Agenda

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FINANCE COMMITTEE

Meeting Date:	11/04/2019
Subject: Sales Tax
Submitted For:	David Twa
Department:	County Administrator
Referral No.:	5/21/2019 D.7
Referral Name:	Sales Tax
Presenter:	Supervisor John Gioia	Contact:	Timothy Ewell, Chief Assistant County Administrator (925) 335-1036

Information

Referral History:

On May 21, 2019, while considering whether to accept a report on the Contra Costa Transportation Authority's (CCTA) development of a Transportation Expenditure Plan and potential sales tax ballot measure, the Board of Supervisors referred to the Finance Committee the concept of a countywide sales tax (non-transportation) measure.

On July 5, 2019, the Finance Committee met and discussed the feasibility of a sales tax measure. County Counsel provided two attachments to supplement the discussion. The first attachment is a document outlining the procedural steps necessary to bring a general or special sales tax measure to the voters for approval. The second attachment discusses the limitations on the use of public resources in relation to ballot measure campaigns for a tax. Both documents are also attached to this agenda item for reference as attachments A and B, respectively.

At the July 29, 2019 Finance Committee meeting, staff was asked to provide several follow up information items to the Committee at its next regular meeting, including: 1) information regarding the composition of parcels throughout the County, 2) County Counsel was asked to assemble information related to parcel taxes similar to what has been provided to the Committee for a sales tax (essentially a "Guide"), and 3) provide updated information as to what a 0.5% and 0.25% sales tax would generate if passed.

At the October 7, 2019 Finance Committee meeting, staff presented a report related to a proposed sales tax measure and provided staff recommendations on next steps. After discussion, the Committee:

Determined that a sales tax should be pursued over a parcel tax for the entire County (unincorporated and cities)
An expenditure plan should be developed prior to the ballot measure being listed, but acknowledged that a general tax is not bound to be spent on specific services
1. Create an ad hoc committee by Sups. Gioia and Mitchoff to work on development of the expenditure plan
2. Ad hoc committee will work with a workgroup composed of (Labor, CBO, East Bay Leadership Council and County Administrator)
3. Meetings shall be open meetings governed by the Brown Act
Staff authorized to work with the CDTFA on logistics of listing a ballot measure and set up and collection contracts, if approved
Staff authorized to begin discussions with Nielsen Merksamer regarding special legislation needed to list measure on the ballot, but shall not begin drafting language or engaging legislators.
The Committee acknowledged that the Governor would need to sign special legislation by May/June timeframe for the ballot measure to be feasible.

Referral Update:

At the October 22, 2019 Board of Supervisors meeting, the Finance Committee presented their report and recommendations to the full Board of Supervisors. After discussion and public comment, the Board of Supervisors approved the establishment of a Potential Sales Tax Measure Ad Hoc Committee. The Committee will be tasked with developing a recommended expenditure plan and related actions for a potential tax measure. The Ad Hoc Committee will be composed of Supervisors Gioia and Mitchoff. The Committee working group will include representatives from labor, community based organizations, the East Bay Leadership Council, and County Administrator. Committee and working group meetings shall be open and governed by the Brown Act.

Recommendation(s)/Next Step(s):

Consider a status update regarding a formation of an Ad Hoc Committee.

Attachments
Attachment A - Sales Tax Measures-General, Special, Voter-Initiated, Etc.
Attachment B - Use of Public Resources in Relation to Tax Measure Campaigns
Attachment C - Detailed District Taxes, Rates and Effective Dates
Attachment D - Summary Parcel Count (Unincorporated & City), by Use Code
Attachment E - County Counsel Memorandum - Uniformity in Parcel Tax Measures, October 1 ,2019