Chapter 1 - Retail Transactions and Use Tax Authorization

California Government Code — §§ 67730-67736

Sections (4)

Added by Stats. 2025, Ch. 740, Sec. 4. (SB 63) Effective January 1, 2026.

(a)The board may impose a retail transactions and use tax ordinance applicable to the entire district in accordance with Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code if the electors voting on the measure vote to approve its imposition at the election described in Section 67734 in accordance with this title and Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code.

(b)The board may impose a retail transactions and use tax pursuant to subdivision (a) that, in combination with all taxes imposed in accordance with Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, exceeds the limit established in Section 7251.1 of the Revenue and

Taxation Code.

(c)The board, in the ordinance, shall do all of the following:

(1)State the nature of the tax to be imposed.

(2)Provide the tax rates as follows:

(A)Except as provided in subparagraph (B), the tax rate shall be one-half of 1 percent in each county comprising the district.

(B)The tax rate in the City and County of San Francisco shall be 1 percent.

(3)Specify the period during which the tax will be imposed, which shall be 14 years beginning on the date the ordinance becomes operative.

(4)Specify the purposes for which the revenue derived from

the tax will be used, consistent with Chapter 3 (commencing with Section 67750).

(d)Notwithstanding Section 7251.1 of the Revenue and Taxation Code, the tax rate authorized pursuant to this section shall not be considered for purposes of the combined rate limit established by Section 7251.1 of the Revenue and Taxation Code.

§ 67732

Added by Stats. 2025, Ch. 740, Sec. 4. (SB 63) Effective January 1, 2026.

(a)Notwithstanding Section 9300 of the Elections Code or any other law, the taxes authorized by Section 67730 may also be imposed by a qualified voter initiative pursuant to Chapter 4 (commencing with Section 9300) of Division 9 of the Elections Code if the electors voting on the measure vote to approve its imposition at the election described in Section 67734 in accordance with the requirements of this title and Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code.

(b)In addition to the procedures set forth in Chapter 4 (commencing with Section 9300) of Division 9 of the Elections Code, if an ordinance containing a tax authorized by this title is proposed by an initiative petition, the initiative shall

comply with all of the substantive requirements applicable to a tax imposed by the board pursuant to this title, including the requirement that the proceeds of the tax be distributed, transferred, allocated, and expended pursuant to Chapter 3 (commencing with Section 67750).

(c)Consistent with Chapter 4 (commencing with Section 9300) of Division 9 of the Elections Code, a ballot title and summary are not required for an initiative petition proposed pursuant to this chapter.

§ 67734

Added by Stats. 2025, Ch. 740, Sec. 4. (SB 63) Effective January 1, 2026.

A tax proposed pursuant to this title may only be placed on the ballot for the November 3, 2026, statewide general election and shall be submitted to the voters of the entire district in accordance with Chapter 2 (commencing with Section 67740).

§ 67736

Added by Stats. 2025, Ch. 740, Sec. 4. (SB 63) Effective January 1, 2026.

(a)Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure shall apply to any judicial action or proceeding to validate, attack, review, set aside, void, or annul a tax ordinance approved by the voters pursuant to this title.

(b)Notwithstanding Section 860 of the Code of Civil Procedure, the district may, upon the approval of the tax ordinance by the voters pursuant to this title, and for 30 days thereafter, bring an action in the superior court of the county in which the principal office of the district is located to determine the validity of that matter. The action shall be in the nature of a proceeding in rem.

(c)Notwithstanding

Section 863 of the Code of Civil Procedure, if proceedings have not been brought by the district pursuant to subdivision (b), any interested person may bring an action within the time and in the court specified by subdivision (b) to determine the validity of that matter. The district shall be a defendant and shall be served with the summons and complaint in the action in the manner provided by law for the service of a summons in a civil action. In that action the summons shall be in the form prescribed in Section 861.1 of the Code of Civil Procedure except that in addition to being directed to “all persons interested in the matter of [specifying the matter],” it shall also be directed to the district. If the interested person bringing that action fails to complete the publication and other notice as may be prescribed by the court in accordance with Section 861 of the Code of Civil Procedure and to file proof thereof in the action within 30 days from the filing of their complaint, the action shall be

forthwith dismissed on the motion of the district unless good cause for such failure is shown by the interested person.

(d)Any appeal from the final judgment in an action or proceeding brought pursuant to this section shall be filed within 30 days after entry of the judgment.