Los Banos Municipal Code Ch. 12.1 Los Banos Police, Fire, Public Safety/911 Special Transactions (Sales)…

This chapter shall be known as the "Los Banos Police, Fire, Public Safety/911 Special Transactions (Sales) and Use Tax" (the 'Act'). This chapter shall be applicable in the incorporated territory of the City.

(§ 1, Ord. 1020, eff. November 27, 2004)

The people of the City of Los Banos declare that this chapter is adopted for the special purpose of funding additional public safety personnel, supplies and services, capital outlay items, equipment, facilities and technology improvements over the term of the tax imposed under this chapter and paying for all incidental costs of operating this special transactions (sales) and use tax program, including administration and collections costs reimbursable to the State Board of Equalization, with any unused revenue committed to police and firefighting equipment and services.

(§ 1, Ord. 1020, eff. November 27, 2004)

This chapter shall be effective 10 days after certification by the City Council of the returns of the election indicating approval by voters by a 2/3 margin of the ordinance enacting this chapter, and the special transactions (sales) and use tax imposed hereunder shall be operative the first day of the first calendar quarter commencing more than 110 days after the adoption of this chapter. Based on a November 2, 2004 election, the special transactions (sales) and use tax imposed hereunder shall be operative April 1, 2005. Upon notice to the State Board of Equalization as required by law, this chapter may be suspended, and all funding related thereto stopped, if the revenue generated under this chapter is diverted by the State of California for purposes other than those specifically enumerated herein.

(§ 1, Ord. 1020, eff. November 27, 2004)

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 (0.50%) 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 April 1, 2005.

(§ 1, Ord. 1020, eff. November 27, 2004)

An excise tax is hereby imposed on the storage, use, or other consumption in the City of tangible personal property purchased from any retailer for storage, use, or other consumption in the City at the rate of one-half of one (0.50%) percent of the sales price of the property sold on and after April 1, 2005. The sales price shall include delivery charges when such charges are subject to the State sales or use tax regardless of the place to which delivery is made.

(§ 1, Ord. 1020, eff. November 27, 2004)

(a) Pursuant to the Act, there is hereby created a Los Banos Police, Fire, Public Safety/911 Special Transactions (Sales) and Use Tax Citizens Oversight Committee to review the revenues and expenditures generated and spent under this chapter.

(b) Said Committee shall consist of seven members. The Police and Fire Chiefs shall together nominate each committee member. Nominees shall be appointed by motion of the City Council adopted by majority vote.

(c) Membership to the Committee shall be restricted to individuals who are registered voters within the City of Los Banos. Elected officials at any level of government and employees of the City of Los Banos are ineligible to serve as members of the Committee.

(d) The members so appointed shall serve without compensation for a term of three years. Except that members of the first/original Committee shall have staggered tenures. Two members will be appointed to a one-year term, two members will be appointed to a two year term and three members will be appointed to a three year term. All subsequent appointments will be for a three year term.

(e) The Committee shall review the revenues and expenditures generated and spent under this chapter, and provide its findings to the City Council for approval, in the form of two semi-annual reports, one report (including fourth quarter information), shall be submitted no later than October 1st of each year. Unless modified by City Council Resolution, the Committee shall not have any function, power, or authority other than those expressly provided herein.

(§ 1, Ord. 1020, eff. November 27, 2004)

Prior to the adoption of the City budget in June of each year, the City Manager and the Finance Officer shall present to the City Council an account of the tax revenues received and expenditures made under this chapter, and the funds remaining in the accounts established for their respective purposes hereunder. Concurrent with the annual account presentation, the City Manager and Finance Officer shall also report to the City Council that no funds received under this chapter were spent for purposes other than those authorized by this chapter.

(§ 1, Ord. 1020, eff. November 27, 2004)

Notwithstanding any provision to the contrary, revenues received under this chapter shall not be used to replace general fund expenditures for normal operations at the previous years' levels, nor shall revenues received under this chapter be used to fund, supplant, or supplement the salaries and benefits of existing personnel or other positions not created under this chapter.

(§ 1, Ord. 1020, eff. November 27, 2004)

Net revenues received under Section 3-12.1.10 shall be distributed as follows:

(a) Tax proceeds sufficient to hire three additional firefighter/EMTs in year one and three additional firefighter/EMTs in year two for a total of six firefighter/EMTs which shall include start up equipment and protective gear not to exceed Four Thousand and No/100ths ($4,000.00) Dollars per firefighter, salaries and benefits, merit based wage increases, and up to a 2% annual cost of living adjustment as negotiated per labor agreements and rank adjustments in year two, transitioning three (3) firefighters to the rank of Captain to accommodate span of control and training needs.

(b) Tax proceeds sufficient to hire two additional sworn police officers in year one and one additional sworn police officer in year 12 for a total of three sworn police officers which shall include start up equipment and protective gear not to exceed Four Thousand and No/100ths ($4,000.00) Dollars per officer, salaries and benefits, merit based wage increases, and up to a 2% annual cost of living adjustment as negotiated per labor agreements and two police cruisers.

(c) Tax proceeds sufficient to hire additional support police staff as follows; one additional community services officer in year one and one additional community services officer in year 18 and one additional police crime analyst in year three which shall include salaries and benefits, merit based wage increases, and up to a 2% annual cost of living adjustment as negotiated per labor agreements.

(d) Tax proceeds will be collected for police and fire facility upgrades and new construction of police, jail, fire and related training facilities. Police facility funding starts at Four Hundred Fifty Thousand and No/100ths ($450,000.00) Dollars per year in year two, and increases by a 2% cost of living adjustment annually. Fire facility funding starts at Two Hundred Thousand and No/100ths ($200,000.00) Dollars per year in year three, and increases by a 2% cost of living adjustment annually.

(1) Notwithstanding any other provision of this chapter and specifically Section 3-12.1.08, tax proceeds which: (A) were collected by the City on and after April 1, 2005; and (B) are collected on and after the effective date of City Ordinance No. 1114 for police and fire facility upgrades and new construction of police, jail, fire and related training facilities pursuant to this subsection (d) may be used instead to fund sworn police officers and firefighter/EMTs salaries and benefits whether or not said positions are currently funded by general fund revenues.

(2) Subsection (d)(1) shall expire on November 30, 2021 and be of no further force and effect from and after that date.

(e) Tax proceeds not to exceed Ninety Thousand and No/100ths ($90,000.00) Dollars in year one and Ninety Thousand and No/100ths ($90,000.00) Dollars in year two will be utilized for specialty fire safety equipment including, but not limited to, upgrades to "SCBA" breathing apparatus.

(f) Tax proceeds will be utilized to acquire and support 911/dispatch capabilities to dispatch emergency and routine police and fire calls through a mobile display computerized process. After initial acquisition of the mobile display dispatch system One Hundred Thousand and No/100ths ($100,000.00) Dollars will be allocated in year two and each year thereafter with a 2% cost of living adjustment to support this process and to fund additional technology, equipment, and vehicle upgrades.

(§ 1, Ord. 1020, eff. November 27, 2004, as amended by Ord. No. 1088, § 2, eff. 11-28-2009, and § 2, Ord. No. 1114, eff. November 18, 2013)

After deduction of all incidental costs of operating this special transactions (sales) and use tax program, including, but not limited to, administration and collection costs reimbursable to the State Board of Equalization, and in accordance with the distribution allocation set forth in Section 3-12.1.09, all remaining monies collected under and pursuant to the provisions of this chapter shall not be deposited into the City's general fund, but shall, instead, be deposited and paid into a special account of the City, which is hereby established, and earmarked for the purposes as outlined in Section 3-12.1.09, and which shall be paid only from the revenues of this account and not from the City's general fund.

Additional funds (after allocating funds as outlined in Section 3-12.1.09) will be allocated to augment public safety services. Additional manpower, equipment, services and supplies, capital outlay items and facility needs will be submitted by the Police and Fire Chiefs to the Oversight Committee and the Committee will make funding suggestions to the City Manager and City Council. The City Council will then approve and authorize additional expenditures to the benefit of public safety services.

The balance on this special account shall earn interest, which shall be deposited back into the account.

(§ 1, Ord. 1020, eff. November 27, 2004)

The City Council, at its sole and complete discretion, may advance funds from the City's general fund into the special account, established in Section 3-12.1.10, in order to accomplish the objectives of this chapter. Any advancement from the City shall be reimbursed by the special account, to the City, with interest calculated at the same rate the City receives in its investment portfolio during the time of the advancement, within 24 months of the date of the advance.

(§ 1, Ord. 1020, eff. November 27, 2004)

Pursuant to the purposes and intent of this chapter, the hiring of additional personnel and purchases necessary to accomplish the goals of this chapter are hereby authorized. The City Manager is directed to create a system to designate and classify the employees hired and supplies and services and capital outlay purchases made from the tax revenue generated under this chapter, as specially-funded personnel, supplies and services, and capital outlay items, so that City general fund expenditures for public safety are not reduced or avoided.

(§ 1, Ord. 1020, eff. November 27, 2004)

Pursuant to the requirements of the State Board of Equalization, this chapter 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 (sales) 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 and Section 7285.91 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a 2/3 majority 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 (sales) 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.

(c) To adopt a retail transactions (sales) 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.

(d) To adopt a retail transactions (sales) 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 (sales) 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.

(§ 1, Ord. 1020, eff. November 27, 2004)

Prior to the operative date of this chapter, as required by State law, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of the special transactions (sales) and use tax imposed under this chapter; provided, however, that if the City shall not have contracted with the State Board of Equalization prior to the operative date of this chapter, the City shall nevertheless so contract and in such case the operative date of the special sales tax shall be the first day of the first calendar quarter following the execution of such contract.

(§ 1, Ord. 1020, eff. November 27, 2004)

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 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 retail sales are consummated shall be determined under the rules and regulations to be prescribed and adopted by the State Board of Equalization.

(§ 1, Ord. 1020, eff. November 27, 2004)

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

(§ 1, Ord. 1020, eff. November 27, 2004)

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 the ordinance codified in this chapter as though fully set forth herein.

(§ 1, Ord. 1020, eff. November 27, 2004)

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 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 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 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:

(i) Provide an exemption from this special sales 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

(ii) 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 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 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 of the Revenue and Taxation Code.

(§ 1, Ord. 1020, eff. November 27, 2004)

(a) There shall be excluded from the measure of the special transactions (sales) and 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-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 the special transactions (sales) 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 the City, 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 section, delivery to a point outside the City shall be satisfied:

(i) 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 Division 3.5 (commencing with Section 9840) 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 or her principal place of residence; and

(ii) 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 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 are exempted from the special use tax imposed by this chapter, 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 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 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 subsection (7) of this section, 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 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 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 chapter 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.

(§ 1, Ord. 1020, eff. November 27, 2004)

All amendments subsequent to the effective date of this chapter 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 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 chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter.

(§ 1, Ord. 1020, eff. November 27, 2004)

The special sales tax levied under this chapter is in addition to, not in lieu of, any and all other applicable taxes already in existence.

(§ 1, Ord. 1020, eff. November 27, 2004)

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 chapter, of any tax or any amount of tax required to be collected hereunder.

(§ 1, Ord. 1020, eff. November 27, 2004)

In order to further the purposes and intent of this chapter, the City Council is authorized to amend this chapter in the following areas without a further vote of the people:

(a) The composition of the Citizens Oversight Committee;

(b) Any change required by the State of California as a precondition to the collection of the special tax authorized hereunder; and

(c) The appropriateness to raise and increase, but not to decrease, the number of specially-funded personnel supplies and services and capital outlay items authorized under Section 3-12.1.12.

(§ 1, Ord. 1020, eff. November 27, 2004)

The authority to levy the tax imposed by this ordinance shall not expire except upon repeal by the City Council. The City Council shall consider repeal of the special transactions (sales) and use tax at public hearings in year 20 and every 10 years thereafter held for that purpose.

(§ 1, Ord. 1020, eff. November 27, 2004)