AB 719

Under current law, a county may impose a sales and use tax at the rate of 0.5

percent of the sales price of tangible personal property, goods, and services sold or

used in the county. The county sales and use tax may be imposed only for the purpose

of reducing the county's property tax levy.

Under the bill, a county may enact an ordinance to impose an additional sales

and use tax at the rate of no more than 1 percent of the sales price of tangible personal

property, goods, and services sold or used in the county if the county reduces its

property tax levy for the next year by an amount that will result in reduced property

tax receipts that approximately equal the amount of sales tax revenue generated in

the prior year by the additional sales tax that may be imposed under the bill. Also

under the bill, the ordinance imposing the additional sales tax may not take effect

unless it is approved by the electors of the county in a referendum.