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HomeMy WebLinkAboutMINUTES - 09121995 - C71 -71 TO: BOARD OF SUPERVISORS5;. _- _ ��.. Contra FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR Costa A County DATE: September 5, 1995 SUBJECT: / LEGISLATION - AB 55xx (Barbara Friedman)-LOCAL TAXON CIGARETTES SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT a position of SUPPORT for AB 55xx [Second Extraordinary Session] by Assemblywoman' Barbara Friedman, which, as introduced, would allow any Board of Supervisors to impose a tax countywide on cigarettes in any amount for general revenue purposes. BACKGROUND: Under current law, only the State has the authority to impose a tax on cigarettes. Assemblywoman Barbara Friedman has introduced AB 55xx in the Second Extraordinary Session of the Legislature- AB 55xx would authorize any Board of Supervisors to impose a tax in any amount on cigarettes throughout the county, including within the incorporated cities. The tax would be for general revenue purposes and could be spent for any legitimate purpose. Assemblywoman Friedman has asked this County whether it would be in a position to support AB 55xx. In view of the Board's past positions in support of smoke-free workplaces, smoke-free restaurants, in support of other efforts to prevent young people from beginning to smoke and in support of stop-smoking programs for those adults who wish to stop smoking, it appears that it would be appropriate for the _Board to indicate its support for AB 55xx. Based on the proportion of the statewide population living in this County, it is estimated, by Assemblywoman Friedman's office that a tax at 25¢ a pack would raise in the neighborhood of $11.5 million a year in Contra Costa County. CONTINUED ON ATTACHMENT: YES SIGNATURE: Y; RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES 6656� ACTION OF BOARD ON September 12 1995 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT-- I AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED September 12, 1995 Auditor-Controller PHIL BATCHELOR,CLERK OF THE BOARD OF Health Services Director SUPERVISORS AND COUNTY ADMINISTRATOR Les Spahnn; Heim, Noack, Kelly and Spahnn Bank of California Building 770 L Street, Suite 960 M382 (10/88) Sacramento, CA 95814 " DEPUTY 11 , CALIFORNIA LEGISLATURE-1995-96 SECOND EXTRAORDINARY SESSION ASSEMBLY BILL No. 55 Introduced by Assembly Members Friedman and Willie Brown (Principal coauthors: Assembly Members Katz, Kevin . Murray, and Villaraigosa) (Coauthors: Assembly Members Archie-Hudson, Escutia, Gallegos, Knox, Kuehl, McDonald, and Willard Murray) August 23, 1995 An act to add Article 1.5 (commencing with Section 30115) to the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST AB 55,as introduced,Friedman. Cigarette tax: local levies. The existing Cigarette and Tobacco Products Tax Law imposes taxes at a rate of 181/2 mills per cigarette, or 37¢ per package of 20, on every distributor for the distribution of each cigarette. The taxes imposed by that law on the privilege of distributing cigarettes and tobacco products are in lieu of all county, municipal, or district taxes on the distribution of cigarettes and tobacco products. This bill would,notwithstanding those provisions, authorize the board of supervisors of a county or city and county, by the adoption of an ordinance, to levy on a countywide basis for revenue purposes a tax on the sale, storage, use, distribution, or other consumption of cigarettes. The bill would authorize the county or city and county to contract with the State Board of Equalization to perform all 99 - 3 — AB 55 tax 1 county services, which is a matter of statewide concern, 2 thereby necessitating this act. yes. 3 SEC. 2. Article 1.5 (commencing with Section 30115) 4 is added to the Revenue and Taxation Code, to read: 5 ws: 6 Article 1.5. County Cigarette Tax Authority 7 11 of 8 30115. (a) The board of supervisors of a county or city 9 and county, by the adoption of an ordinance, may levy on alth 10 a countywide basis for revenue purposes a tax on the sale, rom 11 use, storage, distribution or other consumption of sing 12 cigarettes. 13 (b) The county or city and county may contract with alth 14 the State Board of Equalization to perform all functions r 19 15 incident to the administration or operation of the tax 16 ordinance of the county or city and county. ease 17 (c) This section does not prohibit the application of :han 18 Part 1 (commencing with Section 6001) , Part 1.5 nts, 19 (commencing with Section 7200) , or Part 1.6 20 (commencing with Section 7251) to the sale, storage, use, of 21 or other consumption of cigarettes or tobacco products. $7.6 :ine, Lxes, age, 'ield the Y to ty to ents ased !ssed )ility ntial O 99 ® 99