League of Women Voters of California Education Fund
	Alameda County, CA November 6, 2012 Election
	Measure F Transactions and Use Tax City of Albany Ordinance - Majority Approval Required Pass: 6237 / 79.88% Yes votes ...... 1571 / 20.12% No votes See Also: Index of all Measures

Arguments For Measure F

The City of Albany has worked hard to maintain fiscal stability, and has avoided the dire fiscal consequences other cities have faced. Early in the recession, Council and Staff instituted many belt-tightening steps. However, the deep and long economic recession has resulted in reduced financial resources available to local governments from State and Federal sources. Staff and community workshops have generated ideas used to restructure many operations, reduce costs, and make budget cuts. Cutting the number of employees, reducing compensation, sharing staff with other cities, and stretching dollars have already occurred. Nevertheless, it is clear the City has reached capacity limitations that will cause it to fall short in meeting existing requirements and expectations: for example, falling behind in maintaining safe public facilities, keeping pace with mandates, safety concerns, technology updates, and filling positions that have remained empty for several years. These limitations compromise the quality of life and services that the Albany community receives. While Albany has been very successful in obtaining grants, local matching funds are needed but are in short supply. Moreover, grants generally fund capital projects rather than the services of critical importance to the community. The City of Albany has seen revenues flatten and decline as much as $1,000,000 from some funding sources--or 6% of the budget--over the past several years. Because of current limitations and loss of revenue, the City Council is recommending voters approve a 1/2 cent sales tax that would expire after eight years. With your support of this measure, Albany can continue to maintain and provide city services and facilities, including: Fire and Police protection, safety, and emergency response; recreational programs, parks, playgrounds, and open space; senior and youth programs and facilities; community development and environmental preservation; and other general city services. We urge a YES vote on Measure F. Farid Javandel, Albany Mayor; Marge Atkinson, Albany Vice Mayor; Jonathan Knight, Albany School Board Vice-President; Stephanie Sala, Small Business Owner; Jewel Okawachi, Former Albany Mayor (No arguments against Measure F were submitted)

Full Text of Measure F

ORDINANCE NO. 2012-03 AN ORDINANCE OF THE CITY OF ALBANY IMPOSING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION WHEREAS, since 2009, the City of Albany has seen its revenues flatten and decline, notably the annual real property transfer tax revenue, which has declined by approximately $1 million over the course of the past several years; and WHEREAS, the City Council and City staff have restructured City operations, reduced costs, and made budget cuts to adapt to diminishing financial resources; and WHEREAS, the City currently has held vacant police officer and public safety dispatcher positions as well as not filling, restructuring, or eliminating positions in recreation programming, public works, planning and administration; and WHEREAS, to reduce expenses the City is sharing a Fire Chief with the City of Piedmont and an Information Technology Manager with the City of Emeryville; and WHEREAS, take-home pay for most City employees has dropped by four percent or more in the past year, all employees in a pension program will have to pay the full costs for the employee share of pension costs, and new employees will receive lower pension benefits; and WHEREAS, in 2011 the City conducted staff and community workshops to generate ideas for reducing costs or increasing revenues, then incorporated short-term ideas into the 2011-12 budget and reviewed medium to long-range ideas at a City Council meeting on November 21, 2011; and WHEREAS, the City has worked hard to maintain stability in the midst of the economic turmoil that has reduced financial resources available to local governments throughout the State and country; and WHEREAS, at meetings in April 2012, the City Council received a staff report documenting the capacity limitations which are causing the City to fall short in meeting existing requirements and expectations and to fall behind in maintaining safe public facilities and keeping pace with mandates, safety concerns, and changing demographics and technology; and WHEREAS, on the basis of the foregoing, the City Council has determined that the best option available to the City for addressing these concerns is to request voter approval for a Transactions and Use (Sales) Tax at the rate of one-half of one percent (.5%) to remain in effect for a period of eight years; and WHEREAS, the tax, if approved, would be imposed on the sale of tangible personal property and the storage, use, or other consumption of such property and the tax revenue would be collected by the State Board of Equalization and remitted to the City; and WHEREAS, the proposed transactions and use tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a committed to any particular purposes; and the specific purposes recited in the ballot measure are for illustration only and not a restriction or limitation on the use of tax proceeds; and the measure shall be approved if it receives at least a simple majority of affirmative votes. NOW THEREFORE, THE PEOPLE OF THE CITY OF ALBANY DO ORDAIN AS FOLLOWS: Section 1. Article 4-12 is hereby added to Chapter IV of the Albany Municipal Code, to read as follows: 4-12 TRANSACTIONS AND USE TAX 4-12.1 TITLE. This ordinance shall be known as the City of Albany Transactions and Use Tax Ordinance. The City of Albany hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 4-12.2 OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 4-12.3 PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. D. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. E. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 4-12.4 CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 4-12.5 TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 0.5% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 4-12.6. PLACE OF SALE. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 4-12.7 USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 0.5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 4-12.8 ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 4-12.9. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: 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. 4-12.10 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. 4-12.11 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. 4-12.12 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. 4-12.13 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. 4-12.14 ANNUAL AUDIT. 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. 4-12.15 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. 4-12.16 EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately. 4-12.17 TERMINATION DATE. The authority to levy the tax imposed by this ordinance shall expire eight (8) years after the first tax is collected. Section 2. The People of the City of Albany find that all Recitals contained in this Ordinance are true and correct and are incorporated herein by reference. Section 3. The findings for this ordinance in compliance with the California Environmental Quality Act ("CEQA") are the same as those set forth in the City's Resolution No. 2012-42 calling for an election on this Ordinance. The CEQA findings set forth in Resolution No. 2012-42 are incorporated herein by reference. Section 4. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. Section 5. This Ordinance relates to the levying and collection of the City Transactions and Use Taxes and shall take effect immediately. Ordinance No. 2012-03 was submitted to the People of the City of Albany at the November 6, 2012 general municipal election. It was approved by the following vote of the People: YES: NO: Ordinance No. 2012-03 was thereby adopted by the voters at the November 6, 2012 election and took effect upon adoption of a resolution declaring the results of the election at a regular meeting of the City Council held on ______________, 2012, by the following vote: AYES: NOES: ABSENT: I HEREBY CERTIFY that the foregoing is a true and correct copy of an ordinance duly and regularly adopted by the People of the City of Albany, California. Nicole Almaguer, City Clerk