HomeMy WebLinkAboutMINUTES - 08101993 - H.1 TO: BOARD OF SUPERVISORS ¢ I
s Contra
Phil Batchelor, County Administrator ' \` Costa
FROM: lJ
County
4�C
Auust 10 1993
DATE: g r�s�A 2oiic+t I
SUBJECT: CONSIDER WHETHER TO LEAVE ON THE NOVEMBER 2, 1993 BALLOT A
SUPPLEMENTAL SALES TAX MEASURE IN THE EVENT THAT PROPOSITION
172 IS DEFEATED STATEWIDE
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)8 BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS :
1 . CONSIDER whether to leave on the November 2, 1993 ballot the
supplemental sales tax measure which was placed on the ballot
by the Board of Supervisors on August 3, 1993, the intent of
which would be to continue the one-half cent sales tax in
Contra Costa County if it is approved by the voters and if
Proposition 172 is defeated statewide.
2 . If the Board of Supervisors determines to leave the
supplemental sales tax measure on the ballot, the Board should
take the following actions :
A. INTRODUCE the attached ordinance [see Supplemental Agenda
item 1 .24 ] which will, if approved by the voters and if
Proposition 172 is defeated statewide, impose the
additional one-half cent .sales tax in Contra Costa
County, WAIVE reading, and
B. FIX September 28, 1993 at 11 :00 A.M. in the Board's
Chambers as the date, place and time to conduct a public
hearing on the ordinance as is required by Government
Code Section 54954 . 6 .
C. DIRECT the Clerk of the Board of Supervisors to provide
the notice of this hearing as is required by Government
Code Section 54954 .6 (b) .
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON August 19, 199=3 APPROVED AS RECOMMENDED OTHER
The Board DETERMINED not to place a one-half cent County Sales Tax
measure before the electorate on November 2, 1993, and DELETED Item 1.24 placed
on the agenda to introduce the related ordinance.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: = NOES: = AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED
Contact: PHIL BATCHEL .CLERK OF THE BOARD OF
cc: See Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY.
-2-
3 . If the Board of Supervisors determines to leave the
supplemental sales tax measure on the ballot, CONSIDER whether
to make any changes in the ballot language approved by the
Board of Supervisors on August 3, 1993, as is contained in
Resolution 93/477, a copy of which is attached for the Board' s
information.
BACKGROUND:
SB 509 (Chapter 73, Statutes of 1993) amended Revenue & Taxation
Code Section 7285 and thereby authorized the Board of Supervisors
in any county to levy a transaction and use tax (sales tax) at a
rate of 1/4 percent or a multiple thereof, providing that the
measure is approved by a 2/3 vote of all members of the Board of
Supervisors and the tax is approved by a majority vote of the
voters . On August 3, 1993, the Board of Supervisors voted to place
on the November 2, 1993, Special Election ballot a supplemental
one-half cent sales tax measure. The Board clearly expressed its
intent that this supplemental sales tax measure would be
implemented only if it is approved by the voters in this County and
if Proposition 172, the statewide permanent extension of the sales
tax, fails statewide. If Proposition 172 passes statewide, this
supplemental sales tax measure would not be implemented in Contra
Costa County.
The proceeds of this supplemental sales tax measure would be used
for public safety and other purposes .
The intent in placing this supplemental measure on the ballot is to
allow the voters of Contra Costa County to have some control over
their own destiny. If the voters in this County approve
Proposition 172, but the voters statewide fail to do so, then
massive cuts will have to be made to public service programs in
this County, as well as most other services, despite the wishes of
the voters in this County. By placing this supplemental measure on
the ballot, the voters will have an opportunity to enact an
extension of the one-half cent sales tax, regardless of what voters
in other parts of the State may do in regard to Proposition 172 .
On August 3, 1993, the Board of Supervisors indicated that it
wished to consider again on August 10, 1993 whether to leave this
supplemental sales tax measure on the ballot and, if so, whether to
make any changes to the ballot language. As is noted above, this
measure has received a 2/3 vote (effectively, a 4/5 vote) by the
Board of Supervisors and needs a majority approval by the voters .
According to the State Board of Equalization, similar action to
place a supplemental sales tax measure on the ballot has been taken
in the following counties to date:
Alameda, Glenn, Marin, San Francisco, San Luis Obispo, Santa Clara,
Santa Cruz, Sonoma and Stanislaus .
In addition, the following four counties have placed an additional
one-half cent measure on the ballot, which is not dependent on the
passage or failure of Proposition 172 :
Fresno, Merced, Tehama and Mendocino
cc: County Administrator
County Clerk-Recorder
County Counsel
Auditor-Controller
State Controller (Via CAO)
State Board of Equalization (Via CAO)
COUNTY COUNSEL'S OFFICE
CONTRA COSTA COUNTY
MARTINEZ, CALIFORNIA
nate: August 9, 1993
To: Board of Supervisors
From: Victor J. Westman, County Counsel
Re: County Sales Tax Election Ordinance
Attached for introduction, waiver of reading and consideration
at this August 10th public meeting, is an ordinance to provide for a
Contra Costa County one-half percent sales tax and its collection by
the State Board of Equalization should the statewide sales tax
(Proposition 172 ) measure fail at the November 2, 1993 election and
this County' s sales tax proposal be approved.
After today' s public review and consideration of this ordinance,
the Board should fix September 28, 1993 for further public hearing
and adoption. This (at least 45 days ) notice of public hearing break
between the ordinance' s introduction and its adoption is required by
Government Code section 54954 . 6 (a) , the "Bergeson Bill : "
The attached ordinance has been prepared utilizing the State
Board of Equalization' s suggested modal ordinance (Rev. 07/93 ) for
this purpose.
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df10(1): elec.tax
ORDINANCE NO. 93-
(Providing For An Alternative County Sales Tax
and Administration By the State of Equalization)
The Contra Costa County Board of Supervisors ordains as follows :
SECTION I . Title And Intent. This ordinance shall be known as
the Revenue and Taxation Code Section 7285 Transactions and Use
Tax Ordinance. This ordinance shall be applicable in all of the
incorporated and unincorporated territory of the County of Contra
Costa, which territory shall be referred to herein as "District" .
This ordinance is intended to be supplemental to the provisions
of Contra Costa County Ordinance Code Division 64 and shall not
be construed in any manner to conflict with, restrict or limit
Division 64 .
SECTION II. Operative Date. Should statewide Proposition 172
(Chap. 41 , Stats . 1993 ) not be approved by the voters at the
election to be held on November 2, 1993 and this County' s
proposed Revenue and Taxation Code section 7285 (S .B. 509-1993 )
sales tax measure be approved by its voters at the same election,
this ordinance shall be operative on January 1, 1994 pursuant to
Revenue and Taxation Code section 7285 . 3 (S .B. 509 - 1993 ) and
this ordinance' s sales and use - tax collection shall commence on
that date. If for any valid legal reason it is determined this
ordinance can not be operative as of January 1, 1994, it shall
become operative at the earliest date allowed by the California
Revenue and Taxation Code.
SECTION III . Purpose. This ordinance 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 under the
authority of Part 1 . 7 (in particular, sections 7285 and 7285 . 4 of
S . B. 509 ) of Division 2 of the Revenue and Taxation Code to be
administered under the provisions of Part 1 . 6 (commencing with
Section 7251 ) of Division 2 of the Revenue and Taxation Code;
this tax ordinance shall be operative (as provided herein) 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
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 and allowed by sections 7285 and 7285 . 4 .
C. To adopt a retail transactions and use tax ordinance
which imposes a tax and provides a measure therefor that can be
ORDINANCE NO. 93-
1
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 ordinance.
SECTION IV. Contract With State. Prior to the operative date,
the District 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.
SECTION V. Transactions Tax Rate. 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 District 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 ordinance.
SECTION VI. Place Of Sale. For the purposes of this
ordinance, 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.
SECTION VII. Use Tax Rate. An excise tax is hereby imposed on
the storage, use or other consumption in the District of tangible
personal property purchased from any retailer on and after the
operative date of this ordinance for storage, use or other
consumption in said territory 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
state sales or use tax regardless of the place to which delivery
is made.
ORDINANCE NO... 93-
2
SECTION VIII . Adoption Of Provisions Of State Law. Except as
otherwise provided in this ordinance 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
ordinance as though fully set forth herein.
SECTION IX. _Limitations On Adoption Of State Law And Collection
Of Use Taxes . 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 District 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 District 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 Ordinance.
( 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 administration or
operation of this Ordinance.
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 "District" shall be substituted for the word
"State" in the phrase "retailer engaged in business in this
ORDINANCE NO. 93-
3
State" in Section 6203 and in the definition of that phrase in
Section 6203 .
SECTION X. Permit Not Required. 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 ordinance.
SECTION XI. Exemptions And Exclusions.
A. There shall be excluded from the measure of the
transactions tax and the use ta.x 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
transactions tax the gross receipts from:
( 1 ) Sales of tangible personal property to operators
of aircraft to be used or consumed principally outside. the County
in which the sales is made and directly and exclusively in the
use of such aircraft as common carriers, 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 District
which is shipped to a point outside the District, pursuant to the
contract of sales , 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 District 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-District 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-District and
declaration under penalty of perjury, signed by the buyer, that
the vehicle will be operated from that address .
ORDINANCE NO. 93-
4
( 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 ordinance.
(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 ordinance.
( 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.
( 6 ) Except as provided in subparagraph ( 7 ) , ` a retailer
engaged in business in the District 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
District or participates within the District in making the sale
of the property, including, but not limited to, solicit or
receiving the order, either directly or indirectly, at a place of
business of the canvasser, solicitor, subsidiary, or person in
the District under the authority of the retailer.
( 7 ) "A retailer engaged in business in the District"
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 District.
D. Any person subject to use tax under this ordinance 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.
SECTION %II. Amendments . All amendments subsequent to the
effective date of this ordinance 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
ORDINANCE NO. 93-
5
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 ordinance; provided, however, that no such
amendment shall operate so as to affect the rate of tax imposed
by this ordinance.
SECTION XIII . Enjoining Collection Forbidden. 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 District, or against any officer of the State or the
District, 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.
SECTION XIV. Severability. If any provision of this ordinance
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.
SECTION XV. Effective Date. This ordinance relates to the
levying and collecting of the District Transactions and use taxes
and shall take effect immediately but will become operative only
as provided in its Section 2 . Within 15 days of passage, this
ordinance shall be published once with the names of supervisors
voting for and against it in the a
newspaper published in this County.
PASSED on by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: Phil Batchelor, Clerk of the
Board of Supervisors and County
Administrator
By:
Deputy Chairperson
df10(1):ord\sa1es-tx
ORDINANCE NO. 93-
6