SB-1408 • 2026

Contra Costa Transportation Authority: transactions and use tax.

Elections Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Arreguín
Last action: 2026-04-23
Official status: Read second time. Ordered to third reading.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on how funds will be used or any additional rules for funding beyond voter approval and tax exemption from combined rate limit.

Contra Costa Transportation Authority Tax

The bill allows the Contra Costa Transportation Authority to ask voters to approve a new tax on purchases made within the county, up to 1%, until January 1, 2045.

What This Bill Does

Allows the Contra Costa Transportation Authority to ask voters to approve a new transactions and use tax for transportation projects at no more than 1% rate.
Exempts this specific tax from counting towards an existing statewide cap on similar taxes until January 1, 2045.

Who It Names or Affects

Residents and businesses in Contra Costa County who make purchases.
The Contra Costa Transportation Authority, which would collect and use the funds from this new tax.

Terms To Know

transactions and use tax: A type of sales tax that is charged on goods or services when they are bought or used.
combined rate limit: The total percentage of taxes a county can charge for similar types of transactions, which in this case cannot exceed 2%.

Limits and Unknowns

It is not clear how much money will be raised by the new tax.
The bill does not specify what happens after January 1, 2045.

Bill History

2026-04-23 California Legislative Information
Read second time. Ordered to third reading.
2026-04-22 California Legislative Information
From committee: Do pass. (Ayes 4. Noes 1.) (April 22).
2026-04-14 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2026-04-09 California Legislative Information
Set for hearing April 22.
2026-04-08 California Legislative Information
From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 9. Noes 2.) (April 7). Re-referred to Com. on REV. & TAX.
2026-03-23 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on TRANS.
2026-03-17 California Legislative Information
Set for hearing April 7.
2026-03-04 California Legislative Information
Referred to Coms. on TRANS. and REV. & TAX.
2026-02-23 California Legislative Information
Read first time.
2026-02-23 California Legislative Information
From printer. May be acted upon on or after March 23.
2026-02-20 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

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 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, 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 taxes, 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 would provide 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.

Current Bill Text

Read the full stored bill text

Download Bill PDF