Palo Alto City Council
September 16, 2024

City of Palo Alto
Sales Tax Digest Summary
Collections through May 2024
Sales January through March 2024 (2024Q1)

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California Overview
For the year ending in the first quarter of 2024, cash receipts decreased 1.2% statewide and decreased

3.3% in S.F. Bay Area. However, when adjusted for non‐period related payments, the overall economic sales tax activity for the year ending in first quarter of 2024 decreased by 3.8% statewide and decreased by 3.5% in S.F. Bay Area.

City of Palo Alto
For the benchmark year ending in the first quarter of 2024, sales tax cash receipts for the city increased by  8.9%  from  the  prior  year.  However,  when  adjusted  for  non‐period  related  payments,  the  overall economic sales tax activity in Palo Alto for the year ending in first quarter of 2024 increased by 7.8%. The most significant reasons for Palo Alto’s increase during this period were the restaurants and new auto sales segments, respectively. Restaurants increased by 7.7%, which comprises 17.3% of the total sales tax for the city. New auto sales for the same period increased by 24.9%, which comprises 16.0% of the total sales tax.

Same quarter sales tax cash receipts increased by 0.7% in California from Q1 2023 to Q1 2024. The Palo Alto citywide sales tax cash receipts increased by 2.4% over the Q1 2023 to Q1 2024 period. Key reasons for  the  Palo  Alto  increase  during  this  period  were:  1)  restaurants  increased  by  7.4%,  which  comprises

16.3% of the total sales tax for the city, and 2) new auto sales increased from Q1 2023 to Q1 2024 by

46.4%,  which  comprises  16.2%  of  the  total  sales  tax  for  the  city.  According  to  the  California  New  Car Dealers Association, 2024 Q1 California statewide new auto registrations reported a slight increase (0.7%) in new auto registrations from 428,561 in Q1 2023 to 431,638 in Q1 2024. The overall statewide new auto registrations are predicted to grow slightly (less 3%) in the remainder of the 2024 calendar year.

Regional Overview
The  first  chart  on  page  two  shows  adjusted  economic  benchmark  year  amounts,  which  means  that  it shows the year ended first quarter of 2024 compared to the year ended first quarter of 2023 (benchmark years  are  rolling  annual  comparisons  through  the  current  quarter). The  growth  rates  are  different between  the  state  and  Palo  Alto  because  the  sales  tax  from  businesses  in  Palo  Alto  performed  better overall than the statewide average.

City of Palo Alto

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$‐
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Quarterly Benchmark Year
% of Total / % Change Palo  Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South  Coast Inland  Empire North  Coast General Retail 26.0 / 1.9 28.9  / ‐1.4 26.0  / ‐4.1 28.2  / ‐2.2 37.8  / 0.4 27.1  / 0.1 34.7  / ‐5.9 27.3  / 3.2 Food Products 17.3 / 6.6 21.2  / ‐0.6 22.4  / ‐0.2 16.8  / ‐1.7 14.6  / ‐4.1 23.3  / 1.0 17.9  / ‐9.0 18.3  / 1.5 Transportation 19.7 / 17.8 23.3  / ‐7.5 19.4  / ‐4.8 27.0  / ‐4.7 22.3  / ‐8.2 24.2  / ‐6.3 23.6  / ‐19.1 28.7  / ‐5.1 Business to Business 33.5 / 6.1 15.8  / ‐6.3 21.2  / ‐2.9 14.2  / ‐7.1 14.7  / ‐7.3 15.4  / ‐6.0 10.6  / ‐16.9 10.4  / 0.7 Misc/Other 3.5 / 26.7 10.8  / ‐3.9 11.0  / ‐7.4 13.7  / ‐4.5 10.5  / ‐7.7 10.0  / ‐0.3 13.2  / ‐9.2 15.3  / ‐1.1 Total 100.0  / 7.8 100.0  / ‐3.8 100.0  / ‐3.5 100.0  / ‐3.9 100.0  / ‐4.3 100.0  / ‐2.3 100.0  / ‐11.5 100.0  / ‐0.5 Palo Alto California
Statewide S.F. Bay Area Sacramento
Valley Central Valley South  Coast Inland  Empire North  Coast Largest Segment Leasing Restaurants Restaurants Auto Sales ‐ New
Miscellaneous
Retail Restaurants Miscellaneous
Retail Restaurants
% of Total / % Change 20.9 / 5.3 15.3  / 0.7 16.7  / 0.8 11.6  / ‐0.2 15.9  / 13.5 17.2  / 2.1 17.5  / ‐0.9 11.7  / 2.9 2nd Largest Segment Auto Sales ‐
New
Auto Sales ‐
New
Miscellaneous
Retail Restaurants Department
Stores
Auto Sales ‐
New Restaurants Department
Stores
% of Total / % Change 16.0 / 24.9 11.1  / ‐5.5 9.7 / ‐1.2 11.6  / ‐0.9 10.9  / ‐5.5 12.3  / ‐5.7 11.6  / ‐6.3 11.3  / 17.5 3rd Largest Segment Restaurants Miscellaneous
Retail
Auto Sales ‐
New
Miscellaneous
Retail Restaurants Miscellaneous
Retail
Auto Sales ‐
New
Auto Sales ‐
New
% of Total / % Change 15.6 / 7.7 10.8  / 6.0 9.4  / ‐3.5 11.0  / 1.0 9.8  / ‐2.7 9.0  / 9.4 10.9 / ‐11.6 11.1 / ‐1.2 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 1st Quarter 2024 ECONOMIC SEGMENT ANALYSIS  FOR YEAR ENDED 1st Quarter 2024 Regional Overview Chart (Economic)
BENCHMARK YEAR 2024Q1 COMPARED TO BENCHMARK YEAR 2023Q1

Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments)

City of Palo Alto

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Leasing

20.9%
Auto Sales ‐ New

16.0%
Restaurants

15.7%
Office Equipment

6.8%Apparel Stores

6.6%
All Other

34.0%
Net Pools & Adjustments

21.4%
Net Cash Receipts for Benchmark Year first Quarter 2024:  $37,042,335

*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2024Q1 BMY is sum of 2024 Q1, 2023 Q4, 2023 Q3, 2023 Q2)

County Pool Results
The California sales tax system is referred to as a ‘sales and use tax’ system which covers both sales tax and ‘use tax’. The County Pool revenues largely reflect use tax from qualifying transactions that do not involve a California based point of sale. Businesses report their use tax quarterly based on business activity conducted  throughout  the  county.  The  County  Pool  is  distributed  each  quarter  based  upon  a  formula where the jurisdiction’s quarterly percentage is based upon its total sales tax receipts for the quarter as a percentage of all sales tax receipts for all jurisdictions within the county. Thus, if local business activity (sales tax receipts) within Palo Alto increases in the quarter relative to the rest of the county, then the Palo Alto County pool percentage also will increase for the quarter compared to the rest of the county.

The total county pool is multiplied by the city’s quarterly percentage to determine the jurisdiction share each quarter.

In the first quarter of 2024, cash receipts for the overall County Pool increased by 1.9% from the same quarter in the prior year. The City’s share of the County Pool was unchanged from 6.0% to 6.0%. The City’s revenues from the County Pool increased from $1,499,631 in 2023Q1 to $1,523,986 in 2024Q1.

City of Palo Alto

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Anderson Honda Louis  Vuitton Shreve  & Co.

Apple Stores Macy's  Department Store Stanford  Health Care Archer Aviation Magnussen's  Toyota Tesla
Arco Am/Pm Mini Marts Neiman  Marcus Tesla  Lease Trust Audi Palo Alto Nordstrom  Department Store Tiffany  & Company Bloomingdale's Richemont Union  76 Service Stations
Brilliant Earth Rivian  Automotive Varian  Medical Systems Hermes Shell  Service Stations Volvo  Cars Palo Alto
HP Enterprise Services
TOP 25 SALES/USE TAX CONTRIBUTORS

The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and  represents  the  year  ended  first  quarter  of  2024.  The  Top  25  Sales/Use  Tax  contributors  generate

61.2% of Palo Alto’s total sales and use tax revenue.

City of Palo Alto

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$‐
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Benchmark Year 2024Q1 Benchmark Year 2023Q1
Sales Tax from Largest Non‐Confidential Sales Tax Segments (Economic)

City of Palo Alto

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Economic  Ca te gory  %  2024Q1 2023Q4 2023Q3 2023Q2 2023Q1 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 Business  To Bus i nes s 28.7% 2,373,414 2,262,034 2,619,833 2,439,519 2,350,567 2,571,178 2,194,817 2,095,020 2,031,199 2,136,501 1,689,561 Mi s cel l a neous /Other 20.9% 1,727,252 1,951,428 1,870,170 1,546,096 1,302,322 1,517,005 1,597,816 1,724, 861 1,701,538 1,687,189 1,812,731 General  Reta i l 21.0% 1,739,261 2,315,882 1,834,297 2,017,885 1,640,927 2,305,038 1,802,777 1,920,316 1,639,417 2,282,253 1,687,461 Food  Products 15.6% 1,288,207 1,348,051 1,277,173 1,349,926 1,195, 458 1,260,287 1,230,824 1,227,240 1,018,577 1,083,309 999,729 Subtotal  Economi c  (Local  Bus i nes s ) 86.2% 7,128,134 7,877,395 7,601,473 7,353,426 6,489,274 7,653,508 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 Net  Pools  & Adjus tments 13.8% 1,143,798 1,867,172 1,986,175 2,084,763 1, 586,938 1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 Total  Ca s h Recei pts 100.0% 8,271,932 9,744,567 9,587,647 9,438,189 8,076,212 9,589,088 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 Economic  Segment  %  2024Q1 2023Q4 2023Q3 2023Q2 2023Q1 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 Mi s cel l a neous /Other 49.7% 4,114,784 4,409,850 4,635,983 4,197,978 3,818,384 4,490,992 4,087,158 4,008, 008 3,949,786 3,969,954 3,752,178 Res ta ura nts 14.1% 1,162,863 1,214,598 1,154,189 1,214,502 1,073,621 1,114,637 1,102,248 1,093,944 902,707 947,771 884,911 M isc ellaneous  Reta i l 5.9% 489,040 689,939 480,649 512,077 448,322 545,797 381,616 479,710 432,956 679,381 412,016 Apparel  Stores 5.3% 440,402 586,863 478,973 509,894 423,470 538,573 435,730 495,508 392,724 540,782 406,274 Department  Stores 5.0% 411,345 549,893 435,388 492,374 356,626 533,032 423,601 454,349 367,144 525,295 388,703 Service  Sta ti ons 2.4% 198,584 214,900 229,911 222,029 192,723 215,640 233,387 250,715 191,755 190,610 181,460 Food  Ma rkets 1.3% 107,031 112,372 103,251 111,465 101,978 116,810 99,811 104,253 91,634 108,203 90,773 Business  Servi ces 2.5% 204,085 98,980 83,130 93,106 74,150 98,027 62,683 80,950 62,025 227,256 73,169 Subtotal  Economi c  (Local  Bus i nes s ) 86.2% 7,128,134 7,877,395 7,601,473 7,353,426 6,489,274 7,653,508 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 Net  Pools  & Adjus tments 13.8% 1,143,798 1,867,172 1,986,175 2,084,763 1, 586,938 1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 Total  Ca s h Recei pts 100.0% 8,271,932 9,744,567 9,587,647 9,438,189 8,076,212 9,589,088 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990

Historical Analysis by Calendar Quarter

The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount.

City of Palo Alto

www.avenuinsights.com (800) 800-8181 Page 7 Economi c  Ca te gory  %  2024Q1 2023Q1 2022Q1 2021Q1 2020Q1 2019Q1 2018Q1 2017Q1 2016Q1 2015Q1 Business  To Bus i nes s 27.6% 10,222,577 9,631,298 7,896,075 7,611,571 8,308,564 6,943,096 6,184,439 5,317,252 4,919,417 4,159,698 Mi s ce l l a ne ous /Othe r 19.2% 7,095,324 5,953,026 6,558,902 5,918,263 6,876,494 7,953,725 6,545,872 6,320,172 5,805,795 5,357,777 General  Re ta i l 21.3% 7,897,514 7,658,078 7,381,386 4,346,606 7,343,919 8,114,526 8,396,707 8,408,295 8,036,424 8,083,498 Food  Products 14.3% 5,290,982 4,965,161 4,063,916 2,409,724 4,766,327 4,866,749 4,739,636 4,604,281 4,550,695 4,267,423 Subtotal  Economic  (Local  Bus i ne s s ) 82.4% 30,506,397 28,207,563 25,900,278 20,286,163 27,295,304 27,878,096 25,866,655 24,650,000 23,312,331 21,868,395 Net  Pools  & Adjus tments 17.6% 6,535,938 5,799,633 5,452,388 6,194,515 5,517,214 7,279,063 2,976,828 4,680,293 4,040,097 3,795,270 Tota l 100.0% 37,042,335 34,007,195 31,352,667 26,480,678 32,812,518 35,157,159 28,843,483 29,330,293 27,352,428 25,663,665

Economi c  Segment  %  2024Q1 2023Q1 2022Q1 2021Q1 2020Q1 2019Q1 2018Q1 2017Q1 2016Q1 2015Q1 Mi s ce l l a ne ous /Othe r 48.3% 17,879,880 16,605,550 15,180,847 14,226,962 16,180,511 15,895,019 14,279,387 12,726,704 11,702,670 10,658,693 Res ta ura nts 12.9% 4,776,166 4,435,671 3,583,725 1,996,161 4,208,893 4,284,982 4,123,571 4,004,911 3,958,600 3,713,187 M isc ellaneous  Reta i l 5.8% 2,161,598 1,816,795 2,049,777 1,278,010 1,558,511 1,658,409 1,721,414 2,276,167 1,673,995 1,514,666 Apparel  Stores 5.5% 2,021,082 1,899,828 1,737,094 964,830 1,812,400 2,018,832 1,756,806 1,678,614 1,629,174 1,659,577 Department  Stores 5.1% 1,889,000 1,771,222 1,665,905 769,134 1,684,162 1,932,093 2,079,948 2,100,526 2,298,559 2,395,177 Service  Sta ti ons 2.3% 865,218 899,477 721,214 406,403 687,514 693,763 629,651 573,919 618,471 732,864 Business  Se rvi ces 1.3% 474,673 355,787 581,268 321,146 718,091 940,138 765,322 786,093 925,420 711,989 Food  Ma rkets 1.2% 438,779 423,233 380,450 323,518 445,221 454,861 510,556 503,066 505,442 482,242 Subtotal  Economic  (Local  Bus i ne s s ) 82.4% 30,506,397 28,207,563 25,900,278 20,286,163 27,295,304 27,878,096 25,866,655 24,650,000 23,312,331 21,868,395 Net  Pools  & Adjus tments 17.6% 6,535,938 5,799,633 5,452,388 6,194,515 5,517,214 7,279,063 2,976,828 4,680,293 4,040,097 3,795,270 Tota l 100.0% 37,042,335 34,007,195 31,352,667 26,480,678 32,812,518 35,157,159 28,843,483 29,330,293 27,352,428 25,663,665

Historical Analysis by Calendar BMY from 2015Q1 to 2024Q1

The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters (2024Q1 BMY is sum of 2024 Q1, 2023 Q4, 2023 Q3, 2023 Q2).

City of Palo Alto

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General Retail
Food Products
Transportation
Business to Business
Misc/Other
2024/1 Total
2023/1 Total
% Chg
Largest Gain
Second Largest
Gain
Largest Decline
Second Largest
Decline
Campbell ‐1.4% 0.5% 4.0% 28.8% ‐0.2% 2,538,496           2,428,298        4.5% I.T.  Infrastructure Office  Equipment Light  Industry Electronic  Equipment Cupertino 6.2% 5.2% ‐0.9% ‐5.5% 10.5% 7,255,522           7,535,507        ‐ 3.7% I.T.  Infrastructure Restaurants Office  Equipment Miscellaneous  Retail Gilroy 2.8% 1.7% 6.1% ‐1.7% ‐1.1% 3,826,805           3,724,834        2.7% Auto Sales ‐ New Miscellaneous  Retail Misc.  Vehicle Sales Energy  Sales Los A l t o s 1 . 3 %0 . 9 %3 . 1 % 1 1 . 6 % ‐16.1% 580,319              567,661           2.2% Electronic  Equipment Recreation  Products Business  Services Heavy  Industry Los Gatos ‐1.0% 9.4% ‐18.7% 8.6% ‐20.9% 1,292,731           1,342,494        ‐ 3.7% Food  Processing Eqp Bldg.Matls ‐Retail Miscellaneous  Other Auto  Sales ‐ New Milpitas 20.5% 3.5% ‐2.3% ‐15.8% 3.8% 5,209,433           5,321,308        ‐ 2.1% Miscellaneous Retail Electronic  Equipment Office  Equipment Bldg.Matls ‐Whsle Morgan Hill 5.9% ‐0.9% ‐3.3% ‐18.0% ‐4.3% 2,321,127           2,414,476        ‐ 3.9% Service  Stations Miscellaneous  Retail Misc.  Vehicle Sales Heavy  Industry Mountain View 1.0% 3.9% ‐3.5% ‐36.4% ‐10.1% 4,245,771           4,671,866        ‐ 9.1% Restaurants Leasing Business  Services Office  Equipment Palo Alto 7.9% 6.9% 34.2% 5.5% 27.9% 7,253,317            6,481,040        11.9% Auto Sales ‐ New Business  Services Leasing Bldg.Matls ‐Whsle San Jose 1.9% 4.6% ‐9.2% 38.6% 2.2% 47,857,257         44,338,639      7.9% Office  Equipment Restaurants Green  Energy Auto  Sales ‐ New Santa Clara 9.3% 7.9% ‐13.3% ‐4.4% ‐30.4% 11,644,552         12,428,833      ‐ 6.3% Restaurants Electronic  Equipment Office  Equipment Bldg.Matls ‐Whsle County of Santa Clara ‐3.8% ‐3.6% 9.1% ‐41.8% ‐16.6% 959,205              1,112,269        ‐ 13.8% Restaurants Food  Markets Leasing Health  & Government Saratoga ‐6.9% ‐0.3% 1.5% ‐10.1% 22.0% 232,850              234,760           ‐ 0.8% Light  Industry Auto  Parts/Repair Business  Services Miscellaneous  Retail Sunnyvale 15.6% 7.6% 24.9% 16.3% ‐13.7% 7,332,989           6,605,585        11.0% Light  Industry Auto  Sales ‐ New Bldg.Matls ‐Whsle Heavy  Industry Quarterly Analysis by Sales Tax Category:  Change from 2023Q1 to 2024Q1 (Economic)

Unlike the chart on page one which showed a ‘benchmark year’ through the first quarter of 2024, the chart above shows a comparison of one quarter only – first quarter of 2024 to first quarter of 2023. This chart is for local ‘brick and mortar’ businesses, and it excludes county pools and adjustments.

City of Palo Alto

www.avenuinsights.com (800) 800-8181 Page 9 California Avenue %  CHANGE QoQ 2024Q1 QE 2023Q1  QE 24Q1  % OF TOTAL 23Q1  % OF TOTAL FOOD PRODUCTS 2.0% 92,380 90,606 60.4% 60.9%
GENERAL RETAIL 23.1% 21,954 17,827 14.4% 12.0%
ALL OTHER ‐4.8% 38,511 40,465 25.2% 27.2%
TOTAL 2.7% 152,844 148,897 100.0% 100.0%
El Camino Real and Midtown %  CHANGE QoQ 2024Q1 QE 2023Q1  QE 24Q1  % OF TOTAL 23Q1  % OF TOTAL FOOD PRODUCTS 5.2% 156,412 148,644 32.4% 39.0%
GENERAL RETAIL ‐4.0% 35,711 37,191 7.4% 9.8%
ALL OTHER 49.0% 290,716 195,113 60.2% 51.2%
TOTAL 26.7% 482,839 380,948 100.0% 100.0%
Greater Downtown %  CHANGE QoQ 2024Q1 QE 2023Q1  QE 24Q1  % OF TOTAL 23Q1  % OF TOTAL FOOD PRODUCTS 7.9% 516,354 478,353 61.5% 60.3%
GENERAL RETAIL ‐5.6% 233,851 247,632 27.9% 31.2%
CONSTRUCTION 470.2% 45,632 8,003 5.4% 1.0%
BUSINESS TO BUSINESS ‐26.3% 33,808 45,854 4.0% 5.8%
MISCELLANEOUS ‐9.1% 6,872 7,561 0.8% 1.0%
TRANSPORTATION ‐42.3% 3,092 5,362 0.4% 0.7%
TOTAL 5.9% 839,608 792,765 100.0% 100.0%
Stanford Shopping Center %  CHANGE QoQ 2024Q1 QE 2023Q1  QE 24Q1  % OF TOTAL 23Q1  % OF TOTAL GENERAL RETAIL 14.5% 1,294,515 1,130,136 78.3% 78.2%
FOOD PRODUCTS ‐4.7% 145,028 152,251 8.8% 10.5%
ALL OTHER 31.1% 214,421 163,515 13.0% 11.3%
TOTAL 14.4% 1,653,964 1,445,902 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data:  Change from 2023Q1 to 2024Q1 (Economic)

City of Palo Alto

www.avenuinsights.com (800) 800-8181 Page 10 Town And Country Shopping Center %  CHANGE QoQ 2024Q1 QE 2023Q1  QE 24Q1  % OF TOTAL 23Q1  % OF TOTAL FOOD PRODUCTS 8.6% 112,845 103,872 63.0% 62.7%
GENERAL RETAIL 9.7% 63,695 58,041 35.6% 35.1%
ALL OTHER ‐33.0% 2,440 3,639 1.4% 2.2%
TOTAL 8.1% 178,980 165,552 100.0% 100.0%
All Other Geos combined with Balance of Jurisdiction %  CHANGE QoQ 2024Q1 QE 2023Q1  QE 24Q1  % OF TOTAL 23Q1  % OF TOTAL BUSINESS TO BUSINESS 0.0% 2,248,812 2,248,217 34.1% 37.7% GENERAL RETAIL 10.4% 1,708,428 1,547,799 25.9% 25.9%
TRANSPORTATION 34.3% 1,418,608 1,056,270 21.5% 17.7%
FOOD PRODUCTS 5.4% 1,107,512 1,050,429 16.8% 17.6%
CONSTRUCTION 152.8% 62,911 24,884 1.0% 0.4%
MISCELLANEOUS 2.7% 43,968 42,803 0.7% 0.7%
TOTAL 10.4% 6,590,238 5,970,403 100.0% 100.0%
All Geo Areas Total Comparison 24Q1
& 23Q1 %  CHANGE QoQ 2024Q1 QE 2023Q1  QE 24Q1  % OF TOTAL 23Q1  % OF TOTAL Balance of Jurisdiction 8.1% 3,282,003 3,036,339 49.8% 50.9% Stanford Shopping Center 5.9% 839,608 792,765 12.7% 13.3% Greater Downtown 14.4% 1,653,964 1,445,902 25.1% 24.2%
El Camino Real and Midtown 26.7% 482,839 380,948 7.3% 6.4% Town And Country Shopping Center 8.1% 178,980 165,552 2.7% 2.8% California  Avenue 2.7% 152,844 148,897 2.3% 2.5%
TOTAL 10.4% 6,590,238 5,970,403 100.0% 100.0%
Palo Alto citywide QE 24Q1 & 23Q1 %  CHANGE QoQ 2024Q1 QE 2023Q1  QE 24Q1  % OF TOTAL 23Q1  % OF TOTAL BUSINESS TO BUSINESS 5.5% 2,489,517 2,359,186 34.3% 36.4% GENERAL RETAIL 7.9% 1,739,261 1,611,626 24.0% 24.9%
TRANSPORTATION 34.2% 1,422,933 1,060,259 19.6% 16.4%
FOOD PRODUCTS 6.9% 1,288,207 1,204,882 17.8% 18.6%
MISCELLANEOUS 33.0% 243,266 182,882 3.4% 2.8%
CONSTRUCTION 12.7% 70,132 62,205 1.0% 1.0%
TOTAL 11.9% 7,253,317 6,481,040 100.0% 100.0%
City of Palo Alto Geo Areas & Citywide Chart Data:  Change from 2023Q1 to 2024Q1 (Economic) Cont.

City of Palo Alto

www.avenuinsights.com (800) 800-8181 Page 11 FOOD PRODUCTS,

2.0% CHANGE, $92,380  ,

60.4% TOTAL
GENERAL RETAIL,

23.1% CHANGE, $21,954  ,

14.4% TOTAL
ALL OTHER,
‐4.8% CHANGE, $38,511  ,

25.2% TOTAL
California Avenue 2024Q1  SALES TAX AMOUNTS
FOOD PRODUCTS, $90,606  ,

60.9% TOTAL
GENERAL RETAIL,
$17,827  , 12.0% TOTAL
ALL OTHER, $40,465  ,

27.2% TOTAL
California Avenue 2023Q1  SALES TAX AMOUNTS
FOOD PRODUCTS,

5.2% CHANGE, $156,412  ,

32.4% TOTAL
GENERAL RETAIL,
‐4.0% CHANGE, $35,711  ,

7.4% TOTAL
ALL OTHER,

49.0% CHANGE,
$290,716  ,

60.2% TOTAL
El Camino Real and Midtown 2024Q1   SALES TAX AMOUNTS
FOOD PRODUCTS, $148,644  ,

39.0% TOTAL
GENERAL RETAIL,
$37,191,  9.8% TOTAL
ALL OTHER, $195,113

51.2% TOTAL
El Camino Real and Midtown 2023Q1 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts

City of Palo Alto

www.avenuinsights.com (800) 800-8181 Page 12 FOOD PRODUCTS,

7.9% CHANGE, $516,354  ,

61.5% TOTAL
GENERAL RETAIL,
‐5.6% CHANGE,
$233,851  ,

27.9% TOTAL

CONSTRUCTION,
470.2% CHANGE, $45,632  ,

5.4% TOTAL
BUSINESS TO BUSINESS,
‐26.3% CHANGE, $33,808  ,

4.0% TOTAL

MISCELLANEOUS,
‐9.1% CHANGE, $6,872  ,

0.8% TOTAL TRANSPORTATION,
‐42.3% CHANGE, $3,092  ,

0.4% TOTAL
Greater Downtown 2024Q1 SALES TAX AMOUNTS
FOOD PRODUCTS,
$478,353  , 60.3% TOTAL
GENERAL RETAIL,
$247,632  , 31.2% TOTAL
CONSTRUCTION, $8,003 ,

1.0% TOTAL
BUSINESS TO BUSINESS,
$45,854  , 5.8% TOTAL
MISCELLANEOUS, $7,561  ,

1.0% TOTAL TRANSPORTATION, $5,362 ,

0.7% TOTAL
Greater Downtown 2023Q1 SALES TAX AMOUNTS
GENERAL RETAIL
$1,130,136  ,

78.2% TOTAL
FOOD PRODUCTS, $152,251  ,

10.5% TOTAL
ALL OTHER, $163,515  ,

11.3% TOTAL
Stanford Shopping Center 2023Q1 SALES TAX AMOUNTS
GENERAL RETAIL,

14.5% CHANGE, $1,294,515  ,

78.3% TOTAL
FOOD PRODUCTS,
‐4.7% CHANGE,
$145,028  ,

8.8% TOTAL
ALL OTHER, 31.1% CHANGE,
$214,421  , 13.0% TOTAL
Stanford Shopping Center 2024Q1 SALES TAX AMOUNTS
City of Palo Alto Geo Areas Pie Charts

City of Palo Alto

www.avenuinsights.com (800) 800-8181 Page 13 FOOD PRODUCTS,

8.6% CHANGE, $112,845  ,

63.0% TOTAL
GENERAL RETAIL,

9.7% CHANGE, $63,695  ,

35.6% TOTAL
ALL OTHER, ‐33.0% CHANGE, $2,440  , 1.4% TOTAL
To w n And Country Shopping Center 2024Q1 SALES TAX AMOUNTS FOOD PRODUCTS,
$103,872  ,

62.7% TOTAL
GENERAL RETAIL,
$58,041  ,

35.1% TOTAL
ALL OTHER, $3,639  , 2.2% TOTAL
To w n And Country Shopping Center 2023Q1 SALES TAX AMOUNTS BUSINESS TO BUSINESS,

0.0% CHANGE,
$2,248,812  ,

34.1% TOTAL
GENERAL RETAIL,

10.4% CHANGE, $1,708,428,

25.9% TOTAL

TRANSPORTATION,

34.3% CHANGE,
$1,418,608,

21.5% TOTAL
FOOD PRODUCTS,

5.4% CHANGE, $1,107,512  ,

16.8% TOTAL
CONSTRUCTION, 152.8% CHANGE,
$62,911  , 1.0% TOTAL

MISCELLANEOUS,

2.7% CHANGE, $43,968  ,

0.7% TOTAL
All Other Geos combined with Balance of Jurisdiction 2024Q1 SALES TAX AMOUNTS
BUSINESS TO BUSINESS,
$2,248,217  ,

37.7% TOTAL
GENERAL RETAIL, $1,547,799,

25.9% TOTAL

TRANSPORTATION,
$1,056,270  ,

17.7% TOTAL
FOOD PRODUCTS,
$1,050,429  ,

17.6% TOTAL

CONSTRUCTION,
$24,884  , 0.4% TOTAL

MISCELLANEOUS,
$42,803  , 0.7% TOTAL
All Other Geos combined with Balance of Jurisdiction 2023Q1 SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts

City of Palo Alto

www.avenuinsights.com (800) 800-8181 Page 14 Balance of Jurisdiction,

8.1% CHANGE,
$3,282,003  ,

49.8% TOTAL
Stanford Shopping Center,

5.9% CHANGE, $839,608  ,

12.7% TOTAL
Greater Downtown,

14.4% CHANGE,
$1,653,964  ,

25.1% TOTAL
El Camino Real and Midtown,

26.7% CHANGE, $482,839  ,

7.3% TOTAL
Town And Country Shopping Center,

8.1% CHANGE, $178,980  , 2.7% TOTAL California  Avenue, 2.7% CHANGE, $152,844  , 2.3% TOTAL
All Geo Area To ta l s 2024Q1 SALES TA X AMOUNTS
Balance of Jurisdiction,
$3,036,339  , 50.9% TOTAL
Stanford Shopping Center,
$792,765  , 13.3% TOTAL
Greater Downtown,
$1,445,902  , 24.2% TOTAL
El Camino Real and Midtown,
$380,948  , 6.4% TOTAL
Town And Country Shopping Center,
$165,552  , 2.8% TOTAL
California  Avenue,
$148,897  , 2.5% TOTAL
All Geo Area To t a l s 2023Q1 SALES TA X AMOUNTS
BUSINESS TO BUSINESS,

5.5% CHANGE, $2,489,517  ,

34.3% TOTAL
GENERAL RETAIL,

7.9% CHANGE, $1,739,261  ,

24.0% TOTAL

TRANSPORTATION,

34.2% CHANGE,
$1,422,933  ,

19.6% TOTAL
FOOD PRODUCTS,

6.9% CHANGE,   $1,288,207  ,

17.8% TOTAL
MISCELLANEOUS, 33.0% CHANGE,
$243,266  , 3.4% TOTAL

CONSTRUCTION,

12.7% CHANGE, $70,132  ,

1.0% TOTAL
Palo Alto citywide 2024Q1 SALES  TA X AMOUNTS
BUSINESS TO BUSINESS,
$2,359,186  , 36.4% TOTAL
GENERAL RETAIL,
$1,611,626  ,

24.9% TOTAL

TRANSPORTATION,
$1,060,259  ,

16.4% TOTAL
FOOD PRODUCTS, $1,204,882

18.6% TOTAL
MISCELLANEOUS, $182,882  ,

2.8% TOTAL CONSTRUCTION, $62,205  ,

1.0% TOTAL
Palo Alto citywide 2023Q1 SALES TA X AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts

City of Palo Alto
w
ww.avenuinsights.com (800) 8
00-8181 Page 13

FOOD PRODUCTS,

8.6% CHANGE, $112,845 ,

63.0% TOTAL

GENERAL RETAIL,

9.7% CHANGE, $63,695 ,

35.6% TOTAL
ALL OTHER, -33.0% CHANGE, $2,440 , 1.4% TOTAL
T own And Country Shopping Center 2024Q1 SALES TAX AMOUNTS

FOOD PRODUCTS,
$103,872 ,

62.7% TOTAL

GENERAL RETAIL,
$58,041 ,

35.1% TOTAL
ALL OTHER, $3,639 , 2.2% TOTAL
T own And Country Shopping Center2023Q1 SALES TAX AMOUNTS

BUSINESS TO BUSINESS,

0.0% CHANGE,
$2,248,812 ,

34.1% TOTAL

GENERAL RETAIL,

10.4% CHANGE, $1,708,428,

25.9% TOTAL

TRANSPORTATION,

34.3% CHANGE,
$1,418,608,

21.5% TOTAL

FOOD PRODUCTS,

5.4% CHANGE, $1,107,512 ,

16.8% TOTAL
CONSTRUCTION, 152.8% CHANGE,
$62,911 , 1.0% TOTAL

MISCELLANEOUS,

2.7% CHANGE, $43,968 ,

0.7% TOTAL
All Other Geos combined with Balance of Jurisdiction 2024Q1

SALES TAX AMOUNTS

BUSINESS TO BUSINESS,
$2,248,217 ,

37.7% TOTAL
GENERAL RETAIL, $1,547,799,

25.9% TOTAL

TRANSPORTATION,
$1,056,270 ,

17.7% TOTAL

FOOD PRODUCTS,
$1,050,429 ,

17.6% TOTAL

CONSTRUCTION,
$24,884 , 0.4% TOTAL

MISCELLANEOUS,
$42,803 , 0.7% TOTAL
All Other Geos combined with Balance of Jurisdiction 2023Q1

SALES TAX AMOUNTS
City of Palo Alto Geo Area Pie Charts
City of Palo Alto
w
ww.avenuinsights.com (800) 8
00-8181 Page 14
Balance of Jurisdiction,

8.1% CHANGE,
$3,282,003 ,

49.8% TOTAL
Stanford Shopping Center,

5.9% CHANGE, $839,608 ,

12.7% TOTAL
Greater Downtown,

14.4% CHANGE,
$1,653,964 ,

25.1% TOTAL
El Camino Real and Midtown,

26.7% CHANGE, $482,839 ,

7.3% TOTAL
Town And Country Shopping Center,

8.1% CHANGE, $178,980 , 2.7% TOTAL California Avenue, 2.7% CHANGE, $152,844 , 2.3% TOTAL
All Geo Area Totals 2024Q1 SALES TAX AMOUNTS
Balance of Jurisdiction,
$3,036,339 , 50.9% TOTAL
Stanford Shopping Center,
$792,765 , 13.3% TOTAL
Greater Downtown,
$1,445,902 , 24.2% TOTAL
El Camino Real and Midtown,
$380,948 , 6.4% TOTAL
Town And Country Shopping Center,
$165,552 , 2.8% TOTAL
California Avenue,
$148,897 , 2.5% TOTAL
All Geo Area Totals 2023Q1 SALES TAX AMOUNTS

BUSINESS TO BUSINESS,

5.5% CHANGE, $2,489,517 ,

34.3% TOTAL

GENERAL RETAIL,

7.9% CHANGE, $1,739,261 ,

24.0% TOTAL

TRANSPORTATION,

34.2% CHANGE,
$1,422,933 ,

19.6% TOTAL

FOOD PRODUCTS,

6.9% CHANGE, $1,288,207 ,

17.8% TOTAL
MISCELLANEOUS, 33.0% CHANGE,
$243,266 , 3.4% TOTAL

CONSTRUCTION,

12.7% CHANGE, $70,132 ,

1.0% TOTAL
Palo Alto citywide 2024Q1 SALES TAX AMOUNTS

BUSINESS TO BUSINESS,
$2,359,186 , 36.4% TOTAL

GENERAL RETAIL,
$1,611,626 ,

24.9% TOTAL

TRANSPORTATION,
$1,060,259 ,

16.4% TOTAL
FOOD PRODUCTS, $1,204,882

18.6% TOTAL
MISCELLANEOUS, $182,882 ,

2.8% TOTAL CONSTRUCTION, $62,205 ,

1.0% TOTAL
Palo Alto citywide 2023Q1 SALES TAX AMOUNTS
City of Palo Alto Geo Area & Citywide Pie Charts

California Legislative
Update June 4, 2024
May 24 was the house of origin deadline, requiring bills to pass out of their house of origin to remain active for this legislative session, which will end on August 31.
2,159 bills have been introduced in the legislature so far this year, 1520 in the Assembly and 639 in the Senate. Of those, 931 Assembly bills have passed off the Assembly
floor, and in the Senate, 479 Senate bills have passed to the second chamber. Four Assembly bills and seven Senate
bills have been signed into law by Governor Gavin
Newsom so far this year.

The house of origin deadline was preceded by the
appropriations suspense process, during which the
Assembly and Senate appropriations committees took up
their suspense files to decide which legislation would
continue its journey through the legislative process this year and which would be held under submission. It
appears that the tenuous state budget situation led to a higher number of bills being held in committee. Of the
1,009 total bills on the suspense files, 689 moved to the floors, while 320 were held (31.7%). Over the past decade, the average percentage of bills held on suspense is 25%.

Committee hearings have begun for second house
legislation, and budget committees are wrapping up.

Upcoming deadlines include June 15 for the legislature to pass the budget, June 27 for legislative measures to qualify for the November ballot, and July 3 for policy committees to consider legislation.

A summary of salient legislation is provided in this report.

Of particular note, SB 1494 (Glazer) which would have
prohibited cities from entering a sales tax rebate agreement with a retailer starting next year and voided all existing agreements on January 1, 2030, failed passage on the
Senate floor. The floor fight ended a successful opposition effort that included a broad coalition of cities and local government associations.

Bonds
AB 247 (Muratsuchi) Education finance: school
facilities: Transitional Kindergarten Through
Community College Public Education Facilities Bond
Act of 2024. As amended 7/13/23. Authorizes a bond
measure of $14 billion for the construction and
modernization of Transitional Kindergarten through
community colleges public education facilities on an
unspecified 2024 statewide ballot.

Status: Awaiting dispensation in the Senate Appropriations committee.

Cal Cities Position: Watch
AB 305 (Villapudua) California Flood Protection
Bond Act of 2024. As amended 4/25/23. Places a $4.5
billion flood protection and dam safety improvement bond before the voters on the November 5, 2024, General
Election ballot.

Status: Referred to the Senate committee on Natural
Resources.

Cal Cities Position: Watch
AB 408 (Wilson) Climate-resilient Farms, Sustainable
Healthy Food Access, and Farmworker Protection
Bond Act of 2024. As amended 8/14/23. Would enact
the Climate-resilient Farms, Sustainable Healthy Food
Access, and Farmworker Protection Bond Act of 2024,
which, if approved by the voters, would authorize the
issuance of bonds in the amount of $3.65 million pursuant to the State General Obligation Bond Law, to finance
programs related to, among other things, agricultural lands, food and fiber infrastructure, climate resilience, agricultural professionals, including farmers, ranchers, and
farmworkers, workforce development and training, air
quality, tribes, disadvantaged communities, nutrition, food aid, meat processing facilities, and fishing facilities.

Status: Awaiting dispensation in the Senate Appropriations committee.

Cal Cities Position: Watch
AB 1510 (Jones-Sawyer) Fighting Fentanyl Bond Act
of 2024. As amended 7/13/23. Would enact the Fighting
Fentanyl Bond Act of 2024, which, if adopted, would
authorize the issuance of bonds in an unspecified amount, for purposes of financing, among other things, substance use treatment, harm reduction programs, supportive
services for students, programs targeting drug trafficking,

2 substance use treatment programs in prisons and juvenile facilities, and recovery housing and transitional housing for previously incarcerated individuals.

Status: Awaiting hearing in the Senate Appropriations
committee.

Cal Cities Position: Watch

AB 1567 (Garcia) Safe Drinking Water, Wildfire
Prevention, Drought Preparation, Flood Protection,
Extreme Heat Mitigation, Clean Energy, and
Workforce Development Bond Act of 2024. As
amended 5/26/23. Would enact the Safe Drinking Water,
Wildfire Prevention, Drought Preparation, Flood
Protection, Extreme Heat Mitigation, Clean Energy, and
Workforce Development Bond Act of 2024, which, if
approved by the voters, would authorize the issuance of bonds in the amount of $16 billion to finance projects for safe drinking water, wildfire prevention, drought
preparation, flood protection, extreme heat mitigation, clean energy, and workforce development programs.

Status: Awaiting hearing in the Senate Natural Resources and Water committee.

Cal Cities Position: Support if amended

AB 1657 (Wicks) The Affordable Housing Bond Act of
2024. As amended 3/4/24. This bill would enact the
Affordable Housing Bond Act of 2024, which, if adopted, would authorize the issuance of bonds in the amount of
$10 billion pursuant to the State General Obligation Bond Law. Proceeds from the sale of these bonds would be used to finance programs to fund affordable rental housing and homeownership programs, including, among others, the
Multifamily Housing Program, the CalHome Program, and
the Joe Serna, Jr. Farmworker Housing Grant Program.

Status: Awaiting dispensation in the Senate Appropriations committee.

Cal Cities Position: Support

AB 2208 (Zbur) California Ports Development and
Offshore Wind Infrastructure Bond Act of 2024. As
amended 3/21/24. Enacts the California Ports
Development and Offshore Wind Infrastructure Bond Act
of 2024, to authorize $1 billion in general obligation bonds for offshore wind energy. Authorizes the bond act for the November 5, 2024, general election.

Status: Awaiting hearing in the Assembly Natural
Resources committee.

Cal Cities Position: Track

SB 28 (Glazer) Education finance: school facilities:

Public Preschool, K–12, and College Health and
Safety Bond Act of 2024. As introduced 12/5/22.

Authorizes a $15 billion bond measure for the
construction and modernization of public preschools, K- 12, California Community College, University of
California, and California State University facilities.

Status: Awaiting dispensation in the Assembly
Appropriations committee.

Cal Cities Position: None

SB 638 (Eggman) Climate Resiliency and Flood
Protection Bond Act of 2024. As amended 6/28/23.

Would enact the Climate Resiliency and Flood Protection Bond Act of 2024 which, if approved by the voters, would authorize the issuance of bonds in the amount of $6 billion for flood protection and climate resiliency projects.

Status: Awaiting hearing in the Assembly Water, Parks, & Wildlife committee.

Cal Cities Position: Support if amended

SB 867 (Allen) Drought, Flood, and Water Resilience,
Wildfire and Forest Resilience, Coastal Resilience,
Extreme Heat Mitigation, Biodiversity and Nature-
Based Climate Solutions, Climate Smart Agriculture,
Park Creation and Outdoor Access, and Clean Energy
Bond Act of 2024. As amended 6/22/23. Would enact
the Drought, Flood, and Water Resilience, Wildfire and
Forest Resilience, Coastal Resilience, Extreme Heat
Mitigation, Biodiversity and Nature-Based Climate
Solutions, Climate Smart Agriculture, Park Creation and Outdoor Access, and Clean Energy Bond Act of 2024,
which, if approved by the voters, would authorize the
issuance of bonds in the amount of $15.5 billion to finance projects for drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate smart agriculture, park creation and outdoor
access, and clean energy programs.

Status: Awaiting hearing in the Assembly Natural
Resources committee.

Cal Cities Position: Support if amended

Broadband

AB 1588 (Wilson) Affordable Internet and Net
Equality Act of 2024. As amended 1/22/24. Would,
under the Affordable Internet and Net Equality Act of
2024, require the Department of Technology, in
coordination with the Public Utilities Commission and the Department of General Services, to develop and establish the Net Equality Program. The bill would require the state and state agencies to only enter into a procurement

3 contract with an internet service provider offering
affordable home internet service, which costs no more
than $40 per month and meets specified minimum speed
requirements, to households participating in certain public assistance programs, or with an internet service provider participating in the federal Affordable Connectivity
Program, or any other state or federal program that offers broadband affordability assistance for households that
qualify for that program, and that offers to households that qualify for those programs internet service that costs no more than $40 per month and meets specified
minimum speed requirements.

Status: Referred to the Senate Governmental Organization and Energy, Utilities, & Communications committees.

Cal Cities Position: Watch

AB 1826 (Holden) Digital Equity in Video
Franchising Act of 2024. As amended 5/16/24. Makes
various changes to the statutes governing state video
franchises, known as the Digital Infrastructure and Video Competition Act of 2006, and recasts those statutes as the Digital Equity in Video Franchising Act of 2023.

Generally, these changes can be classified as broadening the authority of the California Public Utilities Commission over the issuance and renewal of state video franchises and over the quality-of-service franchise holders providing service to unserved households.

Status: Awaiting hearing in the Senate Energy, Utilities, & Communications committee.

Cal Cities Position: Track

AB 2708 (Patterson, Jim) Office of Broadband and
Digital Literacy: reports. As introduced 2/14/24. Would require additional information to be included in the annual report from the Office of Broadband and Digital Literacy to the budget committees of the legislature, including the total cost to complete the statewide open-access middle- mile broadband network, the total available funding for the statewide open-access middle-mile broadband network,
and the projected completion date for the statewide open- access middle-mile broadband network.

Status: Awaiting hearing in the Senate Energy, Utilities, & Communications committee.

Cal Cities Position: Support

SB 1383 (Bradford) California Advanced Services
Fund: Broadband Public Housing Account. As
amended 4/9/24. Would expand eligibility for the
California Advanced Services Fund Broadband Public
Housing Account, authorize the use of Public Housing
Account funds for devices that improve existing
broadband service, and enable Public Housing Account
recipients offering new broadband plans within low-
income communities to provide a free or low-cost
broadband plan to those communities as a condition of
obtaining the grant.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: Track

Corporation Tax

AB 1973 (Lackey) Personal Income Tax Law:

Corporation Tax Law: Bobcat Fire: exclusions. As
amended 4/18/24. Would, for taxable years beginning on
or after January 1, 2024, and before January 1, 2029,
provide an exclusion from gross income for any qualified taxpayer, for amounts received in settlement for costs and losses associated with the 2020 Bobcat Fire in the County of Los Angeles.

Status: Awaiting hearing in the Senate Revenue & Taxation committee.

Cal Cities Position: None

AB 2128 (Ta) Income and corporation taxes: credits:
work opportunity credit. As amended 5/1/24. For
taxable years beginning on or after January 1, 2025, and before January 1, 2030, would allow a tax credit in an
amount equal to 40% of the qualified wages paid or
incurred to a qualified employee employed during the
taxable year. The bill would define a qualified employee as an individual that, among other things, has been convicted of a felony, and has a hiring date not more than one year after the date the individual was convicted or was released from prison.

Status: Dead - held on the Assembly Appropriations
suspense file.

Cal Cities Position: None

AB 2294 (Schiavo) Personal Income Tax Law:

Corporation Tax Law: New Employment Credit. As
introduced 2/12/24. The Personal Income Tax Law and
the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2026, a credit for hiring qualified full-time employees, within a designated census tract or economic development area in an amount equal to 35% of the qualified wages,
defined in part as those wages that exceed 150% of
minimum wage but do not exceed 350% of minimum
wage, paid to those employees multiplied by the applicable percentage for that taxable year. This bill would eliminate

4 the requirement that the new employment be located
within a designated census tract or economic development area. The bill would expand the definition of qualified wages to include that amount of wages that exceeds 100% of minimum wage but does not exceed 350% of minimum
wage. The bill would expand the definition of qualified employee to include an employee that is a member of a
targeted group, as defined.

Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.

Cal Cities Position: None

AB 3160 (Gabriel) Insurance, income, and corporation
taxes: credits: low-income housing. As amended
5/20/24. Provides that an allocation of $500 million to the Low-Income Housing Tax Credit is not subject to an
appropriation in the annual Budget Act for the 2025
through 2030 calendar years.

Status: Awaiting assignment to a policy committee in the Senate.

Cal Cities Position: Watch

SB 370 (McGuire) Personal Income Tax Law:

Corporation Tax Law: wildfires: exclusions. As
amended 3/28/23. Would, for taxable years beginning on
or after January 1, 2020, provide an exclusion from gross income for any qualified taxpayer, as defined, for amounts received in settlements associated with the 2019 Kincade Fire in the County of Sonoma.

Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.

Cal Cities Position: None

SB 542 (Dahle) Personal Income Tax Law:

Corporation Tax Law: wildfires: exclusions. As
amended 2/5/24. Would, for taxable years beginning on
or after January 1, 2022, and before January 1, 2029,
provide an exclusion from gross income for any qualified taxpayer, for amounts received in settlement for costs and losses associated with the 2021 Dixie Fire in the counties of Butte, Plumas, Lassen, Shasta, and Tehama, or the 2022 Mill Fire in the County of Siskiyou.

Status: Awaiting hearing in the Assembly Appropriations committee.

Cal Cities Position: None

SB 1102 (Nguyen) Personal Income Tax Law:

Corporation Tax Law: oil spill: exclusions. As
amended 4/11/24. Would provide an exclusion from
gross income for any qualified taxpayer for amounts
received in settlements associated with the October 2,
2021, oil spill that occurred off the coast of the County of Orange near the City of Huntington Beach. The bill would repeal the provisions on January 1, 2029.

Status: Dead - held on the Senate Appropriations suspense file.

Cal Cities Position: None

Development Fees

AB 1820 (Schiavo) Housing development projects:
applications: fees and exactions. As amended 4/29/24.

Would authorize a development proponent that submits a
preliminary application for a housing development project to request a preliminary fee and exaction estimate and
would require the local agency to provide the estimate
within 30 business days of the submission of the
preliminary application. Specifies that the preliminary fee and exaction estimate is for informational purposes only and does not affect the scope, amount, or time of payment of any fee or exaction.

Status: Referred to the Senate Local Government and
Housing committees.

Cal Cities Position: Oppose unless amended

AB 2430 (Alvarez) Planning and zoning: density
bonuses: monitoring fees. As amended 4/18/24.

Prohibits a local jurisdiction from charging local
monitoring fees on 100% affordable housing
developments using Density Bonus Law (DBL) to ensure
the continued affordability required under DBL and any
applicable local inclusionary housing ordinance.

Status: Referred to the Senate Housing and Local
Government committees.

Cal Cities Position: Track

AB 2433 (Quirk-Silva) California Private Permitting
Review and Inspection Act: fees: building permits. As
amended 5/20/24. Requires a local agency to complete
plan check services for a building permit within 30
business days of a request from an applicant or employ a private professional to perform plan checking services.

Status: Referred to the Senate Local Government and
Housing committees.

Cal Cities Position: Oppose unless amended

AB 2663 (Grayson) Affordable housing fees: reports.

As amended 5/2/24. This bill, commencing on January 1,
2026, would require a local agency that collects
inclusionary housing in-lieu fees to annually post on its website information related to the amount of fees collected in the previous year and whether the affordable housing

5 fees are intended to be used for a project, if any. Beginning on January 1, 2026, this bill also requires a local agency that collects affordable housing fees to post on its website, every five years, information regarding the amount of fees collected in the past five years and the projects the fees were spent on.

Status: Referred to the Senate Housing and Local
Government committees.

Cal Cities Position: Watch

AB 2729 (Patterson, Joe) Residential fees and charges.

As amended 4/25/24. Prohibits a local agency from
requiring payment of fees or charges on a residential
development before the date of final inspection or the
issuance of a certificate of occupancy, whichever occurs first, except under specified conditions.

Status: Referred to the Senate Local Government and
Housing committees.

Cal Cities Position: Oppose

AB 3177 (Carrillo, Wendy) Mitigation Fee Act: land
dedications: mitigating vehicular traffic impacts. As
amended 4/30/24. Would require a housing development
to be located within 1/2 mile of a transit priority area for purposes of a local agency setting the rate for a mitigating vehicular traffic impacts fee to reflect a lower rate of automobile trip generation.

Status: Referred to the Senate Local Government and
Housing committees.

Cal Cities Position: Track

SB 937 (Wiener) Development projects: permits and
other entitlements: fees and charges. As amended
4/8/24. Extends development entitlements for certain
housing development projects by two years and places
restrictions on the fees and charges a local agency may impose on these projects.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: Oppose unless amended

Economic Development

AB 1370 (Ta) California Community Colleges
Economic and Workforce Development Program. As
amended 3/28/2023. Would revise and recast several
provisions of the California Community Colleges
Economic and Workforce Development Program. The bill
would extend the operation of the program indefinitely
and would repeal the Job Development Incentive Training Program. The bill would revise and recast the principles governing the Economic and Workforce Development
Program, provisions on the duties and membership of the program’s advisory committee, the decision criteria for allocating program funds to colleges, and the definitions that apply to the program’s provisions.

Status: 2-year bill, awaiting dispensation on the Senate Appropriations suspense file.

Cal Cities Position: None

AB 1569 (Garcia) Salton Sea geothermal resource area:

Lithium Valley Office of Development. As amended
5/18/23. This bill would establish the Lithium Valley
Office of Development in the Energy Commission, and
require the office, in consultation with relevant state and local agencies, to coordinate activities related to funding, economic development, construction, manufacturing,
technical development, and reclamation of lithium located in the Salton Sea geothermal resource area.

Status: 2-year bill, awaiting dispensation on the Senate Appropriations suspense file.

Cal Cities Position: Watch

AB 1819 (Waldron) Enhanced infrastructure financing
districts: public capital facilities: wildfires. As amended 5/2/24. This bill would authorize an enhanced
infrastructure financing district that is at least partially in high or very high fire hazard severity zones designated by the State Fire Marshal, to finance heavy equipment to be used for vegetation clearance and firebreaks,
undergrounding of local publicly owned electric utilities, as defined, against wildfires, and equipment used for fire watch, prevention, and fighting.

Status: Awaiting hearing in the Senate Local Government committee.

Cal Cities Position: Pending

AB 2922 (Garcia) Economic development: capital
investment incentive programs. As amended 4/15/24.

Reestablishes, until January 1, 2035, the authorization for the local agency Capital Investment Incentive Program,
which expired January 1, 2024.

Status: Awaiting hearing in the Senate Local Government committee.

Cal Cities Position: Support

SB 517 (Gonzalez) Economic development:
movement of freight. As amended 3/22/23. Would
authorize the Governor’s Office of Business and
Economic Development (GO-Biz) to serve as the
coordinating entity to steer the growth, competitiveness, and sustainability for freight and the supply chain across

6 the state and to promote and assess the continued
economic vitality, economic competitiveness, and
sustainability of the freight sector. Would also authorize GO-Biz to provide freight and supply chain economic
competitiveness information.

Status: 2-year bill. Awaiting hearing in the Assembly Jobs, Economic Development, & the Economy committee.

Cal Cities Position: Watch

SB 720 (Stern) Aviation: airports: report: emissions:

GO-Biz. As amended 7/10/23. Would require GO-Biz to
create a stakeholder group to identify and pursue
opportunities to attract and develop sustainable aviation fuel production and infrastructure in the state to help reach the goal of net-zero greenhouse gas emissions in
California.

Status: 2-year bill. Awaiting hearing in the Assembly
Natural Resources committee.

Cal Cities Position: None

SB 864 (Smallwood-Cuevas) Workforce development:
workplace rights curriculum. As amended 7/3/23.

Would require the California Workforce Development
Board to assist the governor with partnering with the labor commissioner and other subject matter experts in
developing a workplace rights curriculum to be provided to all individuals receiving individualized career services, supportive services, or training services through the
California workforce system. The measure would require
each local workforce development board to ensure the
provision of workplace rights training consistent with that workplace rights curriculum. The bill would require the comprehensive 4-year local plan to include a description of how the local board plans to comply with this requirement.

Status: 2-year bill. Awaiting dispensation on the Assembly Appropriations suspense file.

Cal Cities Position: Watch

SB 1140 (Caballero) Enhanced infrastructure
financing district. As amended 3/21/24. Would
authorize a city or county official to electronically submit a copy of a city or county’s resolution of intention to
establish an infrastructure financing district to each
affected taxing entity, rather than mailing a physical copy.

Status: In the Assembly, awaiting assignment to a policy committee.

Cal Cities Position: Watch

Online Sales

SB 1144 (Skinner) Marketplaces: online marketplaces.

As amended 5/16/24. Expands existing requirements for
online marketplaces to collect certain information from high-volume third-party sellers on those platforms, and permits a district attorney, city attorney, or county counsel to enforce the requirements.

Status: In the Assembly, awaiting assignment to a policy committee.

Cal Cities Position: Support

Property Tax

AB 1093 (Patterson) Property taxation: manufactured
homes: tax collection. As amended 7/13/23. This bill
would revise the Manufactured Home Property Tax Law
procedures for issuing a tax clearance certificate or a conditional tax clearance certificate and for the collection of unpaid, estimated taxes. With respect to the collection of taxes that are not yet payable, the bill would require those taxes to be computed by a certificate or statement prepared by the tax collector, upon request by an escrow officer, as provided, giving their estimate of those taxes or assessments for the current fiscal year and one succeeding fiscal year.

Status: 2-year bill. Awaiting dispensation on the Senate Appropriations suspense file.

Cal Cities Position: Watch

AB 1868 (Friedman) Property taxation: assessments:
affordable housing. As amended 4/18/24. Presumes,
rebuttably, that an assessor shall not include the value of the deed of trust that ensures compliance with affordability restrictions on a property developed consistently with the Habitat for Humanity model.

Status: Awaiting a hearing in the Senate Revenue &
Taxation committee.

Cal Cities Position: Watch

AB 2353 (Ward) Property taxation: welfare exemption:
delinquent payments: interest and penalties. As
amended 4/24/24. Creates a process for a developer
building affordable rental housing that qualifies for the property tax welfare exemption to withhold property taxes, without penalty, while the county tax assessor determines if the development qualifies for the welfare exemption.

Status: Awaiting assignment to a policy committee in the Senate.

Cal Cities Position: Watch

7 AB 2506 (Lowenthal) Property taxation: local
exemption: possessory interests: publicly owned
housing. As introduced 2/13/24. Authorizes a county
board of supervisors to exempt from property taxation any possessory interest held by a tenant of publicly owned
housing with a value so low that the total taxes and
applicable subventions on the property would amount to
less than the cost of assessing and collecting them.

Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.

Cal Cities Position: Watch

AB 2564 (Boerner) Property tax postponement: Senior
Citizens and Disabled Citizens Property Tax
Postponement Fund. As introduced 2/14/24. Would
require money to be transferred, on June 30, 2025, and on June 30 each year thereafter, from the state General Fund to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund when the balance in the latter fund is less than $15 million.

Status: Awaiting assignment to a policy committee in the Senate.

Cal Cities Position: Support

AB 2897 (Connolly) Property tax: welfare exemption:
community land trusts. As amended 4/1/24. Expands
the definition of a community land trust (CLT) to include a wholly owned subsidiary that is solely directed and
managed by the CLT, and to provide that a CLT may sell a dwelling or unit to a qualified owner if that dwelling or unit is subject to a 99-year affordability restriction.

Status: Referred to the Senate Housing and Revenue &
Taxation policy committees.

Cal Cities Position: Watch

AB 3134 (Chen) Property taxation: refunds. As
amended 4/24/24. Would require the county auditor, if
the cancellation of property taxes will result in a refund, to either process the refund to the payor of the tax or notify the payor in writing of the requirements for obtaining a refund. The bill would require that a claim for a refund under this provision be deemed timely filed if it is filed within 60 days of the notice. This bill would also authorize an order for refund of taxes or assessments to be paid to the assessee of a property, without a claim for refund filed, if certain conditions are met, including, among other
requirements, that the amount of the refund is less than $10,000.

Status: Awaiting hearing in the Senate Revenue & Taxation committee.

Cal Cities Position: Watch

AB 3277 (Committee on Local Government) Local
agency formation commission: districts: property tax.

As introduced 2/27/24. Would require a commission to
determine the amount of property tax revenue to be
exchanged by an affected local agency if the proposal
includes the formation of a district and the applicant is seeking a share of the 1% ad valorem property taxes.

Status: Awaiting hearing in the Senate Appropriations
committee.

Cal Cities Position: None

SB 726 (Archuleta) Property taxation: exemption:
disabled veteran homeowners. As amended 4/13/23.

Increases the disabled veterans’ exemption from property taxation to $863,790, and indexes the increased amount for inflation, for lien dates between January 1, 2024, and
January 1, 2034.

Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.

Cal Cities Position: Watch

SB 871 (Archuleta) Property taxation: homeowners’,
veterans’, and disabled veterans’ exemptions. As
amended 9/1/23. Amends the homeowners’ exemption
from property tax to allow a property that receives the homeowners’ exemption to also receive the disabled
veterans’ or veterans’ exemptions; and takes effect only if voters approve SCA 6 (Archuleta). SCA 6 is awaiting
referral to a policy committee in the Assembly.

Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.

Cal Cities Position: Pending

SB 1072 (Padilla) Local government: Proposition 218:
remedies. As amended 4/24/24. Would establish the
Property Tax Assistance for Descendants of Enslaved
Persons Program for purposes of making, upon
appropriation by the legislature, moneys available to
persons who meet specified criteria for purposes of
providing financial assistance equal to the total amount of property taxes paid on a residential dwelling, as defined, or $4,000, whichever is less, and as subject to specified
limitations. The bill would, for purposes of determining a person’s eligibility for monies under the program, require the person to provide an affidavit, under penalty of
perjury, containing specified information, if the residential dwelling is owned by the person on property owned by a
nonprofit incorporated association. By expanding the
crime of perjury, the bill would impose a state-mandated

8 local program. The bill would require the Franchise Tax Board to develop and administer the program and to
provide funds to eligible claimants. The bill would set forth procedures for administering the program.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: Watch

SB 1164 (Newman) Property taxation: new
construction exclusion: accessory dwelling units. As
amended 5/16/24. Would enact a property tax new
construction exclusion for the addition or construction of an accessory dwelling unit between January 1, 2025, and January 1, 2030.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: Oppose

SB 1327 (Glazer) Income taxation: credits: local news
media: data extraction transactions. As amended
5/16/24. Imposes a Data Extraction Mitigation Fee;
enacts credits against the Personal Income and
Corporation taxes for news media entities that pay wages for current or newly employed journalists or acquire
freelance content; and directs fee revenue to specified purposes, including to reimburse foregone General Fund
revenue resulting from the credits.

Status: Awaiting a vote by the full Senate.

Cal Cities Position: Watch

SCA 4 (Seyarto) Property taxation: principal residence
and family home transfers. As amended 4/19/23.

Would place a measure before voters that repeals
Proposition 19’s limitation on the parent-child and
grandparent-grandchild exclusion from change in
ownership of a principal residence to apply only if the property continues as the primary residence of the
transferee. SCA 4 also reinstates the parent-child,
grandparent-grandchild exclusion for up to $1 million in aggregate value of all other types of property that is not the principal residence. Under the measure, both changes become effective on January 1, 2025, if approved by
voters.

Status: Failed passage in the Senate Governance & Finance committee.

Cal Cities Position: Watch

SCA 6 (Archuleta) Property taxation: veterans’
exemption. As amended 4/19/23. Would allow a
dwelling that receives the veterans’ exemption or the
disabled veteran’s exemption to also receive the
homeowners’ exemption. Would authorize the legislature
to exempt property eligible for the veterans’ exemption in an amount up to the full value of the property. If the
legislature increases the homeowners’ exemption, the
measure would require that the legislature provide the
same increase in the veterans’ exemption, except as limited by the full value of the property.

Status: Awaiting referral to a policy committee in the
Assembly.

Cal Cities Position: Track

Revenue and Taxation

AB 2813 (Aguiar-Curry) Government Investment Act.

As amended 4/29/24. This bill, for purposes of ACA 1,
would define “affordable housing” to include rental
housing, ownership housing, interim housing, and
affordable housing programs such as down payment
assistance, first-time homebuyer programs, and owner-
occupied affordable housing rehabilitation programs. The bill would require a local government to ensure that any project that is funded with ACA 1 bonded indebtedness or ACA 1 special taxes to have an estimated useful life of at least 15 years or 5 years if the funds are for specified public safety buildings, facilities, and equipment.

Status: Ordered to the Assembly Inactive file at the request of the author.

Cal Cities Position: Oppose

AB 3005 (Wallis) Motor Vehicle Fuel Tax Law:
adjustment suspension. As introduced 2/16/24. Would
authorize the governor to suspend an adjustment to the
motor vehicle fuel tax, scheduled on or after July 1, 2025, upon determining that increasing the rate would impose an undue burden on low-income and middle-class families.

Would require the governor to notify the legislature of an intent to suspend the rate adjustment on or before January 10 of that year and would require the Department of
Finance to submit to the legislature a proposal by January 10 that would maintain the same level of funding for
transportation purposes as would have been generated had the scheduled adjustment not been suspended.

Status: Awaiting hearing in the Assembly Transportation committee.

Cal Cities Position: Oppose

ABX1 2 (Fong, Vince) Motor Vehicle Fuel Tax Law:
suspension of tax. Would suspend the imposition of the
tax on motor vehicle fuels for one year. The bill would require that all savings realized based on the suspension of the motor vehicle fuels tax by a person other than an end

9 consumer, be passed on to the end consumer, and would make the violation of this requirement an unfair business practice, in violation of unfair competition laws. The bill would require a seller of motor vehicle fuels to provide a receipt to a purchaser that indicates the amount of tax that would have otherwise applied to the transaction.

Status: Awaiting assignment to a policy committee in the Senate.

Cal Cities Position: None

Sales and Use Taxes

AB 52 (Grayson) Income tax credit: sales and use
taxes paid: manufacturing equipment: research and
development equipment. As amended 6/15/23. The
Bradley-Burns Uniform Local Sales and Use Tax Law,
authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and current laws authorize districts, as specified, to impose transactions and use taxes in accordance with the
Transactions and Use Tax Law, which generally conforms
to the Sales and Use Tax Law. Exemptions from state sales and use taxes are automatically incorporated into the local tax laws. This bill would allow, for a taxable year beginning on or after January 1, 2024, and before January 1, 2029, a credit against those taxes to a taxpayer in an amount equal to the amount of tax reimbursement paid during the
taxable year for sales tax on gross receipts that would be exempt from taxation under the Sales and Use Tax Law
pursuant to the sales and use tax exemption described
above but for the provision that prohibits that exemption from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or
the Transactions and Use Tax Law, sales and use taxes
imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution.

Status: Held on the Senate Appropriations suspense file.

Cal Cities Position: None

AB 2006 (Mathis) Sales and Use Tax Law: exemption:
over-the-counter medication. As introduced 1/31/24.

This bill would, until January 1, 2030, provide an
exemption for the state portion of the sales and use tax imposed on the sale of, and the storage, use, or other
consumption in this state of, over-the-counter medication.

Status: Held on the Assembly Revenue & Taxation
committee suspense file.

Cal Cities Position: Watch

AB 2061 (Wilson) Sales and Use Tax: exemptions:
zero-emission public transportation ferries. As
amended 5/1/24. This bill, beginning January 1, 2025, and until January 1, 2030, provides a partial sales and use tax exemption for a zero-emission public transportation ferry.

Status: Awaiting hearing in the Senate Revenue & Taxation committee.

Cal Cities Position: Support

AB 2274 (Dixon) Taxation: sales and use taxes:
exemption: tax holiday. As amended 3/21/24. Would,
on and after January 1, 2025, exempt from sales and use taxes the gross receipts from the sale of, and the storage, use, or other consumption of, any tangible personal
property purchased during the first weekend in August,
beginning at 12:01 a.m. on Saturday and ending at 11:59 p.m. on Sunday.

Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.

Cal Cities Position: Oppose

AB 2647 (Low) Property taxation: disabled veterans’
exemption: welfare exemption: housing for law
enforcement and firefighters. As amended 4/10/24.

Expands the disabled veterans’ property tax exemption
and would provide an unmarried surviving spouse a
property tax exemption in the same amount that they
would have been entitled to if the veteran was alive and if certain conditions are met.

Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.

Cal Cities Position: Pending

AB 2854 (Irwin) Bradley-Burns Uniform Local Sales
and Use Tax Law. As amended 4/10/24. Requires a
local agency to annually provide specified information to the California Department of Tax and Fee Administration (CDTFA) regarding the rebate of Bradley-Burns Uniform
Local Sales and Use Tax Law revenues. Provides that, in any case where a local agency fails to provide the
information above in a timely manner to the CDTFA or
fails to post the information on its internet website, the department must notify the local agency that it has 30 days from receipt of the notice to provide or publish the
required information. If a local agency fails to provide or publish the information within 30 days after receiving the notice, the department may impose a penalty in an amount equal to the greater of the following:
● 20% of any rebated SUT revenues during the
applicable fiscal year; or,

10 ● $1,000 for each day the local agency fails to provide or publish the required information after receipt of the
30-day notice from the CDTFA.

Status: Awaiting assignment to a policy committee in the Senate.

Cal Cities Position: Support if amended

AB 3259 (Wilson) Transactions and use taxes: County
of Solano. As amended 5/7/24. Authorizes Solano
County, or any city within Solano County, to impose a
transaction and use tax for general or specific purposes that exceeds the 2% statutory limitation.

Status: Awaiting assignment to a policy committee in the Senate.

Cal Cities Position: Watch

SB 243 (Seyarto) Sales and Use Tax Law: exemption:
gun safety systems. As introduced 1/25/23. Would, until January 1, 2028, exempt from sales and use taxes the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a gun safety system, as defined. This bill contains other related provisions and other existing laws.

Status: Failed passage in the Senate Governance & Finance committee.

Cal Cities Position: Watch

SB 1086 (Seyarto) Sales and Use Tax Law: motor
vehicle fuel tax: sales price: gross receipts. As
introduced 2/12/24. The Motor Vehicle Fuel Tax Law
imposes a tax upon each gallon of motor vehicle fuel
removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing sales and use tax laws provide a partial exemption from the taxes imposed by those laws
for motor vehicle fuel that is subject to the taxes imposed by the Motor Vehicle Fuel Tax Law. This bill, beginning January 1, 2025, would exclude from the terms “gross
receipts” and “sales price” under the Sales and Use Tax Law the amount of any motor vehicle fuel tax imposed
pursuant to the Motor Vehicle Fuel Tax Law.

Status: Failed passage in the Senate Revenue & Taxation committee.

Cal Cities Position: Watch

Short-Term Rentals

AB 2202 (Rendon) Short-term rentals: disclosure:
cleaning tasks. As amended 3/21/24. Current law,
commencing July 1, 2024, prohibits a place of short-term lodging, an internet website, application, or other similar centralized platform, or any other person from advertising, displaying, or offering a room rate that does not include all fees or charges required to stay at the short-term lodging, and requires that they include in the total price to be paid, all taxes and fees imposed by a government on the stay
before the consumer reserves the stay. This bill would
require a place of short-term lodging, an internet website, application, or other similar centralized platform, or any other person to also disclose any additional fees or charges that will be added to the total price to be paid, or other penalty that will be imposed, if the consumer fails to
perform certain cleaning tasks at the end of the stay, and to explicitly describe the cleaning tasks in a written or electronic notice that is affirmatively acknowledged by the consumer before the consumer reserves the stay. The bill would make a violation of its provisions subject to the specified civil penalty and enforcement provisions
described above.

Status: Awaiting hearing in the Senate Judiciary committee.

Cal Cities Position: Watch

SB 584 (Limón) Laborforce housing: Short-Term
Rental Tax Law. As amended 5/18/23. This bill would
enact the Laborforce Housing Financing Act of 2023, and define “laborforce housing” as housing that, among other things, is owned and managed by specified entities solely for the benefit of residents and households unable to
afford market rent, and whose residents enjoy certain
protections. The bill would establish the Laborforce
Housing Fund in the State Treasury and would make
moneys in the fund available to the department, upon
appropriation by the legislature, for the creation of
laborforce housing and other specified housing projects by public entities, local housing authorities, and mission- driven nonprofit housing providers, as provided.

Status: Awaiting hearing in the Assembly Housing &
Community Development committee.

Cal Cities Position: Oppose unless amended

SB 683 (Glazer) Hotels and short-term rentals:
advertised rates: mandatory fees. As amended 9/7/23.

Would, beginning July 1, 2024, require a person or a
website, application, or other similar centralized platform that advertises a hotel room rate or short-term rental rate before the public in this state, or from this state before the public in any state, to include in the advertised hotel room rate or short-term rental rate all mandatory fees, that will be charged in order for the consumer to stay in the hotel room or short-term rental and include in the total price to be paid, before the consumer reserves the stay, all taxes and fees imposed by a government on the stay.

11 Status: Inactive file.

Cal Cities Position: Watch

Transit

AB 1837 (Papan) San Francisco Bay area: public
transit: Regional Network Management Council. As
amended 3/21/24. Establishes in state law the Regional
Network Management Council and directs the
Metropolitan Transportation Commission to facilitate the creation of the council.

Status: Awaiting hearing in the Senate Transportation
committee.

Cal Cities Position: Track

AB 1853 (Villapudua) San Joaquin Regional Transit
District: meetings: surplus money investments. As
amended 3/11/24. Would authorize the San Joaquin
Regional Transit District board to provide, by ordinance or resolution, that each board member receive $100 for each board meeting and committee meeting attended, not to
exceed $500 in a calendar month.

Status: Awaiting hearing in the Senate Transportation
committee.

Cal Cities Position: Track

AB 1924 (Nguyen, Stephanie) Sacramento Regional
Transit District. As amended 5/13/24. This bill allows
the Sacramento Regional Transit District to expand its
service area to any city within Sacramento County and any other portion of the unincorporated territory within the boundaries of Sacramento County where the county has
declared a need for the district to operate.

Status: Awaiting a full vote of the Senate.

Cal Cities Position: Track

AB 2325 (Lee) San Francisco Bay Area Rapid Transit
District: officers: designation and appointment. As
amended 5/30/24. Would eliminate the treasurer and
controller as specifically designated officers of the San Francisco Bay Area Rapid Transit District and as positions subject to appointment and removal by the board. The bill would also eliminate specified qualifications applicable to the controller.

Status: Awaiting hearing in the Senate Transportation
committee.

Cal Cities Position: None

AB 2553 (Friedman) Housing development: major
transit stops: vehicular traffic impact fees. As amended 4/15/24. The California Environmental Quality Act
(CEQA) exempts from its requirements residential
projects on infill sites and transit priority projects that meet certain requirements, including a requirement that the projects are located within 1/2 mile of a major transit stop. CEQA defines “major transit stop” to include,
among other locations, the intersection of 2 or more major bus routes with a frequency of service interval of 15
minutes or less during the morning and afternoon peak
commute periods. This bill would revise the definition of “major transit stop” to increase the frequency of service interval to 20 minutes.

Status: Referred to the Senate Local Government and
Housing committees.

Cal Cities Position: Track

AB 2634 (McCarty) Sacramento Regional Transit
District. As amended 5/30/24. Exempts the Sacramento
Regional Transit (SACRT) District from a requirement
that each transit operator that offers reduced fares to senior citizens must also offer reduced fares to disabled persons at the same rate established for senior citizens until January 1, 2027. This bill mandates that if SacRT offers reduced fares to senior citizens only, under this exemption, the district shall not increase fares for disabled persons or disabled veterans. This bill requires, under this exemption, that if SacRT offers reduced fares to senior citizens only, then SacRT is to submit a report to the
legislature by January 1, 2026.

Status: Awaiting a full vote of the Senate.

Cal Cities Position: None

SB 904 (Dodd) Sonoma-Marin Area Rail Transit
District. As amended 3/21/24. Current law authorizes the board of the Sonoma-Marin Area Rail Transit District to submit to the voters of the district a measure proposing a retail transaction and use tax ordinance. SB 904 would also authorize special district taxes to be imposed by a qualified voter initiative and require the board of supervisors of the counties of Sonoma and Marin to call a special election on a tax measure proposed by the district’s board of directors or a qualified voter initiative in their respective counties.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: None

SB 960 (Wiener) Transportation: planning: transit
priority projects: multimodal. As amended 5/17/24.

Directs Caltrans to develop a transit priority policy,
requiring inclusion of bicycle, pedestrian, and transit priority facilities in the Transportation Asset Management Plan, the State Highway System Management Plan, and the

12 plain language performance report of the State Highway Operation and Protection Program (SHOPP). This bill
requires any project in the SHOPP to include bicycle,
pedestrian, and transit priority projects unless a specified exception applies.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: Track

SB 1031 (Wiener) San Francisco Bay area: local
revenue measure: transportation improvements. As
amended 5/20/24. Authorizes the Metropolitan
Transportation Commission to propose new taxes, allocate new revenue and issue bonds for specified transportation projects, and requires the State Transportation Agency to consider transit agency consolidation within the San
Francisco Bay area.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: Track

SB 1417 (Allen) Transit districts: prohibition orders.

As introduced 2/16/24. This bill would provide that the Santa Monica Department of Transportation is also a
transit district for purposes of provisions regarding
prohibition orders.

Status: Awaiting hearing in the Assembly Transportation committee.

Cal Cities Position: None

Cannabis

Direct to Consumer

AB 1111 (Pellerin) Cannabis: small producer event
sales license. As amended 5/22/23. This bill establishes a small producer event sales license for licensed small-scale cannabis cultivators in California, utilizing the existing state framework for cannabis events established under AB 2020. The bill limits license issuance to cultivators meeting specific cultivation size criteria and designated equity licensees. Licensees are required to sell only their own cultivated cannabis products and transport them to event venues through licensed distributors. Additionally, the bill mandates event organizers to provide a list of small
producer event sales licensees to the Department of
Cannabis Control (DCC) for temporary event applications and grants DCC authority to take disciplinary action for violations. Sponsored by the Origins Council.

Status: Held on the Senate Appropriations suspense file.

Cal Cities Position: Watch

Employment Discrimination

SB 1264 (Grove) Employment discrimination:
cannabis use. As amended 4/29/24. Existing law
prohibits employers from discriminating against
individuals in hiring, termination, or employment
conditions based on their off-the-job cannabis use or the presence of nonpsychoactive cannabis metabolites in drug screenings. Certain exemptions exist, such as for positions requiring federal background checks or security clearances.

SB 1264 extends exemptions to additional applicants and employees within law enforcement agencies, including
those involved in civil enforcement, animal control, or coroner functions.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: Watch

Enforcement

AB 491 (Wallis) Local government: fines and
penalties. As amended 9/13/23. Makes several changes
to a local agency’s ability to collect administrative fines or penalties, including changes that apply to all administrative fines and penalties, as well as changes that are specific to violations of cannabis-related ordinances.

Status: Awaiting hearing in the Senate Judiciary committee.

Cal Cities Position: Support

AB 1616 (Lackey) California Cannabis Tax Fund:

Board State and Community Corrections grants. This
bill amends the Board of State and Community
Corrections (BSCC) Prop 64 Public Health and Safety
Grant Program to expand the eligibility criteria so that all of California's 482 cities and 58 counties may apply for grant funding. The bill further directs the BSCC to
prioritize the allocation of BSCC grants to programs
addressing unlawful retail and cultivation activities.

Status: 2-year bill. Awaiting hearing in the Senate Public Safety committee.

Cal Cities Position: Support

SB 820 (Alvarado-Gil) Cannabis: enforcement: seizure
of property. As amended 5/1/23. Sponsored by the Rural
County Representatives of California, this bill empowers the Department of Cannabis Control or local jurisdictions, with an inspection warrant, to seize specified property used in unlicensed commercial cannabis activities, along with vehicles valued over $5,000 used to conceal or
transport cannabis products for those engaging in such

13 conduct. Specified property includes various equipment, materials, and currency exceeding $40,000. The bill
excludes limited unlicensed commercial cannabis activities involving fewer than 1,000 living cannabis plants and real property. It establishes notice requirements and forfeiture proceedings, with seized property sold at public auction and proceeds split between the local jurisdiction and the Cannabis Control Fund. Proceeds allocated to the state are designated for use exclusively under the California
Cannabis Equity Act, subject to legislative appropriations.

Status: Awaiting hearing in the Assembly Business and
Professions committee.

Cal Cities Position: Support

Industrial Hemp

AB 2223 (Aguiar-Curry) Cannabis: industrial hemp.

As amended 5/16/24. Allows for cannabis licensees to
manufacture, distribute, or sell products that contain
industrial hemp and places additional restrictions on
industrial hemp products containing tetrahydrocannabinol (THC) or comparable cannabinoids.

Status: Referred to the Senate Business Professions and Economic Development and Health committees.

Cal Cities Position: Pending

Licensing Reform/Simplification

SB 508 (Laird) Cannabis: licenses: California
Environmental Quality Act. As amended 8/4/23.

Establishes conditions under which the Department of
Cannabis Control is not required to serve as a responsible agency under the California Environmental Quality Act
(CEQA).

Status: Awaiting dispensation in the Assembly
Appropriations committee.

Cal Cities Position: Support

SB 1064 (Laird) Cannabis. As amended 5/16/24. Co-
sponsored by the Rural County Representatives of
California and the California Cannabis Industry
Association, this bill revises the current licensing
framework for retail, distribution, processing and
manufacturing of cannabis or cannabis products for
commercial cannabis activity by creating a uniform
operator license, a revised premises license, as specified, and transforming a cultivation or laboratory license into a unified license by January 1, 2028.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: Support

SB 1109 (Bradford) Cannabis licensure. As amended
5/16/24. Requires the Department of Cannabis Control to collect demographic data about a person applying for a
state license.

Status: Awaiting assignment to a policy committee in the Assembly.

Cal Cities Position: Pending

Onsite Consumption

AB 1775 (Haney) Cannabis: local control: cannabis
consumption. As amended 4/25/24. This bill specifies
that a local jurisdiction may allow a licensed retailer or microbusiness to prepare or sell pre-packaged non-
cannabis-infused, nonalcoholic food or beverage products and to allow, and to sell tickets for, live musical or other performances on the premises by a licensed retailer or
microbusiness in an area where the consumption of
cannabis is allowed.

Status: Awaiting hearing in the Senate Business Professions and Economic Development committee.

Cal Cities Position: Pending

SB 285 (Allen) Cannabis: retail preparation, sale, and
consumption of non-cannabis food and beverage
products. As amended 4/11/23. Permits the preparation
or sale of non-cannabis food or beverage products in
compliance with all applicable provisions of the retail food code by a licensed cannabis retailer or microbusiness in the area where the consumption of cannabis is allowed.

Specifies that the activities above must be authorized by a local jurisdiction, and only if access to the area where cannabis consumption is allowed is restricted to persons 21 years of age or older, if cannabis consumption is not visible from any public place or nonage-restricted area, and if the sale or consumption of alcohol or tobacco is not allowed on the premises. Authorizes a local jurisdiction to allow for the sale of prepackaged, non-cannabis-infused, nonalcoholic food and beverages by a licensed retailer.

Status: Awaiting hearing in the Assembly Governmental
Organization committee.

Cal Cities Position: Watch

Cannabis Taxation

AB 2555 (Quirk-Silva) Sales and use tax: exemption:
medicinal cannabis: donations. As amended 4/8/24.

This bill ensures continued access to medicinal cannabis donations for low-income patients by extending
indefinitely the sales and use tax exemption for medicinal

14 cannabis or medicinal cannabis products that are donated by cannabis licensees, also known as the Dennis Peron and Brownie Mary Act. The current exemption is set to expire at the end of 2024 and this bill would extend the sunset to Jan. 1, 2030.

Status: Awaiting assignment to a policy committee in the Senate.

Cal Cities Position: Watch

SB 1059 (Bradford) Cannabis tax: cannabis retailers.

As amended 4/24/24. Clarifies that the state’s 15% excise tax is calculated based on gross receipts of cannabis
products and does not capture any tax or fee imposed by a local jurisdiction. In some jurisdictions, including the City of Los Angeles, local cannabis taxes or fees are being
calculated after the state excise tax is applied.

Status: Awaiting assignment to a committee in the
Assembly.

Cal Cities Position: Pending

Testing Integrity

AB 1610 (Jones-Sawyer) Cannabis: Department of
Cannabis Control. As amended 7/5/23. This bill aims to
tackle the issue of illegal over-reporting of potency for price markups in the cannabis industry. The bill mandates the Department of Cannabis Control (DCC) to maintain a
record of recall orders on its website, including details like date, location, licensee name, and license number. It also requires the DCC to establish a blind proficiency test
method for testing laboratories to ensure consistent
results, conduct biennial in-person audits of testing labs, set guidelines for audit procedures, and establish quality assurance standards for cannabis products available for retail sale.

Status: Awaiting hearing in the Senate Business,
Professions, and Economic Development Committee.

Cal Cities Position: Watch