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March 3, 2020 — Primary Election
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Local

City of Lemon Grove
Measure S Ordinance - Majority Approval Required

To learn more about measures, follow the links for each tab in this section. For most screenreaders, you can hit Return or Enter to enter a tab and read the content within.

Election Results

Failing

2,756 votes yes (42.5%)

3,723 votes no (57.5%)

Shall the City of Lemon Grove Add a Three-Quarter (3/4) Cent Transactions and Use Tax (Sales Tax)?

What is this proposal?

Measure Details — Official information about this measure

YES vote means

A “yes” vote for Measure S will establish a Lemon Grove Sales Tax.

NO vote means

A “no” vote against Measure S will not establish such a Tax.

Summary

Source: City Clerk's Office, City of Lemon Grove

This measure requires approval of a simple majority (50% plus 1) of those voting on the measure.

BALLOT SUMMARY:

The proposed 0.75% Transactions & Use Tax reads as follows:

THE CITY ATTORNEY HAS PREPARED THE FOLLOWING TITLE AND SUMMARY OF THE CHIEF PURPOSE AND POINTS OF THE PROPOSED MEASURE. 

Title

Proposed three-quarter (3/4) cent transactions and use tax (Sales Tax) for the City of Lemon Grove

Summary

If adopted, this measure would enact an ordinance amending the Lemon Grove Municipal Code by adding Chapter 3.18 entitled "Lemon Grove Three Quarter Cent Transactions and Use Tax Ordinance."

The ordinance would authorize the imposition and enforcement of a three-quarters (3/4) of one cent transactions and use tax in the City of Lemon Grove, commonly called a "sales tax." The sales tax would be imposed on all retailers and all locations where goods are sold, in Lemon Grove, subject to certain exceptions, as well as an excise tax upon the storage, use, or consumption of goods purchased from any retailer for storage, use or other consumption in the City. The sales price of such goods shall include delivery charges, regardless of the location to which delivery is to be made. The proposed ordinance incorporates exemptions as required by law.

It is estimated that the tax would generate $2,958,000 in new revenue for the City's General Fund, which can be spent for all allowable purposes, including, but not limited to, public safety, recreation services, and homeless services. The sales tax is not a special tax. The revenues generated cannot be used to subsidize non-general fund programs.

Implementation of the tax, and the use of its revenues, would be subject to the following conditions. The City must:

  • Hire an independent auditing firm to analyze the impact of the sales tax and furnish a report to the City Council and the public;
  • 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 board to review implementation of the sales tax.

The ordinance would require the citizen's oversight board to review and approve a five-year plan identifying critical general fund needs. Further, each year, beginning in fiscal year 2021-2022, the City must prepare and present to said board a spending plan for the sales tax revenues. The board's review and recommendation shall precede the City Council's adoption of each annual budget.

If approved, the tax will be administered by the California Department of Tax and Fee Administration, pursuant to City Council direction and state law.

Under the California Constitution and the California Revenue and Taxation Code, a simple majority of the voters must approve a general sales tax measure for it to be adopted.

Background

Lemon Grove City Clerk

Summary:

On Monday, October 7, 2019, in accordance with State law, the City Clerk accepted a citizens’ initiative petition titled, “Petition for Submission to Voters of Proposed 0.75% Transaction & Use Tax for the City of Lemon Grove.” (Attachment A)

The initiative petition contained the required 1,482 valid signatures to place the proposed measure on the ballot and Elections Code Section 9114 requires the City Clerk to certify the results of the examination to the City Council. Further, Elections Code Section 9215 requires the City Council to take action on the initiative petition.

Discussion:

On June 13, 2019, initiative proponents filed a Notice of Intent to Circulate Petition with the City Clerk. In accordance with Elections Code Section 9203, the City Clerk notified the City Attorney immediately who prepared the ballot title and summary, entitled, “Proposed three-quarter (3/4) cent transaction and use tax (Sales Tax) for the City of Lemon Grove,” within the 15 day requirement (Attachment B).

The proponents published the Notice of Intent in the East County Californian on July 18, 2019, a proof of publication affidavit was filed with the City Clerk as required in Elections Code Section 9206, on July 22, 2019.

On October 7, 2019, proponents Yadira Altamirano, and George Gastil submitted to the City Clerk signatures for examination pertaining to the initiative petition entitled, “Initiative Measure to be Submitted Directly to the Voters – Ballot Title Proposed ThreeQuarter (3/4) Cent Transactions and Use Tax (Sales Tax) for the City of Lemon Grove.” On the same day the City Clerk, Shelley Chapel and Administrative Services Director Molly Brennan, conducted a Prima Fascia count and examination (as provided for in Election Code Section 9115) of the records confirming the raw number of signatures submitted had met the minimum required and would be sent to the San Diego County Registrar of Voters for verification and confirmation. The next day, Tuesday, October 8, 2019, the petition was delivered to the San Diego County Registrar of Voters to examine records of registration and ascertain that the petition had been signed by the requisite number of City of Lemon Grove Registered Voters.

According to the report by the Secretary of State dated February 10, 2019, the number of registered voters in the City of Lemon Grove were 14,819, therefore, to meet the requirements the petition must be signed by not less than 10% or 1,482 valid signatures of voters registered in the City of Lemon Grove.

On Monday, November 4, 2019, the San Diego County Registrar of Voters certified the measure to have the amount of qualified signatures necessary to qualify to be placed on the ballot for a vote of the residents. The City Clerk certifies the initiative petition, filed on October 7, 2019, as sufficient and states that the petition contains the required amount of qualifying signatures which allows the City Council to place the measure on the March 3, 2020. Thereby, causing action to be taken by the City Clerk as the Elections Official to call for a Special Municipal Election. 

Impartial analysis / Proposal

Source: Office of the San Diego County Registrar of Voters

CITY ATTORNEY IMPARTIAL ANALYSIS

Measure S would amend the Lemon Grove Municipal Code (LGMC) to establish a three-quarter (3/4) cent Transactions and Use Tax (Sales Tax) for the City of Lemon Grove. It was submitted for placement on the ballot after receiving sufficient signatures from Lemon Grove registered voters to require placement on the ballot.

If passed, Measure S would amend the LGMC to impose the Sales Tax. The Sales Tax would be a local tax for general purposes to fund, enhance, and maintain City services, with the rate set at three quarters (3/4) of one cent, but would not apply to food purchased as groceries or prescription medications, and it is not a property tax. This is a general tax that allows the revenue to be used for any governmental purpose with all proceeds spent in Lemon Grove and under Lemon Grove control.

Funds from the proposed Sales Tax would be deposited in the City’s General Fund to be used for general governmental purposes, such as repairing aging infrastructure, maintaining public services for residents, public safety and addressing homelessness.

The amount of Sales Tax revenue would depend on the gross receipts of local sales and is anticipated to provide approximately $2,958,000 annually until ended by voters.

The Measure would also require that such Sales Tax funds be subject to annual independent audits with public review of the City’s budget being widely available. The Measure requires that the City:

  • Hire an independent auditing firm to analyze the impact of the sales tax and furnish a report to the City Council and the public;
  • 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 board to review implementation of the sales tax.

Measure S requires approval of a simple majority of voters.

A “yes” vote for Measure S will establish a Lemon Grove Sales Tax.

A “no” vote against Measure S will not establish such a Tax.

The above statement is an impartial analysis of Measure S. If you desire a copy of the ordinance or measure, please call the elections official’s office at (619) 825-3841 and a copy will be mailed at no cost to you. 

Published Arguments — Arguments for and against the ballot measure

Arguments FOR

ARGUMENT IN FAVOR OF MEASURE S

YES ON MEASURE S

Last summer, Lemon Grove voters signed the petition that placed Measure S on the ballot. The measure will generate nearly three million in revenue that will stay in Lemon Grove to invest in our community and fund vital city services. Currently, 80% of the city budget goes to police and fire services with the rest going to parks, streets, planning / development and other city needs. Lemon Grove runs a lean budget. At 80% there just isn't enough for the things that we all want for our city.

Many cities in the county are facing similar budget challenges. La Mesa and El Cajon addressed their problem with a sales tax that we all pay when we shop there. They use their revenue to maintain vital services, promote a strong business sector and invest in parks and infrastructure. The results of their investments are there for us to see.

Measure S with close the budget shortfall and assure the survival of our city.

Measure S will provide funding to improve public safety, clean up the city, promote economic development, fund homeless solutions, and improve our parks.

Scott Barnett, President of San Diego Taxpayers Advocate: "Measure S ensures accountability, with an independent audit and citizen's oversight committee."

Measure S is supported by community leaders, business owners, Firefighters, Deputy Sheriffs, and every member of the City Council.

Opponents of Measure S say Lemon Grove should stop being a city. We all know things can be better and we know it's up to us, not the county to make the difference. If we won't do it for ourselves why would they?

On March 3, take pride in our city and cast a vote to preserve our city and invest in its future.

Preserve and Defend Lemon Grove. Vote Yes on Measure S.

 

GEORGE GASTIL
History Prof. - SDSU + Grossmont College
Former City Council Member, Lemon Grove

CHEBRA E. DORSEY
Lemon Grove Business Owner - O'Chem Fashion Boutique

YADIRA ALTAMIRANO
Business Owner, Proponent of Measure S

LARRY SPEARS
Owner, Business

RAQUEL VASQUEZ
Mayor, City of Lemon Grove

— Lemon Grove City Clerk

Arguments AGAINST

ARGUMENT AGAINST MEASURE S

THE SIGNERS SUBMIT THE FOLLOWING DIRECT ARGUMENT AGAINST THE LEMON GROVE SALES TAX TO BE IDENTIFIED AS MEASURE S

The politicians want to raise your taxes for LIFE! That's crazy!

Join us in voting NO! Don't give the politicians MORE of your hard-earned money! You live within your means and so should the government of Lemon Grove. Enough is enough!

The city wages, pensions and expenses continue to rise with NO PLAN of how to increase the income to run our city! To keep up with the out of control spending each year, they spend the city's "savings account" (the Reserve Fund) to balance the budget. In 2018, it was discovered that over $800K was needed to complete the Realignment Project. Again, the Reserve Fund had to be "robbed" to make up for that financial shortfall. With this type of spending that money will soon be gone!

They won't STOP this spending path of destruction and that's why they want to raise OUR taxes!

They gave raises and stipends to city staff throughout the years, while our streets, parks, retail areas and downtown deteriorated. Now they want to bleed an additional $2.9 million per year from our local economy. Proponents say they will hire auditors to watch OUR money! Shouldn't they have been doing that all these years?

City Hall has a spending problem! Don't let them put the burden on the backs of the hard-working people of Lemon Grove!

Our families and seniors are struggling in the current economy, with the rising costs of housing, food, gasoline, medical expenses and childcare just to make ends meet.

We all want to solve Lemon Grove's problems, [sic] but we need a plan that works for everyone in our community!

Let's reject this bad idea and send the politicians back to the drawing board.

Vote NO on the Lemon Grove Sales Tax for LIFE!

www.noLGtax.com

 

LA VAWN "COOKIE" RINGHAND
Lemon Grove Resident 66+ years

MARY ENGLAND
Lemon Grove Council Member (Retired)

JOHN L. WOOD
Lemon Grove Resident 32+ years

SHARON JONES
Lemon Grove Deli Owner

— Lemon Grove City Clerk

Replies to Arguments FOR

REBUTTAL TO THE ARGUMENT IN FAVOR OF MEASURE S

THIS MEASURE CONTAINS NO GUARANTEES FOR TAXPAYERS. No spending in Measure S is earmarked. Proponents claim this money will be spent to improve public safety, promote economic activity, fund homeless programs and clean up parks. But in reality, all the money will go into the general fund and can be used for anything, including pension liabilities and salaries.

Don't reward the bureaucrats for bad financial planning. For years City officials have known spending has surpassed income, yet no changes were mad to address spending. Instead they want you as taxpayers to bail them out.

THIS IS A SALES TAX INCREASE FOR LIFE. While most tax increases allow for an end date or at least a vote to extend the tax if necessary, Measure S will increase taxes forever. That is plain irresponsible. Let's not overtax our children and grandchildren.

THERE ARE NO GUARANTEES FOR PUBLIC SAFETY. We all want to support our firefighters and sheriff deputies. Let's veto this bad plan and send the city back to the drawing board to write a plan that guarantees money for public safety and not for overpaid bureaucrats.

NOTICE TO VOTERS: On or after February 21, 2020, a San Diego Superior Court Judge will rule on whether this Tax Measure should proceed. The City is being challenged for allegedly violating state law in placing this Measure on the ballot. If they can't ask for money correctly, will they spend it correctly?

VOTE NO ON MEASURE S.

 

SHARON JONES
Lemon Grove Deli Owner

JOHN L. WOOD
Lemon Grove Resident 32+ years

LAVAWN "COOKIE" RINGHAM
Lemon Grove Resident 66+ years

HANEY HONG
President & CEO, San Diego County Taxpayers Association

— Lemon Grove City Clerk

Replies to Arguments AGAINST

REBUTTAL TO THE ARGUMENT AGAINST MEASURE S

SAVE LEMON GROVE. VOTE YES ON S

KEEP THE CITY OF LEMON GROVE INDEPENDENT

  • Instead of relying on City Hall we'll have to deal with downtown bureaucrats.
  • The few opponents don't care if The City of Lemon Grove dissolves and is taken over by the county.
  • Less funding means The City of Lemon Grove spends significantly less on services per citizen than El Cajon and La Mesa.

"YES on S ensures The City of Lemon Grove will remain an independent city and not be controlled by the County Board of Supervisors."
- Mayor Racquel Vasquez

THE CITY OF LEMON GROVE IS FISCALLY PRUDENT

  • City Hall has only 8 full time employees.
  • City Staff: No raises since 2016.
  • Firefighters: No raises this year.
  • Reserves are funded at 39%.

THE CITY OF LEMON GROVE FUNDS SAFETY AND CITIZEN'S NEEDS FIRST

  • 25 Sheriff personnel
  • 21 Firefighters
  • Sheriff, Fire, Animal Control, Public Works, Community Services are 92% of budget

MEASURE S CAN FUND IMPORTANT CITY NEEDS

  • New fire engine to replace 22 year old vehicle $750,000
  • Firefighting equipment #100,000
  • Community center roof $44,000
  • Public works truck $33,000

ACCOUNTABILITY - STRICT TAXPAYER SAFEGUARDS BUILT IN:

  • Citizens Oversight Committee
  • Annual Independent Audit
  • Local Funding Sacramento can't take away

"Measure S will provide more funding for sheriff, fire and basic city services while ensuring that City of Lemon Grove's taxpayers are protected."
- Scott Barnett
President, San Diego Taxpayers Advocate

Join local businesses, the Deputy Sheriff's Association, Lemon Grove Firefighters and thousands of our neighbors in voting YES on S

SAVE LEMON GROVE. VOTE YES ON S 

 

JAY BASS
Board Trustee, Lemon Grove School District

JERRY JONES
Chamber Board Member (Former)

BRAD MAXFIELD
President, Heartland Firefighters of Lemon Grove

HUGO OCHOA
Owner, Ochoa Automotive

JIM ELLIOTT
Business Owner

— Lemon Grove City Clerk

Read the proposed legislation

Proposed legislation

Full text typeset by the San Diego County Registrar of Voters:
https://www.sdvote.com/en/election/march-2020-primary/Measures/Measure_S.pdf

 

The following is a Voter's Edge volunteer's transcription of relevant portions of the PDF document entitled "Report Including All Attachments," published on the Lemon Grove City Clerk's website: https://www.lemongrove.ca.gov/city-hall/city-clerk/citizens-initiative-petition 

 

The People of the City of Lemon Grove do ordain as follows:

ORDINANCE NO. ____

ORDINANCE OF THE CITY OF LEMON GROVE ADDING CHAPTER 3.18 TO TITLE 3 OF THE LEMON GROVE MUNICIPAL CODE TO ESTABLISH A THREE-QUARTER CENT GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION INCLUDING PROVISIONS FOR CITIZENS’ OVERSIGHT AND ACCOUNTABILITY

WHEREAS, current City of Lemon Grove revenue sources are growing approximately at 1.5% to2% a year, while expenditures are growing about 4% a year, mainly from increases in the Sheriff’s contract, increases in the cost of State-required services, and the general inflation on the cost of doing business; and

WHEREAS, if no new revenue is generated, the City will incur compounding General Fund budget deficits year after year. In five years, the City will have depleted all but approximately 12% of General Fund reserves and the following year would likely run out of money altogether (2023/2024); and

WHEREAS, The Citizens of Lemon Grove find that this Transaction and Use Tax will not cause a loss of business to the neighboring cities of San Diego, La Mesa, El Cajon, National City and Chula Vista, which all have equal or higher rates of tax as the one proposed by this Ordinance; and

WHEREAS, the City Council will be required to engage an independent auditing firm to review the impact of this Tax Ordinance and report back to the City Council and the Public; and

WHEREAS, the City Council will be assisted by a Citizen’s Oversight Board that will review the implementation of this Ordinance and makes its findings public; and

WHEREAS, a Citizens’ Oversight Board shall review the implementation of this Ordinance including a five-year Plan identifying critical General Fund needs on an annual basis to assist in long-term budget planning; and

WHEREAS, this Tax Ordinance will require separate accounting of revenues received under this Ordinance: and

WHEREAS, the proceeds from this Ordinance cannot be used to subsidize user fees of non-General Fund programs; and

WHEREAS, this Transaction and Use Tax, under this Ordinance can only be increased by a vote of the People; and

WHEREAS, the Citizens of the City of Lemon Grove have determined that the enactment of a general local transactions and use tax (commonly known as a “sales tax”) would allow the City to significantly address the critical public safety staffing needs, as the City has had to reduce law enforcement presence to minimum staffing levels in the City and as County law enforcement costs continue to increase faster than the City’s revenue increases; and

WHEREAS, according to the City’s sales tax consultants, the additional of a three-quarter cent transactions and use tax (TUT) would conservatively generate an additional $2,958,000 a year The addition of this $2,958,000 million revenue per year would be enough funding for the current level of services, as well as improve the City’s future by providing the opportunity to invest in economic development and unfunded priorities for residents, such as public safety, recreation services and homelessness; and

WHEREAS, pursuant to Article XIII C of the California Constitution, and California Revenue and Taxation Code Section 7285.9, the Citizens of Lemon Grove have the authority to enact a local transaction and use tax (sales tax) for general purposes with the approval of the majority of voters in the City of Lemon Grove voting in an election on the issue; and

WHEREAS, proposed Chapter 3.18 of the Lemon Grove Municipal Code, set forth below, establishes a transactions and use tax to be administered by the California Department of Tax and Fee Administration consistent with City Council direction and state law; and 

NOW, THEREFORE, subject to approval by an affirmative, simple majority vote of the people as required by law, the People of the City of Lemon Grove do ordain as follows:

SECTION 1: The Lemon Grove Municipal Code is hereby revised to add Chapter 3.18 as set forth below, thereby enacting a general local transactions and use tax within the City of Lemon Grove, to be administered by the California Department of Tax and Fee Administration:

CHAPTER 3.18: LEMON GROVE THREE QUARTER CENT TRANSACTIONS AND USE TAX 

Sections:
3.18.010 Title.
3.18.020 Operative date.
3.18.030 Purpose.
3.18.040 Contract with state.
3.18.050 Transactions tax rate.
3.18.060 Place of sale.
3.18.070 Use tax rate.
3.18.080 Adoption of provisions of state law.
3.18.090 Limitations on adoption of state law and collection of use taxes.
3.18.100 Permit not required.
3.18.110 Exemptions and Exclusions.
3.18.120 Amendments of Revenue and Taxation Code.
3.18.130 Enjoining collection forbidden.
3.18.140 Amendments by City Council.
3.18.150 Use of proceeds.
3.18.160 Citizens’ oversight and accountability.
3.18.170 Severability.

3.18.010 TITLE.

This ordinance shall be known as the Lemon Grove Three-Quarter Cent Transactions and Use Tax Ordinance. The City of Lemon Grove hereinafter shall be called “City.” This Ordinance shall be applicable in the incorporated territory of the City.

3.18.020 OPERATIVE DATE.

“Operative Date” means the first day of the first calendar quarter commencing on or after the adoption of this ordinance, the date of such adoption being as set forth below. The Operative Date shall be no sooner than April 1, 2021. 

3.18.030. 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 general 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 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority vote 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 general 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 general retail Transactions and Use Tax Ordinance that imposes a tax and provides a measure that can be administered and collected by the California Department of Tax and Fee Administration 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 California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes. 

D. To adopt a general retail Transactions and Use Tax Ordinance 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.

3.18.040 CONTRACT WITH STATE.

Prior to the Operative Date, City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax Ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration 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 effective date of such a contract.

3.18.050 TRANSACTIONS TAX RATE.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of three-quarter of one percent (0.75%) 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.

3.18.060 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 ofstate 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 California Department of Tax and Fee Administration.

3.18.070 USE TAX RATE.

An excise tax is hereby imposed on the storage, use or other consumption in the City 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 three-quarter of one percent (0.75%) 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. 

3.18.080 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.

3.18.090 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 City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action be taken by or against this City or any agency, officer, or employee thereof, rather than by or against the California Department of Tax and Fee Administration, 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. 

B. The word “City” 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.

3.18.100 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.

3.18.110EMPTIONS [sic] AND EXCLUSIONS. 

A. There shall be excluded from the measure of the Transactions Tax and 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 stateadministered 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 City which is shipped to a point outside the City, 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 City shall be satisfied:

a. 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 Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City 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

b. With respect to commercial vehicles, by registration to a place of business out of the City of Lemon Grove 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 subsections (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 City 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 City 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 City or participates within the City 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 City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. “A retailer engaged in business in the City” 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 City.

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 City 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 consumptions of which is subject to the use tax.

3.18.120 AMENDMENTS OF REVENUE AND TAXATION CODE.

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.

3.18.130 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 City, or against any officer of the State or the City, 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.

3.18.140 AMENDMENTS BY CITY COUNCIL.

The following amendments to this Ordinance must be approved by the voters of the City: increasing the tax rate; revising the methodology for calculating the tax, such that a tax increase would result; imposing the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of law); or terminating the tax. The City Council may otherwise amend this Ordinance without submitting the amendment to the voters for approval in any manner which does not constitute a tax “increase” as that term is defined in Government Code section 53750(h). The City Council shall have the authority to amend this Ordinance to enact procedural changes consistent with state law to allow for collection of the tax established hereunder.

3.18.150 USE OF PROCEEDS.

The proceeds from the tax imposed by this Ordinance shall be for unrestricted general revenue purposes of the City and shall be received into the general fund of the City. Nothing in this Ordinance shall constitute the tax imposed under this Ordinance as a special tax or bind the City to use the proceeds for any specific purpose or function; the City Council shall retain discretion to expend the proceeds of the tax for any lawful purpose of the City. 

3.18.160 CITIZENS’ OVERSIGHT AND ACCOUNTABILITY.

In order to provide for citizens’ oversight, transparency and accountability in connection with expenditures of tax revenues generated under the terms of this Ordinance, the City shall do the following:

A. Line Item Accounting. All revenue generated by the tax (“Measure ‘LG’ Revenues”) shall be accounted in the General Fund as a separate line item entitled “Local Transactions and Use Tax – Measure ‘LG’ Revenues.” Measure ‘LG’ Revenues and expenditures will be tracked and accounted for by City Finance Department staff in accordance with Generally Accepted Accounting Principles (GAAP), and presented annually in a report (the “Finance Department Report”) to the Citizens’ Oversight Committee (“COC”) created pursuant to subdivision D., below.

B. Annual Submittal of Measure ‘LG’ Expenditure Plan. If Measure ‘LG’ is approved by the Voters, beginning in Fiscal Year 2021-22, and for each subsequent year, prior to the City Council consideration of the City’s annual budget, City staff will prepare and present to the COC for its review a spending plan for the Measure ‘LG’ Revenues. Such plan (the “Measure ‘LG’ Spending Plan”) shall be (1) spent on Lemon Grove projects that use General Fund monies within the boundaries of the City of Lemon Grove; (2) include specific proposals for near term expenditures; and (3) a plan for expenditures for the next five years to address the Critical General Future Fund Needs described therein. After review by the COC, the Measure ‘LG’ Spending Plan for the upcoming fiscal year shall be incorporated into the City Manager’s proposed budget, and then presented to the City Council for its consideration and action, in its discretion, as part of the City’s annual budget process. The City Council must consider for approval the expenditure of projected Measure ‘LG’ Revenues as a separate line item category in each year’s budget. The COC’s duties under this section shall continue until and unless the City Council appoints another commission, committee, or group to be responsible for reporting to the City Council, pursuant to section D., below.

C. Annual, Independent Audit. Beginning with the fiscal year 2018-2019, the City’s independent auditors shall, as part of their annual audit of the City’s financial statements, review the collection and expenditure of Measure ‘LG’ Revenues.

D. Measure ‘LG’ Oversight Committee. Prior to the Operative Date, the City shall create and convene a Citizens’ Oversight Committee (“COC”). The City Council shall initially designate the Community Advisory Commission, established under Chapter 2.08 of the Lemon Grove Municipal Code, as the COC with either five or seven members to be determined on a regular basis by the City Council. If the Community Advisory Commission is no longer operational, the City Council shall create and convene a new COC by Resolution.

E. Citizens’ Oversight Committee Operation. The function of the COC shall be to review and report on City compliance with the terms of this Ordinance and each annual ‘LG’ Measure Spending Plan presented to and approved by the City Council thereafter. The COC shall operate in accordance with the Ralph M. Brown Act, which includes requirements that meetings be noticed in advance and held in public. The COC shall be created by City Council ordinance consistent with the terms of this Section adopted no later than 150 days following the date of the election at which this Ordinance is approved by the voters.

F. No Subsidy of User Fees or Charges. Measure ‘LG’ Funds shall not be used to subsidize user fees or charges levied for non-General Fund purposes. As many fee based general fund programs contain a partial subsidy by the General Fund, no Measure ‘LG’ funds may be used to increase the general fund subsidy of any fee or charge for a program that relies on user fees or charges.

3.18.170 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. Such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. This People of the City of Lemon Grove hereby declare that they would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intend that the invalid portions should be severed, and the balance of the Ordinance be enforced.

SECTION 2:

The City Clerk shall be authorized to replace the term "Measure ‘LG’” wherever it appears in this Ordinance with the respective ballot designation determined by the County Registrar before this Ordinance is codified.

SECTION 3:

Upon approval by the voters, the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause it to be published according to law.

SECTION 4:

This Ordinance authorizes City of Lemon Grove officers and employees to take all steps necessary to implement this Ordinance in the manner required by law, including any applicable amendments to the laws of the State of California.

 

Who supports or opposes this measure?

Yes on Measure S

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Elected & Appointed Officials (1)

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