BILL ANALYSIS �
AB 1112
Page 1
( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 1112 (Ammiano)
As Amended September 11, 2013
Majority vote
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|ASSEMBLY: | |(May 16, 2013) |SENATE: |24-11|(September 12, |
| | | | | |2013) |
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(vote not relevant)
Original Committee Reference: HUM. S.
SUMMARY : Removes a statutory cap of 1% that applies to the
combined rate of any transactions and use tax approved pursuant
to the Bay Area County Traffic and Transportation Funding Act
and the Transactions and Use Tax Law.
The Senate amendments delete the Assembly version of this bill,
and instead, remove a statutory cap of 1% that applies to the
combined rate of any transactions and use tax (TUT) approved
pursuant to the Bay Area County Traffic and Transportation
Funding Act (Act) and the TUT Law.
EXISTING LAW :
1)Authorizes cities and counties to impose local sales and use
taxes.
2)Authorizes cities and counties to impose TUTs.
3)Prohibits, in any county, the combined rate of all taxes
imposed in accordance with the TUT Law from exceeding 2%.
4)Creates the Metropolitan Transportation Commission
(Commission) to provide comprehensive regional transportation
planning for the region comprised of the City and County of
San Francisco and the Counties of Alameda, Contra Costa,
Marin, Napa, San Mateo, Santa Clara, Solano, and Sonoma.
5)Establishes the Act, which allows voters in any county in the
nine-county San Francisco Bay area (specified above) to create
a county transportation authority or to authorize the
AB 1112
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Commission to implement a TUT for the purpose of funding a
local transportation expenditure plan showing a need for the
proceeds from that tax.
6)Allows, pursuant to the Act, a county transportation authority
or the Commission to impose a TUT ordinance for a tax of
either 0.5% or 1% applicable in the incorporated and
unincorporated territory of a county in the manner prescribed
in the Act and in the TUT Law, as specified, if two-thirds of
the electors voting on the measure vote to approve its
imposition at an election called for this purpose by the board
of supervisors within one year after the adoption of a county
transportation expenditure plan.
7)Provides that the rate of tax imposed pursuant to 6) above,
together with the rate of tax imposed pursuant to the TUT Law
by any entity, as authorized by any other provision of law,
shall not exceed 1% in any county.
AS PASSED BY THE ASSEMBLY , this bill required rates and fees for
supported employment services for people with
developmental disabilities to be consistent with rates and fees
set by the Department of Rehabilitation.
FISCAL EFFECT : None
COMMENTS : This bill deletes language in the Act that limits to
1% the allowable combined rates of TUTs imposed pursuant to the
Act and the TUT law, which will allow the City and County of San
Francisco to utilize a maximum 2% allowed under the TUT law for
all counties statewide.
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 San Francisco County Transportation Authority's
ability to use sales tax revenue. While Revenue and Taxation
code allows an overall local sales tax cap of 2 percent, an
older 1986 code limits the SFCTA under a cap that is only 1
percent - 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."
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The TUT Law authorizes local governments to levy TUTs as
"add-ons" to the combined state and local sales tax rate. The
Legislature has approved specific authorizations for certain
cities, counties, special districts, and countywide authorities
to levy TUTs for general and special purposes. Of those
approved for special purposes, many TUTs are dedicated for
transportation purposes.
The Act authorizes any of the nine counties within the San
Francisco Bay Area to place before the voters a TUT in amounts
of 0.5% or 1%, the proceeds of which are to be used to fund a
local transportation expenditure plan for the county and any
partnering counties.
The San Francisco County Transportation Authority (Authority)
was created pursuant to the Act's enabling statutes, which were
enacted in 1986. Although the TUT law was enacted earlier, in
1969, portions of the TUT Law were amended in 2003 via SB 566
(Scott), Chapter 709, Statutes of 2003, which allowed cities and
counties to place TUT ordinances before local voters without
first obtaining legislative approval and increased the TUT rate
to a maximum of 2% in any given county.
According to the Authority, related TUT statutes were updated in
2003 to reflect the increased 2% TUT cap allowed under SB 566.
However, the 1986 Act was apparently overlooked, and still
contains a county-wide TUT cap of 1%.
The Authority notes that it currently relies on a 0.5% TUT for
its operations that, when combined with a .25% TUT for the San
Francisco Community College District, reaches a total of .75%
for the City and County of San Francisco. According to the
author, "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." Because the Act allows the Authority to ask voters
for a TUT specifically in increments of 0.5% or 1%, even the
smaller rate would put the City and County over the Act's
statutory limit of 1%.
The Authority reports that this 1% limitation came to light only
this summer, and that it is seeking this legislative remedy now
in preparation for a possible TUT proposal to the voters in
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2014.
Related legislation. AB 210 (Wieckowski), Chapter 194, Statutes
of 2013, extends from January 1, 2014, to December 31, 2020,
current authority for Alameda County to adopt an ordinance
imposing a TUT not to exceed 0.5% for the support of countywide
transportation programs at a rate that would, in combination
with all other TUTs, exceed the 2% limit established in existing
law, under specified conditions, and allows Contra Costa County
to adopt an ordinance imposing a TUT in the same manner as
Alameda County.
Prior legislation. SB 566 (Scott), Chapter 709, Statutes of
2003, allows cities and counties to place TUT ordinances before
local voters without first obtaining legislative approval, and
increases the TUT rate to a maximum of 2%.
SB 144 (Local Government Committee), Chapter 343, Statutes of
2007, updates the voter approval requirement for 13 local TUT
authorizations, in conformity with Propositions 13 and 218.
Support arguments: Supporters note that this bill will even the
playing field for the City and County of San Francisco relative
to the total allowable TUT, in keeping with the TUT law and
other counties statewide.
Opposition arguments: None on file.
This bill was substantially amended in the Senate and the
Assembly-approved provisions of this bill were deleted. The
subject matter of this bill, as amended in the Senate, has not
been heard in any Assembly policy committee this legislative
session.
Analysis Prepared by : Angela Mapp / L. GOV. / (916) 319-3958
FN: 0002854