California Senate Bill SB1411

California 2017-2018 Regular Session

• Introduced: 2/16/18
• Refer: 3/8/18

Caption

Taxation: documentary transfer tax.

Impact

If enacted, SB1411 would significantly impact local revenue structures by limiting the ability of cities to generate income through documentary transfer taxes. This could lead to decreased financial flexibility for municipalities that rely on such taxes for funding local services and infrastructure projects. The amendment would streamline the taxation processes and could lead to a more consistent tax structure across counties, potentially reducing confusion among taxpayers engaged in real estate transactions.

Summary

Senate Bill 1411, introduced by Senator Moorlach on February 16, 2018, aims to amend Section 11911 of the Revenue and Taxation Code concerning taxation. The core purpose of this bill is to remove the existing authorization for cities within counties to impose a documentary transfer tax. Currently, both counties and cities in California can levy this tax on the transfer of real property based on the value of the transaction. SB1411 seeks to centralize the authority to impose such taxes solely at the county level, effectively emphasizing the role of counties in local taxation efforts.

Contention

The contention surrounding SB1411 lies in the balance between local autonomy and state-level regulation. Supporters of the bill may argue that removing the city-level taxation is essential to simplify the tax structure, while opponents could contend that this amendment undermines local governments' ability to manage their fiscal needs independently. The debate highlights critical issues regarding the distribution of power between state and local government entities and the implications for public services that cities provide through their tax revenues.