HomeMy WebLinkAboutMINUTES - 05051987 - 1.29 ln'1
To'. BOARD OF SUPERVISORS
FROM: Phil Batchelor Contra
County Administrator
Costa
DATE: April 28, 1987 County
SUBJECT:
Legislation: Senate Bill 204 (Kopp)
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND. AND JUSTIFICATION
RECOMMENDATION•
Adopt a position of support for SB 204 by Senator Quentin Kopp
which would exempt counties, cities, special districts, and
school districts from paying sales tax on otherwise taxable items
they purchase.
BACKGROUND:
Local government jurisdictions are currently responsible for
paying sales tax on items they purchase in the same way that
private companies and individuals are. This practice has been
criticized in the past since there is a long-standing principle '
under which various levels of government do not tax each other.
The State, for instance, does not pay property tax on property it
owns in the County. Local governments do not pay vehicle license
fees to the State on vehicles they own.
Senator Kopp has introduced SB 204 which extends this principle
to the payment of sales tax by units of local government. Contra
Costa County purchases approximately $20 million a year in sales
taxable items. The sales tax on purchases of this size equals
approximately $1. 3 million a year. While there would be some
offsetting loss in revenue because the County' s sales tax
proceeds would be reduced by the overall loss in sales tax
payments, the net savings to the County is estimated to exceed
$1,000,000 a year.
It, therefore, appears beneficial to the County to support the
passage of SB 204 and this office recommends that the Board
support SB 204 .
CONTINUED ON ATTACHMENT: _ YES SIGNATURE:
X RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
X APPROVE OTHER
SIGNATURE S :
ACTION OF BOARD ON May _r'f, 1987 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT } 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.
County Administrator MAY 5 � �
cc: General Services Director ATTESTED
Audi tor-Control 1 er PHIL BATCHELOR, CLERK OF THE BOARD OF
Jackson/garish & Associates SUPERVISORS AND COUNTY ADMINISTRATOR
D. J. Smith Associates a 0*
zt
CSAC Director BY C, ,DEPUTY
M382/7-83 Senator Quentin Kona