Would continue the existing sales tax at the current rate of 0.5% for 30 years and authorize the Transportation Authority to issue up to $1.91 billion in bonds to be repaid with the proceeds of the tax. Proposition L requires at least ⅔ of voters approving to pass.
Fiscal Impact: Would generate approximately $100 per year in tax revenue, increasing to approximately $236 million per year by fiscal year 2052-53.
Next San Francisco County Measure: Proposition M
Pro:
Proponents of Proposition L argue that we need smoother and safer streets, on-time and reliable transit, and alternatives to driving that can help reduce the emissions that cause global warming. They argue for 30 years, transportatlon sales tax revenue has improved our streets and transit systems, and leveraged billions of dollars in state and federal matching funds, and the expenditure plan was crafted by a coalition of communiry members from across the city to ensure that funds are spent equitably in every San Francisco neighborhood.
A YES vote on this measure means: The existing sales tax would be continued at the current rate of 0.5% for 30 years and authorize the Transportation Authority to issue up to $1.91 billion in bonds to be repaid with the proceeds of the tax.
KeepSFMoving.com (Campaign Website)
Con:
Opponents of Proposition L argue that the 0.5% sales tax we have already continues until 2033 (10 more years) and transportation funding is long-term and secure. They argue the reason it is being proposed for renewal now is to borrow more money, and right now, the SFCTA can only borrow against the next 10 years of sales taxes.
A NO vote on this measure means: The existing sales tax would not be continued at the current rate of 0.5% for 30 years and theTransportation Authority would not be authorized to issue up to $1.91 billion in bonds to be repaid with the proceeds of the tax.
Existing Law
Existing Article 12-D of the Business and Tax Regulations Code, known as the "Uniform Local Sales and Use Tax Ordinance of the City and County of San Francisco," establishes and implements a transactions and use tax (sometimes called a "sales tax") on retailers for the privilege of selling tangible personal property at retail in the City.
Division 12.5 (commencing with Section 131000) of the Public Utilities Code and Part 1.6
(commencing with Section 7251) of Division 2 of the Revenue and Taxation Code authorize the San Francisco County Transportation Authority (Transportation Authority) to impose an additional local sales tax within San Francisco, if the tax is approved by the Board of Supervisors and a two-thirds vote of the people. The proceeds of the tax must be spent on transportation projects set forth in a transportation expenditure plan approved by the Metropolitan Transportation Commission, the Board of Supervisors, and the voters.
Since 1990, the Transportation Authority has imposed a 0.5% sales tax under the above authorities, which is codified in Article 14 of the Business and Tax Regulations Code. The Transportation Authority administers the funding of the projects and programs set forth in the existing transportation expenditure plan (adopted by the voters in 2003 as part of Proposition K), and is authorized to issue up to $1,880,000,000 in bonds secured by revenues from the sales tax.
Amendments to Current Law
This ordinance would amend existing Article 14 of the Business and Tax Regulations Code to continue the sales tax at the existing 0.5% rate for 30 years to pay for the transportation projects and programs set forth in a new 2022 Transportation Expenditure Plan. This ordinance authorizes the Transportation Authority to issue up to $1,190,000,000 in bonds that would be repaid with the proceeds of the tax. This ordinance would also increase the Transportation Authority's appropriations limit under Article XIII B of the California Constitution for the next four years by the amount of the tax collected.
Background Information
The combined state and local sales and use tax rate in the City is 8.625%. The Transportation Authority has received 0.5% of the combined rate since the voters approved Proposition B in 1989 and Proposition K in 2003. The tax imposed by this ordinance is a continuation of the Transportation Authority's existing 0.5% rate.