HomeMy Public PortalAbout16) 8A Adopt Ord 12-9522 . Due to the passage of ABx1 26 and the result in CRA v. Matosantos, the
Agency was dissolved on February 1, 2012 and no longer in a position to
collect sales tax. In addition, the sales tax previously collected by the Agency
has not been pledged for the repayment of any indebtedness of the Agency,
bonded or otherwise. Rather, the Agency has regularly paid the sales tax to
the City pursuant to a reimbursement agreement but has reta ined the right to
collect and use the sales and use tax in case a project or program of the
Agency needed additional fund ing.
3 . With the dissolution of the Agency absent any urgency legislation or litigation
that would stay the effectiveness of ABx1 26, City staff has concluded that the
City would be best served by elim inating any ambiguity in its Municipal Code
that might keep the full amount of the sales and use tax from flow ing to the City.
CONCLUSION:
It is recommended the City Council consider second reading and adoption of an
ordinance to repeal in full Section 5308 of the City's Municipal Code . This section
currently grants a credit against the sales and use tax due the City for payment of a sales
and use tax established by and paid to the Agency. With the dissolution of the Agency
on February 1, 2012, it will no longer collect any sales tax and so the credit is no longer
necessary.
FISCAL IMPACT:
The Agency currently collects and forwards to the City approximately $500,000
per year in sales and use tax. The C ity's credit, as established in Section 5308
of the Municipal Code, allows for this collection and a longstanding agreement
between the Agency and City allows for the reimbursement to the City of all
amounts of sales and use tax not needed by the Agency_ Adoption of th is ordinance
repealing Section 5308 would not result in any gain or loss to the City but would
ensure that the City continues to receive the full amount of sales and use tax that it
is allowed to collect under the Code .
ATTACHMENT:
A. Ordinance No. 12-952
ORDINANCE NO. 12-952
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TEMPLE CITY REPEALING SECTION 5308 FROM THE
TEMPLE CITY MUNICIPAL CODE RELATING TO THE
UNIFORM LOCAL SALES AND USE TAX ORDINANCE TO
TERMINATE THE EXISTING CREDIT FOR PAYMENT OF
SALES AND USE TAXES PAID TO THE TEMPLE CITY
COMMUNITY REDEVELOPMENT AGENCY
WHEREAS, the City Council of the City of Temple City (the "City ") has heretofore
adopted its Ordinance No . 60-2 adding the Uniform Local Sales and Use Tax Ordinance
to the Temple City Municipal Code, constituting Part 1 of Chapter 3 of Article V of said
Code (the "City Ordinance "), pursuant to the Bradley-Burns Uniform Local Sales and
Use Tax Law of the State of California, constituting Part 1.5 of Division 2 of the
Revenue and Taxation Code of the State of California (the "Code "); and
WHEREAS, the Temple City Community Redevelopment Agency (the "Agency")
was authorized pursuant to former Section 7202 .6 of the Code to adopt a sales and use
tax ordinance in accordance if the City Ordinance contains the provision described in
forme r Section 7202.5 of the Code providing a c redit under the City Ord inance for the
amount of sales and use taxes due to the Agency ; and
WHEREAS, the City Council on November 23, 1993 to amended the City
Ordinance to provide for the credit for the amount of sales and use taxes due to the
Agency ; and
WHEREAS, the City Council no longer w ishes to provide the credit for the
amount of sales and use taxes due to the Agency and requires that the full amount of
sales and use taxes be rece ived by the City for core governmental services ; and
WHEREAS, by operation of law, the City's repeal of the credit for the amount of
sales and use taxes being received by the Agency pursuant to former Section 7202 .6
will repeal the Agency 's ability to receive from the State of California any sales and use
tax called for under its sales and use tax and former Section 7202 .6 .
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Article V, Chapter 3, Part 1 of the Temple City Municipal Code is
hereby amended by repealing Section 5308 in its entirety.
SECTION 2. This ordinance shall take effect thirty days following its passage
and adoption .
SECTION 3. The City Clerk shall certify to the passage and adop tion of this
ordinance and to its approval by the Mayor, and shall cause the same to be published in
a newspaper of general circulation as required by Section 36933 of the Government
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Code of the State of California, and shall cause the same to be transmitted to all State
of California and County of Los Angeles taxing and financial entities with responsib ility
for collecting and/or remitting sales and use tax within and/or to the City of Temple City .
PASSED, APPROVED AND ADOPTED this ih day of February , 2012.
Mayor
ATTEST
City Clerk
I, City Clerk of the City of Temple City , do hereby certify that the foregoing
Ordinance No. 12-952 was introduced at the regular meeting of the City Council of the
City of Temple City held on the 1ih day of January, 2012, and was duly passed,
approved and adopted by said Council at the regular meeting held on the i h day of
February , 2012, by the following vote :
AYES :
NOES :
ABSENT:
ABSTAIN :
City Clerk
Councilmember-
Councilmember-
Councilmember-
Cou ncilmember-
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