Alameda County Municipal Code Art. V Use Tax for Essential Health Care Services

A. This article shall be known as the essential health care services tax ordinance. The tax that is described in this article shall be referred to as the essential health care services tax (hereinafter, the "tax").

B. This article shall be applicable throughout the incorporated and unincorporated territory of Alameda County, California (hereinafter, the "county").

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

A. Proceeds from this tax shall be deposited into the county treasury in a special fund entitled "essential health care services tax fund" (hereinafter, the "fund").

B. Monies deposited into the fund, together with any interest that accrues thereon, shall be used exclusively for emergency medical, hospital inpatient, outpatient, public health and mental health care services to indigent, low-income and uninsured adults, children, families and seniors of Alameda County, as described below in this section.

C. In each year during the term of this article, seventy-five (75) percent of the revenue generated from this tax shall be transferred to the Alameda Health System ("AHS") to be used in the discretion of its governing board for current and future obligations of the AHS, provided that:

1. Proceeds from this portion of revenue from this tax may not be used to replace the funding currently provided by the county to the AHS pursuant to the existing indigent care contract between the county and the AHS; and

2. If in any year during the term of this article, the county shall be required to reduce budgetary expenditures due to reductions in discretionary revenue, including, but not limited to property taxes, motor vehicle license fees and sales and use taxes, or reductions in health care funding sources, then any resulting reductions in county funding of the AHS shall be proportionate to reductions in funding of all other health care programs provided by the county. The distribution of revenue from this tax shall not be altered from the allocations set forth in this subsection and subsection D due to reductions in county discretionary revenue or for any other reason.

D. In each year during the term of this article, the remaining twenty-five (25) percent of revenue from this tax shall be allocated by the board of supervisors based on the demonstrated need and the county's commitment to a geographically dispersed network of providers, for any of the following purposes:

1. For critical medical services provided by community-based health care providers;

2. To partially offset uncompensated care costs for emergency care and related hospital admissions; or

3. For essential public health, mental health and substance abuse services provided.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

A. Upon enactment of this article, the board of supervisors shall establish and appoint a citizen oversight committee.

B. The citizen oversight committee shall annually review the expenditure of the essential health care services tax fund for the prior year and shall report to the board of supervisors on the conformity of such expenditures to the purposes set forth in Section 2.08.241.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

"Operative date" means the first day of the first calendar quarter commencing more than on hundred ten (110) days after adoption of this article.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

A. This article is adopted to achieve the following general purposes:

1. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 and of Section 7285.5 of Part 1.7 of Division 2 of the California Revenue and Taxation Code that authorize the county to adopt this article, and such tax shall be operative if a two-thirds majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose;

2. To enact 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 California Revenue and Taxation Code;

3. To enact 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 sales and use taxes; and

4. To enact 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 each person subject to taxation under the provisions of this article.

B. This article hereby directs that the provisions hereof be interpreted in order to accomplish the purposes that are set forth in this section.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

Prior to the operative date, the county shall contract with the California State Board of Equalization to perform all functions incident to the administration and operation of this article; provided that, if the county shall not have contracted with the State Board of Equalization 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.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated and unincorporated territory of Alameda County at the rate of one-half of one percent 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 article.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

A. For purposes of this article, 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 or her 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.

B. 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.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

An excise tax is hereby imposed on the storage, use or other consumption in the territory of Alameda County of tangible personal property purchased from any retailer on and after the operative date of this article for storage, use or other consumption in said territory at the rate of one-half of one percent 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.

(Ord. 2004-66 § 1 (part); Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

Except as otherwise provided in this article and except insofar as any provisions of this article may be inconsistent with Part 1.6 of Division 2 of the California Revenue and Taxation Code, all of the provisions of Part 1 (commencing at Section 6001) of Division 2 of the California Revenue and Taxation Code are hereby adopted and made a part of this article as though fully set forth herein.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

The following requirements shall be followed in applying the provisions of Part 1 of Division 2 of the California Revenue and Taxation Code to this article:

A. Wherever the state of California is named or referred to as the taxing agency, the name of this county shall be substituted therefor. However, said substitution shall not be made when:

1. The word "state" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, 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 county or any agency, officer or employee thereof, rather than by or against the State Board of Equalization, in performing functions incident to the administration or operation of this article;

3. In those sections, including but not 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 that 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 that would not be subject to tax by the state of California under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the California Revenue and Taxation Code.

B. The word "county" shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Section 6203 and in the definition of that phrase in Section 6203 of the California Revenue and Taxation Code.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

If a seller's permit has been issued to a retailer under Section 6067 of the California Revenue and Taxation Code, an additional transactor's permit shall not be required by this article.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

A. In addition to any other exemption or exclusion required by law, 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-Bums Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from computation of the amount of transactions tax imposed by this article, gross receipts from:

1. The sale 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. The sale of property to be used outside the county which is shipped to a point outside the county pursuant to the contract of sale, by delivery to such point by the retailer or his or her agent or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this subsection, delivery to a point outside the county 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 California Vehicle Code, aircraft licensed in compliance with Section 21411 of the California Public Utilities Code and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the California Vehicle Code; by a combination of registration to an out-of-county address and 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 a combination of registration to a place of business out of county 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 article;

4. The lease of tangible personal property that constitutes a continuing sale of such property for any period of time for which the lessor is obligated to lease the property for an amount that was fixed by a lease executed prior to the operative date of this article; and

5. For the purposes of subsections (B)(3) and (B)(4), 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, regardless of whether such right is exercised.

C. There are exempted from computation of the amount of the use tax imposed by this article, gross receipts from the following storage, use or other consumption of tangible personal property:

1. Any sale that has been subject to a transactions tax under any state-administered transactions and use tax ordinance;

2. The sale of 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 set forth in Sections 6366 and 6366.1 of the California Revenue and Taxation Code;

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract that was entered into prior to the operative date of this article;

4. If the possession of or the exercise of any right or power over the tangible personal property shall arise under a lease that constitutes 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 that was executed prior to the operative date of this article;

5. For the purposes of subsections (C)(3) and (C)(4), the storage, use, or other consumption or the 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, regardless of whether such right is exercised;

6. Except as provided in subsection (C)(7), a retailer engaged in business in Alameda County shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into Alameda County or participates within Alameda County 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 Alameda County or through any representative, agent, canvasser, solicitor, subsidiary or person in Alameda County under the authority of the retailer; and

7. "A retailer engaged in business in Alameda County" 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 California Vehicle Code, aircraft licensed in compliance with Section 21411 of the California Public Utilities Code and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the California Vehicle Code. The retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle or aircraft at an address in Alameda County.

D. Any person subject to use tax under this article may credit the amount of such tax against any transactions tax paid to a county or district imposing or a retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the California Revenue and Taxation Code with respect to the sale of property or the storage, use or other consumption of which is subject to the use tax.

(Ord. 2004-66 § 1 (part); Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

After the operative date of this article, all amendments to Part 1 of Division 2 of the California Revenue and Taxation Code relating to sales and use taxes that are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the California Revenue and Taxation Code and all amendments to Part 1.6 and Part 1.7 of Division 2 of the California Revenue and Taxation Code, shall automatically become a part of this article; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this article.

(Ord. 2004-66 § 1 (part): Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

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 county, or against any officer of the state or the county, to prevent or enjoin the collection under this article or Part 1.6 of Division 2 of the California Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

If any provision of this article or the application thereof to any person or circumstance is held invalid, the remainder of the article and the application of such provision to other persons or circumstances shall not be affected thereby.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

This article shall not be interpreted in any manner that conflicts with the laws or constitutions of the United States or the state of California.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)

This article shall remain in effect only until June 30, 2034, and as of that date it shall be repealed by operation of this section unless a later ordinance is adopted prior to June 30, 2034 that shall have the effect of deleting or extending the termination date set forth herein.

(Ord. 2004-32 § 1 (part))

(Ord. No. 2014-11, § 1, 2-18-14)