Ordinance No. 1269 ORDINANCE NO . 1269
AN ORDINANCE OF THE CITY OF VERNON ADDING CHAPTER
20A OF THE VERNON MUNICIPAL CODE TO ENACT A
TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE
STATE BOARD OF EQUALIZATION, UPON ADOPTION BY THE
VOTERS
THE PEOPLE OF THE CITY OF VERNON DO HEREBY ORDAIN:
SECTION 1 : Chapter 20A, which shall be titled "TRANSACTIONS
AND USE TAX, " is hereby added to the Vernon Municipal Code, as follows:
CHAPTER 20A
TRANSACTIONS AND USE TAX
Section 20A.1 . Transactions and Use Tax.
(a) Purpose.
This Section is adopted to achieve the following, among other
purposes, and directs that the provisions hereof be interpreted in
order to accomplish those purposes :
(1) 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, which
authorizes the City to adopt this ordinance if a majority of the
electors voting on the measure vote to approve the imposition of the
tax at an election called for that purpose.
(2) To adopt a retail transactions and use tax ordinance
that incorporates provisions identical to those of the Sales and Use
Tax Law of the State of California insofar as those provisions are not
inconsistent with the requirements and limitations contained in Part
1 . 6 of Division 2 of the Revenue and Taxation Code.
(3) To adopt a retail transactions and use tax ordinance
that imposes a tax and provides a measure therefore that can be
administered and collected by the California Department of Tax and Fee
Administration in a manner that adapts itself as fully as practicable
to, and requires the least possible deviation from, the existing
statutory and administrative procedures followed by the California
Department of Tax and Fee Administration in administering and
collecting the California State Sales and Use Taxes .
(4) To adopt a retail transactions and use tax ordinance
that can be administered in a manner that will be, to the greatest
degree possible, consistent with the provisions of Part 1 . 6 of Division
2 of the Revenue and Taxation Code, minimize the cost of collecting the
transactions and use taxes, and at the same time, minimize the burden
of record keeping upon persons subject to taxation under the provisions
of this ordinance.
(5) To provide transactions and use tax revenue to the City
to be used for general purposes.
(b) Contract with State.
Prior to the operative date, the City shall contract with the
California Department of Tax and Fee Administration to perform all
functions incident to the administration and operation of this
transactions and use tax ordinance; provided, that if the City shall
not have contracted with the California Department of Tax and Fee
Administration prior to the operative date, it shall nevertheless so
contract and in such a case the operative date shall be the first day
of the first calendar quarter following the execution of such a
contract .
(c) Transactions Tax Rate.
For the privilege of selling tangible personal property at retail,
a tax is hereby imposed upon all retailers in the incorporated
territory of the City at the rate of three-quarters of one percent
(0 . 75%) of the gross receipts of any retailer from the sale of all
tangible personal property sold at retail in said territory on and
after the operative date of this Chapter.
(d) 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 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 California Department
of Tax and Fee Administration.
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(e) 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
three-quarters of one percent (0 . 75%) of the sales price of the
property. The sales price shall include delivery charges when such
charges are subject to state sales or use tax regardless of the place
to which delivery is made.
(f) 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.
(g) Limitations on Adoption of State Law and Collection of Use
Taxes .
In adopting the provisions of Part 1 of Division 2 of the Revenue
and Taxation Code:
(1) Wherever the State of California is named or referred to
as the taxing agency, the name of this City shall be substituted
therefor. However, the substitution shall not be made when:
(A) The word "State" is used as a part of the title of
the State Controller, State Treasurer, State Board of Control,
California Department of Tax and Fee Administration, State Treasury, or
the Constitution of the State of California.
(B) 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 California Department of
Tax and Fee Administration, in performing the functions incident to the
administration or operation of this Chapter.
(C) 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:
(i) Provide an exemption from this tax with
respect to certain sales, storage, use or other consumption of tangible
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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;
(ii) 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 .
(D) In Sections 6701, 6702 (except in the last sentence
thereof) , 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation
Code.
(2) 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.
(h) Permit not required.
If a seller ' s permit has been issued to a retailer under Section
6067 of the Revenue and Taxation Code, an additional transactor ' s
permit shall not be required by this Chapter.
(i) Exemptions and Exclusions .
(1) There shall be excluded from the measure of the
transactions 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.
(2) There are exempted from the computation of the amount of
transactions tax the gross receipts from:
(A) Sales of tangible personal property, other than
fuel or petroleum products, to operators of aircraft to be used or
consumed principally outside the county in which the sale is made and
directly and exclusively in the use of such aircraft as common carriers
of persons or property under the authority of the laws of this State,
the United States, or any foreign government .
(B) Sales of property to be used outside the City which
is shipped to a point outside the City, pursuant to the contract of
sale, by delivery to such point by the retailer or his agent, or by
delivery by the retailer to a carrier for shipment to a consignee at
such point . For the purposes of this paragraph, delivery to a point
outside the City shall be satisfied:
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(i) 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
(ii) 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.
(C) The sale of tangible personal property if the
seller is obligated to furnish the property for a fixed price pursuant
to a contract entered into prior to the operative date of this Chapter.
(D) A lease of tangible personal property which is a
continuing sale of such property, for any period of time for which the
lessor is obligated to lease the property for an amount fixed by the
lease prior to the operative date of this Chapter.
(E) For the purposes of subparagraphs (3) and (4 ) of
this section, the sale or lease of tangible personal property shall be
deemed not to be obligated pursuant to a contract or lease for any
period of time for which any party to the contract or lease has the
unconditional right to terminate the contract or lease upon notice,
whether or not such right is exercised.
(3) There are exempted from the use tax imposed by this
Chapter, the storage, use or other consumption in this City of tangible
personal property:
(A) The gross receipts from the sale of which have been
subject to a transactions tax under any state-administered transactions
and use tax ordinance.
(B) Other than fuel or petroleum products purchased by
operators of aircraft and used or consumed by such operators directly
and exclusively in the use of such aircraft as common carriers of
persons or property for hire or compensation under a certificate of
public convenience and necessity issued pursuant to the laws of this
State, the United States, or any foreign government . This exemption is
in addition to the exemptions provided in Sections 6366 and 6366. 1 of
the Revenue and Taxation Code of the State of California.
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(C) 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.
(D) If the possession of, or the exercise of any right
or power over, the tangible personal property arises under a lease
which is a continuing purchase of such property for any period of time
for which the lessee is obligated to lease the property for an amount
fixed by a lease prior to the operative date of this Chapter.
(E) For the purposes of subparagraphs (3) and (4) of
this section, storage, use, or other consumption, or possession of, or
exercise of any right or power over, tangible personal property shall
be deemed not to be obligated pursuant to a contract or lease for any
period of time for which any party to the contract or lease has the
unconditional right to terminate the contract or lease upon notice,
whether or not such right is exercised.
(F) Except as provided in subparagraph (7) , a retailer
engaged in business in the City shall not be required to collect use
tax from the purchaser of tangible personal property, unless the
retailer ships or delivers the property into the City or participates
within the City in making the sale of the property, including, but not
limited to, soliciting or receiving the order, either directly or
indirectly, at a place of business of the retailer in the City or
through any representative, agent, canvasser, solicitor, subsidiary, or
person in the City under the authority of the retailer.
(G) "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.
(4 ) 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.
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(j) Amendment or Repeal.
(1) 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.
(2) The City Council may amend this Chapter without voter
approval only to make minor technical adjustments consistent with the
purposes set forth in this Chapter and applicable laws or as necessary
to comply with the law.
(k) 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.
(1) Severability.
If any provision of this Chapter or the application thereof to any
person or circumstance is held invalid, the remainder of the Chapter
and the application of such provision to other persons or circumstances
shall not be affected thereby.
(m) Use of Proceeds .
The proceeds from the transactions and use tax imposed by this
Chapter shall be deposited in the general fund of the City and
available for any lawful governmental purpose.
(n) Annual Audit.
The amount generated by this new general purpose revenue
source shall be included in the annual audit of the City' s financial
operations by an independent certified public accountant .
SECTION 2 : Any ordinance or parts of ordinances in conflict
with this Ordinance are hereby repealed.
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SECTION 3: Severability. If any chapter, article, section,
subsection, subdivision, paragraph, sentence, clause, phrase, or word
in this Ordinance or any part thereof is for any reason held to be
unconstitutional or invalid or ineffective by any court of competent
jurisdiction, such decision shall not affect the validity or
effectiveness of the remaining portions of this Ordinance or any part
thereof. The City Council hereby declares that it would have adopted
this Ordinance and each chapter, article, section, subsection,
subdivision, paragraph, sentence, clause or phrase thereof,
irrespective of the fact that any one or more chapters, articles,
sections, subsections, subdivisions, paragraphs, sentences, clauses,
phrases or words be declared unconstitutional, or invalid, or
ineffective.
SECTION 4 : Book of Ordinances . The City Clerk shall attest
and certify to the adoption of this Ordinance and shall cause this
Ordinance and the City Clerk' s certification to be entered in the Book
of Ordinances of the Council of this City. The City Clerk shall cause
this ordinance to be published or posted as required by law.
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SECTION 5: Effective Date. This Ordinance shall go into
effect if approved by a majority of the voters of the City of Vernon
at the general municipal election to be held on April 14, 2020, and
shall be executed by the Mayor upon certification by the City Council
of the results of the election approving this ordinance.
APPROVED AND ADOPTED this 21st day of April, 2020.
ATTEST:
Lisa Pope, City Clerk
APP OVE(LD A TO Oj�' RM:
Aihold M.Alvarez-Glasman,
Interim City Attorney
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bl
Name: Leticia Lopez
Title: Mayor /yvx - '�—
STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, Lisa Pope , City Clerk of the City of Vernon, do hereby
certify that the foregoing Ordinance, being Ordinance No. 1269, was
approved by the voters of the City of Vernon, at the general municipal
election held in the City of Vernon on Tuesday, April 14, 2020, and
thereafter adopted at a meeting of said City Council held on Tuesday,
April 21, 2020, by the following vote:
AYES : Councilmembers : Mayor Lopez, Mayor
Pro-Tem Ybarra, Davis,
Gonzales, Menke
NOES : Councilmembers : None
ABSENT: Councilmembers : None
ABSTAIN: Councilmembers : None
And thereafter was duly signed by the Mayor or Mayor Pro-Tem of
the City of Vernon.
Executed this 20day of May, 2020, at Vernon, California.
61,04‘41/4:-
Lisa Pope, City Clerk
(SEAL)
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STAFF REPORT
City Council Agenda Item Report
Agenda Item No. COV-157-2020
Submitted by. Lisa Pope
Submitting Department: City Clerk
Meeting Date: April 21, 2020
SUBJECT
Results of the City of Vernon April 14, 2020 General Municipal Election
Recommendation:
A. Find that the approval of the proposed action is exempt under the California Environmental Quality Act
(CEQA) because it is an administrative activity that will not result in director indirect physical changes to
the environment and therefore does not constitute a "project" as defined by CEQA Guidelines Section
15378; and
B. Adopt a Resolution reciting the facts of the General Municipal Election held on April 14, 2020,
declaring the results and such other matters as provided by law.
Background:
On December 3, 2019 the City Council adopted Resolution No. 2019-53 calling the general election on
April 14, 2020, conducted by all-mail ballot for the purpose of electing one Council Member and to vote
on two ballot measures:
Measure U - a Charter amendment regarding selection of the Mayor and Mayor Pro Tern; and
Measure V - a sales tax measure.
At the close of the nomination period, one individual qualified as a candidate to appear on the ballot for
City Council Member: Diana Morales Gonzales. As of the close of the write-in nomination period, one
individual qualified as a write-in candidate for City Council Member: Judith Merlo.
As of election day, the City had a total of 101 voters, to whom ballots were issued. A total of 64 ballots
were returned.
On April 14, 2020 the General Municipal Election was held in conformance with the City Charter, Vernon
Municipal Code, California Elections Code and the Federal Voting Rights Act. Ballots received as of
close of polls on Election Day were canvassed Election Night. A second canvass of ballots postmarked
by April 14, 2020, and received by April 17, 2020, will be conducted on Monday, April20, 2020, at 2:00
p.m. in the Council Chambers.
Pursuant to Elections Code Section 10263, the City Council must adopt a resolution reciting the facts of
the election. The Certificate of Canvass attached to the resolution declaring the results of the election
provides details of the results including the total votes cast for each candidate. The results will be
updated and provided for Council approval at its meeting on April 21, 2020.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Resolution - General Municipal Election Results
SUPPORTING DOCUMENTATION
,,_ .(Csjof V 4:4\
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^� Y EXHIBIT A
CITY OF VERNON
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APRIL 14, 2020 GENERAL MUNICIPAL ELECTION
CERTIFICATION OF CANVASS
I, Lisa Pope, City Clerk of the City of Vernon, California, do hereby certify that I have
canvassed the returns of the General Municipal Election held on April 14, 2020, and
find that the number of votes cast were as follows:
TO ELECT ONE 1St Count 2nd Count
COUNCIL MEMBER April 14, 2020 April 20, 2020 Total
Diana Morales Gonzales 44 44
Write-In Judith Merlo 19 19
Total Votes 63 63
BALLOT MEASURES 1St Count 2nd Count
April 14, 2020 April 20, 2020 Total
Measure U — Mayor/Mayor YES 50 50
Pro Tern Selection Process NO 12 12
Measure V — Sales Tax YES 45 i 45
Measure NO 17 17
VOTER TURNOUT These results are semi-official and reflect ballots received
and verified as of close of polls on election day.
Registered Voters 101 The second canvass will be conducted on Monday, April 20,
2020, at 2:00 p.m. The results will be certified and the new
Voter Turnout 63% Council Member sworn in at the Regular City Council
meeting on Tuesday, April 21, 2020.
Lisa Pope, City Clerk
I April 16, 2020