HomeMy WebLinkAboutOrdinances - No. 1780 ER...................................................................
F THE CITY OF LODI DO Q DAIN AS FOLLOWS:
~CTION 1. The Lodi Municipal Code is hereby amended by the addition of Chapter
3.09, which shall r
3.0~.010
This chapter shall be known as the City of Lodi Transactions and Use Tax Ordinance.
This chapter sh II be appli~able in the incorporated ~erritory of the City of Lodi (“City”).
This chapter sh II complement, and not replace or supersede, the City’s existing sales
and use tax, as uch tax is described in Chapter 3.08 of the Municipal Code.
3,09.020 perative Rate
perative Date” means the first day of the first calendar
an 110 days after the adoption of this chapter. If this
y the voters at the November 7, 2006, election, the operative date
3.09’03~ Purpose
This chapter is adopted to achieve the following, among other purposes, and the City
Council directs that the provisions hereof be interpreted in order to accomplish those
purposes:
A. To impos~ a retail tra d use tax in accordance with the provisions of
Part 1.6 (c~mmenc on 7251) of Division 2 of the Revenue and
Ta~ation Code and .91 of Part 1.7 of Division 2, which authorizes
the City to adopt this tax chapter, which shall be operative if two-thirds of the
on the measure vote to approve the imposition of the tax at an
election called for that purpose.
To adopt a retail tr and use tax chapter that incorporates provisions
identical to those of and Use Tax Law of the State of California insofar
n~~n$i$t~nt with the requirements and limitations
To adopt a retail transactions and use tax chapter that imposes a tax and
rovides a measure therefor that can be administered and collected by the State
qual~za~ion in a manner that adapts itself as fully as practicable to, and
~equires the least possible deviation from, the existing statutory and
administrative proced~res followed by the State Board of Equalization in
~dministering and collect in^ the California State Sales and Use Taxes.
To adopt a retail transactions and use tax chapter that can be administered in a
manner that will be, to the greatest degree possible, consistent with the
.
6 of Division 2 of the Revenue and Taxation Code.
C.
D.
provis~ons of Part 1.6 of ivision 2 of the Revenue and Taxation Code, minimize
the cost of collecting th 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 chapter.
penditure Plan
enditure Plan is designed to ensure that the City accomplishes the
rojects listed below with the revenue generated from the transactions
and use tax. The revenue from the transactions and use tax shall be expended
on ihese specific projects in the following order of priority:
1. edics on fire engines in the City (up to $700~000 per year
2. esign and construction of Fire Station #5, which shall be located in the
3.
4.
5.
6.
southeast portion of the City (up to $2,000,000)~
Construction of the Lodi Aquatics Center (up to $9,005,000);
n and construction of a replacement for Fire Station #2, which shall
ated in the eastern portion of the City (up to $2,000,000?;
Cons~ruction of a downtown indoor sports center (up to $9,000,000); and
Maintenance and operation of the facilities above (up to $~,550,000?
has collected revenue from this transactions and use tax in the
00,0~0, it shall hire an appropria~e number of paramedics and begin
amedic services on fire engines in the City within twelve months.
ing duty to expend $700,000 per year to fund
enditure Plan, once the City collects the amount
ect it shall begin design or construction of the
d~si~nate~ facilities within six months.
The City ouncil shall appoint an advisory committee to ensure that the revenue
from the ~ransactions and use tax is spent in accordance with the actual terms
rall intent of this chapter. The commi~ee shall consist of five individuals
and shall, at all times, include one member of Lodi Professional Firefighters Local
1225, one ember of the Lodi City Swim Club, one member of the Ladi Sports
Foundation, one member of the City Council, and one person selected at large
by the City Council in its discretion. Each member of the advisory committee
shall serve for a term of two years, which term may be renewed by the City
Council. In the of a vacancy on the committee, the City Council shall
appoi~~ an appr~ r~placern~n~ rn~mb~r.
If the City Council and the advisory committee both determine that the maximum
dollar amoun~ to be spent on one or more of these projects is insufficient to
achieve the goals of this chapter, the City Council may increase the maximum
dollar amount for such project(s), provided that it first holds a noticed public
hearing and makes specific findings that the increased expenditures for one or
more projects is necessary to complete such project(s) in an effective manner
If the City Council an the advisory coninii~ee both determine that the order of
priority for these projects should be changed, the City Council may change the
order of priority, provided that it first holds a noticed public hearing and makes
C.
D.
intent of this chapter.
E.
s that the change in the order of priority is in the best interests of
F. revenue in the amounts listed above has been spent on the services and
es included in each of these projects, any remaining revenue raised
through this transactions and use tax shall be spent to help maintain such
services and facili~ies.
3.09.050 Con~ract with State
Prior to the Opera~ive Date, the City shall cont~act with the State Board of Equalization to
perform all functions incident to the administration and operation of this transactions and
shall not have contracted with the State Board
e, it shall neve~heless so contract and in such
perative Date shall be the first day of the first calendar quarter following the
tax chapter; provided t
qualizatjon prior to the
~xecution of such a contrac~.
~.Q~.O~O Transac~ions Tax Rate
For the privil~~e of selling tangi~~e pe~sQnal property at retail, a tax is hereby imposed
upon all r~tailers in the incorporated territory of the City at the rate of .25% (one quarter
of one percent^ of the gross receipts of any retail~f from the sale of all tangible personal
prop~~y sold at retail in said territory on and after the Operative Date of this chapter.
~.O9.O?O
For the pur~oses of this chapter, 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 ou~"of-state destination. The gross receipts from such sales shall include delivery
char~es, when such charges are subject to the state sales and use tax, regardless of the
ry is made. In the event a retailer has no permanent place of
business in the or has more than one place of business, the place or places at
which the retail are consummated shall be determined under rules and regulations
ate Board of ~qualization.
~.09.080 Use Tax Rate
An excise tax is hereby imposed on the storage, use, or other consumption in the City of
tangibie persona! prope~y purchased from any retailer on and after the Operative Date
of this chapter for s~ora~e, use, or other cQnsumption in said territory at the rate of 25%
(one quarter 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 de~ivery is made.
~.0~.590
Except as otherwise provided in this chapter and except insofar as they are inconsistent
with the provision^ of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the
provisions of Part 1 (commencing with Sec~ion 6001) of Division 2 of the Revenue and
Taxation Code are hereby adopted and made a part of this chapter as though fully set
forth herein.
Adoption of Provisions of State Law
imitations on Adoption of late Law and Collection of Use Taxes
the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the tale of California is named or referred to as the taxing agency,
the flame of this City shall be substituted therefor. However, the substitution
shall not be made when:
1. The word "State" i used as a part of e title of the State Controller, State
~reasurer, State oard of Control, ate Board of Equalization, State
Treasury, or the ~onstitution of the State of California;
The result of that substi~ution would require action to be taken by or
ainst this City or any agency, officer, or employee thereof rather than
by or against the State of ~qualization, in performing the functions
incident to the administr r operation of this Chapter.
3. In those sections, including, but not necessarily limited to sections
referring to the exterior boundar~es 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 consump~ion remain subject to tax by
State under the provisions of Part 1 of Division 2 of the
enue and Taxation Code, or;
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.
52 (except in the last sentence thereof), 671 1, 671 5,
of the Revenue and Taxation Code.
2.
b.
4. In Sections 6701,
6737,6797, or 68
B. The word "City" shall be substituted for the word "State" in the phrase "retailer
engaged in business in this State" in Sectian 6203 and in the definition of that
phrase in Section 6203.
3.09.110 Permit not K~quire~
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and
Taxation Code, an add~~ional t~ansactor's permit shall not be required by this chapter.
3.~9.120 ~xemp~ions 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 ~radley- urns Uniform Local
Sales and Use Tax Law or the amount of any state-administered transactions or
use fax.
exempted from the computa~ion of the amount of transactions tax the
gross receipts from:
1. ales of t~ng~b~e personal property, other than fuel or pe~roleum products,
ta ope~ators of aircraft to be used or consumed ~rincipally 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
uthority of the laws of this State, the United States, or any foreign
ales of property to be used outside the City, which is shipped to a point
outside the City, pu~suan~ 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
ship~ent to a consignee at such point. For the purposes of this
paragraph, delivery to a point outside the City shall be satisfied:
a. ~ith respect to vehicles (other than commercjal vehicles) subject
to registration pursuant to Chapter I (commencing with Section
4000) of Division 3 of the Vehicle Code, ai
~ompliance with Section 21411 of the Public U
undocumented ve els registered under Division 3.5
(commencing with ction 9840) of the Vehicle Code by
registration to an out-of-City address and by a declaration under
pen~lty of pe~~~, signed by the buyer, stating that such address
is, in fact, his or her principal place of residence; and
With respect to commercial vehicles, by ~egistration to a place of
business out-nf-City and d~claration under penalty of perjury,
signed by the buyer, that the vehicle will be operated from that
address.
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 ~perative Date of this chapter.
ngible ~ersonal pro~e~y which is a ~ontinuing sale of such
property, for any period of time for which the lessor is obligated to lease
the property for an amaunf fixed by the lease prior tQ the O~erative Date
of this ~hapter.
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
lo the contract or lease has the unconditional right to terminate the
cont~act or lease upon notice, whether or not such right is exercised.
There are exempted from the use tax imposed by this chapter, the storage, use,
or other consum~tion in this City of tangible personal property:
vernment.
2.
b.
3.
4,
5.
6.
ss receipts from the sale of which have been subject to a
ons tax under any state-administered transactions and use tax
ordinance.
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
omp pens at ion under a certificate of public convenience and necessity
issued pursuant to the laws of this State, the United States, or any foreign
rnment. This ption is in addition to the exemptions provided in
6.1 of the Revenue and Taxation Code of the
State of Cali~ornia.
If the purchaser is obliQated to purchase the property for a fixed price
pursuant to a contract entered into prior to the ~perative Date of this
chapter.
If the possession of, or the exercise of any right or power over, the
rsonal prap~~y arises under a lease which is a continuing
purchase of such property for any period of time for which the lessee is
obliga~ed to lease the property for an amount fixed by a lease prior to the
~perative Date of this chapter.
For the purposes of subparagraphs (3) and (4) of this section, storage,
use, or other ons sump ti on, or possession of, or exercise of any right ar
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 eontract or lease has the unconditional right to terminate
the contract or lease upon notice, whether or not such right is exercised.
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
tangjble 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.
"A retailer engaged in business in the City" shall also include any retailer
of any of the foilowin : vehicles subject to registration pursuant to
hapter 1 (commencin with Section 4000) of Division 3 of the Vehicle
ode, aircraft lice~sed n compliance with Section 21411 of the Public
es Code, or undocumented vessels registered under Division 3.5
mencing with Section 9840) of the Vehicle Code. That retailer shall
be ~equired to collect use tax from any purchaser who registers or
licenses the vehicle, vessel, or aircraft at an address in the City.
Any person subject to use lax under this chapter may credit against that tax any
transactions lax or ~eimbursement 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 venue 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.
2.
3.
4.
5.
6.
7.
D.
3.09.130 mendmen~s
All amendMents subsequent to the effective date of this chapter to Part 1 of Division 2 of
the Revenue and Taxation Code relating to sales and use taxes and which are not
incons~sten~ with Part 1 .6 and Part 1.7 of ~ivision 2 of the Revenue and Taxation Code,
and all amendments to art 1.6 and Part 1.7 of Division 2 of the ~evenue and Taxation
Code, shall automatically become a part of this chapter, provided however, that no such
amendment shall operate so as to affect the rate of tax imposed by this chapter. Except
as pro ection 3.40.140, this chapter may be amended only by the
voters sions of Elections Code section 9217 and as provided by
law.
3Ll9.140 Termination of Tax
The tran§actions and use tax imposed by this Chaptef shall terminate ten years from the
Operative Date.
3.09.1 50 Enjoining Collection Forbidden
No injunction or w of mandate or other legal or equitable process shall issue in any
eding in any court against the State or the City, or against any
the City, to prev~nt or enjoin the collection under this chapter, or
of the ~evenue and Taxation Code, of any tax or any amount of
If any provision of this chapter or the application thereof to
ce is held invalid, such invalidity shall not affect other
~fovisjons or ~Fpli~~tions of the chapter which can be given effect without the invalid
provision or appl~cat~on, and to this end the provisions of this chapter are severable.
ECTIQN 3. ~ffec~ive Date. This chapter is related lo the levying and collecting of the
City transactions and use tax and shall take effect immedia~e~y (see Section 1, 3.09.020,
~~Qpera~ive Bate”).
S~CTlO~4. No e. This ord~nance is not intended to and shall
not be construed ner which imposes upon the City, or any officer
or employee the a mandato~ duty of care towards persons or property within the
City or ~utside of the City so as to provide a basis of civil liability for damages, except as
otherwise imposed by law.
~CTION 5. All o~dinances and parts of ordinances in conflict herewith are repealed
sofar as such conflict may exist.
his ordinance shall be published one time in the ”Lodi News Sentinel,” a
of ~eneral circulation print~d and pubiished in the City of Lodi, and shall
take effect imme~iately after its passage and approval (see Section 1,
3.09.020, ‘~Qperative
Attest: Approved this 5‘h day of July, 2006
Mayor
. Perrin, ln~erim City Clerk of the City of Lodi, do hereby certify that
was ifltroduced at a regular meeting of the City Council of the City
of Lodi held June 21, 2006, and was thereafter passed, adopted, and ordered to print at
a regular m~eting of said Council held July 5, 2006, by the following vote:
eckman, Hansen, Johnson, Mounce
and Mayor Hitchcock
CauNciL MEM
I further certify that
date of its passa~e and the same has been published pursuant to law.
rdinance No. 1780 was approved and signed by the Mayor of the
Ap~roved as ta Form: