Resolution No. 4649
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RESOLUTION NO. 4649
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A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON PERTAINING TO SALES TAX
REDISTRIBUTION AND OPPOSING AB 301 (MORI)
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6 WHEREAS, the passage of Proposition 13 will reduce City
7 and County statewide revenue collected from the property tax by
8 an estimated $2.89 billion during 1978-79; and said loss in
9 property tax revenue will cause a cut in local services, and
10 additional economic side effects concomitant with severely reduced
11 revenues; and,
12 WHEREAS, the revenue structure of the State of California
13 has produced a General Fund surplus of an estimated $5 billion
14 of which the State four and three-fourths cents share of the six
15 cents statewide sales and use tax makes up the major portion since
16 said tax is 34% or $4,314,200,593 of total state revenues generate
17 during fiscal year 1976-77; and,
18 WHEREAS, the six cents state sales tax is imposed on the
19 people throughout California and collected locally with four and
20 three-fourths cents used for State general fund expenditures, one-
21 fourth cent to fund transportation in each county, with the
22 remaining one cent being returned to cities and counties statewide
23 on a point of origin basis and generating approximately $1 billion
24 for every cent of tax; and,
25 WHEREAS, said one percent tax is returned to the cities
26 because they have locally legislated said tax in accordance with
27 ~7203 of the Revenue and Taxation Code; and,
28 WHEREAS, the four and three-fourths cent sales and use
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1 tax is projected to continue its annual growth at a rate well in
2 excess of 10%, thus further contributing to the State surplus;
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4 WHEREAS, Assembly Bill 301 (Mori) proposes to re-
5 distribute sales tax predominantly on the basis of property tax
6 loss; and,
7 WHEREAS, the City of Vernon would experience an extreme
8 loss of sales tax revenues by means of the implementation of
9 AB 301 (Mori).
10 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
11 THE CITY OF VERNON AS FOLLOWS:
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SECTION 1: That the City Council of the City of Vernon
13 does hereby find and determine that the recitals contained herein-
14 above are true and correct.
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SECTION 2: That the City Council of the City of Vernon
16 opposes Assembly Bill 301 (Mori) with regard to sale$ tax re-
17 distribution by the State of California.
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SECTION 3: The City Clerk of the City of Vernon shall
19 certify to the passage of this Resolution thereupon and thereafter
20 the same shall be in full force and effect.
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APPROVED AND ADOPTED this 5th day of June, 1979.
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ATTEST:
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BRUCE V. MALKENHORST, City Cler
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STATE OF CALIFORNIA }
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COUNTY OF LOS ANGELES }
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of
5 Vern~n, do hereby certify that the foregoing Resolution, being
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Resolution No.
464~ , was duly adopted by the City Council
7 of the City of Vernon, and was approved by the Mayor of said
8 City at a regular meeting of the City Council held on Tuesday,
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June 5
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y'
City Clerk
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