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HomeMy WebLinkAboutResolution 2018-104 N.C.S. 06/18/2018Resolution No. 2018-104 N.C.S. of the City of Petaluma, California SUPPORTING SENATE CONSTITUTIONAL AMENDMENT 20 REGARDING LOCAL SALES TAXES FROM ONLINE SALES AND AUTHORIZING THE MAYOR TO EXECUTE A LETTER OF SUPPORT WHEREAS, California's cities, counties and special districts provide services such as fire and police protection, water, libraries, and parks and recreation programs. Local agencies pay for these services using revenue derived from, among other sources, local taxes and fees, user charges, and state and federal aid. Property tax, the Bradley -Burns uniform local sales and use tax (SUT), and the vehicle license fee (VLF) are the three major revenue sources for most of the state's local agencies; and WHEREAS, the California Constitution prohibits the Legislature from imposing taxes for local purposes, providing instead that the Legislature can authorize local agencies to impose them, such as parcel taxes, utility user taxes, hotel taxes and business license taxes; and WHEREAS, as statutes, the Legislature had authority to change the VLF and SUT rates and exempt items from tax; and in 1978 and 1990, shifted property taxes to schools, and in 1998, reduced the VLF rate and backfilled the loss of revenue with increased property taxes; and WHEREAS, SCA 4 was approved by voters as Proposition I in November 2004 which significantly limited the ability of the Legislature to alter local tax and revenue allocation; and WHEREAS, SCA 20 is a Constitutional Amendment that seeks to reallocate Bradley - Burns local sales tax revenue resulting from online sales from the jurisdiction that is the place of sale to the one where the property is delivered; and WHEREAS, local agencies are confronting a critical shortage of funding to improve public structures and infrastructure, including streets and roads, water/wastewater/storm water, and flood control projects, public safety buildings, and parks; and WHEREAS, if approved by California voters, SCA 20 would provide additional sales tax revenue to local cities, counties and special districts, to address local needs. Resolution No. 2018-104 N.C.S. Page 1 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma supports SCA 20, and authorizes the Mayor to execute a letter expressing that support. REFERENCE: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Under the power and authority conferred upon this Council by the Charter of said City. I hereby certify the foregoing Resolution was introduced and adopted by the Council of the City of Petaluma at a Regular meeting on the 18`h day of June 2018, by the following vote: Albertson, Barrett, Mayor Glass, Vice Mayor Healy, King, Miller None None Kearney City Clerk to ayor Resolution No. 2018-104 N.C.S. Page 2