2010/07/13 City Council Resolution 2010-73RESOLUTION NO. 2010 -73
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE
AGREEMENTS WITH THE STATE BOARD OF EQUALIZATION FOR
IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX
WHEREAS, on February 23, 2010, the City Council approved an ordinance (Ordinance
No. 82 1) amending the Rohnert Park Municipal Code and providing for a local transactions and
use tax; and
WHEREAS, on June 8, 2010, Ordinance No. 821 was approved and adopted by a
majority vote of the qualified voters of the City of Rohnert Park.
WHEREAS, the State Board of Equalization administers and collects the transactions
and use taxes for all jurisdictions within the state; and
WHEREAS, the Board will be responsible to administer and collect the transactions and
use tax for the City; and
WHEREAS, the Board requires that the City enter into a "Preparatory Agreement" and
an "Administration Agreement" prior to implementation of said taxes; and
WHEREAS, the Board requires that the City Council authorize the agreements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert
Park that the "Preparatory Agreement" attached as Exhibit A and the "Administrative
Agreement" attached as Exhibit B are hereby approved and the Interim City Manager is hereby
authorized to execute each agreement.
The foregoing resolution was introduced and adopted at a regular meeting of the City
Council of the City of Rohnert Park held on July 13, 2010, by the following vote, to wit:
AYES: Three (3) Council Members Belforte, Mackenzie, Mayor Stafford
NOES: None (0)
ABSENT: Two (2) Council Members Breeze, Callinan
ATTEST: +I /j CITY OF .
VV
Mayor
AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance
with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and
Taxation Code, the City of Rohnert Park, hereinafter called City, and the STATE BOARD OF
EQUALIZATION, hereinafter called Board, do agree as follows:
1. The Board agrees to enter into work to prepare to administer and operate a transactions and
use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been
approved by a majority of the electors of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Board at the times and in the amounts hereinafter specified all of
the Board's costs for preparatory work necessary to administer the City's transactions and use tax
ordinance. The Board's costs for preparatory work include costs of developing procedures,
programming for data processing, developing and adopting. appropriate regulations, designing and
printing forms, developing instructions for the Board's staff and for taxpayers, and other appropriate
and necessary preparatory costs to administer a transactions and use tax. ordinance. These costs shall
include both direct and indirect costs as specified in Section 11256 of the Government Code
3. Preparatory costs may be accounted for in a manner which conforms to the internal
accounting and personnel records currently maintained by the Board. The billings for costs may be
presented in summary form. Detailed records of preparatory costs will be retained for audit and
verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Board shall be referred to
the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Board shall be billed by the Board periodically, with the
final billing within a reasonable time after the operative date of the ordinance. City shall pay to the
Board the amount of such costs on or before the last day of the next succeeding month following the
month when the billing is received.
6. The amount to be paid by City for the Board's preparatory costs shall not exceed one
hundred seventy -five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)
1
EXHIBIT A
7. Communications and notices may be sent by first class United States mail.
Communications and notices to be sent to the Board shall be addressed to:
STATE BOARD OF EQUALIZATION
P. O. BOX 942879
SACRAMENTO, CALIFORNIA 94279 -0073
ATTENTION: EXECUTIVE DIRECTOR
Communications and notices to be sent to City shall be addressed to:
CITY OF ROHNERT PARK
130 AVRAM AVENUE
ROHNERT PARK, CALIFORNIA 94928
ATTENTION: CITY MANAGER
8. The date of this agreement is the date on which it is approved by the Department of General
Services. This agreement shall continue in effect until the preparatory work necessary to administer
City's transactions and use tax ordinance has been completed and the Board has received all payments
due from City under the terms of this agreement.
CITY OF ROHNERT PARK
(Signature)
John Dunn
(Typed Name)
Interim City Manager
(Title)
(Rev. 11/02)
STATE BOARD OF EQUALIZATION
(Executive Director)
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Rohnert Park has adopted, and the voters of the City of
Rohnert Park (hereafter called "City" or "District ") have approved by the required majority vote, the
City of Rohnert Park Transactions and Use Tax Ordinance (hereafter called "Ordinance "), a copy of
which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and
Taxation Code and the Ordinance, the State Board of Equalization, (hereinafter called the "Board ") and
the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement,
they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed
under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in
compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to
above and attached hereto, Ordinance No. 821, as amended from time to time, or as deemed to be
amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A. Administration. The Board and City agree that the Board shall perform exclusively all
functions incident to the administration and operation of the City Ordinance.
EXHIBIT B
B. Other Applicable Laws. City agrees that all provisions of law applicable to the
administration and operation of the State Sales and Use Tax Law which are not inconsistent with Part
1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and
operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may
be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from
that Fund for any authorized purpose, including making refunds, compensating and reimbursing the
Board pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is
entitled.
C. Transmittal of money.
1. For the period during which the tax is in effect, and except as otherwise provided herein, all
district taxes collected under the provisions of the City Ordinance shall be transmitted to City
periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City's self-imposed
limits or by final judgment of any court of the State of California holding that City's ordinance is
invalid or void, all district taxes collected under the provisions of the City Ordinance shall be
transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City
designated and authorized by the City. A statement shall be furnished at least quarterly indicating the
amounts withheld pursuant to Article IV of this Agreement.
D. Rules. The Board shall prescribe and adopt such rules and regulations as in its judgment
are necessary or desirable for the administration and operation of the City Ordinance and the
distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this
Agreement, the Board shall give no preference in applying money received for state sales and use
taxes, state- administered local sales and use taxes, and district transactions and use taxes owed by a
taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties,
cities and counties, redevelopment agencies, other districts, and City as their interests appear.
Rev. 1105 2
F. Security. The Board agrees that any security which it hereafter requires to be furnished by
taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available
for the payment of the claims of City for district taxes owing to it as its interest appears. The Board
shall not be required to change the terms of any security now held by it, and City shall not participate in
any security now held by the Board.
G. Records of the Board.
When requested by resolution of the legislative body of the City under section 7056 of the
Revenue and Taxation Code, the Board agrees to permit authorized personnel of the City to examine
the records of the Board, including the name, address, and account number of each seller holding a
seller's permit with a registered business location in the City, pertaining to the ascertainment of
transactions and use taxes collected for the City. Information obtained by the City from examination of
the Board's records shall be used by the City only for purposes related to the collection of transactions
and use taxes by the Board pursuant to this Agreement.
H. Annexation. City agrees that the Board shall not be required to give effect to an
annexation, for the purpose of collecting, allocating, and distributing District transactions and use
taxes, earlier than the first day of the calendar quarter which commences not less than two months after
notice to the Board. The notice shall include the name of the county or counties annexed to the
extended City boundary. In the event the City shall annex an area, the boundaries of which are not
coterminous with a county or counties, the notice shall include a description of the area annexed and
two maps of the City showing the area annexed and the location address of the property nearest to the
extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
A. Allocation. In the administration of the Board's contracts with all districts that impose
transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the
Revenue and Taxation Code:
Rev. 1105 3
1. Any payment not identified as being in payment of liability owing to a designated
district or districts may be apportioned among the districts as their interest appear, or, in the discretion
of the Board, to all districts with which the Board has contracted using ratios reflected by the
distribution of district taxes collected from all taxpayers.
2. All district taxes collected as a result of determinations or billings made by the Board,
and all amounts refunded or credited may be distributed or charged to the respective districts in the
same ratio as the taxpayer's self - declared district taxes for the period for which the determination,
billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to
vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for
registration or on the certificate of ownership may be used by the Board in determining the place of
use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Board as the Board's cost of administering the City Ordinance
such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the
Board for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States
mail to the addresses listed below, or to such other addresses as the parties may from time to time
designate. A notification is complete when deposited in the mail.
Rev. 1105 4
Communications and notices to be sent to the Board shall be addressed to:
State Board of Equalization
P.O. Box 942879
Sacramento, California 94279 -0073
Attention: Executive Director
Communications and notices to be sent to the City shall be addressed to:
City of Rohnert Park
130 Avram Avenue
Rohnert Park, California 94928
Attention: City Manager
Unless otherwise directed, transmittals of payment of District transactions and use taxes
will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of
General Services. The Agreement shall take effect on October 1, 2010 . This Agreement shall
continue until December 31 next following the expiration date of the City Ordinance, and shall
thereafter be renewed automatically from year to year until the Board completes all work necessary to
the administration of the City Ordinance and has received and disbursed all payments due under that
Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Board written notice of the repeal of
the City Ordinance not less than 110 days prior to the operative date of the repeal.
Rev. 1/05 5
ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the
City shall deposit in an interest - bearing escrow account, any proceeds transmitted to it under
Article II. C., until a court of competent jurisdiction renders a final and non - appealable judgment that
the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall
transmit to the Board the moneys retained in escrow, including any accumulated interest, within ten
days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non-
appealable.
B. Costs of administration. Should a final judgment be entered in any court of the State of
California,. holding that City's Ordinance is invalid or void, and requiring a rebate or refund to
taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
Ordinance.
1. Board may retain all payments made by City to Board to prepare to administer the City
2. City will pay to Board and allow Board to retain Board's cost of administering the City
Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Board or to the State of California the amount of any taxes plus interest
and penalties, if any, that Board or, the State of California may be required to rebate or refund to
taxpayers.
Rev. 1105 6
4. City will pay to Board its costs for rebating or refunding such taxes, interest, or
penalties. Board's costs shall include its additional cost for developing procedures for processing the
r
rebates or refunds, its costs of actually making these refunds, designing and printing forms, and
developing instructions for Board's staff for use in making these rebates or refunds and any other costs
incurred by Board which are reasonably appropriate or necessary to make those rebates or refunds.
These costs shall include Board's direct and indirect costs as specified by Section 11256 of the
Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting, and
personnel records currently maintained by the Board. The billings for such costs may be presented in
summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Board in refunding taxes shall be
referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Board in connection with such refunds shall be billed by Board on or
before the 25th day of the second month following the month in which the judgment of a court of the
State of California holding City's Ordinance invalid or void becomes final. Thereafter Board shall bill
City on or before the 25th of each month for all costs incurred by Board for the preceding calendar
month. City shall pay to Board the amount of such costs on or before the last day of the succeeding
month and shall pay to Board the total amount of taxes, interest, and penalties refunded or paid to
taxpayers, together with Board costs incurred in making those refunds.
CITY OF
(Signature)
John Dunn
(Typed Name)
Interim Cily Manager
(Title)
Rev. 1/05 7
STATE BOARD OF EQUALIZATION
an
(Executive Director)
ORDINANCE NO.821
AN ORDINANCE OF THE CITY OF ROHNERT PARK, CALIFORNIA, IMPOSING A
TRANSACTIONS AND USE .TAX. TO BE ADMINISTERED BY THE STATE BOARD OF
EQUALIZATION.,
WHEREAS, the City is experiencing an'existing and immediate funding crisis, which is the result
of factors largely outside of its control, including national economic trends, rapid increases in the
cost of employee retirement and health insurance benefits, decreases in revenue from existing taxes
and fees, increases in charges by the County of Sonoma, and unpredictable State takeaways of local
revenue.
WHEREAS, the City has taken significant steps to reduce its operational costs including: cutting
service positions, including public safety officers, negotiated salary reductions with all staff
members, and implemented cost saving and efficiencies by consolidating services and eliminating
unnecessary overhead.
WHEREAS, because of changes in State law, particularly the approval of Propositions 62 and 218,
the City has very few means available for increasing General Fund revenue..
WHEREAS, absent a new source of General Fund revenue, the City's ability to maintain staff and
service levels is uncertain. Despite the budget cuts made by the City, and the significant reduction
in the number of City service providers and employees, the City still faces a severe budget deficit of
close to $6 million annually with currently.only $6 million left in emergency reserves.
WHEREAS, unless staff and service levels are at least partially restored, public facilities and
property will not be properly maintained, public safety standards will degrade, crime and violence
will increase, the community. will not have adequate and safe recreational opportunities, businesses
and familie$ will be discouraged from moving to or remaining in Rohnert Park, and the health,
safety, and welfare -of the residents of Rohnert Park will be endangered.
WHEREAS, because of that threat to the public health, safely, and welfare, an emergency exists in
the City, as the term "emergency" is used in Article XIIIC, section 2(bi of the California
Constitution. The City must immediately address that emergency by ensuring that the City has the
resources necessary to preserve the public health, safety, and welfare.
WHEREAS, the identified emergency necessitates that the City Council submit a an essential
services temporary funding measure to the voters of Rohnert Park at the June 8, 2010 election, even
though such an election would not be consolidated with a general election for a member of the
Council. .
Page 1 of 8
1288663x180078/0012
WHEREAS, article XIIIC, section_ 2(b) of the California Constitution permits the City, in an
emergency situation declared by a unanimous vote of the Council, to seek voter approval for a
general tax at an election that is not consolidated with an election for a member of the Council.
NOW, THEREFORE, the City of Rohnert Park does hereby ordain as follows:
SECTION 1: "Chapter 3.21. Transactions and Use Tax" shall be added to the kohnert Park
Municipal Code and shall read as follows:
Sections:
3.21.010'
3.21.020
3.21.030
3.21.040
3.21.050
3.21.060
3.21.070
3.21.080
3.21.090
3.21.100
3.21.114
3.21:120
3.21.130
3:21.140 -
3.21.150
3.21.010
"Chapter 3.21 TRANSACTIONS AND USE TAX"
Short Title
Operative Date
Purpose.
Contract with. State
Transactions Tax Rate
Place of Sale
Use Tax Rate
Adoption of Provisions of State Lacy
Limitations on Adoption of -State Law and Collection of Use Taxes
Permit Not Required
Exemptions and Exclusions
Amendments
Enjoining Collection Forbidden
Annual Audit and Public Report
Termination Date
Short Title
This. ordinance shall be known as the City of Rohnert Park Transactions and Use Tax Ordinance.
The City of Rohnert Park hereinafter shall be called "City." This ordinance shall be applicable in the
incorporated territory of the City.
3.21.020 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.
3.21.030 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 725 1) 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 tr�rlsactioris 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
Page 2 of 8
1288663v1 80078/0012
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 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 Part 1'.6 of Division 2
of the Revenue and Taxation Code, minimize thecost 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.
3.21.040 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.
3.21.050 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 .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.
3.21.060 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.
3.21.070. 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 .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.
3.21.080 Adoption of Provisions of State Law
Except as otherwise provided in this ordinance and except insofar as, they are: inconsistent with•the
Page 3 of 8
1288663v180078/0612
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.
3.21.090 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, 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 ocher 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 l 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 6101, 6702 (except in the last sentence thereof), 671.1, 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.
3.21.100 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 transactons permit shall not be required by this ordinance.
3.21.110 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.
.Page 4 of 8
1288663v1 8007810012
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
Page 5 of 8
1288663x180078 /0012
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 o£, 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.
3.21.120 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.
The foregoing amendments.shall not require voter approval.
Page 6 of 8
1288663v1 80078/0012
The following amendments to this ordinance must be approved by the voters of the City
of Rohnert Park: increasing the tax rate or revising the methodology for calculating the tax such
that a tax increase would result; imposing the tax on transactions and uses not previously
subject to the tax (unless such amendment occurs automatically by operation of the
preceding paragraph); or extending the tax beyond the fifth anniversary of the operative
date. The City Council may otherwise amend this ordinance without submitting the
amendment to the voters for approval.
3.21.130 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.
3.21.140 Annual Audit and Public Report
Annually the City Council retains an independent auditor to conduct an audit of and provide audited
financial statements for all of the City's financial activities. The auditor shall include an accounting
of the revenue received from the tax and expenditures thereof in the audited financial statements.
.The auditor's report shall be presented to the Council and made available to the public.
Additionally, the Director of Administrative Services shall annually prepare and present to.the
Council and the public a report in conjunction with the audit that reviews the status and
performance of the programs and services funded wholly or partially with proceeds of the tax.
3.21.150 Termination Date
The authority to levy the tax imposed by this ordinance shall expire on the fifth anniversary of the
operative date, unless extended by a majority vote of the voters of the City.
SECTION 2: SEVERABILITY. The City Council hereby declares that every section, paragraph,.
sentence, clause, and phrase of this ordinance is severable. If any section, paragraph, sentence,
clause, or phrase of this ordinance is for any reason found to be invalid or unconstitutional, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining
sections, paragraphs, sentences, clauses, or. phrases.
SECTION 3.: EFFECTIVE DATE. This ordinance relating to the levying and collection of the
City transactions and use taxes and shall take effect immediately.
SECTION 4: PUBLICATION. The Clerk of the City of Rohnert Park is hereby directed to cause
the following summary of the ordinance to be published by a newspaper . of general circulation,
published and circulated in the City of Rohnert Park:
Contingent upon majority voter approval, this ordinance adopts a one -half cent (0.5 %)
transactions and use tax on-the sale or consumption of tangible personal property within the
City of Rohnert Park. The tax shall terminate automatically upon the fifth anniversary of the
State beginning to collect it, unless extended by the voters.
Page 7 of -8
1288663v180078/0012
This ordinance was approved and adopted in accordance with state law by a unanimous vote of the
City Council on February 23, 2010 and approved and adopted by a majority vote of the qualified
voters of the City of Rohnert Park on June 8, 2010.
AYES: Five (5) Council Members Belforte, Breeze, Callinan, Mackenzie and Mayor Stafford
NOES: None (0)
ABSENT: None (0)
ABSTAIN: None (0)
CITY OF ROHNERT PARK
Pa- L-� 4.,.,.52..
Page 8 of 8
1288663v180078/0012
. . ,