Bill > AB761

This bill modifies the legal authority of the Monterey-Salinas Transit District (MST) regarding sales and special taxes by providing new options for generating transportation funding. Specifically, the bill prohibits the district from submitting ballot measures for sales or special taxes after January 1, 2026, but simultaneously creates a new mechanism allowing the district to impose a transactions and use tax (a type of sales tax) under certain conditions. The district can now submit a transactions and use tax measure to voters if at least two-thirds of its board of directors approve, and the tax can be set at up to 0.25% even if this would technically exceed the standard 2% combined tax rate limit for the county. This special tax authorization is time-limited, expiring on January 1, 2035 if not approved by voters, and requires voter approval through a ballot measure consistent with California constitutional requirements. The bill essentially provides MST with a targeted, temporary pathway to potentially increase its transportation funding through a voter-approved sales tax, despite previous restrictions on its taxing authority.

Budget and Finance, Government Affairs, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB761