HomeMy WebLinkAboutAgenda Statement 1973/10/02 Item 21Item No. 21
October 2,1973
Ordinance No. 1501 �,, . .
� . . aGE\DA� ITEP1 N0. [ 21 ]
CNULA VISTA CITT COU\'CIL PIEETI\G OF: OCTOBER 2, 1973
ITEA1 TITLE: Ordinance No. 1501 - Amending Section 30.8, 30.9, adding new
Section 30. 11 and renumbering existing Sections 30.11 and 30.12 to
30. 12 and 30. 13 of Chapter 30, Article II, of Chula Vista City
Code, relating to Uniform Local Sales and Use Taac Law - Second
INITIATED BY: reading and adoption
DirecLor of Finance
BACKGROUND
' This ordinance was placed on first reading at
the meeting of September 25, 1973.
ATTACHED: Resolution [ ] Ordinance [ ] Agreement [ ] Plat [ ]
See EXHIBITS [ ] No.
Financial Statement:
Commission-Board Recommendation:
Department Head Recommendation: Approval
'" City Manager Recommendation: Approval
. � �.AGEND;� ITE�1 N0. [ ZO �
CHULA VISTA CITY COINCIL �IEETING OP: September 25 , 1973
ITE�ITITLE: Ordinance - Amending Sec. 30 . 8 , 30 . 9 , Adding New Sec. 30. 11
an�umbering Existing Secs. 30 .11 and 30 . 12 to 30 .12 and 30 .13 of
Chapt. 30 , Art, II , of C.V. City Code, Relating to Uniforr.l Local Sales
and Use Tax Law
INITIATED BY: Director of Finance
BACKGROUND I
I I
This amendment of the Chula Vista City Code Sections 30. 8
and 30 . 9 and renumbering existing Sections 30 . 11 through 30 . 13
of Chapter 30 , Article 2 , relates to the Uniform Sales and Use
Tax law. � �
The law provides, in summary, that the City of Chula Vista, as
a conforming City, may enact a sales and use tax which is included
in the state sales tax. The State Board of Equalization has the
authority and responsibility for' the administration and disbursement
, of funds collected, • which represent our pro-rata share of the
combination of the city and state sales and use tax. The law
providing for this system is also known as the Bradley-BUrns Act.
The amendments provided by this ordinance are mandatory with
respect to the City if we are to remain a conforming City with-
in the terms of the Bradley-Burns Act. Our failure to conform
with the changes in state law, which have been made by AB 309 ,
would result in our being a nonconforming City under the
Bradley-Burns Act. As a nonconforming City, we would lose .
at least one-quarter ' s revenue due to the City under the Act.
The effect of the amendment is to vary the exemptions under
the law relating to sales and use tax with respect to public
utilities and common carriers.
ATTACHED: Resolution [ ] Ordinance [}{] Agreement [ ] Plat [ ]
See EXHIBITS �X ] No. 1
Financial Statement: N/A
Commission-Board Recommendation:
Department Head Recommendation: Approval
City hlanager Recommendation: This ordinance has no immediate effect on Chula Vi5ta.
� However, if not passed, a possible loss of revenue in the first quarter of 1974 would
be in excess of $300,000.
�
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- . _ AGENDA ITEM NO.. Zp
Page No. 2
The amendments to our local ordinance are made pursuant to
materials supplied to us by the State Board of Equalization.
The amended ordinance must be received by the State Board
of Egualization by November 1, 1973 and take effect by
January 1, 1974 .
Additionally, a resolution will be offered at the Council meeting
of October 2 , 1973 for the adoption of an amendment to an agree-
ment made between the State Board of Equalization and the City
I delegating the responsibility to the Board of Equalization for
the collection and administration of the City sales and use tax.
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