Legislation Details

File #: HIST-20157    Version: 1 Subject:
Type: Historical Status: Action Item
In control: City Council Meeting Agenda
On agenda: 7/16/2012 Final action: 7/16/2012
Title: Adoption of Resolutions (1) (Unanimous Vote Requirement) Declaring a Fiscal Emergency Pursuant to Article XIII C of the Constitution of the State of California; (2) Calling and Giving Notice of the Holding of a Special Municipal Election to be Consolidated with the Statewide General Election to be Held on Tuesday, November 6, 2012 for the Purpose of Submitting to the Voters a Measure Relating to Implementing a Local Transactions and Use Tax (Sales Tax); (3) Requesting the Board of Supervisors of the County of Los Angeles Render Specified Services Related to the Conduct of said Election; (4) Authorizing the City Council and/or Certain Council Members to Submit Ballot Arguments and Rebuttals Regarding the Measure; (5) Potential Creation and Appointment of Members to an Ad-Hoc Subcommittee to Draft and/or Submit Such Ballot Argument(s) and Rebuttal(s); and (6) (Four-Fifths Vote Requirement) Approving a Related Budget Amendment.
Attachments: 1. Adoption of Resolutions (1) (Unanimous Vote Requi - A-2__12-07-16_CFO_CITY COUNCIL__Sales Tax_on_Ballot-FINAL.pdf, 2. Adoption of Resolutions (1) (Unanimous Vote Requi - 2012-07-16_ATT_CFO_LocalSalesTaxMeasure.pdf
City of Culver City, California Agenda Item Report Meeting Date: 07/16/2012 Item Number: A-2 CITY COUNCIL AGENDA ITEM: Adoption of Resolutions (1) (Unanimous Vote Requirement) Declaring a Fiscal Emergency Pursuant to Article XIII C of the Constitution of the State of California; (2) Calling and Giving Notice of the Holding of a Special Municipal Election to be Consolidated with the Statewide General Election to be Held on Tuesday, November 6, 2012 for the Purpose of Submitting to the Voters a Measure Relating to Implementing a Local Transactions and Use Tax (Sales Tax); (3) Requesting the Board of Supervisors of the County of Los Angeles Render Specified Services Related to the Conduct of said Election; (4) Authorizing the City Council and/or Certain Council Members to Submit Ballot Arguments and Rebuttals Regarding the Measure; (5) Potential Creation and Appointment of Members to an Ad-Hoc Subcommittee to Draft and/or Submit Such Ballot Argument(s) and Rebuttal(s); and (6) (Four-Fifths Vote Requirement) Approving a Related Budget Amendment. Contact Person/Dept.: Martin R. Cole, Assistant City Manager Jeff Muir, Chief Financial Officer Phone Number: (310) 253-6000 (310) 253-5865 Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No [] Public Hearing: [] Action Item: [X] Attachments: [X] Commission Action Required: Yes [] No [] Date: _______________ Public Notification: (E-Mail) Meetings and Agendas – City Council (07/12/12) Department Approval: Jeff Muir (07/11/12) Martin Cole (07/11/12) City Attorney Approval: Carol Schwab (07/11/12) Chief Financial Officer Approval: Jeff Muir (07/11/12) City Manager Approval: John Nachbar (07/11/12) RECOMMENDATION: Staff recommends the City Council: 1. (Unanimous Vote Required) Adopt a resolution declaring a fiscal emergency in accordance with Section XIII C of the Constitution of the State of California; and, 2. Adopt a Resolution calling and giving notice of the holding of a Special Municipal Election to be consolidated with the Statewide General Election to be held on Tuesday, November 6, 2012 for purposes of submitting to the voters a measure which would implement one of the following: a. A local transactions and use tax (sales tax) in the amount of one-half of one percent effective April 1, 2013; or, b. A local transactions and use tax (sales tax) in the amount of three- quarters of one percent effective April 1, 2013; or, City of Culver City, California Agenda Item Report c. A local transactions and use tax (sales tax) in the amount of one-half of one percent effective April 1, 2013 with an automatic sunset in five years; or, d. A local transactions and use tax (sales tax) in the amount of three- quarters of one percent effective April 1, 2013 with an automatic sunset in five years; or, e. A local transactions and use tax (sales tax) in the amount of three- quarters of one percent effective April 1, 2013, with one-quarter percent of the tax sunsetting in five years; or, f. Another option as determined by City Council pursuant to public testimony and discussion. 3. (Four-fifths Vote Required) Adopt a Resolution requesting the Board of Supervisors of the County of Los Angeles to render specified services to the City relating the conduct of a Special Municipal Election and approve the appropriation of necessary funds; and, 4. Adopt a Resolution authorizing the City Council and/or certain Council Members to submit arguments and rebuttals regarding the ballot measure. BACKGROUND: Culver City, like most corporate entities both private and public, has been significantly impacted by the “Great Recession” that began in 2008. As a result of the “Great Recession”, along with unprecedented actions by the State of California including the elimination of redevelopment, the City has experienced a significant permanent decrease in General Fund Revenues at a time when the City’s costs were increasing. This has resulted in an ongoing structural operating deficit of approximately $7 to $8 million in the General Fund, even after all the expenditure reductions outlined in the following paragraphs. Since Fiscal Year 2008/2009, the City Council has taken a number of steps to reduce costs. Those steps include: • Reaching new labor agreements with the City’s six employee bargaining units, resulting in savings in both the short and long term • The new labor agreements included provisions that required employees to pay the full employee share of pension costs (8% of salary for non-safety employees and 9% of salary for safety employees) • Medical insurance cost increases to the City were capped at 4%. Increased costs above this cap are borne by the employee City of Culver City, California Agenda Item Report • Over three years, the number of staff positions in the City’s general fund has been reduced by 78 (or approximately 17%) • Reducing other general fund operating expenses by approximately $1 million per year At the beginning of Fiscal Year 2011/2012, through implementation of approximately $6 - $7 million in expenditure cuts, along with approximately $3 million in savings from renegotiated labor agreements and weak improvement in the economy, while there was still work to be done, the City seemed to be able to “see the light at the end of the tunnel.” Unfortunately, the State of California stepped in yet again to “redirect” traditional local funds to the State to assist the State in addressing its own significant budget shortfall. On February 1, 2012, the State took the unprecedented step of eliminating redevelopment agencies throughout the State, including the Culver City Redevelopment Agency. The Culver City Redevelopment Agency had used its unique powers and local funding to eliminate blight, encourage economic growth, and fund low-and-moderate income housing. Through the Agency’s efforts, Culver City saw a transformation into a “destination” for diners and shoppers alike. Over the 30 year history of the Culver City Redevelopment Agency, the Agency had provided funding for positions and programs related to Redevelopment through a reimbursement to the City’s general fund. By Fiscal Year 2011/2012, the amount of that reimbursement had reached $7.5 million annually. Through the state’s unprecedented action, the progress the City had made in cutting expenditures to balance the City’s budget had been wiped out overnight. At this point, to balance the City’s budget through cuts alone will have a significant impact on the level of service the City can provide. This, in turn, would have an impact on the quality of life of Culver City residents and business owners. DISCUSSION Prior to implementing such significant action, the City has taken steps to solicit the community’s input and suggestions. First, the City commissioned a “Ballot Measure Feasibility Survey” to help the City understand the views of the Culver City Community on the services it wants to receive from its local government. The Survey also sought to gauge the support of the community for an increase in general fund revenues from the implementation of either a half-cent or three-quarter-cent local transactions and use tax (commonly known as the sales tax). Results of the Survey were presented to the public and the Council at the June 4, 2012 City Council meeting. City of Culver City, California Agenda Item Report In addition to the Survey, the City Council directed that there would be five Community Dialogue meetings where the state of the City’s finances would be presented and members of the public could share their thoughts and suggestions on this important topic directly with the City Council. Those five meetings where held on: June 18, June 23, June 25, July 9, and July 16. For those members of the Community that were unable to attend the Community Dialogues in person, the City’s website contained excerpts from the Community Dialogue of June 18 along with a copy of the presentation on the results of the Community Survey. Comments could be provided via USPS, e-mail, or phone call. During the Community Dialogues, the City Council received additional suggestions from members of the public relating to the half-cent local sales tax concept. There were certain members of the public that said the City should consider a higher tax rate. There were other members of the public that said the City should include a sunset provision in the measure. Based on this input, staff has prepared a menu of options from which the City Council may choose to select for placement on the ballot. The City Council may also choose to make minor modifications to the selections provided by staff through a motion at the meeting. A major change to the options presented may require the item to return to the next Council meeting for final consideration. Some of the options provided below include a sunset provision. A sunset provision would cause the tax to end or be reduced automatically, unless voters approve extending the tax at a subsequent election. While the ultimate policy decision rests with the City Council, staff offers the following reasoning why a sunset provision for a half-cent sales tax is not recommended by staff. As discussed during multiple budget and other financial presentations over the last several years, basic financial principles provide that on-going resources must match on-going costs in the long-term. The five year financial forecast for the General Fund shows this is not the case for Culver City. This forecast includes modest growth assumptions in revenues. The result is still a deficit of $7 to $8 million per year, and this figure does not include our approximate $2 to $3 million annual shortfall in spending for infrastructure maintenance. Also, this forecast only includes very modest assumptions for public safety salary increases, which are completely out of the City’s hands. It also includes no assumption for cost of living increases for CCEA or CCMG. Culver City, like all levels of government agencies across the nation, was hit hard by the recession. The City’s projected revenues are still millions below what they were in 2007. There is still tremendous uncertainty in the national and worldwide economy. This, coupled with the elimination of redevelopment, has changed the reality of our ability to afford our current service levels. The elimination of the Agency has also placed in serious jeopardy projects that would have benefited the City’s tax base (Parcel B, Washington/National, etc.). It would take economic events City of Culver City, California Agenda Item Report of unparalleled and unprecedented magnitude to result in the City’s existing revenue base increasing to a degree that would eliminate the need for additional revenue and solve the deficit. It is extremely unlikely this will happen, and seems virtually impossible within the next five years. A sunset provision for the entire tax would indicate a belief that our problem is temporary. Staff strongly thinks the fiscal issues we face are not temporary in nature, and that a permanent and on-going increase in our revenue base is required to fund existing staffing and stabilize service levels to the community. If the half-cent sales tax expires in five years, staff feels with near certainty that the City will be right back in the position faced today. The polling results showed that the measure was strongly supported without a sunset provision. Given recent actions by the State, there is no guarantee that the Legislature might not take some action that would preclude us from extending the tax in the future. In summary, staff recommends against the inclusion of a sunset provision in this measure for the first half cent. There is an on-going need for increased revenues at least equal to and exceeding the projected proceeds of this measure. If there is such radical growth in revenues in the future, the City Council has the ability by its own action to reduce or eliminate the tax, or look at reducing some other tax such as the gross receipts tax on businesses. If the City Council does determine to include a sunset provision, then staff would recommend a longer term, such as ten or fifteen years. With the benefit of significant community input, the City Council is requested to consider various options and resolutions which, if adopted, would call a Special Municipal Election for November 6, 2012 for the purpose of having the voters consider implementation of a local sales tax. To effectuate the election, the City Council is requested to: 1. Declare the existence of a fiscal emergency pursuant to Article XIII C of the California Constitution (a unanimous vote is required for the declaration of fiscal emergency); and, 2. (If the fiscal emergency is declared) Select the amount and duration of the local transactions and use tax (sales tax) from the options provided, or provide alternative direction. Call and give notice of the holding of the special election to be consolidated with the Statewide General Election to be held on November 6, 2012. 3. Request the County of Los Angeles provide the services for this election. 4. Authorize the City Council and/or certain Council Members to submit arguments regarding the ballot measure. City of Culver City, California Agenda Item Report Declaring the Existence of a Fiscal Emergency Section XIII C, Section 2(b) of the Constitution of the State of California states, in pertinent part: “…No local government may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A general tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. The election required by this subdivision shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body (emphasis added)…” For several years, and most recently during the budget process and the five Community Dialogue meetings, staff has presented the City Council and community with information related to the City’s structural deficit and the lack of funding for fundamental public safety and other municipal operations, significant deferred maintenance and other long-term liabilities. The severe economic downturn and the elimination of redevelopment resulting in a permanent loss of general fund revenue demonstrate that the City is in the midst of a fiscal emergency. Staff recommends the City Council unanimously adopt a resolution declaring the existence of a fiscal emergency to allow the voters to consider this item on November 6, 2012. Absent this declaration, the earliest this item could be considered by the voters would be April, 2014. Calling of the Special Election Should the City Council unanimously adopt the proposed resolution declaring the fiscal emergency, then staff recommends the City Council adopt one of the proposed resolutions, with the appropriate ordinance attached as an exhibit, calling and giving notice of the holding of a Special Municipal Election to be consolidated with the Statewide General Election on November 6, 2012. Proposed resolutions and corresponding ordinances as exhibits have been provided to effectuate one of the following options: Option 1 - A local transactions and use tax (sales tax) in the amount of one-half of one percent effective April 1, 2013. Option 2 - A local transactions and use tax (sales tax) in the amount of three- quarters of one percent effective April 1, 2013. Option 3 - A local transactions and use tax (sales tax) in the amount of one-half of one percent effective April 1, 2013 with an automatic sunset in five years. City of Culver City, California Agenda Item Report Option 4 - A local transactions and use tax (sales tax) in the amount of three- quarters of one percent effective April 1, 2013 with an automatic sunset in five years. Option 5 - A local transactions and use tax (sales tax) in the amount of three- quarters of one percent effective April 1, 2013, with an automatic reduction to one-half of one percent in five years. While it is recommended City Council select one of the options above, after public testimony and discussion, the City Council may amend one of the options above through motion from the dais. It should be noted, that if the public approves a sales tax increase, it would be approving an ordinance amending Chapter 3.08 of the Culver City Municipal Code, to reflect the increase. The proposed ordinance will be attached to the Resolution Calling the Special Election, as Exhibit A and will be included in the Voters Pamphlet. Requesting the County to Conduct the Election In accordance with Section 10002 of the Elections Code of the State of California, the governing body of any city or district may, by resolution, request the Board of Supervisors of the county to permit the County Elections Official to render specified services to the city or district relating to the conduct of an election. Because the County is already going to be conducting an election on November 6, 2012, staff recommends the proposed Special Municipal Election be consolidated with the Statewide General Election and recommends the City Council adopt the proposed resolution which requests the Board of Supervisors render specified services to the City relating to the conduct of said election. Authorizing the City Council and/or Certain Council Members to Submit Arguments The City Council, authorized members of the City Council, citizen associations and private citizens may submit arguments for or against the proposed Measure. Only one ballot argument for and one ballot argument against each measure and rebuttals to each may be printed in the sample ballot. The Elections Code gives preference to the arguments submitted by the City Council, as a body, or by Council Members authorized to submit arguments by the City Council. Should the City Council decide to submit an argument as a body, it is automatically placed on the ballot. If the City Council decides to have some of its members submit an argument, those members need to be designated by the City Council in order for their argument(s) to receive priority. The City Council should decide whether it will submit initial and rebuttal arguments for or against the measure as a body or designate individual Council Members to City of Culver City, California Agenda Item Report submit those arguments. If individual members are to be designated, then the City Council should make those designations at this meeting. Please note, that if more than two City Council Members will be working together to write, or intend to give comments on the same argument, then, pursuant to the Brown Act, the discussions and comments among those members can only occur during a duly noticed public meeting of the City Council. Based on the calendar in the Los Angeles County Measure Information Booklet for the November 6, 2012 election, primary arguments are due to the County no later than August 20, 2012 and shall not exceed 300 words in length. However, the Elections Code provides that primary arguments must be submitted no later than 14 days after the calling of the election. Therefore, such primary arguments must be submitted to the City Clerk’s Office no later than closed of business (5:30 PM) on July 30, 2012. Should the City Council determine that it wishes to review and approve the primary argument, such review and approval should be completed no later than the Regular Meeting of the City Council on July 23, 2012 (or at a Special Meeting called in time to meet this statutory deadline). Rebuttal arguments are due 10 days after the primary arguments are due and shall not exceed 250 words. The deadline for rebuttal arguments would be no later than close of business (5:30 PM) on August 9, 2012. Should a rebuttal argument be needed and deemed desired by the City Council, and the City Council should determine that it wishes to review and approve the rebuttal argument, then such review and approval should be completed no later than the regularly scheduled Special Meeting of the City Council to be held on August 6, 2012 (or at a Special Meeting called in time to meet this statutory deadline). FISCAL ANALYSIS: The estimated cost to consolidate the election with Los Angeles County is $80,000. This was not included in the Fiscal Year 2012/2013 budget, and a budget amendment, requiring a four-fifths vote, is necessary in order to appropriate funds from reserves. ATTACHMENTS: 1. Proposed Resolution Declaring a fiscal emergency pursuant to Section XIII C of the California Constitution. 2a. Proposed Resolution (Option 1) Calling and Giving Notice of the Holding of a Special Municipal Election to be Held on Tuesday, November 6, 2012; Submitting a Question Relating to the Implementation of a Local Transaction and Use Tax Ordinance (including Exhibit A thereto which is the proposed Ordinance). City of Culver City, California Agenda Item Report 2b. Proposed Resolution (Option 2) Calling and Giving Notice of the Holding of a Special Municipal Election to be Held on Tuesday, November 6, 2012; Submitting a Question Relating to the Implementation of a Local Transaction and Use Tax Ordinance (including Exhibit A thereto which is the proposed Ordinance). 2c. Proposed Resolution (Option 3) Calling and Giving Notice of the Holding of a Special Municipal Election to be Held on Tuesday, November 6, 2012; Submitting a Question Relating to the Implementation of a Local Transaction and Use Tax Ordinance (including Exhibit A thereto which is the proposed Ordinance). 2d. Proposed Resolution (Option 4) Calling and Giving Notice of the Holding of a Special Municipal Election to be Held on Tuesday, November 6, 2012; Submitting a Question Relating to the Implementation of a Local Transaction and Use Tax Ordinance (including Exhibit A thereto which is the proposed Ordinance). 2e. Proposed Resolution (Option 5) Calling and Giving Notice of the Holding of a Special Municipal Election to be Held on Tuesday, November 6, 2012; Submitting a Question Relating to the Implementation of a Local Transaction and Use Tax Ordinance (including Exhibit A thereto which is the proposed Ordinance). 3. Proposed Resolution Requesting the Board of Supervisors of the County of Los Angeles to Render Specified Services to the City of Culver City Relating to the Conduct of a Special Municipal Election to be consolidated with the Statewide General Election to be Held in the City on Tuesday, November 6, 2012 4. Proposed Resolution Authorizing the City Council and/or Certain Council Members to Submit Arguments Regarding the Implementation of a Local Transaction and Use Tax Measure on the Ballot for the November 6, 2012 Election. MOTION: That the City Council: 1) (Unanimous Vote Required) Adopt a resolution declaring a fiscal emergency pursuant to Section XIII C of the California Constitution; and, 2) Select an Option and Adopt a Resolution Calling and Giving Notice of the Holding of a Special Municipal Election to be Consolidated with the Statewide General Election to be held on Tuesday, November 6, 2012; Submitting a Question Relating to the Implementation of a Local Transaction and Use Tax (Sales Tax), with Exhibit A, a proposed ordinance; and, 3) Adopt a Resolution Requesting the Board of Supervisors of the County of Los Angeles to Render Specified Services to the City of Culver City Relating to the City of Culver City, California Agenda Item Report Conduct of a Special Municipal Election to be Held in the City on Tuesday, November 6, 2012; and 4) (Four-Fifths Vote Required) Approve a Budget Amendment appropriating $80,000 from the General Fund Reserve to cover costs to conduct the Election; and, 5) Approve a Resolution Authorizing the City Council and/or Certain Council Members to Submit Arguments Regarding the Implementation of a Local Transaction and Use Tax; OR 6) (If the City Council determines to Designate Certain Members to submit such arguments) Designate the following Council Members to submit ballot arguments and rebuttals regarding the Implementation of a Local Transaction and Use Tax: ________________________________________________________________ ___________; OR 7) Discuss the formation of an Ad Hoc Subcommittee and appoint members thereto for the drafting of the primary argument and rebuttal argument (if needed) and, if the subcommittee is created, require the subcommittee to complete its work in time to present the City Council with a draft primary argument on July 23, 2012 and any rebuttal argument no later than August 6, 2012. MEETING DATE: 07/16/2012 AGENDA ITEM: Adoption of Resolutions (1) (Unanimous Vote Requirement) Declaring a Fiscal Emergency Pursuant to Article XIII C of the Constitution of the State of California; (2) Calling and Giving Notice of the Holding of a Special Municipal Election to be Consolidated with the Statewide General Election to be Held on Tuesday, November 6, 2012 for the Purpose of Submitting to the Voters a Measure Relating to Implementing a Local Transactions and Use Tax (Sales Tax); (3) Requesting the Board of Supervisors of the County of Los Angeles Render Specified Services Related to the Conduct of said Election; (4) Authorizing the City Council and/or Certain Council Members to Submit Ballot Arguments and Rebuttals Regarding the Measure; (5) Potential Creation and Appointment of Members to an Ad-Hoc Subcommittee to Draft and/or Submit Such Ballot Argument(s) and Rebuttal(s); and (6) (Four-Fifths Vote Requirement) Approving a Related Budget Amendment. . ATTACHMENTS 1. Proposed Resolution 1-2 2a. Proposed Resolution (Option 1) 2b. Proposed Resolution (Option 2) 2c. Proposed Resolution (Option 3) 2d. Proposed Resolution (Option 4) 2e. Proposed Resolution (Option 5) 3. Proposed Resolution 4. Proposed Resolution 3-15 16-28 29-41 42-54 55-67 68-70 71-72 -1- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION No. 2012- R_________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, DECLARING A FISCAL EMERGENCY IN ACCORDANCE WITH ARTICLE XIII C OF THE CALIFORNIA CONSTITUTION WHEREAS, Article XIII C of the California Constitution provides, in pertinent part: “…No local government may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A general tax shall not be deemed to be increased if it is imposed at a rate not higher than the maximum rate so approved. The election required by this subdivision shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body…” and; WHEREAS, for several years, most recently during the budget process and five community dialogue meetings held in June and July of this year, staff has presented the City Council and community with information related to the City’s structural deficit, the lack of funding for significant deferred maintenance and other long-term liabilities; and, WHEREAS, the City Council, working with the community and staff, was able to significantly reduce the number of staff positions and other operating costs, both short and long term; and, WHEREAS, the State of California, through the adoption of AB 1X 26 as validated and reformed by the Supreme Court of California, caused the dissolution of all redevelopment agencies throughout the state, including the Culver City Redevelopment Agency; and, WHEREAS, the State’s action to dissolve redevelopment agencies caused an almost overnight reduction in the City’s general fund revenues of 1 -2- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 approximately $7 million, wiping out the progress made by the City in reducing costs over the past three years; and, WHEREAS, after conducting five community dialogue meetings where members of the community were invited to provide comment and input related to the impacts of these significant losses of revenues and the impacts such losses would have on the quality of life in Culver City, the City Council considers such losses to create a fiscal emergency in the City. NOW, THEREFORE, the City Council of the City of Culver City, California, DOES HEREBY RESOLVE, as follows: 1. That based upon the above recitals and other substantial information available as part of the public record, an emergency exists for the purposes described in the California Constitution Section XIII C, Section 2(b). APPROVED and ADOPTED this ___ day of ____________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 2 -1- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION No. 2012- R_________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, CALLING FOR THE HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2012, FOR THE SUBMISSION TO THE VOTERS A QUESTION RELATING TO THE IMPOSITION OF A TRANSACTION AND USE TAX IN THE AMOUNT OF ONE-HALF OF ONE PERCENT WHEREAS, Section 1501 of the City Charter of the City of Culver City provides that the City Council may, at its discretion, call an election for any reason sanctioned by law at any time it deems necessary and that such election shall be known as a Special Municipal Election; and WHEREAS, the City Council has determined it wishes to submit to the voters at such Special Municipal Election a question relating to the establishment of a Transactions and Use Tax in the City of one-half of one percent (0.50%). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDERS AS FOLLOWS: SECTION 1. That pursuant to the requirements of the City Charter related to Special Municipal Elections, there is called and ordered to be held in the City of Culver City, California, on Tuesday, November 6, 2012, a Special Municipal Election. SECTION 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at said Special Municipal Election the following question related to establishment of a Transaction and Use Tax of one- half of one percent (0.50%): Option 1 3 -2- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Measure __________: To offset state budget cuts, preserve quality neighborhoods and ensure effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services, shall Culver City enact a half-cent sales tax, requiring independent financial audits, all funds used locally, and no money for Sacramento? YES _____ NO _____ SECTION 3. That the proposed complete text of the measure submitted to the voters is attached hereto as Exhibit “A.” SECTION 4. That the ballots to be used at the election shall be in form and content as required by law. SECTION 5. That the City Clerk is, directly or through consolidation with the County of Los Angeles (as such consolidation may be authorized by the City Council), authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 6. That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Elections Code § 10242, except as provided in § 14401 of the Elections Code of the State of California. SECTION 7. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding special municipal elections. 4 -3- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 8. That notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. SECTION 10. That pursuant to the City Charter, the City Clerk is empowered to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill. SECTION 11. That the City Clerk is directed to forward copies of all measures to be voted on at the Special Election to the City Attorney for the preparation of impartial analyses in compliance with applicable law. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 5 1|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 2012 - AN ORDINANCE OF THE CITY OF CULVER CITY IMPOSING A TRANSACTIONS AND USE TAX FOR ESSENTIAL CITY SERVICES TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION THE CITY OF CULVER CITY DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The following sections are hereby added to Chapter 3.08 the City of Culver City Municipal Code, to read as follows: “ESSENTIAL CITY SERVICES TRANSACTIONS AND USE TAX.” 3.08.300. TITLE. This ordinance shall be known as the City of Culver City Essential City Services Transactions and Use Tax Ordinance. The City of Culver City hereinafter shall be called "City." This Ordinance shall be applicable in the incorporated territory of the City. 3.08.305. OPERATIVE DATE. The Operative Date of this Ordinance shall be the first day of the first calendar quarter commencing more than 110 days after the adoption of this Ordinance by the voters, the date of such adoption being as set forth below. 3.08.310. 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 enhance the City of Culver City’s ability to offset state budget cuts and provide essential City services to the residents of Culver City, such as: preserving quality neighborhoods and ensuring effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services. Exhibit 'A' 6 2|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B. To ensure that the City has the financial means to provide for the well- being and security of its residents and businesses as the City and its economic base grows. C. 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 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. D. 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. E. 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. F. 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 7 3|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.315. 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. 3.08.320. 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 0.5% 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 tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.325. 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 its 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. 8 4|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3.08.330. 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 0.5% 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 tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.335. 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. 3.08.340. 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 9 5|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.345. 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. 3.08.350. 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 10 6|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 its 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 11 7|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 12 8|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 13 9|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.355. 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. 3.08.360. 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. 14 10|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3.08.365. 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. 3.08.370. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon its adoption by a majority vote of the qualified electors of the City voting in an election on the subject. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 15 -1- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION No. 2012- R_________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, CALLING FOR THE HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2012, FOR THE SUBMISSION TO THE VOTERS A QUESTION RELATING TO THE IMPOSITION OF A TRANSACTION AND USE TAX IN THE AMOUNT OF ONE-HALF OF ONE PERCENT EXPIRING IN FIVE YEARS WHEREAS, Section 1501 of the City Charter of the City of Culver City provides that the City Council may, at its discretion, call an election for any reason sanctioned by law at any time it deems necessary and that such election shall be known as a Special Municipal Election; and WHEREAS, the City Council has determined it wishes to submit to the voters at such Special Municipal Election a question relating to the establishment of a Transactions and Use Tax in the City of one-half of one percent (0.50%) which shall expire in five years. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDERS AS FOLLOWS: SECTION 1. That pursuant to the requirements of the City Charter related to Special Municipal Elections, there is called and ordered to be held in the City of Culver City, California, on Tuesday, November 6, 2012, a Special Municipal Election. SECTION 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at said Special Municipal Election the following question related to establishment of a Transaction and Use Tax of one- half of one percent (0.50%) which shall expire in five years: Option 2 16 -2- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Measure __________: To offset state budget cuts, preserve quality neighborhoods and ensure effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services, shall Culver City enact a half-cent sales tax, automatically expiring after five years, requiring independent financial audits, all funds used locally, and no money for Sacramento? YES _____ NO _____ SECTION 3. That the proposed complete text of the measure submitted to the voters is attached hereto as Exhibit “A.” SECTION 4. That the ballots to be used at the election shall be in form and content as required by law. SECTION 5. That the City Clerk is, directly or through consolidation with the County of Los Angeles (as such consolidation may be authorized by the City Council), authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 6. That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Elections Code § 10242, except as provided in § 14401 of the Elections Code of the State of California. 17 -3- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 7. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding special municipal elections. SECTION 8. That notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. SECTION 10. That pursuant to the City Charter, the City Clerk is empowered to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill. SECTION 11. That the City Clerk is directed to forward copies of all measures to be voted on at the Special Election to the City Attorney for the preparation of impartial analyses in compliance with applicable law. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 18 1|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 2012 - AN ORDINANCE OF THE CITY OF CULVER CITY IMPOSING A TRANSACTIONS AND USE TAX FOR ESSENTIAL CITY SERVICES TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION THE CITY OF CULVER CITY DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The following sections are hereby added to Chapter 3.08 the City of Culver City Municipal Code, to read as follows: “ESSENTIAL CITY SERVICES TRANSACTIONS AND USE TAX.” 3.08.300. TITLE. This ordinance shall be known as the City of Culver City Essential City Services Transactions and Use Tax Ordinance. The City of Culver City hereinafter shall be called "City." This Ordinance shall be applicable in the incorporated territory of the City. 3.08.305. OPERATIVE DATE. The Operative Date of this Ordinance shall be the first day of the first calendar quarter commencing more than 110 days after the adoption of this Ordinance by the voters, the date of such adoption being as set forth below. 3.08.310. 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 enhance the City of Culver City’s ability to offset state budget cuts and provide essential City services to the residents of Culver City, such as: preserving quality neighborhoods and ensuring effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services; Exhibit 'A' 19 2|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B. To ensure that the City has the financial means to provide for the well- being and security of its residents and businesses as the City and its economic base grows. C. 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 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. D. 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. E. 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. F. 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 20 3|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.315. 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. 3.08.320. 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 0.5% 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 tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.325. 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 its 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. 21 4|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3.08.330. 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 0.5% 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 tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.335. 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. 3.08.340. 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 22 5|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.345. 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. 3.08.350. 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 23 6|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 its 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 24 7|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 25 8|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 26 9|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.355. 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. 3.08.360. 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. 27 10|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3.08.365. 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. 3.08.370. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon its adoption by a majority vote of the qualified electors of the City voting in an election on the subject. 3.08.375. TERMINATION DATE. The authority to levy the tax imposed by this ordinance shall expire March 31, 2018. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 28 -1- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION No. 2012- R_________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, CALLING FOR THE HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2012, FOR THE SUBMISSION TO THE VOTERS A QUESTION RELATING TO THE IMPOSITION OF A TRANSACTION AND USE TAX IN THE AMOUNT OF THREE- QUARTERS OF ONE PERCENT WHEREAS, Section 1501 of the City Charter of the City of Culver City provides that the City Council may, at its discretion, call an election for any reason sanctioned by law at any time it deems necessary and that such election shall be known as a Special Municipal Election; and WHEREAS, the City Council has determined it wishes to submit to the voters at such Special Municipal Election a question relating to the establishment of a Transactions and Use Tax in the City of three-quarters of one percent (0.75%). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDERS AS FOLLOWS: SECTION 1. That pursuant to the requirements of the City Charter related to Special Municipal Elections, there is called and ordered to be held in the City of Culver City, California, on Tuesday, November 6, 2012, a Special Municipal Election. SECTION 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at said Special Municipal Election the following question related to establishment of a Transaction and Use Tax of three-quarters of one percent (0.75%): Option 3 29 -2- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Measure __________: To offset state budget cuts, preserve quality neighborhoods and ensure effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services, shall Culver City enact a three-quarter-cent sales tax, requiring independent financial audits, all funds used locally, and no money for Sacramento? YES _____ NO _____ SECTION 3. That the proposed complete text of the measure submitted to the voters is attached hereto as Exhibit “A.” SECTION 4. That the ballots to be used at the election shall be in form and content as required by law. SECTION 5. That the City Clerk is, directly or through consolidation with the County of Los Angeles (as such consolidation may be authorized by the City Council), authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 6. That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Elections Code § 10242, except as provided in § 14401 of the Elections Code of the State of California. SECTION 7. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding special municipal elections. 30 -3- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 8. That notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. SECTION 10. That pursuant to the City Charter, the City Clerk is empowered to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill. SECTION 11. That the City Clerk is directed to forward copies of all measures to be voted on at the Special Election to the City Attorney for the preparation of impartial analyses in compliance with applicable law. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 31 1|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 2012 - AN ORDINANCE OF THE CITY OF CULVER CITY IMPOSING A TRANSACTIONS AND USE TAX FOR ESSENTIAL CITY SERVICES TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION THE CITY OF CULVER CITY DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The following sections are hereby added to Chapter 3.08 the City of Culver City Municipal Code, to read as follows: “ESSENTIAL CITY SERVICES TRANSACTIONS AND USE TAX.” 3.08.300. TITLE. This ordinance shall be known as the City of Culver City Essential City Services Transactions and Use Tax Ordinance. The City of Culver City hereinafter shall be called "City." This Ordinance shall be applicable in the incorporated territory of the City. 3.08.305. OPERATIVE DATE. The Operative Date of this Ordinance shall be the first day of the first calendar quarter commencing more than 110 days after the adoption of this Ordinance by the voters, the date of such adoption being as set forth below. 3.08.310. 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 enhance the City of Culver City’s ability to offset state budget cuts and provide essential City services to the residents of Culver City, such as: preserving quality neighborhoods and ensuring effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services. Exhibit 'A' 32 2|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B. To ensure that the City has the financial means to provide for the well- being and security of its residents and businesses as the City and its economic base grows. C. 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 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. D. 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. E. 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. F. 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 33 3|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.315. 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. 3.08.320. 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 0.75% 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 tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.325. 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 its 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. 34 4|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3.08.330. 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 0.75% 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 tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.335. 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. 3.08.340. 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 35 5|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.345. 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. 3.08.350. 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 36 6|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 its 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 37 7|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 38 8|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 39 9|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.355. 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. 3.08.360. 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. 40 10|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3.08.365. 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. 3.08.370. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon its adoption by a majority vote of the qualified electors of the City voting in an election on the subject. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 41 -1- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION No. 2012- R_________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, CALLING FOR THE HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2012, FOR THE SUBMISSION TO THE VOTERS A QUESTION RELATING TO THE IMPOSITION OF A TRANSACTION AND USE TAX IN THE AMOUNT OF THREE- QUARTERS OF ONE PERCENT EXPIRING IN FIVE YEARS WHEREAS, Section 1501 of the City Charter of the City of Culver City provides that the City Council may, at its discretion, call an election for any reason sanctioned by law at any time it deems necessary and that such election shall be known as a Special Municipal Election; and WHEREAS, the City Council has determined it wishes to submit to the voters at such Special Municipal Election a question relating to the establishment of a Transactions and Use Tax in the City of three-quarters of one percent (0.75%) which shall expire in five years. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDERS AS FOLLOWS: SECTION 1. That pursuant to the requirements of the City Charter related to Special Municipal Elections, there is called and ordered to be held in the City of Culver City, California, on Tuesday, November 6, 2012, a Special Municipal Election. SECTION 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at said Special Municipal Election the following question related to establishment of a Transaction and Use Tax of three-quarters of one percent (0.75%) which shall expire in five years: Option 4 42 -2- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Measure __________: To offset state budget cuts, preserve quality neighborhoods and ensure effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services, shall Culver City enact a three-quarter-cent sales tax, automatically expiring after five years, requiring independent financial audits, all funds used locally, and no money for Sacramento? YES _____ NO _____ SECTION 3. That the proposed complete text of the measure submitted to the voters is attached hereto as Exhibit “A.” SECTION 4. That the ballots to be used at the election shall be in form and content as required by law. SECTION 5. That the City Clerk is, directly or through consolidation with the County of Los Angeles (as such consolidation may be authorized by the City Council), authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 6. That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Elections Code § 10242, except as provided in § 14401 of the Elections Code of the State of California. 43 -3- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 7. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding special municipal elections. SECTION 8. That notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. SECTION 10. That pursuant to the City Charter, the City Clerk is empowered to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill. SECTION 11. That the City Clerk is directed to forward copies of all measures to be voted on at the Special Election to the City Attorney for the preparation of impartial analyses in compliance with applicable law. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 44 1|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 2012 - AN ORDINANCE OF THE CITY OF CULVER CITY IMPOSING A TRANSACTIONS AND USE TAX FOR ESSENTIAL CITY SERVICES TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION THE CITY OF CULVER CITY DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The following sections are hereby added to Chapter 3.08 the City of Culver City Municipal Code, to read as follows: “ESSENTIAL CITY SERVICES TRANSACTIONS AND USE TAX.” 3.08.300. TITLE. This ordinance shall be known as the City of Culver City Essential City Services Transactions and Use Tax Ordinance. The City of Culver City hereinafter shall be called "City." This Ordinance shall be applicable in the incorporated territory of the City. 3.08.305. OPERATIVE DATE. The Operative Date of this Ordinance shall be the first day of the first calendar quarter commencing more than 110 days after the adoption of this Ordinance by the voters, the date of such adoption being as set forth below. 3.08.310. 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 enhance the City of Culver City’s ability to offset state budget cuts and provide essential City services to the residents of Culver City, such as: preserving quality neighborhoods and ensuring effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services. Exhibit 'A' 45 2|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B. To ensure that the City has the financial means to provide for the well- being and security of its residents and businesses as the City and its economic base grows. C. 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 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. D. 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. E. 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. F. 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 46 3|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.315. 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. 3.08.320. 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 0.75% 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 tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.325. 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 its 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. 47 4|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3.08.330. 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 0.75% 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 tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.335. 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. 3.08.340. 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 48 5|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.345. 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. 3.08.350. 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 49 6|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 its 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 50 7|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 51 8|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 52 9|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.355. 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. 3.08.360. 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. 53 10|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3.08.365. 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. 3.08.370. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon its adoption by a majority vote of the qualified electors of the City voting in an election on the subject. 3.08.375. TERMINATION DATE. The authority to levy the tax imposed by this ordinance shall expire March 31, 2018. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 54 -1- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION No. 2012- R_________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, CALLING FOR THE HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2012, FOR THE SUBMISSION TO THE VOTERS A QUESTION RELATING TO THE IMPOSITION OF A TRANSACTION AND USE TAX IN THE AMOUNT OF THREE- QUARTERS OF ONE PERCENT WITH AN AUTOMATIC REDUCTION TO ONE-HALF OF ONE PERCENT AFTER FIVE YEARS WHEREAS, Section 1501 of the City Charter of the City of Culver City provides that the City Council may, at its discretion, call an election for any reason sanctioned by law at any time it deems necessary and that such election shall be known as a Special Municipal Election; and WHEREAS, the City Council has determined it wishes to submit to the voters at such Special Municipal Election a question relating to the establishment of a Transactions and Use Tax in the City of three-quarters of one percent (0.75%) with an automatic reduction to one-half of one percent (0.50%) after five years. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDERS AS FOLLOWS: SECTION 1. That pursuant to the requirements of the City Charter related to Special Municipal Elections, there is called and ordered to be held in the City of Culver City, California, on Tuesday, November 6, 2012, a Special Municipal Election. SECTION 2. That the City Council, pursuant to its right and authority, does order submitted to the voters at said Special Municipal Election the following question related to establishment of a Transaction and Use Tax of three-quarters of one percent (0.75%) with an automatic reduction to one-half of one percent (0.50%) after five years: Option 5 55 -2- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Measure __________: To offset state budget cuts, preserve quality neighborhoods and ensure effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services, shall Culver City enact a three-quarter cent sales tax, reduced to one-half cent after five years, requiring independent audits, all funds used locally, and nothing for Sacramento? YES _____ NO _____ SECTION 3. That the proposed complete text of the measure submitted to the voters is attached hereto as Exhibit “A.” SECTION 4. That the ballots to be used at the election shall be in form and content as required by law. SECTION 5. That the City Clerk is, directly or through consolidation with the County of Los Angeles (as such consolidation may be authorized by the City Council), authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment, and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 6. That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Elections Code § 10242, except as provided in § 14401 of the Elections Code of the State of California. 56 -3- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 7. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding special municipal elections. SECTION 8. That notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 9. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. SECTION 10. That pursuant to the City Charter, the City Clerk is empowered to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill. SECTION 11. That the City Clerk is directed to forward copies of all measures to be voted on at the Special Election to the City Attorney for the preparation of impartial analyses in compliance with applicable law. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 57 1|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 2012 - AN ORDINANCE OF THE CITY OF CULVER CITY IMPOSING A TRANSACTIONS AND USE TAX FOR ESSENTIAL CITY SERVICES TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION THE CITY OF CULVER CITY DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The following sections are hereby added to Chapter 3.08 the City of Culver City Municipal Code, to read as follows: “ESSENTIAL CITY SERVICES TRANSACTIONS AND USE TAX.” 3.08.300. TITLE. This ordinance shall be known as the City of Culver City Essential City Services Transactions and Use Tax Ordinance. The City of Culver City hereinafter shall be called "City." This Ordinance shall be applicable in the incorporated territory of the City. 3.08.305. OPERATIVE DATE. The Operative Date of this Ordinance shall be the first day of the first calendar quarter commencing more than 110 days after the adoption of this Ordinance by the voters, the date of such adoption being as set forth below. 3.08.310. 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 enhance the City of Culver City’s ability to offset state budget cuts and provide essential City services to the residents of Culver City, such as: preserving quality neighborhoods and ensuring effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services. Exhibit 'A' 58 2|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 B. To ensure that the City has the financial means to provide for the well- being and security of its residents and businesses as the City and its economic base grows. C. 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 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. D. 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. E. 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. F. 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 59 3|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.315. 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. 3.08.320. 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 0.75% 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. Such tax shall be imposed for the first five years following the effective date of the tax. The tax shall then be reduced and imposed at a rate of 0.50%. The tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.325. 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 its 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 60 4|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 3.08.330. 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 0.75% of the sales price of the property. Such tax shall be imposed for the first five years following the effective date of the tax. The tax shall then be reduced and imposed at a rate of 0.50%. 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 tax imposed herein is in addition to any other transactions tax imposed by the City, the County of Los Angeles, or the State of California. 3.08.335. 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. 3.08.340. 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; 61 5|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.345. 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. 62 6|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3.08.350. 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 its 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 63 7|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 64 8|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 65 9|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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. 3.08.355. 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. 3.08.360. 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 66 10|101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.08.365. 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. 3.08.370. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately upon its adoption by a majority vote of the qualified electors of the City voting in an election on the subject. PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 67 -1- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION No. 2012- R_________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO CONSOLIDATE A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2012, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE DATE PURSUANT TO §10403 OF THE ELECTIONS CODE. WHEREAS, the City Council of the City of Culver City called a Special Municipal Election to be held on November 6, 2012 for the purpose of submitting to the voters the question relating to the imposition of the City’s Transaction and Use Tax; and, WHEREAS, it is desirable that the special municipal election be consolidated with the statewide general 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 that the county election department of the County of Los Angeles canvass the returns of the Special Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, 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 election on Tuesday, November 6, 2012. SECTION 2. That a measure is to appear on the ballot as contained in Exhibit “A” hereof and summarized as follows: 68 -2- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Measure _____________: To offset state budget cuts, preserve quality neighborhoods and ensure effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services, shall Culver City enact a ____-cent sales tax (pursuant to terms & conditions selected by the City Council), requiring independent financial audits, all funds used locally, and no money for Sacramento? YES _____ NO _____ SECTION 3. That the county election department is authorized to canvass the returns of the Special Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. SECTION 4. That the Board of Supervisors is requested to issue instructions to the county election department to take any and all steps necessary for the holding of the consolidated election. SECTION 5. That the City of Culver City recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs upon presentation of a duly submitted and accurate bill. SECTION 6. That the City Clerk is authorized to file a certified copy of this resolution with the Board of Supervisors and the county election department of the County of Los Angeles. 69 -3- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 7. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions PASSED, APPROVED and ADOPTED ON ________________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 70 -1- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION No. 2012- R_________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CULVER CITY, CALIFORNIA, AUTHORIZING THE CITY COUNCIL OR CERTAIN COUNCIL MEMBERS TO SUBMIT ARGUMENTS REGARDING THE IMPOSITION OF A TRANSACTIONS AND USE TAX MEASURE ON THE BALLOT FOR THE NOVEMBER 6, 2012 SPECIAL MUNICIPAL ELECTION WHEREAS, a Special Municipal Election (“the Election”) is to be held in the City of Culver City on November 6, 2012, at which time there will be submitted to the voters the following question: Measure _______________: To offset state budget cuts, preserve quality neighborhoods and ensure effective 911 emergency response by retaining firefighters, police officers, and paramedics; fixing potholes/streets; maintaining parks, community centers, storm drains; continuing after school programs, senior services, graffiti removal, arts/cultural programs, and other general services, shall Culver City enact a ____-cent sales tax (pursuant to terms & conditions selected by the City Council), requiring independent financial audits, all funds used locally, and no money for Sacramento? YES _____ NO _____ NOW, THEREFORE, the City Council of the City of Culver City, California, DOES HEREBY RESOLVE, as follows: 1. That the City Council authorizes _______________ __________________________________________________________ to file (a) written argument(s) regarding the City measure as specified above, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and to change the argument until and including the date fixed 71 -2- |101010101010101010 10 10|11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 by the Elections Official after which no arguments for or against the City measure may be submitted to the Elections Official. 2. The arguments shall be filed with the Elections Official, signed, with the printed name(s) and signature(s) of the author(s) submitting it. The arguments shall be accompanied by the Form of Statement To Be Filed by Author(s) of Argument. APPROVED and ADOPTED this ___ day of ____________, 2012. ________________________ ANDREW WEISSMAN, MAYOR City of Culver City, California ATTEST APPROVED AS TO FORM ________________________ ________________________ MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney 72