ORDINANCE 1566ORDINANCE NO. 1566
PROPOSITION AUTHORIZING IMPOSITION OF A THREE-QUARTER
CENT TRANSACTIONS AND USE TAX (SALES TAX) TO FUND
GENERAL MUNICIPAL SERVICES, INCLUDING, WITHOUT
LIMITATION, POLICE AND FIRE SERVICES, RAPID RESPONSE TO
EMERGENCIES, SERVICES TO SENIOR CITIZENS, RECREATION
FIELDS AND SERVICES AND MAINTENANCE AND REPAIR OF CITY
STREETS AND LANDSCAPING TO BE ADMINISTERED BY THE STATE
BOARD OF EQUALIZATION.
The people of the city of El Segundo do ordain as follows:
SECTION 1: A new Chapter 3-8 is added to Title 3 of the El Segundo Municipal Code
("ESMC) to read as follows:
"Chapter 8. Transactions and Use Tax
3-8-010: TITLE. This Chapter is entitled the "El Segundo Transactions and Use
Tax." The term "City," as used within this Chapter, is the city of El Segundo.
This Chapter is applicable in the incorporated territory of the City.
3-8-020: OPERATIVE DATE. "Operative Date" means the first day of the first
calendar quarter commencing more than 110 days after the adoption of this Chapter,
the date of such adoption being as set forth below.
3-8-030: PURPOSE. This Chapter is adopted to achieve the following, among
other purposes, and directs that its provisions 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 of
the Revenue and Taxation Code which authorizes the City to adopt this
Chapter which becomes operative if a majority of the electors voting on the
ballot measure approving the Chapter vote to approve the imposition of the
tax at an election called for that purpose.
B. To adopt retail transactions and use tax regulations 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.
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C. To adopt retail transactions and use tax regulations 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.
3-8-040: CONTRACT WITH STATE. Before the operative date, the City must
contract with the State Board of Equalization to perform all functions incident to the
administration and operation of this Chapter; provided, that if the City has not contracted
with the State Board of Equalization before the operative date, it must nevertheless so
contract and in such a case the operative date is the first day of the first calendar quarter
following the execution of such a contract.
3-8-050: TRANSACTIONS TAX RATE. For the privilege of selling tangible personal
property at retail, a transaction tax is hereby imposed upon all retailers in the incorporated
territory of the City at the rate of 0.75% 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.
3-8-060: 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 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
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 is determined under rules and regulations to
be prescribed and adopted by the State Board of Equalization.
3-8-070: USE TAX RATE. A use tax is 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 0.75% of the sales price of the property. The sales price includes
delivery charges when such charges are subject to state sales or use tax regardless of
the place to which delivery is made.
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3-8-080: ADOPTION OF PROVISIONS OF STATE LAW. 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
adopted and made a part of this Chapter as though fully set forth.
3-8-090: 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 will be substituted. However, the substitution
is not made when:
The word "State" is used as a part of the title of the State Controller,
State Treasurer, State Board of Control, State Board of Equalization,
State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or
against this City or any agency, officer, or employee thereof rather
than by or against the State Board of Equalization, in performing the
functions incident to the administration or operation of this 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, 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.
& The word "City" is 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.
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3-8-100: 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
is not required by this Chapter.
3-8-110: EXEMPTIONS AND EXCLUSIONS.
A. There is 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 is satisfied:
a. With respect to vehicles (other than commercial vehicles)
subject to registration pursuant to Chapter 1 (commencing with
Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in
compliance with Section 21411 of the Public Utilities Code, and
undocumented vessels registered under Division 3.5 (commencing
with Section 9840) of the Vehicle Code by registration to an out -of -
City address and by a declaration under penalty of perjury, signed by
the buyer, stating that such address is, in fact, his or her principal
place of residence; and
b. With respect to commercial vehicles, by registration to a place
of business out -of -City and declaration under penalty of perjury,
signed by the buyer, that the vehicle will be operated from that
address.
3. The sale of tangible personal property if the seller is obligated to
furnish the property for a fixed price pursuant to a contract entered
into before the operative date of this ordinance.
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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 before 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 is 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:
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 before 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
before 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 is 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.
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6. Except as provided in subparagraph (7), a retailer engaged in
business in the City is not 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, without limitation, 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" also includes 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 is 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.
3-8-120: 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, automatically become a part of this Chapter,
provided however, that no such amendment operates so as to affect the rate of tax
imposed by this ordinance.
3-8-130: ENJOINING COLLECTION FORBIDDEN. No injunction or writ of
mandate or other legal or equitable process may issue in any suit, action or proceeding
in any court against the State or the City, or against any officer of the State or the City, to
prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the
Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
3-8-140: AUTOMATIC SUSPENSION, IMPLEMENTATION. The taxes authorized
by this chapter are subject to the following:
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A. For purposes of this Section, the term "district" has the meaning set forth in
Revenue and Taxation Code § 7252 to the extent such a district may have
taxing powers within the City's jurisdiction under applicable law. For
example, and without limitation, the County of Los Angeles is a district for
purposes of this Section.
B. The City will suspend collection of the taxes authorized by this chapter so
long as a district does not place a measure on the ballot seeking voter
authorization for a new or increased 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 Sections 7285 or
7285.5 of Part 1.7 of Division 2 of the Revenue and Taxation Code.
C. Should a district place a transaction and use tax measure on the ballot as
contemplated by Subsection B, then the City will promptly commence
collection of the taxes authorized by this chapter.
D. Should a ballot measure contemplated by Subsection C fail to become
effective then, notwithstanding any other provision of this chapter, the City
will suspend collection of the taxes authorized by this chapter.
E. Nothing in this Section is intended to, nor will it, limit the number of times
the City may suspend or implement tax collection authorized by this chapter
based upon the actions contemplated in Subsections B through C.
F. Revenue from any taxes collected between the time periods contemplated
by Subsections B through D may be retained by the City for general
purposes and need not be refunded.
3-8-150: SUSPENSION OR REDUCTION. Nothing in this Chapter requires the City
Council to collect a tax; the city council may suspend or reduce tax rates imposed by this
chapter by resolution after a public hearing.
3-8-160: CITY COUNCIL AUTHORITY TO AMEND. Except for amendments that
would increase the tax rate, impose the tax on transactions and uses not previously
subject to the tax, or be inconsistent with the purposes of this chapter, the City Council
may exercise all applicable powers set forth in the Government Code including, without
limitation, amending this chapter by ordinance upon three affirmative votes by its
members. It may, in additional, adopt by ordinance or resolution such additional
regulations that may be necessary to implement the purposes of this chapter."
SECTION 2: Environmental Analysis. This Proposition is exempt from review under the
California Environmental Quality Act (California Public Resources Code §§ 2100, et seq.,
"CEQK) and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.)
because it establishes rules and procedures to implement government funding
mechanisms; does not involve any commitment to a specific project which could result in
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a potentially significant physical impact on the environment; and constitutes an
organizational or administrative activity that will not result in direct or indirect physical
changes in the environment. Accordingly, this Resolution does not constitute a "project"
that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).
SECTION 1 Continuity. Repeal of any provision of the El Segundo Municipal Code does
not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and
imposition of penalties for any violation occurring before this Ordinance's effective date.
Any such repealed part will remain in full force and effect for sustaining action or
prosecuting violations occurring before the effective date of this Ordinance.
SECTION 4: Severability. If any part of this Ordinance or its application is deemed
invalid by a court of competent jurisdiction, the city council intends that such invalidity will
not affect the effectiveness of the remaining provisions or applications and, to this end,
the provisions of this Ordinance are severable.
SECTION 5: Validity of Previous Code Sections. If this the entire Ordinance or its
application is deemed invalid by a court of competent jurisdiction, any repeal of the ESMC
or other regulation by this Ordinance will be rendered void and cause such ESMC
provision or other regulation to remain in full force and effect for all purposes.
SECTION 6: Voter Approval. This Proposition will enact and impose a general tax.
Accordingly, it will be submitted to a general election on April 10, 2018 for voter approval.
If a majority of voters vote in favor of this Proposition, it will become valid and binding on
the date that the City Council certifies the election results. Should the provisions of
Government Code §§ 53720 et seq. or California Constitution Article XIIIC be repealed
or amended, or interpreted by the courts so that voter approval is not required for enacting
this Ordinance, then this Ordinance will take effect as provided for all other City
ordinances and may be amended in the same manner as all other City ordinances.
SECTION 7: Miscellaneous.
A. This Proposition must be interpreted so as to be consistent with all federal
and state laws, rules, and regulations. If any section, sub -section,
sentence, clause, phrase, part, or portion of this Proposition is held to be
invalid or unconstitutional by a final judgment of a court of competent
jurisdiction, such decision does not affect the validity of the remaining
portions of this Proposition. The voters declare that this Proposition, and
each section, sub -section, sentence, clause, phrase, part, or portion
thereof, would have been adopted or passed irrespective of the fact that
any one or more sections, sub -sections, sentences, clauses, phrases, part,
or portion is found to be invalid. If any provision of this Proposition is held
invalid a4s applied to any person or circumstance, such invalidity does not
affect any application of this Proposition that can be given effect without the
invalid application.
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B. If any portion of this Proposition is held by a court of competent jurisdiction
to be invalid, we the People indicate our strong desire that: (i) the City
Council use its best efforts to sustain and reenact that portion, and (ii) the
City Council implement this Proposition by taking all steps possible to cure
any inadequacies or deficiencies identified by the court in a manner
consistent with the express and implied intent of this Proposition, and then
adopting or reenacting such portion as necessary or desirable to permit the
planning and development of the Project.
C. This Proposition must be broadly construed in order to achieve the
purposes stated in this Proposition. It is the intent of the voters that the
provisions of this Proposition be interpreted or implemented by the City and
others in a manner that facilitates the purposes set forth in this Proposition.
SECTION 8: The Mayor will sign this Ordinance and the City Clerk will attest and certify
to the passage and adoption of this Ordinance if a majority of the voters voting in the
City's general election on April 10, 2018 approve the proposition asking whether the
voters approve this Ordinance.
SECTION 9. Pursuant to Revenue and Taxation Code § 7265, this Ordinance will
become operative on the first day of the first calendar quarter commencing more than
110 days after the adoption of this Ordinance.
ADOPTED BY THE ELECTORATE AT THE GENERAL MUNICIPAL ELECTION HELD
APRIL 10, 2018.
Drew ogle or Pro Tern
ATTEST;
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the foregoing Ordinance No. 1566 was duly and regularly passed, approved, and adopted
by the electors of the City of El Segundo, California, at the General Municipal Election
held in said City on Tuesday, the 10th day of April, 2018, and that it was so passed and
adopted by the following vote at said election to wit:
Machine Tally Hand Tally Difference"
"YES," 467 470 3
"NO," 91 93 2
"Difference is related to a ballot over marked or under marked.
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And that, therefore, more than a majority of the electors voting upon the adoption of said
ordinance having voted in favor thereof, the said ordinance shall accordingly become
effective according to its terms and a provided by law.
Trac Weaver it Clerk
Y k
APPROVED TO FORM:
Mark. Hensley, City Attorney
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