COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

 

DATE:

April 1, 2003

BOARD MEETING DATE:

April 8, 2003

 

TO:

Honorable Board of Supervisors

FROM:

John Maltbie, County Manager

SUBJECT:

Resolution in support of ACA 7 (Dutra), Transportation funding from sales and use tax

 

Recommendation

Adopt a resolution in support of ACA 7 (Dutra) regarding transportation funding from sales and use tax.

 

Background

The California Constitution conditions the imposition of a special tax by a city, county, or special district upon the approval of 2/3 of the voters of the city, county, or special district voting on that tax, and prohibits these entities from imposing an ad valorem tax on real property or a transactions or sales tax on the sale of real property. Existing statutory provisions and provisions in the California Constitution either impose or authorize the imposition of state or local sales and use taxes upon the gross receipts from the sale within the taxing jurisdiction of, or the storage, use, or other consumption in this jurisdiction of, tangible personal property.

This measure would authorize a local transportation agency and a regional transportation agency, as defined, notwithstanding any other provision of the California Constitution, to impose an additional sales and use tax for a period of 20 to 30 years, as specified, at a rate of 0.5% exclusively for transportation purposes within the jurisdiction of the local or regional transportation agency if the additional tax is approved by 55% of the voters of the jurisdiction voting on the proposition to impose the tax.

 

Discussion

The Metropolitan Transportation Commission Final 2003 Legislative Program indicates MTC's priority 1 support for an appropriate measure to reduce the 2/3rds vote requirement for transportation taxes. According to the MTC Program, "Currently, 17 counties representing approximately 85% of the state's population have passed local sales tax measures. Of these, 14 will face reauthorization within the next 10 years. In the Bay Area, Marin, Sonoma and, most recently, Solano County all failed in their efforts to enact sales taxes with 2/3rds majority. Given the scarcity of new state or federal funds available for transportation in the near future, it is essential that local governments be given greater flexibility to raise their own funds."

San Mateo County's current half-cent sales tax for transportation will expire in 2008. Efforts to reauthorize the transportation tax have begun.

C/CAG is in support of ACA 7.

A similar bill, SCA 2 (Torlakson) would reduce the 2/3rds vote for transportation related sales tax to a simple majority. It would also require 25% of such funds to be used for smart growth planning. C/CAG and several other transportation groups have asked that the smart growth provision be amended. CSAC has taken an oppose-unless-amended position for SCA 2. While CSAC supports the reduction from 2/3rds to a simple majority for transportation related sales tax increases, it opposes the restriction that 25% of those funds be dedicated to smart growth planning. CSAC opines that use of the funds be left to the discretion of local governments.

The Legislative Committee recommends support for ACA 7 (Dutra).

 

Vision Alignment

Support of ACA 7 (Dutra) furthers the County's commitment to redesign our urban environment to increase vitality, expand variety and reduce congestion and furthers Goal #10 and 12 to promote public transportation and land use decisions as they relate to transportation.

 

Fiscal Impact

With the potential reauthorization of San Mateo County's half-cent sales tax for transportation, the impact of this legislation could be significant.