Item Number: 29
City Council / Board of Directors
Written Communications
Meeting of: June 18, 2024
Submitted By:
Jennifer Thompson, City Clerk
Subject:
Discussion and Possible Action regarding Assembly Bill 3259 (now Assembly Bill 2443 Carrillo) as it relates to transactions and use taxes
Recommendation:
Any action is at the discretion of Your Honorable City Council.
Fiscal Impact:
There is no fiscal impact associated with this item.
Background:
At the City Council meeting of June 4, 2024, it was moved by Mayor Becerra and unanimously approved to agendize an item for discussion and possible action regarding Assembly Bill 3259 as it relates to transactions and use taxes and its ability to allow Victorville to increase the cap on the transaction and use tax that is statutorily available to us. The request is a direct result of efforts made recently to use the legislative process to consider Victorville’s inclusion to AB 3259.
Discussion:
This item is being presented to Council so that Council can further discuss Assembly Bill 3259, now Assembly Bill (AB) 2443 as it relates to transactions and use taxes and its ability to allow Victorville to increase the cap on the transaction and use tax that is statutorily available to us. Currently, State law places a cap of 2% on the amount cities and counties can levy in the form of a transactions and use tax. In Victorville, the 2% cap is consumed by the one cent Measure P and the half cent Measure I transportation tax.
Amending State law to allow for an increase in a transaction and use tax above the 2% would assist Victorville if it was interested in pursuing another measure similar to Measure P. In its current form, AB 3259, now AB 2443, has passed the State Assembly and is now on to the State Senate floor. Based on recent efforts working with Assembly Member Carrillo along with our State lobbyist, staff have been advised that AB 2443, includes 3 3
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Victorville. Council should consider formal support of the bill and authorize the Mayor to testify in support of this in Sacramento, if necessary.
Staff remains available for any questions or comments you might have.
Attachments: A. Assembly Bill 3259
B. Assembly Bill 2443