CITY OF NOVATO
MEASURE C
MEASURE C: To continue funding, that cannot be taken by the State, for general city services including, but not limited to, protecting neighborhood police patrols, 9-1-1 emergency response, crime prevention/gang intervention services; fixing potholes, streets, parks; attracting/retaining qualified police officers; supporting the local economy/increasing jobs; and providing youth, senior, recreation programs, shall the City of Novato extend the existing voter approved sales tax, reducing the rate from ½ cent to ¼ cent, requiring oversight and audits?
YES NO
CITY ATTORNEY’S IMPARTIAL ANALYSIS OF MEASURE C
PROPOSED ORDINANCE CONTINUING A LOCAL
TRANSACTION AND USE TAX BUT REDUCING THE TAX RATE FROM ONE-HALF
OF ONE PERCENT
(0.5% - the same as 1/2 cent) TO ONE-QUARTER OF ONE PERCENT (0.25% - the same as 1/4 cent)
In November 2010, the voters of the City of Novato adopted a local transaction and use tax (sales tax) (called “Measure F”) for the purpose of increasing revenues to assist the City in maintaining the financial viability of the City and maintaining staffing and service levels within the City. The sales tax rate established by the passage of Measure F was one half of one percent (0.5%). Measure F will expire on March 31, 2016.
The Novato City Council has placed Measure C on the ballot to become effective upon the expiration of Measure F. However, the amount of the tax established by Measure C is reduced to one quarter of one percent (0.25%).
If adopted by a majority of the voters, this initiative measure (an ordinance) will impose a sales tax for the purpose of generating revenues to assist the City in maintaining the financial viability of the City and maintaining staffing and service levels within the City.
The funds derived from the sales tax will be placed in the General Fund and may be used for any general city purpose, including but not limited to maintaining 911 emergency response times and neighborhood police patrols, maintaining streets and roads, supporting senior and youth services, and maintaining city parks.
The tax is to be imposed on retailers for the selling of tangible personal property at retail and on the storage, use or other consumption in the City of tangible personal property purchased from any retailer. The proposed ordinance includes certain exemptions and exclusions from the computation of the amount of the transactions and use tax on certain transactions, including those exemptions already applicable under State law.
The ordinance requires the City Council to appoint an independent oversight committee consisting of members of the public to review and report on the receipt of revenue and expenditure of funds from the tax. The committee’s report and recommendations must be a matter of public record.
The ordinance requires that twenty years after its operative date, and every five years thereafter, the City Council shall review the sales tax and may repeal the tax by a 4/5ths vote of the Council.
Since the ordinance does not limit the City’s use of the revenue from the tax, it is a general tax. State law authorizes the City to implement this ordinance upon its approval by a simple majority of voters who vote on the measure.
s/JEFFREY A. WALTER
Novato City Attorney
The above statement is an impartial analysis of the proposed ordinance. If you desire a copy of the ordinance, please call the elections official’s office at 415 899 8986 and a copy will be mailed at no cost to you.
ARGUMENT IN FAVOR OF MEASURE C
Do you want to maintain our quality of life and lower your taxes? Vote YES on C!
Voting YES on C simply continues funding previously adopted by Novato voters at a reduced tax rate to maintain our essential public safety, streets, parks and youth/senior service needs.
YES on C lowers local sales tax rates while continuing critical locally-controlled funding that cannot be taken by the State. By law, every dime must be spent locally for local needs and can’t be taken by Sacramento politicians who have already taken $15 million from Novato! We must maintain local control of local funds for local needs!
Vote YES on C to fix our aging streets, roads and potholes at the levels Novato residents expect and deserve.
Vote YES on C to maintain public safety – including 9-1-1 emergency response, neighborhood police patrols, and crime prevention programs that keep Novato safe.
YES on C REDUCES the local taxes you already pay
YES on C maintains city streets, roads and parks
YES on C fixes potholes
YES on C maintains neighborhood police patrols
YES on C attracts, trains and retains qualified police officers
YES on C continues tough Fiscal Accountability safeguards, including continued Independent Citizens’ Oversight, mandatory annual independent financial audits and yearly reports to the community to monitor spending – guaranteeing funds are spent responsibly. Measure C is not applied to food purchased as groceries or prescription medications and out-of-towners also share the cost.
Hundreds of Novato residents have said they are highly satisfied with Novato’s qualify of life – but we must be vigilant and keep it that way! Join a unanimous Mayor and City Council, police officers, local business owners, and community leaders from neighborhoods throughout Novato in voting YES on C.
For factual information about Measure C, visit novato.org.
s/AL MENDOZA
Retired Police Officer, Public Safety Advocate,
and 50+ Year Resident
s/CRISTINA MacKENZIE
Measure F Oversight/Citizens Finance
Committee Member
s/ANDY PODSHADLEY
Small Business Owner and Youth Advocate
s/BETH LIVOTI
Commissioner on Aging and Senior Advocate
s/ELAYNE MILLER
40+ Year Resident and Taxpayer
NO ARGUMENT AGAINST MEASURE C WAS FILED.
FULL TEXT OF MEASURE C
CITY COUNCIL OF THE CITY OF NOVATO
RESOLUTION NO. 40-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NOVATO APPROVING THE ORDINANCE AND CALLING FOR, GIVING NOTICE OF, AND ESTABLISHING THE POLICIES AND PROCEDURES FOR AN ELECTION ON A PROPOSED BALLOT MEASURE TO CONTINUE THE EXISTING VOTER APPROVED FUNDING AND REDUCE THE RATE CURRENTLY PAID TO ONE QUARTER OF ONE PERCENT (0.25%) TRANSACTIONS AND USE (SALES) TAX TO FUND GENERAL CITY SERVICES; AND REQUESTING THAT THE COUNTY OF MARIN CONSOLIDATE SUCH AN ELECTION WITH THE ESTABLISHED ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2015, AND DIRECTING THE COUNTY OF MARIN TO CONDUCT THE ELECTION ON THE CITY’S BEHALF
WHEREAS, in November 2010, the voters of Novato adopted a local revenue measure (“Measure F”) to mitigate cuts to local city services including public safety, street and park maintenance, and youth and senior services caused by the Great Recession and State takeaways; and
WHEREAS, Measure F established a general transactions and use tax (“sales tax”) of one-half of one percent (0.50%) (as authorized by Revenue and Taxation Code Section 7285.9), which is enacted as Novato City Council Ordinance No. 1551; and
WHEREAS, Measure F revenues have been instrumental in preventing budget cuts to vital services; bringing back programs that were cut during the recession; re-establishing programs that had all of their funding taken by the State; and investing in Novato’s public safety, streets, parks, infrastructure, and youth programs; and
WHEREAS, the State has taken $15 million from Novato; and
WHEREAS, although the revenues raised by Measure F have helped the City maintain essential services and prevent budget cuts, Measure F is scheduled to expire on March 31, 2016; and
WHEREAS, the City’s 5-year General Fund forecast estimates that if Measure F expires, the City will have multi-million dollar budget deficits for every year into the foreseeable future, which would require reductions in City services adversely affecting 9-1-1 response times, police officer training and recruitment, youth crime intervention programs, local job creation programs, and parks, street, and pothole maintenance services; and
WHEREAS, on February 11, 2014, the City Council adopted its Fiscal Sustainability Plan for Novato, which outlined the broad vision for a long-term fiscally and organizationally sustainable Novato, including the need for an ongoing, locally-controlled revenue source to maintain essential programs and services desired by the community; and
WHEREAS, the City Manager’s transmittal memo for the 2015/16 Adopted Budget re-emphasized the importance of the continuation of a voter-approved, locally-controlled revenue source and outlined some of the direct impacts to services that are important to the community if the revenue is not continued; and
WHEREAS, by law, all funds from a City of Novato Local Revenue Continuation and Reduction Measure must stay in Novato to maintain local services and no funds can be taken by the State; and
WHEREAS, the Continuation and Reduction Measure requires independent Citizens’ Oversight, mandatory financial audits, and yearly reports to the community to ensure all funds are spent responsibly on general City services consistent with community priorities; and
WHEREAS, if this Continuation and Reduction Measure is adopted, there is a decrease in the tax rate Novato residents currently pay; and
WHEREAS, if the Continuation and Reduction Measure is approved, the City wishes to maintain and address service priorities that the public has identified as being important to them, including 9-1-1 emergency response times; maintaining city streets, roads, and repairing potholes; attracting, training, and retaining qualified police officers and maintaining neighborhood police patrols; and maintaining parks; and
WHEREAS, continued locally-controlled funding will allow the City to address and maintain city streets, roads, and pothole repair; and
WHEREAS, continued locally-controlled funding will permit the City to maintain neighborhood police patrols and help attract, train, and recruit qualified police officers; and
WHEREAS, continued locally controlled funding will allow the City to maintain parks; and
WHEREAS, continued locally controlled funding will support the local economy and increase jobs; and
WHEREAS, continued locally controlled funding will assist the City in providing youth and senior recreation programs; and
WHEREAS, the Continuation and Reduction Measure to be submitted to the voters, if approved, would continue to be imposed on retail transactions involving the sale and use of personal property. The tax rate would be reduced to one quarter of one percent (0.25%) of the sales price of the property. The tax revenue would continue to be collected by the State Board of Equalization and remitted to the City. The tax would continue to remain in effect unless otherwise rescinded in a subsequent election by the voters or repealed as outlined in Section 16-6.15. The tax shall be approved if the measure receives at least a majority of affirmative votes; and
WHEREAS, the Novato City Council is authorized by California Elections Code Section 9222 to place the Continuation and Reduction Measure before the voters; and
WHEREAS, Elections Code Section 9282 sets forth the procedures for arguments in favor of or in opposition to any City measure; and
WHEREAS, Elections Code Section 9285 sets forth the procedures for rebuttal arguments; and
WHEREAS, on June 2, 2015, the Novato City Council adopted a resolution calling for the City’s General Municipal Election to be held on the same day as and consolidated with all other applicable elections to be held on November 3, 2015. It is desirable that the election called by this Resolution be consolidated with the City’s General Municipal Election and that, within the City, the precincts, polling places, and election officers of the two elections be the same, and that the Elections Department of the County of Marin canvass the returns of the General Election and that the election be held in all respects as if there were only one election; and
WHEREAS, based on all of the information presented at this meeting to consider the “City of Novato Local Revenue Continuation and Reduction Measure”, both written and oral, including the staff reports and other relevant materials, the City Council finds that under CEQA Guidelines 15060(c)(2) & (3) and 15378(b)(2) & (4), this resolution is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000 et seq, “CEQA”, and 14 Cal. Code Reg. Sections 15000 et seq, “CEQA Guidelines”). The transactions and use tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular government action. As such, under CEQA Guidelines Section 15060(c)(2) the submission of the sales tax measure to the voters will not result in a direct or reasonably foreseeable indirect physical change in the environment. The proceeds of the tax are anticipated to assist the City with retaining existing governmental functions and services to the public. Therefore, pursuant to CEQA Guidelines Section 15378(b)(2), the sales tax measure is not a project pursuant to CEQA. In addition, pursuant to CEQA Guidelines Section 15060(c)(3) and 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the City would undertake the required CEQA review for that particular project.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Novato as follows:
1. The foregoing recitals are true and correct and are hereby adopted by the City Council; and
2. Pursuant to California Constitution Article XIIIC, Section 2; Government Code Section 53724; and Elections Code Section 9222, the City Council of the City of Novato hereby calls an election at which it shall submit to the qualified voters of the City, a measure that, if approved, would reduce and continue the existing general sales tax, as authorized by Revenue and Taxation Code Section 7285.9. This measure shall be designated by letter by the Marin County Elections Department. Pursuant to Election Code Section 10400 et seq, the election for this measure shall be consolidated with the established election to be held on November 3, 2015; and
3. The question to be presented to the voters shall be as follows:
To continue funding, that cannot be taken by the State, for general city services including, but not limited to, protecting neighborhood police pa-
patrols, 9-1-1 emergency response, crime prevention/gang intervention services; fixing potholes, streets, parks; attracting/retaining qualified police officers; supporting the local economy/increasing jobs; and providing youth, senior, recreation programs, shall the City of Novato extend the existing voter approved sales tax, reducing the rate from ½ cent to ¼ cent, requiring oversight and audits?
YES NO
The question requires the approval of a majority of qualified electors casting votes; and
4. The ordinance authorizing the general tax to be approved by the voters pursuant to Sections 2 and 3 of this resolution is as set forth in Exhibit A attached hereto. The City Council hereby approves the ordinance, the form thereof, and its submission to the voters of the City at the November 3, 2015 election, as required by Revenue and Taxation Code Section 7285.9. The Board of Supervisors of the County of Marin is requested to order the County Clerk to set forth in the voter information portion of all sample ballots to be mailed to the qualified electors of the City the full text of the Ordinance and to mail with the sample ballots to the electors printed copies of the full text of the Ordinance, together with the primary arguments and rebuttal arguments (if any) for and against the measure, and to provide absent voters ballots for the election for use by qualified electors of the City who are entitled thereto in the manner provided by law. The Ordinance specifies that the rate of the transactions tax shall be one quarter of one percent (0.25%) 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 quarter of one percent (0.25%) of the sales price of tangible personal property stored, used, or otherwise consumed in the City, and that the tax shall remain in effect unless repealed by the voters in the future or repealed as outlined in Section 16-6.15. The State Board of Equalization shall collect the tax from retailers subject to the tax and remit the funds to the City; and
5. The City Clerk is authorized, instructed and directed to work with the County Elections Department as needed in order to properly and lawfully conduct the election. The ballots to be used in the election shall be in form and content as required by law. The County Elections Department is authorized to canvass the returns of the general municipal election and certify the results to the City Council. Thereafter, in accordance with the time prescribed by the Elections Code, the City Council shall declare and cause to be entered in its minutes a statement of the results of the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections; and
6. The Board of Supervisors of the County of Marin is requested to instruct the County Elections Department to provide such services as may be necessary for the holding of the consolidated election. The election shall be held in all respects as if there were only one election. The City of Novato recognizes that the County will incur additional costs because of this consolidation and agrees to reimburse the County for those costs. The City Manager is hereby authorized and directed to expend the necessary funds to pay for the City’s cost of placing the measure on the election ballot; and
7. In accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code, the City Clerk is hereby authorized and directed to cause notice of the measure to be published once in the Novato Advance, a newspaper of general circulation, printed, published and circulated in the City of Novato and hereby designated for that purpose by the City Council of the City of Novato. The City Clerk may request that the County of Marin Elections Department prepare and publish the required notice; and
8. The polls for the election shall be open at 7:00 a.m. on the day of the election and shall remain open continuously from that time until 8:00 p.m. that same day, when the polls shall be closed, except as provided by Section 14401 of the California Elections Code. The notice of the time and place of holding the election is hereby given, and the City Clerk is authorized to give further notice of the election, as required by law.
a. The last day for submission of primary arguments for or against the measure shall be by 5:00 p.m. on August 17, 2015.
b. The last day for submission of rebuttal arguments for or against the measure shall be by 5:00 p.m. on August 24, 2015.
c. Primary arguments shall not exceed three hundred (300) words and shall be signed by not more than five persons.
d. Rebuttal arguments shall not exceed two hundred fifty (250) words and shall be signed by not more than five persons; those persons may be different persons than the persons who signed the primary arguments.
e. Pursuant to Elections Code Section 9282 (b), the Mayor is hereby authorized to prepare a written argument and rebuttal in favor of the proposed ordinance on behalf of the City Council. At the Mayor’s discretion, the argument may also be signed by bona fide associations or by individual voters who are eligible to vote.
f. Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a certified copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed five hundred (500) words in length, showing the effect of the measure on the existing law and the operation of the measure, and transmit the impartial analysis to the Elections Department as required by law.
g. Pursuant to California Elections Code Section 9285, when the City Clerk has selected the arguments for and against the measure, which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut.
9. The City Clerk is directed to file certified copies of this Resolution with the Board of Supervisors and the County Clerk of the County of Marin, together with the attached ballot measure; and
10. The jurisdictional boundaries of the City of Novato have not changed since the last general municipal election; and
11. This resolution shall become effective immediately upon its passage and adoption.
* * * * * * * *
I HEREBY CERTIFY that the foregoing resolution was duly and regularly adopted by the City Council of the City of Novato, Marin County, California, at a meeting thereof, held on the 28th day of July, 2015, by the following vote, to wit:
AYES: Councilmembers Athas, Eklund, Kellner, Lucan, MacLeamy
NOES: Councilmembers None
ABSTAIN: Councilmembers None
ABSENT: Councilmembers None
s/SHERI HARTZ
City Clerk
Approved as to form:
s/VERONICA NEBB
City Attorney of the City of Novato
CITY COUNCIL OF THE CITY OF NOVATO
ORDINANCE NO. 1601
AN ORDINANCE OF THE VOTERS OF THE CITY OF NOVATO CONTINUING AND REDUCING AN EXISTING VOTER-APPROVED TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION
THE CITY COUNCIL OF THE CITY OF NOVATO DOES ORDAIN AS FOLLOWS:
SECTION 1: Findings: The voters of the City of Novato hereby find and declare as follows:
a. In November 2010, the voters of Novato adopted a local revenue measure (“Measure F”) to mitigate cuts to local city services including public safety, street and park maintenance, and youth and senior services caused by the Great Recession and State takeaways; and
b. Measure F established a general transactions and use tax (“sales tax”) of one-half of one percent (0.50%) (as authorized by Revenue and Taxation Code Section 7285.9, which is enacted as Novato City Council Ordinance No. 1551; and
c. Measure F revenues have been instrumental in preventing budget cuts to vital services; bringing back programs that were cut during the recession; re-establishing programs that had all of their funding taken by the State; and investing in Novato’s public safety, streets, parks, infrastructure, and youth programs; and
d. The State has taken $15 million from Novato; and
e. Although the revenues raised by Measure F have helped the City maintain essential services and prevent budget cuts, Measure F is scheduled to expire on March 31, 2016; and
f. The City’s 5-year General Fund forecast estimates that if Measure F expires, the City will have multi-million dollar budget deficits for every year into the foreseeable future, which would require reductions in City services adversely affecting 9-1-1 response times, police officer training & recruitment, youth crime intervention programs, local job creation programs, and parks, street, & pothole maintenance services; and
g. On February 11, 2014, the City Council adopted its Fiscal Sustainability Plan for Novato, which outlined the broad vision for a long-term fiscally and organizationally sustainable Novato, including the need for an ongoing, locally-controlled revenue source to maintain essential programs and services desired by the community; and
h. The City Manager’s transmittal memo for the 2015/16 Adopted Budget re-emphasized the importance of the continuation of a voter-approved, locally-controlled revenue source and outlined some of the direct impacts to services that are important to the community if the revenue is not continued; and
i. By law, all funds from a City of Novato Local Revenue Continuation and Reduction Measure must stay in Novato to maintain local services and no funds can be taken by the State; and
j. The Continuation and Reduction Measure requires independent citizens’ oversight, mandatory financial audits, and yearly reports to the community to ensure all funds are spent responsibly on general City services consistent with community priorities; and
k. If this Continuation and Reduction Measure is adopted, there is a decrease in the tax rate Novato residents currently pay; and
l. If the Continuation and Reduction Measure is approved, the City wishes to maintain and address service priorities that the public has identified as being important to them, including 9-1-1 emergency response times; maintaining city streets, roads, and repairing potholes; attracting, training, and retaining qualified police officers and maintaining neighborhood police patrols; and maintaining parks; and supporting the local economy and increasing jobs; and providing youth and senior recreation programs; and
m. Continued locally-controlled funding will allow the City to address and maintain city streets, roads, and pothole repair; and
n. Continued locally-controlled funding will permit the City to maintain neighborhood police patrols and help attract, train, and recruit qualified police officers; and
o. Continued locally controlled funding will allow the City to maintain parks; and
p. Continued locally controlled funding will support the local economy and increase jobs; and
q. Continued locally controlled funding will assist the City in providing youth and senior recreation programs; and
r. The Continuation and Reduction Measure to be submitted to the voters, if approved, would continue to be imposed on retail transactions involving the sale and use of personal property. The tax rate would be reduced to one quarter of one percent (0.25%) of the sales price of the property. The tax revenue would continue to be collected by the State Board of Equalization and remitted to the City. The tax would continue to remain in effect unless otherwise rescinded in a subsequent election by the voters or repealed as outlined in Section 16-6.15. The tax shall be approved if the measure receives at least a majority of affirmative votes; and
s. The Novato City Council is authorized by California Elections Code Section 9222 to place the Continuation and Reduction Measure before the voters; and
t. Elections Code Section 9282 sets forth the procedures for arguments in favor of or in opposition to any City measure; and
u. Elections Code Section 9285 sets forth the procedures for rebuttal arguments; and
v. On June 2, 2015, the Novato City Council adopted a resolution calling for the City’s General Municipal Election to be held on the same day as and consolidated with all other applicable elections to be held on November 3, 2015. It is desirable that the election called by this Resolution be consolidated with the City’s General Municipal Election and that, within the City, the precincts, polling places, and election officers of the two elections be the same, and that the Elections Department of the County of Marin canvass the returns of the General Election and that the election be held in all respects as if there were only one election; and
w. Based on all of the information presented to consider the Continuation and Reduction Measure, both written and oral, including the staff reports and other relevant materials, the City Council finds that under CEQA Guidelines 15060(c)(2) & (3) and 15378(b)(2) & (4), this resolution is exempt from the California Environmental Quality Act (Public Resources Code Sections 21000 et seq, “CEQA”, and 14 Cal. Code Reg. Sections 15000 et seq, “CEQA Guidelines”). The transactions and use tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular government action. As such, under CEQA Guidelines Section 15060(c)(2) the submission of the sales tax measure to the voters will not result in a direct or reasonably foreseeable indirect physical change in the environment. The proceeds of the tax are anticipated to assist the City with retaining existing governmental functions and services to the public. Therefore, pursuant to CEQA Guidelines Section 15378(b)(2), the sales tax measure is not a project pursuant to CEQA. In addition, pursuant to CEQA Guidelines Section 15060(c)(3) and 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the city would undertake the required CEQA review for that particular project.
SECTION 2: Amendment Of Code: “Section 16-6 Transactions and Use Tax” is hereby amended to read as follows:
Section 16-6.1 TITLE. This ordinance shall be known as the City of Novato Transactions and Use Tax Ordinance. The City of Novato hereinafter shall be called “City.” This ordinance shall be applicable in the incorporated territory of the City.
Section 16-6.2 OPERATIVE DATE. “Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.
Section 16-6.3 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 in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Sections 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance 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 therefore 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 recordkeeping upon persons subject to taxation under the provisions of this ordinance.
Section 16-6.4 CONTRACT WITH STATE. 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.
Section 16-6.5 TRANSACTIONS 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 0.25% 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 16-6.6 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/her agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations prescribed and adopted by the State Board of Equalization.
Section 16-6.7 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 ordinance for storage, use or other consumption in said territory at the rate of 0.25% 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.
Section 16-6.8 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 16-6.9 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 the 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 Board of Control, State Board of Equalization, State Treasury, 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 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 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 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 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.
Section 16-6.10 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 16-6.11 EXEMPTIONS AND EXCLUSIONS.
a. There shall be excluded from the measure of t he 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 tax the gross receipt 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/her 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 Chapter 1 (commencing with Section 4000) of Division 2 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
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 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 subparagraphs (3) and (4) of this section 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 ordinance, 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 ordinance.
4. If the possession 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 ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section 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.
6. Except as provided in subparagraph c.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 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 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 16-6.12 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 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 ordinance, provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
Section 16-6.13 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 City, or against any officer of the State or the City, 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 16-6.14 CITIZENS OVERSIGHT COMMITTEE. Prior to the Operative Date, the City Council shall (a) adopt a resolution establishing the composition of a committee of no more than seven residents of Novato to review and report on the revenue and expenditure of funds from the tax adopted by this ordinance, (b) define the scope of the committee’s responsibilities, and (c) appoint at least a quorum of the members of the committee. City employees, consultants, or vendors are expressly precluded from serving as members of the Citizens Oversight Committee. The Committee’s reports shall be made available to the Council and public.
Section 16-6.15: Review of the tax by the City Council shall take place twenty (20) years after the operative date of this ordinance and every five (5) years thereafter. At the time of said review periods, the City Council may repeal the tax imposed by this ordinance by a 4/5 (four-fifths) vote of the City Council.
SECTION 3: Environmental Compliance:
The findings for this ordinance in compliance with the California Environmental Quality Act (CEQA) are the same as those set forth in the City’s Resolution No. 40-15 calling for an election on this ordinance. The CEQA findings in Resolution No. 40-15 are incorporated herein by reference.
SECTION 4: Severability:
If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of the ordinance.
The City Council hereby declares that it would have passed this and each section, subsection, phrase or clause thereof irrespective of the fact that any one or more sections, subsections, phrases, or clauses be declared unconstitutional on their face or as applied.
SECTION 5: Publication and Effective Date:
This ordinance shall be published in accordance applicable provisions of law, by either:
publishing the entire ordinance once in the Novato Advance, a newspaper of general circulation, published in the City of Novato, within fifteen (15) days after its passage and adoption, or publishing the title or appropriate summary in the Novato Advance at least five (5) days prior to adoption, and a second time within fifteen (15) days after its passage and adoption, and
This ordinance shall take effect immediately after the date of its passage and adoption.
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This Ordinance relates to the levying and collecting of the City transactions and use taxes. The City Council, by a two-thirds vote of the Council by adopting Resolution No. 40-15, approved submission of this Ordinance to the voters at an election to be held on November 3, 2015. Upon approval by a majority of the voters of the City, and upon adoption of a resolution declaring the election results, the Mayor shall hereby be authorized to attest to the adoption of this Ordinance by the voters of the City by signing where indicated below.
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Mayor of the City of Novato
Ordinance No. 1601 was submitted to the People of the City of Novato at the November 3, 2015 general municipal election. It was approved by the following vote of the People:
YES:
NO:
Attest:
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City Clerk of the City of Novato
Approved as to form:
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City Attorney of the City of Novato