AMENDED IN ASSEMBLY APRIL 30, 2026
AMENDED IN ASSEMBLY APRIL 21, 2026
california legislature—2025–26 regular session
ASSEMBLY BILL No. 1768
Introduced by Assembly Member Bryan
(Coauthor: Assembly Member Wicks)
(Principal coauthor: Assembly Member McKinnor)
(Coauthors: Assembly Members Wicks and Zbur)
(Coauthors: Senators Arreguín and Durazo)
February 9, 2026
An act to add and repeal Chapter 2.5 (commencing with Section 7286.03) and Chapter 3.18 (commencing with Section 7287.22) of Part
1.7 of Division 2 of the Revenue and Taxation Code, relating to taxation. taxation, and declaring the urgency thereof, to take effect immediately. legislative counsel’s digest
AB 1768, as amended, Bryan. Transactions and use taxes: Counties of Contra Costa and Los Angeles.
Existing law authorizes various local governmental entities, 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 tax es that may be imposed in accordance with that law in any county not exceed 2%.
This bill would authorize, until December 31, 2031, the County of Los Angeles, by an ordinance adopted by the county , to le vy a tax pursuant to the Transactions and Use Tax Law at a rate not to e xceed
97 0.5% for general and special purposes, subject to v oter approval, as specified. The bill would also authorize, until December 31, 2031, the County of Contra Costa, by an ordinance adopted by the county, to levy a tax pursuant to the Transactions and Use Tax Law at a rate not to exceed 0.625% for general or specific purposes, subject to v oter approval, as specified. The bill would authorize those taxes to exceed the 2% limit described above.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Contra Costa and Los Angeles.
This bill would declar e that it is to tak e effect immediately as an urgency statute.
Vote: majority 2⁄3. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Chapter 2.5 (commencing with Section 7286.03) line 2 is added to P art 1.7 of Di vision 2 of the Revenue and Taxation line 3 Code, to read:
line 4
line 5 Chapter 2.5. County of Los Angeles Transactions and line 6 Use Tax
line 7
line 8 7286.03. (a) Notwithstanding any other la w, the County of line 9 Los Angeles may impose a transactions and use tax for general or line 10 specific purposes to support countywide programs at a rate of no line 11 more than 0.5 percent that w ould, in combination with all tax es line 12 imposed in accordance with the Transactions and Use Tax Law line 13 (Part 1.6 (commencing with Section 7251)), e xceed the limit line 14 established in Section 7251.1, if all of the following requirements line 15 are met:
line 16 (1) The county adopts an ordinance proposing the transactions line 17 and use tax by any applicable voting approval requirement. line 18 (2) The ordinance proposing the transactions and use tax is line 19 submitted to the electorate and is appro ved by the v oters voting line 20 on the ordinance by the applicable v oting approval requirement line 21 in accordance with Article XIII C of the California Constitution. 97 — 2 — AB 1768
line 1 (3) The transactions and use tax conforms to the Transactions line 2 and Use Tax Law (Part 1.6 (commencing with Section 7251)), line 3 other than Section 7251.1.
line 4 (b) Notwithstanding Section 7251.1, a transactions and use tax line 5 rate imposed pursuant to subdi vision (a) shall not be considered line 6 for purposes of the combined rate limitation established by Section line 7 7251.1.
line 8 (c) If, as of December 31, 2031, an ordinance proposing a line 9 transactions and use tax has not been appro ved in the County of line 10 Los Angeles as authorized by subdi vision (a), this chapter shall line 11 be repealed.
line 12 SEC. 2. Chapter 3.18 (commencing with Section 7287.22) is line 13 added to Part 1.7 of Division 2 of the Revenue and Taxation Code, line 14 to read:
line 15
line 16 Chapter 3.18. County of Contra Costa Transactions line 17 and Use Tax
line 18
line 19 7287.22. (a) Notwithstanding any other la w, the County of line 20 Contra Costa, by ordinance, may impose a transactions and use line 21 tax for general or specific purposes at a rate of no more than 0.625 line 22 percent that would, in combination with all taxes imposed pursuant line 23 to P art 1.6 (commencing with Section 7251), e xceed the limit line 24 established in Section 7251.1, if all of the following requirements line 25 are met:
line 26 (1) The board of supervisors of the County of Contra Costa line 27 adopts an ordinance proposing the transactions and use tax by any line 28 applicable voting approval requirement.
line 29 (2) The ordinance proposing the transactions and use tax is line 30 submitted to the electorate and is appro ved by the v oters voting line 31 on the ordinance in accordance with the California Constitution. line 32 (3) The transactions and use tax conforms to the Transactions line 33 and Use Tax Law (Part 1.6 (commencing with Section 7251)), line 34 other than Section 7251.1.
line 35 (b) Notwithstanding Section 7251.1, a transactions and use tax line 36 rate imposed pursuant to subdi vision (a) shall not be considered line 37 for purposes of the combined rate limit established by Section line 38 7251.1.
line 39 (c) If, as of December 31, 2031, an ordinance proposing a line 40 transactions and use tax has not been appro ved in the County of 97 AB 1768 — 3 —
line 1 Contra Costa as authorized by subdi vision (a), this chapter shall line 2 be repealed.
line 3 SEC. 3. The Legislature finds and declares that a special statute line 4 is necessary and that a general statute cannot be made applicable line 5 within the meaning of Section 16 of Article IV of the California line 6 Constitution because of the unique fiscal pressures being line 7 experienced in the Counties of Contra Costa and Los Angeles in line 8 providing essential programs that ha ve been caused, at least in line 9 part, by federal funding cuts.
line 10 SEC. 4. This act is an ur gency statute necessary for the line 11 immediate preservation of the public peace, health, or safety within line 12 the meaning of Article IV of the California Constitution and shall line 13 go into immediate effect. The facts constituting the necessity are:
line 14 The County of Los Angeles has placed a 0.5 percent tax on the line 15 ballot for June 2, 2026, ballot, and the County of Contr a Costa line 16 has placed a 0.625 percent tax on the ballot for June 2, 2026, and line 17 to accommodate that, it is necessary that this act go into immediate line 18 effect.
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97 — 4 — AB 1768