTEST: .� yJ' fJ .\• � f Scot E. Huber, City Attorney 56nald Rus , Acting City Clerk [/Oroville-Transactions tax ordinance revised.