Transactions and use taxes: County of Alameda: Santa Cruz Metropolitan Transit District.

(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 authorizes the County of Alameda 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 county adopts an ordinance proposing the tax and the ordinance proposing the tax is approved by the voters, subject to applicable voter approval requirements. Existing law repeals this authorization on December 31, 2022, for the county if an ordinance proposing the tax has not been approved by that date in that county. Existing law, the San Francisco Bay Area Rapid Transit District Act, creates the San Francisco Bay Area Rapid Transit District and, among other things, authorizes the board of directors of the district to impose transactions and use taxes in conformity with the Transactions and Use Tax Law for specified purposes, subject to periodic legislative review and amendment, as provided. This bill would provide that, notwithstanding the combined rate limit under the Transactions and Use Tax Law, neither a transaction and use tax rate imposed by the County of Alameda, either as described above or pursuant to previously existing law, nor a transactions and use tax rate imposed by the San Francisco Bay Area Rapid Transit District on or before the effective date of this bill, will be considered for purposes of that combined rate limit within the County of Alameda. The bill would declare that the changes made with regard to taxes imposed by the County of Alameda are declaratory of existing law. (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 23 of the electors voting on the measure at a special election called for that purpose. This bill would provide that, notwithstanding the combined rate limit under the Transactions and Use Tax Law, a transactions and use tax rate imposed by the Santa Cruz Metropolitan Transit District pursuant to these provisions on or before the effective date of this bill will not be considered for purposes of that combined rate limit. (3) This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Alameda and Santa Cruz.