Amended in Senate June 17, 2015

Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 464

Introduced by Assembly Members Mullin and Gordon

(Coauthors: Assembly Members Frazier and McCarty)

(Coauthors: Senators Allen and Hill)

February 23, 2015

An act to amend Section 7251.1 begin delete of end delete begin insert of, and to add Section 7251.5 to, end insert the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 464, as amended, Mullin. Transactions and use taxes: maximum combined rate.

Existing law authorizes cities and counties, and, if specifically authorized, other local governmental entities, subject to certain limitations and approval requirements, to levy a transactions and use tax for general purposes, in accordance with the procedures and requirements set forth in the Transactions and Use Tax Law, including a requirement that the combined rate of all taxes imposed in accordance with that law in the county not exceed 2%.

This bill would increase that maximum combined rate to 3%.

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

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.  

begin insert (a) end insert begin insert   end insert The combined rate of all taxes imposed in
accordance with this part in any county shall not exceed begin delete 3 end delete begin insert 2 end insert
percent. A tax shall not be considered to be in accordance with
this part if, upon its adoption, the combined rate in the county will
exceed begin delete 3 end delete begin insert 2 end insert percent.

begin insert

(b) This section applies only to taxes and rates authorized to
be imposed in accordance with this part in any county before
January 1, 2016. On and after January 1, 2016, the combined rate
in the county shall not exceed the combined rate established in
Section 7251.5.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 7251.5 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 7251.5. end insert   

On and after January 1, 2016, the combined rate of
all taxes imposed in accordance with this part in any county shall
not exceed 3 percent. A tax shall not be considered to be in
accordance with this part if, upon its adoption, the combined rate
in the county will exceed 3 percent.

end insert