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HomeMy WebLinkAboutAGENDA REPORT 1999 0901 CC REG ITEM 10FFROM: CITY OF MOORPARK AGENDA REPORT Honorable City Council �t7- 1� ITEM b - F. n ACT1k — TIL4a';zC eCmiY1Pd.'_ _.. ID take, John E. Nowak, Assistant City Manager DATE: 24 August 1999 (Meeting of 09/01/99) SUBJECT: Consider Resolution No. 99 -_ Supporting a State Constitutional Amendment to Allow a Tax for the Funding of Transportation Purposes with a Majority Vote. BACKGROUND: Proposition 62 required all tax increases to be approved by a two - thirds vote of the public to be effective. A proposed Senate Constitutional Amendment (SCA 3) would permit a one -half percent (0.5 %) sales tax increase to be adopted by a simple majority vote for transportation purposes, under certain circumstances. DISCUSSION: Proposition 62, approved by the voters in 1986 required a two - thirds vote of the public before any general purpose tax could be imposed by a local government. Senate Constitutional Amendment 3 (SCA 3) has been introduced by Senator Burton that would allow a county to impose a one - half percent sales tax with a majority vote. The additional tax revenues could be used only for costs related to a transportation expenditure plan adopted prior to the date of voter approval of SCA 3. The tax could only last for 20 years and counties with a current transportation related sales tax addition of one percent could not impose the new tax until the other taxes are repealed. Attached is a summary of the proposed amendment along with its text. VCTC has prepared a schedule for compliance with the establishment of a transportation expenditure plan required 00023 Resolution No. 99- : SCA 3 Support Meeting of 01 September 1999 Page 02 by the amendment. Approval of the expenditure plan would require an affirmative vote by a majority of the city council's in the County (at least 6), and those cities must represent a majority of the population in the incorporated areas. The Board of Supervisors would also need to approve the plan. Ventura County would receive an estimated $40 million a year from this revenue source. The Channel Counties Division of the League of California Cities is requesting cities to indicate its support of the measure when it goes to the Assembly for a vote, scheduled for September 15. Attached is a resolution indicating the Moorpark City Council's support for the Constitutional Amendment for Council's consideration. RECOMMENDATION: That the City Council adopt Resolution No. 99 -_ indicating the City of Moorpark's support for Senate Constitutional Amendment No. 3 relating to a majority vote for transportation related tax increase. Attached: Resolution No. 99- SCA 3 Summary and Text 0002 RESOLUTION NO. 99- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, INDICATING ITS SUPPORT OF SENATE CONSTITUTIONAL AMENDMENT NO. 3 BY ADDING ARTICLE XIXB AUTHORIZING A TAX FOR FUNDING TRANSPORTATION PURPOSES BY SIMPLE MAJORITY VOTE. WHEREAS, California cities need adequate transportation infrastructure and services which are critical to sustaining their prosperity and necessary daily activities; and WHEREAS, eighteen counties in California representing over eighty percent of the state population has passed local countywide transportation sales tax measures by majority vote for critically needed highway and public transit needs representing about one -half of all new capital invested in new facilities over the last 10 years in California; and WHEREAS, its has been demonstrated that these funds have been efficiently and effectively administered to build, maintain and operate high priority local improvement projects; and WHEREAS, it is necessary to place before the voters in the state the opportunity to choose the creation of an additional funding source that is dedicated exclusively to the funding of local transportation requirements, administered by local government representatives, and which is directly responsive to each local government's transportation needs in order to ensure that California will be able to meet its current and future transportation needs; and WHEREAS, Senate Constitutional Amendment No. 3 (SCA 3) would allow local governments who have adopted a transportation expenditure plan to impose a one -half cent sales and use tax for a period of up to 20 years for the proposes of funding local transportation projects with a majority vote of the voters, rather than a two- thirds voter approval requirement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: 000x(. rG Resolution No. 99- Page 02 SECTION 1. The City Council supports the passage of SCA 3, the Transportation Improvement and Maintenance Act, by the California Legislature and signature by the Governor to allow the voters of the State to vote on this matter. SECTION 2. The City Clerk shall send a copy of this resolution to the City of Moorpark's State legislative delegation and to the Governor. SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 1st day of September 1999. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 0 0023' Legislation Page 1 of 5 rt o �►t t Senate ome Senators Legislation Conm tt+ees Schedules OfficesiC'aucuses Audio /TV FE Subscribe Current Session Legislation— Bill I"fo SCA 3 Transportation funding: sales and use tax. Past Sessions BILL NUMBER: SCA 3 AMENDED 08/18/99 Codes Statutes AMENDED IN ASSEMBLY AUGUST 18, 1999 AMENDED IN ASSEMBLY AUGUST 16, 1999 Constitution AMENDED IN SENATE JULY 8, 1999 AMENDED IN SENATE JUNE 28, 1999 AMENDED IN SENATE JUNE 14, 1999 AMENDED IN SENATE MAY 25, 1999 AMENDED IN SENATE MAY 11, 1999 INTRODUCED BY Senators Burton and Karnette (Principal coauthor: Assembly Member Dutra) (Coauthors: Senators Baca, Costa, Figueroa, Kelley, Perata, Rainey, and Speier) (Coauthors: Assembly Members Calderon, Cardoza, Davis, Honda, Kuehl, Longville, Mazzoni, Migden, Romero, Torlakson, and Washington) FEBRUARY 8,1999 Senate Constitutional Amendment No. 3 - -A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by adding Article XIXB thereto, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST SCA 3, as amended, Burton. Transportation funding: sales and use tax. Existing laws set forth in the California Constitution and in statutory provisions either impose or authorize the imposition of state or local sales and use taxes upon the gross receipts from the sale within the taxing jurisdiction of, or the storage, use, or other consumption in this jurisdiction of, tangible personal property. This measure would, for a period of 20 years, impose an additional state sales and use tax rate of 0.5% exclusively for the funding of transportation purposes in a county if that county has adopted a transportation expenditure plan on or before the date this measure is approved by the voters, this measure is approved by a majority of the voters of the county voting on the measure, and the county does not have transactions and use taxes for transportation with a combined total rate of 1% in effect on the date this article is approved by the voters. This bill would require the county transportation expenditure plan to specify, as 0002 http:// www. sen .ca.gov/htbin/testbin/ca -html ?GOPHER ROOT2:[BILL.CURRENT.... /SCA 8/24/1999 Legislation Page 2 of 5 provided, the requirements for amending that plan, and to designate a countywide agency to administer the plan and tax revenues. This measure would, in an otherwise qualified county in which a limited duration transactions and use tax for transportation funding or for general purposes is in effect on the date this measure is approved, impose the additional tax only when that tax is repealed or becomes inoperative. This measure would require the additional sales and use tax to be collected by the State Board of Equalization and would require that revenues derived from that tax be deposited in the Local Transportation Infrastructure Account, which this measure would create in the State Transportation Fund. This measure would require moneys in that account that were collected in each county, less administrative costs and refunds, to be allocated to that county on not less than a quarterly basis by the State Board of Equalization, to be used for transportation purposes, as provided. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State - mandated local program: no. WHEREAS, Adequate transportation infrastructure and services are critical to sustaining California's prosperity as well as the necessary daily activities of all Californians; and WHEREAS, California's current transportation infrastructure and levels of transportation services and funding are inadequate to meet California's present needs, much less the increased needs being created by California's continued growth; and WHEREAS, California's inadequate transportation system has, in many instances, become a burden upon individual citizens, businesses, and public entities; and WHEREAS, Eighteen counties in California representing over 80 percent of the population have passed local countywide transportation sales tax measures by majority vote for critically needed highway and public transit needs representing about one -half of all new capital invested in new facilities over the last 10 years in our state; and WHEREAS, The record clearly demonstrates that these funds have been administered efficiently and effectively to build, maintain, and operate high priority local improvement projects; and WHEREAS, In order to ensure that California will be able to meet its current and future transportation needs and thereby preserve and enhance the prosperity and daily activities of all Californians, it is necessary to place before the voters the opportunity to choose for themselves the creation of an additional funding source that is dedicated exclusively to the funding of California's local transportation requirements, is administered by local government representatives, and is directly responsive to each county's local transportation needs; now, therefore, be it Resolved by the Senate, the Assembly concurring, That the Legislature of the State of California at its 1999 -2000 Regular Session commencing on the seventh day of December 1998, two- thirds of the membership of each house concurring, hereby proposes to the people of the State of California that the Constitution of the State be amended by adding Article XIXB thereto, to read: 000259 http:// www. sen .ca.gov/htbin/testbin/ca -html ?GOPHER ROOT2:[BILL.CURRENT.... /SCA 8/24/1999 Legislation Page 3 of 5 ARTICLE XIXB TRANSPORTATION IMPROVEMENT AND MAINTENANCE ACT SECTION 1. (a) Notwithstanding Section 8.5 of Article IV or any other provision of this Constitution, for the exclusive purpose of funding local and regional transportation planning, research, design, construction, operation, maintenance, rehabilitation, and environmental mitigation directly related to transportation project impacts, the following sales and use taxes are hereby imposed under those conditions and at the time and in the manner set forth in subdivision (b): (1) For the privilege of selling tangible personal property at retail, a sales tax upon all retailers at the rate of one -half of 1 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in this state. (2) An excise tax upon the storage, use, or other consumption in this state of tangible personal property purchased from any retailer for storage, use, or other consumption in this state at the rate of one -half of 1 percent of the sales price of the property. (b) (1) The taxes described in subdivision (a) are imposed within a county, as provided in paragraph (2), only if all of the following conditions are met: (A) On or before the date this article is approved, the county has, in accordance with paragraph (3), adopted a plan for the expenditure for transportation purposes of those tax revenues received by that county pursuant to this section. (B) The measure adding this article is approved by a majority of the voters in the county voting on that measure. (C) Transactions and use taxes, of unspecified duration and imposed for transportation purposes at a total combined rate of 1 percent, are not in effect in the county on the date this article is approved. (2) (A) If a countywide transactions and use tax of limited duration, imposed for transportation purposes or for general purposes, is not in effect in a county on the date the measure adding this article is approved, the taxes described in subdivision (a) are imposed for a period of 20 years commencing with the first calendar quarter that commences more than 90 days after the effective date of this section. (B) If a countywide transactions and use tax of limited duration, imposed for transportation purposes or for general purposes, is in effect in a county on the date the measure adding this article is approved, the taxes described in subdivision (a) are imposed for a period of 20 years commencing with the first calendar quarter commencing more than 90 days after the date upon which the countywide transactions and use tax is repealed or otherwise becomes inoperative. (3) (A) In a county in which a countywide transactions and use tax of limited duration, imposed for transportation purposes , is not in effect on the date this article is approved, the transportation expenditure plan was approved both 00O 50 http:// www. sen .ca.gov/htbin/testbin/ca -html ?GOPHER ROOT2:[BILL.CURRENT.... /SCA 8/24/1999 Legislation Page 4 of 5 by the county board of supervisors and by city councils representing both a majority of the cities in the county and a majority of the population residing in the incorporated areas of the county. (B) In a county in which a countywide transactions and use tax of limited duration, imposed for transportation purposes , is in effect on the date this article is approved, the governing board of �:�*—the agency responsible for administering empendit;uNe P! hat tax adopted the transportation expenditure plan. (C) Each county transportation expenditure plan shall designate a countywide agency as the agency that shall administer the implementation of that plan, including the expenditure of revenues received pursuant to this section. (D) Each county transportation expenditure plan shall specify that it may only be amended with the approval of either two- thirds of the entire membership of the governing board of the agency administering that plan, or a majority of the voters of the county voting on the amendment, or with both of these approvals. (4) (A) Except as otherwise provided in paragraph (2), the taxes described in subdivision (a) shall be imposed in a county in addition to any other state or local sales and use tax or transactions and use tax imposed in that county in accordance with law. (B) For purposes of this article, a countywide transactions and use tax imposed for transportation purposes does not include any portion of a local sales and use tax that is imposed pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or its successor. (5) The taxes described in subdivision (a) shall be administered in the same manner as the taxes imposed pursuant to the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code), or its successor, and shall be subject to any exemption from tax set forth in that law. (c) The taxes described in subdivision (a) shall be collected and administered by the State Board of Equalization, or its successor agency. The revenues derived from that tax shall be deposited in the Local Transportation Infrastructure Account, which is hereby established in the State Transportation Fund. The State Board of Equalization shall allocate the moneys in that account no less frequently than on a quarterly basis as follows: (1) To the State Board of Equalization for its costs of collection and administration. (2) For the payment of refunds of amounts of tax improperly collected pursuant to this section. (3) The balance among the counties, by allocating to each county all of the remaining amount of those tax revenues that were collected with respect to a sale, use, storage, or 00OZ- 01 http: / /www.sen .ca.gov/htbin/testbin /ca -html ?GOPHER ROOT2:[BILL.CURRENT.... /SCA 8/24/1999 Legislation Page 5 of 5 other consumption of tangible personal property that occurred in that county. (d) All revenues received by a county pursuant to this section shall be expended exclusively for local and regional transportation planning, research, design, construction, operation, maintenance, rehabilitation, and environmental mitigation, as deemed necessary by the countywide agency administering the transportation expenditure plan, that are directly related to transportation project impacts. (e) Revenues derived from the taxes imposed pursuant to subdivisions (a) and (b) are not General Fund proceeds of taxes within the meaning of Article XVI. (f) Allocations made from the Local Transportation Infrastructure Account, and the expenditure by a county of revenues received by that county from that account, are not "appropriations subject to limitation" within the meaning of Article XIII B. Home Senators Legislation Committees Schedules Offices /..0 aacu..s.es audio /T. 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