AB 1324, as amended, Skinner. Transactions and use taxes: City of El Cerrito: County of Contra Costa.
Existing law authorizes cities and counties, 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 that may be imposed in accordance with that law in the county not exceed 2%.
This bill would authorize the City of El Cerrito and the County of Contra Costa, if certain requirements are met, each to impose a separate transactions and use tax for general purposes at a rate of no more than 0.5% that, in combination with other specified taxes, each would exceed the combined rate limit. Under the bill, these authorized tax rates would not be included in the calculation of the 2% limitation.
These provisions would be repealed by their own terms on January 1, 2022, if the ordinance is not approved, as specified.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of El Cerrito and the County of Contra Costa.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Chapter 3.8 (commencing with Section 7293) is
2added to Part 1.7 of Division 2 of the Revenue and Taxation Code,
3to read:
4
(a) Notwithstanding any other law, the City of El Cerrito
9and the County of Contra Costa each may impose a separate
10transactions and use tax for general purposes at a rate of no more
11than 0.5 percent that, in combination with all taxes imposed
12pursuant to Part 1.6 (commencing with Section 7251), each would
13exceed the limit established in Section 7251.1, if all of the
14following requirements are met:
15(1) The city or county adopts an ordinance proposing the
16transactions and use tax subject to any applicable voter approval
17requirement.
18(2) The city or county ordinance proposing the transactions and
19use tax is submitted to the electorate of the adopting city or county,
20as applicable, and is approved by the voters voting on the ordinance
21as required by Article XIII C of the California Constitution. The
22election on the ordinance proposing the transactions and use tax
23may occur on or after November 4, 2014.
24(3) The transactions and use tax conforms to the Transactions
25and Use Tax Law (Part 1.6 (commencing with Section 7251)),
26other than Section 7251.1.
P3 1(4) The transactions and use tax is imposed on or after January
21,
2015.
3(5) Notwithstanding paragraph (4), an ordinance proposing a
4transactions and use tax pursuant to this section shall become
5operative as provided in Section 7265.
6(b) Notwithstanding Section 7251.1, the tax rate authorized in
7subdivision (a) shall not be considered for purposes of the
8combined rate limit established by that section.
If, as of January 1, 2022, an ordinance proposing a
10transactions and use tax has not been approved as required by
11begin insert paragraph (2) ofend insert subdivisionbegin delete (b)end deletebegin insert (a)end insert of Section 7293, this chapter
12shall be repealed as of that same date.
The Legislature finds and declares that a special law
14is necessary and that a general law cannot be made applicable
15within the meaning of Section 16 of Article IV of the California
16Constitution because of the unique fiscal and public service
17pressures being experienced in the City of El Cerrito and the
18County of Contra Costa.
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