CITY ATTORNEY IMPARTIAL ANALYSIS OF MEASURE TBD
If adopted by voters, Measure TBD would amend the California City Municipal Code (CCMC) to establish a one-cent Transactions and Use Tax (the “Sales Tax”) in the City of California City. The Measure was added to the ballot by a four-fifths vote of the City Council and would add Division 6 (City of California City Transactions and Use (Sales) Tax) to Article 1 of Chapter 2 of Title 3 of the California City Municipal Code.
The tax would be assessed on the sale of tangible personal property and the storage, use, or other consumption of such goods. If approved, the sales tax would become effective and begin collection on or after 110 days following the adoption of the measure by the electorate, and would remain in effect in perpetuity unless decided otherwise by the voters.
This tax would be a general tax, meaning that revenues raised from the tax would go into the City’s general fund and could be used for any general governmental purpose of the City, such as maintaining neighborhood police patrols, fire protection, 911 emergency response times, maintaining crime suppression and investigation, city streets and pothole repair, parks and recreation, job creation and economic improvement programs, and senior and youth services.
If passed, Measure TBD would amend the CCMC to impose the Sales Tax. The tax would be paid in addition to current sales taxes and would be collected at the same time and in the same manner as existing sales taxes. Both City residents and visitors would pay this tax on retail sales activity in California City. Certain necessities of life, such as groceries or prescription medicine, would be exempt from the tax. By law, all revenues raised by the Measure would belong to the City of California City and could not be taken by the State or any other governmental agency.
The City estimates that the proposed sales tax will generate approximately $700,000 annually.
The Measure would also require that such Sales Tax revenues be subject to a Citizens’ Oversight Committee and annual independent audits with public review. The Measure requires that the City:
- Direct the City’s independent auditors to review the collection and expenditure of sales tax revenues and report to the City Council as part of the annual budget adoption process;
- Appoint a Citizen’s Oversight Committee to conduct an annual review of the sales tax revenues and expenditures of the funds.
Measure TBD requires approval of a simple majority of voters (greater than fifty percent (50%)).
A “yes” vote is a vote to adopt the tax.
A “no” vote is a vote against the tax.
/s/ Victor M. Ponto, City Attorney
City of California City
The above statement is an impartial analysis of Measure TBD. The full text of Measure TBD is printed in the voter information guide and is also available on the City of California City’s website at: http://www.californiacity-ca.gov. If you desire a copy of the Measure, please call the City Clerk’s office at (760) 373-7140 and a copy will be mailed at no cost to you.