AB 1838: Local government: taxation: prohibition: groceries.

Existing law authorizes counties, cities, and other local agencies to impose various taxes and fees in connection with activity or property within those jurisdictions. The California Constitution also authorizes a charter city to levy local taxes to raise revenues for local purposes, subject to restrictions imposed by that citys charter or preemption in matters of statewide concern.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose a local sales and use tax in accordance with that law for tangible personal property sold at retail in the county or city, or purchased for storage, use, or other consumption in the county or city. That law requires the county or city to contract with the California Department of Tax and Fee Administration for the administration of the taxes and requires the department to transmit those taxes to the city or county.

This bill, on and after the effective date of this chapter and until January 1, 2031, would prohibit the imposition, increase, levy and collection, or enforcement by a local agency of any tax, fee, or other assessment on groceries, except as provided. This bill would allow a local agency to continue to levy and collect, enforce, or reauthorize any tax, fee, or other assessment on groceries imposed, extended, or increased on or before January 1, 2018. This bill would make inoperative on the effective date of this measure any tax, fee, or other assessment on groceries imposed by a local agency after January 1, 2018.

This bill would require the California Department of Tax and Fee Administration to cease to administer and to terminate its contract to administer any sales or use tax ordinance of a local agency under the Bradley-Burns Uniform Local Sales and Use Tax Law if that local agency imposes, increases, levies and collects, or enforces any tax, fee, or other assessment on groceries for which a court of competent jurisdiction has determined that (1) the tax, fee, or other assessment is in conflict with the prohibition set forth in this bill and is not excepted from that prohibition and (2) the tax, fee, or other assessment is a valid exercise of a citys authority under the California Constitution with respect to the municipal affairs of that city.

This bill would require a civil action with respect to the application of this measure to a tax, fee, or other assessment to be given preference over all other civil actions before the court in the matter of setting the same for hearing or trial, and in hearing the same, to the end that the action be speedily heard and determined. This bill would require the venue for such a civil action to be exclusively in Sacramento County.

This bill would appropriate from the General Fund $12,000 to the California Department of Tax and Fee Administration to notify affected governmental entities of the requirements of this measure on its Internet Web site.

This bill would make a legislative finding and declaration regarding the statewide concern of the promotion of uniformity in the taxation of groceries.

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.