Sanger Municipal Code § 66-209 Permit not required

This article shall be known as the Sanger Police, Fire, Paramedic 9-1-1 Emergency Response and Gang/Drug Prevention Special Transactions and Use Tax Ordinance. The City of Sanger hereinafter shall be called "city." This article shall be applicable in the incorporated territory of the city.

(Ord. No. 1094, Exh. A, 1-31-08)

"Operative date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this article, the date of such adoption being as set forth below.

(Ord. No. 1094, Exh. A, 1-31-08)

This article is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

(1) To impose a special retail transactions and use tax in accordance with the provisions of Revenue and Taxation Code division 2, part 1.6 of (commencing with section 7251) and division 2, part 1.7, section 7285.91, which authorize the city to adopt this tax article which shall be operative if two-thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

(2) To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the sales and use tax law of the state insofar as those provisions are not inconsistent with the requirements and limitations contained in Revenue and Taxation Code, division 2, part 1.6.

(3) To adopt 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 State Sales and Use Taxes.

(4) To adopt 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 Revenue and Taxation Code, division 2, part 1.6, 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 article.

(Ord. No. 1094, Exh. A, 1-31-08)

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 ordinance; 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. No. 1094, Exh. A, 1-31-08)

For the privilege of selling tangible personal property at retail, a special tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of 0.75 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. Such tax shall be in addition to any other transactions tax imposed by this Code or applicable state law.

(Ord. No. 1094, Exh. A, 1-31-08)

For the 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 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. No. 1094, Exh. A, 1-31-08)

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 article for storage, use or other consumption in said territory at the rate of 0.75 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. Such special tax shall be in addition to any other use tax imposed by this Code or applicable state law.

(Ord. No. 1094, Exh. A, 1-31-08)

Except as otherwise provided in this article and except insofar as they are inconsistent with the provisions of Revenue and Taxation code, division 2, part 1.6, all of the provisions of Revenue and Taxation Code division 2, part 1 (commencing with section 6001) are hereby adopted and made a part of this article as though fully set forth herein.

(Ord. No. 1094, Exh. A, 1-31-08)

In adopting the provisions of Revenue and Taxation Code, division 2, part 1:

(1) Wherever the state 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:

a. 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;

b. 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 article.

c. In those sections, including, but not necessarily limited to, sections referring to the exterior boundaries of the state, where the result of the substitution would be to:

1. 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;

2. 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.

d. In Revenue and Taxation Code §§ 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828.

(b) The word "city" shall be substituted for the word "state" in the phrase "retailer engaged in business in this state" in Revenue and Taxation Code 6203 and in the definition of that phrase in section 6203.

(Ord. No. 1094, Exh. A, 1-31-08)

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

(Ord. No. 1094, Exh. A, 1-31-08)

(a) 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 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, 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 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 Vehicle Code, division 3, chapter 1 (commencing with section 4000); aircraft licensed in compliance with Public Utilities Code § 21411; and undocumented vessels registered under Vehicle Code division 3.5 (commencing with section 9840) 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

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 article.

(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 article.

(5) For the purposes of subparagraphs (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 use tax imposed by this article, 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 Revenue and Taxation Code §§ 6366 and 6366.1.

(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 article.

(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 article.

(5) For the purposes of subparagraphs (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 subparagraph (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 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 Vehicle Code division 3, chapter 1 (commencing with section 4000); aircraft licensed in compliance with Public Utilities Code § 21411; or undocumented vessels registered under Vehicle Code division 3.5 (commencing with section 9840). 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 article 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 Revenue and Taxation Code, division 2, part 1.6 with respect to thesale to the person of the property the storage, use or other consumption of which is subject to the use tax.

(Ord. No. 1094, Exh. A, 1-31-08)

(a) All amendments subsequent to the effective date of this article to Revenue and Taxation Code, division 2, part 1, relating to sales and use taxes and which are not inconsistent with Revenue and Taxation Code, division 2, parts 1.6 and 1.7; and all amendments to parts 1.6 and 1.7, 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 unless any increase in the rate of this tax is first approved by two-thirds of the voters of the city voting on such question.

(b) Pursuant to Elections Code § 9217 or any successor statute, the City Council of the City of Sanger may amend or repeal this article and any of its exhibits, but not increase or extend the rate of tax imposed herein without a vote of the people.

(Ord. No. 1094, Exh. A, 1-31-08)

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 article, or Revenue and Taxation Code, division 2, part 1.6, of any tax or any amount of tax required to be collected.

(Ord. No. 1094, Exh. A, 1-31-08)

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

(Ord. No. 1094, Exh. A, 1-31-08)

(a) All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into a special public safety trust fund or account designated for use by the city only for the police, fire, paramedic, 9-1-1 emergency, and gang/drug prevention services set forth in the program guidelines and public safety expenditure plan for the administration and expenditure of the tax proceeds, attached to Ord. No. 1094 as exhibit 1.

(b) The public safety expenditure plan may be amended from time to time by a majority vote of the city council, so long as the funds are utilized for these public safety services. For the purposes of this part, "public safety services" means:

(1) Obtaining, furnishing, operating, and/or maintaining police protection equipment or apparatus, paying the salaries and benefits of police protection personnel, gang/drug prevention services, and such other police protection service expenses, including capital expenses, as are deemed necessary by the city council for the benefit of the residents of the city;

(2) Obtaining, furnishing, operating, and/or maintaining fire protection equipment or apparatus and ambulances, paying the salaries and benefits of fire protection and paramedic personnel, and such other fire protection service expenses, including capital expenses, as are deemed necessary by the city council for the benefit of the residents of the city.

(c) No revenues collected pursuant to the tax levied hereby may be spent on department administrators' salaries, general fund operating expenses in effect at the time this article becomes effective, or projects not a part of the public safety expenditure plan.

(d) It is the intent of the people that transaction and use tax revenues (hereafter "special tax revenues") collected under the special tax authorized by this article shall supplement rather than supplant expenditures for public safety in effect at the time this article became effective. This means that the general fund expenditures for public safety shall at a minimum remain constant and the special tax revenues collected hereunder will be used to add to the city's expenditures for public safety and not to replace the city's expenditures for public safety.

The following illustrations help to explain the requirement to supplement with special tax revenues and the prohibition against supplanting the use of general fund revenues with the special tax revenues collected:

(1) If the city spent X dollars from the general fund for public safety at the time this article became effective, the city must continue to spend a minimum of X dollars for public safety.

(2) If the city receives Y dollars in special tax revenues under this article, the city may only use the Y dollars to add to the X dollars spent for public safety from the general fund.

(3) The city may not replace X dollars used for public safety with Y dollars used for public safety.

(e) To ensure that the special tax revenues are used only to supplement general fund expenditures and not to supplant general fund expenditures, the city shall use the methodology set forth below:

(1) The total general fund revenue for the city in fiscal year 2007—2008 was $9,905,107.

(2) The general fund expenditures for public safety services (as defined in this section) which were in effect in fiscal year 2007—2008 totaled $6,502,108.00. This included $4,082,571.00 for police public safety services and $2,419,537.00 for fire public safety services including ambulance. Those amounts reduced to percentages total 65.65 percent as follows: 41.22 percent for police public safety and 24.43 percent for fire public safety services including ambulance.

(3) Each fiscal year the city must appropriate a minimum of $4,082,571.00 for police public safety services from general fund sources and $2,419,537.00 for fire and ambulance public safety services as defined in subsections (a) and (b) of this section 66-214. This dollar amount shall be known as the baseline dollar amount for each of the public safety departments: police and fire.

(4) In the fiscal year 2018—2019 budget and subsequent fiscal year budgets, if the general fund revenue for the city is higher than $9,906,107, the city must appropriate a minimum 65.65 percent of the general fund to police public safety fire and ambulance public safety. This percentage shall be known as the baseline percent for public safety.

(5) In the fiscal year 2018—2019 budget and subsequent fiscal year budgets, revenues collected under the transactions and use tax may be allocated and appropriated only after the baseline dollar amount level of funding or the baseline percent, whichever is higher, is met with general funds revenues.

(f) To ensure that the use of transactions and use tax revenues and the level of funding requirements of this article are met, the city shall secure an annual compliance examination with attestation opinion.

(Ord. No. 1094, Exh. A, 1-31-08; Ord. No. 2019-02, § 1, 2-21-19)

There is hereby established in the city a citizen's oversight committee to monitor the expenditures of special revenue collected pursuant to this chapter [article] only and to report to the city council.

(1) Consistent with established regulations and practices in the city, members of the citizen's oversight committee shall be appointed by the mayor with the advice and consent of the city council. The committee shall consist of five members. All committee members must be residents of the city. The committee members shall not be current city employees, officials, contractors or vendors of the city. Past employees, officials or vendors shall be eligible to serve on the committee, provided that there are no conflicts of interest as determined by the city attorney.

(2) Candidates for committee membership shall be solicited through an open application process that is promoted through a broad-based recruitment process. Any Sanger resident of voting age is eligible to apply for committee membership, subject to the appointment categories specified herein. The Sanger Police and Fire Chiefs will review applications and provide input to the mayor and council on applicants. All applications will be reviewed by the mayor and city council, who will collectively have the authority to make all final decisions on committee membership.

(Ord. No. 1094, Exh. A, 1-31-08)

(a) Of the members of the committee first appointed, three shall be appointed for terms of two years, and two for three years. Their successors shall be appointed for terms of two years. No committee member shall serve more than three consecutive terms.

(b) Committee members whose terms expire shall continue to serve until their successor is appointed and qualified. If a vacancy occurs other than by expiration of a term, it shall be filled by appointment for the unexpired portion of the term.

(c) Absence from four consecutive regular meetings without the formal consent of the committee shall be deemed to constitute retirement of such committee member from the committee, and the position of such retired member shall be deemed vacant.

(d) Committee members shall serve at the pleasure of the city council and may be removed from office in the sole determination, with or without cause, notice, hearing or appeal, by the city council.

(e) Committee members shall receive a fee of $25.00 for each meeting of the committee which they attend.

(Ord. No. 1094, Exh. A, 1-31-08)

(a) The committee may adopt rules and regulations to govern proceedings and shall set a time for regular meetings which shall be held at least once each month. A chairman, vice-chairman and secretary will be elected.

(b) The committee shall elect a chairman, vice-chairman and secretary. Their respective duties shall be as are usually carried out by such officers. Officers shall hold office for one year and until their successors are elected.

(c) A majority of the committee shall constitute a quorum for the transaction of business.

(d) Committee meetings are subject to all open-meeting laws, and must be noticed and open to the public. Committee minutes and reports are a matter of public record and must be made available to the public in the manner provided by law.

(e) Orientation and training is mandatory for all committee members. Each committee member shall attend such orientation and training prior to their first regular committee meeting.

(Ord. No. 1094, Exh. A, 1-31-08)

(a) The citizen's oversight committee shall review expenditures of special revenue collected pursuant to this chapter [article] only to determine whether such funds are expended for the purposes specified in the then-current public safety measure police and fire expenditure plan, and issuing reports on their findings to the city council at least annually. Committee members may also review the annual financial or performance audits performed by an independent auditor. The committee shall confine its oversight specifically to revenues generated under this chapter [article]. Revenue generated through other sources shall be outside the jurisdiction of the committee.

(b) In order to preserve the integrity and independence of the oversight process, committee members shall not play a formal role in contracting, project management, or any other aspect of the public safety measure funding.

(c) The committee is not charged with decision-making on spending priorities, schedules, project details, funding source decisions, financing plans, or tax rate assumptions. The committee shall serve in an advisory-only role to the city council. The committee shall have no jurisdiction other than that delegated to it by the city council pursuant to this chapter [article].

(d) The city manager or his or her designee shall provide any reasonable administrative or technical assistance required by the committee to fulfill its responsibilities or publicize its findings. The city manager or his or her designee shall ensure that all proposed expenditures to be made from revenues collected under this article are submitted to the committee prior to proposing that the city council approve such expenditures. The committee shall consider proposed expenditures and submit its written recommendations to the city council. City council agenda items relating to expenditures from revenues collected under this article shall include text regarding submission of the proposed expenditures to the committee and the committee's recommendations.

(Ord. No. 1094, Exh. A, 1-31-08; Ord. No. 2017-02, § 1, 4-20-17)

The authority to levy the tax imposed by this article shall continue in effect until ended by the voters of the city.

(Ord. No. 1173, § 1, 8-4-16; Ord. No. 2024-07, § 1, 11-5-24)