LEGAL REQUIREMENTS MATRIX FOR REVENUE ENHANCEMENT POSSIBILITIES

 

LEGAL AUTHORITY

WHO VOTES

50% OR 2/3 REQUIREMENT

WHO IS TAX IMPOSED ON?

HOW COLLECTED?

BOARD VOTING REQUIREMENT

TIMELINE OF ELECTION

UTILITY USER TAX

Revenue and Taxation Code 7284.2

County-wide electorate (Article XIIIC, Sec. 2 of Ca. Const.; GC 53722, 53723)

If imposed for general gov’t purposes-majority vote required; If imposed for specific governmental purposes – 2/3 vote required (GC 53722-53723; Cal. Const., Art. XIIIC, 2(b), (d))

Every person or entity using gas, water, sewer, telephone, telegraph and cable television services in the unincorporated areas

Collected by utility providers and remitted periodically to the County

If general tax, 2/3 BOS approval requirement (GC 53724 (b)); If special tax, majority vote of the Board

Board adopts ordinance or resolution calling for election of ballot measure 88 days prior to election; For general tax, must be placed on “regularly scheduled general election for members of …body.”

SALES TAX

(Existing rate is 9.25%, of which 1% is a County tax; this may be increased by .25 increments up to a total of 2%)

Revenue and Taxation Code 7285 (Bradley-Burns Act)

County-wide electorate (Article XIIIC, Sec. 2 of Ca. Const.; GC 53722, 53723)

If levied, increased, or extended for general purposes, majority vote of County’s qualified voters. (Cal. R&T Code 7285). If for specific purpose, 2/3 vote of County’s qualified voters. (Cal. R&T Code 7285.5).

Individual consumers ultimately pay.

Collected by business as part of the transaction. Program administered by the State Board of Equalization.

If general tax, 2/3 BOS approval requirement (GC 53724(b)); If special tax, majority vote of the Board. Cal. R&T Code 7285 and 7285(a)(1).

Board adopts ordinance or resolution calling for election of ballot measure 88 days prior to election; For general tax, must be placed on “regularly scheduled general election for members of …body.”

BUSINESS LICENSE TAX

Revenue and Taxation Code 7284

County-wide electorate (Article XIIIC, Sec. 2 of Ca. Const.; GC 53722, 53723)

If imposed for general gov’t purposes-majority vote required; If imposed for specific governmental purposes – 2/3 vote required (GC 53722-53723; Cal. Const., Art. XIIIC, 2(b), (d))

Business operators in unincorporated areas; may be a flat annual amount or a percentage of gross revenues

Collected by County Treasurer

If general tax, 2/3 BOS approval requirement (GC 53724(b)); If special tax, majority vote of the Board

Board adopts ordinance or resolution calling for election of ballot measure 88 days prior to election; For general tax, must be placed on “regularly scheduled general election for members of …body.”

TRANSIENT OCCUPANCY TAX

(Increase of existing rate)

Revenue and Taxation Code 7280

County-wide electorate (Article XIIIC, Sec. 2 of Ca. Const.; GC 53722, 53723)

If imposed for general gov’t purposes-majority vote required; If imposed for specific gov’t purposes – 2/3 vote required (GC 53722-53723; Cal. Const., Art. XIIIC, 2(b), (d))

Lodgers as a tax on the privilege of occupying rooms in hotels, inns, etc. located in unincorporated areas (for stays of 30 days or less)

Collected by hotel and transmitted, periodically, to the County.

If general tax, 2/3 BOS approval requirement (GC 53724); If special tax, majority vote of the Board

Board adopts ordinance or resolution calling for election of ballot measure 88 days prior to election; For general tax, must be placed on “regularly scheduled general election for members of …body.”

FRANCHISE FEES

Depends on nature of franchise (garbage collection, cable, etc.)

No vote, fee negotiated in contract w/ provider

Not applicable

Not applicable

Collected by service provider

Majority to approve contract with provider

Not applicable