(1) 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%. Existing law also authorizes the board of the San Mateo County Transit District to adopt a retail transactions and use tax ordinance in accordance with the Transactions and Use Tax Law.
This bill would authorize the board, unless the transactions and use tax described in paragraph (2) has been imposed, to exceed that 2% limit to impose a retail transactions and use tax set at a rate of no more than 0.5%, if
approved by the board before January 1, 2026. The bill would require the board, in concurrence with the county and for purposes of this tax, to develop an expenditure plan of projects, programs, and services that may include, among other things, public transit, local streets and roads, state highways, bicycle and pedestrian facilities, intelligent transportation systems, and transportation planning. The bill would authorize the board to administer the expenditure plan in its entirety, or to transfer proceeds of the tax to the San Mateo
County Transportation Authority for administration by that authority consistent with the expenditure plan. The bill would authorize the authority to administer those funds, consistent with the expenditure plan.
(2) Existing law authorizes the County of San Mateo to impose a transactions and use tax for countywide transportation programs at a rate of no more than 0.5% that, in combination with other taxes imposed in accordance with the Transactions and Use Tax Law, would exceed the 2% combined rate limit.
This bill would prohibit the County of San Mateo from imposing this transactions and use tax if the retail transactions and use tax described in paragraph (1) has been imposed by the board of the San Mateo County Transit District.