HomeMy WebLinkAboutPW Sales Tax Cap Exemption (DID NOT PASS)SAN RAFAEL
THE CITY WITH A MISSION
Agenda Item No: 6.b
Meeting Date: January 17, 2017
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Bill Guerin, City Manager Approval:
Public Works Director
TOPIC: Support of Exemption to Existing Sales Tax Cap
SUBJECT: RESOLUTION SUPPORTING LEGISLATION TO EXEMPT THE EXISTING SALES
TAX CAP TO ACCOMMODATE UP TO 0.5% FOR THE TRANSPORTATION
AUTHORITY OF MARIN
RECOMMENDATION: Adopt resolution.
BACKGROUND: Existing law authorizes various local governmental entities, subject to certain
limitations and approval requirements, to levy a transaction and use tax for general 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%.
In recent history, this cap can be quickly reached when both cities and counties enact their own district
taxes. It is particularly problematic for counties because if one city within a county has reached the cap,
then the county is precluded from seeking voter approval to self -impose additional district taxes.
Similarly, cities that have already reached the cap are constrained when seeking additional funding for
programs and services above the cap.
At the present time, the Counties of Alameda, Contra Costa, Los Angeles, and San Mateo have
reached the 2% limit. The Counties of Marin, Monterey, San Diego, and Sonoma are near the limit.
The Legislature has previously granted exemptions to the 2% cap for transactions and use taxes to
support countywide transportation programs, at both the county and local city level.
For example, the legislature authorized the Los Angeles County Metropolitan Transportation Authority
an exemption (AB 23 (Feuer) Chapter 302) in 2008. In 2011, Alameda County was provided with an
exemption (AB 1086 (Wieckowski) Chapter 327). Contra Costa County received an exemption in 2012
(AB 210 (Wieckowski), Chapter 194). In 2015, the legislature enacted SB 705 (Hill), Chapter 579, to
provide San Mateo and Monterey Counties with an exemption. All of these exemptions were
specifically related to transportation related sales tax measures.
FOR CITY CLERK ONLY
File No.: 9-12 x 170
Council Meeting: 01/17/2017
Disposition: Not adopted - 4:1 against
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Proposed legislation for TAM to increase the sales tax limit up to 0.5% would need to be approved by
the Legislature and signed by the Governor. Senator Mike McGuire has been requested to consider
sponsoring the legislation.
ANALYSIS: The following table is a list of sales tax levels in Marin County, effective January 1St, 2017.
After the passage of Statewide Proposition 55 at the November 8th Election (see below on its impact),
the current maximum sales tax limit for Marin County is 9.25%, which includes the state sales tax limit
of 7.25%, and the local sales tax allowance of 2%. The 2% local cap applies regardless of the state's
sales tax rate. Without an exemption, no tax can be enacted county -wide that puts any jurisdiction in
the county over the 2% cap.
California and Marin County Sales and Use Tax Rates (January 1, 2017)
3.69%
State
State's General Fund
0.25%
State
State's General Fund
0.25%
State
Economic Recovery Bonds (2004)
0.50%
State
Local Public Safety Fund (1993)
0.251%
State
State's EdUGatiE)n Prete Gtien AGGGURt (2016 DrepeSitien 55)
0.50%
State
Local Revenue Fund (local health & social services) (1991)
1.06%
State
Local Revenue Fund (2011)
0.25% to county transportation funds
1.00%
State
0.75% to city or county operations
7.25%
Statewide
Total Statewide Base Sales and Use Tax Rate
0.25%
Marin County
Marin Parks/Open Space/Farmland Preservation (2013)
0.50%
Marin County
TAM Transportation Sales Tax (2005)
0.25%
Marin County
Sonoma -Marin Area Rail Transit District (2009)
Marin
All jurisdictions (including unincorporated Marin County,
8.25%
Countywide
Belvedere, Mill Valley, Ross, and Tiburon), unless indicated
below
8.75%
Corte Madera
0.50% Measure B (2013) Emergency Services, Transportation,
Youth & Senior Programs
8.75%
Larkspur
0.50% Measure D (2013) Larkspur Street Repair/Essential City
Services
8.50%
Novato
0.25% Measure C (2015) Sales Tax Extension and Reduction
8.75%
San Anselmo
0.50% Measure D (2014) Vital Services and Infrastructure Needs
8.75%
Sausalito
0.50% Measure O (2015) Essential Services
9.00%
San Rafael
0.75% Measure E (2013) Maintaining Emergency Services
9.00%
Fairfax
0.75% Measure C (2016) Vital Town Service Emergency Protection
Effective January 1St, 2017, the current available increase allowed for a countywide increase is 0.25%
before reaching the 2.0% limit, since the County's Measure A 0.25% sales tax for child care and health
services failed on November 8th. Attachment C is a table that summarizes the ballot measure results for
Marin County from the November 8th Election.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
If TAM were to pursue an increase of sales tax for transportation in the future of 0.5% and no other
countywide or city specific sales taxes are enacted, it would need to pass legislation similar to past
legislative exemptions identified above. Legislative approval for an exemption to the sales tax limit for
Marin County does not automatically increase the sales tax for Marin County.
Proposition 55 Tax Extension to Fund Education and Healthcare
In 2012, California successfully passed Proposition 30 to temporarily raise income tax on couples
making over $500,000 per year through 2019 and temporarily increasing the statewide sales tax by
0.25% through 2016. Proposition 30 yielded over $6 billion annually to help the Legislature pass a
balanced budget.
In the November 8t" Election, Proposition 55 was passed to allow the increased income tax on single
filers making over $250,000 or joint filers making over $500,000 to continue until 2030, while allowing
the 0.25% sales tax increase from Proposition 30 to expire. It is estimated that anywhere from $4
billion to $9 billion could be realized between 2019 and 2030, depending on the health of the economy
and stock market.
The expiration of the sales tax increase from Proposition 55 reduced the State sales tax from 7.5% to
7.25%, as reflected in the table above, but does not affect the 2% local sales tax cap.
Legislative Authorization TO ALLOW FLEXIBILITY
TAM's Transportation Sales Tax (Measure A) was approved by Marin voters on November 2, 2004 and
started collecting revenues on a '/2 cent sales tax on April 1, 2005. Measure A authorized the collection
of sales tax revenues over a 20 -year period. Measure A currently raises over $25 million dollars each
year dedicated to local transportation projects and programs, and it is approaching its 12th year of
collection with a sunset date of March 31, 2025. If TAM chooses to renew its sales tax, there is no
effect on the cap, and no legislation is required. However, the TAM Board would like to further consider
both a renewal and a potential increase. An increase may not be feasible due to the cap that exists
now.
This legislation would remove existing legislative constraints to considering placement of a new
transportation -related sales tax on the ballot.
Rather than waiting until the last few years of the existing Measure A Transportation Sales Tax, the
TAM Board is considering the placement of a renewal and/or increase in the sales tax dedicated to
transportation in an upcoming Marin general election. The earliest this could occur is 2018.
The TAM Board agrees the time is optimal to legislatively seek an exemption to the sales tax cap limit
for Marin County in anticipation of reauthorizing or increasing the transportation sales tax as early as
2018. It is imperative that a sales tax cap increase occur before any sales tax needing the exemption is
placed on the ballot. Legislation approved by the legislature and Governor in 2017 would become
effective on January 1, 2018. This allowance would give TAM and its member agencies the maximum
flexibility in considering the placement of a county -wide sales tax on the ballot in June or November of
2018.
There is evidence that the public may support an extend -and -expand option for Marin's transportation
related sales tax, allowing for more transportation needs to be met. Unless the cap is raised, TAM will
be precluded from considering all options in response to public interest. The Legislature and Governor
Brown have consistently approved local sales tax cap legislation for transportation purposes.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
Process and Schedule for Legislation Introduction
Senator Mike McGuire has been responsive to TAM's request for sponsoring a bill seeking an
exemption to the cap. Senator McGuire would need to introduce legislation by the third week of
February at the latest.
Once a bill is introduced, TAM will await its assignment to a policy committee. The 2017 Legislative
Session is the first year of a two-year session. Bills will most likely be heard in early April. Since TAM's
legislation is only requesting permission for an exemption of up to 0.5%, the bill would be a majority
vote item if it were to clear policy committee and head to the Floor. The bill would not be designated as
fiscal, meaning that it would not be heard by the Appropriations Committee.
After heading to policy committee and a Floor vote, the process repeats in the other house. If TAM's
legislation passes with a majority vote bill and it is signed into law by the Governor, the bill would take
effect on January 1, 2018.
NEXT STEPS
TAM is currently soliciting statements of support from each jurisdiction in Marin for TAM to seek
legislation pursue State legislation in 2017 to provide an exemption to the 2% cap on the local
transaction and use taxes (also known as the district tax). The bill would provide an exemption of no
more than 0.5% for the Transportation Authority of Marin (TAM), affording flexibility to place items
before voters to reauthorize or supplement the existing Transportation Sales Tax (Measure A) program
dedicated to transportation purposes in Marin County.
TAM will continue to work with Senator Mike McGuire to introduce legislation by the third week of
February at the latest.
FISCAL IMPACT: There is no direct cost to the City of San Rafael associated with support of this
legislation.
OPTIONS: The City Council has the following options to consider on this matter:
1. Adopt the Resolution supporting the proposed legislation
2. Reject or request changes to the Resolution
RECOMMENDED ACTION: Adopt a Resolution in support of legislation to exempt the existing sales
tax cap to accommodate up to 0.5% for the Transportation Authority of Marin
ATTACHMENTS:
A: Draft Sales Tax Exemption Language
B: Marin November 2016 Ballot Measures and Results
C: List of Local Sales Tax Exemption Bills
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
SUPPORTING LEGISLATION TO EXEMPT THE EXISTING SALES TAX CAP
TO ACCOMMODATE UP TO 0.5% FOR THE TRANSPORTATION
AUTHORITY OF MARIN
WHEREAS, Existing law authorizes various local governmental entities,
subject to certain limitations and approval requirements, to levy a transaction and use tax
for general 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%; and
WHEREAS, this cap can be quickly reached when both cities and counties
enact their own district taxes; and
WHEREAS, if one city within a county has reached the cap, then the
county is precluded from seeking voter approval to self -impose additional district taxes;
and
WHEREAS, Marin County is near the limit; and
WHEREAS, The Legislature has previously granted exemptions to the 2%
cap for transactions and use taxes to support countywide transportation programs, at both
the county and local city level; and
WHEREAS, the Transportation Authority of Marin (TAM) is currently
soliciting statements of support from each Jurisdiction in Marin for TAM to pursue State
legislation in 2017 to provide an exemption to the 2% cap on the local transaction and use
taxes (also known as the district tax); and
WHEREAS, the exemption, if enacted in legislation, would provide additional
funding for transportation projects throughout Marin County;
NOW, THEREFORE, BE IT RESOLVED that the City Council
supports the TAM request to seek an exemption to the existing sales tax cap to
accommodate up to 0.5% for the Transportation Authority of Marin.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the
Council of said City on Monday, the 17th of January, 2017 by the following vote, to wit:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
ESTHER C. BEIRNE, City Clerk
ATTACHMENT A
Please draft the following bill to amend Sections 7299 and 7300 of the Revenue and
Taxation Code to read as follows:
SB XXXX (Legislator). Transactions and use taxes: Transportation Authority of Marin
Existing law authorizes various local governmental entities, subject to certain
limitations and approval requirements, to levy a transactions and use tax for general
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 Transportation Authority of Marin to impose a
transaction and use tax for the support of countywide transportation programs at a
rate of up to 0.5% that, in combination with other specified taxes, would exceed the
combined rate limit.
These provisions would be repealed by their own terms on January 1, 2028, if an
ordinance is not approved, as specified.
This bill would make legislative findings and declarations as to the necessity of a
special statute for the County of Marin.
7299. Notwithstanding any other law, the Transportation Authority of Marin may
impose a transactions and use tax for the support of countywide transportation
programs at a rate of up to 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) The Transportation Authority of Marin adopts an ordinance proposing the
transactions and use tax by any applicable voting approval requirement.
(b) The ordinance proposing the transactions and use tax is submitted to the
electorate and is approved by the voters voting on the ordinance in accordance with
Article XIII C of the California Constitution.
(c) 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.
7300. If the ordinance proposing the transactions and use tax is not approved as
required by subdivision (b) of Section 7299, this chapter shall be repealed as of
January 1, 2028.
SEC. 3. (a) The Legislature finds and declares that the special law contained in
Section 1 of this measure is necessary and that a general law.
ATTACHMENT B
NOVEMBER 2016 MARIN BALLOT MEASURES
Jurisdiction Tax Type &
What does the tax pay for?
Amount Duration Result
Name
if passed
Countywide tax Sales Tax
Sales Tax for expanded preschool, child care and health
1/4 cent Sales Tax 9 Years 2/3 Needed
"Measure A"
services for low-income children: Fifty percent of the funds
would be used to fund quality preschool. A quarter of the
Failed
proceeds would be used for affordable child care. Fifteen percent
62.99%
would be used for health care services and wellness programs.
And 10 percent of the tax money would pay for afterschool and
summer programs for children in kindergarten through second
grade.
Kentfield Parcel Tax
Parcel tax benefiting the Kentfield School District: The
$1,600 Annually 10 Years 2/3 Needed
(School "Measure B"
measure seeks authority to levy $1,600 per parcel annually. The
District)
measure would also extend the tax for 10 years and permit
Failed
annual 5 percent increases in the rate. The new tax would
57.72%
replace a parcel tax approved by Kentfield voters in 2007 to fund
the school district; Measure A is due to expire in the 2017-18
fiscal year.
Fairfax Sales Tax
Sales tax to maintain and enhance quality public safety and
1/4 cent Sales Tax 10 years Majority
"Measure C"
general services, improve infrastructure such as repairing
(increase from Needed
sidewalks, pedestrian trails, repaving streets, and enhancing
existing 1/2 cent
downtown: Fairfax voters will be asked to approve a 0.25
sales tax) Passed
percentage point increase in the town's existing 0.5 percent sales
76.49%
tax to 0.75 percent and extend the tax for 10 years.
Mill Valley Parcel Tax
Parcel tax benefiting the Mill Valley School District: Increase
$980 Annually 12 years 2/3 Needed
(School "Measure E"
and an extension of a parcel tax for the Mill Valley School
District)
District. The ballot measure proposes boosting the $865 annual
Failed
parcel tax to $980 yearly beginning July 1, 2017. The measure
66.30%
would renew the tax for another 12 years and allow it to increase
5 percent each year through 2029.
Highlighted texts indicate that streets and roads are eligible components of the measure and underlined texts indicate a sales tax measure.
Novato Bond
Bond measure benefiting Novato Unified School District:
Up to $60 per
25 years 55% Needed
(School Measure
Bond to pay for repairs, upgrades and new furniture in Novato
$100,000 of
District) "Measure G"
Unified School District schools. The maximum possible cost to
assessed property
Passed
homeowners would be $60 per $100,000 of assessed property
value
56.66%
value for 25 years.
Mill Valley Special
Special property tax to pay for maintenance and repair of
$266 annually for
10 years 2/3 Needed
Property Tax
local roads and fire suppression efforts, including vegetation
owners of single -
"Measure H"
removal: Proposal to replace the city's municipal services tax
family residences,
Passed
with a special property tax to pay for maintenance and repair of
with a 2 percent
77.35%
local roads and fire suppression efforts, including vegetation
annual adjustment.
removal.
Ross Parcel Tax
Parcel tax used to pay for public safety services: The tax,
$970 annually per
8 years 2/3 Needed
"Measure K"
which is due to expire June 30, 2017, would cost both residential
dwelling unit
and commercial property owners $970 per dwelling unit. The
Passed
measure would extend the tax for another eight years, with
78.13%
increases based on the consumer price index.
Muir Beach Parcel Tax
Parcel tax to pay for fire protection services: A tax that used
$213 annually per
10 years 2/3 Needed
(Community "Measure L"
to serve that purpose expired June 30, 2016. The measure
parcel
Services
proposes a new tax of $213 per parcel annually beginning in
Passed
District)
fiscal year 2016-17 and continuing 10 years until fiscal year
77.50%
2025-26, with annual consumer price index increases allowable.
Exemptions would be available to the owners of single-family
residences who live in their own homes and have a household
income of 80 percent and below of median income for Marin
County.
Kent Special Tax
Increase of the tax that pays for a Marin County Sheriffs
$360 annually per
In effect 2/3 Needed
Woodlands (Safety)
Office deputy to patrol the Kent Woodlands neighborhood:
living unit
until
"Measure M"
The measure proposes increasing the tax from $260 per living
(increase from
repealed Passed
unit yearly to $360 per living unit yearly, with an annual
$260 per living
68.81%
adjustment for inflation not to exceed 3 percent per year.
unit)
Information from: htto://www.marincountv.orQ/deDts/ry/election-info/election-schedule/naee-data/tabs-collection/2016/nov-8/measure/list
Page 2 of 4
Kent Special Tax
New special tax to pay for the installation and maintenance
Woodlands (Safety)
of surveillance cameras that read the license plates of
"Measure N"
vehicles entering and exiting the community: A special tax
to purchase and install License Plate Readers (LPR) that record
10 years
the license plates of vehicles traveling through the Kent
Woodlands neighborhood so as to deter criminal activities, such
as burglary.
County Service Parcel Tax
Renew of a parcel tax paid by Paradise Cay voters to dredge
Area #29 "Measure O"
the channels that connect the Tiburon yacht harbor to San
(Paradise Cay)
Francisco Bay and increase the tax by 25 percent: Under the
ballot measure, the tax would increase from $1,200 on each
original lot to $1,500. Voters in Paradise Cay first agreed to the
dredging tax in 1992.
Up to $100 per
living unit in fiscal
2016-17 and as
much as $11 per
living unit each
year thereafter.
$1,500 annually
per original lots
located within the
Service Area
(increase from
$1200)
Information from: htto://www.marincountv.orQ/deDts/ry/election-info/election-schedule/naee-data/tabs-collection/2016/nov-8/measure/list
In effect
2/3 Needed
until
repealed
Passed
72.04%
10 years
2/3 Needed
Passed
87.18%
Page 3 of 4
ATTACHMENT C
LIST OF LOCAL SALES TAX EXEMPTION BILLS
In 1987, the Legislature imposed a maximum combined rate of 1% on all transactions
and use taxes (TUT) within any county. That rate was incrementally increased - first to
1.5% in 1990 and then to 2% in 2003. The TUT law authorizes the adoption of local add-
on rates to the combined state and local sales tax rate. Under existing law, cities and
counties may impose a TUT for general or special purposes, subject to voter approval,
provided that the combined countywide rate of tax does not exceed 2%.
Therefore, when a city or district imposes a transactions and use tax, the increased tax
rate counts toward the county's cap, which means that the county is restricted in its ability
to raise revenues on a countywide basis.
Currently the Counties of Alameda, Contra Costa, Los Angeles, Monterey, and San
Mateo have reached the 2% limit and have sought exemptions. The Counties of Marin,
San Diego, and Sonoma are near the 2% limit.
These taxes may be imposed either directly by the city or county, or through a special
purpose entity established by the city or county. Counties may also create a transportation
authority to impose district taxes under the Public Utilities Code or designate a
transportation planning agency to impose a district tax, subject to the applicable voter
approval requirements.
According to the Board of Equalization, there are 202 local jurisdictions, including cities,
counties, and special purpose entities, that impose a district tax for general or specific
purposes. Of the 202 jurisdictions, 48 are county -imposed taxes and 154 are city -imposed
taxes. Of the 48 county -imposed taxes, 44 are imposed for special purposes. Of the 154
city -imposed taxes, 124 are general-purpose taxes and 30 are special purpose taxes.
The Legislature has previously granted exemptions to the 2% statutory cap for
transactions and use taxes to primarily support countywide transportation programs.
Governor Brown has preferred to sign these bills into law rather than exemptions for
general purposes.
Below is a list of bills that have been considered by the legislature:
1. AB 1665 (Bonilla), Chapter 45, Statutes of 2016, removes the existing authority
granted to Alameda County and Contra Costa County to impose an additional
transaction and use tax (TUT), subject to voter approval, and instead grants Contra
Costa County's existing authority to the Contra Costa Transportation Authority
(CCTA).
The bill was chaptered in July allowing CCTA time to place Measure X on the
November 2016 ballot. It failed by receiving only 62% of the vote.
Page 1 of 3
ATTACHMENT C
2. SB 705 (Hill), Chapter 579, Statutes of 2015, authorizes Monterey and San Mateo
Counties to impose a countywide sales tax for transportation purposes (1/8% and
1/2% respectively) that would, in combination with all other locally imposed sales
tax, exceed the 2% tax rate cap if certain requirements are met.
Monterey used its exemption to place a ballot on the November 2016 ballot. San
Mateo intends to do so in November of 2018.
3. AB 464 (Mullin) would have increased the maximum combined rate of all
transactions and use taxes (district taxes) that may be levied by authorized entities
within a county from 2% to 3%. This bill was vetoed by the Governor.
In his veto message, Governor Brown stated: "Although I have approved raising
the limit for individual counties, I am reluctant to approve this measure in view
of all the taxes being discussed and proposed for the 2016 ballot."
4. AB 1324 (Skinner), Chapter 795, Statutes of 2014, allows the City of El Cerrito to
adopt an ordinance to impose a transactions and use tax not to exceed 0.5% for
general purposes that would, in combination with other taxes, exceed the statutory
limit of 2%. According to the author, "The City of El Cerrito was hit particularly hard
by the recession and the local economy is still struggling to recover. As a result, local
property values have declined. The sluggish economy, diminished revenues from
reduced property assessments, the loss of redevelopment, store relocations, and other
factors are forcing the city to reduce services."
The Governor, sympathetic to the City's fiscal emergency, signed the bill. This bill
has been the exception to the types of bills that have been signed.
The City subsequently placed Measure R on the November 2014 ballot to
"protect/maintain City services, including fire prevention/ emergency services;
emergency response times; neighborhood police patrols; firefighter/ police staffing;
crime prevention/investigation resources; after-school programs; library hours/
programs; senior services; open space, parks, paths/ playfields; other general City
services."
5. AB 210 (Weickowski), Chapter 194, Statutes of 2013, extends the current authority
for Alameda County to adopt an ordinance imposing a transaction and use tax from
January 1, 2014, to December 31, 2020, and allows Contra Costa County to adopt an
ordinance imposing a transactions and use tax in the same manner as Alameda
County. The bill, which was sponsored by the Alameda County Transportation
Commission and supported by the Contra Costa County Transportation Authority,
was authored for purposes of placing a transportation sales tax measure on each
county's respective ballot. Alameda placed Measure BB on the November 2014
ballot, which acquired was approved with over 70% of the vote.
Page 2 of 3
ATTACHMENT C
6. SB 33 (Wolk) of 2013 would have allowed the County of Sonoma or any city within
the County to impose a transactions and use tax for general purposes, and allow
Sonoma County, any city within Sonoma County, or the Sonoma County
Transportation Authority to impose a transactions and use tax for a specific purpose
including, but not limited to the support of transportation and road maintenance
programs and library services by up to 0.5% that would, in combination with all other
transaction and use taxes, exceed the 2% statutory limit. The bill failed passage.
7. AB 1086 (Weickowski), Chapter 327, Statutes of 2011, allows Alameda County to
adopt an ordinance, until January 1, 2014, to impose a transactions and use tax not to
exceed 0.5% for the support of countywide transportation programs that would, in
combination with other taxes, exceed the statutory limit of 2%.
8. AB 2321 (Feuer), Chapter 302, Statutes of 2008, amends the Los Angeles County
Metropolitan Transportation Authority (Metro) existing authority to adopt a .5%
transactions and use tax (sales tax) in Los Angeles County by eliminating outdated
deadlines for specific projects and programs and extending the period in which the
tax can be collected from six and one-half years to 30 years, subject to a two-thirds
approval of local voters.
This bill allowed Metro to place Measure R on the November 2008 ballot. The
measure passed with 67% of the vote.
9. SB 314 (Murray), Chapter 785, Statutes of 2003, enacts provisions originally
authorizing the .5% sales tax, for no more than six and one-half years, for specific
transportation projects and programs. That sales tax was never imposed. Metro now
believes that the November 2008 ballot may be a viable time to place this sales tax
proposal, amended to reflect the changes contemplated in this bill, before Los
Angeles voters. This bill was superseded by AB 2321.
Page 3 of 3
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AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT -
AGENDA TOPIC]
Agenda Item #
Date of Meeting: 1/17/2017
From: Bill Guerin
Department: Department of Public Works
Date: 1/10/2017
Topic: SALES TAX EXEMPTION TO EXISTING SALES TAX CAP
Subject: RESOLUTION SUPPORTING LEGISLATION TO EXEMPT THE EXISTING SALES
TAX CAP TO ACCOMMODATE UP TO 0.5% FOR THE TRANSPORTATION AUTHORITY OF
MARIN.
Type: ® Resolution ❑ Ordinance
❑ Professional Services Agreement ❑ Other: Staff Report
® Finance Director
Remarks:
® City Attorney
Remarks: LG -Approved 1/10/17.
® Author, review and accept City Attorney / Finance changes
Remarks:
® City Manager
Remarks:
Esther Beirne
From: Lauren Crandell
Sent: Tuesday, January 17, 2017 4:36 PM
To: Esther Beirne; Lindsay Lara
Subject: Sales Tax Correspondence
Just received the following via Romulus:
Hi, I believe you're proposing raising the Sales Tax again. Enough is enough. We should be getting the money from our
property taxes not continually raising the Sales Tax. I also see the Smart Tax coming along any day looking for more
money. I refuse to shop in downtown San Rafael because of the extra sales tax being higher. We just (I voted NO)
approved all these other taxes that were on the November Ballot. It just goes on and on. Thank you for taking the time
to read this email. Sincerely Noreen Kennedy
Thanks,
Lauren Crandell I City of San Rafael
ADMINISTRATIVE ASSISTANT TO THE CITY MANAGER
14005 h Avenue Room 203
San Rafael, CA 94901
415 485.3056
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Please Note: City Hall and most departments/facilities will be closed from December 26 through January 2.
Esther Beirne
From: Lauren Crandell on behalf of City Manager
Sent: Tuesday, January 17, 2017 3:58 PM
To: Esther Beirne; Lindsay Lara
Subject: FW: Message for the City Council
From: Marin Info
Sent: Tuesday, January 17, 2017 10:55 AM
To: City Manager
Subject: Message for the City Council
Could you please forward the following message to each of the councilors ?
Thankyou in anticipation:
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San Rafael's SALES TAX at 9% is too high and disproportionately punishes the poor.
We don't need it to go to 9.5%.
$500 million for TAM over 20 years is RIDICULOUSLY HIGH for such a small county !
Please take this opportunity to MAKE A STAND.
httD://marininfo.ora/Marin%20Transit/Sales Tax Cap Exemption.html
MI.
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