TO: AC Transit Board of Directors
FROM: Jill A. Sprague, General Counsel
SUBJECT: Taxing Authority
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving report regarding the District's authority to levy taxes and options for revenue generating ballot measures. [Requested by Director Peeples - 12/9/20]
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
The District relies on multiple revenue sources to fund operations and capital improvements. Given the impact of the pandemic on fare box revenue, the District may need to become even more reliant on tax revenue. Understanding what taxing authority is available to the District will help focus public opinion polling to determine what revenue ballot measures might be successful.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact associated with this report. Pursuing ballot measures to increase tax revenue to the District could contribute to greater financial stability.
BACKGROUND/RATIONALE:
I. Current Locally Enacted Funding Sources
The District currently receives tax funding from multiple local sources, including:
* Local property taxes in Alameda and Contra Costa Counties.
* The District's parcel tax in Special Transit Service District 1 (Measure VV/C1, expires in 2039).
* AB 1107 imposed a 0.5% retail transaction and use tax in Alameda and Contra Costa counties and the City and County of San Francisco (75% is allocated to BART and 25% is allocated between AC Transit and SFMTA).
* Alameda County Measure BB renewed and increased a preexisting 0.5% retail transaction and use tax known as Measure B, resulting in a 1% sales tax throughout Alameda County through March 2045. The District is authorized to receive 23.3% of these taxes on the condition that the money be used for service exclusively in Alameda County.
* Contra Costa County has a similar transportation retail transaction and use tax, known as Measure J, that is 0.5%, which continues until 2034. ...
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