BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 1112
Author: Ammiano (D)
Amended: 9/11/13 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SUBJECT : Transportation transactions and use taxes: Bay Area
SOURCE : Author
DIGEST : This bill deletes the 1% limitation on the combined
local sales tax rate under the Bay Area County Traffic and
Transportation Funding Act.
ANALYSIS : Existing law, under the Public Utilities Code,
creates the Bay Area County Traffic and Transportation Funding
Act (Act) which authorizes the formation of county
transportation authorities in each of the 9 Bay Area counties,
and provides for the imposition of a retail transaction and use
tax of either 1/2 of 1% or 1%, subject to voter approval, with
revenues to be used for various transportation purposes. The
Act, however, caps the total rate of tax that may be imposed in
a county under these provisions and under the Transactions and
Use Tax Law to 1%.
Existing law, under the Revenue and Taxation Code Section
7251.1, caps the combined local sales tax rate for other local
entities at 2%.
CONTINUED
AB 1112
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2
This bill would delete the 1% combined local sales tax rate
under the Act.
Comments
The San Francisco County Transportation Authority (SFCTA) is
based on the statutory process found in Division 12.5 of the
Public Utilities Code (County Traffic and Transportation Funding
in the Nine-County San Francisco Bay Area, commencing with PUC
131000) for the authorization to seek successful voter approval
of its local sales tax program, known as "Prop K".
The Authority is presently working in concert with the City and
County to develop potential funding options for consideration in
the coming year, and in undertaking the research to support this
effort have found this cap to be too limiting.
Other local county agencies operating a local, voter approved
sales tax are subject to a total local sales tax "cap" of 2%.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 9/12/13)
City of San Francisco
County of San Francisco
San Francisco County Transportation Authority
ARGUMENTS IN SUPPORT : According to the author, San
Francisco's unique geography and population have led to some of
the most intensive transportation needs in California. At the
same time, an archaic piece of code limits the SFCTA's ability
to use sales tax revenue. While Revenue and Taxation Code
allows an overall local sales tax cap of 2%, an older 1986 code
limits the SFCTA under a cap that is only 1% - half the revenue
potential. That restriction doesn't apply to other authorities.
AB 1112 would simply remove one subsection of the outdated
code, so that SFCTA would have the same cap as other
transportation authorities. This does not raise any taxes, but
merely allows the authority to ask voters for approval of new
tax programs.
AB 1112
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3
JA:ej 9/12/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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