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Essential Services Measure
City of Concord
Transactions and Use Tax - Majority Approval Required
Pass: 19291 / 77.21% Yes votes ...... 5694 / 22.79% No votes
Index of all Measures
|Results as of Dec 28 11:39am, 100.0% of Precincts Reporting (66/66)|
|Information shown below: Impartial Analysis | Arguments | Full Text|
To continue funding that cannot be taken by the State to protect/maintain Concord's city services, including 911 response, police officers, gang prevention, crime investigation, neighborhood police patrols, city street/pothole repair, senior/youth programs, other city services, shall the City of Concord extend the existing voter-approved ½ cent sales tax for 9 years only, without increasing the current tax rate, including annual audits, independent citizens oversight, and no money for Sacramento?
Currently, the tax on retail sales in Concord is 9.00% of the purchase price. The City receives 1.25% of the sales tax. The remainder goes to the State (6.50%), Contra Costa County (0.25%), the Contra Costa Transportation Authority (0.50%), and BART (0.50%).
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 funds to the State Board of Equalization, which administers the tax.
This measure would authorize the continuance of a half cent (0.50%) transactions and use tax for an additional nine years, but would not increase the total 9.0% sales tax that is currently assessed in Concord. Of that 9.0% amount, 1.25% would be deposited in the City's general fund and would 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 purpose, it is classified as a "general tax," and not a "special tax." The tax proceeds may be used for any valid governmental purposes, including but not limited to neighborhood police patrols, 911 response, gang prevention programs, street maintenance and pothole repairs, senior services, and youth sports/recreation programs. The State would be restricted from using the half cent (0.50%) sales tax pursuant to Proposition 1A, adopted by California voters in 2004.
The tax extension authorized by this measure would automatically terminate nine years after it becomes operative, unless terminated earlier by a unanimous vote of the City Council. Upon termination, the total sales tax rate in Concord would be 8.5%.
This measure requires the City's independent auditors to prepare a publicly available report on the collection, management and expenditure of revenue from the tax. Additionally, it requires the City Council to appoint an oversight committee consisting of at least five members of the public to review and report on the receipt of revenue and expenditures of funds from the tax. The committee's report and recommendations are a public record and must be considered by the Council at a public meeting as part of the annual budget process.
A "Yes" vote is a vote in favor of the sales tax extension. A "No" vote is a vote against the sales tax extension. The measure will be approved if it receives a simple majority of "Yes" votes.
Dated: August 14, 2014
Mark S. Coon,
News and Analysis|
|Arguments For Measure Q||Arguments Against Measure Q|
|Vote YES on Q + Protect our community services, without raising tax
YES on Q does not create a new tax. It simply continues an existing, voter-approved local sales tax that the City has relied on since 2010 -- at the same tax rate. This essential funding has helped Concord stay solvent, maintain services and rebuild its emergency reserves.
Sacramento politicians have taken nearly $80 Million from our City over the past 20 years! Concord needs locally-controlled funds for our projects and services, with money that can't be taken by the State.
YES on Q WON'T raise your tax rates
YES on Q maintains 911 Emergency Response and Neighborhood Police Patrols
YES on Q maintains Gang Prevention and Crime Investigation Services
YES on Q maintains City Streets and Pothole Repair
YES on Q maintains senior services and youth and teen programs
All Measure Q money must be spent on our LOCAL services and Sacramento can't touch it! YES on Q protects these essential city services by maintaining Concord's financial stability and viability, with local funding that cannot be taken for Sacramento agendas.
YES on Q maintains Concord's after-school programs, anti-gang activities, and recreation programs that keep our youth and teens off the streets, out of trouble and away from drugs and gangs.
YES on Q includes strong fiscal accountability, with Citizens' Oversight, mandatory annual financial audits and yearly reports to the community to monitor spending--guaranteeing funds are spent responsibly and as promised. By law, it is required to expire in 9 years unless extended by voters.
Join a unanimous Mayor and City Council, police officers, firefighters, local business owners, and community leaders in voting YES on Q to protect and maintain Concord's high-quality services without raising taxes. For factual information, visit http://www.ci.concord.ca.us/fiscalhealth.
Concord Police Association, Adam Hart, President
Diane Lorenzetti, Concord Seniors
Tim Grayson, Mayor
Guy Bjerke, Chair, Citizens' Oversight Committee
Beri Kasper, CPA, Concord Business Owner
|Full Text of Measure Q|
|ORDINANCE NO. 14-8
AN ORDINANCE AMENDING CONCORD MUNICIPAL CODE TITLE 3 (REVENUE AND FINANCE), CHAPTER 3.15 (TAXATION), ARTICLE V (TRANSACTIONS AND USE TAX) BY EXTENDING AN EXISTING VOTER-APPROVED TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION
WHEREAS, by law, all funds from a Measure Q Continuation Measure must stay in Concord to maintain local services and no funds can be taken by Sacramento; and
WHEREAS, the Measure Q Continuation Measure requires independent Citizens' Oversight, mandatory financial audits, and yearly reports to the community to ensure the funds are spent as promised; and
WHEREAS, if this Continuation is adopted, there is no increase in the sales tax Concord residents currently pay; and
WHEREAS, if the Measure is approved, police patrols and gang prevention services, park and recreation programs, and street and pothole repair efforts will be maintained; and
WHEREAS, continued funding from this Measure will maintain after-school programs, anti-gang activities, and recreation programs that keep youth and teens off the streets, out of trouble and away from drugs and gangs; and
WHEREAS, the City wishes to continue to address service priorities that the public has identified as being important to them, such as 911 emergency response times, neighborhood police patrols, police officers, gang prevention and crime investigation services, city street and pothole repair, senior services and nutrition programs, and youth and teen programs; and
WHEREAS, in November 2010, the voters of Concord adopted a local revenue measure ("Measure Q"), to mitigate cuts to local services caused by State takeaways and the Great Recession; and
WHEREAS, Measure Q established a general transactions and use tax ("sales tax") of one-half of one percent (0.5%), which is codified at Title 3 (Revenue and Finance), Chapter 3.15 (Taxation) Article V (Transactions and Use Tax), Sections 3.15.360 through 3.15.500 of the Concord Municipal Code; and
WHEREAS, the revenues raised by Measure Q have helped the City stay solvent during the period since it was adopted; however, Measure Q is scheduled to expire; and
WHEREAS, the City's 10-Year Financial Forecast estimates that if Measure Q expires, commencing in Fiscal Year 2016-17, $4 million in annual budget reductions will be required to address the decline in City revenues currently received from Measure Q, which in turn will require the City to make severe cuts to the services it currently provides, adversely affecting public safety services including 9-1-1 emergency response times, police officers, gang prevention and crime investigation services, and neighborhood police patrols, along with other City services, such as road maintenance, youth sports and recreation programs, city parks and playgrounds, and senior services and the Senior Center; and
WHEREAS, all funds from a local revenue measure must stay in Concord to maintain local services and cannot be taken by the State; and
WHEREAS, a local revenue measure ensures fiscal accountability by requiring independent citizens oversight, mandatory financial audits, and yearly reports to the community; and
WHEREAS, at its June 24, 2014 meeting, the City Council adopted a budget for FY 2014-15 that recognized the need for additional revenue to maintain and preserve the level of services desired by residents of the City; and
WHEREAS, at a public hearing on July 29, 2014, the Council considered placing a measure on the ballot for the November 4, 2014 General Election seek voter approval of an extension of Measure Q; and
WHEREAS, after that hearing, the City Council concluded that all of the information presented indicated that, to maintain the revenue necessary to preserve existing service levels, the Council should ask the voters of the City to approve a 9-year extension of Measure Q, continuing the current assessment of a local transactions and use tax, the revenue from which could be used to support general municipal services; and
WHEREAS, on the basis of the foregoing, the City Council, by adopting Resolution 14-62, determined that it was appropriate to place a measure before the voters at the November 4, 2014 general election regarding a 9 year extension of the general transactions and use (sales) tax originally authorized by Measure Q; and
WHEREAS, the tax, if approved, would continue to be imposed on the sale of tangible personal property and the storage, use, or other consumption of such property. The tax rate would continue to be one-half of one percent (0.5%) (a half cent for each dollar) of the sales price of the property. The tax revenue would continue to be collected by the State Board of Equalization and remitted to the City. The tax extension would be in effect for 9 years, and would then expire automatically. The tax shall be approved if the measure receives at least a simple majority of affirmative votes (50% plus 1 vote).
THE CITY COUNCIL OF THE CITY OF CONCORD RECOGNIZES THE DESIRE OF THE PEOPLE OF THE CITY OF CONCORD AND DOES ORDAIN AS FOLLOWS:
Section 1. The People of Concord find that all Recitals are true and correct and are incorporated herein by reference.
Section 2. Concord Municipal Code Title 3 (Revenue and Finance) Chapter 3.15 (Taxation) Article V (Transactions and Use Tax), is hereby amended by the italicized language:
3.15.360 Title. This ordinance shall be known as the Concord Transactions and Use Tax Ordinance. The City of Concord hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.
3.15.370 Operative date. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance.
3.15.380 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 pt. 1.6 (commencing with § 7251) of div. 2 of the Revenue and Taxation Code and § 7285.9 of pt. 1.7 of div. 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 pt. 1.6 of div. 2 of the Revenue and Taxation Code. (c) To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the 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 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 pt. 1.6 of div. 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.
3.15.390 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.
3.15.400 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 (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.
3.15.410 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.
3.15.420 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 (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.
3.15.430 Adoption of provisions of State law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of pt. 1.6 of div. 2 of the Revenue and Taxation Code, all of the provisions of pt. 1 (commencing with § 6001) of div. 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.
3.15.440 Limitations on adoption of State law and collection of use taxes. In adopting the provisions of pt. 1 of div. 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 thereof. 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 pt. 1 of div. 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 §§ 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 § 6203 and in the definition of that phrase in § 6203.
3.15.450 Permit not required. If a seller's permit has been issued to a retailer under § 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance.
3.15.460 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 1.05 (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 §§ 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 1.05 (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 pt. 1.6 of div. 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.
3.15.470 Amendments. All amendments subsequent to the effective date of this ordinance to pt. 1 of div. 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with pt. 1.6 and pt. 1.7 of div. 2 of the Revenue and Taxation Code, and all amendments to pt. 1.6 and pt. 1.7 of div. 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.
3.15.480 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 pt. 1.6 of div. 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
3.15.490 Annual audit; citizens' oversight. By no later than December 31st of each year after the operative date, the city's independent auditors shall complete a report reviewing the collection, management and expenditure of revenue from the tax levied by this Article. Additionally, there shall be a committee consisting of no fewer than five members of the public to review and report on the receipt of revenue and expenditure of funds from the tax authorized by this Article. The committee members shall be either Concord residents or representatives of Concord businesses. Prior to the operative date, the City Council shall adopt a resolution establishing the composition of the committee, setting the terms of office of the committee members, and defining the scope of the committee's responsibilities, which at a minimum shall include reviewing the annual auditor's report and making recommendations to the City Council for use of the tax revenue. The committee's report and recommendations shall be completed by a date to allow for it to be considered as part of the annual budget process. The committee's report and recommendations shall be a matter of public record and shall be considered by the City Council at a public meeting. Also prior to the operative date, the City Council shall appoint at least a quorum of the members of the committee; and the Council shall complete the appointment of members of the committee by the end of fiscal year 2011.
3.15.500 Termination date. The authority to levy the tax imposed by this ordinance shall expire on the fourteenth anniversary of the last day of the calendar quarter preceding the operative date, unless terminated earlier by a unanimous vote of the City Council. 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. 14-62 calling for an election on this Ordinance. The CEQA findings in Resolution No. 14-62 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, it shall be severable and 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 collecting of the City transactions and use taxes. The City Council, by a two-thirds vote of the Council by adopting Resolution 14-62, approved submission of this Ordinance to the voters at an election to be held on November 4, 2014. Upon approval by a majority of the voters of the city, and upon adoption of a resolution declaring the election results, the Mayor shall hereby be authorized to attest to the adoption of this Ordinance by the voters of the City by signing where indicated below.
Timothy S. Grayson Mayor
ATTEST: Mary Rae Lehman City Clerk
APPROVED AS TO FORM: Mark S. Coon City Attorney
Ordinance No. 14-8 was submitted to the People of the City of Concord at the November 4, 2014, general municipal election. It was approved by the following vote of the People:
Ordinance No. 14-8 was thereby adopted by of the voters at the November 4, 2014, election and took effect immediately. A resolution declaring the results of the election was adopted at a regular joint meeting of the City Council held on [month, day, year], by the following vote:
AYES: Councilmembers -
NOES: Councilmembers -
ABSTAIN: Councilmembers -
ABSENT: Councilmembers +
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 Concord, California.
Mary Rae Lehman, CMC