HomeMy Public PortalAbout2016.165 (07-19-16)RESOLUTION NO. 2016.165
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LYNWOOD, CALIFORNIA, APPROVING THE FORM OF THE
ORDINANCE TO BE SUBMITTED TO THE VOTERS, REGARDING
THE CONSOLIDATION OF A SPECIAL MUNICIPAL ELECTION
TO BE HELD ON NOVEMBER 8, 2016, WITH THE STATEWIDE
GENERAL PRESIDENTIAL ELECTION TO BE HELD ON THAT
DATE PURSUANT TO § 10403 OF THE ELECTIONS CODE
WHEREAS, the City Council of the City of Lynwood called a Special Municipal
Election to be held on November 8, 2016, for the purpose of submitting to the voters the
question relating to the establishment of a transactions and use tax and `rainy day fund"
measures; and
WHEREAS, the tax, if approved, would be imposed on the sale of tangible
personal property and the storage, use, or other consumption of such property. The tax
rate would be one percent (1.0 %) (i.e. one cent for each dollar) of the sales price of
tangible personal property. The tax revenue would be collected by the State Board of
Equalization and remitted to the City. The tax is approved if the measure receives at
least a simple majority of affirmative votes of qualified City voters. The tax will expire
after ten years unless extended by a vote of the people.
WHEREAS, the Council deems it necessary and advisable to submit the
proposed Ordinances to the qualified voters of the City to be approved by a majority of
the votes cast; and
WHEREAS, a form of the proposed ballot measures and ordinances (the
"Ordinances ") are attached hereto and incorporated herein, which are measures
regarding a general transactions and use (sales) tax before the voters at the November
8, 2016 general election;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD
DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. That pursuant to the requirements of § 10403 of the Elections
Code, the Board of Supervisors of the County of Los Angeles is hereby requested to
consent and agree to the consolidation of a Special Municipal Election with the
Statewide General Presidential election on Tuesday, November 8, 2016, and the form
of the Ordinances are attached, respectively, as exhibits "A" and "B," and are approved
for submittal as such.
Section 2. That this Resolution shall take effect immediately upon its
adoption.
Section 3. That the City Clerk shall certify to the passage and adoption of this
City Council Resolution and enter it into the books of original resolutions.
PASSED, APPROVED AND ADOPTED this 19TH DAY OF JULY, 2016.
i
Edwin Hernande ,
Mayor
ATTEST:
Maria Quinonez,
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Lu�k)�
David A. Garcia, J. Arnoldo Beltran,
City Attorney City Manager
[THIS SPACE INTENTIONALLY LEFT BLANK]
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify
that the foregoing Resolution was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the 19th day of July, 2016, and passed by the
following vote:
AYES: COUNCIL MEMBERS ALATORRE, SANTILLAN -BEAS, SOLACHE,
CASTRO AND MAYOR HERNANDEZ'
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
aria Quinon(iz, City Clerk
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of
the City Council of said City, do hereby certify that the above foregoing is a full, true and
correct copy of Resolution No. 2016.165 on file in my office and that said Resolution
was adopted on the date and by the vote therein stated. Dated this 19th day of July,
2016.
Maria Quinonez, ity Clerk
EXHIBIT "A"
PROPOSED ORDINANCE NO. 2016 -
ORDINANCE OF THE PEOPLE OF THE CITY OF LYNWOOD,
CALIFORNIA, ENACTING A TRANSACTIONS AND USE TAX TO BE
ADMINISTERED BY THE
STATE BOARD OF EQUALIZATION
BE IT ORDAINED BY THE PEOPLE OF THE CITY OF LYNWOOD AS
FOLLOWS:
SECTION 1. AMENDMENT OF CODE
Chapter 6 of the City of Lynwood Municipal Code is hereby amended to
add a new section 6 -2.9 and shall read as follows:
CHAPTER 6 -2.9
TRANSACTIONS AND USE TAX
a. Title. ,
This ordinance shall be known as the City of Lynwood Transactions and Use Tax
Ordinance. The City of Lynwood hereinafter shall be called "City." This ordinance
shall be applicable in the incorporated territory of the City.
b. 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.
c. 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:
1. 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
California Revenue,and Taxation Code and Section 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.
2. 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.
3. 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
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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.
4. To adopt a retail transactions and use tax ordinance that can be
administered in a manner that will be, to the greatest degree possible, consistent
with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code,
minimize the cost of collecting the transactions and use taxes, and at the same
time, minimize the burden of record keeping upon persons subject to taxation
under the provisions of this ordinance.
d. Contractwith 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.
e. 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
1.0% 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. The rate shall remain atone percent (1.0 %) for the term of the tax.
f. 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
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.
g. 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 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 made. The rate shall remain at
one percent (1.0 %) for the term of the tax.
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h. 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.
i. 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:
1. Wherever the State of California is named or referred to as the taxing
agency, the name of this City shall be substituted therefore. However,
the substitution shall not be made when:
(a) The word "State" is used as a part of the title of the State
Controller, State Treasurer, State Board of Equalization, State
Treasury, or the Constitution of the State of California;
(b) 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.
(c) 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:
(1) 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;
(2) 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.
(d) In Sections 6701, 6702 (except in the last sentence thereof),
6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
2. 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.
j. 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.
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k. Exemptions and Exclusions.
1. 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.
2. There are exempted from the computation of the amount of
transactions tax the gross receipts from:
(a) 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.
(b) 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 paragraph, delivery to a point
outside the City shall be satisfied:
(1) 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
(2) 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.
(c) 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.
(d) A lease of tangible personal property which is a continuing sale
of such property, for any period of time for which the leaser is obligated to lease
the property for an amount fixed by the lease prior to the operative date of this
ordinance.
(e) For the purposes of subparagraphs (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.
3. There are exempted from the use tax imposed by this ordinance, the
storage, use or other consumption in this City of tangible personal property.
(a) The gross receipts from the sale of which have been
subject to a transactions tax under any state - administered transactions
and use tax ordinance.
(b) Other than fuel or petroleum products purchased by operators
of aircraft and used or consumed by such operators directly and exclusively in
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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.
(c) 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.
(d) 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 ordinance.
(e) For the purposes of subparagraphs (3) and (4) of this section,
storage, use, or other consumption, or possession of, or exercise of any right or
power over, tangible personal property shall be deemed not to be obligated
pursuant to a contract or lease for any period of time for which any party to the
contract or lease has the unconditional right to terminate the contract or lease
upon notice, whether or not such right is exercised.
(f) Except as provided in subparagraph (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.
(g) "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.
4. 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.
I. 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
s
affect the rate of tax imposed by this ordinance.
m. 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.
n. Citizens Oversight Committee.
There shall be a five - person committee of members of the public to review and
report on the revenue and expenditure of funds from the tax adopted by this
Chapter. Prior to the operative date, the City Council shall adopt a resolution
establishing the composition of the committee and defining the scope of its
responsibilities. Also prior to the operative date, the City Council shall appoint at
least a quorum of the members of the committee; the City Council shall complete
the appointment of members of the committee by the end of fiscal year 2016.
o. Superseding Ordinance.
Notwithstanding any other provision of the Lynwood Municipal Code, this Ordinance
enacting a 1.0% Transaction (Sales) and Use tax shall supersede any other conflicting
Code provisions and shall be the only City imposed Transaction and Use tax.
p. Expiration of Tax.
The authority to levy the tax imposed by this Ordinance shall be for a term of ten
(10) years. The tax imposed by this Ordinance shall automatically be terminated,
without further action by the City Council, or the electors of the city, ten (10) years after
the Operative Date. After the termination date, the tax imposed by this chapter can
only be continued or reestablished by a majority vote of City votes pursuant to
California Proposition 218.
SECTION 2. 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 calling for
an election on this Ordinance. The CEQA findings in that Resolution are
incorporated herein by reference.
SECTION 3. SEVERABILITY.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of
this Ordinance, or its application to any person or circumstance, is for any reason
held to be invalid or unenforceable, such invalidity or unenforceability shall not
affect the validity or enforceability of the remaining sections, subsections,
subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its
.application to any other person or circumstance. The City Council of the City of
Lynwood hereby declares that it would have adopted each section, subsection,
subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact
that any one or more other sections, subsections, subdivisions, paragraphs,
sentences, clauses or phrases hereof is declared invalid or unenforceable.
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SECTION 4. EFFECTIVE DATE.
This ordinance relates to the levying and collecting of a City transactions and use
tax and shall take effect immediately.
INTRODUCED on this 19th day of July, 2016, and passed to print and
approved by the following called vote:
Members of the Council:
AYES: COUNCIL MEMBERS: ALATORRE, SANTILLAN -BEAS, SOLACHE,
CASTRO AND MAYOR HERNANDEZ
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
APPROVED by the following vote of the People of the City of
Lynwood on November 8,2016:
YES:
NO:
ADOPTED by Declaration of the vote at the November 8, 2016 election.
AYES:
NOES:
ABSENT:
ABSTAIN:
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EXHIBIT "B"
PROPOSED ORDINANCE NO. 2016 -
ORDINANCE OF THE PEOPLE OF THE CITY OF LYNWOOD,
CALIFORNIA, ENACTING A BUDGET
STABILIZATION ( "RAINY DAY ") FUND
BE IT ORDAINED BY THE PEOPLE OF THE CITY OF LYNWOOD AS
FOLLOWS:
SECTION 1. AMENDMENT OF CODE
Chapter 6 of the City of Lynwood Municipal Code is hereby amended to
add a new section 6 -2.10 and shall read as follows:
CHAPTER 6 -2.10
a. Title.
This ordinance shall be known as the City of Lynwood "Budget Stabilization Fund"
Ordinance, which shall be either a subfund within the City's General Fund or in a
separate fund (the "Budget Stabilization Fund "). The City of Lynwood hereinafter
shall be called "City." This ordinance shall be applicable in the incorporated
territory of the City.
b. Operative Date.
"Operative Date" means the first day of the first calendar quarter commencing
more than 110 days after the adoption of the 2016 Transactions and Use Tax
ordinance.
c. Purpose.
The Budget Stabilization Fund shall be used to fund general City operations and
activities that would otherwise be reduced in scope due to shortfalls in General Fund
structural revenues. For purposes of this Subsection, the phrase "General Fund"
revenues means on -going revenues which are available to fund on -going General
Fund operations.
d. Transfers into and from the Budget Stabilization Fund.
1. Automatic Deposit of New General Tax Revenues into the Budget
Stabilization Fund. The Budget Stabilization Fund shall be funded by an automatic
deposit/transfer of one percent (10 %) of general tax revenues generated each year by
the 2016 Transactions and Use Tax ordinance, commencing with Fiscal Year 2017.
For purposes of this subsection, the phrase "new general tax revenues" means all
revenues generated from the revenues from the Transactions and Use Tax which was
submitted to the voters concurrently with this ordinance.
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2. Discretionary Deposits into Budget Stabilization Fund not
Prohibited.
Nothing in this Chapter shall prohibit the City Council, as part of the
budgeting process, from contributing additional revenues to the Budget
Stabilization Fund, as determined in the City Council's sound legislative
discretion.
3. Expenditures from the Budget Stabilization Fund. The City Council
may expend funds available from the Budget Stabilization Fund in any single fiscal
year if the City Council declares a fiscal hardship by a 4/5 vote, requiring the use of
such resources to maintain current levels of City services and programs. For purposes
of this section, a "fiscal hardship" may be deemed to occur whenever the City
Manager, in the proposed budget for a fiscal year, projects a level of General Fund
structural revenues that will result in a two percent (2 %) or greater reduction in funding
for general City services, as compared to the base budget that would be needed to
maintain existing services. For purposes of this subsection, the phrase "base budget"
means the projected on -going costs needed to maintain the same level of General
Fund operations as the prior fiscal year's budget.
4. Maximum balance for Budget Stabilization Fund. At no time shall the
balance of the Budget Stabilization Fund exceed five percent (10 %) of the City's
General Fund structural revenues forecast in the adopted budget for the subsequent
fiscal year. Automatic transfers of revenues into the Budget Stabilization Fund as
required by Subsection 1 shall be made only to the extent that the Fund balance does
not exceed the ten percent (10 %) threshold, as calculated above, and any automatic
transfer that would result in such an excess balance shall be suspended.
SECTION 2. APPROVAL OF VOTERS
Transactions and Use Tax Measure Contingency. Pursuant to California Elections Code
Section 9217, this ordinance shall be deemed adopted and take effect only if approved
by a majority of the eligible voters of the City of City voting at the Election of November
8, 2016. Notwithstanding the above, this ordinance shall only become effective if the
City's Transactions and Use Tax Measure, which is on the ballot for the same Election,
is also approved by the eligible voters of the City.
SECTION 3. 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. The City
Council of the City of Lynwood hereby declares that it would have adopted each
section, subsection, subdivision, paragraph, sentence, clause or phrase hereof,
irrespective of the fact that any one or more other sections, subsections, subdivisions,
paragraphs, sentences, clauses or phrases hereof is declared invalid or
unenforceable.
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SECTION 4. ENVIRONMENTAL COMPLIANCE
The findings for this ordinance in compliance with the Callomia Environmental Quality
Act ( "CEQA") are the same as those set forth in the City's Resolution calling for
an election on this Ordinance. The CEQA findings in that Resolution are
incorporated herein by reference.
INTRODUCED on this 19`" day of July, 2016, and passed to print and
approved by the following called vote:
Members of the Council:
AYES: COUNCIL MEMBERS: ALATORRE, SANTILLAN -BEAS, SOLACHE,
CASTRO AND MAYOR HERNANDEZ
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
APPROVED by the following vote of the People of the City of
Lynwood on November 8,2016:
YES:
NO:
ADOPTED by Declaration of the vote at the. November 8, 2016 election.
AYES:
NONE
NOES:
NONE
ABSENT:
NONE
ABSTAIN:
NONE
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