Monterey-Salinas Transit District: sales and special taxes.

Plain English Breakdown

The official source material does not provide specific details about the amount of money the district will collect from these taxes or what happens if voters do not approve the tax before January 1, 2035.

Monterey-Salinas Transit District: Sales and Special Taxes

This law stops the Monterey-Salinas Transit District from asking voters to approve sales or special taxes after January 1, 2026, but allows it to propose a new retail transactions and use tax with specific conditions.

What This Bill Does

• Prohibits the district from submitting measures for sales or special taxes to voters starting January 1, 2026.
• Allows the district board to submit a measure proposing a retail transactions and use tax if at least two-thirds of directors agree.
• Permits the district to impose a transactions and use tax up to 0.25% for transportation services, provided it is approved by voters before January 1, 2035.

Who It Names or Affects

• The Monterey-Salinas Transit District
• Voters in the district who might vote on taxes

Terms To Know

Transactions and Use Tax Law

A set of rules that local governments follow when they want to charge a tax on sales or use of goods.

Combined rate limit

The total amount of taxes, in percentage, that can be charged for all transactions and use taxes together.

Limits and Unknowns

• It is not clear how much money the district will collect from these new types of taxes.
• The bill does not specify what happens if voters do not approve the tax before January 1, 2035.

Official Summary Text

AB 761, Addis.
Monterey-Salinas Transit District: sales and special taxes.
Existing law creates the Monterey-Salinas Transit District to include all of the County of Monterey, with specified powers and duties related to public transit service. Existing law prohibits the district from imposing sales or special taxes, but authorizes the district, with the concurrence of a majority of the member jurisdictions represented on the board of directors, to submit a ballot measure for the imposition of those taxes to voters of the district.
This bill would prohibit the submission of a measure for the imposition of a sales or special tax to the voters of the district under this authority on or after January 1, 2026.
Existing law authorizes various local governmental entities, subject to certain limitations and approval requirements, to levy a transactions and use tax, in accordance
with the procedures and requirements set forth in the Transactions and Use Tax Law, 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 would authorize the Monterey-Salinas Transit District, upon the affirmative vote of at least
2
/
3
of the board of directors, to submit to the voters of the district a measure proposing a retail transactions and use tax ordinance in accordance with the Transactions and Use Tax Law.
The bill would also separately authorize the district to impose a transactions and use tax for the support of its transportation services at a rate of no more than 0.25% that would, in combination with other transactions and use taxes, exceed the above-described combined rate limit of 2%, if the ordinance proposing the tax
is approved by the voters before January 1, 2035, subject to applicable voter approval requirements, as specified. The bill would prohibit a transactions and use tax rate imposed pursuant to this authority from being considered for purposes of that combined rate limit described above.

Current Bill Text

Download Bill PDF