Agenda

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LEGISLATION COMMITTEE

Meeting Date:	02/08/2016
Subject: AB 1665 (Bonilla): Transactions and Use taxes
Submitted For:	LEGISLATION COMMITTEE
Department:	County Administrator
Referral No.:	2016-02
Referral Name:	AB 1665 (Bonilla): Transactions and Use taxes
Presenter:	John Cunningham	Contact:	J. Cunningham 925-674-7833

Information

Referral History:

This bill is being referred to the Legislation Committee for consideration by John Cunningham, Principal Planner in the Department of Conservation and Development.

Referral Update:

Bill: Assembly Bill 1655 (Bonilla) Transactions and use taxes: County of Alameda, County of Contra Costa, and Contra Costa Transportation Authority. (See Attachment A for the text of the bill.)

Background: In 2013 AB 210 (Wieckowski) modified the Revenue & Taxation (R&T) code to include a provision allowing Contra Costa County to adopt an ordinance proposing the imposition of a transactions and use tax for the support of countywide transportation programs at a rate of no more than 0.50% that, in combination with other specified taxes, exceeds the 2% statutory limitation.

Status: AB 1665 (Bonilla) would further modify the R&T code substituting “Contra Costa Transportation Authority” for “Contra Costa County” specifically assigning the taxing authority for a countywide transportation program to CCTA, and extend the period of authorization from 2020 to 2024.

The subject bill rather than adding CCTA as an entity eligible to propose a sales tax it removes the County and adds CCTA. As the statute (R&T 7291) now reads, it is limited to transportation uses but, in theory, other uses could have been added.

The bill further proposes to replace the County as the entity to impose the tax with CCTA. In other words, the bill enables CCTA to pass their own ordinance rather than going through the Board of Supervisors. Prior to this, the County had a role, albeit largely ministerial, and now with this bill, we are out of the process with the exception of acting as a CCTA member agency similar to the cities.

Recommendation(s)/Next Step(s):

Attachments
Attachment A: AB 1665 Bill Text