| 1 | 1 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2431Introduced by Assembly Member MathisFebruary 13, 2024 An act to add Chapter 2.5 (commencing with Section 7286.10) to Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTAB 2431, as introduced, Mathis. Taxation: Transactions and Use Tax Law: limit increase.Existing law authorizes cities and counties, subject to certain limitations and approval requirements, to levy a transactions and use tax for general or specific 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 a city, county, or city and county to impose a transactions and use tax at a rate of no more than an unspecified percentage that, in combination with other transactions and use taxes, would exceed the above-described combined rate limit of 2%, if certain conditions are met, including that the city, county, or city and county has reached the 2% rate limitation. The bill would specify that a transactions and use tax established pursuant to its provisions would not be considered for purposes of the 2% combined rate limitation.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 2.5 (commencing with Section 7286.10) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read: CHAPTER 2.5. City and County Transactions and Use Tax7286.10. (a) Notwithstanding any law, a city, county, or city and county may impose a transactions and use tax at a rate of no more than ____ percent that would, in combination with all taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), exceed the limit established in Section 7251.1, if all of the following conditions are satisfied:(1) The governing body adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement, including by citizens initiative.(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance pursuant to Section 11 of Article II or Section 2 of Article XIII C of the California Constitution, as applicable.(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.(4) The city, county, or city and county has reached the rate limitation set forth in Section 7251.1.(5) A joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is operating in part or all of the jurisdiction of the city, county, or city and county is issuing a bond for the sole purpose of seismic retrofitting for a general acute hospital, as defined in Section 1250 of the Health and Safety Code.(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2431Introduced by Assembly Member MathisFebruary 13, 2024 An act to add Chapter 2.5 (commencing with Section 7286.10) to Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGESTAB 2431, as introduced, Mathis. Taxation: Transactions and Use Tax Law: limit increase.Existing law authorizes cities and counties, subject to certain limitations and approval requirements, to levy a transactions and use tax for general or specific 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 a city, county, or city and county to impose a transactions and use tax at a rate of no more than an unspecified percentage that, in combination with other transactions and use taxes, would exceed the above-described combined rate limit of 2%, if certain conditions are met, including that the city, county, or city and county has reached the 2% rate limitation. The bill would specify that a transactions and use tax established pursuant to its provisions would not be considered for purposes of the 2% combined rate limitation.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 13 | 13 | | No. 2431 |
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| 15 | 15 | | Introduced by Assembly Member MathisFebruary 13, 2024 |
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| 17 | 17 | | Introduced by Assembly Member Mathis |
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| 18 | 18 | | February 13, 2024 |
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| 20 | 20 | | An act to add Chapter 2.5 (commencing with Section 7286.10) to Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to taxation. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 2431, as introduced, Mathis. Taxation: Transactions and Use Tax Law: limit increase. |
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| 28 | 28 | | Existing law authorizes cities and counties, subject to certain limitations and approval requirements, to levy a transactions and use tax for general or specific 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 a city, county, or city and county to impose a transactions and use tax at a rate of no more than an unspecified percentage that, in combination with other transactions and use taxes, would exceed the above-described combined rate limit of 2%, if certain conditions are met, including that the city, county, or city and county has reached the 2% rate limitation. The bill would specify that a transactions and use tax established pursuant to its provisions would not be considered for purposes of the 2% combined rate limitation. |
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| 30 | 30 | | Existing law authorizes cities and counties, subject to certain limitations and approval requirements, to levy a transactions and use tax for general or specific 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%. |
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| 32 | 32 | | This bill would authorize a city, county, or city and county to impose a transactions and use tax at a rate of no more than an unspecified percentage that, in combination with other transactions and use taxes, would exceed the above-described combined rate limit of 2%, if certain conditions are met, including that the city, county, or city and county has reached the 2% rate limitation. The bill would specify that a transactions and use tax established pursuant to its provisions would not be considered for purposes of the 2% combined rate limitation. |
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| 34 | 34 | | ## Digest Key |
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| 36 | 36 | | ## Bill Text |
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| 38 | 38 | | The people of the State of California do enact as follows:SECTION 1. Chapter 2.5 (commencing with Section 7286.10) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read: CHAPTER 2.5. City and County Transactions and Use Tax7286.10. (a) Notwithstanding any law, a city, county, or city and county may impose a transactions and use tax at a rate of no more than ____ percent that would, in combination with all taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), exceed the limit established in Section 7251.1, if all of the following conditions are satisfied:(1) The governing body adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement, including by citizens initiative.(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance pursuant to Section 11 of Article II or Section 2 of Article XIII C of the California Constitution, as applicable.(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.(4) The city, county, or city and county has reached the rate limitation set forth in Section 7251.1.(5) A joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is operating in part or all of the jurisdiction of the city, county, or city and county is issuing a bond for the sole purpose of seismic retrofitting for a general acute hospital, as defined in Section 1250 of the Health and Safety Code.(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1. |
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| 40 | 40 | | The people of the State of California do enact as follows: |
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| 42 | 42 | | ## The people of the State of California do enact as follows: |
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| 44 | 44 | | SECTION 1. Chapter 2.5 (commencing with Section 7286.10) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read: CHAPTER 2.5. City and County Transactions and Use Tax7286.10. (a) Notwithstanding any law, a city, county, or city and county may impose a transactions and use tax at a rate of no more than ____ percent that would, in combination with all taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), exceed the limit established in Section 7251.1, if all of the following conditions are satisfied:(1) The governing body adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement, including by citizens initiative.(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance pursuant to Section 11 of Article II or Section 2 of Article XIII C of the California Constitution, as applicable.(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.(4) The city, county, or city and county has reached the rate limitation set forth in Section 7251.1.(5) A joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is operating in part or all of the jurisdiction of the city, county, or city and county is issuing a bond for the sole purpose of seismic retrofitting for a general acute hospital, as defined in Section 1250 of the Health and Safety Code.(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1. |
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| 46 | 46 | | SECTION 1. Chapter 2.5 (commencing with Section 7286.10) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read: |
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| 48 | 48 | | ### SECTION 1. |
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| 50 | 50 | | CHAPTER 2.5. City and County Transactions and Use Tax7286.10. (a) Notwithstanding any law, a city, county, or city and county may impose a transactions and use tax at a rate of no more than ____ percent that would, in combination with all taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), exceed the limit established in Section 7251.1, if all of the following conditions are satisfied:(1) The governing body adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement, including by citizens initiative.(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance pursuant to Section 11 of Article II or Section 2 of Article XIII C of the California Constitution, as applicable.(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.(4) The city, county, or city and county has reached the rate limitation set forth in Section 7251.1.(5) A joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is operating in part or all of the jurisdiction of the city, county, or city and county is issuing a bond for the sole purpose of seismic retrofitting for a general acute hospital, as defined in Section 1250 of the Health and Safety Code.(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1. |
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| 52 | 52 | | CHAPTER 2.5. City and County Transactions and Use Tax7286.10. (a) Notwithstanding any law, a city, county, or city and county may impose a transactions and use tax at a rate of no more than ____ percent that would, in combination with all taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), exceed the limit established in Section 7251.1, if all of the following conditions are satisfied:(1) The governing body adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement, including by citizens initiative.(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance pursuant to Section 11 of Article II or Section 2 of Article XIII C of the California Constitution, as applicable.(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.(4) The city, county, or city and county has reached the rate limitation set forth in Section 7251.1.(5) A joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is operating in part or all of the jurisdiction of the city, county, or city and county is issuing a bond for the sole purpose of seismic retrofitting for a general acute hospital, as defined in Section 1250 of the Health and Safety Code.(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1. |
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| 54 | 54 | | CHAPTER 2.5. City and County Transactions and Use Tax |
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| 56 | 56 | | CHAPTER 2.5. City and County Transactions and Use Tax |
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| 58 | 58 | | 7286.10. (a) Notwithstanding any law, a city, county, or city and county may impose a transactions and use tax at a rate of no more than ____ percent that would, in combination with all taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), exceed the limit established in Section 7251.1, if all of the following conditions are satisfied:(1) The governing body adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement, including by citizens initiative.(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance pursuant to Section 11 of Article II or Section 2 of Article XIII C of the California Constitution, as applicable.(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.(4) The city, county, or city and county has reached the rate limitation set forth in Section 7251.1.(5) A joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is operating in part or all of the jurisdiction of the city, county, or city and county is issuing a bond for the sole purpose of seismic retrofitting for a general acute hospital, as defined in Section 1250 of the Health and Safety Code.(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1. |
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| 62 | 62 | | 7286.10. (a) Notwithstanding any law, a city, county, or city and county may impose a transactions and use tax at a rate of no more than ____ percent that would, in combination with all taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), exceed the limit established in Section 7251.1, if all of the following conditions are satisfied: |
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| 64 | 64 | | (1) The governing body adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement, including by citizens initiative. |
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| 66 | 66 | | (2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance pursuant to Section 11 of Article II or Section 2 of Article XIII C of the California Constitution, as applicable. |
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| 68 | 68 | | (3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1. |
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| 70 | 70 | | (4) The city, county, or city and county has reached the rate limitation set forth in Section 7251.1. |
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| 72 | 72 | | (5) A joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code that is operating in part or all of the jurisdiction of the city, county, or city and county is issuing a bond for the sole purpose of seismic retrofitting for a general acute hospital, as defined in Section 1250 of the Health and Safety Code. |
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| 74 | 74 | | (b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1. |
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