Measure Q - City of Davis Sales Tax Extension

BALLOT MEASURE SUMMARY

Shall the Ordinance extending the existing one percent sales tax with no increase to the current rate, providing approximately $8,600,000 annually until repealed by the voters, subject to annual review, with all funds staying local, and continuing existing funding for city services such as police, fire, recreation programs, city roads, sidewalks, bike path maintenance, and other city services, be adopted?

ORDINANCE NO. 2563

AN ORDINANCE OF THE CITY OF DAVIS AMENDING ARTICLE 15.19 OF CHAPTER 15 OF THE DAVIS MUNICIPAL CODE TO EXTEND THE EXISTING TRANSACTIONS AND USE TAX ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION

THE PEOPLE OF THE CITY OF DAVIS DO HEREBY ORDAIN AS FOLLOWS:

SECTION 1.   Code Amendment.  Article 15.19 of the Davis Municipal Code is hereby amended as follows:

a. Sections 15.19.040 and 15.19.050 are amended by replacing the term “State Board of Equalization” with the term “California Department of Tax and Fee Administration. 

 b. Paragraph A.1. of Section 15.19.090 is amended in its entirety to read as follows: “The word ‘State’ is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California.”

 c. Paragraph B. of Section 15.19.090 is amended in its entirety to read as follows: 

“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.

1. ‘A retailer engaged in business in the District’ shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.”

 d. Section 15.19.150 (Effective Date) is repealed in its entirety.

 e. Section 15.19.160 (Termination Date) is repealed in its entirety.

 f. Section 15.19.150   A new Section 15.19.150 is added to read as follows: 

Annual Review.  As part of the City’s annual budget process, City staff shall review the tax revenues collected pursuant to this Article.”  

SECTION 2.  This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately.

SECTION 3.  The City Clerk shall certify the passage of this ordinance and forward a copy of the adopted ordinance to the California Department of Tax and Fee Administration.

APPROVED by the City Council of the City Davis on this 3rd day of September, 2019, by the following vote:

AYES:            Arnold, Carson, Frerichs, Partida, Lee

NOES:            None

ADOPTED upon its approval by the People of the City of Davis, State of California, at an election held on March 3, 2020.