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HomeMy WebLinkAbout2026/07/28 City Council Resolution 2026-062 RESOLUTION NO. 2026-062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK, CALIFORNIA, SUBMITTING TO THE ELECTORS A BALLOT MEASURE ESTABLISHING A TRANSACTIONS AND USE TAX AT THE RATE OF 0.5% (1/2 CENT); APPROVING THE RELATED ORDINANCE; REQUESTING THAT THE SONOMA COUNTY BOARD OF SUPERVISORS CONSENT TO THE CONSOLIDATION OF SUCH BALLOT MEASURE ON THE BALLOT FOR THE CITY'S GENERAL MUNICIPAL ELECTION WHICH IS CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON TUESDAY,NOVEMBER 3, 2026 AND DIRECT THE SONOMA COUNTY REGISTRAR OF VOTERS TO CONDUCT THE ELECTION ON THE CITY'S BEHALF AND TO PROVIDE ELECTION SERVICES; DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; AND ESTABLISHING REQUIREMENTS REGARDING BALLOT ARGUMENTS WHEREAS,the City of Rohnert Park wishes to maintain quality neighborhood parks,safe and clean streets, schools, and neighborhoods; and WHEREAS, strengthening local property values maintains Rohnert Park as a desirable place to live, do business and raise a family; and WHEREAS, the City Council considered several options to address the City's financial needs, including the transactions and use (sales) tax described in this Resolution and entitled the Rohnert Park Financial Viability, Community Health/Safety Measure; and WHEREAS, the Rohnert Park Financial Viability, Community Health/Safety Measure, if enacted by voters,would generate additional voter-approved,locally controlled funding to address priorities the community has identified, such as maintaining 911 emergency response/fire protection and preventing reduction of the number of public safety officers patrolling neighborhood streets; and WHEREAS, if enacted by voters, the Measure would help maintain Rohnert Park's 28 parks and recreation areas, including repairing public bathrooms, landscaping, sports fields, and replacing aging gas, electrical, and sewer lines; and WHEREAS, providing children with safe places to play, keeping public areas safe and clean, and protecting local drinking water are additional priorities identified by Rohnert Park residents that would be addressed by the Measure; and WHEREAS,pursuant to Resolution No.2026-048,the City Council of the City of Rohnert Park ("City Council") called a General Municipal Election to be held on Tuesday, November 3, 2026,for the purpose of electing council members as provided therein and,pursuant to Resolution No. 2026-048, the City Council requested that the Sonoma County Board of Supervisors consent to the consolidation of such General Municipal Election with the Statewide General Election to be held on the same date; and WHEREAS, pursuant to Article XIIIC of the California Constitution, Section 53720 et seq. of the California Government Code,the City has the authority to levy a general tax, including, but not limited to, increasing an existing tax; and WHEREAS, Article XIIIC, Section 2, of the California Constitution requires that the election at which a general tax increase is submitted to the electorate shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body; and WHEREAS, Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code, and Section 7285.9 of the California Revenue and Taxation Code, authorizes a city to adopt a transactions and use 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; and WHEREAS, Revenue and Taxation Code Section 7285.9 requires that any ballot measure/ordinance establishing or increasing a transactions and use tax must be approved by a two-thirds vote of all members of the City Council and by a majority vote of the qualified voters of the City voting on the ballot measure; and WHEREAS, pursuant to the laws of the State of California, including, but not limited to, Elections Code Sections 9222 and 10201, the City Council desires to submit to the voters at the consolidated General Municipal Election to be held on Tuesday, November 3, 2026, a question relating to a transactions and use (sales)tax, which will establish a transactions and use (sales)tax at the rate of 0.5% (1/2¢) that provides approximately $5,500,000 annually until ended by voters. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Rohnert Park that it does hereby resolve, declare, determine as follows: 1. Recitals. The recitals set forth above are true and correct and are incorporated herein by this reference. 2. Submission of Measure. Pursuant to the laws of the State of California, including, but not limited to, Elections Code Sections 9222 and 10201, the City Council, hereby orders the submission to the qualified voters of the City of Rohnert Park at the General Municipal Election to be held on Tuesday, November 3, 2026, a measure that, if approved, establishes a transactions and use (sales) tax at the rate of 0.5%(1/2¢),providing approximately $5,500,000 annually until ended by voters ("Measure"). The abbreviated form of the Measure to appear on the ballot is specified below in Section 3. 3. Ballot Language. The City Council, pursuant to its right and authority, does hereby order the following question submitted to the voters at the consolidated general municipal Resolution 2026-062 Page 2 of 8 election to be held on November 3, 2026: Rohnert Park Financial Viability,Community Health/Safety Measure. To maintain 911 response/fire protection/wildfire YES preparedness; protect local drinking water; keep parks clean/safe; prevent property crime/burglary/public safety officer reductions; repair streets/potholes; and other general city services; shall the measure, establishing a half-cent local sales tax, providing approximately $5,500,000 annually for locally controlled funding that cannot be taken by the state, until ended by voters, requiring audits/public spending disclosure, be adopted? NO 4. Text of Measure. The proposed complete text of the Measure to be submitted to the voters is attached as Exhibit A and incorporated herein by this reference. Pursuant to Revenue and Taxation Code Section 7285.9, the City Council hereby approves the proposed complete text of the Measure in the form as provided in Exhibit A and the submission thereof to the voters of the City at the General Municipal Election to be held on Tuesday,November 3, 2026. 5. Voter Approval Requirement. The vote requirement for the measure to pass is a majority (50%+ 1) of the votes cast. 6. Form & Content of Ballots. The ballots to be used at the election shall be in form and content as required by law. 7. Coordination with County. The City Clerk, as the City's elections official, is authorized, instructed and directed to coordinate with the County of Sonoma Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. 8. Appropriation of Necessary Funds. The City of Rohnert Park recognizes that additional costs will be incurred for this election and agrees to reimburse the County for any costs. The City Manager or Designee is hereby authorized and directed to appropriate the necessary funds to pay for the City's cost of placing the measure on the election ballot. 9. Election Held Pursuant to Law. In all particulars not recited in this Resolution, the Resolution 2026-062 Page 3 of 8 election shall be held and conducted as provided by law for holding municipal elections. 10. Request to Consolidate and Conduct Election and Canvass Returns. A. Pursuant to California Elections Code sections 10400 et seq., the election for the Measure, as described in this Resolution, shall be consolidated with the established election to be conducted on Tuesday, November 3, 2026. Pursuant to the requirements of Elections Code Section 10403,the Board of Supervisors of the County of Sonoma is hereby requested to consent and agree to the consolidation of the Measure on the ballot for the City's General Municipal Election which is consolidated with the Statewide General Election to be held on Tuesday,November 3, 2026. B. The Sonoma County Elections Department is authorized to canvass the returns of the General Municipal Election to be held on Tuesday,November 3, 2026. The election shall be held in all respects as if there were only one election,and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the elections, including, but not limited to, Elections Code Section 10418. C. In accordance with California Elections Code 10002, the Board of Supervisors of the County of Sonoma permit the Registrar of Voters Office to render such election services, prepare all required notices and election materials of holding of the General Municipal Election, to give all such required notices and send to the City's registered voters all required election materials, conduct the General Municipal Election and canvass the vote received, and take all steps necessary and required for the holding of this election within the City of Rohnert Park. The County Registrar of Voters of Sonoma County is authorized to specify the location for the tally of ballots and certify the results to the City Council of the City of Rohnert Park. D. The City of Rohnert Park recognizes that additional costs will be incurred by the County of Sonoma by reason of this consolidation and agrees to reimburse the County of Sonoma for any costs. E. The City Clerk shall file a certified copy of this Resolution with the Sonoma County Board of Supervisors and Sonoma County Elections Department. F. At the next regular meeting of the City Council of the City of Rohnert Park occurring after the returns of the election for the measure set forth in Section 3 have been canvassed, and the results have been certified to the City Council, or at a special meeting called for such purpose if required by law, the City Council shall cause to be entered in its minutes a statement of the results of the election. 11. Submission of Ballot Arguments. A. Primary Argument. i. In accordance with Article 4, Chapter 3, Division 9 of the Elections Resolution 2026-062 Page 4 of 8 Code of the State of California, written argument(s) In Favor of or Against City measure(s) shall not exceed 300 words and shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by forms as provided by the City Clerk and shall be filed with City Clerk no later than the date and time fixed by the City Clerk.Further, the arguments may be changed or withdrawn until and including the date and time fixed by the City Clerk after which no arguments In Favor or Against the City measure may be submitted to the City Clerk. ii. In the event that more than one argument In Favor or Against the City measure is timely submitted, then consistent with Elections Code Section 9287, the City Clerk shall select the argument to be included with the ballot materials, giving preference and priority in the order set forth in Elections Code Section 9287. B. Rebuttal Arguments. i. Pursuant to Section 9285 of the Elections Code of the State of California,when the City Clerk has selected the arguments In Favor and Against the measure(not exceeding 300 words each)which will be printed and distributed to the voters, the City Clerk shall send a copy of an argument In Favor of the proposition to the authors of any argument Against the measure and a copy of an argument Against the measure to the authors of any argument In Favor of the measure immediately upon receiving the arguments. ii. The author or a majority of the authors of an argument relating to a City measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. iii. A rebuttal argument may not be signed by more than five authors. iv. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s)and signature(s)of the author(s)submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing primary arguments. The rebuttal arguments shall be accompanied by forms provided by the City Clerk. v. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut. Resolution 2026-062 Page 5 of 8 vi. All previous resolutions providing for the filing of rebuttal arguments for city measures are repealed,but only to the extent such resolutions conflict with this Resolution. vii. The provisions of this Section 11(B) shall apply only to the election to be held on November 3, 2026, and shall then be repealed. C. Submission of Impartial Analysis. i. The City Council directs the City Clerk to transmit a copy of the measure to the City Attorney. ii. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure. iii. The 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 governing body of the City. iv. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point type,a statement in substantially the following form: "The above statement is an impartial analysis of Ordinance or Measure_. If you desire a copy of the ordinance or measure,please call the election official's office at 707-588-2227 and a copy will be mailed at no cost to you." v. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. D. Printing. The City Clerk shall cause the City Attorney's impartial analysis, and duly selected arguments, to be printed and distributed to voters in accordance with State law regarding the same. 12. Notice of Election;Publication.Notice of the time and place of holding the election is 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. 13. Implementation. The City Clerk and City Manager are authorized to take all actions as necessary to effectuate the purposes of this Resolution and the election. The City Manager, subject to approval of the City Attorney, is authorized to make any typographical, clerical, and non-substantive corrections and such other revisions as may be required to this Resolution and its exhibits/attachments, including such typographical, clerical,and non-substantive corrections and/or such other revisions as may be required by the California Department of Fee and Tax Administration. 14. Environmental Compliance. The City Council finds the adoption and approval of this Resolution and the Measure are not subject to the California Environmental Quality Act("CEQA"),because their adoption and approval (1) do not constitute a Resolution 2026-062 Page 6 of 8 "project" as defined by CEQA pursuant to California Code of Regulations, Title 14, Sections 15060(c)(3) and 15378; (2) will not result in a direct or reasonably foreseeable indirect physical change in the environment pursuant to California Code of Regulations, Title 14, Section 15060(c)(2); and (3) are covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment pursuant to California Code of Regulations, Title 14, Section 15061(b)(3). This Resolution and Measure, if approved by the voters, establish a transactions and use tax,provide for the creation of City funding mechanisms and City fiscal activities, include organizational or administrative activities of government which will not result in direct or indirect physical changes to the environment, and do not involve any commitment to any project which may result in a potentially significant physical impact on the environment. 15. Certification. The City Clerk shall certify to the passage and adoption of this Resolution. DULY AND REGULARLY ADOPTED this 28th day of July, 2026. CITY OF ROHNERT PARK r) • By . a1.,1,( - API. (Emily S iborn, Mayor ATTEST: By ��- Elizabeth Machado, Assistant City Clerk APP ' 0 V G D • S TO FORM: BY: era Mic'e°le 711.heal enyon, City Attorney Attachments: Exhibit A-Proposed Complete Text of the Measure ADAMS:RyeG1UDICE:P'ie RODRIGUEZ:Pole-ELWARD:PA-r-SANBORN: (*lc AYES: (5 ) NOES: ( ) ABSENT:(0) ABSTAIN:(A) Resolution 2026-062 Page 7 of 8 Exhibit A Proposed Complete Text of the Measure Resolution 2026-062 Page 8 of 8 ORDINANCE NO. 998 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK, CALIFORNIA, ADDING A NEW CHAPTER 3.22 TO TITLE 3 OF THE ROHNERT PARK MUNICIPAL CODE WHICH ESTABLISHES A TRANSACTIONS AND USE TAX AT THE RATE OF 0.5% WHEREAS, pursuant to Article XIIIC of the California Constitution, Section 53720 et seq. of the California Government Code, the City has the authority to levy a general tax, including, but not limited to, increasing an existing general tax; and WHEREAS, Article XIIIC, Section 2, of the California Constitution requires that the election at which a general tax increase is submitted to the electorate shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body; and WHEREAS, Part 1.6 (commencing with Section 7251) of Division 2 of the California Revenue and Taxation Code, and Section 7285.9 of the California Revenue and Taxation Code, authorizes a city to adopt a transactions and use 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; and WHEREAS, Revenue and Taxation Code Section 7285.9 requires that any ballot measure/ordinance establishing or increasing a transactions and use tax must be approved by a 2/3 vote of all members of the City Council and by a majority vote of the qualified voters of the City voting on the ballot measure; and WHEREAS, by Resolution No. 2026-062, the City Council approved this Ordinance by a two-thirds vote of all its members; and WHEREAS, Tuesday, November 3, 2026, is the date of the general municipal election, which has been consolidated with the statewide general election occurring on the same date, at which members of the City Council will be elected; WHEREAS, this Ordinance establishes a transactions and use tax at the rate of 0.5% by adding a new Chapter 3.22, entitled “Transactions and Use Tax of 2026”, to Title 3 of the Rohnert Park Municipal Code. NOW, THEREFORE, the People of the City of Rohnert Park, California, do hereby ordain as follows: Section 1. Recitals. The recitals set forth above are true and correct and are incorporated herein by this reference. Section 2. New Chapter. Chapter 3.22, entitled “Transactions and Use Tax of 2026”, is hereby added to Title 3 of the Rohnert Park Municipal Code as follows: Chapter 3.22. Transactions and Use Tax of 2026 Section 3.22.010. – Title. This chapter shall be known as the “Transactions and Use Tax of 2026”. The City of Rohnert Park hereinafter shall be called “City.” This chapter shall be applicable in the incorporated territory of the City. Section 3.22.020. – Operative Date. “Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of this chapter. For purposes of Revenue and Taxation Code section 7265, this chapter shall be considered adopted on the Ordinance No. 998 Page 2 of 8 date of the election in which it is approved by the qualified voters of the City. Section 3.22.030. – Purpose. This chapter 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. 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 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 chapter. Section 3.22.040. – 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. Section 3.22.050. – 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 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 chapter. Section 3.22.060. – Place of Sale. For the purposes 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 Ordinance No. 998 Page 3 of 8 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. Section 3.22.070. – 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 chapter 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. Section 3.22.080. – Adoption of Provisions of State Law. Except as otherwise provided in this chapter 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 chapter as though fully set forth herein. Section 3.22.090. – 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 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 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 chapter. 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, Ordinance No. 998 Page 4 of 8 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. 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. Section 3.22.100. – 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 transactor’s permit shall not be required by this chapter. Section 3.22.110. – 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. 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 Ordinance No. 998 Page 5 of 8 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 chapter. 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 chapter. 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 chapter, 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 chapter. 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 chapter. 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, Ordinance No. 998 Page 6 of 8 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 chapter 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. Section 3.22.120. – Amendments. 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 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 chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter. Section 3.22.130. – 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 chapter, 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. Section 3.22.140. – Severability. If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstances shall not be affected thereby. Section 3.22.150. – Effective Date. Pursuant to Elections Code Section 9217, this chapter shall be considered adopted on the date that the City Council declares that the voters of the City of Rohnert Park have approved Ordinance No. 998 by a vote of no less than a majority of the votes cast by the electors voting at the election held on Tuesday, November 3, 2026, and shall go into effect ten (10) days thereafter. Section 3.22.160. – Termination Date. The tax imposed by this chapter shall remain in effect until ended by voters. Ordinance No. 998 Page 7 of 8 Section 3.22.170. – General Tax. The tax imposed by this chapter is a general tax. Accordingly, the proceeds from the tax imposed by this chapter shall be for unrestricted general revenue purposes of the City and shall be placed into the General Fund of the City. Section 3.22.180. – Amendment by City Council. Pursuant to Elections Code Section 9217, the City Council has the right and authority to amend this chapter, to further its purposes and intent (including but not limited to amendment for more efficient administration as determined by the City Council), in any manner that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution. Section 3.22.190. – Annual Audit. The proceeds resulting from this transactions and use tax shall be subject to the same independent annual audit requirements as other general fund revenue. The independent auditor’s report, which shall include an accounting of the revenues received from and expenditures made from the transactions and use tax, will be presented annually to the City Council and made available for public review. Further, such independent auditor’s report and such presentation thereof to the City Council may be combined with the City’s annual financial audit. Section 3. Council Authority to Amend. Pursuant to Elections Code Section 9217, the City Council has the right and authority to amend this Ordinance, to further its purposes and intent (including but not limited to amendment for more efficient administration as determined by the City Council), in any manner that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIII C of the California Constitution. Section 4. Environmental Compliance. The City finds the adoption of this Ordinance is not subject to the California Environmental Quality Act ("CEQA"), because the enactment of this Ordinance: (1) does not constitute a “project” as defined by CEQA pursuant to California Code of Regulations, Title 14, Sections 15060(c)(3) and 15378; (2) will not result in a direct or reasonably foreseeable indirect physical change in the environment pursuant to California Code of Regulations, Title 14, Section 15060(c)(2); and (3) is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment pursuant to California Code of Regulations, Title 14, Section 15061(b)(3). This Ordinance establishes a transactions and use tax, provides for the creation of City funding mechanisms and City fiscal activities, includes organizational or administrative activities of government which will not result in direct or indirect physical changes to the environment, and does not involve any commitment to any project which may result in a potentially significant physical impact on the environment. Section 5. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this Ordinance be declared unconstitutional or invalid for any reason, such declaration shall not affect the validity of the remaining portions of this Ordinance. Section 6. Date of Adoption; Effective Date. Pursuant to Elections Code Section 9217, this Ordinance shall be considered adopted on the date that the City Council declares that the voters of the City of Rohnert Park have approved this Ordinance by a vote of no less than a majority of the votes cast by the electors voting at the General Municipal Election held on Tuesday, November 3, 2026, and shall go into effect ten (10) days thereafter. Section 7. Execution. The Mayor shall sign this Ordinance and the City Clerk shall attest Ordinance No. 998 Page 8 of 8 and certify to the passage and adoption of this Ordinance if a majority of the voters voting in the City’s general municipal election on November 3, 2026, approve it. Section 8. Publication. The City Clerk shall cause this Ordinance to be published in the manner required by law. PASSED, APPROVED AND ADOPTED BY THE PEOPLE OF THE CITY OF ROHNERT PARK at the General Municipal Election held on November 3, 2026. APPROVED ________________________________ Emily Sanborn, Mayor ATTEST ________________________________ Sylvia Lopez Cuevas, City Clerk