Division 2 — IMPOSITION AND RATE

2666. • TAX IMPOSED.

For the privilege of operating a sports wagering business within the City, each operator is subject to and shall pay a tax in the amount of five percent (5%) of the operator's sports wagering gross revenue. Said tax

constitutes a debt owed by the operator to the City which is extinguished only by payment to the City. The proceeds of this tax are allocated to the City's General Fund for governmental expenditures. This tax is not a sales, transactions or use tax and shall not be calculated or assessed as such.

(Ord. No. 2392, § 1, 11-8-22)

The City Council may impose the tax authorized by this Part at a lower rate and may otherwise repeal or amend this Part without a vote of the people. However, as required by California Constitution Article XIIIC (Proposition 218), voter approval is required for any amendment that would increase the maximum rate or methodology of any tax levied pursuant to this Part. The people of the City of Arcadia affirm that the following actions shall not constitute an increase of the maximum rate or methodology of the tax requiring subsequent voter approval:

A.

The restoration of the rate of the tax to a rate that is no higher than the maximum set by this voter- approved Part, if the City Council has previously acted to reduce the rate of the tax;

B.

An action that interprets or clarifies the methodology of the tax, or any definition applicable to the tax, so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Part;

C.

The establishment of a class of sports wager that is exempt or excepted from the tax or that is subject to a reduced tax rate, or the discontinuation of any such exemption, exception or reduction; and

D.

Resuming collection of the tax imposed by this Part, even if the City had, for some period of time, either suspended collection of the tax or otherwise failed to collect the tax, in whole or in part; and

(Ord. No. 2392, § 1, 11-8-22)