HomeMy WebLinkAbout8111 RESOLUTION NO. 5111
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
ORDERING THE SUBMISSION OF AN ORDINANCE PROPOSING THE
IMPOSITION OF A TRANSACTIONS AND USE TAX (A GENERAL TAX)
AT THE RATE OF ONE PERCENT (1.0%) TO THE QUALIFIED VOTERS OF
THE CITY OF REDLANDS AT THE GENERAL MUNICIPAL ELECTION TO
BE HELD ON NOVEMBER 3, 2020, AS CALLED BY RESOLUTION NO.
8072
WHEREAS, the City Council ("City Council) of the City of Redlands ("City") has
created a balanced budget every year for the past 12 years despite being severely impacted by the
decline in national, state, and local economies, and significant State funding takeaways; and
WHEREAS, the City Council is taking every proactive effort to save money and maintain
the level of service our community has come to expect, including cutting its budget by reducing
service positions, including cuts to public safety; purchasing essentials with grant funding;
conserving energy to keep costs down; and participating in purchasing pools with other cities to
lower expenses; and
WHEREAS, the City of Redlands is one of the few cities in the County of San
Bernardino with its own Fire and Police Departments, which guarantees public safety resources
are available when needed for Redlands' residents and not diverted to other cities; and
WHEREAS, calls for 911 emergencies, crime rates, fire risks and the need to address
homelessness is much higher than in the past, and the City has fewer firefighters, police officers
and paramedics in Redlands than it had in the past; and
WHEREAS, members of the community have identified the need to address
homelessness as one of its top priorities; and
WHEREAS, members of the community have placed a clear priority on the need to
maintain police services, including neighborhood police patrols, crime prevention, and
investigations; and
WHEREAS, members of the community also consider the provision of fire protection
and paramedic services a high priority; and
WHEREAS, there is a great need to fix damaged sidewalks and curbs and much of the
City's aging infrastructure before it becomes more expensive to fix in the future; and
WHEREAS, revenue constraints will cause ongoing funding for the A.K. Smiley Library
and other services to be reduced, translating to fewer materials, programs and hours of services;
and
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WHEREAS, despite significant cost saving measures the City Council has employed in
recent years to address the ongoing budget crisis, including the consolidation of job duties,
significant reductions in staffing levels, sales of assets and deferment of equipment purchases,
and the creation of assessment districts, current revenue forecasts indicate that the City's General
Fund will struggle to maintain basic service levels in future fiscal years; and
WHEREAS, in order to address these issues as soon as possible, the City Council desires
to enact a one-cent transactions and use tax ordinance (the "Measure"), with approval of the
voters at the statewide general election on November 3, 2020; and
WHEREAS, if enacted, this Measure would provide a locally-controlled revenue source,
enacted solely to raise revenue for any and all municipal purposes including addressing
homelessness, maintaining vital police and fire services, maintaining library services, keeping
public areas, parks and recreation facilities well-maintained and free of graffiti and help maintain
public buildings, and infrastructure including sidewalks, curbs and stone drains; and
WHEREAS, the Measure will give the City Council local control over funds for local
needs and no funds from this measure can be taken away by the State; and
WHEREAS, if approved by at least a majority of affirmative votes, the rate of the
transactions tax imposed by the City of Redlands' Transactions and Use Tax Ordinance, which
proposes to impose a general tax ("Tax Ordinance"), shalI be one percent (1.0%) of the gross
receipts of any retailer from the sale of all tangible personal property sold at retail in the City and
the rate of the use tax imposed shall be one percent (1.0%) of the sales price of tangible personal
property stored, used or otherwise consumed in the City; and
WHEREAS, following the recommendation of State Board of Equalization, the City
Council introduced the Tax Ordinance at its June 16, 2020, City Council meeting and adopted
the Tax Ordinance following the second reading of the Tax Ordinance at the regular meeting of
the City Council held on July 7, 2020; and
WHEREAS, pursuant to Section 2(b) of Article XIIIC of the California Constitution
subject a very limited exception, the City may not impose, extend, or increase any general tax
unless and until that tax is submitted to the electorate and approved by a majority vote at an
election consolidated with a regularly scheduled election for members of the City Council; and
WHEREAS, it is the desire of the City Council that the Board of Supervisors of the
county of San Bernardino be requested to consolidate said election with the scheduled election to
be held that same day, and that the County Registrar be instructed to provide all necessary
election services to the City; and
WHEREAS, a resolution calling for an election to consider a general tax measure
imposed for general governmental purposes, such as the Tax Ordinance, is required to be
approved by at least a two-thirds vote of the City Council;
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as
follows:
Section 1. Pursuant to California Constitution Article XIIIC, section 2(b), Govenunent
Code section 53724, and Elections Code section 9222, the City Council hereby calls and orders
to be held in the City of Redlands, at the general municipal election of the qualified voters of the
City on November 3, 2020, for the purpose of submitting to the voters an ordinance proposing
the imposition of a Transactions and Use Tax (the "Tax"), as a general tax, as authorized by
Revenue and Taxation Code section 7285.9. All proceeds of the Tax shall be deposited into the
City's General Fund.
Section 2. The ordinance authorizing the Tax to be approved by the voters pursuant to
Section 1 shall be known as the City of Redlands' Transactions and Use Tax Ordinance and is as
set forth in Exhibit "A" hereto. The City Council has approved the Tax Ordinance, the form
thereof, and its submission to the voters of the City at the November 3, 2020 election, as required
by Revenue and Taxation Code section 7285.9, subject to the approval of a majority of the voters
voting on the measure at the election. The entire text of the Tax Ordinance shall be made
available to the public upon request. The Tax Ordinance specifies that the rate of the transactions
tax shall be one percent (1.0%) of the gross receipts of any retailer from the sale of all tangible
personal property sold at retail in the City; it specifies that the rate of the use tax shall be one
percent (1.0%) of the sales price of tangible personal property stored, used or otherwise
consumed in the City. The California Board of Tax and Fee Administration shall collect the tax
from retailers subject to the Tax and remit the funds to the City.
Section 3. The Tax Ordinance shall be submitted to the voters on the ballot in the form
of the following question:
YES
"To provide funding for safety services, fire protection, paramedics, 911
emergency response, addressing homelessness, police patrols and crime
prevention, maintaining library services, parks, sidewalks and roads,
keeping public areas well-maintained and other general services; shall the
City of Redlands' measure establishing a one-cent sales tax be adopted, NO
providing $10.7 million annually for city services until ended by voters,
requiring a citizen oversight committee, independent audits, and all funds
controlled locally?"
The City Clerk shall maintain a copy of the Tax Ordinance and shall make the same available for
public inspection upon request.
Section 4. The arguments in "Favor" or "Against" the above ballot measure shall not
exceed 300 words and shall be filed with the City Clerk of the City of Redlands on or before
5:00 P.M., August 17, 2020, after which no arguments in "favor" or "against" the City measure
may be submitted to the City Clerk.
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Section 5. That the City Council authorizes and reserves the right of any and all
members of the City Council to file a written argument, not to exceed 300 words, in "Favor" of
the proposed Tax Ordinance.
Section 6. That rebuttal arguments shall be filed with the City Clerk by 5:00 P.M.,
August 21, 2020, and shall not exceed 250 words.
Section 7. That the City Clerk is hereby directed to transmit a copy of the Tax
Ordinance to the City Attorney, who shall prepare an impartial analysis of the measure showing
the effect of the measure on the existing law and operation of the measure in accordance with
section 9280 of the Elections Code.
Section 8. That during the period commencing August 18, 2020, and ending August,
27, 2020, the City Clerk shall make available for public inspection the arguments filed "For" or
"Against" the ballot measure and the impartial analysis.
Section 9. That during the period commencing August 22, 2020, and ending August
31, 2020, the City Clerk shall make available for public inspection the arguments filed in rebuttal
to the arguments filed "For" and "Against" the ballot measure.
Section 10. That the County of San Bernardino's Election Department is hereby
authorized to canvass the returns of the election.
Section 11. That the Board of Supervisors of the county of San Bernardino is hereby
requested to issue instructions to the county's Election Department to take any and all steps
necessary for the holding of the election.
Section 12. That the City of Redlands recognizes that costs will be incurred by the
county of San Bernardino in connection with the election and agrees to reimburse the county for
any such costs.
Section 13. That this resolution, at such time that it is effective, shall serve to
additionally appropriate the cost of placing this ballot measure before the voters for the
November 3, 2020, General Municipal Election, currently estimated at $129,000, from the
General Fund's unassigned fund balance.
Section 14. That the City Clerk is hereby directed to file a certified copy of this
Resolution with the Board of Supervisors and the Election Department of the county of San
Bernardino.
Section 15. That this Resolution shall take effect immediately upon its adoption.
Section 16. That the City Clerk shall certify to the passage of this Resolution and enter
it into the City's book of original resolutions.
Section 17. This Resolution is exempt from the California Environmental Quality Act
(Public Resources Code section 21000 et seq.) ("CEQA") pursuant to the State's CEQA
Guidelines sub-section 15060(c)(2) because the adoption of this Resolution will not result in a
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1:1Resolutionsaes 8100-8199\8111 Nov.2020 Resolution Ord Sales Tax 07,07.20-FINAL.doc
direct or a reasonably f6resecable, indirect, physical change in the environinent, and State CEQA
Guidelines sub-sections 15378(b)(2) and (4), because the adoption of this Resolution, and
imposition of the tax proposed Linder the Tax Ordinance, does not constitute a "project" under
CEQA, and therefore review under CE QA is not required.
APPROVED and ADOPTED by the City Council of the City of Redlands on this 7`h
day
of July, 2020.
aulo�,_+,� aycur
ATTEST:
Je u Donaldson, City Clerk
1 Keso I utionsAcs 8100-8199,81 11 Nov 2020 Resolution Ord SalesTax 07,07,20-FIN A I Aoc
CITY CLERK'S CERTIFICATE
1, Jeanne Donaldson, City Clerk of the City of'Redlands, hereby certify that the foregoing
is a full, true and correct copy of a resolution duly adopted at a, regular meeting of the City
Council duly and regularly held on July 7, 2020, of which meeting all of the members of said
City Council had due notice and at which a majority thereof were present; and that at said
meeting said resolution was adopted by the following vote:
AYFS: Co uncilm embers Barich, Tejeda, Momberger, Davis; Mayor Foster
NOES: None
ABSENT: None
ABSTAIN: None
Dated: July 7, 2020
Jeanionaldson, City Clerk
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F,Rest�Iulions,,Res 9100-8199%8t 1) Nov.2020 Resolution Ord Sa I esi ax 07.07.20-FIN A L.doc
EXHIBIT "A"
ORDINANCE NO. 2913
ORDINANCE NO. 2913
AN ORDINANCE OF THE CITY OF REDLANDS ADDING CHAPTER 3.18
TO THE REDLANDS MUNICIPAL CODE TO ENACT A ONE PERCENT
(1.0%) TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, the City Council ("City Council) of the City of Redlands ("City") has
created a balanced budget every year for the past 12 years despite being severely impacted by the
decline in national, state, and local economies, and significant State funding takeaways; and
WHEREAS, the City Council is taking every proactive effort to save money and maintain
the level of service our community has come to expect, including cutting its budget by reducing
service positions, including cuts to public safety; purchasing essentials with grant funding;
conserving energy to keep costs down; and participating in purchasing pools with other cities to
lower expenses; and
WHEREAS, the City of Redlands is one of the few cities in the County of San
Bernardino with its own Fire and Police Departments, which guarantees public safety resources
are available when needed for Redlands' residents and not diverted to other cities; and
WHEREAS, calls for 911 emergencies, crime rates, fire risks and the need to address
homelessness is much higher than in the past, and the City has fewer firefighters, police officers
and paramedics in Redlands than it had in the past; and
WHEREAS, members of the community have identified the need to address
homelessness as one of its top priorities; and
WHEREAS, members of the community have placed a clear priority on the need to
maintain police services, including neighborhood police patrols, crime prevention, and
investigations; and
WHEREAS, members of the community also consider the provision of fire protection
and paramedic services a high priority; and
WHEREAS, there is a great need to fix damaged sidewalks and curbs and much of the
City's aging infrastructure before it becomes more expensive to fix in the future; and
WHEREAS, revenue constraints will cause ongoing funding for the A.K. Smiley Library
and other services to be reduced, translating to fewer materials, programs and hours of services;
and
WHEREAS, despite significant cost saving measures the City Council has employed in
recent years to address the ongoing budget crisis, including the consolidation of job duties,
significant reductions in staffing levels, sales of assets and deferment of equipment purchases,
1
I:%Ordinances\Nos 2900-2999 in Word12913 Sales Tax Ordinance 6.16.20.doc
and the creation of assessment districts, current revenue forecasts indicate that the City's General
Fund will struggle to maintain basic service levels in future fiscal years; and
WHEREAS, in order to address these issues as soon as possible, the City Council desires
to enact a one-cent transactions and use tax ordinance (the "Measure"), with approval of the
voters at the statewide general election on November 3, 2020; and
WHEREAS, if enacted, this Measure would provide a locally-controlled revenue source,
enacted solely to raise revenue for any and all municipal purposes including addressing
homelessness, maintaining vital police and fire services, maintaining library services, keeping
public areas, parks and recreation facilities well-maintained and free of graffiti and help maintain
public buildings, and infrastructure including sidewalks, curbs and stone drains; and
WHEREAS, the Measure will give the City Council local control over funds for local
needs and no funds from this measure can be taken away by the State;
THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS
FOLLOWS:
Section 1. The recitals set forth above are true and correct, and are hereby incorporated
into this Ordinance in their entirety.
Section 2. A new Chapter 3.18 relating to the City of Redlands' enactment of a
Transactions and Use Tax is hereby added to Title 3 ("Revenue and Finance") of the Redlands
Municipal Code to read as follows:
"Chapter 3.18
City of Redlands' Transactions and Use Tax
3.18.010 Title
3.18.020 Operative Date
3.18.030 Purpose
3.18.040 Contract with State
3.18.050 Imposition of Transactions and Use Tax -- Transaction Tax Rate
3.18.060 Place of Sale
3.18.070 Imposition of Use Tax -- Use Tax Rate
3.18.080 Adoption of Provisions of State Law
3.18.090 Limitations on Adoption of State Law and Collection of Use Taxes
3.18.100 Permit Not Required
3.18.110 Exemptions and Exclusions
3.18.120 Adoption of Amendments to State Law
3.18.130 Enjoining Collection Forbidden
3.18.140 Independent Annual Audit
3.18.150 Citizens' Advisory Committee
3.18.160 Severability
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3.18.010. TITLE. This Chapter shall be known as the "City of Redlands' Transactions and Use
Tax" Ordinance. The City of Redlands hereinafter shall be called the "City." This Chapter shall
be applicable in the incorporated territory of the City.
3.18.020. OPERATIVE DATE. "Operative Date" means the first day of the first calendar
quarter commencing more than 110 days after the adoption of the ordinance enacting this
Chapter.
3.18.030. PURPOSE. This Chapter is enacted 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 which authorizes the City to enact the tax ordinance
establishing 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 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 Transaction and Use Tax that imposes a tax and provides a
measure therefore that can be administered and collected by the California Department of Tax
and Fee Administration 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 California Department of Tax and Fee Administration in administering and collecting the
California State Sales and Use Taxes.
D. To adopt a retail Transaction and Use Tax 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.
3.18.040. CONTRACT WITH STATE. Prior to the Operative Date, the City shall contract with
the California Department of Tax and Fee Administration to perform all functions incident to the
administration and operation of this Transactions and Use Tax; provided, that if the City shall not
have contracted with the California Department of Tax and Fee Administration prior to the
Operative Date, the City 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.
3.18.050. IMPOSITION OF TRANSACTIONS AND USE TAX -- TRANSACTION TAX
RATE. 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 percent (1.0%) of the
gross receipts of any retailer from the sale of all tangible personal property sold at retail in said
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territory on and after the Operative Date of the ordinance enacting this Chapter. Such tax shall
be in addition to any other transactions tax imposed by this Code or applicable State law.
3.18.060. PLACE OF SALE. 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 to 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 tax 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 consununated
shall be determined under rules and regulations to be prescribed and adopted by the California
Board of Tax and Fee Administration.
3.18.070. IMPOSITION OF USE TAX -- USE TAX RATE. 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 said territory at the rate of one percent (1.0%) 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 ],Wade.
3.18.080. ADOPTION OF PROVISIONS OF STATE LAW. 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 I (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.
3.18.090. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE
TAXES. In adopting the provisions of Part I 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:
1. When the word "State" is used as a part of the title of the State Controller,
State Treasurer, State Treasury, California Department of Tax and Fee Administration, or the
Constitution of the State of California;
2. When 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
California Department of Tax and Fee Administration, in performing the functions incident to
the administration or operation of this Chapter.
3. In those sections, including, but not necessarily limited to section 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
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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 provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715,
6737, 6797 or 6798 of the Revenue and Taxation Code.
B. The word "City" shall be substituted for the "State" in the phrase "retailer
engaged in business in this State" in Section 6203 and in the definition of that phrase in Section
6203.
3.18.100. 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 Chapter.
3.18.110. EXEMPTIONS AND EXCLUSIONS.
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 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 taxes 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
govermnents.
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 subsection, 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, his or her principal place of
residence; and
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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 Iessor 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 subparagraphs 3 and 4 of this subsection B, 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 goverrnnent. This exemption is in addition to the exemption 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 subparagraphs 3 and 4 of this subsection C, 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.
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6. Except as provided in subparagraph 7 of this subsection C, 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 snaking 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 Taxes 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.
3.18.120. ADOPTION OF AMENDMENTS TO STATE LAW.
A. All amendments, subsequent to the Operative 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 unless any increase in the rate of
this tax is first approved by the voters of the City voting on such question.
B. Pursuant to California Elections Code Section 9217, or any successor statute, the
City Council of the City may amend or repeal this Chapter, but not increase or extend the rate of
tax unposed herein, or any 'indebtedness authorized hereunder, without the approval of the voters
of the City voting on such question.
3.18.130. 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 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.
3.18.140. INDEPENDENT ANNUAL AUDIT. The proceeds of the Transactions and Use Tax
levied and imposed pursuant to this Chapter shall be deposited into the City's General Fund for
use by the City, and become subject to the same independent annual audit requirements as other
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General Fund revenue. The independent auditor's report, which shall include an accounting of
the revenues received and expenditures made from the Transactions and Use Tax, will be
presented annually to the City Council and made available for public review.
3.18.150. CITIZENS' FINANCIAL ADVISORY COMMITTEE. A Citizens' Advisory
Committee (the "Committee") shall be established by the City Council for the purpose of
providing independent advisory review of revenues generated by the Transactions and Use Tax.
The Coininittee shall meet at least once each calendar year, and all meetings shall be subject to
the provisions of the Ralph M. Brown Act (Government Code Section 54950 et seq.)
3.18.160. SEVERABILITY. If any provision of this Chapter or the application thereof to any
person or circumstance is held invalid, the remainder of this Chapter and the application of such
provision to other persons or circumstances shall not be affected thereby."
Section 3. This ordinance relates to the levying and collecting of the city of
Redlands' Transactions and Use Tax and shall take effect immediately upon its adoption.
Section 4. Upon approval by the voters, the City Clerk shall again certify the passage
of this ordinance; publish the same as required by applicable law, and forward a copy of the
adopted ordinance to the California Department of Tax and Fee Administration.
Section 5. The City Clerk shall, immediately following the final passage of this
ordinance, cause the summary below to be published at least once in a newspaper of general
circulation, published and circulated in the City of Redlands:
Contingent upon majority voter approval, this Ordinance adopts a one percent (1.0%)
Transactions and Use Tax on the sale or consumption of tangible personal property
within the City of Redlands, subject to annual audit and a Citizens' Financial Oversight
Committee review. The proceeds of the Transactions and Use Tax will be deposited in to
the General Fund of the City.
Section 6. The Transaction and Use Tax proposed to be imposed by this Ordinance was
duly approved by the following vote of the voters of the City of Redlands on November 3, 2020.
(insert vote)
Paul W. Foster, Mayor
ATTEST:
Jeanne Donaldson, City Clerk
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1:\OrdinancesWos 2900-2999 in Word\2913 Sales Tax Ordinance 6.1620.doe
Jeanne Donaldson, City Clerk
1, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing
ordinance was introduced at a regular meeting of the City Council of the City of Redlands on the
day of , 2020, and was duly adopted by the City Council at an adjourned
regular meeting thereof held on the day of , 2020.
AYES:
NOES:
ABSENT:
ABSTAINED:
Jeanne Donaldson, City Clerk
9
IAOrdinances\Nos 2900-2999 in W ord12913 Sales Tax Ordinance 6.[6.20.doc