Title
Approve and authorize the Chair to sign a letter to Monterey County's State Legislative Representatives supporting legislation that would provide an exemption from the current Two Percent (2%) cap for the Transportation Agency for Monterey County to pursue a local sales tax measure for transportation, subject to voter approval in 2016. (ADDED VIA ADDENDUM)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors approve and authorize the Chair to sign a letter to Monterey County's State Legislative Representatives supporting legislation that would provide an exemption from the current Two Percent (2%) cap for the Transportation Agency for Monterey County to pursue a local sales tax measure for transportation, subject to voter approval in 2016.
SUMMARY/DISCUSSION:
Existing law authorizes various local governmental entities to levy a transactions and use tax for specific purposes, in accordance with the Transactions and Use Tax Law, including a requirement that the combined rate of all taxes that may be imposed under that law in the county may not exceed 2%.
TAMC is considering a 3/8% (0.375%) countywide transportation investment measure for the November 2016 ballot. Many counties have opted to become "self-help" counties with voter approved transportation measures dedicated to meet their local needs. An important component of becoming a "self-help" county is that the community controls the funds and determines how the funds are spent. However, with other non-transportation tax measures proposed by Monterey County jurisdictions, there will not be sufficient capacity under the 2% local option sales tax cap. As a result, special legislation to provide an exemption to the 2% local option cap is needed to allow TAMC to proceed with its proposed 3/8% sales tax measure.
The TAMC Board of Directors agreed to pursue special legislation at their August 26, 2015 meeting. The deadline to get special legislation passed this session is Se...
Click here for full text