California – Bay Area Traffic and Transportation Funding Act Rate Cap Eliminated

SALT Report 3101 – Recently enacted legislation in California eliminates the1% limit on the combined local retail transactions and use tax rate under the Bay Area County Traffic and Transportation Funding Act.  By eliminating the cap, the City and County of San Francisco will be able to increase the local retail transactions and use tax to the 2% maximum authorized by the TUT law.

In addition, the Act authorizes the formation of county transportation authorities in each of the nine Bay Area counties, and provides for the imposition of a retail transactions and use tax of either 1/2 of 1% or 1%, pending voter approval.

These provisions are effective January 1, 2014.

For Further Information

California State Legislature – Assembly Bill 1112, Laws 2013