HomeMy WebLinkAboutOrd 1944ORDINANCE NO. 1944
CITY COUNCIL, CITY OF BURLINGAME, STATE OF CALIFORNIA
AN ORDINANCE OF THE CITY OF BURLINGAME TO ENACT A ONE-QUARTER
CENT RATE TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE
STATE BOARD OF EQUALIZATION
WHEREAS, City of Burlingame residents have indicated that the quality of life in
Burlingame is highly valued; and
WHEREAS, the City of Burlingame has over $100 Million in unmet infrastructure
needs for projects such as pothole, street, and road repair, the proper maintenance of
which are important to maintaining local property values and quality of life; and
WHEREAS, the City seeks to not only maintain, but enhance neighborhood
police patrols and local crime prevention programs, both of which are priorities identified
by the public; and
WHEREAS, the City also seeks to provide adequate park and recreation
facilities, including safe facilities for youth and teens; and
WHEREAS, repairing potholes and maintaining Burlingame's streets, roads, and
sidewalks so they don't deteriorate further and become even more costly to fix in the
future has been a longstanding objective of the City; and
WHEREAS, locally -enacted funding sources such as a voter -approved sales tax
are not subject to seizure by the State, and must be spent in Burlingame to maintain its
local services; and
WHEREAS, the City is highly committed to fiscal accountability and
transparency, and no new revenue raised by a locally enacted sales tax measure will be
used for City administrator salaries; and
WHEREAS, the proposed measure requires Independent Citizens Oversight,
mandatory financial audits, and yearly reports to the community to ensure funds are
spent as promised; and
WHEREAS, under the provisions of the laws relating to general law cities in the
State of California, an election shall be held on November 7, 2017, for the submission to
the voters of a question relating to a local one-quarter cent (0.25%) sales tax; and
WHEREAS, it is desirable that the election be consolidated with the statewide
election to be held on the same date, and that within the City, the precincts, polling
places, and election officers of the two elections be the same; and
WHEREAS, based on all of the information presented at the June 19, 2017
meeting, both written and oral, including the staff reports, minutes, and other relevant
materials, the City Council finds that under CEQA Guidelines 15060( c)( 2) and 15378,
subdivisions ( 2) and ( 4) of subdivision (b), this tax does not constitute a project under
CEQA and therefore review under CEQA is not required;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME,
SUBJECT TO VOTER APPROVAL, ORDAINS AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The City Council of Burlingame, subject to voter
approval, finds that all Recitals are true and correct and are incorporated herein by
reference.
SECTION 2. Amendment of Municipal Code. Chapter 4. 10, Transactions and Use Tax,
of the Burlingame Municipal Code is hereby added to read as follows:
4.10.010 - Title.
This ordinance shall be known as the "Burlingame Essential Services Measure." The
City of Burlingame hereinafter shall be called "City." This ordinance shall be applicable
in the incorporated territory of the City.
4.10.020 - 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.
4.10.030 - 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, 7293, and 7294 of Part 1. 7 of Division 2 which authorize 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
record keeping upon persons subject to taxation under the provisions of this ordinance.
4.10.040 - 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.
4.10.050 - 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 one-quarter
percent (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.
4.10.060 - Place of Sale.
For the purposes of this ordinance, all retail sales are consummated at the place of
business of the retailer unless the tangible personal property sold is delivered by the
retailer or his agent to an out-of-state destination or to a common carrier for delivery to
an out-of-state destination. The gross receipts from such sales shall include delivery
charges, when such charges are subject to the state sales and use tax, regardless of
the place to which delivery is made. In the event a retailer has no permanent place of
business in the State or has more than one place of business, the place or places at
which the retail sales are consummated shall be determined under rules and regulations
to be prescribed and adopted by the State Board of Equalization.
4.10.070 - 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
one-quarter percent (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.
4.10.080 - 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.
4.10.090 - Limitations on Adoption of State Law and Collection of Use Taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the
name of this City shall be substituted therefor. However, the substitution shall not be
made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer,
State Board of Control, State Board of Equalization, State Treasury, or the Constitution
of the State of California;
2. The result of that substitution would require action to be taken by or against this 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.
4.10.100 - 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 ordinance.
4. 10.110 - 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 tax 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 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
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 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
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, 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 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.
5. 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.
6. 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.
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.
4.10.120 - 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.
4.10.130 - 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 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.
4.10.140 - Citizens' Oversight and Annual Audit.
A. There shall be a committee consisting of no fewer than three persons appointed by
the City Council to review and report on the receipt of revenue and expenditure of funds
from the tax authorized by this Chapter ("revenues and expenditures"). Members of the
Committee shall be residents of the City or representatives of businesses located in the
City.
B. Beginning with the fiscal year that ends June 30, 2018, the City's independent
auditors shall, as part of their annual audit of the City's financial statements, review the
collection and expenditure of revenue from the tax authorized by this Chapter. The
auditors' review shall be a public document. The committee shall annually review the
auditors' findings and report in writing to the City Council regarding the accuracy of the
auditors' findings regarding the revenues and expenditures. The committee's statement
shall be transmitted to the City Council for consideration at a public meeting.
C. By January 31, 2018, the City Council shall adopt a resolution establishing the
composition of the committee and defining the scope of its responsibilities consistent
with this section. Provisions defining the scope of committee responsibilities and
reporting requirements shall address bond oversight, in the event that a decision is
made at a later time to sell bonds that are in part backed by the revenues referenced in
this section. The City Council shall appoint the initial members of the committee no later
than March 1, 2018.
4.10.150 - Amendments by City Council.
The following amendments to this Chapter must be approved by the voters of the City:
increasing the tax rate or revising the methodology for calculating the tax such that a tax
increase would result or imposing the tax on transactions and uses not previously
subject to the tax (unless such amendment occurs automatically by operation of Section
4.10.120). The City Council may otherwise amend this Chapter without submitting the
amendment to the voters for approval.
4.10.160 - Termination.
The authority to levy the tax imposed by this ordinance shall be ongoing, unless
terminated earlier by a unanimous vote of the City Council.
SECTION 3. Adjustment of Appropriations Limit
Pursuant to Article XIIIB of the Constitution of the State of California and applicable
laws, the appropriations limit for the City is hereby increased by the aggregate sum
authorized to be levied by this tax for fiscal year 2017-2018 and each year thereafter.
SECTION 4. Compliance with the California Environmental Quality Act.
The approval of this ordinance is exempt from the California Environmental Quality Act
(Public Resources Code §§ 21000 et seq., "CEQA," and 14 Cal. Code Reg. §§ 15000 et
seq., "CEQA Guidelines"). This ordinance imposes a general tax that can be used for
any legitimate governmental purpose; it is not a commitment to any particular action. As
such, under CEQA Guidelines section 15378( b)( 4), the ordinance 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. Therefore, pursuant to CEQA Guidelines section
15060, CEQA analysis is not required.
SECTION 5. Severability.
If any provision of this ordinance or the application thereof to any person or
circumstance is held invalid, the remainder of the ordinance and the application of such
provision to other persons or circumstances shall not be affected thereby.
SECTION 6. Effective Date.
This ordinance relates to the levying and collecting of the City transactions and use
taxes and shall take effect immediately.
SECTION 7. Voter Approval Required.
This ordinance shall only become operative if the tax imposed is approved by a simple
majority of voters voting on the question at the November 7, 2017 election.
SECTION 8. Notice
The City Clerk is directed to take all actions to publish this ordinance as required by
applicable law.
I, MEAGHAN HASSEL-SHEARER, City Clerk of the City of Burlingame, do hereby
certify that the foregoing ordinance was introduced at a regular meeting of the City
Council held on the 19th day of June 2017 and adopted thereafter at a regular meeting
of the City Council held on the 3rd day of July 2017, by the following vote:
AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, KEIGHRAN, ORTIZ
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Meaghan el Barer, Ci y lerk