On December 5, 2019, the City Council unanimously voted to place Measure "AA" on the March 3, 2020 special municipal election ballot. If approved by a majority of Artesia voters, this Measure would authorize a three-quarters percent (3/4%) retail transactions and use (sales) tax within the City of Artesia. A 3/4% rate equates to an extra 75¢ per $100 purchased. It is estimated that Measure "AA" will provide an additional $2,200,000 in annual local funding for general City services such as public safety, parks and recreation services, and maintaining public infrastructure such as streets, sidewalks, parks and facilities. This tax would be a "general tax," meaning that revenues raised from the tax would go into the City's general fund to pay for any lawful City program, improvement, or service.
California Revenue and Taxation Code section 7285.9 authorizes the City to levy a general transactions and use/sales tax at a rate of three-quarters percent (3/4%) so long as the tax is approved by at least two-thirds (2/3) of all members of the City Council and a majority of the voters voting in an election on that issue. If approved, the tax would become operative on October 1, 2020. Measure "AA" would remain in effect until ended by Artesia voters voting at a subsequent election.
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. All revenues raised by the tax would remain in the City and would not be shared with the State, County or any other agency.
Measure "AA" requires annual independent audits to verify that tax revenues are collected, managed and expended in accordance with its terms.
By placing Measure "AA" on the ballot, the City complies with Article XIIIC of the California Constitution (Proposition 218), which requires a majority of the voters to approve an ordinance which establishes a general tax.
A "yes" vote on Measure "AA" will authorize the 3/4% transactions and use (sales) tax.
A "no" vote on Measure "AA" will not authorize the 3/4% transactions and use (sales) tax.
If Measure "AA" is not approved, the General Fund will not receive the sales tax revenues identified in the Measure. The City Council will then have to decide, as part of the budgeting process, whether other revenues are available to pay for City programs and services, or whether City programs and services will have to be reduced.
