Marin County

Measure A Ordinance - 2/3 Approval Required

COUNTY OF MARIN TRANSACTIONS AND USE TAX ELECTION

This measure was placed on the ballot by the Marin County Board of Supervisors to approve an ordinance imposing a one-quarter of one percent transactions and use tax. If approved, this ordinance will raise annual revenue of approximately $12,000,000 for the purpose of providing preschool education, childcare, healthcare and extended learning/afterschool.

California Revenue and Taxation code section 7285.93 authorizes the County to levy a transactions and use tax if the ordinance proposing the tax is approved by a two-thirds vote of the Board of Supervisors and a two-thirds vote of the qualified voters of the entire County who vote in the election. The Board of Supervisors unanimously approved the ordinance on July 26, 2016. If two-thirds of the voters in the County who vote on this measure vote “Yes,” the tax will be levied beginning April 1, 2017 and continuing for a period of nine years.

The expenditure of the revenue generated by the tax shall be restricted to the purposes set forth in the ordinance’s expenditure plan and will be subject to oversight by a community committee.

s/STEVEN M. WOODSIDE
County Counsel

By s/Sheila Lichtblau, Deputy County Counsel

RESOLUTION NO. 2016-85
RESOLUTION OF THE MARIN COUNTY BOARD OF SUPERVISORS CALLING FOR AN ELECTION TO SUBMIT ORDINANCE NO. 3653 FOR APPROVAL BY THE VOTERS IN MARIN COUNTY THAT IMPOSES AND COLLECTS A ONE-QUARTER OF ONE PERCENT TRANSACTIONS AND USE TAX FOR A NINE-YEAR PERIOD FOR THE PURPOSE OF PROVIDING QUALITY PRESCHOOL EDUCATION, CHILD CARE, HEALTHCARE AND EXTENDED LEARNING/AFTERSCHOOL.

WHEREAS, access to quality preschool, comprehensive health care and wellness services, child care and afterschool academic support is linked to higher academic achievement, successful careers and healthy, economically vibrant communities; and

WHEREAS, research consistently shows that attending quality preschool has lasting, positive impacts on student reading and math scores and dramatically reduces dropout rates; and

WHEREAS, making sure children have an early start in the right direction is a sound investment saving us much more expensive costs down the line such as remedial education, social services or even incarceration; and

WHEREAS, contrary to popular belief, many Marin County children do not have access to critical building blocks of quality preschool, affordable child care, comprehensive healthcare services and afterschool/summer academic support, and only 35% of economically disadvantaged children read at grade level in Marin; and

WHEREAS, Pursuant to California Government Code Section 50075 et seq., Revenue and Taxation Code Section 7285.5, and in compliance with California Consti­tution Article XIIIC, the Board of Supervisors is authorized to establish and impose a transactions and use tax, if approved by the voters, upon retail transactions involving the sale and use of personal property; and

WHEREAS, the transactions and use tax (sales tax), if approved, would be imposed on the sale of tangible personal property and the storage, use or other consumption of such property. The tax rate would be one-quarter of one percent (.25%) of the sales price of the property. The tax revenue would be collected by the State Board of Equalization and remitted to the County. The tax would be in effect for nine (9) years, and would then expire automatically, unless extended by the voters. The tax shall be approved if the measure receives approval by a two-thirds majority of the electors voting on the measure; and

WHEREAS, the Marin County Board of Supervisors conducted the first reading of Ordinance 3653, known as the Marin Strong Start For Kids Transactions and Use Tax Ordinance, including the Marin Strong Start For Kids Expenditure Plan (“Expenditure Plan”), attached as Exhibit A on July 26, 2016 and conducted the merit hearing on August 2, 2016.

NOW, THEREFORE, BE IT RESOLVED, that Ordinance 3653, known as the Marin Strong Start For Kids Transactions and Use Tax Ordinance including the Expenditure Plan as Exhibit A, be submitted to the voters in Marin County in the General Election on November 8, 2016. The question submitted to the voters shall be read substantially as follows:

“To support the health, education and safety of underserved children with ap­proximately $12,000,000 in annual local funding the State cannot take away, shall County of Marin expand access to quality preschool education; provide healthcare including early screenings, vision, dental and behavioral/mental health services; expand afterschool/summer learning programs promoting reading/writing/math achievement; and provide affordable childcare for infants, toddlers and young children by enacting a ¼% sales tax for 9 years with independent oversight/audits?”

BE IT FURTHER RESOLVED THAT pursuant to Elections Code 10400 et seq., the election for this measure shall be consolidated with the election to be conducted on November 8, 2016.

BE IT FURTHER RESOLVED THAT pursuant to the provisions of Elections Code Section 1002, the Board of Supervisors authorizes and directs the Marin County Clerk/Registrar of Voters to render all services necessary for the conduct of the election.

BE IT FURTHER RESOLVED THAT the Registrar of Voters is hereby requested to publish the ballot question and entire Ordinance, including Exhibit A, in the voter information pamphlet; and

BE IT FURTHER RESOLVED THAT the Marin County Counsel is hereby requested to prepare an impartial analysis of the Measure.

BE IT FURTHER RESOLVED THAT the sales tax shall be deemed established and shall become operative on April 1, 2017 upon certification of the election results evidencing approval by at least two-thirds of the electors voting on the measure.

BE IT FURTHER RESOLVED THAT this resolution shall be liberally construed to achieve its purposes and preserve its validity. If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this resolution. The Board of Supervisors hereby declares that it would have passed this resolution and every section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or invalid.

PASSED AND ADOPTED at a regular meeting of the Board of Supervisors of the County of Marin held on this 2nd day of August 2016, by the following vote:

YES: SUPERVISORS Judy Arnold, Katie Rice, Damon Connolly, Kathrin Sears, Steve Kinsey

NOES: NONE
ABSENT: NONE

s/STEVE KINSEY
President, Board of Supervisors

ATTEST:
s/MATTHEW HYMEL
Clerk

ORDINANCE OF THE MARIN COUNTY BOARD OF SUPERVISORS IMPOSING A ONE-QUARTER OF ONE PERCENT RETAIL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF ­EQUALIZATION FOR THE PURPOSE OF PROVIDING QUALITY PRESCHOOL EDUCATION, CHILD CARE, HEALTHCARE AND EXTENDED LEARNING/AFTERSCHOOL

THE BOARD OF SUPERVISORS OF THE COUNTY OF MARIN ORDAINS AS FOLLOWS:

SECTION 1. TITLE.
This Ordinance shall be known as the Marin Strong Start For Kids Transactions and Use Tax Ordinance. The County of Marin hereinafter shall be called "County." This Ordinance shall be applicable in the incorporated and unincorporated territory of the county.

SECTION 2. EFFECTIVE DATE; OPERATIVE DATE.
A. This Ordinance shall become effective upon its approval by a two-thirds majority of the electors voting on the measure.

B. This Ordinance shall become operative on April 1, 2017 ("Operative Date"); provided, however, that the Strong Start Expenditure Plan ("Expenditure Plan"), attached hereto as Exhibit "A," shall become operative on the effective date of this Ordinance.

SECTION 3. 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 7285.5 of Part 1.7 of Division 2 which authorizes the county to adopt this tax Ordinance which shall be operative if two-thirds 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.

SECTION 4. EXPENDITURE PLAN; LIMITATION OF EXPENDITURES; FISCAL OVERSIGHT.
Pursuant to the requirements of Government Code §50075.1, (1) the Expenditure Plan constitutes the statement of the specific purposes for which the revenue generated by this Ordinance may be expended, (2) the expenditure of the revenue generated by this Ordinance shall be restricted to the purposes stated in Exhibit "A," (3) the revenue generated by this Ordinance shall be deposited into the " Special Tax Account," and (4) the County Depart­ment of Finance shall prepare and file with the Board of Supervisors reports meeting the requirements of Govern­ment Code §50075.3.

SECTION 5. 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.

SECTION 6. 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 per cent (0.25%) 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.

SECTION 7. 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, 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.

SECTION 8. 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 after the operative date of this Ordinance for storage, use or other consumption in said territory at the rate of one quarter of one percent (0.25%) 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.

SECTION 9. 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.

SECTION 10. 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 County shall be substituted therefore. 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 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 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. a. 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.

SECTION 11. 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.

SECTION 12. 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 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 County shall be satisfied:
   1. 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-County 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
   2. 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 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 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 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 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. Ordinance No. 3586 Page 4 of 10
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.

SECTION 13. USE OF PROCEEDS.
The proceeds of the taxes imposed by this ordinance shall be used solely for the projects and purpose set forth in the Expenditure Plan attached as "Exhibit A" and for the administration thereof.

SECTION 14. 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 of tax imposed by this ordinance.

SECTION 15. 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.

SECTION 16. 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.

SECTION17. PUBLICATION.
Within fifteen (15) days of its passage, the clerk shall publish a summary of this ordinance with the names of those supervisors voting for and against the matter, and the clerk shall make available to the public, upon request, a certified copy of the full text of the ordinance along with the names of those supervisors voting for and against the ordinance.

SECTION 18. APPROPRIATIONS LIMIT.
Any proceeds distributed from the Special Tax Account are deemed taxes of the receiving taxing agency and where appropriate, subject to Article XIIIB of the California Constitution (Gann limit).

SECTION 19. TERMINATION DATE.
The authority to levy the tax imposed by this Ordinance shall expire nine years from the operative date of this Ordinance.

PASSED AND ADOPTED at a regular meeting of the Board of Supervisors of the County of Marin held on this 2nd day of August 2016 by the following vote:

AYES: SUPERVISORS Judy Arnold, Katie Rice, Damon Connolly, Kathrin Sears, Steve Kinsey

NOES: NONE
ABSENT: NONE

s/STEVE KINSEY
President, Board of Supervisors

ATTEST:
s/MATTHEW HYMEL
Clerk