AB 1052: Sacramento Regional Transit District: taxes.

Existing law, the Sacramento Regional Transit District Act, creates the Sacramento Regional Transit District, with specified powers and duties relative to providing transit services in the Sacramento region. Existing law authorizes the district to levy or collect a property tax within any city or the unincorporated area, or any part thereof, in the district, upon the approval by a ²/₃ vote of the electorate, as provided. Existing law authorizes the board of directors of the district to adopt a retail transactions and use tax ordinance, subject to the approval of ²/₃ of the electors at a special election.

This bill would revise and recast those provisions related to the imposition of property taxes and retail transactions and use taxes by the district, by, among other things, explicitly authorizing the district to impose a property tax or retail transactions and use tax in the entirety of, or a portion of, the incorporated and unincorporated territory. If the tax only applies to a portion of an area of the district, the bill would require the incorporated area of each city and of contiguous cities within the district to be either wholly included within or wholly excluded from that portion that is taxed and would require the entire unincorporated area of the district to be either wholly included within or wholly excluded from that portion that is taxed.

Existing law specifies a procedure for the legislative body of a city, county, or district to propose to the voters an ordinance or resolution to adopt a special tax and, upon the approval of ²/₃ of the votes cast by voters voting upon the proposition, the city, county, or district may impose the tax.

This bill would authorize the district to impose a special tax pursuant to those procedures. The bill would authorize the district to impose the special tax in the entirety of, or a portion of, the incorporated and unincorporated territory. The bill would require the incorporated area of each city and of contiguous cities within the district to be either wholly included within or wholly excluded from that portion that is taxed and would require the entire unincorporated area of the district to be either wholly included within or wholly excluded from that portion that is taxed.

This bill would require the district, in exercising the property tax, special tax, and retail transactions and use tax authority described above, to use the tax proceeds for public transportation purposes, as provided, in those areas taxed. The bill would explicitly state that the elections to impose the property tax, special tax, and retail transactions and use tax shall only include the voters of those areas of the district in which the taxes will be imposed.