Napa County

Measure Y Ordinance - Majority Approval Required

Should Ordinance 2016-01 be adopted? (If adopted, would enact a one-quarter of one percent sales tax for 10 years for general county purposes, such as correctional facilities for mental health/addiction treatment and job training for offenders to re-enter society as productive citizens; help fight the influence of gangs; reduce jail crowding to prevent early release of inmates; improve officer safety; support programs that improve the wellbeing of children; or other essential services within Napa County.)

MEASURE “Y”

COUNTY COUNSEL’S IMPARTIAL ANALYSIS

Napa County has proposed a general transactions and use tax (“sales tax”) of one-quarter of one percent (0.25%). The tax would be levied for no more than ten years.

State law authorizes the County to levy a sales tax if the ordinance proposing the tax is approved by a two-thirds Vote of all members of the Board of Supervisors and the tax is approved by a majority of the qualified voters of the entire county who vote in the election. The Board of Supervisors unanimously approved the tax on March 8, 2016. If a majority of the voters in the County who vote on this measure vote “Yes,” the measure will pass and the sales tax will be levied beginning January 1, 2017.

The measure does not restrict use of the tax revenue to any single purpose. The revenue generated by this general tax would be deposited into the County General Fund and would be 

annually appropriated by the Board of Supervisors for general governmental purposes. For instance, as stated in the ballot, the sales tax revenue could be used for correctional facilities for mental health/addiction treatment and job training for offenders, to help fight the influence of gangs, to reduce jail crowding to prevent early release of inmates, to improve officer safety, to support programs that improve the wellbeing of children, or other essential services within Napa County.

The current sales tax throughout Napa County is 8%, which means that if adopted, Measure Y would increase the sales tax rate to 8.25% beginning January 1, 2017. Like the current sales tax, the tax would be imposed on all retailers in the incorporated and unincorporated county on sales of tangible personal property, subject to certain exemptions and exclusions identified in the measure.

Respectfully submitted,

/S/

Minh Tran

Napa County Counsel

ORDINANCE NO. 2016-01

AN ORDINANCE OF NAPA COUNTY IMPOSING A TRANSACTIONS

AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF

EQUALIZATION

The People of Napa County ordain as follows:

SECTION 1. A new Chapter 3.30 Napa County Corrections, Infrastructure and Other

Essential Services is hereby added to Title 3 of the Napa County Code to read in full as follows:

Chapter 3.30

CORRECTIONS, INFRASTRUCTURE AND OTHER ESSENTIAL SERVICES

Sections:

3.30.010 Title.

3.30.020 Operative Date.

3.30.030 Purpose.

3.30.040 Contract With State.

3.30.050 Transactions Tax Rate.

3.30.060 Place of Sale.

3.30.080 Adoption of Provisions of State Law.

3.30.090 Limitations On Adoption of State Law and Collection of Use Taxes.

3.30.100 Permit Not Required.

3.30.110 Exemptions and Exclusions.

3.30.120 Amendments.

3.30.130 Enjoining Collection Forbidden.

3.30.140 Use of the Taxes.

3.30.150 Increase of Appropriations Limit.

3.30.160 Severability.

3.30.170 Effective Date.

3.30.180 Termination Date.

3.30.010 Title.

This ordinance shall be known as the Napa County Corrections, Infrastructure and Other Essential Services Ordinance. This ordinance shall be applicable in the incorporated and unincorporated territory of the county.

3.30.020 Operative Date.

"Operative Date" means January 1, 2017, a date not less than one hundred ten days afler the date of adoption of this ordinance.

3.30.030 Purpose.

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 and Taxation Code and Section 7285 of Part 1.7 of Division 2 which authorizes the county 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 therefor 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.

3.30.040 Contract With State.

Prior to the operative date, the county 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 county 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.

3.30.050 Transactions Tax Rate.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed

upon all retailers in the incorporated and unincorporated territory of the county at the rate of one-quarter of one percent 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.

3.30.060 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 that person’s 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 State Board of

Equalization.

3.30.070 Use Tax Rate.

An excise tax is hereby imposed on the storage, use or other consumption in the county of tangible personal property purchased from any retailer on and afier the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-quarter 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.

3.30.080 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 hereby adopted and made a part of this ordinance as though fully set forth herein.

3.30.090. Limitations On Adoption of State Law and Collection of Use Taxes.

In adopting the provisions of Part I 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 county 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, Victim Compensation & Government Claims Board, 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

county 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 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.

B. The word "County" 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.

3.30.100 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.

3.30.110 Exemptions and Exclusions.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and

county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the

amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the county which is shipped to a point outside the county, pursuant to the contract of sale, by delivery to such point by the retailer or that person’s agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this section, delivery to a point outside the county 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 35 (commencing with Section 9840) of the

Vehicle Code by registration to an out-of-county address and by a declaration under penalty of

perjury, signed by the buyer, stating that such address is, in fact, that person’s principal place of

residence; and

b. With respect to commercial vehicles, by registration to a place of business out-of-

county 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.

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 subsections (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 county 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 subsection (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 subsection (7), a retailer engaged in business in the county

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 county or participates within the county 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 county or through any

representative, agent, canvasser, solicitor, subsidiary, or person in the county under the authority of the retailer.

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 (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 county.

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.

3.30.120 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 L7 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.

3.30.130 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 county, or against any officer of the

State or the county, 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.

3.30.140 Use of the Taxes.

The tax imposed by this ordinance is a general tax within the meaning of article XIII C,

section 1(a) of the California constitution. The revenue generated by this general tax is available

for general governmental purposes and shall be paid into the general fund for use by the county.

3.30.150 Increase of Appropriations Limit.

The appropriations limit of the county shall be increased by the amount of the revenue

anticipated to be collected by the county from the transactions and use tax to allow spending of

the tax revenue for the period allowed by law.

3.30.160 Severability.

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.

3.30.170 Effective Date.

This ordinance relates to the levying and collecting of the county transactions and use

taxes and shall take effect immediately upon passage.

3.30.180 Termination Date.

The authority to levy the tax imposed by this ordinance shall expire ten years from the operative date of this ordinance.