AB 2920: Transactions and use taxes: North Lake Tahoe Transportation Authority and City of Berkeley.

(1)Existing law authorizes cities, counties, and districts, 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 the City of Berkeley to impose a transactions and use tax for general or specific purposes at a rate of no more than 0.5% that, in combination with other transactions and use taxes, would exceed the above-described combined rate limit of 2%, if the city adopts an ordinance proposing the tax and the ordinance proposing the tax is approved by the voters, subject to applicable voter approval requirements, as specified.

(2)The North Lake Tahoe Transportation Authority Act authorizes the establishment of the North Lake Tahoe Transportation Authority within the County of Placer and authorizes that authority to levy a retail transactions and use tax following an election on the question, for a period of no more than 20 years and at a rate not to exceed a maximum tax rate of .50%. The authority is required to adopt a transportation expenditure plan prior to the election and to annually review and amend that plan, as specified. That act requires the authority to have a board of directors consisting of 5 members elected by the voters from within the district. The act additionally requires the North Tahoe Resort Association, prior to the authority levying a retail transactions and use tax, to function as an advisor to the authority, as specified.

This bill would increase the number of years that the retail transaction and use tax may be levied by the North Lake Tahoe Transportation Authority to 30 years, and increase the maximum tax rate to 1%. The bill would revise the provisions related to the transportation expenditure plan and instead require the authority to adopt a transportation plan, as specified. The bill would expand the board of directors to 7 members, and instead provide that those members be appointed from various bodies within the boundaries of the district, as specified. This bill would repeal the requirement that the North Tahoe Resort Association function as an advisor to the authority.

(3)This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Berkeley and the County of Placer.