SB 703: Transactions and use taxes: Counties of Alameda and Santa Clara and City of Santa Fe Springs.

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 the Counties of Alameda and Santa Clara to impose a transactions and use tax for general or specific purposes at a rate of no more than 0.5% or 0.625%, respectively, and the City of Santa Fe Springs to impose a transactions and use tax for general or specific purposes at a rate of no more than 1% that, in combination with other transactions and use taxes, would exceed the above-described combined rate limit of 2%, if either county or 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. The bill would repeal this authorization on December 31, 2022, for either county or the city if an ordinance proposing the tax has not been approved by that date in that county or city. The bill would also make a technical conforming correction.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Alameda and Santa Clara and the City of Santa Fe Springs.