Options for raising revenues through community input and under community control are diminishing.

Transcription

1 May 7, 2015

2 Options for raising revenues through community input and under community control are diminishing. Utility Users Tax Parcel Tax Transient Occupancy Tax Transactions Tax

3 Only on purchase or lease of tangible personal property. Real property and services excluded. Charged only when sold to end user. Significant exemptions..(over $11.5 billion annually).

4 Where the Bradley-Burns Sales and Use Tax is generally allocated to a jurisdiction where the sale is negotiated or the order is taken, the Transactions Tax is allocated to the district where the goods are delivered or placed into use. Locally enacted transactions and use taxes may be levied as general (majority voter approval) or specific (2/3 voter approval).

5 Pros: Existing billing system (Board of Equalization) Visitors Contribute Relatively easy to monitor and plan Cons: Elastic goes up and down with economy Subject to legislative tampering (special interest exemptions)

6 Vehicles, vessels or aircraft registered to Placentia. Merchandise shipped to Placentia from outside of the City. Merchandise picked up or consumed at a Placentia location (walk-in retail).

7 Albany Galt Oxnard Santa Maria Antioch Grass Valley Pacific Grove Santa Monica Arcata Greenfield Palm Springs Santa Rosa Arroyo Grande Grover Beach Paso Robles Scotts Valley Arvin Gustine Pico Rivera Seaside Atwater Half Moon Bay Pinole Sebastopol Avalon Healdsburg Pismo Beach Selma Calexico Hercules Pittsburg Sonoma Campbell Hollister Placerville Sonora Capitola Huron Point Arena Soledad Carmel Inglewood Porterville South El Monte Cathedral City La Habra Port Hueneme South Gate Ceres La Mesa Reedley South Lake Tahoe Clearlake La Mirada Richmond Stanton Commerce Lakeport Ridgecrest Stockton Concord Larkspur Rio Vista Tracy Corte Madera Lathrop Rohnert Park Trinidad Cotati Los Banos Sacramento Truckee Culver City Mammoth Lakes Salinas Tulare Davis Manteca San Anselmo Ukiah Del Rey Oaks Marina San Bernardino Union City Delano Merced San Fernando Vacaville Dinuba Montclair San Juan Bautista Vallejo El Cajon Moraga San Leandro Visalia El Cerrito Morro Bay San Luis Obispo Vista El Monte Mount Shasta San Mateo Watsonville Eureka National City San Pablo West Sacramento Fairfield Nevada City San Rafael Wheatland Fairfax Novato Sand City Williams Farmersville Oakdale Sanger Willits Fort Bragg Orinda Santa Cruz Woodland

8 Simple Majority Election Measures Passed Of those passed 1/2 or higher June November November June November Total Avg. % of Passed 87% 78%

9 1% 8%

10 No objective measurable impacts identified. Possible explanations: Added at end of purchase Relatively small ($1.00 per $ for 1% increase)

11 Scenario Description Jane makes a taxable purchase at CVS Pharmacy John makes a purchase at Craftsman Wood Fired Pizza Jane makes a taxable online purchase at Amazon.com John (a Placentia resident) buys a car in a nearby City. Total Transaction Amount Amount City Currently Receives Additional Amount City Would Receive Total City Amount Received $10.00 $0.10 $0.10 $0.20 $15.00 $0.15 $0.15 $0.30 $35.00 $ $0.35 $0.35 $30,000 $0 $ $300.00

12 Placentia s projected 1% Transactions Tax and Use Tax for: November, 2015 Special Election: $325,000 (FY 15-16) $5,530,000 (FY 16-17) June, 2016 Primary Election: $2,760,000 (FY 16-17) $5,700,000 (FY 17-18)

13 California State Board of Equalization Publication No (Forms and Publications) Andy Nickerson