Imperial County Municipal Code Ch. 4.13 Imperial County Public Safety Transactions and Use Tax Ordinance

This chapter shall be known as the "Imperial County public safety transactions and use tax law". The county of Imperial hereinafter shall be called "county". This chapter shall be applicable in the incorporated and unincorporated territory of the county of Imperial, which territory shall be referred to herein as "county".

(Ord. 1351 § 1 (part), 2002)

"Operative date" means the first day of the first calendar quarter commencing more than one hundred ten (110) days after adoption of this chapter, the date of such adoption being as set forth in Section 4.13.160 below.

(Ord. 1351 § 1 (part), 2002)

This chapter is intended to be in addition to, and to not in any manner affect, the provisions of Chapter 1 and Chapter 1.5 of this division. It is adopted to achieve the following 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 county to adopt this tax law which shall be operative if two-thirds of the electors vote to approve this ordinance and the imposition of the tax at an election called for that purpose. The tax revenues generated therefrom shall in accordance with Section 4.13.130 of this ordinance be shared among the county of Imperial and cities of Brawley, Calexico, Calipatria, El Centro, Holtville, Imperial and Westmorland and which monies shall be used for the purpose of funding the public safety staffing, equipment and facilities for the county of Imperial and cities referred to in this paragraph or as otherwise provided herein.

B. To adopt a retail transactions and use tax law 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 law 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 law 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 chapter.

(Ord. 1351 § 1 (part), 2002)

Prior to the operative date, the county shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax law.

(Ord. 1351 § 1 (part), 2002)

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 the county at the rate of one-quarter 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 chapter.

(Ord. 1351 § 1 (part), 2002)

For the purposes of this chapter, 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 such 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. 1351 § 1 (part), 2002)

An excise tax is hereby imposed on the storage, use or other consumption in the county of tangible personal property purchased from any retailer on and after the operative date of this chapter for storage, use or other consumption in said territory at the rate of one-quarter 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. 1351 § 1 (part), 2002)

Except as otherwise provided in this chapter 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 chapter as though fully set forth herein.

(Ord. 1351 § 1 (part), 2002)

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code the following shall apply:

A. Whenever the state of California is named or referred to as the taxing agency, the name of this county shall be substituted therefor and shall include the incorporated and unincorporated territory of the county as defined herein. 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, State 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 county 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 chapter.

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 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 "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 6503 and shall include the incorporated and unincorporated territory of the county as defined herein.

(Ord. 1351 § 1 (part), 2002)

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 chapter.

(Ord. 1351 § 1 (part), 2002)

A. There shall be excluded from this 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 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 county which are shipped to a point outside the county, pursuant to the contract of sales, 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 paragraph, 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 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) of the Vehicle Code, by registration to an out-of-county 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-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 chapter.

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 chapter.

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 is exempted from the use tax imposed by this chapter, the storage, use or other consumption in this county 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 Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

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

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 chapter.

5. For the purposes of subsections (3) and (4) of this 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 of 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 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 the county or participates within the 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 or through any representative, agent, canvasser, solicitor, subsidiary, or person in the county under the authority of the retailer.

7. "A retailer engaged in business in the 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 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 county.

D. Any person subject to use tax under this chapter shall be entitled to credit against that tax for any transactions tax, or reimbursement for transactions tax, paid to a district or retailer in a district imposing 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. 1351 § 1 (part), 2002)

All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 (commencing with Section 6001) of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 of Division 2 (commencing with Section 7251) 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 chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.

(Ord. 1351 § 1 (part), 2002)

A. Distribution. The county shall distribute the revenue generated through the sales tax among the cities (Brawley, Calexico, Calipatria, El Centro, Holtville, Imperial and Westmorland) and county for each whole fiscal year, commencing July 1, 2003, as follows: The county and each city will receive an initial payment of fifty thousand dollars ($50,000). Thereafter, the remaining revenue shall be apportioned and distributed to the cities and county in proportion to their respective percentage of the county-wide population as determined annually by the California Department of Finance. The distribution formula shall be based initially on the population data for fiscal year 2001-02 data and be adjusted annually thereafter.

B. Expenditure Plan.

1. Purpose. This expenditure plan is to use the tax revenues to fund public safety staffing, equipment, and facility needs for the county and cities located within the geographical boundaries of Imperial county. The revenues received by the county from this chapter, after deduction of required Board of Equalization costs for performing the functions specified in Section 132304(b) of the Public Utilities Code, shall be used to fund public safety needs county-wide as set forth in this expenditure plan

2. Administrative Costs. Revenues may be expended by the county for salaries, wages, benefits, overhead, auditing, and those services including contractual services necessary to administer this ordinance; however, in no case shall such expenditures exceed one percent of the annual revenues provided by this chapter. An annual independent audit shall be conducted to assure that the revenues expended by the county under this section are necessary and reasonable in carrying out its responsibility under this chapter.

3. Allocation Schedule. After the deduction of the administrative expenses of the county of a maximum of one percent, the balance of the revenues shall be allocated as follows:

a. Each local agency shall receive an annual base sum of fifty thousand dollars ($50,000).

b. The remaining revenues after the base sum distribution shall be distributed to each local agency based on total population using the most recent department of finance population estimates.

c. Any new incorporations or annexations which take place shall be incorporated into the revenue sharing formula beginning with the subsequent fiscal year.

d. Except as provided for herein, the distribution of funds as set forth in this chapter shall be met over the duration of the ordinance codified in this chapter.

4. Expenditure Priorities. Funds shall be expended in accordance with the following priorities:

a. To provide staffing,

b. To provide needed equipment,

c. To construct needed facilities.

5. Expenditure Planning and Programming.

a. The county will provide each agency with an annual estimate of revenues for the succeeding five years. Each Local Agency shall annually then develop a five-year expenditure plan funded with revenues made available under this ordinance. Each local agency shall annually notify the county of its policy body's official action approving its five-year list of projects.

b. The county shall annually approve a five-year expenditure plan based on each local agency submittals to be funded during the succeeding fiscal year. Other than editorial changes, any change proposed by the county in the local agency submittals of projects shall require concurrence by a majority vote of the board of supervisors and a majority of the incorporated cities. The local agency that is the subject of the proposed change by the county shall be one of the concurring agencies. At the request of a local agency, the county may amend the portion of the program of projects to address the local agency's unforeseen emergencies or circumstances arising during the year in accordance with this chapter. A public hearing will be held prior to approval of the annual program of projects. No major projects shall be funded with the revenues made available under this chapter unless the projects are in the approved program of projects.

6. Maintenance of Local Agency Funding Levels. It is the intent of the legislature and the county that revenues provided from this chapter be used to supplement existing local revenues being used for the purposes set forth in this chapter. Each local agency receiving revenues pursuant to this chapter shall use their best efforts to annually maintain, as a minimum, the same level of local discretionary funds expended for public safety during the fiscal year immediately preceding the adoption of this chapter.

7. Establishment of Separate Accounts. Each agency receiving funds pursuant to this chapter shall deposit said funds in a separate public safety fund. Interest earned on funds allocated pursuant to the ordinance shall be expended only for those purposes for which the funds were allocated.

(Ord. 1351, § 1 (part), 2002)

County shall on an annual basis cause an audit of the expenditures and distributions from the transaction and use tax revenues. The report shall be published in a newspaper of general circulation. Each said audit shall be completed and published not later than six months after each anniversary date that the ordinance codified in this chapter became effective. Said audits shall be performed by an oversight committee consisting of eight members who shall include a representative from the county of Imperial, Brawley, Calexico, Calipatria, El Centro, Holtville, Imperial, and Westmorland.

(Ord. 1351 § 1 (part), 2002)

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

(Ord. 1351 § 1 (part), 2002)

This chapter relates to the levying and collection of county transactions and use tax and shall take effect immediately upon approval by a majority of the electors voting on this ordinance at the November 5, 2002 general election.

(Ord. 1351 § 1 (part), 2002)

This chapter and the collection of the transaction and use tax shall be rescinded and discontinued ten (10) years after the operative date as set forth under section 4.13.020 of this ordinance.

(Ord. 1351 § 1 (part), 2002)