TITLE
Recommendation to adopt resolution Expressing Intent to Prioritize Spending of Transactions and Use Tax (TUT) Revenue for Specific Purposes, relating to the Ballot Measure Placed on the March 3, 2020 ballot. (Citywide)
DISCUSSION
On July 16, 2019, the City Council approved a measure to be placed before Long Beach voters extending the City's current TUT, known as "Measure A," until ended by the voters and setting the TUT at the following rates: (i) from January 1, 2017 through December 31, 2022 - at 1% on the sale and/or use of all tangible personal property sold at retail in the City, (ii) from January 1, 2023 through September 30, 2027, at a rate of three-quarters percent(¾%), and after October 1, 2017, again at a rate of one percent (1%). The variation in rates is required to comply with Los Angeles County Measure H, adopted in 2017.
As with the original Measure A, the TUT extension would generate revenue for general City purposes. The City Council desires to prioritize spending of TUT revenues for public safety, public infrastructure, and public facilities, like parks and libraries, as it did with the original Measure A. The City also desires to identify an additional specific priority: Community Hospital, which served Long Beach area residents and was closed due to seismic and other reasons in 2018.
Pursuant to your request of July 16, 2019, this office has prepared and submits the above-described resolution for your consideration.
SUGGESTED ACTION
Approve recommendation.
BODY
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Respectfully Submitted,
AMY R. WEBBER
DEPUTY CITY ATTORNEY