Measure TT, if approved by the voters at the March 3, 2020 general municipal election, would add a new Chapter 3.22 to the City of Bell's Municipal Code, titled "Bell Services Preservation Measure," imposing a three quarters of a cent per dollar (0.75%) transactions and use tax (i.e., sales tax) for City general fund purposes.
State law allows certain entities including municipalities to increase sales taxes, which under Proposition 218 needs to be done by a vote of the people. Specifically, Measure TT places a tax of 0.75% upon retailers' gross receipts from the retail sale of most tangible personal property sold within the City, and an excise tax upon the storage, use or other consumption of tangible personal property purchased from any retailer for storage, use or other consumption within the City. The rate permitted is 0.75% of the sales price of the property, where "sales price" includes delivery charges subject to State sales or use tax, regardless of delivery destination.
In 2010, the City was exposed to a national scandal in which its top two management employees went to jail and the entire City Council was replaced. The City lost all reserves and faced $78M in claims. The citizens reformed the City Charter and replaced the officials, and all the claims were resolved. However, in the last three years City revenues have been flat, while expenses have grown, producing destabilizing deficits which again threaten City finances.
It is estimated that revenues from this tax will generate approximately $1,500,000 annually for the funding of general City services. Funds generated by the proposed tax would be placed in the City's general fund, are not restricted, and may be used for any City general fund purposes, which include, but are not limited to:
- Improving emergency response times,
- Crime and vandalism prevention,
- Street improvements and traffic flow,
- Parks and recreational facilities and services,
- Beautification and safety of public areas.
Food purchased as groceries and prescription medication will not be taxed under this measure. Visitors to Bell will bear part of the tax burden imposed by their local activities and thus contribute to the City's ability to maintain general public services they use while visiting. Residents and other purchasers of goods in the City will also be subject to the tax. The specific retail sales and uses subject to the tax would be determined under the regulations of the California Department of Tax and Fee Administration ("CDTFA") and the tax would be administered by the CDTFA under contract with the City of Bell.
A "YES" vote is a vote to approve a 0.75% retail transactions and use general tax. A "NO" vote is a vote against a 0.75% retail transactions and use general tax. The transactions and use tax proposed by Measure TT would take effect only if it receives a majority "YES" vote at the March 3, 2020, general election.
