HomeMy WebLinkAboutRES NO 007-19X-Ref.qr -013 RESOLUTION NO. Q 07- 19
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD
AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND FEE
ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND
USE TAX.
WHEREAS, on December 12, 2018, the City Council approved Ordinance No. 4958
amending the City Municipal Code and providing for a local transactions and use tax;
and
WHEREAS, the California Department of Tax and Fee Administration (Department)
administers and collects the transactions and use taxes for all applicable jurisdictions
Within the state; and
WHEREAS, the Department will be responsible to administer and collect the
transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a "Preparatory
Agreement" and an "Administration Agreement" prior to implementation of said taxes,
and
WHEREAS, the Department requires that the City Council authorize the
agreements;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield as
follows:
The above recitals are true and correct; and
2. The "Preparatory Agreement' attached as Exhibit A and the
"Administrative Agreement" attached as Exhibit B are hereby approved
and the City Manager is hereby authorized to execute each agreement;
and
3. This resolution shall become effective immediately upon its passage and
adoption
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OFIONAL
HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the
Council of the City of Bakersfield at a regular meeting thereof held on
IAN 0 g 901A by the following vote:
✓ ✓ ✓ ✓ ✓ ✓ ✓
AV COUNCILMEMBER: RIVERA, GONZALES, WEIR, SMITH, FREEMAN, SULLIVAN, PARLIER
NOES: COUNCILMEMBER: wlo
ABSTAIN: COUNCILMEMBER: NonR
ABSENT: COUNCILMEMBER: N U
JU IE DRIMAKIS
CITY CLERK and Ex Officio Clerk of the
Council of the City of Bakersfield
APPROVED: IAN 0 9 2019
By 9
KAREN GOH, Mayor
City of Bakersfield
APPROVED AS TO FORM:
VIRGINIA NARO
City Attor
By u''q
V GINIA G NNARO
City Attorney
VGK/vIg
Attachment
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PRIGINI
AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance
with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code, the City of Bakersfield, hereinafter called City, and the CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as
follows:
1. The Department agrees to enter into work to prepare to administer and operate a
transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code
which has been approved by a majority of the electors of the City and whose ordinance has been
adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified
all of the Department's costs for preparatory work necessary to administer the City's transactions and
use tax ordinance. The Department's costs for preparatory work include costs of developing
procedures, programming for data processing, developing and adopting appropriate regulations,
designing and printing forms, developing instructions for the Department's staff and for taxpayers, and
other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.
These costs shall include both direct and indirect costs as specified in Section 11256 of the
6overnmem Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal
accounting and personnel records currently maintained by the Department. The billings for costs may
be presented in summary form. Detailed records of preparatory costs will be retained for audit and
verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Department shall be
referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department
periodically, with the final billing within a reasonable time after the operative date of the ordinance.
City shall pay to the Department the amount of such costs on or before the last day of the next
succeeding month following the month when the billing is received.
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ORIGINAL
6. The amount to be paid by City for the Department's preparatory costs shall not exceed one
hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)
7. Communications and notices may be sent by first class United States mail.
Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Supervisor
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
City Clerk, City of Bakersfield
1600 Truxtun Ave
Bakersfield, CA 93301
8. The date of this agreement is the date on which it is approved by the Department of General
Services. This agreement shall continue in effect until the preparatory work necessary to administer
City's transactions and use tax ordinance has been completed and the Department has received all
payments due from City under the terms of this agreement.
CITY OF BAKERSFIELD CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
Alan Tandy
City Manager
(Rev. 11/17)
2
Administrator
Local Revenue Branch
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Bakersfield has adopted, and the voters of the City of
Bakersfield (hereafter called "City" or "District") have approved by the required majority vote, the
City of Bakersfield Transactions and Use Tax Ordinance (hereafter called "Ordinance"), a copy of
which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and
Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration,
(hereinafter called the "Department") and the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement,
they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed
under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in
compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to
above and attached hereto, Ordinance No.4958, as amended from time to time, or as deemed to be
amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform
exclusively all functions incident to the administration and operation of the City Ordinance.
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B. Other Applicable Laws. City agrees that all provisions of law applicable to the
administration and operation of the Department Sales and Use Tax Law which are not inconsistent
with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration
and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance
may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn
from that Fund for any authorized purpose, including making refunds, compensating and reimbursing
the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which
City is entitled.
C. Transmittal of money.
For the period during which the tax is in effect, and except as otherwise provided herein, all
district taxes collected under the provisions of the City Ordinance shall be transmitted to City
periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City's self-imposed
limits or by final judgment of any court of the State of California holding that City's ordinance is
invalid or void, all district taxes collected under the provisions of the City Ordinance shall be
transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City
designated and authorized by the City. A statement shall be famished at least quarterly indicating the
amounts withheld pursuant to Article IV of this Agreement.
D. Rules. The Department shall prescribe and adopt such rules and regulations as in its
judgment are necessary or desirable for the administration and operation of the City Ordinance and the
distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this
Agreement, the Department shall give no preference in applying money received for state sales and use
taxes, state -administered local sales and use taxes, and district transactions and use taxes owed by a
taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties,
cities and counties, redevelopment agencies, other districts, and City as their interests appear.
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F. Security. The Department agrees that any security which it hereafter requires to be
furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will
be available for the payment of the claims of City for district taxes owing to it as its interest appears.
The Department shall not be required to change the terms of any security now held by it, and City shall
not participate in any security now held by the Department.
G. Records of the Department.
When requested by resolution of the legislative body of the City under section 7056 of the
Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to
examine the records of the Department, including the name, address, and account number of each
seller holding a seller's permit with a registered business location in the City, pertaining to the
ascertainment of transactions and use taxes collected for the City. Information obtained by the City
from examination of the Department's records shall be used by the City only for purposes related to the
collection of transactions and use taxes by the Department pursuant to this Agreement.
H. Annexation. City agrees that the Department shall not be required to give effect to an
annexation, for the purpose of collecting, allocating, and distributing District transactions and use
taxes, earlier than the fust day of the calendar quarter which commences not less than two months after
notice to the Department. The notice shall include the name of the county or counties annexed to the
extended City boundary. In the event the City shall annex an area, the boundaries of which are not
cotenninous with a county or counties, the notice shall include a description of the area annexed and
two maps of the City showing the area annexed and the location address of the property nearest to the
extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that
impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2
of the Revenue and Taxation Code:
(Rev. 10/17)
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1. Any payment not identified as being in payment of liability owing to a designated
district or districts may be apportioned among the districts as their interest appear, or, in the discretion
of the Department, to all districts with which the Department has contracted using ratios reflected by
the distribution of district taxes collected from all taxpayers.
2. All district taxes collected as a result of determinations or billings made by the
Department, and all amounts refunded or credited may be distributed or charged to the respective
districts in the same ratio as the taxpayer's self -declared district taxes for the period for which the
determination, billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to
vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for
registration or on the certificate of ownership may be used by the Department in determining the place
of use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City
Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes
collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States
mail to the addresses listed below, or to such other addresses as the parties may from time to time
designate. A notification is complete when deposited in the mail.
(Rev. 10/17) 4
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Communications and notices to be sent to the Department shall be addressed to:
California State Department of Tax and Fee Administration
P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:
City Clerk, City of Bakersfield
1600 Truxtun Ave
Bakersfield, CA 93301
Unless otherwise directed, transmittals of payment of District transactions and use taxes
will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of
General Services. The Agreement shall take effect on April 1, 2019. This Agreement shall continue
until December 31 next following the expiration date of the City Ordinance, and shall thereafter be
renewed automatically from year to year until the Department completes all work necessary to the
administration of the City Ordinance and has received and disbursed all payments due under that
Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Department written notice of the
repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.
(Ac. 10/17)
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ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the
City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under
Article II. C., until a court of competent jurisdiction renders a final and non -appealable judgment that
the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall
transmit to the Department the moneys retained in escrow, including any accumulated interest, within
ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and
non -appealable.
B. Costs of administration. Should a final judgment be entered in any court of the State of
California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to
taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to
administer the City Ordinance.
2. City will pay to Department and allow Department to retain Department's cost of
administering the City Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Department or to the State of California the amount of any taxes plus
interest and penalties, if any, that Department or the State of California may be required to rebate or
refund to taxpayers.
(Rcv10/17) 6
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4. City will pay to Department its costs for rebating or refunding such taxes, interest, or
penalties. Department's costs shall include its additional cost for developing procedures for processing
the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and
developing instructions for Department's staff for use in making these rebates or refunds and any other
costs incurred by Department which we reasonably appropriate or necessary to make those rebates or
refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256
of the Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting,
and personnel records currently maintained by the Department. The billings for such costs may be
presented in summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall
be referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Department in connection with such refunds shall be billed by
Department on or before the 25th day of the second month following the month in which the judgment
of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter
Department shall bill City on or before the 25th of each month for all costs incurred by Department for
the preceding calendar month. City shall pay to Department the amount of such costs on or before the
last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and
penalties refunded or paid to taxpayers, together with Department costs incurred in making those
refunds.
CITY OF BAKERSFIEILD CALIFORNIA STATE DEPARTMENT OF
TAX AND FEE ADMINISTRATION
a
By
Alan Tandy Administrator
City Manager Local Revenue Branch
ft10/17) 7
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ORDINANCE 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
Califomia 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 same
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 1% 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 Califomia 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.
3.38.45 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 made when:
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 sellers 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 a"KF9
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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 Port 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 0 f9T
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ORIGINAL
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.
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.
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.
3enkF9m
ORIGW41
I 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 121018 by the following vote:
Y t COUNCILMEMBER: RIVERA, GON ALES, WEIR, R, SMITH, FREEMAN, SULLIVAN, PAR ER
NOES: COUNCILMEMBER: NDY\o
ABSTAIN: COUNCILMEMBER: f1i i>nn
ABSENT: COUNCILMEMBER: It, 0Cf�L,
9Iu.z ��
AVE DRIMAKIS
ACTING CITY CLERK and Ex Officio Clerk of
Council of the City of Bakersfield
APPROVED: DEC 12 1018
By:
KAREN OOH
Mayor
APPROVED AS TO FORM:
VIRGINIA GEN4ARO
City Attom7Y
By:
V GINIA GENNARO
City Attorney
RI/vIg of gp Keq
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ORIGINAL
AFFIDAVIT OF POSTING DOCUMENTS
STATE OF CALIFORNIA)
)as.
County of Kem )
JULIE DRIMAKIS, being duly sworn, deposes and says:
That she is the duty 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:
DEPJATY City Clerk
SAMUMENT`FORMSKOV ORD.wpd