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Transactions and Use Tax
City of Albany
Ordinance - Majority Approval Required
Pass: 6237 / 79.88% Yes votes ...... 1571 / 20.12% No votes
Index of all Measures
|Results as of Feb 1 2:01pm, 100.00% of Precincts Reporting (13/13)|
|Information shown below: Impartial Analysis | Arguments | Full Text|
To maintain and provide city services and facilities, including:
Technically, the existing "sales tax" is a combination of "sales and use tax" and "transactions and use tax." Both are levied on the sale or use of tangible personal property sold at retail, with certain limited exceptions. Retailers collect the tax at the time of sale and remit the funds to the State Board of Equalization, which administers the tax.
Currently, the tax on retail sales in Albany is 8.75% of the purchase price. This measure would authorize a 0.50% transactions and use tax, which would increase the total sales tax rate to 9.25%. The tax would automatically terminate eight years after it becomes operative, unless extended by the voters.
The tax proceeds would be deposited into the City's general fund and be available to support the full range of municipal services. Because this measure does not legally restrict the use of tax revenue to any specific purposes, it is classified as a "general tax," not a "special tax." The tax proceeds may be used for any valid municipal governmental purpose and cannot legally be taken away by the State.
This measure requires the City's independent auditors to prepare an annual audit report reviewing the collection, management, and expenditure of revenue from the tax. The audit report will be a matter of public record.
A "Yes" vote is a vote in favor of the tax. A "No" vote is a vote against the tax. This measure will be approved if it receives a simple majority of "Yes" votes.
--Craig Labadie, City Attorney August 10, 2012
League of Women Voters
|Arguments For Measure F|
The City of Albany has worked hard to maintain fiscal stability, and has avoided the dire fiscal consequences other cities have faced. Early in the recession, Council and Staff instituted many belt-tightening steps. However, the deep and long economic recession has resulted in reduced financial resources available to local governments from State and Federal sources.
Staff and community workshops have generated ideas used to restructure many operations, reduce costs, and make budget cuts. Cutting the number of employees, reducing compensation, sharing staff with other cities, and stretching dollars have already occurred.
Nevertheless, it is clear the City has reached capacity limitations that will cause it to fall short in meeting existing requirements and expectations: for example, falling behind in maintaining safe public facilities, keeping pace with mandates, safety concerns, technology updates, and filling positions that have remained empty for several years. These limitations compromise the quality of life and services that the Albany community receives.
While Albany has been very successful in obtaining grants, local matching funds are needed but are in short supply. Moreover, grants generally fund capital projects rather than the services of critical importance to the community.
The City of Albany has seen revenues flatten and decline as much as $1,000,000 from some funding sources--or 6% of the budget--over the past several years. Because of current limitations and loss of revenue, the City Council is recommending voters approve a 1/2 cent sales tax that would expire after eight years.
With your support of this measure, Albany can continue to maintain and provide city services and facilities, including: Fire and Police protection, safety, and emergency response; recreational programs, parks, playgrounds, and open space; senior and youth programs and facilities; community development and environmental preservation; and other general city services.
We urge a YES vote on Measure F.
Farid Javandel, Albany Mayor; Marge Atkinson, Albany Vice Mayor; Jonathan Knight, Albany School Board Vice-President; Stephanie Sala, Small Business Owner; Jewel Okawachi, Former Albany Mayor
(No arguments against Measure F were submitted)
|Full Text of Measure F|
|ORDINANCE NO. 2012-03
AN ORDINANCE OF THE CITY OF ALBANY IMPOSING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION
WHEREAS, since 2009, the City of Albany has seen its revenues flatten and decline, notably the annual real property transfer tax revenue, which has declined by approximately $1 million over the course of the past several years; and
WHEREAS, the City Council and City staff have restructured City operations, reduced costs, and made budget cuts to adapt to diminishing financial resources; and
WHEREAS, the City currently has held vacant police officer and public safety dispatcher positions as well as not filling, restructuring, or eliminating positions in recreation programming, public works, planning and administration; and
WHEREAS, to reduce expenses the City is sharing a Fire Chief with the City of Piedmont and an Information Technology Manager with the City of Emeryville; and
WHEREAS, take-home pay for most City employees has dropped by four percent or more in the past year, all employees in a pension program will have to pay the full costs for the employee share of pension costs, and new employees will receive lower pension benefits; and
WHEREAS, in 2011 the City conducted staff and community workshops to generate ideas for reducing costs or increasing revenues, then incorporated short-term ideas into the 2011-12 budget and reviewed medium to long-range ideas at a City Council meeting on November 21, 2011; and
WHEREAS, the City has worked hard to maintain stability in the midst of the economic turmoil that has reduced financial resources available to local governments throughout the State and country; and
WHEREAS, at meetings in April 2012, the City Council received a staff report documenting the capacity limitations which are causing the City to fall short in meeting existing requirements and expectations and to fall behind in maintaining safe public facilities and keeping pace with mandates, safety concerns, and changing demographics and technology; and
WHEREAS, on the basis of the foregoing, the City Council has determined that the best option available to the City for addressing these concerns is to request voter approval for a Transactions and Use (Sales) Tax at the rate of one-half of one percent (.5%) to remain in effect for a period of eight years; and
WHEREAS, the tax, if approved, would be imposed on the sale of tangible personal property and the storage, use, or other consumption of such property and the tax revenue would be collected by the State Board of Equalization and remitted to the City; and
WHEREAS, the proposed transactions and use tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a committed to any particular purposes; and the specific purposes recited in the ballot measure are for illustration only and not a restriction or limitation on the use of tax proceeds; and the measure shall be approved if it receives at least a simple majority of affirmative votes.
NOW THEREFORE, THE PEOPLE OF THE CITY OF ALBANY DO ORDAIN AS FOLLOWS:
Section 1. Article 4-12 is hereby added to Chapter IV of the Albany Municipal Code, to read as follows:
4-12 TRANSACTIONS AND USE TAX
4-12.1 TITLE. This ordinance shall be known as the City of Albany Transactions and Use Tax Ordinance. The City of Albany hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.
4-12.2 OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.
4-12.3 PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
D. 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.
E. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.
4-12.4 CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
4-12.5 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.
4-12.6. PLACE OF SALE. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization.
4-12.7 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.
4-12.8 ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.
4-12.9. 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:
Section 2. The People of the City of Albany find that all Recitals contained in this Ordinance are true and correct and are incorporated herein by reference.
Section 3. The findings for this ordinance in compliance with the California Environmental Quality Act ("CEQA") are the same as those set forth in the City's Resolution No. 2012-42 calling for an election on this Ordinance. The CEQA findings set forth in Resolution No. 2012-42 are incorporated herein by reference.
Section 4. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
Section 5. This Ordinance relates to the levying and collection of the City Transactions and Use Taxes and shall take effect immediately.
Ordinance No. 2012-03 was submitted to the People of the City of Albany at the November 6, 2012 general municipal election. It was approved by the following vote of the People:
Ordinance No. 2012-03 was thereby adopted by the voters at the November 6, 2012 election and took effect upon adoption of a resolution declaring the results of the election at a regular meeting of the City Council held on ______________, 2012, by the following vote:
I HEREBY CERTIFY that the foregoing is a true and correct copy of an ordinance duly and regularly adopted by the People of the City of Albany, California.
Nicole Almaguer, City Clerk