HomeMy WebLinkAbout1998-02-03; City Council; 14542; NCTD Use Tax Refund RequestCITY OF CAKLSBAD -AGENDA BILL /w
AB# 14, +f1- TITLE: DEPT. HD.
MTG. a-3- 9 g CITY OF CARLSBAD SUPPORTING NCTD USE TAX
REFUND REQUEST
DEPT. Council
RECOMMENDED ACTION:
If you concur, your action is to adopt Resolution No. 78 *A6
Tax Refund Request.
supporting NCTD’s Use
ITEM EXPLANATION:
Council Member Nygaard, Carlsbad’s representative on the North County Transit District
Board, is urging the Council to support NCTD’s request before the State Board of
Equalization to be heard on February 10, 1998. NCTD paid more than $2 million in taxes to
purchase passenger cars and engines for the Coaster which expenditure ordinarily would
have been exempt and reimbursable. In 1995 however, the Surface Transportation Board
(previously known as the Interstate Commerce Commission) ruled that the NCTD was
subject to federal ICC jurisdiction despite the fact that NCTD would not be directly providing
interstate rail service. The Board stated in its ruling that the “District was subject to their
jurisdiction because it would have substantial control over the railway lines”.
The NCTD acted in good faith when it expended the $2 million believing it would be
reimbursed as was the MetroLink in Los Angeles. The NCTD believes the people of San
Diego County want to spend their tax money on transit since they voted to approve the
special sales tax for transit, and not to send more money back to state coffers. San Diego
County has a critical need for transit funding.
The Board of Equalization, at its hearing on February IO, 1998 in San Diego, will hear
NCTD’s request for this refund. Carlsbad’s adoption of this resolution will send a message to
it supporting the refund.
FISCAL IMPACT:
No new expenditures.
EXHIBITS:
Resolution No. 9f? -J&i
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RESOLUTION NO. 98-26 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, SUPPORTING NCTD USE TAX
REFUND REQUEST
The City of Carlsbad hereby notes the following facts with regard to the
State Board of Equalization denial of a $2.2 million tax exemption for rail equipment
purchased by the North County Transit District (NCTD):
1. The North County Transit District rail operations fall under the
jurisdiction of the federal Surface Transportation Board (STB) of the Department of
Transportation;
2. Operations which fall under STB jurisdiction are exempt from paying
use taxes that discriminate against railroads for the purchase of rolling stock such as
freight cars and engines;
3. The State Board of Equalization has denied this exemption even
though it granted a $12 million exemption to the Los Angeles Metrolink system, which
operates in the same fashion and purchases its equipment from the same
manufactures;
4. The City concurs that various transit agencies should be treated in an
equitable manner, with no discrimination in Board of Equalization decisions;
5. Further, the refusal to grant an exemption amounts to a double tax for
San Diego residents, since the original revenue to pay for equipment was generated by
tax dollars approved in a vote of the public;
6. NCTD’s limited and precious resources should be maximized to satisfy
critical transit needs locally, not added to the State’s general funds.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. The City of Carlsbad joins other members of NCTD in calling for
approval by the State Board of Equalization of NCTD’s use tax refund and an
immediate refund to the District of the funds in question.
3. That a copy of this Resolution be transmitted to the State Board of
Equalization.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad held on the 3rd day of
February , 1998 by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin, and Hall
NOES: None
ABSENT: None
ALETHA L. RAUT
(SEAL)