Amended  IN  Assembly  April 22, 2024
Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 3259

Introduced by Assembly Member Wilson

February 16, 2024

An act to add and repeal Chapter 3.81 (commencing with Section 7294.1) of to Part 1.7 of Division 2 of of, and to repeal Section 7294.1 of, the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 3259, as amended, Wilson. Transactions and use taxes: County of Solano.
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 County of Solano or any city therein to impose a transactions and use tax for general 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 certain requirements are met. The bill would provide that a transactions and use tax rate imposed pursuant to the bill will not be considered for purposes of the combined rate limit described above. The bill would repeal this authorization on January 1, 2029, if an ordinance proposing the tax has not been approved by that date. date, as specified.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Solano.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 3.81 (commencing with Section 7294.1) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, immediately following Chapter 3.8 (commencing with Section 7293), to read:
CHAPTER  3.81. County of Solano Transactions and Use Tax for General Purposes

7294.1.
 (a) Notwithstanding any other law, the County of Solano or any city therein may impose a transactions and use tax for general purposes at a rate of no more than 0.5 percent that would, in combination with all taxes imposed in accordance with Part 1.6 (commencing with Section 7251), exceed the limit established in Section 7251.1 if all of the following requirements are met:

(a)

(1) The County of Solano Board of Supervisors, or the city council of any city therein, Supervisors adopts an ordinance proposing the transactions and use tax by the applicable voting approval requirement.

(b)

(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance by the applicable voting approval requirement in accordance with the California Constitution.

(c)

(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.
(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1.
(c) If an ordinance proposing a transactions and use tax is not approved pursuant to subdivision (a) before January 1, 2029, this section shall remain in effect only until January 1, 2029, and as of that date is repealed.

7294.2.
 (a) Notwithstanding any other law, any city within the County of Solano may impose a transactions and use tax for general purposes at a rate of no more than 0.5 percent that would, in combination with all taxes imposed in accordance with Part 1.6 (commencing with Section 7251), exceed the limit established in Section 7251.1 if all of the following requirements are met:
(1) The city council of any city within the County of Solano adopts an ordinance proposing the transactions and use tax by the applicable voting approval requirement.
(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance by the applicable voting approval requirement in accordance with the California Constitution.
(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.
(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1.
(c) This section shall not apply to any city within the County of Solano that has not approved, on or before January 1, 2029, an ordinance proposing a transactions and use tax pursuant to subdivision (a).

7294.2.

If, as of January 1, 2029, an ordinance proposing a transactions and use tax has not been approved as required by Section 7294.1, this chapter shall be repealed as of that same date.

SEC. 2.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique fiscal pressures relating to transactions and use taxes imposed within the County of Solano.