BILL NUMBER: AB 902	CHAPTERED  09/03/02

	CHAPTER  331
	FILED WITH SECRETARY OF STATE  SEPTEMBER 3, 2002
	APPROVED BY GOVERNOR  AUGUST 31, 2002
	PASSED THE ASSEMBLY  AUGUST 19, 2002
	PASSED THE SENATE  AUGUST 14, 2002
	AMENDED IN SENATE  AUGUST 5, 2002
	AMENDED IN SENATE  JUNE 26, 2002
	AMENDED IN SENATE  JUNE 17, 2002
	AMENDED IN SENATE  JUNE 10, 2002
	AMENDED IN ASSEMBLY  APRIL 16, 2001

INTRODUCED BY   Assembly Member Strom-Martin

                        FEBRUARY 23, 2001

   An act to add Chapter 2.64 (commencing with Section 7286.24) to
Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 902, Strom-Martin.  Transactions and use tax:  qualified
cities.
   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 a qualified city, with the
approval of 2/3 of voters voting on the issue at an election, to levy
a transactions and use tax at a rate of 0.25%, or a multiple thereof
not to exceed 1%, for the purpose of maintenance, repair,
replacement, construction, or reconstruction of the road system in
that qualified city.
   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 2.64 (commencing with Section 7286.24) is added
to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:


      CHAPTER 2.64.  QUALIFIED CITY TRANSACTIONS AND USE TAXES

   7286.24.  (a) (1) In addition to any tax levied pursuant to Part
1.5 (commencing with Section 7200) and any other tax authorized by
this part, and subject to paragraph (2), a qualified city may levy a
transactions and use tax at a rate of 0.25 percent, or a multiple
thereof not to exceed 1 percent, if both of the following conditions
are met:
   (A) An ordinance proposing the transactions and use tax is
approved by a majority vote of all the members of the city council.
   (B) The proposing ordinance is approved by a two-thirds majority
of qualified voters of the city in an election on the issue.
   (2) (A) Any transactions and use tax levied under this section
shall be levied pursuant to the Transactions and Use Tax Law (Part
1.6 (commencing with Section 7251)).
   (B) The net revenues derived from a tax levied under this section
shall be exclusively expended for the maintenance, repair,
replacement, construction, or reconstruction of the qualified city's
road system.
   (b) For purposes of this section "qualified city" means the City
of Clearlake, the City of Fort Bragg, the City of Point Arena, the
City of Ukiah, and the City of Willits.
  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 cities specified in Section 1 of this act in providing
maintenance, repair, replacement, construction, and reconstruction
services for the cities' road systems.