BILL NUMBER: AB 978	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member V. Manuel Perez

                        FEBRUARY 26, 2009

   An act to add Section 7286.61 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 978, as introduced, V. Manuel Perez. Transactions and use
taxes: counties: economic development.
    Existing law authorizes various local governmental entities, in
accordance with certain requirements and limitations, to adopt
ordinances to levy transactions and use taxes pursuant to the
Transactions and Use Tax Law and to contract with the State Board of
Equalization to perform all functions incident to the administrative
and operation of the ordinance.
   This bill would additionally authorize the board of supervisors of
a county to impose a transactions and use tax at a rate of 0.125% by
the adoption of an ordinance, as specified, if certain conditions
are met. Revenues from the tax could be used only for funding
economic development within the county, including the construction
and acquisition of facilities within the county, as provided.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 7286.61 is added to the Revenue and Taxation
Code, to read:
   7286.61.  (a) In addition to the tax levied pursuant to Part 1.5
(commencing with Section 7200), and any other tax authorized by this
part, the board of supervisors of a county may impose a transactions
and use tax for the purposes described in paragraph (4), by the
adoption of an ordinance in accordance with this part if each of the
following conditions are met:
   (1) The ordinance imposing the tax is submitted to and approved by
the voters of the county by a two-thirds vote of those voters voting
on the ordinance in accordance with Article 3.7 (commencing with
Section 53720) of Chapter 4 of Part 1 of Division 2 of Title 5 of the
Government Code.
   (2) The ordinance includes an expenditure plan describing the
specific purposes for which the revenues from the tax may be
expended.
   (3) The tax is imposed at a rate of 0.125 percent for a period not
to exceed 16 years.
   (4) The revenues collected from the tax are used only for funding
economic development projects, including, but not limited to, the
construction and acquisition of facilities within the county.
   (5) The transactions and use tax conforms to Part 1.6 (commencing
with Section 7251) including the limitation in Section 7251.1 on the
combined rate of all taxes in the county imposed pursuant to that
part..
   (b) The board of supervisors may impose a transactions and use tax
in any succeeding period not to exceed 16 years per period if all of
the conditions specified in subdivision (a) are met for that
succeeding period.