FULL FULL TEXT OF MEASURE A

TEXT OF MEASURE A – Continued ORDINANCE ADDING CHAPTER 5.170 OF TITLE 5 TO THE MENDOCINO COUNTY CODE IMPOSING A

Sales and Use Taxes. LIBRARY SPECIAL TRANSACTIONS AND USE TAX

D. To enact a retail transactions and use tax ordinance The Board of Supervisors of the County of

that can be administered in a manner that will be, to the Mendocino ordains as follows:

greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Chapter 5.170 of Title 5 is added to the Mendocino

Code, minimize the cost of collecting the transactions County Code to read as follows:

and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to “LIBRARY SPECIAL TRANSACTIONS AND USE

taxation under the provisions of this ordinance. TAX

Section 5.170.030. Restricted Use of the Tax. Section 5.170.000. Title.

A. Proceeds from this tax shall be deposited into the This ordinance shall be known as the County of

County Treasury in a special fund entitled “Library Mendocino Library Special Transactions (Sales) and

Special Tax Fund” (herinafter the “fund”). Use Tax Ordinance. The County of Mendocino shall herinafter be called “County.” This ordinance shall be

B. Monies deposited into the fund, together with any applicable in the incorporated and unincorporated

interest that accrues thereon, shall be used exclusively territory of the County.

for preserving the existing libraries; reversing the deterioration in services at the existing libraries, Section 5.170.010. Operative Date.

upgrading of facilities, services, and collections; and extending branch library services to the unserved and “Operative Date” means the first day of the first

underserved areas of the County. The specific projects calendar quarter commencing more than 110 days after

for which the revenues from the transactions and use the adoption of this ordinance, the date of such

tax may be expended are as follows: adoption being as set forth below.

1. Maintaining local public libraries; Section 5.170.020. Purpose.

2. Restoring Open Hours at existing branches throughout the County to the level of 2006-07; This ordinance is adopted to achieve the following,

3. Expanding library programs for children and young general purposes, and directs that the provisions

adults; hereof be interpreted in order to accomplish those

4. Expanding outreach programs for individuals who purposes:

cannot easily come to a library;

5. Acquiring and replacing library equipment and A. To impose a retail transactions and use tax in

library materials. accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the

C. The revenues collected from this tax shall be used Revenue and Taxation Code and Section 7286.59 that

only to supplement existing expenditures for public authorize the County to adopt this tax ordinance which

libraries and shall not be used to supplant existing shall be operative if a two-thirds majority of the electors

funding for the support of public libraries. voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

Section 5.170.040. Contract With State.

B. To enact a retail transactions and use tax ordinance

Prior to the operative date, the County shall contract that incorporates provisions identical to those of the

with the State Board of Equalization to perform all Sales and Use Tax Law of the State of California

functions incident to the administration and operation of insofar as those provisions are not inconsistent with the

this transactions and use tax ordinance; provided, that requirements and limitations contained in Part 1.6 of

if the County shall not have contracted with the State Division 2 of the Revenue and Taxation Code.

Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the C. To enact a retail transactions and use tax ordinance

operative date shall be the first day of the first calendar that imposes a tax and provides a measure therefor

quarter following the execution of such a contract. that can be administered and collected by the State Board of Equalization in a manner that adapts itself as

Section 5.170.050. Transactions Tax Rate. fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative

For the privilege of selling tangible personal property procedures followed by the State Board of Equalization

at retail, a tax is hereby imposed upon all retailers in in administering and collecting the California State

the incorporated and unincorporated territory of the

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FULL FULL TEXT OF MEASURE A – Continued

TEXT OF MEASURE A – Continued

County at the rate of one-eighth cent (0.125%) of the

substitution shall not be made when: gross receipts of any retailer from the sale of all

1. The word “State” is used as a part of the title of tangible personal property sold at retail in said territory

the State Controller, State Treasurer, State Board of on and after the operative date of this ordinance.

Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; Section 5.170.060. Place Of Sale.

2. The result of that substitution would require action A. For the purposes of this ordinance, all retail sales

to be taken by or against this County or any agency, are consummated at the place of business of the

officer, or employee thereof rather than by or against retailer unless the tangible personal property sold is

the State Board of Equalization, in performing the delivered by the retailer or his agent to an out-of-state

functions incident to the administration or operation of destination or to a common carrier for delivery to an

this Ordinance. out-of-state destination. The gross receipts from such sales shall include delivery charges, when such

3. In those sections, including, but not necessarily charges are subject to the state sales and use tax,

limited to sections referring to the exterior boundaries regardless of the place to which delivery is made.

of the State of California, where the result of the substitution would be to: B. In the event a retailer has no permanent place of business in the State or has more than one place of

(a.) Provide an exemption from this tax with respect business, the place or places at which the retail sales

to certain sales, storage, use or other consumption of are consummated shall be determined under rules

tangible personal property which would not otherwise and regulations to be prescribed and adopted by the

be exempt from this tax while such sales, storage, use State Board of Equalization.

or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of Section 5.170.070. Use Tax Rate.

the Revenue and Taxation Code, or;

An excise tax is hereby imposed on the storage, use

(b.) Impose this tax with respect to certain sales, or other consumption in the County of tangible

storage, use or other consumption of tangible personal property purchased from any retailer on and

personal property which would not be subject to tax by after the operative date of this ordinance for storage,

the state under the said provision of that code. use or other consumption in said territory at the rate of one-eighth cent (.0125%) of the sales price of the

4. In Sections 6701, 6702 (except in the last property. The sales price shall include delivery

sentence thereof), 6711, 6715, 6737, 6797 or 6828 of charges when such charges are subject to state sales

the Revenue and Taxation Code. or use tax regardless of the place to which delivery is made.

B. The word “County” shall be substituted for the word “State” in the phrase “retailer engaged in Section 5.170.080. Adoption Of Provisions Of

business in this State” in Section 6203 and in the State Law.

definition of that phrase in Section 6203.

Except as otherwise provided in this ordinance and

Section 5.170.100. Permit Not Required. except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and

If a seller’s permit has been issued to a retailer under Taxation Code, all of the provisions of Part 1

Section 6067 of the Revenue and Taxation Code, an (commencing with Section 6001) of Division 2 of the

additional transactor’s permit shall not be required by Revenue and Taxation Code are hereby adopted and

this ordinance. made a part of this ordinance as though fully set forth herein.

Section 5.170.110. Exemptions And Exclusions.

Section 5.170.090. Limitations On Adoption Of

A. There shall be excluded from the measure of the State Law And Collection Of Use Taxes.

transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California In adopting the provisions of Part 1 of Division 2 of

or by any city, city and county, or county pursuant to the Revenue and Taxation Code:

the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered A. Whenever the State of California is named or

transactions or use tax. referred to as the taxing agency, the name of this County shall be substituted therefor. However, the

B. There are exempted from the computation of the

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FULL FULL TEXT OF MEASURE A – Continued

TEXT OF MEASURE A – Continued

amount of transactions tax the gross receipts from:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state- 1. Sales of tangible personal property, other than

administered transactions and use tax ordinance. fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the County in

2. Other than fuel or petroleum products purchased which the sale is made and directly and exclusively in

by operators of aircraft and used or consumed by such the use of such aircraft as common carriers of persons

operators directly and exclusively in the use of such or property under the authority of the laws of this

aircraft as common carriers of persons or property for State, the United States, or any foreign government.

hire or compensation under a certificate of public convenience and necessity issued pursuant to the 2. Sales of property to be used outside the County

laws of this State, the United States, or any foreign which is shipped to a point outside the County,

government. This exemption is in addition to the pursuant to the contract of sale, by delivery to such

exemptions provided in Sections 6366 and 6366.1 of point by the retailer or his agent, or by delivery by the

the Revenue and Taxation Code of the State of retailer to a carrier for shipment to a consignee at such

California. point. For the purposes of this paragraph, delivery to a point outside the County shall be satisfied:

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract (a.) With respect to vehicles (other than commercial

entered into prior to the operative date of this vehicles) subject to registration pursuant to Chapter 1

ordinance. (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with

4. If the possession of, or the exercise of any right Section 21411 of the Public Utilities Code, and

or power over, the tangible personal property arises undocumented vessels registered under Division 3.5

under a lease which is a continuing purchase of such (commencing with Section 9840) of the Vehicle Code

property for any period of time for which the lessee is by registration to an out-of-County address and by a

obligated to lease the property for an amount fixed by declaration under penalty of perjury, signed by the

a lease prior to the operative date of this ordinance. buyer, stating that such address is, in fact, his or her principal place of residence; and

5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or (b.) With respect to commercial vehicles, by

possession of, or exercise of any right or power over, registration to a place of business out-of-County and

tangible personal property shall be deemed not to be declaration under penalty of perjury, signed by the

obligated pursuant to a contract or lease for any buyer, that the vehicle will be operated from that

period of time for which any party to the contract or address.

lease has the unconditional right to terminate the contract or lease upon notice, whether or not such 3. The sale of tangible personal property if the seller

right is exercised. is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the

6. Except as provided in subparagraph (7), a retailer operative date of this ordinance.

engaged in business in the County shall not be required to collect use tax from the purchaser of 4. A lease of tangible personal property which is a

tangible personal property, unless the retailer ships or continuing sale of such property, for any period of time

delivers the property into the County or participates for which the lessor is obligated to lease the property

within the County in making the sale of the property, for an amount fixed by the lease prior to the operative

including, but not limited to, soliciting or receiving the date of this ordinance.

order, either directly or indirectly, at a place of business of the retailer in the County or through any 5. For the purposes of subparagraphs (3) and (4) of

representative, agent, canvasser, solicitor, subsidiary, this section, the sale or lease of tangible personal

or person in the County under the authority of the property shall be deemed not to be obligated pursuant

retailer. 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.

7. “A retailer engaged in business in the County” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this County of tangible personal property:

(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

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IMPARTIAL FULL TEXT OF MEASURE A – Continued

ANALYSIS OF MEASURE A

(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 County.

APPROVING ORDINANCE ESTABLISHING A LIBRARY SPECIAL TRANSACTIONS (SALES) AND USE TAX

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 County 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.

This ballot measure seeks voter approval for the adoption of an ordinance which would impose a special one-eighth cent (.0125%) sales tax that would be applicable in both the unincorporated and incorporated areas in the County of Mendocino. If approved by two-thirds (2/3) of the voters this measure would result in a total sales tax in the unincorporated area of the county increasing from 8.25% to 8.375% and in the Cities of Willits, Fort

Section 5.170.120. Amendments.

Bragg, Ukiah and Point Arena the total sales tax will increase from 8.75% to 8.875%. On a purchase of

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

$100 the increase would be approximately thirteen cents ($.13) in the unincorporated areas, and approximately thirteen cents ($.13) in the cities.

which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.

State law allows a county to seek voter approval for this special tax to preserve existing libraries. The specific projects for which the revenues from this tax may be expended are as follows: maintaining local public libraries; restoring open hours at existing branches throughout the County to the level of 2006- 07; expanding library programs for children and young

Section 5.170.130. Enjoining Collection Forbidden.

adults; expanding outreach programs for individuals who cannot easily come to a library; acquiring and replacing library equipment and library materials.

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 County, or against any officer of the State or the County, to prevent or enjoin the collection under this

Under State law the revenues collected from this tax shall be used only to supplement existing expenditures for public libraries and shall not be used to supplant existing funding for the support of public libraries.

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.

The tax will be administered by the California State Board of Equalization pursuant to a contract with the County. Because of the time required by the State to

Section 5.170.140. Severability.

begin collecting the tax, the ordinance does not become operative until the first calendar quarter

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

commencing more than 110 days after it is approved by the voters. If approved at the November 8, 2011 election, the tax would become operative on April 1, 2012. The tax imposed by the ordinance will automatically sunset and will no longer be collected sixteen (16) years after it becomes operative.

Section 5.170.150. Sunset.

This measure requires voter approval by a two-

The Tax imposed by this Chapter shall be imposed

thirds (2/3) vote of the qualified voters.

for sixteen (16) years from the Operative Date of the tax as set forth in this ordinance and, thereafter, shall no longer be imposed.

A YES vote will be a vote in favor of adoption of the proposed ordinance.

Section 5.170.160. Effective Date.

A NO vote will be a vote against the adoption of the proposed ordinance.

This ordinance shall take effect upon adoption by a two-thirds vote of the electorate.

s/Jeanine B. Nadel Jeanine B. Nadel, County Counsel

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