TO: Honorable Mayor and Members of the City Council
FROM: Paul Young, Finance Director
SUBJECT:
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A Resolution of the City of Red Bluff Authorizing the City Manager to Execute Agreements with the State Board of Equalization (BOE) for Implementation of a Local Transactions and Use Tax
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RECOMMENDED COUNCIL ACTION:
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Approve Resolution No.16-2026 authorizing the City Manager to execute the agreements with the BOE for implementation of a local transactions and use tax.
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SUMMARY:
As a result of the passage of Measure S on the June 02, 2026, Ballot, the BOE has sent several agreements that the City needs to approve. This is because the BOE is the only entity allowed to collect and distribute sales tax
PREVIOUS COUNCIL ACTION:
During its meeting on January 20, 2026, the City Council approved Resolution 01-2026, calling for placing the Street Safety, Maintenance, and Road Tax Citizen Initiative on the June 2, 2026, election.
On June 2, 2026, the electorate voted to approve the implementation of a local transactions and use tax.
DISCUSSION:
The City of Red Bluff certified signatures on a citizen initiative to add a special transaction and use tax (known as "sales tax") of one percent (1.0%) to be used to repair and improve streets and roads in the City. On January 20, 2026, the City Council directed staff to submit the sales tax initiative to be placed on the June 2, 2026, ballot.
On June 02, 2026, the electorate of the City of Red Bluff passed Measure S approving a new one percent (1.0%) local sales or transactions and use tax (TUT), which increases the TUT, or sales tax, rate from 7.5% to 8.5%. The CDTFA administers and collects the tax for the City and requires administration agreements with local jurisdictions to enact the tax. The agreements are included as Exhibit A and Exhibit B of the proposed resolution authorizing agreements with the CDTFA.
CITY FISCAL IMPACT:
The City of Red Bluff will receive a new revenue source ...
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