Clearlake Municipal Code § 3-6 Public Safety Transactions and Use Tax

This section shall be known as the City of Clearlake Public Safety Transactions and Use Tax Ordinance. The City of Clearlake hereinafter shall be called the “City.” This section shall be applicable in the incorporated territory of the City, which territory shall be referred to herein as “City.” (Ord. #56-94, S1)

“Operative Date” means the first day of the first calendar quarter commencing more than one hundred twenty (120) days after adoption of this section, the date of such adoption being set forth below. (Ord. #56-94, S2)

This section is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: a. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code which authorizes the City to adopt this tax ordinance which shall be operative if two-thirds (2/3) of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. b. To adopt a retail transactions and use tax ordinance which incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. c. To adopt a retail transactions and use tax ordinance which 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. d. To adopt a retail transactions and use tax ordinance which can be administered in a manner which 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 section. (Ord. #56-94, S3)

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 section; 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 a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. (Ord. #56-94, S4)

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-half of one (0.5%) 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 section. (Ord. #56-94, S5)

For the purposes of this section, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-State destination or to a common carrier for delivery to an out-of-State destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. (Ord. #56-94, S6)

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this section for storage, use or other consumption in said territory at the rate of one-half of one (0.5%) 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. #56-94, S7)

The proceeds of the tax shall be deposited into a special fund to be used only for the purposes of obtaining, providing, operating and maintaining police protection services provided by the City at a service level in excess of the service level existing as of the effective date of this section. As used herein, “police protection services” shall mean salaries and benefits paid to police protection and payment for equipment and apparatus necessary to equip such personnel. (Ord. #56-94, S8)

The Council shall identify how the estimated proceeds of the tax will be spent for police protection services each fiscal year in the City’s annual budget. (Ord. #56-94, S9)

The City shall continue to expend the same percentage of the general fund directed toward police protection services as exists as of the effective date of this section until such time as the City reaches and maintains a ratio of one (1) police officer for each five hundred (500) of population. Upon obtaining that ratio, the City may thereafter direct any general funds (but not the special funds received as tax by this section) not required to maintain that ratio to other City services or functions. For the purposes of this section one (1) police officer means one (1) sworn full time equivalent peace officer or two (2) non-sworn full time equivalent community service officers. Population shall be determined to be the California Department of Finance annual population estimate for the City. (Ord. #56-94, S10)

Except as otherwise provided in this section and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all 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 section as though fully set forth herein. (Ord. #56-94, S11)

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: a. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: 1. The word “State” is used as part a 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 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 section.

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 said provisions 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 word “City” 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. (Ord. #56-94, S12)

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this section. (Ord. #56-94, S13)

a. There shall be excluded from the measure of the transactions tax and use tax the amount of any sales tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax law or the amount of any state-administered transactions or use tax. b. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property to operators of aircraft to be used or consumed principally outside the City in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: (a) With respect to vehicles (other than commercial vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code), aircraft licensed in compliance with

Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9850) of the Vehicle Code, by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his 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 section. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this section. 5. For the purposes of paragraphs b, 3 and b, 4 of this subsection, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time 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 is exempted from the use tax imposed by this section, 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. 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 Section 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this section. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this section. 5. For the purposes of paragraphs c, 3 and c, 4 of this subsection, storage, use or other consumption, or possession of, or exercise of any right of 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.

Except as provided in paragraph c, 7, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the 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 9850) 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 section 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. (Ord. #56-94, S14)

All amendments subsequent to the effective date of this section to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this section; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this section. (Ord. #56-94, S15)

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 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. (Ord. #56-94, S16)

Pursuant to California Constitution, Article XIIIB, Section 4, the appropriations limit for the City of Clearlake will be increased by the amount of the maximum projected aggregate collection authorized by the imposition of this transactions and use tax in each of the four (4) fiscal years from the election to be held pursuant to subsection 3-6.21. (Ord. #56-94, S17)

If any provisions of this section or the application thereof to any person or circumstance is held invalid, the remainder of the section and the application of such provision to other persons or circumstances, shall not be affected thereby. (Ord. #56-94, S18)

This section relates to the levying and collecting of the City transactions and use taxes and pursuant to Government Code Section 36937 shall take effect immediately. The Council finds that: a. Over the last three (3) years the State legislature has reduced the amount of property tax revenues and other local general fund revenues available to provide the level of police protection services deemed necessary in the future for the preservation of the public peace, health, and safety of the City; and b. An increase in tourism is anticipated in the future which will require more police officers; c. The tax imposed pursuant to this section is necessary not only to obtain the revenues to meet the usual and current expenses required to provide the level of police protection needed as tourism increases, but is also necessary for the immediate preservation of the public peace, health and safety of the City. (Ord. #56-94, S19)

This section is adopted pursuant to Revenue and Taxation Code Section 7286.45. (Ord. #56-94, S20)

Once effective, this section shall not become operative unless and until two-thirds (2/3) of the electors voting on the measure vote to approve the imposition of the tax and adjustment of the appropriations limit at an election called for that purpose to be held on February 7, 1995. (Ord. #56-94, S21)

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-quarter of one (.25%) 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 an ordinance, adopted by a vote of two-thirds (2/3) of the members of the City Council, declaring that this subsection 3-6.22 shall become effective and shall replace subsection 3-6.5 hereof. “Operative date,” as used in this section, shall mean the first day of the first calendar quarter commencing more than one hundred twenty (120) days after adoption of such ordinance. (Ord. #56-94, S22)

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this section for storage, use or other consumption in said territory at the rate of one-quarter of one (.25%) percent of the sales price of the property on and after the operative date of an ordinance, adopted by a vote of two-thirds (2/3) of the members of the City Council, declaring that this subsection 3-6.23 shall become effective and shall replace subsection 3-6.7 hereof. “Operative date,” as used in this section, shall mean the first day of the first calendar quarter commencing more than one hundred twenty (120) days after adoption of such ordinance. 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. #56-94, S23) 3-7 CITY OF CLEARLAKE ROAD MAINTENANCE AND IMPROVEMENT TRANSACTIONS AND USE TAX.

• Approval at election 11/8/16