HomeMy WebLinkAboutRES 2026-28RESOLUTION NO. 2026-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND
BAR, CALIFORNIA, PROPOSING AND SUBMITTING TO THE VOTERS
AT THE GENERAL MUNICIPAL ELECTION TO BE CONSOLIDATED
WITH THE STATEWIDE ELECTION TO BE HELD ON NOVEMBER 3,
2026, AS CALLED BY RESOLUTION NO, 2026-19, A PROPOSAL TO
ADOPT AN INITIATIVE ORDINANCE ESTABLISHING A ONE PERCENT
TRANSACTIONS AND USE TAX; DIRECTING THE CITY ATTORNEY TO
PREPARE AN IMPARTIAL ANALYSIS; AND AUTHORIZING AND
SETTING DEADLINES FOR THE FILING OF ARGUMENTS FOR AND
AGAINST THE BALLOT MEASURE.
WHEREAS, the City of Diamond Bar is committed to preserving the high quality of
life that residents value, including maintaining public safety, neighborhood services,
parks, recreation programs, and well -maintained public infrastructure; and
WHEREAS, the City of Diamond Bar has historically maintained prudent financial
management practices, balanced budgets, and strong fiscal accountability while
providing high -quality municipal services to residents and businesses; and
WHEREAS, despite these efforts, the City is facing increasing financial pressures
as the cost of providing municipal services, including public safety, labor, insurance,
utilities, maintenance, and contracted services, continues to rise faster than revenues;
and
WHEREAS, the City's Fiscal Year 2026-27 budget reflects an ongoing structural
budget deficit estimated at approximately $1 million, and financial projections indicate that
annual deficits are expected to grow to approximately $5 million by 2030 and $12 million
by 2035; and
WHEREAS, the City Council has taken fiscally responsible steps to address
budget challenges, including approximately $1.6 million in service reductions for Fiscal
Year 2026-27, implementing cost -containment measures, reducing operational and
contract expenses, deferring capital projects, eliminating or reduced programs and
events, and utilizing one-time funds to balance the budget; and
WHEREAS, while these actions have helped address short-term budget
challenges, they do not provide a sustainable long-term solution to the City's ongoing
structural deficit; and
WHEREAS, the City's General Fund reserves are approximately $29.9 million and
projections indicate reserves will be drawn down over time and may be depleted within
seven to eight years; and
Resolution No. 2026-28
WHEREAS, continued structural deficits may also require the City to defer needed
maintenance and capital improvements totaling more than $100 million, resulting in higher
costs in the future and impacting the City's ability to maintain streets, parks, public
facilities, and other community assets; and
WHEREAS, the State of California and County of Los Angeles allocation of the
transactions and use tax (sales tax) generated within Diamond Bar limit the City's ability
to fund local needs: (i) the City retains only a portion of sales tax generated locally,
meaning the current total sales tax rate in the City is 9.75%, and only 1 % of the total rate
is under local control; and (ii) The City receives one of the smallest shares of property tax
revenue in Los Angeles County, just 5%, ranking 87t" out of 88 cities; and
WHEREAS, the City Council has undertaken a comprehensive review of potential
revenue options and determined that a locally controlled transactions and use tax would
provide a stable and reliable source of ongoing revenue to help maintain essential City
services; and
WHEREAS, revenues generated by avoter-approved transactions and use tax
measure would be available to support essential City services and community priorities,
including maintaining neighborhood public safety services to keep Diamond Bar
neighborhoods safe, preventing property crimes and burglaries, keeping public areas
clean and safe, repairing and maintaining streets and infrastructure, preserving parks and
recreation programs, maintaining emergency preparedness efforts and minimizing the
risk of wildfire, and protecting Diamond Bar's quality of life; and
WHEREAS, a transactions and use tax does not apply to common necessities
such as groceries, prescription medicines, rent, utilities, medical and dental services, or
personal services; and
WHEREAS, visitors and non-residents who shop, dine, and conduct business in
Diamond Bar would also contribute towards maintaining City services through a locally
approved transactions and use tax measure; and
WHEREAS, the City Council finds that stable, locally controlled revenue is
necessary to preserve Diamond Bar's quality of life, maintain essential services, and
protect the community's long-term financial stability; and
WHEREAS, state law limits the total combined rate of local transactions and use
taxes that may be imposed within Los Angeles County, and the City Council finds that
preserving Diamond Bar's remaining local revenue capacity is important to maintaining
the City's long-term financial flexibility and local control; and
WHEREAS, in such an event, Diamond Bar residents could still pay a higher sales
tax rate, but the additional revenues generated would not necessarily remain in Diamond
Bar or be available to address local community priorities; and
2
Resolution No. 2026-28
WHEREAS, the City Council finds that preserving local control is important
because locally generated revenues are subject to oversight by Diamond Bar voters and
can be used to address the City's unique service needs and community priorities; and
WHEREAS, revenues generated by the proposed transactions and use tax
measure will be deposited into the City's General Fund, subject to annual independent
financial audits, public disclosure requirements, and other applicable fiscal accountability
measures required by law; and
WHEREAS, the City Council is committed to ensuring that all revenues generated
by the proposed measure are managed in a transparent and fiscally responsible manner
consistent with the City's longstanding tradition of sound financial stewardship; and
WHEREAS, pursuant to Resolution No. 2026-19, the City Council called a General
Municipal Election to be held in the City of Diamond Bar, California on November 3, 2026,
for the election of three (3) Members of the City Council for full four (4) year terms; and
WHEREAS, pursuant to Resolution No. 2026-20, adopted on June 16, 2026, the
City Council requested that the General Municipal Election for election of Members of the
City Council be consolidated with the Statewide General Election to be held on Tuesday,
November 3, 2026; and
WHEREAS, the City Council desires to submit to the voters at the same General
Municipal Election a question relating to the Transaction and Use Tax.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DIAMOND BAR,
DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Pursuant to the laws of the State of California relating to General Law
Cities, the City Council of the City of Diamond Bar hereby calls and orders to be held in
the City of Diamond Bar, California, on Tuesday, November 3, 2026, a General Municipal
Election for the purpose of submitting to the registered voters of the City of Diamond Bar
the following ballot measure for their adoption or rejection:
Measure :Diamond Bar Local Control, City Services Measure.
To maintain local funding for emergency
response/Sheriff protection; keep Diamond Bar's . Yes
neighborhoods/public areas safe/clean; prevent
property crimes/burglaries; minimize the risk of wildfires;
prepare for/respond to wildfires/other natural disasters;
maintain roads/prevent potholes; for other general city No
services; shall a measure be adopted establishing a 10
sales tax, providing approximately $6,000,000 annual)
3
Resolution No. 202&28
until ended by voters, requiring audits/spending
disclosure, all funds benefiting Diamond Bar residents?
Section 2. That the vote requirement for the Measure to be adopted is
of the votes cast and if adopted the Measure shall go into effect at the time set forth in
the Measure.
Section 3. That the complete text of the proposed Ordinance for the ballot
measure submitted to the City's voters is set forth in full in Exhibit A, attached and
incorporated by this reference.
Section 4. That the ballots to be used at the election shall be in form and content
as required by law.
Section 5. That the City Clerk is authorized, instructed and directed to
coordinate with the County of Los Angeles Registrar-Recorder/County Clerk to procure
and furnish any and all official ballots, notices printed matter and all supplies, equipment
and paraphernalia that may be necessary in order to properly and lawfully conduct the
election.
Section 6. That the polls for the election shall be open at seven o'clock a.m. of
the day of the election and shall remain open continuously from that time until eight o'clock
p.m. of the same day when the polls shall be closed, pursuant to Election Code §10242,
except as provided §14401 of the Elections Code of the State of California.
Section 7. That in all particulars not recited in this resolution, the election shall
be held and conducted as provided by law for holding municipal elections.
Section 8. That notice of the time and place of holding the election is given and
the City Clerk is authorized, instructed and directed to give further or additional notice for
the election, in time, form and manner as required by law.
Section 9. The City Council hereby authorizes, instructs, and directs the City
Attorney to prepare an impartial analysis of the ballot measure, in accordance with the
provisions of the Elections Code § 9280, showing the effect of the measure on existing
law and the operation of the measure. The impartial analysis, not exceeding 500 words
in length, shall be filed with the City Clerk on or before August 14, 2026.
Section 10. Pursuant to Elections Code § 9282, the City Council, or any member
or members of the City Council, or any individual voter who is eligible to vote on the
measure, or bona fide association of citizens, or any combination of voters and
associations, may file a written argument for or against the measure. Pursuant to
Elections Code § 9283, any argument filed by the City Council, or any member or
members of the City Council, shall be accompanied by the printed name(s) and
signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the
Resolution No. 202&28
name of the organization and the printed name and signature of at least one of its principal
officers who is the author of the argument. The argument may not be signed by more than
five persons, otherwise the signatures of the first five shall be printed on the sample ballot.
Any direct argument shall be accompanied by a signed Form of Statement and in
accordance with guidelines for filing of arguments which are available in the Office of the
City Clerk. Direct arguments shall be filed with the City Clerk on or before August 14,
2026, and shall be subject to a 10 calendar -day public examination period in accordance
with the provisions of Elections Code section 9295.
Section 11. Pursuant to Elections Code sections 9282 and 9285, when the City
Clerk has selected the arguments for and against the measure which will be printed and
distributed to the voters, the City Clerk shall send a copy of the argument in favor of the
measure to the authors of the argument against, and a copy of the argument against the
measure to the authors of the argument in favor. The author or a majority of the authors
of an argument may prepare and submit a rebuttal argument or may authorize in writing
any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal
argument shall be filed with the City Clerk with the printed name(s) and signature(s) of
the author(s) submitting it, or if submitted on behalf of an organization, the name of the
organization, and the printed name and signature of at least one of its principal officers.
A rebuttal argument may not be signed by more than five persons and shall be printed in
the same manner as a direct argument and shall immediately follow the direct argument
which it seeks to rebut. Rebuttal arguments for or against the measure, not exceeding
250 words in length, shall be filed with the City Clerk on or before August 24, 2026. Any
rebuttal argument shall be accompanied by a signed Form of Statement and in
accordance with guidelines for the filing of arguments which are available in the Office of
the City Clerk. Rebuttal arguments shall be subject to a 10-calendar-day public
examination period in accordance with the provisions of Elections Code section 9295.
Section 12. If more than one argument for or more than one argument against the
ballot measure is submitted, the City Clerk shall select one of the arguments in favor and
one of the arguments against the measure for printing and distribution to the voters. In
selecting the argument, the City Clerk shall give preference and priority to the submitted
arguments in accordance with the provisions of Elections Code section 9287.
Section 13. That pursuant to the requirements of § 10403 of the Elections Code,
the Board of Supervisors of the County of Los Angeles is hereby requested to consent
and agree to the consolidation of the General Municipal Election with the Statewide
General Election on Tuesday, November 3, 2026, as requested by and subject to
Diamond Bar City Council Resolution No. 2026-20.
Section 14. That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original resolutions.
Section 15. The City Council authorizes the City Clerk to administer said election
and all reasonable and actual election expenses shall be paid by the city upon
presentation of a properly submitted bill.
Resolution No. 2026-28
PASSED, APPROVED AND ADOPTED this 21s, day of July, 2026.
CITY OF DIAMOND BAR
Steve Tye,
ATTEST:
I, Kristina Santana, City Clerk for the City of Diamond Bar, hereby certify that the foregoing
resolution, was duly passed, approved and adopted by the City Council of the City of
Diamond Bar at a regular meeting held on the 21st day of July, 2026, by the following
vote:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS
Chou,
Teng
None
None
Liu, MPT/Low, M/Tye
Kristina Santana, City Clerk
ORDINANCE NO. (2026)
AN INITIATIVE ORDINANCE OF THE PEOPLE OF THE CITY OF
DIAMOND BAR, CALIFORNIA, ADDING CHAPTER 3.14 TO TITLE 3 OF
THE DIAMOND BAR CITY CODE TO ESTABLISH A LOCAL ONE
PERCENT GENERAL TRANSACTIONS AND USE TAX.
WHEREAS, the City of Diamond Bar is committed to preserving the high quality of
life that residents value, including maintaining public safety, neighborhood services,
parks, recreation programs, and well -maintained public infrastructure; and
WHEREAS, the City of Diamond Bar has historically maintained prudent financial
management practices, balanced budgets, and strong fiscal accountability while
providing high -quality municipal services to residents and businesses; and
WHEREAS, despite these efforts, the City is facing increasing financial pressures
as the cost of providing municipal services, including public safety, labor, insurance,
utilities, maintenance, and contracted services, continues to rise faster than revenues;
and
WHEREAS, the City's Fiscal Year 2026-27 budget reflects an ongoing structural
budget deficit estimated at approximately $1 million, and financial projections indicate that
annual deficits are expected to grow to approximately $5 million by 2030 and $12 million
by 2035; and
WHEREAS, the City Council has taken fiscally responsible steps to address
budget challenges, including approximately $1.6 million in service reductions for Fiscal
Year 2026-27, implementing cost -containment measures, reducing operational and
contract expenses, deferring capital projects, eliminating or reduced programs and
events, and utilizing one-time funds to balance the budget; and
WHEREAS, while these actions have helped address short-term budget
challenges, they do not provide a sustainable long-term solution to the City's ongoing
structural deficit; and
WHEREAS, the City's General Fund reserves are approximately $29.9 million and
projections indicate reserves will be drawn down over time and may be depleted within
seven to eight years; and
WHEREAS, continued structural deficits may also require the City to defer needed
maintenance and capital improvements totaling more than $100 million, resulting in higher
costs in the future and impacting the City's ability to maintain streets, parks, public
facilities, and other community assets; and
WHEREAS, the State of California and County of Los Angeles allocation of the
transactions and use tax (sales tax) generated within Diamond Bar limit the City's ability
Ordinance No. _ (2026)
to fund local needs: (i) the City retains only a portion of sales tax generated locally,
meaning the current total sales tax rate in the City is 9.75%, and only 1 % of the total rate
is under local control; and (ii) The City receives one of the smallest shares of property tax
revenue in Los Angeles County, just 5%, ranking 87t" out of 88 cities; and
WHEREAS, the City Council has undertaken a comprehensive review of potential
revenue options and determined that a locally controlled transactions and use tax would
provide a stable and reliable source of ongoing revenue to help maintain essential City
services; and
WHEREAS, revenues generated by avoter-approved transactions and use tax
measure would be available to support essential City services and community priorities,
including maintaining neighborhood public safety services to keep Diamond Bar
neighborhoods safe, preventing property crimes and burglaries, keeping public areas
clean and safe, repairing and maintaining streets and infrastructure, preserving parks and
recreation programs, maintaining emergency preparedness efforts and minimizing the
risk of wildfire, and protecting Diamond Bar's quality of life; and
WHEREAS, a transactions and use tax does not apply to common necessities
such as groceries, prescription medicines, rent, utilities, medical and dental services, or
personal services; and
WHEREAS, visitors and non-residents who shop, dine, and conduct business in
Diamond Bar would also contribute towards maintaining City services through a locally
approved transactions and use tax measure; and
WHEREAS, the City Council finds that stable, locally controlled revenue is
necessary to preserve Diamond Bar's quality of life, maintain essential services, and
protect the community's long-term financial stability; and
WHEREAS, state law limits the total combined rate of local transactions and use
taxes that may be imposed within Los Angeles County, and the City Council finds that
preserving Diamond Bar's remaining local revenue capacity is important to maintaining
the City's long-term financial flexibility and local control; and
WHEREAS, in such an event, Diamond Bar residents could still pay a higher sales
tax rate, but the additional revenues generated would not necessarily remain in Diamond
Bar or be available to address local community priorities; and
WHEREAS, the City Council finds that preserving local control is important
because locally generated revenues are subject to oversight by Diamond Bar voters and
can be used to address the City's unique service needs and community priorities; and
WHEREAS, revenues generated by the proposed transactions and use tax
measure will be deposited into the City's General Fund, subject to annual independent
Ordinance No. _ (2026)
financial audits, public disclosure requirements, and other applicable fiscal accountability
measures required by law; and
WHEREAS, the City Council is committed to ensuring that all revenues generated
by the proposed measure are managed in a transparent and fiscally responsible manner
consistent with the City's longstanding tradition of sound financial stewardship; and
WHEREAS, a measure to increase the transactions and use tax was put before
the voters at a general municipal election held on November 3, 2026; and
WHEREAS, the measure received the requisite votes for adoption.
NOW, THEREFORE, the people of the City of Diamond Bar do ordain as follows:
SECTION I: Chapter 3.14 entitled "Local Transactions and Use Tax", is hereby
added to the Diamond Bar Municipal Code to provide as follows:
"Chapter 3.14
TRANSACTIONS AND USE TAX
Sec. 3.14.010. —Short title.
This chapter shall be known as the Local Transactions and Use Tax.
Sec. 3.14.020 —Purpose.
The City Council hereby declares that this chapter is adopted to achieve the
following, among other purposes, and directs that the provisions of this chapter 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 Cal. Revenue
and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, which
authorizes the City to adopt this chapter which shall be operative if a majority
of the electors voting on the measure vote to approve the imposition of the tax
at an election called for that purpose.
(b) To adopt a retail transactions and use tax
provisions identical to those of the Sales and
ordinance that incorporates
(c) To adopt a retail transactions and use tax ordinance that imposes a tax and
provides a measure therefore that can be administered and collected by the
Ordinance No. _ (2026)
California Department of Tax and Fee Administration 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
California Department of Tax and Fee Administration in administering
and collecting the California State Sales and Use Taxes.
(d) To adopt a retail transactions and use tax ordinance 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 Cal. 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.
Sec. 3.14.030 —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
percent (1 %) 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
the ordinance enacting this chapter.
Sec. 3.14.040 —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 the ordinance enacting this chapter for storage, use or other
consumption in said territory at the rate of one percent (1 %) 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.
Sec. 3.14.050 —Contract with State.
Prior to the operative date, the City shall contract with the California Department
of Tax and Fee Administration to perform all functions incident to the administration
and operation of the transactions and use tax ordinance enacting this chapter;
provided, that if the City shall not have contracted with the California Department
of Tax and Fee Administration 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.
Sec. 3.14.060 —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
Ordinance No. _ (2026)
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 California
Department of Tax and Fee Administration.
Sec. 3.14.070 —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 Cal. Revenue and
Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of
Division 2 of the Cal. Revenue and Taxation Code are hereby adopted and made
a part of this chapter as though fully set forth in this section.
Sec. 3.14.080 —Limitations on adoption of State law.
In adopting the provisions of Part 1 of Division 2 of the Cal. 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. The substitution, however, 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, State
victim compensation and government claims board, or the State Constitution;
(2) When 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 Department of Tax and Fee Administration, 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, where the result of the substitution
would be to:
(i) 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 Cal. Revenue and Taxation Code, or;
(ii) 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.
Ordinance No. _ (2026)
(4) In Sections 6701, 6702 (except in the last sentence thereof), of 116715,
67371 6797 or 6828 of the Cal. Revenue and Taxation Code.
(b) The word "City" shall UOUubstituted for the word "State" in the phrase
"retailer engaged in business in this State" in § 6203 of the Cal. Revenue and
Taxation Code and in the definition of that phrase in Section 6203.
Sec. 3.14.090 —Permit not required.
If a seller's permit has been issued to a retailer under Section 6067 of the Cal.
Revenue and Taxation Code, an additional seller's permit shall not be required by
this chapter.
Sec. 3.14.100 —Exclusions and exemptions.
(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 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
county 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 section,
delivery to a point outside the City shall be satisfied:
(i) With respect to vehicles (other than commercial vehicles) subject
to registration pursuant to Chapter 1 (commencing with § 4000) of
Division 3 of the Cal. Vehicle Code, aircraft licensed in compliance
with § 21411 of the Public Utilities Code, and undocumented vessels
registered under Division 3.5 (commencing with § 9840) of the Cal.
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
Ordinance No. _ (2026)
(ii) 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 the ordinance enacting 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 the
ordinance enacting this chapter.
(5) For the purposes of paragraphs (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 ordinance, 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 Cal. Revenue and Taxation Code.
(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 the
ordinance enacting 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 the ordinance enacting this chapter.
(5) For the purposes of paragraphs (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
Ordinance No. _ (2026)
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 paragraph (c)(7), 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 § 4000) of Division 3 of the Cal. Vehicle Code, aircraft
licensed in compliance with § 21411 of the Cal. Public Utilities Code, or
undocumented vessels registered under Division 3.5 (commencing with §
9840) of the Cal. 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 Cal. 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.
Sec. 3.14.110 —Amendments.
All amendments subsequent to the effective date of this chapter to Part 1 of
Division 2 %J the Cal. 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 Cal.
Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of
Division 2 of the Cal. 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.
Sec. 3.14.120 —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 Cal. Revenue and Taxation Code, of any
tax or any amount of tax required to be collected.
Ordinance No. _ (2026)
Sec. 3.14.130 — Severability.
If the provision of this Chapter or any application thereof to any person or
circumstance is held invalid, such invalid provision or application thereof shall not
affect the other provisions and applications set forth this chapter.
Sec. 3.14.130 —Annual Audit.
By no later than October 1 of each calendar year, the City shall cause an
independent auditor to complete a "Diamond Bar Transactions and Use Tax
Report." Such report shall review whether the tax revenues collected pursuant to
this chapter in the immediately preceding fiscal year have been collected,
managed and expended in accordance with the requirements of this chapter.
Sec. 3.14.140 —Operative date.
This chapter shall be operative the first day of the first calendar quarter
commencing more than 110 days after the effective date of the ordinance enacting
this chapter, the effective date being as set forth below.
SECTION II: The Mayor and City Clerk are hereby authorized to attest to the
adoption of this Ordinance by signing where indicated below. This Ordinance shall take
effect ten (10) days following certification of the vote by the City Council.
PASSED, APPROVED AND ADOPTED by the People of the City of Diamond Bar
voting on November 3, 2026.
ATTEST:
Steve Tye, Mayor
Kristina Santana
City Clerk
Approved as to Form:
Omar Sandoval
City Attorney