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HomeMy WebLinkAboutA6180 - STATE BOARD OF EQUALIZATION AGR FOR PREPARATION/ADMINISTRATION TO OPERATE CITY'S TRANSACTION AND USE TAX ORD CITY OF PALM SPRINGS TRANSACTIONS AND USE TAX All legal correspondence should be mailed to the following address: Jurisdiction: City of Palm Springs Title: City Manager and City Clerk Address: 3200 E. Tahouitz Canyon Way Palm Springs, CA 92264 Phone: (760) 323-8204 Email: CitvMana9cr&almMringsca.gov Financial correspondence(Non-confidential information) should be mailed to the following address: Note:Confidential information may be sent only to positions authorized by resolution Jurisdiction: City of Palm Springs Title: Director of Finance and Treasury Address: 3200 E. Tahquitz Canyon Way Palm Springs, CA 92264 Phone: (760) 323-8229 Email: Geoffrey.Kiehl@palmspringsca.gov Paper warrants (if issued)and Monthly/quarterly statements of transactions and use tax payments should be mailed to the following address: Jurisdiction: City of Palm Springs Title: Director of Finance and Treasury Address: 3200 E.Tahquitz Canyon Way Palm Springs, CA 92264 Phone: (760) 323-8229 Email: Geoffrey.Kiehl palmspringsca.gov Name: David H. Ready, City Manager ATTEST: Signature: Title: City Manager James Thompson, City Clerk Date: December 8,2011 APPROVED BY CITY COUNCIL 12/a`71Z6i► #4,26063 i4U1SO Ps address form AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE CITY'S TRANSACTIONS AND USE TAX ORDINANCE In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Palm Springs, California, hereinafter called City, and the STATE BOARD OF EQUALIZATION,hereinafter called Board, do agree as follows: 1. The Board agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City. 2. City agrees to pay to the Board at the times and in the amounts hereinafter specified all of the Board's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Board's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Board's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a.transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code. 3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and persormel records currently maintained by the Board. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City. 4. Any dispute as to the amount of preparatory costs incurred by the Board shall be referred to the State Director of Finance for resolution,and the Director's decision shall be final. 5. Preparatory costs incurred by the Board shall be billed by the Board periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Board the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. 6. The amount to be paid by City for the Board's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000)(Revenue and Taxation Code Section 7272.) i I 7. Communications and notices may be sent by first class United States mail. Communications and notices to be sent to the Board shall be addressed to: STATE BOARD OF EQUALIZATION P. O.BOX 942879 SACRAMENTO, CALIFORNIA 94279-0073 ATTENTION: EXECUTIVE DIRECTOR Communications and notices to be sent to City shall be addressed to: CITY OF PALM SPRINGS P. O.BOX 2743 PALM SPRINGS, CA 92263 ATTENTION: CITY MANAGER&CITY CLERK 8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer Citys transactions and use tax ordinance has been completed and the Board has received all payments due from City under the terms of this agreement. CITY OF PALM SPRINGS, CALIFORNIA STATE BOARD OF EQUALIZATION By By DAVID H. READY, CITY AGER (Executive Director) .ATTEST: AMES= IIOMPSON, CITY CLERK APPROVE TO FORM: DOUGLAS C.HOLLAND City Attorney (Rev.11i02) APPROVED BY CRY COUNCIL �0,i/ got t KZ3Q53 2 A4o190 AGREEMENT FOR STATE ADMINISTRATION OF CITY TRANSACTIONS AND USE TAXES The City Council of the City of Palm Springs has adopted, and the voters of the City of Palm Springs (hereafter called"City" or"District") have approved by the required majority vote, the City of Palm Springs Transactions and Use Tax Ordinance (hereafter called "Ordinance"), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the State Board of Equalization, (hereinafter called the`Board')and the City do agree as follows: ARTICLE I DEFINITIONS Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following: 1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6,Division 2 of the Revenue and Taxation Code. 2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 1802, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2. ARTICLE II ADMINISTRATION AND COLLECTION OF CITY TAXES A. Administration. The Board and City agree that the Board shall perform exclusively all functions incident to the administration and operation of the City Ordinance. B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the State Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Board pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled. C. Transmittal of money. 1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible,but not less often than twice in each calendar quarter. 2. For periods subsequent to the expiration date of the tax whether by City's self-imposed limits or by final judgment of any court of the State of California holding that City's ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter. 3. Transmittals may be made by mail or electronic fonds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement. D. Rules. The Board shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder. E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Board shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer,but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties,redevelopment agencies,other districts,and City as their interests appear. F. Security. The Board agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available Rte.1105 2 for the payment of the claims of City for district taxes owing to it as its interest appears. The Board shall not be required to change the terms of any security now held by it,and City shall not participate in any security now held by the Board. G. Records of the Board. When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Board agrees to permit authorized personnel of the City to examine the records of the Board, including the name, address, and account number of each seller holding a seller's permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Board's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Board pursuant to this Agreement H. Annexation. City agrees that the Board shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes,earlier than the first day of the calendar quarter which commences not less than two months after notice to the Board. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary. ARTICLE III ALLOCATION OF TAX A. Allocation. In the administration of the Board's contracts with all districts that impose transactions and use taxes imposed under ordinances,which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code: 1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion Rev.1105 3 of the Board, to all districts with which the Board has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers. 2. All district taxes collected as a result of determinations or billings made by the Board, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayers self-declared district taxes for the period for which the determination, billing,refund or credit applies. B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Board in determining the place of use. ARTICLE IV COMPENSATION The City agrees to pay to the Board as the Board's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Board for the City. ARTICLE V MISCELLANEOUS PROVISIONS A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate. A notification is complete when deposited in the mail. Rev.1105 4 Communications and notices to be sent to the Board shall be addressed to: State Board of Equalization P.O.Box 942879 Sacramento, California 94279-0073 Attention: Executive Director Communications and notices to be sent to the City shall be addressed to: City of Palm Springs P.O.Box 2743 Palm Springs, CA 92263 Attention: City Manager and City Clerk Unless otherwise directed, transmittals of payment of District transactions and use taxes wiII be sent to the address above. B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Board completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance. C. Notice of Repeal of Ordinance. City shall give the Board written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. Rev.1105 $ ARTICLE VI ADMINISTRATION OF TAXES IF THE ORDINANCE IS CHALLENGED AS BEING INVALID A. Impoundment of funds. 1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article H. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid. 2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Board the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non- appealable. B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement,the parties mutually agree that: 1. Board may retain all payments made by City to Board to prepare to administer the City Ordinance. 2. City will pay to Board and allow Board to retain Board's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement. 3. City will pay to Board or to the State of California the amount of any taxes plus interest and penalties, if any, that Board or the State of California may be required to rebate or refund to taxpayers. Rev.1105 6 4. City will pay to Board its costs for rebating or refunding such taxes, interest, or penalties. Board's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Board's staff for use in making these rebates or refunds and any other costs incurred by Board which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Board's direct and indirect costs as specified by Section 11256 of the Government Code. 5. Costs may be accounted for in a manner,which conforms to the internal accounting, and personnel records currently maintained by the Board. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City. 6. Any dispute as to the amount of costs incurred by Board in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final. 7. Costs incurred by Board in connection with such refunds shall be billed by Board on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City s Ordinance invalid or void becomes final. Thereafter Board shall bill City on or before the 25th of each month for all costs incurred by Board for the preceding calendar month. City shall pay to Board the amount of such costs on or before the last day of the succeeding month and shall pay to Board the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Board costs incurred in making those refunds. CITY OF PALM SPRINGS,CALIFORNIA STATE BOARD OF EQUALIZATION B By DAVID H.READY,C AGER (Executive Director) ATTEST: E FCHOLLAND, ON,CITY CLERK DOUG City Attorney Rm I10APPROVED BY CITY COUNCIL 7 i f t wi f POn Q P,3o53 AG rrrO ORDINANCE NO. 1802 AN ORDINANCE OF THE PEOPLE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 3.22 TO THE PALM SPRINGS MUNICIPAL CODE, APPROVING AND IMPLEMENTING A ONE PERCENT (1%)TRANSACTIONS, SALES, AND USE TAX. THE PEOPLE OF THE CITY OF PALM SPRINGS HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 3.22 is hereby added to Division I of Title 3 of the Palm Springs Municipal Code to read: SALES AND USE TAX 3.22.010 Title. 3.22.020 Purpose. 3.22.030 Operative Date. 3.22.040 Contract with State. 3.22.050 Transactions and Sales Tax Rate. 3.22.060 Place of Sale. 3.22.070 Use tax rate. 3.22.080 Adoption of Provisions of State Law. 3.22.090 Limitation on Adoption of State Law. 3.22.100 Permit not Required. 3.22.110 Exemptions and Exclusions. 3.22.120 Amendments. 3.22.130 Enjoining Collection Forbidden. 3.22.140 Independent Annual Audit. 3.22.010 Title. This Chapter shall be known as the City of Palm Springs Local Transactions and Use Tax Code. This Chapter shall be applicable in the incorporated territory of the City of Palm Springs hereinafter referred to as the "City." 3.22.020 Purpose. This Chapter 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 retail transactions and use tax to be applied throughout the entire territory of the City to the fullest extent permitted by law and 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 of the Revenue and Taxation Code, which authorizes the City to adopt this Chapter if a majority of the Ordinance No. 1802 Page 2 electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. (b) To adopt a retail transactions, sales, 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 retail transactions, sales, and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization 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 State Board of Equalization in administering and collecting the California State sales and use taxes. (d) To adopt a retail transactions, sales, 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 Chapter. (a) To provide transactions, sales, and use tax revenue to the City to be used for the general governmental purposes of the City and with any transactions, sales, and use tax revenue received being placed into the City's general fund. 3.22.030 Operative Date. This Chapter shall be operative on the first day of the first calendar quarter commencing at least thirty (30) days after the City Council certifies the results of the election. 3.22.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions, sales and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization 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 execution of such contract. 3.22.050 Transactions and Sales 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 one Ordinance No. 1802 Page 3 percent (1%) of the gross receipts of any retailers for the sale of all tangible personal property sold at retail in said territory on and after the operative date of this Chapter. 3.22.060 Place of Sale. For the purposes of this Chapter, 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 or her agent to an out-of-State 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 State Board of Equalization. 3.22.070 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 Chapter for storage, use, or other consumption in said territory at the rate of one percent (1%) 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. 3.22.080 Adoption of provisions of State Law. Except as otherwise provided in this Chapter 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 Chapter as though fully set forth herein. 3.22.090 Limitation on Adoption of State Law. 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. The substitution, however, shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California. Ordinance No. 1802 Page 4 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Chapter. 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. 3.22.100 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 seller's permit shall not be required by this Chapter. 3.22.110 Exemptions and Exclusions. (a) There shall be excluded from the measure of the transactions and sales tax and the 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 State-administered 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 Ordinance No. 1802 Page 5 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 or her 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 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-City 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 the ordinance codified in this Chapter. 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 the ordinance codified in this Chapter. 5. For the purposes of subsections (b)(3) and (b)(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 Chapter, 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 Ordinance No. 1802 =_ Page 6 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 Chapter. 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 this Chapter. 5. For the purposes of subsections (c)(3) and (c)(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 subsection (c)(7) of this Section, 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 Chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district 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 consumption of which is subject to the use tax. (e) Nothing in this Chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State of California. Ordinance No. 1802 _ Page 7 3.22.120 Amendments. All amendments subsequent to the effective date of this Chapter 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 Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter. 3.22.130 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 Chapter, 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. 3.22.140 Independent Annual Audit. The proceeds resulting from this transactions, sales, and use tax shall be deposited into the City's general fund and become subject to the same independent annual audit requirements as other general fund revenue. The independent auditor's report, which shall include an accounting of the revenues received and expenditures made from the transactions and use tax, will be presented annually to the City Council and made available for public review. SECTION 2. This Ordinance shall become effective upon adoption by a majority of the voters casting votes at the eneral municipal election on November 8, 2011, and shall expire on the twenty-fifth (25 ) anniversary of the operative date, unless otherwise extended by a majority vote of the electors in the City of Palm Springs. PASSED, APPROVED, AND ADOPTED BY THE PEOPLE OF THE CITY OF PALM SPRINGS AT THE REGULAR MUNICIPAL ELECTION HELD THE 8T" DAY OF NOVEMBER, 2011. STEPHEN P. POUGNET, MAYOR ATTEST: MES THOMPSON, CITY CLERK Ordinance No. 1802 -_ Page 8 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) CERTIFICATION , I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 1802 is a full, true, and correct copy, and was adopted by a majority vote of the People of the City of Palm Springs, at the Regular Municipal Election held the 8th day of November, 2011, as appears by the official returns of said election, and the Statement of Votes Cast as declared by the City Council, Resolution No. 23048, adopted the 7`h day of December, 2011. MES THOMPSON, CITY CLERK City of Palm Springs, California r21 J9d t I CERTIFIED COPY certfy that this is a true and correct copy of the document on file in the official records of the City of Palm Springs. City Gerk This oertifioatton must appear in blue with an originat signature. RESOLUTION NO. 23053 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A PREPARATORY AGREEMENT AND ADMINISTRATIVE AGREEMENT WITH THE STATE BOARD OF EQUALIZATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS AND USE TAX. A6180. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY FINDS: A. A Regular Municipal Election was held and conducted in the City of Palm Springs, California, on Tuesday, November 8, 2011. B. As a result of the election, a majority of the voters voting on Measure "J" implementing a one-percent (1%) local transactions and use tax for the period of twenty-five (25)years was adopted and ratified by the qualified electors. C. On December 7, 2011, the City Council adopted Resolution No. 20348, declaring the result of the Regular Municipal Election approving Ordinance No. 1802, "AN ORDINANCE OF THE PEOPLE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 3.22 TO THE PALM SPRINGS MUNICIPAL CODE, APPROVING AND IMPLEMENTING A ONE PERCENT (1%)TRANSACTIONS, SALES AND USE TAX." D. Ordinance No. 1802, as adopted by the People of the City of Palm Springs requires the City to contract with the State Board of Equalization (Board) to administer and collect the transactions and use taxes for the City. E. The State Board of Equalization administers and collects the transactions and use taxes for all applicable jurisdictions within the state. F. The Board will be responsible to administer and collect the transactions and use tax for the City. G. The Board requires that the City enter into a "Preparatory Agreement" and an "Administration Agreement" prior to implementation of said taxes. H. The Board requires that the City Council authorize the agreements. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY RESOLVES AND APPROVES: SECTION 1. The "Preparatory Agreemenf' (attached as Exhibit A) and the "Administrative Agreement" (attached as Exhibit B) between the City of Palm Springs and the State Board of Equalization are hereby approved. Resolution No.23053 Page 2 SECTION 2. The City Manager is hereby authorized to execute the two agreements approved in Section 1 of this Resolution, and any other documents to effectuate such agreements, on behalf of the City. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 7TH DAY OF DECEMBER, 2011. DAVID H. READY MANAGER ATTEST. ?MESI:THOMPSON, CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 23053 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on 7th day of December, 2011 by the following vote: AYES: Councilmember Hutcheson, Councilmember Lewin, Councilmember Mills, Mayor Pro Tem Foat, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. MES THOMPSON, CITY CLERK_ City of Palm Springs, California /4 ZOf CERTIFIED COPY I certify that this is a true and correct copy of the document on file in the official records of the City of Palm Springs. i City Clerk This cerii cation must appear in blue with an original signature. EXHIBIT A - AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE CITY'S TRANSACTIONS AND USE TAR ORDINANCE In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Palm Springs, California, hereinafter called City, and the STATE BOARD OF EQUALIZATION,hereinafter called Board, do agree as follows: 1. The Board agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City. 2. City agrees to pay to the Board at the times and in the amounts hereinafter specified all of the Board's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Board's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Board's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code. 3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Board. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City. 4. Any dispute as to the amount of preparatory costs incurred by the Board shall be referred to the State Director of Finance for resolution,and the Director's decision shall be final. 5. Preparatory costs incurred by the Board shall be billed by the Board periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the - Board the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. 6. The amount to be paid by City for the Board's preparatory costs shall not exceed one hundred seventy-five thousand dollars($175,000)(Revenue and Taxation Code Section 7272.) I EXMIT A 7. Communications and notices may be sent by first class United States mail Communications and notices to be sent to the Board shall be addressed to: STATE BOARD OF EQUALIZATION P. O.BOX 942879 SACRAMENTO, CALIFORNIA 94279-0073 ATTENTION: EXECUTIVE DIRECTOR Communications and notices to be sent to City shall be addressed to: CITY OF PALM SPRINGS P. O.BOX 2743 PALM SPRINGS, CA 92263 ATTENTION: CITY MANAGER&CITY CLERK 8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Board has received all payments due from City under the terms of this agreement. CITY OF PALM SPRINGS,CALIFORNIA STATE BOARD OF EQUALIZATION By By DAVID H.READY, CITY MANAGER (Executive Director) ATTEST: JAMES THOMPSON, CITY CLERK APPROVED AS TO FORM: DOUGLAS C. HOLLAND City Attorney (eW.uro2) 2 EXHIBIT B - AGREEMENT FOR STATE ADMINISTRATION OF CITY TRANSACTIONS AND USE TAXES The City Council of the City of Palm Springs has adopted, and the voters of the City of Pahn Springs (hereafter called"City"or"District")have approved by the required majority vote, the City of Palm Springs Transactions and Use Tax Ordinance (hereafter called"Ordinance"), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the State Board of Equalization, (hereinafter called the`Board") and the City do agree as follows: ARTICLE I DEFINITIONS Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following: 1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6,Division 2 of the Revenue and Taxation Code. 2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 1802, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2. ARTICLE II ADMINISTRATION AND COLLECTION OF CITY TAXES A. Administration. The Board and City agree that the Board shall perform exclusively all functions incident to the administration and operation of the City Ordinance. B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the State Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Board pursuant to Article N of this Agreement, and transmitting to City the amount to which City is entitled. C. Transmittal of money. 1. For the period during which the tax is in effect,and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible,but not less often than twice in each calendar quarter. 2. For periods subsequent to the expiration date of the tax whether by City's self-imposed limits or by final judgment of any court of the State of California holding that City's ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter. 3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be famished at least quarterly indicating the amounts withheld pursuant to Article rV of this Agreement. D. Rules. The Board shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder. E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Board shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer,but shall apply moneys collected to the satisfaction of the claims of the State, cities,counties, cities and counties,redevelopment agencies,other districts,and City as their interests appear. F. Security. The Board agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available Rev.1105 2 for the payment of the claims of City for district taxes owing to it as its interest appears. The Board shall not be required to change the terms of any security now held by it,and City shall not participate in any security now held by the Board. j G. Records of the Board. When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Board agrees to permit authorized personnel of the City to examine the records of the Board, including the name, address, and account number of each seller holding a seller's permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Board's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Board pursuant to this Agreement. H. Annexation. City agrees that the Board shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Board. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary. ARTICLE III ALLOCATION OF TAX A. Allocation. In the administration of the Board's contracts with all districts that impose transactions and use taxes imposed under ordinances,which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code: 1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or,in the discretion ram.rros 3 of the Board, to all districts with which the Board has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers. 2. All district taxes collected as a result of determinations or billings made by the Board, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing,refund or credit applies. B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Board in determining the place of use. ARTICLE IV COMPENSATION The City agrees to pay to the Board as the Board's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Board for the City. ARTICLE V MISCELLANEOUS PROVISIONS A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate. A notification is complete when deposited in the mail. Rev.I10S 4 Communications and notices to be sent to the Board shall be addressed to: State Board of Equalization P.O. Box 942879 Sacramento,California 94279-0073 Attention: Executive Director Communications and notices to be sent to the City shall be addressed to: City of Palm Springs P.O.Box 2743 Pahn Springs,CA 92263 Attention: City Manager and City Clerk Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above. B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Board completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance. C. Notice of Repeal of Ordinance. City shall give the Board written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. Rev.1105 5 ARTICLE VI ADMINISTRATION OF TAXES IF THE ORDINANCE IS CHALLENGED AS BEING INVALID A. Impoundment of funds. 1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid. 2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Board the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non- appealable. B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement,the parties mutually agree that: 1. Board may retain all payments made by City to Board to prepare to administer the City Ordinance. 2. City will pay to Board and allow Board to retain Board's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement. 3. City will pay to Board or to the State of California the amount of any taxes plus interest and penalties, if any, that Board or the State of California may be required to rebate or refund to taxpayers. Rev.1105 4. City will pay to Board its costs for rebating or refunding such taxes, interest, or penalties. Board's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually maldng these refunds, designing and printing forms, and developing instructions for Board's staff for use in making these rebates or refunds and any other costs incurred by Board which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Board's direct and indirect costs as specified by Section 11256 of the Government Code. 5. Costs may be accounted for in a manner,which conforms to the internal accounting,and personnel records currently maintained by the Board. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City. 6. Any dispute as to the amount of costs incurred by Board in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final. 7. Costs incurred by Board in connection with such refunds shall be billed by Board on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Board shall bill City on or before the 25th of each month for all costs incurred by Board for the preceding calendar month. City shall pay to Board the amount of such costs on or before the last day of the succeeding month and shall pay to Board the total amount of taxes, interest, and penalties refunded or paid to taxpayers,together with Board costs incurred in making those refunds. CITY OF PALM SPRINGS,CALIFORNIA STATE BOARD OF EQUALIZATION By By DAVID H. READY,CITY MANAGER (Executive Director) ATTEST: JAMES THOMPSON,CITY CLERK DOUGLAS C.HOLLAND,City Attorney Rev.1105 7 RESOLUTION NO. 23048 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA RECITING THE FACT OF THE REGULAR MUNICIPAL ELECTION HELD ON NOVEMBER 8, 2011, DECLARING THE RESULT AND SUCH OTHER MATTERS AS ARE PROVIDED BY LAW. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, HEREBY FINDS: A. A Regular Municipal Election was held and conducted in the City of Palm Springs, California, on Tuesday, November 8, 2011, as required by law. B. Notice of the election was given in time, form and manner as provided by law; that voting precincts were properly established; that election officers were appointed and that in all respects the election was held and conducted and the votes cast, received and canvassed and the returns made and declared in time, form and manner as required by the provisions of the laws of the State of California, and the Charter of the City of Palm Springs. C. Pursuant to §7 of Resolution No. 22957, adopted by the City Council on June 15, 2011, the Riverside County Registrar of Voters, at the direction of the City Clerk of the City of Palm Springs, canvassed the returns of the election and has certified the results to the City Council. The results are attached to this resolution as Exhibit A. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS HEREBY DETERMINES, DECLARES, APPROVES, AND RESOLVES: SECTION 1. The whole number of ballots cast in the precincts except vote-by- mail ballots was 3,695. That the whole number of vote-by-mail ballots cast in the City was 7,813, making a total of 11,508 ballots cast in the City[50.96% Voter Turnout]. SECTION 2. The Regular Municipal Election .was held for the purpose of electing: a. Mayor of the City of Palm Springs; b. Two-members to the office of Member of the Palm Springs City Council; C. The submission to the qualified voters an ordinance implementing a one- percent (1%) local transactions, sales and use tax for the period of twenty-five (25) years [Measure "JI. Resolution No.23048 _- Page 2 SECTION 3. The names of the persons voted for at the election for the office of Mayor of the City of Palm Springs for the term ending December, 2015 are as follows: Bill Ferra Don Cook Phyllis Claire Burgess Bridgette Sullenger Vincent William Steven Ziegler Jeff Nichols Steve Pougnet Write-in Candidate Wayne Gottlieb SECTION 4. The names of persons voted for at the election for the office of Member of the Palm Springs City Council for the term ending December, 2015 are as follows: Rick Hutcheson Kerry Hendrix John Tymon Elizabeth "Liz"Glass Lee Weigel Paul Lewin SECTION 5. The City Council pursuant to its right and authority, ordered submitted to the qualified voters the following question and ordinance [Measure "JI: Shall an ordinance to provide funding that cannot be taken by the State and help preserve Palm Springs' city services, YES including without limitation police, fire, library, parks, streets/pothole repair, acquisition and development of garages and parking facilities, installation and maintenance of improvements and facilities for the implementation of the Museum Market Plaza Specific Plan, by enacting a City of Palm Springs 1%sales and use tax,for 25 years, subject to NO independent annual audits, be adopted? SECTION 6. The number of votes given at each precinct, the number of votes for each qualified candidate and Measure "J" are attached hereto and incorporated herein as Exhibit A to this Resolution. SECTION 7. The City Council determines and declares that Steve Pougnet was elected to the office of Mayor of the City of Palm Springs for the term ending December, 2015. Resolution No.23048 Page 3 SECTION 8. The City Council determines and declares that Paul Lewin and Rick Hutcheson were elected to the office of Member of the Palm Springs City Council for the term ending December, 2015. SECTION 9. The City Council determines and declares that as a result of the election, a majority of the voters voting on Measure "J" implementing a one-percent (1%) local transactions, sales and use tax for the period of twenty-five (25) years, did vote in favor of it, and that Measure "J" was carried, and shall be deemed adopted and ratified. SECTION 10. The Mayor and City Clerk are hereby authorized and directed to execute Ordinance No. 1802, "AN ORDINANCE OF THE PEOPLE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 3.22 TO THE PALM SPRINGS MUNICIPAL CODE, APPROVING AND IMPLEMENTING A ONE PERCENT (1%) TRANSACTIONS, SALES, AND USE TAX;" (attached hereto and incorporated herein as Exhibit B to this Resolution) and the City Clerk shall certify to the passage of Ordinance No. 1802, by the People of the City of Palm Springs, enter it into the book of original Ordinances, correct any non-substantive typographical errors, and cause such Ordinance to be codified in the Palm Springs Municipal Code. SECTION 11. The City Clerk shall enter on the records of the City Council a statement of the results of the election, showing: a. The whole number of votes cast in the City; b. The qualified candidates voted upon; C. The measure voted upon; d. For what office each person was vote for, e. The number of votes given at each precinct to each to each qualified candidate, and for and against Measure "J;" f. The total number of votes given in the City for each qualified candidate, and for and against Measure "J." SECTION 12. The City Clerk shall certify to the adoption of this resolution and enter it into the book of original resolutions. PASSED, APPROVED AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 7TH DAY OF DECEMBER, 2011. DAVID H. READ MANAGER Resolution No.23048 Page 4 ATTEST: MES THOMPSON, CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 23048 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on 7t' day of December, 2011 by the following vote: AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Mills, Mayor Pro Tern Weigel, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. MES THOMPSON, CITY CLERK City of Palm Springs, California 1 >71 CERTIFIED COPY i certify that this Is a true and correct copy of the document on file in the official records 6f the City of Palm Springs. City Clerk This ?ficaflon must appeaz in biue_with an original signature. EXHIBIT A rtw oe 4,Yf /*- 4 Kari Verjif V Rebecca Spencer Registrar of Voters �,f ,,+ Assistant Registrar of Voters 9, REGISTRAR OF VOTERS COUNTY OF RIVERSIDE CERTIFICATE OF REGISTRAR OF VOTERS TO THE RESULTS OF THE CANVASS OF ELECTION RETURNS State of California ) )ss. County of Riverside ) 1, KARI VERJIL, Registrar of Voters of said County, do hereby certify that, in pursuance of the provisions of Sections 15301, 15372, and 15374 of the California Elections Code, and the resolution adopted by the City Council, I did canvass the returns of the votes cast on November 8, 2011, as part of the Consolidated General Election in the CITY OF PALM SPRINGS and I further certify that the statement of votes cast, to which this certificate is attached, shows the whole number of votes for each candidate for elective office and for and against each measure at said election, in said City, and in each precinct therein, and that the totals as shown for said election are full, true, and correct. Dated this I e day of November 2011. RI VERJIL e� Registrar of Vote 1 V. ('Y. 2724 Gateway PAve,RimmIde,CA 92507-0918•(951)486-7200•FAX(951)486-7272-TTY(951)697-89M -www.voleinro.net 11/16n1 4:09 PM RIVERSIDE COUNTY Statement of Vote 19 of 35 o November 8,2011 GENERAL CONSOLIDATED ELECTION NON-PARTISAN CITY OF PALM SPRINGS-MAYOR 100013 >z KW W W tB so N so W J M F Q Q = J J z N V q of 0 U _ m u �• W O N !- 0! 2y h t�i LL U J W J z W w [t J z } U (9 w - m 3�- al O A- m 49005 PAIMSPRINGS. 2218; $:.11.2d '>2 20 _: --36 'a'li YS 333 , 49005 Nola by US RepaiI g 2318 i 68 31.51 30 :'15 O " 33 N 426 99006 FP{A4 SPRINGS; 1-182)` - 362:.-19.51 "1S 't4 '=,'.1 9Z -Y3 1 "211 49006-Vde by Mai RepIwlie 1027 624 34.15 49 13 26 46 1 49m9 PALMSPRINGS 1096 29S 15.7 1 7 16 29 I 1 1 4S009-VOMby Mai RapoI0n9 INS 31.6 21 0 1 32 23 34 426 49017 PALM SPRINGS @2] 381 ,:167 :fi'!: 40 ::-<}1 '.,N >.21 2 . ::'254 - 49bi7VolebyAladRepoebn -227 ]d5 ',3iS7 3] i:' zu ';16• ..33 '.In "36 ",499 49416 PNAI SPWNc3. 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Kad VerJtf m Rebecca Spencer Registrar of Voters Assistant Registrar of Voters qA REGISTRAR OF VOTERS COUNTY OF RIVERSIDE CONSOLIDATED GENERAL ELECTION NOVEMBER 8, 2011 OFFICIAL TALLY RESULTS OF QUALIFIED WRITE-IN CANDIDATES November 15, 2011 WAYNE GOTTLIEB- --- ---------------22 KART VERJIL Registrar of Voters 2724 Gateway Drive,Riverside,CA 92507-0918 (951)486-7200•FAX(951)486-7272•TTY(951)697-8966 www.voteinfo.net EXHIBIT B ORDINANCE NO. 1802 AN ORDINANCE OF THE PEOPLE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING CHAPTER 3:22 TO THE PALM SPRINGS MUNICIPAL CODE, APPROVING AND IMPLEMENTING A ONE PERCENT (1%) TRANSACTIONS, SALES,AND USE TAX. THE PEOPLE OF THE CITY OF PALM SPRINGS HEREBY ORDAIN AS FOLLOWS: SECTION 1. Chapter 3.22 is hereby added to Division I of Title 3 of the Palm Springs Municipal Code to read: SALES AND USE TAX 3.22.010 Title. 3.22.020 Purpose. 3.22.030 Operative Date. 3.22.040 Contract with State. 3.22.050 Transactions and Sales Tax Rate. 3.22.060 Place of Sale. 3.22.070 Use tax rate. 3.22.080 Adoption of Provisions of State Law. 3.22.090 Limitation on Adoption of State Law. 3.22.100 Permit not Required. 3.22.110 Exemptions and Exclusions. 3.22.120 Amendments. 3.22.130 Enjoining Collection Forbidden. 3.22.140 Independent Annual Audit. 3.22.010 Title. This Chapter shall be known as the City of Palm Springs Local Transactions and Use Tax Code. This Chapter shall be applicable in the incorporated territory of the City of Palm Springs hereinafter referred to as the "City." 3.22.020 Purpose. This Chapter 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 retail transactions and use tax to be applied throughout the entire territory of the City to the fullest extent permitted by law and 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 of the Revenue and Taxation Code, which authorizes the City to adopt this Chapter if a majority of the Ordinance No. 1802 Page 2 electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. (b) To adopt a retail transactions, sales, 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 Divisiori 2 of the Revenue and Taxation Code. (c) To adopt a retail transactions, sales, and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization 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 State Board of Equalization in administering and collecting the California State sales and use taxes. (d) To adopt a retail transactions, sales, and use tax ordinance that car! 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 Chapter. (e) To provide transactions, sales, and use tax revenue to the City to be used for the general governmental purposes of the City and with any transactions, sales, and use tax revenue received being placed into the City's general fund. 3.22.030 Operative Date. This Chapter shall be operative on the first day of the first calendar quarter commencing at least thirty (30) days after the City Council certifies the results of the election. 3.22.040 Contract with State. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions, sales and use tax ordinance; provided, that if the City shall not have contracted with, the State Board of Equalization 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 execution of such contract. 3.22.050 Transactions and Sales Tax Efate. 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 one Ordinance No. 1802 Page 3 percent (1%) of the gross receipts of any retailers for the sale of all tangible personal property sold at retail in said territory on and after the operative date of this Chapter. 3.22.060 Place of Sale. For the purposes of this Chapter, 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 or her agent to an out-of-State 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 State Board of Equalization. 3.22.070 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 Chapter for storage, use, or other consumption in said territory at the rate of one percent (1%) 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. 3.22.080 Adoption of provisions of State Law. Except as otherwise provided in this Chapter 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 Chapter as though fully set forth herein. 3.22.090 Limitation on Adoption of State Law. 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. The substitution, however, shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California. Ordinance No. 1802 Page 4 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Chapter. 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. 3.22.100 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 seller's permit shall not be required by this Chapter. 3.22.110 Exemptions and Exclusions. (a) There shall be excluded from the measure of the transactions and sales tax and the 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-Bums Uniform Local Sales and Use Tax Law or the amount of any State-administered 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 Ordinance No. 1802 Page 5 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 or her 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 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-City 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 the ordinance codified in this Chapter. 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 the ordinance codified in this Chapter. 5. For the purposes of subsections (b)(3) and (b)(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 Chapter, 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 4 Ordinance No. 1802 Page 6 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 Chapter. 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 this Chapter. 6. For the purposes of subsections (c)(3) and (c)(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 subsection (c)(7) of this Section, 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 Chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district 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 consumption of which is subject to the use tax. (a) Nothing in this Chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State of California. Ordinance No. 1802 Page 7 3.22.120 Amendments. All amendments subsequent to the effective date of this Chapter 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 Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter. 3.22.130 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 Chapter, 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. 3.22.140 Independent Annual Audit. The proceeds resulting from this transactions, sales, and use tax shall be deposited into the City's general fund and become subject to the same independent annual audit requirements as other general fund revenue. The independent auditor's report, which shall include an accounting of the revenues received and expenditures made from the transactions and use tax, will be presented annually to the City Council and made available for public review. SECTION 2. This Ordinance shall become effective upon adoption by a majority of the voters casting votes at the �eneral municipal election on November 8, 2011, and shall expire on the twenty-fifth (25 )anniversary of the operative date, unless otherwise extended by a majority vote of the electors in the City of Palm Springs. PASSED, APPROVED, AND ADOPTED BY THE PEOPLE OF THE CITY OF PALM SPRINGS AT THE REGULAR MUNICIPAL ELECTION HELD THE 8TH DAY OF NOVEMBER, 2011. STEPHEN P. POUGNET, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK Ordinance No. 1802 Page 8 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss. CITY OF PALM SPRINGS ) CERTIFICATION I, JAMES THOMPSON, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. 1802 is a full, true, and correct copy, and was adopted by a majority vote of the People of the City of Palm Springs, at the Regular Municipal Election held the 8a' day of November, 2011, as appears by the official returns of said election, and the Statement of Votes Cast as declared by the City Council, Resolution No. 23048, adopted the 7t' day of December, 2011. JAMES THOMPSON, CITY CLERK City of Palm Springs, California