HomeMy WebLinkAboutResolution 24-069 2024-06-04
RESOLUTION 24-069
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES
CALLING FOR THE PLACEMENT OF A GENERAL TAX MEASURE ON THE BALLOT FOR THE
NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED
VOTERS OF AN ORDINANCE TO EXTEND THE TERM OF A GENERAL TRANSACTIONS AND USE TAX
(SALES TAX) AT THE RATE OF ONE-HALF CENT (1/2¢)
WHEREAS, the City of El Paso de Robles (“City”) is authorized to levy a Transactions and Use
Tax (“sales tax”) for general purposes pursuant to California Revenue and Taxation Code section
7285.9, subject to approval by a majority vote of the electorate pursuant to Article XIIIC, section 2 of
the California Constitution (“Proposition 218”); and
WHEREAS, the City currently levies for general purposes a voter-approved sales tax of ½ cent
on (1/2¢) on the sale and/or use of all tangible personal property sold at retail in the City, as more
specifically set forth in current Chapter 3.10 of the City’s Municipal Code; and
WHEREAS, the current sales tax has a sunset of 12 years from the operative date of the
tax, which is March 31, 2025; and
WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority
to place local measures on the ballot to be considered at a Municipal Election; and
WHEREAS, the City Council would like to submit to the voters at the November 5, 2024
General Municipal Election a measure extending the term of the current one-half cent (1/2¢) sales
tax to remove the 12-year sunset, with the tax remaining operative until it is repealed by voters, as
more specifically set forth in the attached proposed ordinance amending Chapter 3.10 of the City’s
Municipal Code; and
WHEREAS, the proposed sales tax is a general tax, the revenue of which will be placed in the
City’s general fund and will be used to pay for general City services; and
WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition
218, an amendment to the State Constitution which requires that all general taxes which are
imposed, extended or increased must be submitted to the electorate and approved by a majority
vote of the qualified electors voting in the election; and
WHEREAS, pursuant to Proposition 218 (California Constitution, Article XIIIC, section 2(b)),
the general rule is that any local election for the approval of an increase to a general tax must be
consolidated with a regularly scheduled general election for members of the governing body of the
local government; and
WHEREAS, the next regularly scheduled general election at which City Council members will
be elected is November 5, 2024; and
WHEREAS, pursuant to Revenue and Taxation Code section 7285.9, a two-thirds (2/3) vote
of all members of the City Council is required to place the Measure on the November 5, 2024 ballot;
CC Resolution 24-069 Page 1 of 13
and
WHEREAS, the ordinance to be considered by the qualified voters and the terms of approval,
collection and use of the general sales tax are described and provided for in the ordinance/measure
attached hereto as Exhibit “A” (the “Measure”) and by this reference made an operative part hereof,
in accordance with all applicable laws.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL PASO DE
ROBLES:
SECTION 1. Incorporation of Recitals. The foregoing recitals are true and correct and are
hereby incorporated and made an operative part of this Resolution.
SECTION 2. Submission of Ballot Measure. Pursuant to California Elections Code section
9222, Government Code section 53724, Revenue and Taxation Code section 7285.9 and any other
applicable requirements of the laws of the State of California relating to the City, the City Council,
by a two-thirds (2/3) vote of all members, hereby orders the Measure to be submitted to the
voters of the City at the General Municipal Election to be held on Tuesday, November 5, 2024.
SECTION 3. The City Council, pursuant to California Elections Code section 9222, hereby
orders that the ballot question for the Measure shall be presented and printed upon the ballot
submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot
to be submitted to the qualified voters at the General Municipal Election to be held on Tuesday,
November 5, 2024, in addition to any other matters required by law, there shall be printed
substantially the following ballot question:
PASO ROBLES LOCAL SERVICES FUNDING CONTINUATION MEASURE.
Shall the measure to extend the existing voter-approved ½¢ sales tax for
general government use including to improve Paso Robles’ long-term
finances, maintain important services such as fixing damaged
streets/roads/infrastructure, repairing potholes, synchronizing traffic
signals, maintaining traffic/pedestrian safety, and improving emergency
evacuation routes, providing approximately $5,500,000 annually until
ended by voters, requiring audits, citizen oversight, public disclosure of
all spending, all funds for Paso Robles, be adopted?
YES
NO
SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and directed to
procure and furnish any and all official ballots, printed matter and all supplies, equipment and
paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all
particulars not recited in this Resolution, the election shall be held and conducted as provided by
law for holding municipal elections.
SECTION 5. Pursuant to Elections Code section 9280, the City Council hereby directs the
City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare
an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the
Measure on the existing law and the operation of the Measure, and transmit such impartial
CC Resolution 24-069 Page 2 of 13
analysis to the City Clerk not later than the deadline for submittal of primary arguments for or
against the Measure.
The impartial analysis shall include a statement indicating whether the Measure was
placed on the ballot by a petition signed by the requisite number of voters or by the City Council.
In the event the entire text of the Measure is not printed on the ballot, nor in the voter
information guide, there shall be printed immediately below the impartial analysis, in no less than
10-font bold type, the following: “The above statement is an impartial analysis of Ordinance or
Measure _____. If you desire a copy of the ordinance or measure, please call the Office of the
City Clerk at (805) 237-3960 and a copy will be mailed at no cost to you.”
SECTION 6. Notice of 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 7. Placement on the Ballot. The full text of the Measure shall not be printed
in the voter information guide, and a statement shall be printed on the ballot pursuant to Elections
Code section 9223 advising voters that they may obtain a copy of this Resolution and the Measure,
at no cost, upon request made to the City Clerk.
SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the
General Municipal Election to be held on Tuesday, November 5, 2024, file with the Board of
Supervisors and the Registrar of Voters of the County of San Luis Obispo, State of California, a certified
copy of this Resolution.
SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this Measure will
be available for public examination for no fewer than ten (10) calendar days prior to being submitted
for printing in the voter information guide. The City Clerk shall post notice in the Clerk’s office of the
specific dates that the examination period will run.
SECTION 10. The City Council hereby finds and determines that the Measure relates to
organizational or administrative activities of governments that will not result in direct or indirect
physical changes in the environment, and therefore is not a project within the meaning of the
California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).
SECTION 11. Severability. The provisions of this Resolution are severable and if any
provision of this Resolution is held invalid, that provision shall be severed from the Resolution
and the remainder of this Resolution shall continue in full force and effect, and not be affected
by such invalidity.
SECTION 12. This Resolution shall become effective upon its adoption.
SECTION 13. The City Clerk shall certify to the adoption of this Resolution.
CC Resolution 24-069 Page 3 of 13
Exhibit “A”
Transactions and Use Tax Ordinance
[attached behind this page]
CC Resolution 24-069 Page 5 of 13
Exhibit A
ORDINANCE NO. XXXX
AN ORDINANCE OF THE PEOPLE OF THE CITY OF EL PASO DE ROBLES, CALIFORNIA,
AMENDING CHAPTER 3.10 OF TITLE 3 OF THE EL PASO DE ROBLES MUNICIPAL CODE TO EXTEND THE
TERM OF A GENERAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF ONE-HALF CENT
(1/2¢); TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, pursuant to California Revenue and Taxation Code section 7285.9 the City of El Paso de
Robles (“City”) is authorized to levy a Transactions and Use Tax for general purposes, subject to majority
voter approval; and
WHEREAS, the People of the City desire to amend Chapter 3.10 of Title 3 of the El Paso de Robles
Municipal Code to extend the term of a general Transactions and Use Tax (“sales tax”) until ended by
voters, on the sale and/or use of all tangible personal property sold at retail in the City, at a rate of one-
half (1/2%).
NOW, THEREFORE, THE PEOPLE OF THE CITY OF EL PASO DE ROBLES DO HEREBY ORDAIN AS
FOLLOWS:
Section 1. Title and Text. This Ordinance shall be known as the “General Transactions and Use
Tax”, the full text of which is set forth in Attachment “1”, attached hereto and incorporated herein by
reference.
Section 2. Approval by the City Council. Pursuant to California Government Code section 53724 and
Revenue and Taxation Code section 7285.9, this Ordinance was duly approved for placement on the ballot
by a minimum two-thirds (2/3) supermajority of all members of the City Council on May 28, 2024.
Section 3. Approval by the Voters. Pursuant to California Elections Code section 9217, this Ordinance
shall be deemed adopted and take effect only if approved by a majority of the eligible voters of the City
of El Paso de Robles voting at the General Municipal Election of November 5, 2024. It shall be deemed
adopted when the City Council has certified the results of that election by resolution and shall take effect
ten (10) days thereafter.
Section 4. Operative Date. “Operative Date” for the Transactions and Use Tax means the first day
of the first calendar quarter commencing more than 110 days after the date this Ordinance is adopted, as
set forth in Section 3 above.
Section 5. 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.
CC Resolution 24-069 Page 6 of 13
Exhibit A
I hereby certify that the El Paso de Robles General Transactions and Use Tax Ordinance was PASSED,
APPROVED, AND ADOPTED by the People of the City of El Paso de Robles on the 5th day of November, 2024.
__________________________________
John R. Hamon, Jr., Mayor
ATTEST:
_________________________________
Melissa Boyer, City Clerk
APPROVED AS TO FORM:
_________________________________
Elizabeth Hull, City Attorney
CC Resolution 24-069 Page 7 of 13
Exhibit A
ATTACHMENT 1
Chapter 3.10 – GENERAL TRANSACTIONS AND USE TAX
Sections:
3.10.010 – Short Title.
3.10.020 - Purpose.
3.10.030 - Contract With State.
3.10.040 - Transactions Tax Rate.
3.10.050 - Place of Sale.
3.10.060 - Use Tax Rate.
3.10.070 - Adoption of Provisions of State Law.
3.10.080 - Limitations on Adoption of State Law and Collection of Use Taxes.
3.10.090 - Permit Not Required.
3.10.100 - Exemptions and Exclusions.
3.10.110 - Amendments.
3.10.120 - Enjoining Collection Forbidden.
3.10.130 - Duration of Tax
Sections:
3.10.010 – Short Title.
This chapter shall be known as the “General Transactions and Use Tax” and shall be applicable in the
incorporated territory of the City of El Paso de Robles ("city"). This chapter shall complement, and not
replace or supersede, the city's existing sales and use tax, as such tax is described in Chapter 3.08 of Article
3 of the El Paso be Robles Municipal Code.
3.10.020 – 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 transaction and use tax ordinance that incorporates provisions identical to those of
the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent
with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation
Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure
therefore that can be administered and collected by the California Department of Tax and Fee
Administration in a manner that adapts itself as fully as practicable to, and requires the least possible
CC Resolution 24-069 Page 8 of 13
Exhibit A
deviation from, the existing statutory and administrative procedures followed by the California
Department of Tax and Fee Administration in administering and collecting the California State Sales
and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will
be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the
Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the
same time, minimize the burden of record-keeping upon persons subject to taxation under the
provisions of this ordinance.
3.10.030 - Contract With State.
Prior to the operative date, the City shall contract with the California Department of Tax and Fee
Administration to perform all functions incident to the administration and operation of this transactions
and use tax ordinance; provided, that if the City shall not have contracted with the California Department
of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a
case the operative date shall be the first day of the first calendar quarter following the execution of such
a contract.
3.10.040 - 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 percent (1/2%) 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.
3.10.050 - 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
California Department of Tax and Fee Administration.
3.263060 - 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 percent (1/2%) 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.
3.10.070 - Adoption of Provisions of State Law.
CC Resolution 24-069 Page 9 of 13
Exhibit A
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.
3.10.080 - 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 therefore. 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, California
Victim Compensation Board, California Department of Tax and Fee Administration, State Treasury,
or the Constitution of the State of California;
2.The result of that substitution would require action to be taken by or against this City or any
agency, officer, or employee thereof rather than by or against the California Department of Tax
and Fee Administration, in performing the functions incident to the administration or operation
of this Ordinance.
3.In those sections, including, but not necessarily limited to sections referring to the exterior
boundaries of the State of California, where the result of the substitution would be to:
a.Provide an exemption from this tax with respect to certain sales, storage, use or other
consumption of tangible personal property which would not otherwise be exempt from
this 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 reference to 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 of the Revenue and Taxation Code and in the definition of that phrase in
Section 6203.
1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding
calendar year or the current calendar year, has total combined sales of tangible personal property
in this state or for delivery in the State by the retailer and all persons related to the retailer that
exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related
to another person if both persons are related to each other pursuant to Section 267(b) of Title 26
of the United States Code and the regulations thereunder.
3.10.090 - Permit not Required.
CC Resolution 24-069 Page 10 of 13
Exhibit A
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.
3.10.100 - 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 subsection, 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.
CC Resolution 24-069 Page 11 of 13
Exhibit A
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 subsection, 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.
3.10.110 - Amendments.
CC Resolution 24-069 Page 12 of 13
Exhibit A
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.
3.10.120 - 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.
3.10.130 – Duration of Tax.
The tax imposed by this chapter shall continue until this ordinance is repealed by El Paso de Robles voters
in a subsequent election.
CC Resolution 24-069 Page 13 of 13