BILL NUMBER: SB 566	CHAPTERED
	BILL TEXT

	CHAPTER  709
	FILED WITH SECRETARY OF STATE  OCTOBER 9, 2003
	APPROVED BY GOVERNOR  OCTOBER 8, 2003
	PASSED THE SENATE  SEPTEMBER 11, 2003
	PASSED THE ASSEMBLY  SEPTEMBER 11, 2003
	AMENDED IN ASSEMBLY  SEPTEMBER 9, 2003
	AMENDED IN ASSEMBLY  JUNE 16, 2003
	AMENDED IN SENATE  MAY 6, 2003

INTRODUCED BY   Senator Scott

                        FEBRUARY 20, 2003

   An act to amend Sections 7251.1, 7285, and 7285.5 of, to add
Chapter 2.3 (commencing with Section 7285.9) to Part 1.7 of Division
2 of, and to repeal Sections 7251.3 and 7251.4 of, the Revenue and
Taxation Code, relating to taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 566, Scott.  Transactions and use tax:  maximum allowable rate.

   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.
   Existing law provides that the combined rate of all transactions
and use taxes imposed in accordance with that law, in any county, may
not exceed 1.5%, except in the County of San Mateo and the City and
County of San Francisco.
   This bill would authorize any city to levy, increase, or extend a
transactions and use tax in accordance with the Transactions and Use
Tax Law. This bill would provide that the combined rate of
transactions and use taxes in any county may not exceed 2%.  This
bill would make conforming changes to related provisions.


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


  SECTION 1.  Section 7251.1 of the Revenue and Taxation Code is
amended to read:
   7251.1.  The combined rate of all taxes imposed in accordance with
this part in any county may not exceed 2 percent.  No tax shall be
considered  to be in accordance with this part if, upon its adoption,
the combined rate in the county will exceed 2 percent.
  SEC. 2.  Section 7251.3 of the Revenue and Taxation Code is
repealed.
  SEC. 3.  Section 7251.4 of the Revenue and Taxation Code is
repealed.
  SEC. 4.  Section 7285 of the Revenue and Taxation Code is amended
to read:
   7285.  The board of supervisors of any county may levy, increase,
or extend a transactions and use tax for general purposes at a rate
of 0.25 percent or a multiple thereof, if the ordinance proposing
that tax is approved by a two-thirds vote of all members of the board
of supervisors and the tax is approved by a majority vote of the
qualified voters of the county voting in an election on the issue.
The board of supervisors may levy, increase, or extend more than one
transaction and use tax under this section, if the adoption of each
tax is in the manner prescribed in this section.  The transactions
and use tax shall conform to Part 1.6 (commencing with Section 7251).

  SEC. 5.  Section 7285.5 of the Revenue and Taxation Code is amended
to read:
   7285.5.  As an alternative to the procedure set forth in Section
7285, the board of supervisors of any county may levy, increase, or
extend a transactions and use tax for specific purposes.  The tax may
be levied, increased, or extended at a rate of 0.25 percent, or a
multiple thereof, for the purpose for which it is established, if all
of the following requirements are met:
   (a) The ordinance proposing that tax is approved by a two-thirds
vote of all members of the board of supervisors and is subsequently
approved by a two-thirds vote of the qualified voters of the county
voting in an election on the issue.
   (b) The transactions and use tax conforms to the Transactions and
Use Tax Law Part 1.6 (commencing with Section 7251).
   (c) The ordinance includes an expenditure plan describing the
specific projects for which the revenues from the tax may be
expended.
  SEC. 6.  Chapter 2.3 (commencing with Section 7285.9) is added to
Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:

      CHAPTER 2.3.  CITIES TRANSACTIONS AND USE TAXES

   7285.9.  The governing body of any city may levy, increase, or
extend a transactions and use tax for general purposes at a rate of
0.25 percent or a multiple thereof, if the ordinance proposing that
tax is approved by a two-thirds vote of all members of that governing
body and the tax is approved by a majority vote of the qualified
voters of the city voting in an election on the issue.  The governing
body may levy, increase, or extend more than one transaction and use
tax under this section, if the adoption of each tax is in the manner
prescribed in this section.  The transactions and use tax shall
conform to Part 1.6 (commencing with Section 7251).
   7285.91.  As an alternative to the procedure set forth in Section
7285.9, the governing body of any city may levy, increase, or extend
a transactions and use tax for specific purposes.  The tax may be
levied, increased, or extended at a rate of 0.25 percent, or a
multiple thereof, for the purpose for which it is established, if all
of the following requirements are met:
   (a) The ordinance proposing that tax is approved by a two-thirds
vote of all members of the governing body and is subsequently
approved by a two-thirds vote of the qualified voters of the city
voting in an election on the issue.
   (b) The transactions and use tax conforms to the Transactions and
Use Tax Law Part 1.6 (commencing with Section 7251).
   (c) The ordinance includes an expenditure plan describing the
specific projects for which the revenues from the tax may be
expended.
   7285.92.  The authority of a city to impose transactions and use
taxes under this chapter is in addition to any authority to impose
these taxes contained in Chapters 2.6 (commencing with Section
7286.20) to 2.99 (commencing with Section 7286.80), inclusive, of
this part.  The authority of a city to impose transactions and use
taxes under any provision of law is subject to the rate limitation
specified in Section 7251.1.