RESOLUTION NO. _____________
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BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA
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RESOLUTION IN SUPPORT OF SENATE BILL 27 (HANCOCK),
LOCAL AGENCIES: SALES AND USE TAX: REALLOCATION
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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that
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WHEREAS, existing law prohibits a redevelopment agency or local agency from providing any form of financial assistance to a vehicle dealer or big box retailer, or business entity that sells or leases land to a vehicle dealer or big box retailer that is relocating from the territorial jurisdiction of another community or local agency; and
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WHEREAS, Bradley-Burns sales taxes must be allocated on a “situs” basis, this is the place where the transaction occurs; and
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WHEREAS, if a seller has more than one place of business and the sales and delivery of a product occur at separate locations, State Board of Equalization regulations require that the sales be allocated to the site of the principal sales negotiations; and
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WHEREAS, Senate Bill 27 (Hancock) would prohibit a local agency from entering into any form of agreement with a retailer, a consultant or agent representing a retailer, or any other person that would involve the payment, transfer, diversion, or rebate of any amount of Bradley-Burns local tax proceeds for any purpose if the agreement results in a reduction in the amount of revenue that is received by another local agency from a retailer that is located within the territorial jurisdiction of that other local agency, and the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency; and
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WHEREAS, Senate Bill 27 would prohibit a community from providing any form of financial assistance to a vehicle dealer of big-box retailer from a neighboring community within the same county; and
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WHEREAS, no current statute prevents using sales tax revenues to pay incentives or rebates to relocation consultants by local agencies across county lines; and
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WHEREAS, the losing cities are still left with the burden of providing vital police, fire, and other public services to the distribution facilities of the retailer remaining in the jurisdiction.
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NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that the Board of Supervisors by the adoption of this resolution hereby supports Senate Bill 27 (Hancock) regarding local agencies, sales and use tax, reallocation.
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