16696 / 29.88% Yes votes ...... 39180 / 70.12% No votes

See Also: Index of all Measures

>The sales tax can only be used to pay for local services; >The tax will terminate on June 30, 2009; and >This Board of Supervisors will immediately repeal the tax if the State attempts to redirect or take the sales tax revenue away from Humboldt County.

This tax is a general tax not raised for a specific purpose. Revenues from the tax will be placed in the County's discretionary General Fund for general purposes. The county estimates that this tax will generate approximately $12 million in revenue each year.

If approved, this tax would be imposed beginning on the first day of the first calendar quarter commencing more than 110 days after approval of the Ordinance. The Ordinance will terminate on June 30, 2009, at which time collection of these taxes will cease, unless a new ordinance is approved by the voters. The current Board of Supervisors, by Resolution, has expressed its intent to cease collection of this tax if notified that the State of California requires the proceeds of the tax to be used for any purpose other than local government general purposes.

To become law, this Measure must be approved by a majority vote of the qualified voters.

Geographically remote and sparsely populated, our local government historically reflects the independent and self-reliant character of its citizens by finding ways to balance the budgets without increased taxes. Humboldt County has maintained stability and services through user fees, department consolidation, deferring maintenance, a hiring freeze, depleting reserves, refinancing debt, budget cuts, layoffs, early retirements, and temporary office closures. Despite these efforts, maintaining the status quo without this tax revenue will be impossible when county projections for year 2005 predict another budget gap of $7 million, meaning budget cuts much deeper than anything we've seen to date.

Humboldt County for the first time must consider a 1% local sales tax to counteract the harsh realities of the State's continual and unprecedented money grabs, with a safeguard enabling the tax to be rescinded if the State attempts to take any of the revenue this generates.

Without this one-cent sales tax essential services such as sheriff patrol/investigation/jail, city police, juvenile hall/probation, district attorney, library, streets, animal control, and parks/recreation will be in jeopardy of further cuts and or elimination.

The County's Budget Task Force and the Eureka Finance Advisory Committee both recommend the 1% transaction (sales) and use tax as the most viable and equitable solution toward countywide financial assistance. A YES vote on Measure L will provide crucial funding for local services and give local government a better chance to retain critical existing services. A defeat of Measure L will inevitably result in further service and program reductions, with far reaching negative impacts on Humboldt County's economic health and well being.

LOCAL TAX FOR LOCAL SERVICES YES on Measure L

s/ Jill Geist, Chair, on behalf of the Humboldt County Board of Supervisors
s/ Gary Philp, Humboldt County Sheriff
s/ Michael J. Giacone, Humboldt County Auditor-Controller
s/ Carolyn Stacey, Humboldt County Librarian
s/ Frank Jager, Humboldt County Coroner-Public Administrator

While citing the problem of local taxes going to the state, they fail to acknowledge that they and the cities, through their state associations, have agreed to give the state even more local taxes for the next two years, in exchange for a promised ballot measure drafted by Sacramento that may or may not pass.

They fail to acknowledge their current redevelopment actions and expenditures which will add to the $18 million already diverted from their general fund and the $ 2 million diverted from the library.

They cite a Eureka Finance Advisory Committee's recommendation, but not the Committee's companion recommendations that the city collect the $6 million that redevelopment owes the general fund, and that they drop the tax on utilities.

They fail to mention that 40 percent (totaling some $5 million) will go to the cities. This is far beyond any city needs.

• Trinidad just increased its sales tax.
• Eureka and Arcata just extended their utility taxes.
• Eureka has $6 million and Fortuna $13 million that they can collect from their Redevelopment Agencies.

IT is guaranteed That the state will take more local taxes.

Why should we vote for more taxes when they give them to the state?

Vote NO on Measure L.

s/ Leo Sears, President, Humboldt Taxpayers League

The city of Trinidad recently increased their sales tax by one percent. Eureka and Arcata recently re-authorized utility taxes. Fortuna is in the black and has given all employees a 5% salary increases and hired 5 new employees.

Eureka's Redevelopment Agency (RDA) owes $6 million to the city's general fund, and Fortuna's RDA owes $13.5 million to the city. With $18 million already diverted from the county's general fund to redevelopment, the County is actively pursuing further diversions its general fund to redevelopment .

All have recently authorized huge retirement benefits for their employees, adding several million dollars to taxpayers costs.

The county has failed to act on the $800,000 in management perks identified by the Humboldt Taxpayer's League and County Grand Jury.

The Sunset and Poison Pill clauses are ineffectual window dressing.

Local governments, through the League of California Cities and California State Association of Counties, have already agreed to give the state an additional $2.6 billion over the next two years.

Their web site says, "Local governments are again stepping up to help in the state's hour of need."

With one hand they ask for more taxes + with the other they are giving it to the state.

That, we believe, says it all + as they come hat in hand for new taxes.

The Humboldt Taxpayer's League urges your NO VOTE on this disproportionate and unfair tax.

s/Leo Sayers, President, Humboldt Taxpayer's League

Measure L is a temporary, LOCAL tax for LOCAL people. The state CANNOT take it and it will end in four years.

Humboldt County Supervisors have NEVER agreed to bail out the State, as the Taxpayer's League wrongly declares.

Before turning to the community for help, county officials studied all options, made hard decisions, and trimmed every reasonable expense. We face another $7 million budget gap next year, but there is no sensible place to make further cuts. This temporary tax is a last-ditch effort to fill the gap.

Measure L is fair. Fair to citizens who cherish our quality of life. Fair to children, fair to seniors, fair to every family who wants a safe community.

Voting YES on Measure L will protect crucial services. Without it, police and sheriff patrols will be cut. Crimes will not be investigated. Criminals will not be fully prosecuted. Libraries, roads, animal control, parks and recreation will be jeopardized and possibly eliminated.

These drastic cuts will devastate our community + socially AND economically.

We urge you to support Measure L. We can't force the State to behave; we must defend our social and economic health the best way we can. A new tax is not a pleasant option, but it is truly our last resort.

Vote YES on Measure L.

s/ Jill Geist, Chair, on behalf of the Humboldt County Board of Supervisors
s/ Gary Philp, Humboldt County Sheriff
s/ Michael J. Giacone, Humboldt County Auditor-Controller
s/ Carolyn Stacey, Humboldt County Librarian
s/ Frank Jager, Humboldt County Coroner-Public Administrator

ORDINANCE NO. 2323

AN ORDINANCE OF THE BOARD OF SUPERVISORS OF THE COUNTY OF HUMBOLDT ADDING CHAPTER 8, DIVISION 1 OF TITLE VII TO THE HUMBOLDT COUNTY CODE RELATING TO THE IMPOSITION OF A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION

The Board of Supervisors of the County of Humboldt ordains as follows:

SECTION 1. Sections 718-1 through 718-15 of Chapter 8 of Division 1 of Title VII are hereby added as shown on the attached pages.

SECTION 2. This ordinance relates to the levying and collecting of the County transactions and use taxes and shall take effect immediately from the date of its passage. This tax ordinance 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. A summary shall be published at least five (5) days before the date set for adoption and again fifteen (15) days after passage of this ordinance. It shall be published once with the names of the Board of Supervisors voting for and against the ordinance in a newspaper of general circulation published in the County of Humboldt, State of California.

PASSED, APPROVED AND ADOPTED this 6th day of July 2004.

AYES: Supervisors Smith, Rodoni, Woolley, Neely, Geist NOES: None ABSENT: None
s/ Jill Geist Chair of the Board of Supervisors of the County of Humboldt, State of California (SEAL)

ATTEST:

Lora Canzoneri, Clerk of the Board of Supervisors County of Humboldt

TITLE VII - ADMINISTRATION

DIVISION 1

TRANSACTIONS AND USE TAX TO BE ADMINISTERED
BY THE STATE BOARD OF EQUALIZATION

CHAPTER 8

718-1. TITLE.

This ordinance shall be known as the Humboldt County Transactions and Use Tax Ordinance. The County of Humboldt hereinafter shall be called "County." This ordinance shall be applicable in the incorporated and unincorporated territory of the County. (Ord. 2323, ' 1, 07/06/2004)

718-2. OPERATIVE DATE.

"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. (Ord. 2323, ' 1, 07/06/2004)

718-3. 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: (Ord. 2323, ' 1, 07/06/2004)

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 of Part 1.7 of Division 2 which authorizes the County to adopt this tax ordinance by a 2/3 vote of the Board of Supervisors 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 held pursuant to Revenue and Taxation Code Section 7285 and Government Code Section 53723. (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

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 State Board of Equalization 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 State Board of Equalization in administering and collecting the California State Sales and Use Taxes. (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

718-4. CONTRACT WITH STATE.

Prior to the operative date, the County shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the County shall not have contracted with the State Board of Equalization 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. (Ord. 2323, ' 1, 07/06/2004)

718-5. TRANSACTIONS TAX RATE.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated and unincorporated territory of the County at the rate of 1% 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. (Ord. 2323, ' 1, 07/06/2004)

718-6. 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 State Board of Equalization. (Ord. 2323, ' 1, 07/06/2004)

718-7. USE TAX RATE.

An excise tax is hereby imposed on the storage, use or other consumption in the County of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 1% 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. (Ord. 2323, ' 1, 07/06/2004)

718-8. 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. (Ord. 2323, ' 1, 07/06/2004)

718-9. 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: (Ord. 2323, ' 1, 07/06/2004)

A. Wherever the State of California is named or referred to as the taxing agency, the name of this County shall be substituted therefor. However, the substitution shall not be made when: (Ord. 2323, ' 1, 07/06/2004)

1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; (Ord. 2323, ' 1, 07/06/2004)

2. The result of that substitution would require action to be taken by or against this County or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. (Ord. 2323, ' 1, 07/06/2004)

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:(Ord. 2323, ' 1, 07/06/2004)

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; (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. (Ord. 2323, ' 1, 07/06/2004)

B. The word "County" 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. (Ord. 2323, ' 1, 07/06/2004)

718-10. 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. (Ord. 2323, ' 1, 07/06/2004)

718-11. 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. (Ord. 2323, ' 1, 07/06/2004)

B. There are exempted from the computation of the amount of transactions tax the gross receipts from: (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

2. Sales of property to be used outside the County which is shipped to a point outside the County, pursuant to the contract of sale, by delivery to such point by the retailer or his 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 County shall be satisfied: (Ord. 2323, ' 1, 07/06/2004)

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 Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-County 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 (Ord. 2323, ' 1, 07/06/2004)

b. With respect to commercial vehicles, by registration to a place of business out-of-County and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

5. For the purposes of subsections (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. (Ord. 2323, ' 1, 07/06/2004)

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this County of tangible personal property: (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

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. (Ord. 2323, ' 1, 07/06/2004)

5. For the purposes of subsections (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. (Ord. 2323, ' 1, 07/06/2004)

6. Except as provided in subparagraph (7), a retailer engaged in business in the County 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 County or participates within the County 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 County or through any representative, agent, canvasser, solicitor, subsidiary, or person in the County under the authority of the retailer. (Ord. 2323, ' 1, 07/06/2004)

7. "A retailer engaged in business in the County" 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 Chapter 2 of 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 County. (Ord. 2323, ' 1, 07/06/2004)

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 County 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. (Ord. 2323, ' 1, 07/06/2004)

718-12. TERMINATION.

This ordinance shall terminate on June 30, 2009. (Ord. 2323, ' 1, 07/06/2004)

718-13. 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. (Ord. 2323, ' 1, 07/06/2004)

718-14. 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 County, or against any officer of the State or the County, 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. (Ord. 2323, ' 1, 07/06/2004)

718-15. SEVERABILITY.

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. 2323, ' 1, 07/06/2004)

718-16. EFFECTIVE DATE.

This ordinance relates to the levying and collecting of the County transactions and use taxes and shall take effect immediately. (Ord. 2323, ' 1, 07/06/2004)