AMENDED IN SENATE APRIL 14, 2026
AMENDED IN SENATE MARCH 23, 2026
SENATE BILL No. 1408
Introduced by Senator Arreguín
February 20, 2026
An act to add and repeal Chapter 3.66 (commencing with Section 7290.7) of Part 1.7 of Di vision 2 of the Re venue and Taxation Code, relating to transportation.
legislative counsel’s digest
SB 1408, as amended, Arreguín. Contra Costa Transportation Authority: transactions and use tax.
Existing law authorizes various local governmental entities, subject to certain limitations and approval requirements, to levy a transactions and use tax for general purposes, in accordance with the procedures and requirements set forth in the Transactions and Use Tax La w, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in the county not exceed 2%.
This bill w ould authorize, until January 1, 2045, the Contra Costa Transportation Authority to impose a transactions and use tax for the support of countywide transportation programs at a rate of no more than 1% that would, in combination with other transactions and use tax es, exceed the above-described combined rate limit of 2%, if the ordinance proposing the tax is approved by the voters, subject to applicable voter approval requirements, as specified. The bill w ould pro vide that a transactions and use tax rate imposed pursuant to the bill will not be considered for purposes of that combined rate limit described above.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Contra Costa.
97 Vote: majority. 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 3.66 (commencing with Section 7290.7) line 2 is added to P art 1.7 of Di vision 2 of the Revenue and Taxation line 3 Code, to read:
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line 5 Chapter 3.66. Local Government Finance in the County line 6 of Contra Costa
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line 8 7290.7. (a) Notwithstanding any other law, the Contra Costa line 9 Transportation Authority may impose or extend a transactions and line 10 use tax for the support of countywide transportation programs at line 11 a rate of no more than 1 percent that w ould, in combination with line 12 all taxes imposed pursuant to Part 1.6 (commencing with Section line 13 7251), exceed the limit established in Section 7251.1, if all of the line 14 following requirements are met:
line 15 (1) The Contra Costa Transportation Authority adopts an line 16 ordinance proposing the transactions and use tax by any applicable line 17 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 in accordance with the California Constitution. line 21 (3) The transactions and use tax conforms to the Transactions line 22 and Use Tax Law (Part 1.6 (commencing with Section 7251)), line 23 other than Section 7251.1.
line 24 (b) Notwithstanding Section 7251.1, a transactions and use tax line 25 rate imposed pursuant to subdi vision (a) shall not be considered line 26 for purposes of the combined rate limit established by Section line 27 7251.1.
line 28 7290.8. If an ordinance proposing the transactions and use tax line 29 authorized by this chapter is not appro ved pursuant to Section line 30 7290.7 on or before January 1, 2045, this chapter shall be repealed line 31 on January 1, 2045.
line 32 SEC. 2. The Legislature finds and declares that a special statute line 33 is necessary and that a general statute cannot be made applicable line 34 within the meaning of Section 16 of Article IV of the California 97 — 2 — SB 1408
line 1 Constitution because of the unique circumstances in the County line 2 of Contra Costa.
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97 SB 1408 — 3 —