HomeMy WebLinkAboutMINUTES - 10131987 - 1.4 (4) 1-040
COUNTY COUNSEL'S OFFICE
CONTRA COSTA COUNTY
MARTINEZ, CALIFORNIA
Dare: eptember 25, 1987
To: Phil Batchelor, County Administrator
Attn: Claude VanMarter, Assistant Administrator
r
From: Victor J-. Westman, County Counsel
By: Dennis C. Graves, Deputy County Co '
Re: Tax on Video Cassettd Movie Rentals /
SUMMARY: Board may only propose a special tax on video
cassette rentals if the Legislature specifically authorizes such a
County tax. Also,voter approval would be required for any such
special tax.
This responds to your memorandum of September 21, 1987,
subject .as above, which poses the following question:
QUESTION:
May the Board of Supervisors, in the absence of further
enabling State legislation, impose a tax on the rental
of movie videos, with the proceeds dedicated' to library
services?
ANSWER: No. Also, -any such special tax would have to be
approved by a two-thirds vote.
DISCUSSION: The proposal is for a five -cent tax on each
movie video cassette rental, with the proceeds to be- restricted
to a special library service fund rather than the general fund.
It should first be noted that this would be a special tax,
because the proceeds are earmarked for a special purpose. (Gov.
C. § 53721. ) As you know, special taxes are subject to a two-
thirds vote approval of the electorate. (Gov. C. § 53722. )
Although it is arguable that Government Code § 50077 (added by
Stats. - 1979, Chap. 903, § 1, and last amended by Stats. 1985,
Chap. 529, § 2) is general authority for the Board to propose
virtually any type of non-ad valorem special tax, Government Code
§ 53727 (enacted by initiative passed on November 4, 1986-Prop. -
62) -has apparently invalidated this -pre-1986 statutory special tax
authority so that specific legislative authorization would now be
required for any particular type of special tax the Board may wish
to propose to the electorate.
Incidentally, "general" taxes (defined as taxes where the
proceeds are used for general governmental' purposes, i-.e. , go into
the general fund) would also require specific enabling
legislation, although voter approval need only be by a simple
J•
Claude VanMarter September 25, 1987
majority. (Gov. C. H 53721, 53723, 53727. )
Finally, it should be noted that a special "sales" tax
proposed to be levied only on the rental of movie videos may be
subject to legal attack as an unconstitutional discriminatory tax
interfering with video renters ' right to free speech in the same
manner that Pleasant Hills ' theater admissions tax was
successfully challenged (Festival Enterprises, Inc. v. City of
Pleasant Hill [1986] 182 Cal.App. 3d 960) .
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