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November 6, 2018 — California General Election
Local

City of Marina
Measure N Ordinance - Majority Approval Required

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Election Results

Passing

3,334 votes yes (51.32%)

3,162 votes no (48.68%)

To Increase and Extend the Transactions ("Sales") and Use Tax
— undefined

To sustain and improve city services such as fire, police, road repairs & maintenance, shall the ordinance increasing the rate of the City of Marina's existing transactions & use ("sales") tax from 1% to 1.5% estimated to generate approximately $4,890,000 annually as compared with $3,260,000 for the current tax and extending the expiration date for the tax to March 31, 2034 be adopted?

What is this proposal?

Measure Details — Official information about this measure

YES vote means

A “Yes” vote is a vote to enact an ordinance increasing the transactions and use tax rate to 1.5% and extending it until March 31, 2034.

NO vote means

A “No” vote is a vote to reject the ordinance, and therefore leave the tax rate at 1% with an expiration date of March 21, 2026.

Impartial analysis / Proposal

Monterey County Elections Dept.

At the November 2, 2010 election, the voters of the City of Marina approved a 1% transactions and use tax.  At the November 4, 2014 election the voters approved a measure that extended that tax until March 31, 2026. 

This type of tax is generally called a local “sales” tax.    Like the statewide sales and use tax, the transactions and use tax is imposed upon the sale of all tangible personal property sold at retail within the City, and on the storage, use or other consumption of tangible personal property purchased from any retailer within the City.  Motor vehicle sales are taxed based on the location at which the vehicle will be registered, not the location at which the sale occurs. The tax is administered by the State Board of Equalization and follows most of the rules that apply to the statewide sales tax.  

This measure would increase the rate of the City’s transactions and use tax from 1% to 1.5%.  It would also extend the tax until March 31, 2034.  Total revenues from the tax would increase from approximately $3.26 Million annually to approximately $4.89 Million annually. 

The current overall sales and use tax rate (including both state and local sales and use taxes and local transactions and use taxes) is 8.75%.  This would increase to 9.25% if the additional 0.5% local rate proposed by Measure P is approved.   

Revenue generated by the transactions and use tax has been, and will continue to be, deposited in the City’s general fund, which means that the money may be used by the City for any general governmental purpose.  Examples of such uses include fire, police, and road repair and maintenance.    

A “YES” vote is a vote to enact an ordinance increasing the transactions and use tax rate to 1.5% and extending it until March 31, 2034.  A “NO” vote is a vote to reject the ordinance, and therefore leave the tax rate at 1% with an expiration date of March 21, 2026. 

Measure N will be approved if it received a majority vote of those casting ballots on the measure.  Measure N was placed on the ballot by a petition signed by the requisite number of voters. 

/s/ ROBERT R. WELLINGTON 

CITY ATTORNEY 

Dated: August 16, 2018 

 

Published Arguments — Arguments for and against the ballot measure

Arguments FOR

This measure was placed on the ballot via the citizens’ initiative process whereby dozens of Marina residents collected signatures from their neighbors to bring you three much needed measures to provide Marina with the money that it needs to maintain and improve city services affecting our quality of life. In addition to this measure, this citizen group also qualified for the ballot a hotel tax paid by tourists and a cannabis tax. We encourage you to vote for all three measures. 

Marina residents deserve quality city services including: Safe well-maintained roads; Fully staffed fire and police force; Beautiful parks; and Recreation programs for youth, families, and seniors. With this sales tax revenue Marina will be better positioned to support removal of abandoned buildings and blight around the High School, protect our drinking water, improve access to our beaches, improve the safety of walking and biking, enhance our downtown to attract and retain business, and address regional challenges of affordable housing and traffic congestion. This revenue measure is essential to fund these important public services.

This sales tax is a temporary measure that will generate approximately $1.63 million per year. Approximately 60% of all revenue generated will come from people living outside Marina. Seaside and Salinas residents have already approved identical sales tax rates allowing them to provide improved community services. State law limits the rate of sales tax to 9.25%. If Marina does not claim this last 0.5% tax for us, another regional agency can come along in the future and claim it for their spending needs. Marina residents saw the need to capture this revenue for Marina’s services and acted to place this measure on the ballot. Your vote will ensure that Marina has funding necessary to make our city Safer and Better for our future. 

/s/ Jane Parker, County Supervisor

/s/ Bruce Delgado, Mayor

/s/ Wendy Root Askew, MPUSD Board of Education District 1 Trustee

/s/ Adam Urrutia, Marina Planning Commissioner

/s/ Cristina Medina Dirksen, Marina Resident 

 

— Monterey County Elections Dept.

Arguments AGAINST

You are being asked to increase your taxes even though your city has squandered millions of dollars in various activities as follows:

1. 2002 paid approximately 2 million dollars in development fees that were not owed.

2.  In 2008 reduced the sales price of property to the Dunes development by 5 million dollars. 

3. 2010 leased 21.5 acres of city land to a million dollar developer for $1.00 per year for 6 years.

4. 2013 voted to waive over $630,000 in impact fees even though Marina Community Partner (Dunes) agreement requires the Dunes to find the developer at no cost to the city.

5. 2013 made a gift of $275,000 to a billion dollar corporation.

6.  2016 increased the city manager’s wages from $15,000.00 per month, (annually $180,000) to $17,585.33, (annually $211,023.96). Plus $400.00 per month car allowance and accrual & credit for personal leave and administrative leave as if the city manager had been employed for 16 years. He was hired in 2013. City manager also receives 3% minimum increase in 2017, 2018 & 2019. 

7. As of 2017 Average salary, health and benefits for top 10 city employees: $201,622.00

8.  2018 agreed to retroactive salary increases for employment agreements.

9.  Made a gift of $5,000.00 to the City of Salinas. 

10.  For 8 years failed to demand that the county sell real property resulting in a loss of an estimated $250,000 to the city.

11. Failed to collect rent and damages in the amount of $54,933.35 on the restaurant at the airport. 

12. Presently owed over $354,000 by a present tenant for past due rent.

Vote NO on Measure N.  You should not have to bail out an inefficient, wasteful city government.

The undersigned proponents or authors of the primary argument against ballot measure N At the general election for the City of Marina to be held on November 6, 2018 hereby state that this argument is true and correct to the best of their knowledge and belief.

/s/ Frank O’Connell

/s/ Michael M. Owen

/s/ Chandler P. Roland

— Monterey County Elections Dept.

Replies to Arguments FOR

In 2010, the City of Marina's sales tax increased with a definite expiration date of 5 years. In 2014, the City of Marina sought and received an extension of the sales tax to 2026. Now, in 2018, the proponents of Measure N want another increase AND another extension –until 2036. But somehow they still claim this sales tax is a “temporary measure.”

The Marina City Government has done very little, if anything at all, to address the root cause of needing a sales tax increase in the first place: its own waste and inefficiency. So long as the City is wasteful and inefficient, the proponents’ argument that thisis a “temporary” sales tax measure is completely unbelievable.

The "pitch" for the increases and extensions has been the same in 2010, 2014 and now: that the additional revenue will improve city services and create a better quality of life. But the City has had 8 years of additional revenue from the tax: how has this revenue improved city services or given residents a better quality of life?

Seniors, people on fixed income, and those trying to “make ends meet" are hurt far more by another increase in thecost of the goods than more affluent City residents.

For the last several years the City of Marina has claimed that its budget is balanced. So why do they want to make it harder for you to balance YOUR budget?

Vote NO on Measure N

/s/ Michael M. Owen, Public Works Commissioner

/s/ Chandler P. Roland, Retired

/s/ Jack D. Stewart, Retired

/s/ David Burrett, Retired

/s/ Virgil M. Piper, Retired

— Monterey County Elections Dept.

Replies to Arguments AGAINST

Opponents of Measure N try to paint good decisions as bad ones. Don’t be fooled! 

A one-time investment of $275,000 in Marina’s new theater was a wise decision that pays $66,000/year in sales taxes to our City forever. This investment also helped bring the new restaurants such as Blaze Pizza. We likely wouldn’t have the Dunes restaurants if not for this investment. The restaurants generate hundreds of thousands of dollars per year in sales tax.

Opponents don’t tell you that the $1,000,000 incentive offered to Marina’s new Marriott Hotel cost the City nothing because the hotel didn’t open in time. Now our community will earn $550,000 or more per year for decades from Marriott Hotel taxes and it cost us nothing.

These wise investments have paid off and kept many city services from declining. 

Remember, Measure N was put on the ballot by the citizens, not the City Council, because we have decided that it’s time to invest our resources into making Marina safer and better. If we want better streets, parks, more activities for youth, and faster Fire Department response to our homes we need the revenue Measure N will bring. Failing to invest in our city now means that it will only cost more to get these things later.

It’s time to stand up for a safer and better Marina to help all of us and our families. Vote Yes on N!

/s/ Bruce Delgado, Mayor

/s/ Jane Parker, County Supervisor

/s/ Wendy Root Askew, MPUSD School Board Trustee

/s/ Cristina Medina Dirksen, Marina Resident

/s/ Adam Urrutia, Planning Commissioner

 

— Monterey County Elections Dept.

Read the proposed legislation

Proposed legislation

AN ORDINANCE OF THE PEOPLE OF THE CITY OF MARINA

INCREASE IN THE CITY’S TRANSACTION AND USE TAX RATE FROM ONE PERCENT (1%) TO ONE AND A HALF PERCENT (1.5%), AND SETTING THE TERMINATION DATE OF THE ONE AND A HALF (1.5%) TAX TO BE MARCH 31, 2034, AND TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION IN ORDER TO CONTINUE PRESERVING FUNDS FOR GENERAL CITY SERVICES

 

THE PEOPLE OF THE CITY OF MARINA DO HEREBY ORDAIN AS FOLLOWS:

Section 1. Amendment. Chapter 3.06 of the City of Marina’s Municipal Code is hereby amended to read as follows: 

3.06.010 Title.

This chapter shall be known as the city of Marina transaction and use tax ordinance. The city of Marina hereinafter shall be called “city.” This chapter shall be applicable in the incorporated territory of the city. (Ord. 2010-03 § 1 (part), 2010)

3.06.020 Operative date.

“Operative date” means the first day of the first calendar quarter commencing more than one hundred ten days after the adoption of the ordinance codified in this chapter by a majority of the voters of the city voting thereon at the election to be held on November 6, 2018.

3.06.030 Purpose.

This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

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 7285.9 of Part 1.7 of Division 2, which authorizes the city to adopt this tax chapter if a two-thirds majority of the city council voted to adopt the ordinance codified in this chapter placing the measure on the ballot and a majority of the qualified electors voting on the measure voted to approve the imposition of the tax at an election called for that purpose.

B.    To adopt a retail transactions and use tax chapter 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.

C.    To adopt a retail transactions and use tax chapter that imposes a tax and provides a measure therefor 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.

D.    To adopt a retail transactions and use tax chapter 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 chapter. (Ord. 2010-03 § 1 (part), 2010)

3.06.040 Contract with state.

Prior to the operative date, the city shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax chapter; provided, that if the city 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. 2010-03 § 1 (part), 2010)

3.06.050 Transactions tax rate.

For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of one and one half percent (1.5%) 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 chapter.

3.06.060 Place of sale.

For the purposes of this chapter, 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. 2010-03 § 1 (part), 2010)

3.06.070 Use tax rate.

An excise tax is hereby imposed on the storage, use or other consumption in the city of tangible personal property purchased from any retailer on and after the operative date of this chapter for storage, use or other consumption in said territory at the rate of one and one half percent (1.5%) 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.

3.06.080 Adoption of provisions of state law.

Except as otherwise provided in this chapter 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 chapter as though fully set forth herein. (Ord. 2010-03 § 1 (part), 2010)

3.06.090 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:

A.    Wherever the state of California is named or referred to as the taxing agency, the name of this city shall be substituted therefor. However, the substitution shall not be made when:

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;

2.    The result of that substitution would require action to be taken by or against this city 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 chapter.

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:

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

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.

4.    In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B.    The word “city” 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. 2010-03 § 1 (part), 2010)

3.06.100 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 chapter. (Ord. 2010-03 § 1 (part), 2010)

3.06.110 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.

B.    There are exempted from the computation of the amount of transactions tax the gross receipts from:

1.    Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the city 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.

2.    Sales of property to be used outside the city which is shipped to a point outside the city, 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 subsection, delivery to a point outside the city shall be satisfied:

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-City 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

b.    With respect to commercial vehicles, by registration to a place of business out-of-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

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 chapter.

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 chapter.

5.    For the purposes of subsections (B)(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.

C.    There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this city of tangible personal property:

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.

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.

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 chapter.

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 chapter.

5.    For the purposes of subsections (C)(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.

6.    Except as provided in subsection (C)(7) of this section, a retailer engaged in business in the city 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 city or participates within the city 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 city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer.

7.    “A retailer engaged in business in the city” 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 city.

D.    Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district 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. 2010-03 § 1 (part), 2010)

 

3.06.120 Amendments.

All amendments subsequent to the effective date of the ordinance codified in this chapter 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 chapter; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter. (Ord. 2010-03 § 1 (part), 2010)

3.06.130 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 city, or against any officer of the state or the city, to prevent or enjoin the collection under this chapter, 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. 2010-03 § 1 (part), 2010)

3.06.140 Use of tax proceeds.

All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into the city of Marina general fund, and may be used for unrestricted general revenue purposes as designated by the City Council. (Ord. 2010-03 § 1 (part), 2010)

3.06.150 Severability.

If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the remainder of the chapter and the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. 2010-03 § 1 (part), 2010)

3.06.160 Effective date.

This chapter relates to the levying and collecting of the city transactions and use taxes and, following its submission to the City Council by a petition of the voters filed with the City Clerk, and after being signed by not less than the number of voters specified in California Elections Code Section 9215, and its placement on the ballot, shall become effective immediately upon the approval of the tax imposed hereunder by a majority of the voters of the city voting thereon at the election to be held on November 6, 2018. The “operative date” of the tax imposed hereunder shall be as provided in Section 3.06.020. (Ord. 2010-03 § 1 (part), 2010)

3.06.170 Termination date.

The authority to levy the tax imposed by this chapter shall expire on March 31, 2034, fifteen years following the date it is first imposed unless the city council determines that the levy and collection of the tax is no longer necessary for the purposes for which the tax is imposed and suspends or terminates the imposition of the tax prior to that date. (Ord. 2014-04 § 1, 2014: Ord. 2010-03 § 1 (part), 2010)

Section 2.  Approval by the Voters. This Ordinance shall be submitted to the voters at an election to be held on November 6, 2018 and shall not be effective until so approved. If approved, the existing tax imposed by Chapter 3.06 of the City of Marina Municipal Code, as amended by the November 4, 2014 passage of Measure F, will continue until replaced by the tax proposed in the initiative on the operative date.

Section 3.  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.

Section 4.  Certification.  Upon approval by the voters, the Deputy City Clerk shall certify the passage of this Ordinance; and within fifteen days the Deputy City Clerk shall cause it to be posted in the three (3) public places designated by the City Council.   

 

              APPROVED BY THE FOLLOWING VOTE of the People of the City of Marina on November 6, 2018.

 

YES:   

 

NO:                     

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