RES-11559 ADD SALES TAX MEASURE TO NOVEMBER 5, 2024 BALLOTRESOLUTION NO. 11559
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE ORDERING THE SUBMISSION
TO THE QUALIFIED ELECTORS OF THE CITY A
CERTAIN MEASURE RELATING TO A LOCAL
GENERAL TRANSACTIONS AND USE TAX (SALES
TAX) AT THE NOVEMBER 5, 2024, GENERAL
MUNICIPAL ELECTION AS CALLED BY
RESOLUTION NO. 11545
WHEREAS, the City of Orange ("City") residents strongly prioritize maintaining and
protecting city services that protect health,welfare and safety of residents and maintain the quality
of life of residents in the City; and
WHEREAS,the City believes that safe neighborhoods and high-quality city services make
for a safe and desirable community,create demand for local homes and help keep property values
strong; and
WHEREAS, local revenues have not kept pace with the rising costs of maintaining city
services and facilities and existing funds will not support the quality and level of service that
residents have come to expect; and
WHEREAS, maintaining public safety services to quickly respond to emergencies and
keeping public areas safe and clean is important to the quality of life in the City; and
WHEREAS,to ensure a better future,the City has been proactive in responding to funding
challenges by reducing costs wherever feasible without impacting resident services; however,
additional revenue is needed to protect the quality of life for City residents; and
WHEREAS, the City is committed to keeping tax dollars local to maximize funds
available for city services for residents instead of sending local tax dollars to the County or the
State; and
WHEREAS, if enacted, a new transactions and use tax measure would give the City local
control over funds for local needs and no funds could be taken by the State; and
WHEREAS, on May 14, 2024, the City Council adopted Resolution No. 11545 calling a
General Municipal Election for Tuesday, November 5, 2024; and
WHEREAS, on May 14, 2024, the City Council also adopted Resolution No. 11544
requesting that the General Municipal Election be consolidated with the Statewide General
Election to be held on November 5,2024,and requested assistance of the Orange County Registrar
of Voters; and
WHEREAS, California Revenue and Taxation Code Section 7285.9 authorizes the City to
levy a general transactions and use (sales)tax, with all revenues deposited into the City's General
Fund to be expended for governmental purposes as determined by the City Council; and
WHEREAS,in order to levy such a tax,the ordinance imposing the tax must be approved
by a two-thirds vote of all members of the City Council and the tax must be approved by a majority
vote of the qualified voters of the City voting in an election on the issue; and
WHEREAS, the City Council desires to submit to the voters of the City, at the General
Municipal Election to be held on November 5, 2024, an ordinance imposing a one-half percent
0.5%)transaction and use (sales)tax.
NOW, THEREFORE, the City Council of the City of Orange does hereby resolve,
declare, determine and order as follows:
SECTION 1. That the above recitals are true and correct and are incorporated herein.
SECTION 2. That the City Council, pursuant to its right and authority, does order
submitted to the voters at the General Municipal Election to be held on November 5, 2024, the
following question:
City of Orange Public Safety/City Services Measure
YES
Shall the measure providing funding for City of Orange's general
government use such as maintaining 911 response, fire/police
protection/paramedic services; recruiting/retaining well-trained
police/firefighters; preventing property crimes/thefts; addressing NO
homelessness; keeping public areas/parks safe/clean; maintaining
safe routes to school; repairing streets/potholes by establishing a
0.5%transactions and use tax(sales tax)providing approximately
19,000,000 annually expiring after 10 years; requiring audits,
spending disclosure, all funds benefiting City of Orange residents,
be adopted?
SECTION 3. That the proposed complete text of the ordinance to be submitted to the
voters is attached as Exhibit A. The ballot question and the ordinance are collectively referred to
herein as the "Measure."
SECTION 4. That the vote requirement for the Measure to pass is a majority (50%+1)of
the votes cast.
SECTION 5. The City Clerk is hereby directed to file a certified copy of this Resolution
with the Board of Supervisors of the County of Orange and the Registrar of Voters of the County
of Orange.
SECTION 7. The City Clerk shall certify to the passage and adoption of this Resolution
and enter it into the book of original Resolutions.
Resolution No. 11559 2
ADOPTED this 28th day of June 2024.
aniel R. Slater, Mayor, City of Orange
ATTEST:
ir 41411:1tVlaCo
APPR VED AS TO FORM:
4...• ic?
Mike Vigliotta, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ORANGE
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify
that the foregoing Resolution was duly and regularly adopted by the City Council of the City of
Orange at a special meeting thereof held on the 28th day of June 2024 by the following vote:
AYES:COUNCILMEMBERS: Barrios, Tavoularis, Bilodeau, Gutierrez, and Slater
NOES:COUNCILMEMBERS: Dumitru and Gyllenhammer
ABSENT: COUNCILMEMBERS: None
a,ela Co eman, City Clerk, Ci rOrange
tom
Resolution No. 11559 3
EXHIBIT A
PROPOSED] ORDINANCE NO. 17-24
AN ORDINANCE OF THE PEOPLE OF THE CITY OF ORANGE,ADDING
CHAPTER 3.23 TO TITLE 3 OF THE ORANGE MUNICIPAL CODE TO
ENACT A 0.5% PERCENT TRANSACTIONS AND USE TAX(SALES TAX)
FOR GENERAL GOVERNMENT USE TO BE ADMINISTERED BY THE
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS,Article XIII C, section 2(b) of the California Constitution provides that any
general tax imposed, extended, or increased by the City Council shall not take effect until it is
submitted to the electorate and approved by a majority of voters in a regularly scheduled general
election in which members of the City Council are also up for election or reelection; and
WHEREAS, this Ordinance shall only take effect following its approval by a majority of
City voters in the election to be held on November 5, 2024.
NOW,THEREFORE,the People of the City of Orange hereby ordain as follows:
SECTION I. Chapter 3.23 [Transactions and Use Tax] is hereby added to the Orange
Municipal Code to read as follows:
Chapter 3.23—Transactions and Use Tax
3.23.010—Title
This ordinance shall be known as the "Orange Transactions and Use Tax Ordinance."The
City of Orange shall be hereinafter referred to as the "City."This ordinance shall apply in
the incorporated territory of the City.
3.23.020—Operative Date
Operative Date" means the first day of the first calendar quarter commencing more than
110 days after the adoption of this ordinance.
3.23.030—Purpose
This ordinance 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 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 tax ordinance which shall be operative 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.
B. 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.
C. 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.
D. 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.
3.23.040—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.
3.23.050—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 0.5% 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 ordinance.
3.23.060—Place of Sale
For the purposes of this ordinance, 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.
3.23.070—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 onand after the operative date of
this ordinance for storage, use or other consumption in said territory at the rate of 0.5%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.
3.23.080—Adoption of Provisions of State Law
Except as otherwise provided in this ordinance 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 ordinance as though fully set
forth herein.
3.23.090—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:
A. 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:
1.The word "State" is used as a part of the title of the State Controller, State
Treasurer, State Treasury, or the Constitution of the State of California.
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 California Department of Tax and Fee Administration, in
performing the functions incident to the administration or operation of this
Ordinance.
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.
1.A retailer engaged in business in the District"shall also include any retailer
that, in the preceding calendar year or the current calendar year, has total
combined sales of tangible personal property in this state or for delivery in
the State by the retailer and all persons related to the retailer that exceeds
five hundred thousand dollars ($500,000). For purposes of this section, a
person is related to another person if both persons are related to each other
pursuant to Section 267(b) of Title 26 of the United States Code and the
regulations thereunder.
3.23.100—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 transactor's permit shall not be required by this ordinance.
3.23.110—Exemptions and Exclusions
A. 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.
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 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 this ordinance.
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 this
ordinance.
5.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.
C. There are exempted from the use tax imposed by this ordinance,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 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
ordinance.
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
of this ordinance.
5.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.
6.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.
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 ordinance 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.
3.23.120—Term
The tax imposed by this ordinance shall be effective upon adoption and remain in effect
for ten years or otherwise altered by a majority of the City's voters.
3.23.130—Amendments
All amendments subsequent to the effective date of this ordinance 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 ordinance, provided however,that no such
amendment shall operate so as to affect the rate of tax imposed by this ordinance.
3.23.140—Independent Oversight
A seven-member Independent Citizens'Advisory Committee will be created to review the
expenditure of revenues generated by the tax imposed by this chapter and to make
recommendations to the City Council regarding those expenditures. Members of the
committee will be appointed to terms of not more than 4 years by the City Council. The
Independent Citizens'Advisory Committee shall meet publicly on at least a quarterly basis
to review all revenues and expenditures of the transactions and use tax imposed by this
chapter,review annual audit reports related to the tax,and make at least one written annual
report to the City Council at a public meeting summarizing the Independent Citizens'
Advisory Committee's findings and including any appropriate recommendations. The
minutes of the meetings of Independent Citizens'Advisory Committee shall be provided
to the City Council and placed on the next available regular City Council meeting agenda
for informational purposes.
3.23.150—Audit and Review
The proceeds of the tax imposed by this ordinance,as well as the expenditure thereof,shall
be audited annually by an independent accounting firm.The City Council shall discuss the
results of such audit at a meeting of the City Council that is open to the public. The report
of such audit shall be posted on the City's website.
3.23.160—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 ordinance, 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.
3.23.170—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.
SECTION II. The adoption of this Ordinance is exempt from the California Environmental
Quality Act (CEQA), Public Resources Code section 21000 et seq. and California Code of
Regulations, title 14, section 15000 et seq. (CEQA Guidelines). The general transactions and use
tax this Ordinance adopts is a government funding mechanism that does not "involve any
commitment to any specific project which may result in a potentially significant physical impact
on the environment,"and thus it is not a project under CEQA Guidelines section 15378(b)(4).
SECTION III.Pursuant to California Elections Code Section 9217,this ordinance shall take effect
only if approved by a majority of the eligible voters of the City of Orange voting at a General
Municipal Election to be held on November 5, 2024. It shall be deemed adopted when the City
Council has certified the results of that election by resolution and shall take effect ten (10) days
thereafter.
SECTION IV. The Mayor and City Clerk are hereby authorized to attest to the adoption
of this Ordinance by the People voting thereon on November 5, 2024, by signing where indicated
below.
The foregoing ordinance was PASSED,APPROVED AND ADOPTED by the People of
the City of Orange voting on November 5, 2024, which vote was certified by the City Council on
this day of 2024.
Daniel R. Slater, Mayor, City of Orange
ATTEST:
Pamela Coleman, City Clerk, City of Orange
APPROVED AS TO FORM:
Mike Vigliotta, City Attorney