Measure Q - City of Davis Sales Tax Extension

Measure question, full measure text, arguments and rebuttals for Measure Q for the City of Davis.

Full Text

Impartial Analysis

Argument in Favor

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existing one percent sales tax with no increase to the current rate, providing approximately $8,600,000 annually until repealed by the voters, subject to annual review, with all funds staying local, and continuing existing funding for city services such as police, fire, recreation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?

Full Text

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 d. Section 15.19.150 (Effective Date) is repealed in its entirety.

 e. Section 15.19.160 (Termination Date) is repealed in its entirety.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

Impartial Analysis

CITY ATTORNEY IMPARTIAL ANALYSIS OF MEASURE Q

 

Ballot Measure Q asks the voters of the City of Davis to adopt an ordinance (the “sales tax ordinance”) that would eliminate the termination date for the City’s existing sales tax rate of 1.0%, which is part of the total 8.25% sales tax rate imposed in the City.  The City’s authority to collect the existing sales tax rate of 1.0% will expire December 31, 2020.  If Measure Q is approved, the existing sales tax rate of 1.0% will not expire and the City’s authority to collect the existing sales tax rate of 1.0% will continue until repealed by the voters.  

The City’s 1.0% sales tax is a general tax, which means the tax revenues are deposited in the City’s general fund and may be used for any municipal purpose.  It is estimated by the City’s Finance Director that the City’s sales tax rate of 1.0% raises approximately $8.6 million per year in general fund revenues for the City.  

The 1.0% sales tax revenues are subject to an annual review as part of the City’s budget process.  A full copy of the text of the sales tax ordinance is printed in these ballot materials.

Article XIIIC of the California Constitution, commonly known as Proposition 218, requires the City to submit the sales tax ordinance to the voters for approval by a majority of the voters voting on the measure to extend the City’s 1.0% sales tax.  A “yes” vote on Measure Q authorizes the City to continue to collect the existing sales tax rate of 1.0% with no termination date.  A “no” vote will result in the sales tax rate of 1.0% expiring on December 31, 2020. 

 

_______________________________________

Inder Khalsa
City Attorney

City of Davis

 

Argument In Favor

Davis is special. Over many decades, we have intentionally designed our community to reflect, encourage, and support our core values. We gather for Farmer’s Market or music in our downtown common space and play sports in our parks, we’re proud to be a leader in bike- and walkability, and we love that our family-friendly town feels safe and secure. Voting Yes on Q is critical continuing this life which we so cherish.

Measure Q is supported by every Davis City Councilmember, the Davis Chamber of Commerce, Davis police  officers, and many former and current local leaders because it generates crucial revenue for public safety, community public space, recreation programs, bike paths, and roadway maintenance.

Through the renewal of an existing sales tax, Measure Q continues approximately $9 million of annual revenue to our General Fund budget. These resources are fundamental for maintaining the services that support our quality of life.

Measure Q:

  • Does NOT increase taxes
  • Tax dollars stay local for the benefit of Davis residents; by law, revenue from this measure cannot be taken by the State.
  • Provides critical funding for Davis firefighters and police; helps maintain emergency response times
  • Is necessary for ongoing road repair and maintenance
  • Supports public open space, recreation programs, and parks
  • Continues funding for sidewalks and bike paths
  • Funds are reviewed annually by an independent auditor and the Davis Finance and Budget Commission
  • Allows for exemptions for essential purchases like groceries and medicine

We join Assemblymember Helen Thomson (ret.), Assemblymember Mariko Yamada (ret.), our County Supervisors, Davis first responders, every City Councilmember, and many more in asking that you VOTE YES ON Q to preserve the community we love and maintain our very precious quality of life.

For more: RenewDavis.com

s/ Brett Lee, Mayor

s/ Robb Davis, Former Mayor

s/ Lois Wolk, Former Mayor and State Senator (ret.)

s/ Ken Wagstaff, Former Mayor

s/ Ann M. Evans, Former Mayor