Transactions and use tax: City of Hercules.

Plain English Breakdown

The bill text does not provide specific details about how the tax will be used or the exact requirements that must be met.

Transactions and Use Tax for City of Hercules

This bill allows the city of Hercules to collect a transactions and use tax up to 1% even if it would normally exceed the state's limit on such taxes.

What This Bill Does

• Allows the City of Hercules to charge a transactions and use tax of up to 1% for general or specific needs, even if this makes the total tax rate more than 2%, as long as certain rules are followed.
• This special tax won't count towards the usual limit on taxes.

Who It Names or Affects

• People who buy things in Hercules will pay more sales tax.
• Businesses in Hercules might have higher costs because of this new tax.

Terms To Know

transactions and use tax

A type of local tax that is charged on the sale or purchase of goods and services.

combined rate limit

The maximum total amount of taxes a city can charge for transactions and use taxes, which in this case would normally be 2%.

Limits and Unknowns

• It is not clear how much extra money the City of Hercules will collect from this new tax.
• This bill only applies to the City of Hercules and does not change rules for other cities or counties.

Official Summary Text

SB 762, as amended, Arreguín.
San Francisco Bay Conservation and Development Commission: funds.
Transactions and use tax: City of Hercules.
Existing law authorizes cities and counties, subject to certain limitations and approval requirements, to levy 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 Law, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in the jurisdiction not exceed 2%.
This bill would authorize the City of Hercules to impose a transactions and use tax for general or specific purposes, at a rate of no more than 1%, that, in combination with other transactions and use taxes, would exceed the
above-described combined rate limit of 2%, if certain requirements are met. The bill would 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 above.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Hercules.
Existing law sets forth a comprehensive plan for the conservation of the waters of the San Francisco Bay and the development of its shoreline and delegates to the San Francisco Bay Conservation and Development Commission authority to implement the plan. Existing law establishes in the State Treasury a Bay Fill Clean-Up and Abatement Fund and requires moneys from specified sources to be paid into the fund, including all moneys collected civilly under specified proceedings. Existing law requires moneys in the fund to be available for the expenditure by the commission or the executive director, when appropriated by the Legislature, for specified purposes, including resource enhancement and remedial cleanup or abatement actions.
This bill would also require the money in the fund to be available for expenditure by the commission or the executive director, when appropriated by the Legislature, for the purpose of supporting enforcement activities. The bill would include funding of technology, services, programs, and personnel that directly support the above-described specified purposes as permissible expenditures.

Current Bill Text

Download Bill PDF