CC Resolution 13192 - Submitting Transactions and Use (Sales) Tax Measure to the Voters at the November 5, 2024 General Municipal Election RESOLUTION NO. 13192
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL SUBMITTING
A TRANSACTIONS AND USE (SALES) TAX MEASURE TO THE VOTERS AT THE
NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION AND TAKING CERTAIN
RELATED ACTIONS
WHEREAS, the City of Campbell needs reliable sources of funding to help our City
remain a safe and vibrant place to live, run a business, work and raise a family;
WHEREAS, a local, Campbell-approved funding measure would provide local control
over local funds, for local needs; and
WHEREAS, voter-approved local funding will help to fund priorities identified by the
public, such as to maintain and improve neighborhood police patrols, fire prevention and
emergency medical response services, urban wildfire protection, crime
suppression/investigation, pothole and street repair, parks, sports and recreation centers, and
other city facilities and services; and
WHEREAS, voter-approved funding will provide funds for Campbell, and all measure
funds are to be spent locally to benefit Campbell residents; and
WHEREAS, The City is committed to transparent, responsible fiscal stewardship and
these funds are subject to the City's annual financial audits and publicly disclosed spending
practices; and
WHEREAS, Revenue & Taxation Code Section 7285.9 authorizes the City Council to
levy a transactions and use tax for general purposes if the ordinance proposing that tax is
approved by a two-thirds vote of all members of the City Council and the tax is approved by a
majority vote of the qualified voters of the city voting In an election on the issue; and
WHEREAS, the City Council has adopted an Ordinance, entitled, "An Ordinance of the
City of Campbell Amending Chapter 3.09 of Title 3 of the Campbell Municipal Code Imposing
a Transactions and Use Tax To Be Administered by the California Department of Tax and Fee
Administration" (the "Tax Ordinance"); and
WHEREAS, the City Council desires to submit the Tax Ordinance to electorate at an
election to be held on November 5, 2024 (the "Election;") and
WHEREAS, the City Council has requested, that the Election be consolidated with the
statewide election held on that date, and the City Council has requested the assistance of
Santa Clara County in the conduct of the Election; and
WHEREAS, arguments for and against said measure, as well as rebuttals, may be filed
in accordance with applicable provisions of the law pursuant to Elections Code and the text of
the measure shall be printed on the ballot in the voter information portion of the sample ballot.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Campbell
does resolve and order as follows:
1. The City Council hereby orders, pursuant to Section 9222 of the Elections Code, that the Tax
Ordinance, which is attached hereto as Exhibit "A" and incorporated herein by reference, be
submitted to the voters at the Election. If a majority of the voters voting upon the ballot measure
vote in its favor, the Tax Ordinance shall be considered operative on the date the vote is
declared by the City Council and as set forth in Tax Ordinance.
2. The question submitted shall appear on the ballot as follows:
Campbell Local Funding/Community Services Measure. Shall the measure
providing funding for Campbell's fiscal stability and general government YES
services, such as: police/fire protection; 911 emergency medical response; road
and storm drain repairs; disaster preparation; homeless services; recreation
programs; keeping public spaces and parks safe/clean, by establishing a locally
controlled 1/20 transaction and use (sales) tax providing approximately NO
$7,000,000 annually until ended by voters; requiring independent audits and
public disclosure of spending, be adopted?
3. The City Clerk is instructed to transmit the Tax Ordinance to the City Attorney along with a
request that an impartial analysis be prepared for inclusion in the Voters' Pamphlet materials.
Pursuant to Elections Code section 9280, the City Attorney shall prepare an impartial analysis,
which shall be filed with the City Clerk's office no later than August 19, 2024 by 12:00 P.M.
4. Arguments for and against the Measure may be submitted to the City Clerk's office, until 12
p.m. on August 13, 2024. Rebuttal arguments will be permitted and must be received in the
City Clerk's office by 12:00 pm on August 19, 2024.
5. That in all particulars not recited in this Resolution, the election shall be held and conducted
as provided by law for holding municipal elections.
6. Notice of the time and place of holding of the election is given and the City Clerk is authorized,
instructed, and directed to give further or additional notice of the election in the time, form, and
manner as required by law.
7. Pursuant to Section 10400 et seq. of the Elections Code, the Board of Supervisors of Santa
Clara County is requested to consolidate the election on this ballot measure with other
elections held on the same day in the County.
8. The Board of Supervisors is authorized to canvass the returns of the Election pursuant to
Section 10411 of the Elections Code.
9. Pursuant to Section 10002 of the Elections Code, the Board of Supervisors is requested to
permit the County Election Official to render all services specified by Section 10418 of the
Elections Code relating to the election, for which services the City agrees to reimburse the
County, in accordance with current County pro-rations and allocation procedures.
10.The City Clerk shall file a certified copy of this Resolution with the Santa Clara County
Registrar of Voters.
11.The City Clerk is hereby authorized to do all things necessary and proper to implement the
provisions of this Resolution, including certifying the passage and adoption of this Resolution.
PASSED AND ADOPTED this 8th day of August, 2024, by the following roll call vote:
AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry
NOES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
APPROVED:
\_9--1,0C)Vn
Susan M. Landry, M r
ATTEST:
444.,
Andrea Sand , City Clerk
EXHIBIT A
ORDINANCE NO. 2315
AN ORDINANCE OF THE CITY OF CAMPBELL AMENDING CHAPTER 3.09, OF TITLE
3 OF THE CAMPBELL MUNICIPAL CODE IMPOSING A TRANSACTIONS AND USE
(SALES) TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
WHEREAS, the City of Campbell has authority, pursuant to Article XIIIC of the
California Constitution and Revenue and Tax Code section 7285.9 et seq. to propose a
transactions and use tax to be adopted by a majority vote of qualified voters, and is
authorized by Elections Code section 9222 to submit an ordinance directly to the voters at
the general election to be held on November 5, 2024,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES
ORDAIN AS FOLLOWS:
Section 1.Amendment. Contingent upon approval by the voters at the election of November
5, 2024, and authorization of the proposed one-half cent increase in the City's transaction
and use tax by legislation of the State of California, Chapter 3.09, "City of Campbell
Transactions and Use Tax" of Title 3 of the Campbell Municipal Code is hereby amended to
read in its entirety as follows:
3.09.010 Short title.
This chapter shall be known as the City of Campbell Transactions and Use Tax.
3.09.020 Purpose.
Pursuant to the requirements of the California Department of Tax and Fee
Administration, this chapter is adopted to achieve the following, among other purposes, and
directs that the provisions of this chapter be interpreted in order to accomplish those
purposes:
(a) To impose a retail transactions and use tax to be applied throughout the entire
territory of the city to the fullest extent permitted by law and 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 of the Revenue and Taxation Code, which
authorizes the city to adopt this chapter if a majority of the electors voting on the measure
vote to approve the imposition of the tax at an election called for that purpose.
(b) To adopt a retail transaction and use tax ordinance that incorporates
provisions identical to those of the sales and use tax law of the State of California insofar as
those provisions are not inconsistent with the requirements and limitations contained in Part
1.6 of Division 2 of the Revenue and Taxation Code.
(c) To adopt a retail transactions and use tax ordinance that imposes a tax and
provides a measure therefor 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.
(e) To provide transactions and use tax revenue to the city to be used to fund city
services, including, but not limited to: maintaining neighborhood police patrols,fire protection,
911 emergency response times, maintaining crime suppression and investigation, city
streets and pothole repair, parks and recreation, job creation and economic improvement
programs, senior and youth services, and with any transactions and use tax revenue received
being placed into the city's general fund.
(f) To provide transaction and use tax revenue to the city that can be spent for
unrestricted general revenue purposes.
3.09.030 Operative date;
If approved by State legislation, this chapter shall be operative on the first day of the
first calendar quarter commencing at least 110 days after the adoption of the ordinance
codifying this chapter and approval by a vote of the electorate, in accordance with Revenue
and Tax Code section 7265.
3.09.040 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 contract.
3.09.050 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 three-quarters of one
percent of the gross receipts of any retailers for the sale of all tangible personal property sold
at retail in said territory on and after the operative date of this chapter.
3.09.060 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 the retailer,
or his or her agent, to an out-of-state destination or to a common carrier for delivery to an
out-of-state destination. The gross receipts from such sales shall include delivery charges,
when such charges are subject to the state sales and use tax, regardless of the place to
which delivery is made. In the event a retailer has no permanent place of business in the
state, or has more than one place of business, the place or places at which the retail sales
are consummated shall be determined under rules and regulations to be prescribed and
adopted by the California Department of Tax and Fee Administration.
3.09.070 Use tax rate.
A use 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 three-
quarters of one percent of the sales price of the property. The sales price shall include
delivery charges when such charges are subject to state sales or use tax regardless of the
place to which delivery is made.
3.09.080 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.
3.09.090 Limitation 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. The substitution, however, 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, California Department of Tax and Fee
Administration, State Treasury, or the Constitution of the State of California.
(2) The result of that substitution would require action to be taken by or
against this city or any agency, officer, or employee thereof rather than by or against the
California Department of Tax and Fee Administration, in performing the functions incident to
the administration or operation of this 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:
(i) 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
(ii) 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 of the Revenue and Taxation Code.
(c) "A retailer engaged in business in the District" shall also include any retailer
that, in the preceding calendar year or the current calendar year, has total combined sales
of tangible personal property in this state or for delivery in the state by the retailer and all
persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For
purposes of this section, a person is related to another person if both persons are related to
each other pursuant to Section 267(b) of Title 26 of the United States Code and the
regulations thereunder.
3.09.100 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 seller's permit shall not be required by this chapter.
3.09.110 Exemptions and exclusions.
(a) There shall be excluded from the measure of the transactions 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 or her 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:
(i) 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
(ii) 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 the ordinance codified in 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 the ordinance codified in this chapter.
(5) For the purposes of subsections (b)(3) and (b)(4) of this section, the sale
or lease of tangible personal property shall be deemed not to be obligated pursuantto 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 subsections (c)(3) and (c)(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 subsection (c)(7) of this section, 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 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.
(e) Nothing in this chapter shall be construed as imposing a tax upon any person
or service when the imposition of such tax upon such person or service would be in violation
of a federal or state statute, the Constitution of the United States, or the Constitution of the
State of California.
3.09.120 Amendments.
(a) 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.
(b) The city council may otherwise amend this chapter without submitting the
amendment to the voters for approval in any manner which does not constitute a tax
"increase" as that term is defined in Government Code section 53750(h). The city council
may amend this chapter without voter approval provided such amendments do not increase
the tax rate; extend the duration of the tax; revise the methodology for calculating the tax,
such that a tax increase would result; impose the tax on transactions and uses not previously
subject to the tax (unless such amendment occurs automatically by operation of law); or
terminate the tax.
(c) Notwithstanding any provision to the contrary, any proposed change to the tax
rate imposed under this chapter shall be submitted to the vote of the people.
3.09.130 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.
3.09.140 Audit Requirements.
The proceeds resulting from the transactions and use tax shall be deposited into the
city's general fund and become subject to the same audit requirements as other general fund
revenue. Any auditor's report shall include an accounting of the revenues received from the
transactions and use tax and shall be presented to the city council and made available for
public review.
Section 2. Compliance with CEQA. The City Council hereby finds that the action to adopt
this Ordinance is exempt from the provisions of the California Environmental Quality Act
(CEQA), under Section 15061(b)(3) of the CEQA Guidelines (14 Cal. Code Regs. 15000 et
seq.) because it can be seen with certainty that there is no possibility that the adoption of
this Ordinance may have a significant effect on the environment.
Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid, such decision shall not affect the validity of
the remaining portions of this Ordinance. The City Council hereby declares that it should
have adopted the Ordinance and each section, subsection, sentence, clause, or phrase
thereof, irrespective of the fact that any one or more sections, subsections, sentences,
clauses or phrases be declared unconstitutional.
Section 4. Passage. The City Clerk is hereby ordered and directed to certify the passage of
this Ordinance by the City Council of the City of Campbell, California, and cause the same
to be published in accordance with State law.
Section 5. Effective Date. This Ordinance shall go into effect in accordance with Elections
Code Section 9217, and shall be deemed adopted and become effective only if approved by
a majority of the eligible voters of the City of Campbell voting thereon, at an election to be held
on November 5, 2024, and shall take effect ten (10) days after the City Council has certified
the results of that election by resolution. The levying and collection of the transaction and
use tax shall be as specified in the Ordinance.
Section 6. Termination Date. The authority to levy the tax imposed by this ordinance shall
continue until ended by voters.
Section 7. Upon approval by the voters, the City Clerk shall certify the passage of this
ordinance; publish the same by applicable law and forward a copy of the adopted ordinance
to the Board of Equalization.
PASSED AND ADOPTED by the City Council at its regular meeting of August 8, 2024 by the
following roll call vote:
AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry
NOES: Councilmembers: None
ABSTAIN: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED:
Susan M. Landry, or
ATTEST: APPROVED AS TO FORM:
e/f„:
Andrea Sand , City Clerk liam S igma y Attorney