BILL NUMBER: AB 686	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 9, 2011

INTRODUCED BY   Assembly Member Huffman

                        FEBRUARY 17, 2011

   An act to amend  Section 7285   Sections
7285, 7285.5, 7285.9, and 7285.91  of the Revenue and Taxation
Code, relating to taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 686, as amended, Huffman. Local  sales and use  taxes:
transaction and use  tax.   taxes. 
   Existing law authorizes the board of supervisors of a county 
and the governing body of a city  to levy, increase,  or
 extend a transactions and use tax  for general purposes
 at a rate of 0.25%, or a multiple thereof, if approved by
 a   2/3   vote of the
board and by a majority vote of the county's   the
required   vote of the board or governing body and the
required vote of  qualified voters.
   This bill would  decrease the rate at which the board of
supervisors of a county may levy, increase, or extend a transactions
and use tax for general purposes to   instead authorize
the levy, increase, or extension of a transactions and use tax at a
rate of  0.125% or a multiple thereof.
   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 7285 of the Revenue and Taxation Code is
amended to read:
   7285.  The board of supervisors of any county may levy, increase,
or extend a transactions and use tax for general purposes at a rate
of 0.125 percent or a multiple thereof, if the ordinance proposing
that tax is approved by a two-thirds vote of all members of the board
of supervisors and the tax is approved by a majority vote of the
qualified voters of the county voting in an election on the issue.
The board of supervisors may levy, increase, or extend more than one
transaction and use tax under this section, if the adoption of each
tax is in the manner prescribed in this section. The transactions and
use tax shall conform to Part 1.6 (commencing with Section 7251).
   SEC. 2.    Section 7285.5 of the   Revenue
and Taxation Code   is amended to read: 
   7285.5.  (a) As an alternative to the procedure set forth in
Section 7285, the board of supervisors of any county may levy,
increase, or extend a transactions and use tax for specific purposes.
The tax may be levied, increased, or extended at a rate of 
0.25   0.125  percent, or a multiple thereof, for
the purpose for which it is established, if all of the following
requirements are met:
   (1) The ordinance proposing that tax is approved by a two-thirds
vote of all members of the board of supervisors and is subsequently
approved by a two-thirds vote of the qualified voters of the county
voting in an election on the issue.
   (2) The transactions and use tax conforms to the Transactions and
Use Tax Law Part 1.6 (commencing with Section 7251).
   (3) The ordinance includes an expenditure plan describing the
specific projects for which the revenues from the tax may be
expended.
   (b) A county shall be deemed to be an authority for purposes of
Chapter 1 (commencing with Section 55800) of Part 3 of Division 2 of
Title 5 of the Government Code.
   SEC. 3.    Section 7285.9 of the   Revenue
and Taxation Code   is amended to read: 
   7285.9.  The governing body of any city may levy, increase, or
extend a transactions and use tax for general purposes at a rate of
 0.25   0.125  percent or a multiple
thereof, if the ordinance proposing that tax is approved by a
two-thirds vote of all members of that governing body and the tax is
approved by a majority vote of the qualified voters of the city
voting in an election on the issue. The governing body may levy,
increase, or extend more than one transaction and use tax under this
section, if the adoption of each tax is in the manner prescribed in
this section. The transactions and use tax shall conform to Part 1.6
(commencing with Section 7251).
   SEC. 4.    Section 7285.91 of the   Revenue
and Taxation Code   is amended to read:
   7285.91.  As an alternative to the procedure set forth in Section
7285.9, the governing body of any city may levy, increase, or extend
a transactions and use tax for specific purposes. The tax may be
levied, increased, or extended at a rate of  0.25 
 0.125  percent, or a multiple thereof, for the purpose for
which it is established, if all of the following requirements are
met:
   (a) The ordinance proposing that tax is approved by a two-thirds
vote of all members of the governing body and is subsequently
approved by a two-thirds vote of the qualified voters of the city
voting in an election on the issue.
   (b) The transactions and use tax conforms to the Transactions and
Use Tax Law Part 1.6 (commencing with Section 7251).
   (c) The ordinance includes an expenditure plan describing the
specific projects for which the revenues from the tax may be
expended.