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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. � - , • . . . . • : . . - . _ 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. ti .` S�'