SBX1 6 Senate Bill, 1st Ext. Session

BILL NUMBER: SBX1 6	AMENDED
	BILL TEXT

	AMENDED IN SENATE  DECEMBER 18, 2008

INTRODUCED BY   Senator Ducheny

                        DECEMBER 8, 2008

    An act relating to the Budget Act of 2008.  
An act to amend Section 29530 of the Government Code, and to add
Section 7203.25 to the Revenue and Taxation Code, relating to local
government finance. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 6, as amended, Ducheny.  Budget Act of 2008. 
 County sales and use taxes: rate increase.  
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2008.  
   The Bradley-Burns Uniform Local Sales and Use Tax Law
(Bradley-Burns Law) authorizes a county and a city and county to
impose a local sales and use tax, and similarly authorizes a city,
located within a county imposing such a tax rate, to impose a local
sales tax rate that is credited against the county rate. Existing law
requires a city, county, or city and county imposing a local sales
and use tax pursuant to the Bradley-Burns Law to contract with the
State Board of Equalization to administer the local sales and use
tax. Existing law authorizes a county or city and county to contract
with the State Board of Equalization to establish a local
transportation fund in the county treasury for the deposit of 1/4 of
1% of the revenues collected for the county or city and county under
the Bradley-Burns Law for specified transportation purposes. 

   This bill would authorize a county or city and county to impose an
additional 1/4 of 1% sales and use tax rate under the Bradley-Burns
Law. This bill would require a county or city and county that imposes
this additional rate to deposit all revenues derived therefrom, less
specified administrative costs, into a local transportation fund, as
specified. This bill would also require a county or a city and
county that imposes this additional tax to comply with the applicable
voter-approval requirements of a specified provision of the
California Constitution. 
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on
December 1, 2008.
   This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 1, 2008,
pursuant to the California Constitution. 
   This bill would become operative only if Assembly Bill 2 of the
2009-10 First Extraordinary Session of the Legislature is chaptered

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 29530 of the  
Government Code   is amended to read: 
   29530.  (a) If the board of supervisors so agrees by contract with
the State Board of Equalization, the board of supervisors shall
establish a local transportation fund in the county treasury and
shall deposit in the fund all revenues transmitted to the county by
the State Board of Equalization under Section 7204 of the Revenue and
Taxation Code, which are derived from that portion of the taxes
imposed by the county at a rate in excess of 1 percent, and on and
after July 1, 2004, until the rate modifications in subdivision (a)
of Section 7203.1 of the Revenue and Taxation Code cease to apply, at
a rate in excess of three-quarters of 1 percent, pursuant to Part
1.5 (commencing with Section 7200) of Division 2 of that code, less
an allocation of the cost of the services of the State Board of
Equalization in administering the sales and use tax ordinance related
to the rate in excess of 1 percent, and on and after July 1, 2004,
until the rate modifications in subdivision (a) of Section 7203.1 of
the Revenue and Taxation Code cease to apply, to the rate in excess
of three-quarters of 1 percent, and of the Director of Transportation
and the Controller in administering the responsibilities assigned to
him or her in Chapter 4 (commencing with Section 99200) of Part 11
of Division 10 of the Public Utilities Code.
    (b)     (1)    The board
of supervisors of a county or city and county that imposes a tax
pursuant to Section 7203.25 of the Revenue and Taxation Code shall
contract with the State Board of Equalization to establish a local
transportation fund in the county or city and county treasury, and
shall deposit in   the fund all revenues transmitted to the
county or city and county by the State Board of Equalization under
Section 7204 of the Revenue and Taxation Code that are derived from
that portion of the taxes imposed by the county or city and county
under Section 7203.25 of the Revenue and Taxation Code, less an
allocation of the cost of the services of the State Board of
Equalization in administering the sales and use tax ordinance related
to that rate and the Director of Transportation and the Controller
in administering the responsibilities assigned to him or her in
Chapter 4 (commencing with Section 99200) of Part 11 of Division 10
of the Public Utilities Code.  
   (2) The board of supervisors of a county or city and county that
has established a local transportation fund under subdivision (a) is
deemed to have established the local transportation fund described in
paragraph (1). The board of supervisors shall deposit into that fund
all revenues described in paragraph (1).  
   (b) 
    (c)    Any interest or other income earned by
investment or otherwise of the local transportation fund shall accrue
to and be a part of the fund.
   SEC. 2.    Section 7203.25 is added to the  
Revenue and Taxation Code   , to read:  
   7203.25.  (a) Notwithstanding any other provision of law, on and
after the effective date of this section, a county and a city and
county may, for the purposes specified in subdivision (b) of Section
29530 of the Government Code, impose a sales and use tax rate of
one-quarter of 1 percent, in addition to the rates authorized by
Sections 7202 and 7203, for the privilege of selling tangible
personal property at retail in the county or city and county, and
upon the storage, use or other consumption in the county or city and
county of tangible personal property purchased from any retailer for
storage, use or other consumption in the county or city and county.
   (b) A county and city and county that imposes a tax pursuant to
subdivision (a) shall comply with both of the following:
   (1) All other applicable provisions of this part.
   (2) The applicable voter-approval requirements of Section 2 of
Article XIII C of the California Constitution when the county or city
and county imposes, extends, or increases the tax authorized by this
section. 
   SEC. 3.    This act addresses the fiscal emergency
declared by the Governor by proclamation on December 1, 2008,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution. 
   SEC. 4.    This act shall become operative only if
Assembly Bill 2 of the 2009-10 First Extraordinary Session of the
Legislature is chaptered.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2008.
 
  SEC. 2.    This act addresses the fiscal emergency
declared by the Governor by proclamation on December 1, 2008,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.