Ventura Municipal Code Ch. 4.129 San Buenaventura City Clean Water/Beaches/Street Repairs/Safety Measure…

This chapter shall be known as the “San Buenaventura City Clean Water/Beaches/Street Repairs/Safety Measure” (the “measure”). This chapter shall be applicable in the incorporated territory of the city. (Ord. No. 2016-016, § 1, 12-12-16)

The people of the city of San Buenaventura declare that this chapter, pursuant to the measure, is adopted as a general tax to ensure adequate funding for essential city services which are funded by the city’s general fund. Among the essential services funded by the general fund are police protection, fire protection, and road and street maintenance and improvements. (Ord. No. 2016-016, § 1, 12-12-16)

The general transactions 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 (“operative date”). Based on a November 8, 2016, election, the operative date for the general transactions and use tax imposed hereunder shall be April 1, 2017. (Ord. No. 2016-016, § 1, 12-12-16)

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 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 7285.9 of Part 1.7 of Division 2, and which authorizes the city to adopt the tax ordinance codified in this chapter, which shall be operative if a 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 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 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 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 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. No. 2016-016, § 1, 12-12-16)

Prior to the operative date of this chapter, 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 imposed under this chapter; 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. 2016-016, § 1, 12-12-16)

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 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. No. 2016-016, § 1, 12-12-16)

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 their 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. 2016-016, § 1, 12-12-16)

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 chapter for storage, use, or other consumption in the city at the rate of one-half of one percent of the sales price of the property. 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. (Ord. No. 2016-016, § 1, 12-12-16)

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. No. 2016-016, § 1, 12-12-16)

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:

a. Provide an exemption from this use 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 remains 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 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. (Ord. No. 2016-016, § 1, 12-12-16)

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. No. 2016-016, § 1, 12-12-16)

A. There shall be excluded from the measure of the transactions 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-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 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 their 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:

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 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, their 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 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 (B)(3) and (B)(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 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 (C)(3) and (C)(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 (C)(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. (Ord. No. 2016-016, § 1, 12-12-16)

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 Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Parts 1.6 and 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. (Ord. No. 2016-016, § 1, 12-12-16)

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, 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 hereunder. (Ord. No. 2016-016, § 1, 12-12-16)

A. Upon written notice from the city council to the State Board of Equalization as required, the tax imposed by the provisions of this chapter shall be suspended, and all funding related thereto stopped, if the revenue generated under this chapter is diverted, seized, or taken by the state of California without the authorization of a majority of the voters of the city casting ballots on the issue.

B. The effective date of the suspension of the general transactions and use tax imposed hereunder shall be the first day of the first calendar quarter commencing more than 110 days after the receipt by the State Board of Equalization.

C. The city council may, at any time thereafter, find that the state of California is no longer diverting, seizing, or taking the proceeds of the transactions and use tax imposed by this chapter. Upon making that finding, the city council shall notify the State Board of Equalization that the suspension of the tax is to be lifted. The lifting of the suspension shall be effective and the tax thereafter collected on the first day of the first calendar quarter commencing more than 110 days after the receipt by the State Board of Equalization of the notice from the city council. (Ord. No. 2016-016, § 1, 12-12-16)

A. There is hereby created a San Buenaventura city clean water/beaches/street repairs/safety measure citizens oversight committee (“citizens oversight committee”) to review the revenues and expenditures generated and spent under this chapter.

B. The citizens oversight committee shall consist of seven members who shall be residents of the city. Members shall be selected, appointed, and removed in accordance with Chapter 2.410.

C. Members of the citizen oversight committee shall serve terms as provided for in Section 2.410.220.

D. Any vacancy for a member on the citizens oversight committee shall be filled in accordance with Section 2.410.260.

E. Members of the citizens oversight committee shall be restricted to individuals who are registered voters within the city of San Buenaventura. Elected officials at any level of government and employees of the city of San Buenaventura and the dependents of each are ineligible to serve as members of the citizens oversight committee.

F. The citizens oversight committee shall review the projected revenues and recommended expenditures for the funds generated by this chapter and shall make their recommendations to the city council on the same as a part of the city’s budget process. After a review of the independent audit required by Section 4.129.180, the citizens oversight committee shall provide its findings to the city council. Unless modified by city council by ordinance, the citizens oversight committee shall not have any function, power, or authority other than as expressly provided herein.

G. The citizens oversight committee shall meet quarterly or as often as it deems necessary to accomplish the objectives stated in this section. (Ord. No. 2016-016, § 1, 12-12-16)

Prior to the adoption of the city budget in June of each year, the city manager and the chief financial officer shall present to the city council an accounting of the tax revenues received and expenditures made under this chapter. (Ord. No. 2016-016, § 1, 12-12-16; Ord. No. 2022-002, § 12, 3-21-22)

After the close of every fiscal year in which the tax imposed hereunder is levied, the city shall cause an independent audit to be conducted as to the revenue generated as a result of this measure and to ensure the proper expenditure thereof consistent with the purposes of this chapter. The report and any findings of the independent auditor shall be transmitted to the mayor, city council, city manager, city attorney, chief financial officer, and the citizens oversight committee established by Section 4.129.160. (Ord. No. 2016-016, § 1, 12-12-16; Ord. No. 2022-002, § 12, 3-21-22)

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. The suspension or reactivation of this chapter if the revenue generated under this chapter is diverted by the state of California for purposes other than those specifically enumerated herein;

C. Any change required by the state of California as a precondition to the collection of the tax authorized hereunder.

Notwithstanding any provision to the contrary, any proposed change to the tax rate imposed under this chapter shall be submitted to the vote of the people. (Ord. No. 2016-016, § 1, 12-12-16)

The authority to levy the tax imposed hereunder shall expire 25 years from the operative date, unless extended by the voters. (Ord. No. 2016-016, § 1, 12-12-16)