Monterey-Salinas Transit District: sales and special taxes.
Impact
If enacted, AB 761 will enable the Monterey-Salinas Transit District to impose a transactions and use tax up to 0.25%. This tax could be levied in conjunction with other local taxes, exceeding the existing combined limit of 2%, should local voters approve it by 2035. This measure intends to offer a new mechanism for funding public transportation effectively, enhancing local transit services amidst funding challenges.
Summary
Assembly Bill 761, introduced by Assembly Member Addis, aims to amend existing provisions related to the Monterey-Salinas Transit District, particularly concerning its power to levy sales and special taxes. The bill outlines that the district is currently prohibited from imposing such taxes but allows for a modification of this stance under defined circumstances. Specifically, it permits the district to submit a sales tax proposal to voters if at least two-thirds of the board agrees, provided this is done before January 1, 2026. Moreover, the bill stipulates the introduction of a retail transactions and use tax ordinance aimed at funding transportation services.
Sentiment
Discussions around AB 761 reveal a generally supportive sentiment among proponents who see it as a necessary step for ensuring that the district can obtain sufficient funding for public transportation. Local government officials and advocates for improved transit options are likely to view this legislation positively, believing it will enhance public transit funding and infrastructure. However, there could be concerns raised from taxpayers regarding the implications of increased taxes, especially if the proposal affects their local tax burdens disproportionately.
Contention
One notable point of contention revolves around the proposed flexibility that the bill would grant the Monterey-Salinas Transit District to impose taxes not previously permitted. Opponents might argue that this change could lead to excessive taxation or an unclear fiscal responsibility since it may generate additional tax burdens on local residents without a guarantee of service improvements. Additionally, the timeline for voter approval before the stipulated 2035 deadline may raise questions about public readiness and awareness in supporting such tax measures.
Local government: infrastructure financing districts: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts: housing development: restrictive covenants.