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HomeMy WebLinkAboutRA 1 - Ordinances ORDINANCE NO. RA 1 AN ORDINANCE OF THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY ENACTING A SALES AND USE TAX IN LIEU OF THE CITY'S UPON THE RANCHO DEVELOPMENT PROJECT ARFA, TO BE ADMINIb~I'~/~ED BY THE STATE BOARD OF EQUALIZATION A. Recitals. (i) California Revenue ara Taxation Code Section 7202.6 permits the redevelopment agency of any city which has adopted a sales and use tax ordinance to adopt a complementary sales and use tax ordinance consistent with California Revenue and Taxation Code Sections 7202.5 and 7202.6. (ii) The Council of the City of Rancho Cucamonga has adopted a sales and use tax ordinance which complies with Revenue and Taxation Code Section 7202 by Ordinance No. 214 and Revenue and Taxation Code Section 7202.5 by Ordinance No. 461. (iii) In accordance with Article III of that certain Disposition and Development Agreement entered into with The Price Company dated December 5, 1990 (hereinafter "DDA"), the Rancho Cucamonga Redevelopment Agency (herein- after "Agency") desires to adopt a sales and use tax to be imposed, under specific circumstances, upon transactions occurring in the Rancho Redevelop- ment Project Area (hereinafter "Project Area"). The boundaries of the Project Are are specifically d~escribed in that certain Redevelopment Plan approved and adopted by the Council of the City of Rancho Cucamonga on December 23, 1981, by Ordinance No. 166 and amended August 6, 1987, by Ordinance No. 316. The Redevelopment Agency of the City of Rancho Cucamonga does hereby ordain as follows: SECTION 1: Rate. The rate of the sales end use tax imposed by this Ordinance shall be one percent (1%). SECTION 2: Operative Date. This Ordinance shall not be operative until Agency has (i) defaulted on a required debt service payment obligation under the promissory note executed by the Agency in accordance with Article 3 of that certain Disposition and Development Agreement (DDA) by and betwean the Agency and The Price Company (hereinafter "Price Company"), dated December 5, 1990 and, pursuant to Section 3.07 of the DDA, the Agency has failed to cure same within thirty (30) days after written notice from the developer as such is set forth in the DDA, and (ii) end transmitted the Ordinance adopting and setting such tax rate to the State Board of Equalization. Any ordinance setting a tax rate may be rescinded and/or reactivated at any time in accordance with all applicable state and local laws. SECTION 3: Purpose. The Agency hereby declares that this Ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish these purposes: Ordinance No. RA 1 Page 2 a. To adopt a sales and use tax ordinance which complies with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Cede; and b. To adopt a sales and use tax ordinance which complies incorporates provisions identical to those of the Sales and Usa Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.5 of Division 2 of the Revenue and Taxation Cede; and c. To adopt a sales and use tax ordinance which imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adopts itself as fully as practicable to and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California Sate sales and use taxes; and d. To adopt a sales and use tax ordinance which can be administered in a manner that will, to the greatest degree possible consistent with the provisions of 1.5 of Division 2 of the Revenue and Taxation Cede, minimize the cost of collecting Redevelopment Agency sales 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; and e. Pursuant to Section 33641 of the Health and Safety Code, to provide a security interest in and pledge of sales and use taxes collected by the Agency to The Price Company as security for the Agency's promissory note with the understanding that the repayment obligations are as fully set forth in Article 3 of that certain DDA referenced hereinabove. SECTION 4: Contract with State. Prior to the Operative Date of this Ordinance, the Agency shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this Ordinance; such contract shall continue in effect until the earliest of the Occkkrremce of (i) December 23, 2021, the date of expiration of the Redevelop- ment Plan, (ii) the date when the County and City within which the Agency is located no longer have operative sales and use tax ordinances enacted pursuant to Part 1.5 of Division 2 of the Revenue and Taxation Code, or (iii) until all Agency debt service paymant obligations under the promissory note executed by Agency in accordance with the DDA have been fully paid or the same has been discharged. SECTION 5: Sales Tax. For the privilege of salling tangible personal property at retail, a tax is hereby imposed upon all retailers located within the Rancho Redevelopment Project Ares, the boundaries of which are specifically in the above-referenced Redevelopment Plan, at the rate stated in Section 1 of the gross receipts of the retailer from the sale of all tangible personal property sold at retail within the Rancho Redevelopment Project Ares on and after the Operative Date. Ordinance No. RA 1 Page 3 SECTION 6: Place of Sale. For the purposes of this Ordinance as regard sales tax imposition, 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 agency to his out-of-state destination or to a cc~non 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 sub- ject 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 r~Dre than one place of business, the place or places at which the retail sales are consunm~ted shall be determined pursuant to the rules and regulations to be prescribed and adopted, and amended from time to time, by the State Board of Equalization. SECTION 7: Use Tax. An excise tax is hereby imposed on the storage, use or other consumption, within the project area, of tangible personal property perchased from any retailer on or after the Operative Data for storage, use or other consumption within the Rancho Redevelopment Project Ares at the rate stated in Sec~cion 1 of the sales price of the activity. Sales price shall be deemed to include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. SEUI'YON 8. Adoption of State Law. Except as otherwise provided in this Ordinance and except insofar as they are inconsistent with the provisions of Part 1.5 of Division 2 of the Revenue and Taxation Cede, all of the provisions of Part 1 of Division of the Revenue and Taxation Code are hereby adopted and made a part of this Ordinance as though fully set forth herein. SECTION 9. Limitations on Adoption of State Law. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, wherever the State of California is named or referred to as the taxing Agency, the name of the Agency shall be substituted therefor. The substitution shall not be made when the word "State" is used as part of the title of the State Controller, the State Trsaserer, the State Board of Control, the State Board of ~qualization, the State Treasury, or the Constitution of the State of California; the substitution shall not be made when the result of the substitution require action to be take by or against the Agency, rather than by or against the State Board of ~qualization in performir~ the functions incident to the administration or operation of this Ordinance; further, the substitution shall not be made in those sections including, bat not necessarily limited to, sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to 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 reins subject to a tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Cede, or to 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 the Code; further, the substitution shall not be made in Ordinance No. RA 1 Page 4 Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797, or 6828 of the Revenue end Taxation Code; end the substitution shall not be made for the word "State" in Section 6203 or in the phrase "retailer engaged in the business of this State" in Section 6203 or in the definition of that phrase in Section 6203. .SECTION 10: Sellers' Permit Not Required. A retailer who has been issued a sellers' permit under Section 6067 of the Revenue and Taxation Code shall not be required to obtain or have issued an additional sellers' permit as a result of the adoption of this Ordinance. .SECTION 11. ~ities from Tax Liability. (i) The amount subject to tax shall not include any sales or use tax imposed by the State of California upon a retailer or consumer. (ii) Storage, use or other consumption of tangible personal property, the gross receipts from the sale of which has been subject to sales tax under a sales and use tax ordinance enacted in accordance this part by any county, city, or redevelopment agency in this state shall be exempt from the tax due under this Ordinance. (iii) There are exempted from the computation of the amount of the sales tax the gross receipts from the sale of tangible personal property to operators of an aircraft to be used or consumed principally outside the Rancho Redevelopment Project Area and the City, County, or City and County in which the sale is made and directly and exclusively in the use of that aircraft as c,u~uuon carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. (iv) In addition to the exemptions provided in Sections 6366 and 6366.1, the storage, use or consumption of tangible personal property purchased by operators of aircraft and used or consumed by those operators directly and exclusively in the use of that aircraft as c~mmon 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 is exempted from the use tax. SECTION 12: Pledqe of Sales and Use Taxes as Collateral. Purs~_ant to Revenue and Taxation Cede Section 7202.8 and Health and Safety Code Section 33641, the sales and use taxes collected by the Agency are pledged as collateral in which The Price Company shall have a security interest, for the payment of the principal and interest on the Agency Note. Such pledge shall constitute the obligation of a contract between the Agency and The Price Oreparty, and shall be protected from impairment by the United States and California Constitutions. Notwithstanding anything else herein to the contrary, pursuant to Revenue and Taxation Cede 7202.8, this Sales and Use Tax Ordinance may not be amended or repealed during any time that the Agency Note remains outstanding. SECTION 13: Statutory Amendments. All subsequent eunendments of the California Revenue and Taxation Code which relate to the sales and use tax and which are not inconsistent with Part 1.5 of Division 2 of the Revenue and Taxation Code shall automatically become a part of this Ordinance without further action by the Agency or City of Rancho Cucamonga. Ordinance No. RA Page SECTION 14: Enioininc{ 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 this Agency, or against the officer of the State or this Agency, to prevent or enjoin a collection under this Ordinance, or Part 1.5 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. SEuflON 15: Severability. If any provision of this Ordinance or the application thereof to any person or circumstances is held invalid, the remainder of the Ordinance and the application of such provision to other persons or other circumstances shall not be effected in any manner thereby. SECTION 16: Effective Date. Pursuant to California Revenue and Taxation Code Section 7202.6, this Ordinance shall take effective immediately upon its final passage, provided that the Ordinance shall become operative on the later of (i) the first day of the first calendar month cormnencing more tb~nn 180 days after the adoption of this Ordinance, or (ii) that date specified in Section 2 of this Ordinance approved. SECTION 17: The Chairman shall sign this Ordinance and the Secretary shall cause the same to be published within fifteen (15) days after its passage at least once in the Inland Valley Daily BUlletin, a newspaper of general circulation published in the City of Ontario, California, and circulated in the City of Rancho Cucamonga, California. PASSED, APPROV~D, and ADOPTED this 16th day of October, 1991. AYES: Alexander, Buquet, Stout, Willia/ns, Wright NOES: None ABSt~qT: None ~ennis L. Stout, Chairman ~I'I'ES~P: ~ck Lam~ Secretc~ I, JACK LAM, SECRETARY, of the Rancho Cucamoega Redevelol~nent Agency of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Ordinance was l~]ssed at the regular meeting of the Rancho Cucamoega Redevelopment Agency of the City of Rancho Cacamonga held on the 16th day of October, 1991. Ordinance No. RA 1 Page 6 Executed this 17th day of October, 1991 at Rancho Cucamonga, California. ~ ~ Jack Lam, Secretary