Loading...
HomeMy WebLinkAboutCC RESO 10,340RESOLUTION N0. 10,340 A RESOLUTION OPPOSING ANY ATTEMPT. TO ALTER THE METHOD LEVYING, COLLECTING AND DISTRIBU- TING THE: UNIFORM SALES. AND USE TAX UNDER THE BRADLEY-BURNS: UNIFORM LOCAL SALES. AND USE TAX LAW.. WHEREAS, for decadescities: had had the staiti.atory authority to levy and collect a local sales and use tax without limit asto the rate of .such tax and without any restriction as to the purposes br which the proceeds thereof may be ex- pended; and WHEREAS, the levy and collection of various rates of sales and, use taxes by cities undervarying procedures had im- posed a great hardship on retail merchants by requiring the completing and filing of numerous sales and use tax forms, the collection of sales and use taxes atvarious rates, and the remittance of the sales and use taxes thus collected to numerous jurisdictions; and WHEREAS, historically thecounties of the State of California had no statuatory authority to levy or collect a sales or use tax; and WHEREAS, after much time and effort the Bradley -Burns Uniform Local Sales and Use Tax Law was evolved which,, though permissive asto each respective county, has resulted in the levying throughout the State of a. uniform one -cent sales and use tax under the Bradley -Burns Uniform Local Sales and Use Tax Law, by agreement between the governing bodies of the cities and the boards of .supervisors of each respective county, thereby elimi- nating theduplicity of Local and sales use taxes, the multiplicity of .forms, returns and remittances, and simplifying and expediting in a more efficient manner the collection of such local sales and use tax by the State of California along with the State sales and use tax; and WHEREAS, many cities were incorporated upon .the premise that a large portion of their municipal revenue would be derived from their local sales and use tax; and WHEREAS, many cities,. new and old alike, have made moral and legal commitments for the expenditure of local sales and use tax revenuesupon the premise that their right and authority to levy collect and expend the same would not be abrogated or impaired; and WHEREAS, sales and use taxes Levied, collected and distributed under the authority of the Bradley -Burns Uniform Local Sales and Use Tax Law is a purely local tax levied by the respective local agencies of government; and WHEREAS, such local agencies of government as receive substantial amounts. of .local sales and use tax revenues do so not by accident, but do so by reason of long range planning in making adequate provision for the businesses that generate -such revenues, and have in many instances irretrievably spent large sums of money to .attract .such businesses and to create a favorable business Atmosphere toentice business and customers alike to do business within their confines; and WHEREAS, many local agencies of government have, by deliberatedesign and long range planning, either absolutely prohibited the advent of any revenue producing business or have so severely restricted the -same as to discourage and practically prohibit any new businessventures and to hamper and discourage .even the 'continuation of pre-existing ones; and WHEREAS, the cities which have substantial sales and use tax revenues bear the brunt of the less desirable results of having such businesses, including the sizeable addedcosts of police and fire protection, and extensive increases in vehic- ular traffic,both passenger and truck, resulting in increased costsof street maintenance; and WHEREAS, the right to levy adequate taxes is a funda- mental principle Of Home Rule and essential to the exercise thereof; ,and WHEREAS, there is no more reason to distribute the proceeds of local sales and use taxes to other. than the taxing agency than there is to distribute the proceedsof other taxes to agencies other than those levying such .other taxes; and WHEREAS, the ultimate adoption of the Bradley -Burns Uniform Local Sales and Use Tax Law .and the adoption of uniform local sales and use taxes pursuant thereto has not only eliminated chaos,' -multiplicity of taxes, forms, returns and effort, but has resulted in benefit to every city and county and has not necessarily resulted in injustice or inequity to any; and WHEREAS,thedemands of some local agencies of govern- ment,including such local government that are so short sighted as to advocate tampering with the Bradley -Burns Uniform Local Sales. and Use Tax Law, to share in the tax revenues of other agencies of government are not only selfish but socialistic, but sow the seeds of dissension among agencies of local govern- ment generally; and WHEREAS, the League of California Cities sponsored and unequivocally supported the Bradley -Burns Uniform Local Sales and. Use Tax Law; and WHEREAS, the League of California Cities initially supported Senate Bill No. 556 in the 1967 Regular Session; and WHEREAS, the support of the League of California Cities of the measure providing for the cigarette sales tax levied by the State to bedistributed other than on the ratio of distribution of local sales and use taxes levied and collected pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law was predicated largely upon the fact that .such a tax was purely a state tax rather than a local levy, .and upon the fact that the method distributing the proceeds of the state levied cigarette sales tax specified in the measure as inithlly adopted by the State Legislature differed from the method of distribution as contained in the measure in its initial form and the League of California Cities had endorsed the original bill in its initial form and not as subsequently amended; and WHEREAS, representatives of the League of California Cities gave repeated assurance that its support of legislation to provide for distribution of the state levied cigarette sales tax other than on the ratio of distribution of locally levied and state collected sales and use taxes would not beused as a precedent to advocate any change in the distribution of -sales and use taxes Levied under the Bradley -Burns: Uniform Local Sales and Use Tax Law; and WHEREAS, no local agency of government has any right whatsoever -- moral, legal or otherwise-- to the proceeds of any kind of tax levied by another agency of local government; and WHEREAS, there is neither legal nor social injustice by the levy,collection and retention ofa local sales and use tax, irrespective of any disproportionate amounts that may be produced in various jurisdictions by such a local tax; and WHEREAS, cities that complain of lack of adequate sales and use tax revenues should remedy the situation within their own confines by making provision for seeking and encour- aging the advent of revenue producing businesses rather than selfishly trying to discourage or prohibit such businesses within their own confines by seeking to dip into the revenues of other cities who bear the brunt and impact of revenue producing businesses and WHEREAS, those cities which assert the per capita revenues are too low should seek to obtain authority to levy taxes on a per capita basis that will offset their short sighted deficiencies rather than seek share of local revenues of other agencies of government; and WHEREAS, the repeal of the Bradley -Burns Uniform Local Sales and Use Tax Law will, unless such repeal measure entirely preempts the unto charter over general field of local sales and use tax legislation, give cities a grossly unfair and insurmountable advantage law cities for the reason that charter cities derive their power of taxing directly from the State Constitution rather than through the State Legislature as do general law cities; and WHEREAS, such unfair advantage on the part of charter cities was clearly reflected in the revised formula for the dis- tribution of state levied cigarette taxes which provided that in no event should charter cities receive less under the revised formula than they would have received under their own cigarette sales tax; and WHEREAS, in Los Angeles County alone local sales and use taxes produce as much as 85o.to the total local revenue of some cities; and WHEREAS, the levy and collection of a local sales and use tax by one agency of government takes nothing away from any other agency of government to which it is in any way entitled; NOW, THEREFORE, BE IT RESOLVED. by the City Council of the City of National City, California as follows: SECTION 1. That any and all efforts to alter the law providing for the levy, collection and distribution of the local sales and use taxes be vigorously opposed by all cities as a direct and outright violation of the very principle of Home Rule, and for the further reason that such attempts will nece- ssarily result in gross inequity and financial hardship to many cities rather than in equity to the claimants. SECTION 2. That cities band together in opposing any inroads in the field of Home Rule and in mandating the League of California Cities to oppose at every level any attempt to modify the provisions of the Bradley -Burns Uniform Local Sales and Use Tax Law in any manner that will affect the distribution to point of origin of any taxes collected thereunder. SECTION 3. That each city be urged to obtain unquali- fied commitments of support of the existing Bradley -Burns Uniform Local Sales and Use Tax Law from each of their elected represen- tatives in the State Assembly and Ser e. PASSED AND ADOPTED this lath day of May, 1971. ATTEST:.