The Culver City City Council has placed Measure CC on the ballot, approving an amendment to an existing ordinance, which would continue the one-half cent (0.5%) City Services Transactions and Use Tax approved by Culver City voters in 2012, for an additional ten years. Adopting the Measure would extend the current expiration date from March 31, 2023 to March 31, 2033. This type of tax is also commonly referred to as a "sales" tax. If the measure is approved by the voters, some of the services and programs that may continue to receive funding include: police, fire, senior services, homeless services, streets, parks, recreation and other general city services. This tax is a "general tax," not a "special tax," and may be used for any valid municipal purpose. Such general tax revenues are deposited into the City's General Fund and do not go to the State.
Technically, the existing "sales tax" is a combination of "sales and use tax" and "transactions and use tax." Both are levied on the retail sale or use of tangible personal property, with certain limited exceptions. Currently, the sales tax in Culver City is a total of 10.25% of the purchase price. The City of Culver City receives 1.75% of the total tax. The remaining 8.5% goes to the State and County. If Measure CC is adopted, the total Culver City sales tax rate and apportionment would remain the same. Under this Measure, the one-half cent tax would automatically expire in 2033, unless extended by the voters at a subsequent election.
Under Measure CC, the one-half cent tax would continue to be collected at the same time and in a similar manner as the existing sales tax and will continue to be administered by the State Board of Equalization. This tax is paid by nonresidents, as well as residents. Like other Culver City revenues, the tax would continue to be subject to annual independent audits.
To be adopted, State law requires that this Measure be approved by a majority of the voters. A "Yes" vote on Measure CC would continue the one-half cent City Services Transactions and Use Tax in Culver City, for an additional ten years, terminating in 2033. A "No" vote would not adopt a continuation of the tax.