Can PG charge a tax on a sale made in Monterey?

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The April 27th Carmel Pine Cone reports that the city of Pacific Grove wants to charge a $1.00 tax on every admission ticket sold at the Monterey Bay Aquarium.

The city's reasoning is that it needs the revenue (as all cities do these days), and that the aquarium has a presence in the city that affects PG's infrastructure and tidal zone. All well and good so far.

However, only 20 percent of the aquarium building is actually in Pacific Grove, the rest is in Monterey. It is worth noting that actual ticket sales occur on the Monterey side of the building, not in Pacific Grove. So my question is can a city impose a tax on a financial transaction that occurs in another city? Just wondering.

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Addendum: The PG city council rejected the proposed tax at its May 2 council meeting. 
 
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