1997 AGN FEB 18 I17 - Laserfiche WebLink

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1;3-�tiS-555'� ENV. SVCS. PAGE 03/04 Legislative Intent "This bill is intended to provide voters with the option to establish a permanent` and dependable source of revenue for local govemment in order to preserve and maintain public safety, public infrastructure, libraries and park facilities. Local government hw the resporssibility to provide safe communities by funding police, fire and emergency medical. services. The loss of revenue over the last 18 years has resulted in a local government financing crisis which risks the reduction of essential services including public safety. Taxpayers have demanded accountability, control of spending, and a return on their tax dollar investment. This bill will provide the voter with the opportunity to determine general need and the potential to directly benefit from tax dollars paid locally. This bill provides voters with the option of reducing the state sales tax rate by 1 %� and adding a 1`7o rate for cities and counties. This bill enables cities and counties to put the sales tax rate change before voters. If approved by majority vote, the rate change would be phased -in over 5 years commencing July 1, 19913--.20% the first year, .40% the 5econc year, .6010 the third year, .80% the fourth year, and 1.0% the fifth year each year thereafter. The rate change would only go into effect in those jurisdictions whose voters approved the measure. The revenue resulting from the rate change would be placed into a special fund and allocated only to those cities and counties whose voters approved the measure. The funds would be allocated based on population. Only the populations' of those cities and counties whose voters approved the measure would be used in calculating the revenue distribution. In effect, this bill provides voters within cities and counties the option to change the allocation of sales tax revenue so that cities and counties may receive general fund -revenue from an additional 1% of the sales tax rate without a tax increase. The per capita distribution method. will likely reduce the fiscalization of land use decisions and conflicts amongst cities for big box retailers as well as stimulate more housing development: The additional intent of this bill is to increase voter participation in how general tax revenues are distributed where taxpayer willingness "to pay more is lacking. This voter participation bill responds to the problem created by the highpublic demands for city services vis a vis: (1) current distribution of general fund revenues (property taxes, sales taxes, income taxes); (2) constitutional fina"C"19 restrictions as evidenced by Propositions 13, 62 and 218; and (3) taxpayer confusion about where their tax dollars are going. This bill isnot intended to impact education funding and stipulates that revenue redistributed through a voter-appToved sales tax rate change not affect the state's general fund obligation as required .by Proposition 38. This bill also stipulates that the state be respomible for its Proposition 98 obligation in a manner that dozes 'not affect local government revenue levels Or increase to�cai government service burdens."