Item 9.4
State Legislation:
Hear a Report on Assembly Bill 2484: San Diego Metropolitan Transit System: Transactions and Use Tax: Voter Initiatives (Alvarez) and Provide Direction to Staff on City Position Item 9.4 | AB 2484 (Alvarez)
Background
• The San Diego Metropolitan Transit System (MTS) is San Diego's regional public transportation provider serving approximately three million people across ten cities and portions of unincorporated San Diego County.
• MTS logs 80 million annual passenger trips or 250,000 trips each weekday.
• MTS receives funding from various federal, state, and local sources. The primary sources are the California Transportation Development Act (TDA), Federal Transit Administration,
TransNet funds (local sales tax) and fares.
• Since the COVID-19 pandemic, MTS has recovered more than 95 percent of its pre-COVID ridership and now ranks among the top transit systems nationwide for ridership recovery.
• Facing a financial cliff of over $120 million per year beginning in 2030.
Amend MTS’s enabling statutes related to transactions and use tax authority to:
Assembly Bill (AB) 2484
Item 8.4 | Carrier Johnson + Culture Agreementt
Exclude the voter-approved tax rate from being considered for purposes of the combined rate limit of two percent (2%). This is whether it’s an MTS –led or voter initiative.
Confirm the imposition of a voter-approved retail transactions and use tax of up to one-half of one percent (0.5%) dedicated exclusively to transportation and public transit purposes may also be imposed by a qualified voter initiative.
Item 9.4 | AB 2484 (Alvarez)
Sales Tax Rates
County/CityCalifornia
Rate Jurisdiction Purpose/Authority
3.9375% State (General Fund) State general purposes
1.0625% Local Revenue Fund (2011
Realignment)
Local governments to fund
local public safety services
0.50% State (1991 Realignment) Local governments to fund health and welfare programs
0.50% State (Proposition 172 –
1993)
Local governments to fund
public safety services
1.25% Local (City/County)
1.00 % City and County
0.25% County
City and county general
operations Dedicated to
county transportation
purposes
7.25% Total Statewide Rate
Rate Jurisdiction Purpose/Authority
0.50% San Diego County
Transnet
0.50% City of Chula Vista-
Measure A
0.50% City of Chula Vista-
Measure P
1.50% Total District taxes
8.75% Total Chula Vista Sales Tax
Legislative Platform
Item 9.4 | AB 2484 (Alvarez)
• Legislative Platform establishes the following guiding principle and position:
o Promote Fiscal Responsibility: Support efforts that preserve and promote the City’s revenue base.
o Support efforts to protect dedicated transportation and public transit funds.
Recommended Action
Hear report and provide direction to staff on City position on Assembly Bill 2484: San Diego Metropolitan Transit System:
transactions and use tax: voter initiatives. Possible positions include support, support if amended, oppose, oppose unless amended, or no position.