BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 1665 Hearing Date: June 14,
2016
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|Author: |Bonilla |
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|Version: |5/9/2016 |
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|Urgency: |Yes |Fiscal: |No |
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|Consultant|Manny Leon |
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SUBJECT: Transactions and use taxes: County of Alameda, County
of Contra Costa, and Contra Costa Transportation Authority
DIGEST: This bill removes the existing authority granted to
Alameda County and Contra Costa County to impose an additional
transactions and use tax (TUT), subject to voter approval, and
instead grants Contra Costa County's existing authority to the
Contra Costa Transportation Authority (CCTA).
ANALYSIS:
Existing law:
1)Authorizes cities and counties to impose a local sales and use
tax.
2)Authorizes cities and counties to impose transactions and use
taxes.
3)Prohibits, in any county, the combined rate of all taxes
imposed in accordance with Transactions and Use Tax Law from
exceeding 2%.
4)Authorizes Alameda County and Contra Costa County to adopt an
ordinance imposing a TUT not to exceed 0.5% for the support of
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countywide transportation programs at a rate that would, in
combination with all other transaction and use taxes, exceed
the 2% limit established in existing law, if all the following
conditions are met:
a) The local government entity adopts an ordinance
proposing the transactions and use tax by any applicable
voting requirements
b) The ordinance proposing the transactions and use tax is
submitted to the electorate and is approved by two-thirds
of the voters voting on the ordinance
c) The transactions and use tax conforms to the Transaction
and Use Tax Law
5)Provides that the authority for Alameda County and Contra
Costa County to adopt an ordinance to impose a TUT that
exceeds the combined statutory rate of 2% shall only remain in
effect until December 31, 2020.
This bill:
1)Removes the existing authority granted to Alameda County and
Contra Costa County, and instead authorizes the CCTA to adopt
an ordinance to impose a TUT, subject to voter approval, that
exceeds the combined statutory rate of 2% until December 31,
2020.
2)Provides, notwithstanding any other law, any ordinance
previously adopted under the authority in existing law for
Alameda and Contra Costa Counties to adopt an additional TUT,
subject to voter approval, and in effect on January 1, 2016,
may continue in effect.
3)Contains an urgency clause and states it is necessary that
this bill take effect immediately in order to ensure the
residents of Contra Costa County have adequate transportation
AB 1665 (Bonilla) Page 3 of ?
services.
4)Finds and declares that a special law is necessary because of
the unique fiscal pressures experienced in Alameda County and
CCTA in providing essential transportation programs.
COMMENTS:
1)Purpose. The author asserts, "in light of the severe state
funding shortfall for transportation, it is imperative that
local governments, agencies and their constituents have the
ability to generate additional funding to plan and bring forth
critical transportation projects. AB 1665 will streamline this
process, making local governments more efficient so voters can
weigh in on the transportation issues of the county. Simply
put, this bill will allow CCTA to continue the great work they
have been known to accomplish, while meeting the precise needs
of Contra Costa County and its residents."
2)Agency streamlining. This bill proposes to shift the
authorization to impose TUT from Contra Costa County to CCTA,
similar to authorization granted to transportation authorities
on behalf of other counties. The CCTA was formed by voters in
1988 to lead Contra Costa County's transportation efforts and
manage funds generated by Measure C, a 0.50% TUT approved by
voters that same year for transportation purposes. The CCTA
also manages funds generated by Measure J, approved by Contra
Costa County voters in November 2004, to extend the TUT for
another 30 years.
Presently, CCTA is moving forward with proposing a
transportation tax measure to county voters, but cannot do so
directly under current law - instead; Contra Costa County must
first adopt an ordinance to present a tax to voters and then
work with the State Board of Equalization to delegate
administrative responsibilities from the county to CCTA. This
bill transfers the authority to seek TUT voter approval to the
local jurisdiction that would ultimately administer the tax
proceeds if approved by two-thirds of voters: CCTA. Since plans
to ask Contra Costa County voters for a new tax are already
under way, the author has included an urgency measure in the
bill to ensure state law is enacted in time to allow CCTA to
AB 1665 (Bonilla) Page 4 of ?
propose its TUT measure to its voters.
3) Existing authority. While this bill streamlines TUT taxing
authority for Contra Costa County, this bill also includes a
provision to guarantee existing taxing authority in Alameda
County (i.e., Measure BB, enacted in 2014) is not jeopardized
with this streamlining process.
4) Double-referral. This bill has been double referred to this
committee and the Senate Governance and Finance committee.
Related Legislation:
AB 210 (Wieckowski, Chapter 194, Statutes of 2013) - extended
the authority of Alameda County and authorized Contra Costa
County, until December 31, 2020, to impose a TUT in excess of
the 2% countywide cap if approved by voters.
Assembly Votes:
Floor: 77-0
Rev. & Tax: 6-0
L. Gov.: 6-3
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local:
No
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 8, 2016.)
SUPPORT:
Bay Area Council
Contra Costa County Board of Supervisors
Contra Costa Transportation Authority
California-Nevada Conference of Operating Engineers
San Francisco Bay Area Rapid Transit District
OPPOSITION:
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None recieved
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