League of Women Voters of California Education Fund
	Sonoma County, CA November 6, 2012 Election
	Measure Y Transactions and Use Tax City of Sebastopol Majority Approval Required Pass: 2,969 / 71.0% Yes votes ...... 1,210 / 29.0% No votes See Also: Index of all Measures

Arguments For Measure Y

Arguments Against Measure Y

Sebastopol is one of the most desirable places to live in all of California. To continue the quality of life we must maintain our infrastructure, particularly our streets and our public safety services. These are valuable assets which belong to, and are used by, all of us. Our ability to maintain these public assets has been seriously compromised by the State's continued taking of money from cities and counties. Most recently the State has taken $1,500,000.00 from the City in redevelopment funding. Simply put, there is not enough money coming in to keep our streets paved and our city services adequately staffed. Any property owner knows that to defer maintenance is a false economy which will cost far more in the long run for repairs and services. Our City staffing has already been cut to less than bare bones and emergency response times have already been jeopardized. Measure Y will increase the sales tax by one half of one percent. The additional tax will cost the average Sebastopol family less than $4.00 per month. The net tax revenue raised by Measure Y will generate approximately $1,000,000.00 per year to support vital City services and infrastructure. About 80% of this amount will be collected from people who live outside the City limits but still use the City's streets and services. The measure has a sunset clause that will require the voters to reapprove the measure in eight years. Please join us in voting to support our community and to invest in our common safety and well being. s/ Guy Wilson Mayor s/ Michael Kyes Vice Mayor s/ Kathleen Shaffer Council Person s/ Patrick Slayter Council Person Rebuttal to Arguments For We said in our original argument that Sebastopol's pension costs comprise 30% of total payroll. That number was provided by city officials. Those same city officials now inform us that the correct number is 24%. Both numbers exceed the level of 10% considered sustainable. Regardless which number is correct, our conclusion remains the same. Sebastopol's pension costs are excessive and unsustainable. They more than any other factor explain the erosion of city services. Residents expect local government to control costs before asking for more money. If we don't insist that local officials take reasonable steps to reform out of control pension costs, new taxes promoted as temporary will become permanent and the motivation to reform pensions will dissipate. Tax increases are a last resort. Residents should not be required to bail out cities until they implement the reforms necessary to get these costs under control. Vote no on Y. SONOMA COUNTY TAXPAYERS' ASSOCIATION s/ Dan Drummond, Executive Director s/ Jack Atkin, President

In cities all across California we've seen basic local government services erode as pension costs overwhelm cities' budgets. Some cities have declared bankruptcy and more are likely to do the same. Few are proposing higher taxes in order to maintain services. What's even more surprising is that we found no indication in the Sebastopol Council records, the Budget or the financial reports that the Sebastopol administration recognizes or acknowledges the problem presented by these excessive pension costs. The latest CaIPERS report shows that the city's annual pension contribution rates are 35% of payroll for police, 41% for fire and 15% for all other workers. Overall the City is paying over 30% of payroll for pension benefits alone. For perspective, Sonoma County is paying about 20% of payroll for pensions and that is considered unsustainable. The County's goal is to get that cost down to 10% of payroll in 10 years. In Sebastopol, safety workers can retire as early as age 50 and other workers at 55, well before the normal retirement age set by Social Security of 67. During a recession with real unemployment in California approaching 17.5%, everyone in our community has had to sacrifice. In these tough times everyone must pitch in. It's time for the City Council to ask the public employees' unions to do their fair share by reducing the unsustainable cost of pensions that are devouring the City's budget, instead of raising taxes first. We recommend a no vote. SONOMA COUNTY TAXPAYERS' ASSOCIATION s/ Dan Drummond, Executive Director s/ Jack Atkin, President Rebuttal to Arguments Against The Taxpayers Association is asking us to sacrifice our streets, our safety, and our emergency services based on their anti-government viewpoint which they attempt to support with highly inaccurate information. Our City employees are already required to contribute to their retirement benefits from their paychecks. The fact that Taxpayers Association didn't know that our employees have already made this and other concessions is remarkable. In their ballot argument, the Taxpayers Association indicates that police and fire personnel should share the general retirement age of 67 to save pension costs. Do you want a 66 year-old rescuing you from a burning building or chasing criminals? They will undoubtedly claim that they were not given enough time to do their research. Our tax initiative has been discussed for months, the City's financial condition for the last decade. If they really cared about Sebastopol, they had ample opportunity to comment and to understand the issues. What the Taxpayers Association hasn't addressed is the root problem of the City's finances: the State's take-away of local funds, most recently the Redevelopment Agency, or that the National economy has crashed. The reason for this crash is well known: the prior administration's complete lack of oversight and regulation of the banking, insurance, and mortgage industries. Added to this is a war in Iraq which burned up a trillion dollars of taxpayers' money. The Taxpayers Association should focus on real problems. Vote yes on Measure Y. s/ Sarah Glade Gurney Council Member s/ Michael Kyes Vice Mayor

Full Text of Measure Y

Section 1. TITLE. This ordinance shall be known as the "INCREASE IN THE SEBASTOPOL COMMUNITY TRANSACTIONS AND USE TAX." The City of Sebastopol hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City, which territory shall be referred to here in as "City." Section 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. Section 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 an increase in the 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 (general tax) 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 an increased retail transactions and use tax ordinance that in- corporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt an increased retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt an increased 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. Section 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. Section 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 one half of one percent 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. Section 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. Section 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 one half of one percent 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. Section 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. Section 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: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. Section 10. 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. Section 11. EXEMPTIONS AND EXCLUSIONS. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. Section 12. 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. Section 13. 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. Section 14. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. Section 15. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately. Section16. STATUTORY AUTHORITY FOR TAX. This ordinance is adopted pursuant to Revenue and Taxation Code 7285.90. Section 17. ELECTION REQUIRED. This ordinance shall not become operative unless and until a majority of the electors voting on the measure vote to approve the imposition of the tax at the general election to be held November 6, 2012. Section 18. TERMINATION DATE. The authority to levy the tax imposed by this ordinance shall expire on the eighth (8th) anniversary of the Operative Date, unless extended by a majority vote of the voters of the City. THE FOREGOING ORDINANCE was adopted by Declaration of the vote of the Sebastopol City Council on the 4th day of December, 2012, at a regular meeting of the Sebastopol City Council by the following vote, to wit: City of Sebastopol City Council: Ayes: Noes: Abstain: Absent: APPROVED:_____________________ Mayor ATTEST:________________________ City Clerk APPROVED AS TO FORM __________________________________________ City Attorney Approved/Not Approved by the Voters of the City of Sebastopol at the November 6, 2012 Election I f the majority of the qualified electors voting on the initiative measure shall vote in favor thereof, the initiative measure shall become a valid and binding ordinance of the City of Sebastopol and shall be considered adopted upon the date that the vote is declared by the City Council of said City.