SB 1408
Contra Costa Transportation Authority: transactions and use tax.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
In Floor Process
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Bill overview
This bill allows the Contra Costa Transportation Authority to impose a transactions and use tax, capped at 1%, to fund countywide transportation programs. This tax would be in addition to existing taxes, but the combined rate of all taxes in the county cannot exceed 2%. The authority must receive voter approval for the tax to be implemented, and the tax will not be counted towards the combined rate limit. The authorization for this tax expires on January 1, 2045, unless reauthorized.
Key provisions
- Authorizes the Contra Costa Transportation Authority to impose a 1% transactions and use tax.
- The tax is for supporting countywide transportation programs.
- The combined rate of all taxes in Contra Costa County cannot exceed 2%.
- Requires voter approval for the tax to be implemented.
- The tax will not be counted towards the combined rate limit.
- The authorization for the tax expires on January 1, 2045.
Who is affected
- Residents of Contra Costa County
- The Contra Costa Transportation Authority
- Businesses operating in Contra Costa County
- County taxpayers
- Transportation users in Contra Costa County
Notable changes
- Establishes a specific mechanism for the Contra Costa Transportation Authority to levy a transactions and use tax.
- Sets a limit on the tax rate (1%) and the combined tax rate (2%).
- Requires voter approval, adding a democratic element to the tax implementation.
Arguments in favor
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SB1408:v97#DOCUMENT
Bill Start
| Amended IN Senate April 14, 2026 |
| Amended IN Senate March 23, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Senate Bill
No. 1408
| Introduced by Senator Arreguín |
| February 20, 2026 |
An act to add and repeal Chapter 3.66 (commencing with Section 7290.7) of Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Chapter 3.66 (commencing with Section 7290.7) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTER 3.66. Local Government Finance in the County of Contra Costa
7290.7.
(a) Notwithstanding any other law, the Contra Costa Transportation Authority may impose or extend a transactions and use tax for the support of countywide transportation programs at a rate of no more than 1 percent that would, in combination with all taxes imposed pursuant to Part 1.6 (commencing with Section 7251), exceed the limit established in Section 7251.1, if all of the following requirements are met:
(1) The Contra Costa Transportation Authority adopts an ordinance proposing the transactions and use tax by any applicable voting approval requirement.
(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance in accordance with the California Constitution.
(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), other than Section 7251.1.
(b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limit established by Section 7251.1.
7290.8.
If an ordinance proposing the transactions and use tax authorized by this chapter is not approved pursuant to Section 7290.7 on or before January 1, 2045, this chapter shall be repealed on January 1, 2045.
SEC. 2.
The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances in the County of Contra Costa.