Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Additional Local Taxes

CHAPTER 2.5. LOCAL EDUCATION FINANCE*

7286.1. Authorization to levy; San Francisco City and County. (a) Upon the adoption of a resolution as specified by Section 7286.2 by the governing boards of the San Francisco Unified School District and the San Francisco Community College District, there shall be established in the City and County of San Francisco an educational financing authority in accordance with that resolution. Any authority so established may adopt an ordinance imposing for the authority's general purpose a transactions and use tax at a rate of 0.25 percent, if all of the following requirements are met:

(1) The ordinance proposing that tax is approved by a two-thirds vote of the board of directors of the authority and by a majority of the qualified voters of the county voting on the measure, or any otherwise applicable voter requirement.

(2) The ordinance requires that the tax conform with Part 1.6 (commencing with Section 7251).

(3) The ordinance provides, upon the approval of a majority the qualified voters of the city and county voting on the approval of the ordinance, for an increase in the appropriations limit established pursuant to Article XIII B of the California Constitution for each school district within the city and county in an amount equal to, or greater than, the revenues derived from any transactions and use tax imposed pursuant to the ordinance that are allocated and received by that entity each fiscal year.

(4) The ordinance provides that the increases in appropriations limits shall terminate no later than four years after the effective date of the ordinance, and may be continued for successive periods not to exceed four years each upon the approval of a majority of the qualified voters of the school district voting on each continuation.

(b) With respect to the approval by the voters of an ordinance specified in subdivision (a), the city and county shall, if the ordinance so requests, call a special election for that purpose, to be held on a date specified by the ordinance, not less than 60 nor more than 103 days after the ordinance is adopted by the governing board of the educational finance authority.

(c) If any provision of this section or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of this section that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.

7286.2. Resolution provisions. (a) A resolution establishing an educational financing authority pursuant to Section 7286.1 shall provide for the establishment of an educational finance authority for the general purpose of providing financial assistance to each school district within the city and county. The resolution shall require that the authority be governed by a board of directors. The board of directors of the authority shall consist of the members of the governing boards of the unified school district and the community college district. The resolution shall designate the president of the unified school district governing board as the chairperson of the board of directors.

(b) The resolution shall require the authority to allocate revenues derived from a transactions and use tax imposed pursuant to Section 7286.1 directly to each school district within the city and county on the basis of an equal amount for each unit of average daily attendance, as defined by law.

(c) The resolution shall authorize the authority to exercise all powers necessary to perform collection, administration, and allocation duties with respect to the transactions and use tax, in an manner consistent with Part 1.6 (commencing with Section 7251).

(d) The resolution shall provide that the educational finance authority shall cease to exist 90 days after the expiration of any transactions and use tax imposed by that authority.

7286.3. Revenues; limitations. (a) Revenues from any transactions and use tax imposed pursuant to Section 7286.1 shall not be considered "allocated local proceeds of taxes" pursuant to Section 41202 of the Education Code or paragraph (2) of subdivision (b) of Section 8 of Article XVI of the California Constitution.

(b) Revenues derived from any transactions and use tax imposed pursuant to Section 7286.1 shall supplement, and shall not be offset against, the allocations made pursuant to Section 2558 or 42238 of the Education Code.

7286.4. Election costs. The city and county shall be reimbursed for all costs of conducting elections for purposes of imposing a transactions and use tax pursuant to this chapter. In the event the ordinance imposing the tax is approved by the voters, the costs of conducting the election shall be reimbursed by the educational financing authority from the proceeds of the tax. In the event the ordinance imposing the tax is not approved by the voters, the costs of conducting the election shall be reimbursed by the school districts in proportion to the amount of tax revenues each agency would have received had the ordinance been approved.

7286.5. Repeal date. (a) Unless the ordinance imposing the tax specifies an earlier date, any transactions and use tax imposed pursuant to this chapter shall be repealed on the later of the following dates:

(1) On January 1, 1993.

(2) The date that subdivision (a) of Section 6051.5 and subdivision (a) of Section 6201.5 cease to be operative pursuant to those sections.

(b) This chapter shall remain in effect only until the later of the following dates, and as of that date is repealed:

(1) On January 1, 1993.

(2) The date that subdivision (a) of Section 6051.5 and subdivision (a) of Section 6201.5 cease to be operative pursuant to those sections.

7286.6. "School district." For purposes of this chapter, a "school district" includes a community college district.


* Chapter 2.5 was added by Stats. 1991, Ch. 369, in effect September 5, 1991.