CC Resolution 2016-048 Measure G ImplementationRESOLUTION NO. 2016 - 048
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA, CALIFORNIA, APPROVING AGREEMENTS WITH
THE STATE BOARD OF EQUALIZATION AND AUTHORIZING
THE CITY MANAGER TO EXECUTE THE AGREEMENTS FOR
IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE
TAX
WHEREAS, on May 17, 2016 the City Council approved Ordinance No 540
amending the La Quinta Municipal Code and providing for a local transactions and use
tax; and
WHEREAS, the State Board of Equalization (Board) administers and collects the
transactions and use taxes for all applicable 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,
and designate the position authorized to execute agreements on behalf of the City,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La Quinta,
California, as follows:
SECTION 1. The "Preparatory Agreement" attached as Exhibit A and the
"Administrative Agreement" attached as Exhibit B are hereby approved.
SECTION 2. The City Manager of the City of La Quinta is hereby authorized to execute
each agreement.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta City
Council held on this 20th day of December, 2016 by the following vote:
AYES: Council Members Fitzpatrick, Pena, Radi, Sanchez, Mayor Evans
NOES: None
ABSENT: None
ABSTAIN: None
Resolution No. 2016-048
BOE Agreements to Implement 1% Tax (Measure G)
Adopted: December 20, 2016
Page 2 of 2
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
Y14A� kk�
SUSAN MAYSELS, City Clerkq
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
WILLIAM H. IHRft, City Attorney
City of La Quinta, California
EXHIBIT A
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 LA QUINTA , 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.)
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, MIC: 27
Sacramento, California 94279-0027
Attention: Administrator,
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
CITY CLERK
CITY HALL, 78495 CALLE TAMPICO
LA QU I NTA, CA 922532
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
LA QUINTA
(Typed Name)
CITY MANAGER
(Title)
(Rev 11/16)
2
STATE BOARD OF EQUALIZATION
Administrator
EXHIBIT B
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of
LA QUINTA
has adopted, and the voters of the City of
LA QUINTA (hereafter called "City" or "District") have approved by the required majority
vote, the City of
LA QUINTA'S 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. 540 , 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.
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 11-16) 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.11-16) 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.11-16) 4
Communications and notices to be sent to the Board shall be addressed to:
State Board of Equalization
P.O. Box 942879, MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:
CITY HALL,
CITY CLERK
78495 CALLE TAMPICO
LA QU I NTA, CA 92253
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 April 1, 2017. 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. 11-16) 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 IL 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 11-16) 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
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. _ _ STATE BOARD OF EQUALIZATION
By
FR KA{S nature) Administrator
PEVACEK
(Typed Name)
CITY MANAGER
(Title)
(Rev 11-16) 7
ATTACHMENT TO EXHIBIT "B" - BOE ADMINISTRATION AGREEMENT
ORDINANCE NO.540
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA, CALIFORNIA, IMPOSING A TRANSACTIONS AND
USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF
EQUALIZATION
THE PEOPLE OF THE CITY OF LA QUINTA, CALIFORNIA, HEREBY ORDAIN AS
FOLLOWS:
SECTION_ 1_. Chapter 3.27 is hereby added to Title 3 of the La Quinta Municipal Code to
read:
Sections:
TRANSACTIONS AND USE TAX
3.27.010
Title and Applicable Territory
3.27.020
Operative Date
3.27.030
Purpose
3.27.040
Contract with State
3.27.050
Transactions Tax Rate
3.27.060
Place of Sale
3.27.070
Use Tax Rate
3.27.080
Adoption of Provisions of State Law
3.27.090
Limitations on Adoption of State Law and Collection of Use
Taxes
3.27.100
Permit Not Required
3.27.110
Exemptions and Exclusions
3.27.120
Amendments
3.27.130
Enjoining Collection Forbidden
3.27.010 Title and Applicable Territory.
This Ordinance shall be known as the La Quinta Transactions and Use Tax Ordinance.
The City of La Quinta hereinafter shall be called "City." This Ordinance shall be
applicable in the incorporated territory of the City.
3.27.020 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.
3.27.030 Purposo.
This Ordinance is adopted to achieve the following, among other purposes, and directs
that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the
provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue
Ordinance No. 540
Add Chapter 3.27 to Title 3 - Revenue and Finance Imposing 1% Transactions and Use Tax
Adopted: May 17, 2016
Page 2 of 8
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 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 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 the
cost of collecting the transactions and use taxes, and at the same time, minimize the
burden of record keeping upon persons subject to taxation under the provisions of this
Ordinance.
3.27.040 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.
3.27.050 Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a transactions and use
tax is hereby imposed upon all retailers in the incorporated territory of the City at the
rate of One Percent (1%) 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.
3.27.060 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,
Ordinance No. 540
Add Chapter 3.27 to Title 3 - Revenue and Finance Imposing 1% Transactions and Use Tax
Adopted: May 17, 2016
Page 3 of 8
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.
3.27.070 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 One Percent (1%) 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.
3.27.080 Ado_.ptiion of Provisiw)s of_Stote_Low.
Except as otherwise provided in this Ordinance and except insofar as they are
inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation
Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of
the Revenue and Taxation Code are hereby adopted and made a part of this
Ordinance as though fully set forth herein.
3.27.090 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 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 transactions and use tax with
respect to certain sales, storage, use or other consumption of tangible personal
property which would not otherwise be exempt from this transactions and use tax
while such sales, storage, use or other consumption remain subject to sales and use
tax by the State under the provisions of Part 1 of Division 2 of the Revenue and
Taxation Code, or;
b. Impose this transactions and use tax with respect to certain sales,
storage, use or other consumption of tangible personal property which would not be
subject to sales and use tax by the state under the said provision of that code.
Ordinance No. 540
Add Chapter 3.27 to Title 3 - Revenue and Finance Imposing 1% Transactions and Use Tax
Adopted; May 17, 2016
Page 4 of 8
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.
3.27.100 _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
Ordinance.
3.27.110 Exemptions and Exclusions.
A. There shall be excluded from the measure of the transactions and use tax
the amount of any sales 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/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:
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/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.
Ordinance No. 540
Add Chapter 3.27 to Title 3 - Revenue and Finance Imposing 1% Transactions and Use Tax
Adopted: May 17, 2016
Page 5 of 8
4. A lease of tangible personal property which is a continuing sale of such
property, for any period of time for which the lessor is obligated to lease the property
for an amount fixed by the lease prior to the operative date of this Ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, the sale or
lease of tangible personal property shall be deemed not to be obligated pursuant to a
contract or lease for any period of time for which any party to the contract or lease
has the unconditional right to terminate the contract or lease upon notice, whether or
not such right is exercised.
C. There are exempted from the use tax imposed by this Ordinance, the
storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a
transactions tax under any state -administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft
and used or consumed by such operators directly and exclusively in the use of such
aircraft as common carriers of persons or property for hire or compensation under a
certificate of public convenience and necessity issued pursuant to the laws of this
State, the United States, or any foreign government. This exemption is in addition to
the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation
Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price
pursuant to a contract entered into prior to the operative date of this Ordinance.
4. If the possession of, or the exercise of any right or power over, the
tangible personal property arises under a lease which is a continuing purchase of such
property for any period of time for which the lessee is obligated to lease the property
for an amount fixed by a lease prior to the operative date of this Ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, storage,
use, or other consumption, or possession of, or exercise of any right or power over,
tangible personal property shall be deemed not to be obligated pursuant to a contract
or lease for any period of time for which any party to the contract or lease has the
unconditional right to terminate the contract or lease upon notice, whether or not
such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in
the City shall not be required to collect use tax from the purchaser of tangible
personal property, unless the retailer ships or delivers the property into the City or
participates within the City in making the sale of the property, including, but not
limited to, soliciting or receiving the order, either directly or indirectly, at a place of
business of the retailer in the City or through any representative, agent, canvasser,
solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer
of any of the following: vehicles subject to registration pursuant to Chapter 1
(commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in
compliance with Section 21411 of the Public Utilities Code, or undocumented vessels
registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code.
Ordinance No. 540
Add Chapter 3.27 to Title 3 - Revenue and Finance Imposing 1% Transactions and Use Tax
Adopted: May 17, 2016
Page 6 of 8
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.
3.27.120 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, duration or receipt of revenues
by the City for the transactions and use tax imposed by this Ordinance.
3.27.130 Lnjoinina_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.
SECTION 2. CITIZEN OVERSIGHT. After this Ordinance becomes effective, the City
Council for the City of La Quinta, at an open and public regular or special meeting,
shall adopt a resolution that establishes a process to ensure that the revenue received
by the one percent (1%) transactions and use tax imposed under this Ordinance will
be subject to annual review by an independent citizen oversight committee, and will
remain used for the provision of services, programs and capital projects in the City of
La Quinta.
SECTION 3. SFVERABILITY. If any provision of this Ordinance or the application
thereof to any person or circumstance is held invalid, the remainder of this Ordinance
and the application of such provision to other persons or circumstances shall not be
affected thereby.
SECTION 4. EFFECTIVE DATE, This Ordinance shall become effective only upon
adoption by a majority of the people voting on the measure to adopt this Ordinance at
the general municipal election on November 8, 2016. This Ordinance shall be
considered as adopted upon the date that the vote on this Ordinance is declared by
the City Council for the City of La Quinta, and shall go into effect 10 days after that
date.
Ordinance No. 540
Add Chapter 3.27 to Title 3 - Revenue and Finance Imposing 1% Transactions and Use Tax
Adopted: May 17, 2016
Page 7 of 8
PASSED, APPROVED and ADOPTED, at a regular meeting of the La Quinta City
Council held this 17th day of May, 2016, by the following vote:
AYES: Council Members Franklin, Osborne, Pena, Radi, Mayor Evans
NOES: None
ABSENT: None
ABSTAIN: None
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
SUSAN MAYSELS, City C rk
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
ILLIAM H. IHRKE, City Attorney
City of La Quinta, California
Ordinance No. 540
Add Chapter 3.27 to Title 3 - Revenue and Finance Imposing 1%Transactions and Use Tax
Adopted: May 17, 2016
Page 8 of 8
CERTIFICATION
STATE OF CALIFORNIA }
COUNTY OF RIVERSIDE y ss.
CITY OF LA QUINTA
I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify the
foregoing to be a full, true, and correct copy of Ordinance No. 540 which was
introduced at a regular meeting on the 3rd day of May, 2016, and was adopted at a
regular meeting held on the 17th day of May, 2016, not being less than 5 days after
the date of introduction thereof.
I further certify that the foregoing Ordinance was posted in three places within the
City of La Quinta as specified in the Rules of Procedure adopted by City Council
Resolution No. 2014-013.
SUSAN MAYSELS, City ClerR
City of La Quinta, California
DECLARATION OF POSTING
I, SUSAN MAYSELS, City Clerk of the City of La Quinta, California, do hereby certify that
the foregoing ordinance was posted on May 20, 2016, pursuant to Council Resolution.
SUSAN MAYSELS, City Clerk j
City of La Quinta, California