HomeMy WebLinkAboutORD NO 4958ORDINANCE NO. 4 9 5 8
AN ORDINANCE OF THE PEOPLE OF THE CITY OF BAKERSFIELD
IMPOSING A TRANSACTIONS AND USE TAX BY ADDING
CHAPTER 3.38, "BAKERSFIELD PUBLIC SAFETY/VITAL CITY
SERVICES MEASURE" TO THE BAKERSFIELD MUNICIPAL CODE TO
BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
BE IT ORDAINED by the Council of the City of Bakersfield as follows:
SECTION 1.
Chapter 3.38 of the Bakersfield Municipal Code is hereby added to read as
follows:
3.38.005 TITLE. This ordinance shall be known as the "Bakersfield Public
Safety/Vital City Services Measure Transactions and Use Tax Ordinance." The City
of Bakersfield (hereinafter shall be called 'City):' This ordinance shall be
applicable in the incorporated territory of City.
3.38.010 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.
3.38.015 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 Section 7285.9 of Part 1.7 of Division 2 which authorizes
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 California Department of Tax and Fee Administration in a manner that
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adapts itself as fully as practicable to, and requires the least possible deviation
from, the existing statutory and administrative procedures followed by the
California Department of Tax and Fee Administration in administering and
collecting the California State Sales and Use Taxes.
D. To adopt a retail 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 some
time, minimize the burden of record keeping upon persons subject to taxation
under the provisions of this ordinance.
3.38.020 CONTRACT WITH STATE. Prior to the operative date, City shall contract
with the California Department of Tax and Fee Administration to perform all
functions incident to the administration and operation of this transactions and use
tax ordinance; provided, that if the City shall not have contracted with the
California Department of Tax and Fee Administration 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.
3.38.025 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 City at the rate of I% 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.
3.38.030 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 California Department of Tax and Fee
Administration.
3.38.035 USE TAX RATE. An excise tax is hereby imposed on the storage, use or
other consumption in 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% 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.
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3.38.040 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.
3.3&45 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 madewhen:
1. The word "State" is used as a part of the title of the State
Controller, State Treasurer, 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 California Department of Tax and Fee Administration, 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 taxwhile 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.
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3.38.050 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.
3.38.55 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 City which is shipped to a
point outside 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 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 eAKe
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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 such
purchase of property for any period of time for which the lessee is lease the
obligated to 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 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
City or participates within 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 City or through any representative, agent,
canvasser, solicitor, subsidiary, or person in City under the authority of the retailer.
7. "A retailer engaged in business in 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 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.
3.38.060 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.
3.38.065 ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate
or other legal or equitable process shall issue in any suit, action or proceeding in
any court against the State or City, or against any officer of the State or 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.
3.38.070 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.
3.38.075 EFFECTIVE DATE. This ordinance relates to the levying and collecting
of City transactions and use taxes and shall be posted in accordance with the
provisions of the Bakersfield Municipal Code and shall become effective ten (10)
days from and after the date of its passage.
3.38.080 TERMINATION DATE. The authority to levy the tax imposed by this
ordinance shall expire when ended by voters of City.
3.38.085 CITIZENS OVERSIGHT COMMITTEE. Prior to the Operative Date, City
Council shall adopt a resolution establishing the composition of a Committee of nK
no more than nine residents of City to act in an advisory capacity to review the e e9T
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expenditure of revenues generated by the tax imposed by this ordinance. The
Committee shall advise City Council on goals and objectives associated with the
revenues imposed by this ordinance. City Council also appoints City manager, or
City Manager designee, as the committee coordinator of the Committee.
3.38.090 ACCOUNTING, TRANSPARENCY AND AUDIT.
A City shall ensure the tax revenues received and expenditures made
in relation to the tax that is subject to this ordinance are accounted
for distinctly from all other revenues and expenditures within City's
accounting system.
B City shall ensure these revenues and expenditures are identified
separately within City's annual budget document and made
available through common public platforms, including, but not
limited to City's web site and Open Budget.
C. City shall produce an annual report to inform the residents of
Bakersfield how the funds subject to this ordinance are being
expended. The report shall provide a comprehensive review of the
funds received, budgeted and expended in relation to the tax that
is subject to this ordinance. The report shall be provided to the
Citizens Oversight Committee for review and made available on
City's web site and all other customary City communications
platforms as determined feasible by City Manager.
D. City shall ensure that annual independent audits are conducted to
account for the tax revenues received and expenditures made in
relation to the tax that is subject to this ordinance, and to ensure
consistency with spending priorities.
E Such audits will be provided to the Citizens Oversight Committee for
review made available on City's web site and all other customary
City communications platforms as determined feasible by City
Manager.
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HEREBY CERTIFY that the foregoing ordinance was passed and adopted,
by the Council of the City of Bakersfield at a regular meeting thereof held on
DEC 11 1018 by the following vote:
AYF t COUNCILMEMBER: RIVERA, GON ALES, WEIR, SMITH, FREEMAN, SULLIVAN, PAR ER
NOES:COUNCILMEMBER: NDr\o
ABSTAIN: COUNCILMEMBER: Ny(\Q
ABSENT: COUNCILMEMBER
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JUME DRIMAKIS
ACTING CITY CLERK and Ex Officio Clerk of
Council of the City of Bakersfield
APPROVED: DEC 12 2018
By:— f
KAREN dOH
Mayor
APPROVED AS TO FORM:
VIRGINIAGEyJJARO
City Attorn
By:
V GINIA GENNARO
City Attorney
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ORIGINAL
AFFIDAVIT OF POSTING DOCUMENTS
STATE OF CALIFORNIA)
) ss.
County of Kern )
JULIE DRIMAKIS, being duly sworn, deposes and says:
That she is the duly appointed, acting and qualified City Clerk of the City of Bakersfield,
and that on the 1411 day of December. 2018 she posted on the Bulletin Board at City
Hall, a full, true and correct copy of the following: Ordinance No. 4958, passed by the
Bakersfield City Council at a meeting held on the 12th day of December. 2018 and
entitled:
AN ORDINANCE OF THE PEOPLE OF THE CITY OF BAKERSFIELD IMPOSING A
TRANSACTIONS AND USE TAX BY ADDING CHAPTER 3.38, "BAKERSFIELD PUBLIC
SAFETY/VITAL CITY SERVICES MEASURE" TO THE BAKERSFIELD MUNICIPAL CODE TO
BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION.
JULIE DRIMAKIS, CMC
Acting City Clerk and Ex Officio of the
Council of the City of Bakersfield
By: aonif, 6L4
DEPOW City Clerk
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