Action Guide November 3, 1998

DESCRIPTION

This is a legislative constitutional amendment that would authorize local governments to voluntarily enter into sales tax revenue sharing agreements by a two-thirds vote of the local city council or board of supervisors of each participating jurisdiction.

BACKGROUND

This measure would not change the total local tax revenues going to the cities and counties making the agreements, but would allow them to shift sales tax revenues among themselves. Current law allows cities and counties to make such agreements only by a majority vote of the people in each affected jurisdiction, but this has not been utilized by any local jurisdictions as far as is known. Instead, local governments have competed for new businesses that would produce added sales tax revenue with little regard for sound land use planning.

IMPORTANT POINTS

• The measure will not raise your taxes.

• Businesses which generate sales taxes and provide services and employment opportunities are so attractive to local communities that they often engage in bidding wars to attract or retain them. This measure would encourage local governments to cooperate on a more rational land use planning that would benefit all the affected communities.

Supporters Signing ballot argument for: George C. Runner, Jr. Assembly Member, 36th District Tom Torlakson Assembly Member, 11th District Rex S. Hime, President California Business Properties Association

Opponents Signing ballot argument against: No opposition argument submitted.