Initiative Measure to be Submitted Directly to Voters
Petition for Submission to Voters of Proposed 0.75% Transactions & Use Tax for the City of Lemon Grove:
To the City Council of the City of Lemon Grove,
We, the undersigned, registered and qualified voters of the State of California, residents of the City of Lemon Grove, pursuant to the California Constitution and sections 9200 et seq. of the California Government Code, present to the City Council of the City of Lemon Grove this petition and request that the following proposed 0.75% Transactions & Use Tax for the City of Lemon Grove be submitted to the registered and qualified voters of the City for their adoption or rejection at a special election to be determined by the City Council.
The proposed 0.75% Transactions & Use Tax reads as follows: THE CITY ATTORNEY HAS PREPARED THE FOLLOWING TITLE AND SUMMARY OF THE CHIEF PURPOSE AND POINTS OF THE PROPOSED MEASURE.
Title: Proposed three-quarter (3/4) cent transactions and use tax (Sales Tax) for the City of Lemon Grove
If adopted, this measure would enact an ordinance amending the Lemon Grove Municipal Code by adding Chapter 3.18. entitled "Lemon Grove Three Quarter Cent Transactions and Use Tax Ordinance."
The ordinance would authorize the imposition and enforcement of a three -quarter (3/4) of one cent transactions and use tax in the City of Lemon Grove, commonly called a "sales tax." The sales tax would be imposed on all retailers and all locations where goods are sold, in Lemon Grove, subject to certain exceptions, as well as an excise tax upon the storage, use or consumption of goods purchased from any retailer for storage, use or other consumption in the City. The sales price of such goods shall include delivery charges, regardless of the location to which delivery is to be made. The proposed ordinance incorporates exemptions as required by law.
It is estimated that the tax would generate $2,958,000 in new revenue for the City's General Fund, which can be spent for all allowable purposes, including, but not limited to, public safety, recreation services, and homeless services. The sales tax is not a special tax. Th e revenues generated cannot be used to subsidize non-general fund programs.
Implementation of the tax, and the use of its revenues, would be subject to the following conditions. The City must:
- Hire an independent auditing firm to analyze the impact of the sales tax and furnish a report to the City Council and the public;
- Direct the City's independent auditors to review the collection and expenditure of sales tax revenues and report to the City Council as part of the annual budget adoption process;
- Appoint a citizen's oversight board to review implementation of the sales tax.
The ordinance would require the citizen's oversight board to review and approve a five-year plan identifying critical general fund needs. Further, each year, beginning in fiscal year 2021-2022 the City must prepare and present to said board a spending plan for the sales tax revenues. The board’s review and recommendation shall precede the City Council’s adoption of each annual budget.
If approved, the tax will be administered by the California Department of Tax and Fee Administration, pursuant to City Council direction and state law.
Under the California Constitution and the California Revenue and Taxation Code, a simple majority of the voters must approve a general sales tax measure for it to be adopted.