BILL NUMBER: AB 7	CHAPTERED  09/03/02

	CHAPTER  330
	FILED WITH SECRETARY OF STATE  SEPTEMBER 3, 2002
	APPROVED BY GOVERNOR  AUGUST 31, 2002
	PASSED THE ASSEMBLY  AUGUST 21, 2002
	PASSED THE SENATE  AUGUST 19, 2002
	AMENDED IN SENATE  APRIL 2, 2002
	AMENDED IN ASSEMBLY  MAY 31, 2001
	AMENDED IN ASSEMBLY  APRIL 17, 2001
	AMENDED IN ASSEMBLY  MARCH 13, 2001

INTRODUCED BY   Assembly Member Thomson

                        DECEMBER 4, 2000

   An act to add Chapter 3.6 (commencing with Section 7290) to Part
1.7 of Division 2 of the Revenue and Taxation Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 7, Thomson.   Transactions and use tax:  City of Davis.
   Existing law authorizes various local governmental entities,
subject to certain limitations and approval requirements, to levy
transactions and use taxes in accordance with the procedures and
requirements set forth in the Transactions and Use Tax Law.
   This bill would additionally authorize the City of Davis, subject
to the approval of 2/3 or a majority of the voters voting on the
issue at an election, to levy a tax pursuant to the Transactions and
Use Tax Law at a rate of 0.25% or 0.5%.
   This bill would make legislative findings and declarations as to
the necessity of a special statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 3.6 (commencing with Section 7290) is added to
Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:

      CHAPTER 3.6.  DAVIS TRANSACTIONS AND USE TAX

   7290.  (a) Subject to subdivision (b), the City of Davis may levy
a transactions and use tax at a rate of 0.25 percent or 0.5 percent,
if an ordinance proposing that tax is approved by a two-thirds vote
of all of the members of the city council and the tax is approved by
either a two-thirds or a majority vote of qualified voters of the
city voting in an election on the issue, as determined by the
ordinance proposing the tax and establishing how the revenues derived
from the tax shall be expended.
   (b) Any transactions and use tax imposed pursuant to this section
shall be levied in accordance with Part 1.6 (commencing with Section
7251).
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the uniquely difficult fiscal pressures being experienced
by the City of Davis in providing essential services and funding for
city programs and operations.