SB 862: Santa Cruz Metropolitan Transit District: transaction and use tax rates.

(1)Existing law authorizes various specified 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. A provision of the Transactions and Use Tax Law prohibits the combined rate of all taxes that may be imposed in accordance with that law in a county from exceeding 2%.

Existing law, the Santa Cruz Metropolitan Transit District Act of 1967, authorizes the County of Santa Cruz to organize and incorporate the Santa Cruz Metropolitan Transit District, as provided. Existing law, among other things, authorizes the board of directors of the district to impose transactions and use taxes in accordance with the Transactions and Use Tax Law by an ordinance approved by ²/₃ of the electors voting on the measure at a special election called for that purpose. Existing law provides that, notwithstanding the 2% combined rate limit under the Transactions and Use Tax Law, a transactions and use tax rate imposed by the board pursuant to these provisions on or before January 1, 2020, are not considered for purposes of that combined rate limit.

This bill would authorize the board to impose a retail transactions and use tax after January 1, 2024, that is excluded from the 2% combined rate limit, if the board adopts an ordinance approving the tax before January 1, 2035, and if the total tax rate excluded under the authority added by the bill does not exceed ¹/₂ %.

(2)This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Santa Cruz.