ATTACHMENT A
AMENDED IN ASSEMBLY MAY 7, 2024
AMENDED IN ASSEMBLY APRIL 22, 2024
AMENDED IN ASSEMBLY MARCH 21, 2024
california legislature—2023–24 regular session
ASSEMBLY BILL No. 3259
Introduced by Assembly Member Wilson
February 16, 2024
An act to add Chapter 3.81 (commencing with Section 7294.1) to Part 1.7 of Division 2 of, and to repeal Section 7294.1 of, the Revenue and Taxation Code, relating to taxation.
legislative counsel’s digest
AB 3259, as amended, Wilson. Transactions and use taxes: County of Solano.
Existing la w authorizes cities and counties, subject to certain limitations and approval requirements, to le vy a transactions and use tax for general or specific purposes, in accordance with the procedures and requirements set forth in the Transactions and Use Tax 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 the County of Solano or an y city therein therein, by ordinance or by citizens’ initiative, to impose a transactions and use tax for general or specific purposes, at a rate of no more than
0.5% that, in combination with other transactions and use taxes, would exceed the abo ve-described combined rate limit of 2%, if certain requirements are met. The bill w ould provide that a transactions and use tax rate imposed pursuant to the bill will not be considered for purposes of the combined rate limit described abo ve. The bill w ould
96 repeal this authorization on January 1, 2029, if an ordinance or citizen’s initiative proposing the tax has not been appro ved by that date, as specified.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Solano.
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 3.81 (commencing with Section 7294.1) line 2 is added to P art 1.7 of Di vision 2 of the Revenue and Taxation line 3 Code, immediately follo wing Chapter 3.8 (commencing with line 4 Section 7293), to read:
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line 6 Chapter 3.81. County of Solano Transactions and Use line 7 Tax for General or Specific Purposes
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line 9 7294.1. (a) Notwithstanding an y other la w, the County of line 10 Solano Solano, by ordinance or by citizens’ initiative, may impose line 11 a transactions and use tax for general or specific purposes at a rate line 12 of no more than 0.5 percent that w ould, in combination with all line 13 taxes imposed in accordance with P art 1.6 (commencing with line 14 Section 7251), e xceed the limit established in Section 7251.1 if line 15 all of the following requirements are met:
line 16 (1) The County of Solano Board of Supervisors adopts an line 17 ordinance proposing the transactions and use tax by the applicable line 18 voting approval requirement. This paragraph shall not apply to a line 19 tax imposed by citizens’ initiative.
line 20 (2) The ordinance proposing the transactions and use tax is line 21 submitted to the electorate and is appro ved by the v oters voting line 22 on the ordinance by the applicable v oting approval requirement line 23 in accordance with the California Constitution. line 24 (3) The transactions and use tax conforms to the Transactions line 25 and Use Tax Law (Part 1.6 (commencing with Section 7251)), line 26 other than Section 7251.1.
line 27 (b) Notwithstanding Section 7251.1, a transactions and use tax line 28 rate imposed pursuant to subdi vision (a) shall not be considered line 29 for purposes of the combined rate limitation established by Section line 30 7251.1.
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line 1 (c) If an ordinance or citizens’ initiative proposing a transactions line 2 and use tax is not appro ved pursuant to subdi vision (a) before line 3 January 1, 2029, this section shall remain in ef fect only until line 4 January 1, 2029, and as of that date is repealed. line 5 7294.2. (a) Notwithstanding any other la w, any city within line 6 the County of Solano Solano, by ordinance or by citizens’ initiative, line 7 may impose a transactions and use tax for general or specific line 8 purposes at a rate of no more than 0.5 percent that w ould, in line 9 combination with all tax es imposed in accordance with P art 1.6 line 10 (commencing with Section 7251), exceed the limit established in line 11 Section 7251.1 if all of the following requirements are met:
line 12 (1) The city council of an y city within the County of Solano line 13 adopts an ordinance proposing the transactions and use tax by the line 14 applicable voting approval requirement. This paragraph shall not line 15 apply to a tax imposed by citizens’ initiative. line 16 (2) The ordinance proposing the transactions and use tax is line 17 submitted to the electorate and is appro ved by the v oters voting line 18 on the ordinance by the applicable v oting approval requirement line 19 in accordance with the California Constitution. line 20 (3) The transactions and use tax conforms to the Transactions line 21 and Use Tax Law (Part 1.6 (commencing with Section 7251)), line 22 other than Section 7251.1.
line 23 (b) Notwithstanding Section 7251.1, a transactions and use tax line 24 rate imposed pursuant to subdi vision (a) shall not be considered line 25 for purposes of the combined rate limitation established by Section line 26 7251.1.
line 27 (c) This section shall not apply to an y city within the County line 28 of Solano that has not approved, on or before January 1, 2029, an line 29 ordinance or citizens’ initiative proposing a transactions and use line 30 tax pursuant to subdivision (a).
line 31 SEC. 2. The Legislature finds and declares that a special statute line 32 is necessary and that a general statute cannot be made applicable line 33 within the meaning of Section 16 of Article IV of the California line 34 Constitution because of the unique fiscal pressures relating to line 35 transactions and use taxes imposed within the County of Solano.
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