HomeMy WebLinkAboutMINUTES - 06161987 - 1.41 1-041 U"
TO: BOARD OF SUPERVISORS
FROM: Phil Batchelor Contra
County Administrator
Costa
DATE: June 10, 1987 Coup
SUBJECT:
Legislation: Senate Bill 416 (Kopp)
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACMROUND AND JUSTIFICATION
RECOMMENDATION-
Adopt aposition of support for SB 416 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 416 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 416 and this office recommends that the Board
support SB 416 .
CONTINUED ON ATTACHMENT: _ YES SIGNATURE:
X_ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
__X_ APPROVE //�,/%/A��®/J/qQ_/{[O//T�HER �,/,�
S 1 GNATURE(S 1: (./��cl/l.�-c(,r /1 . & �� .
ACTION OF BOARD ON 111IIP 16, 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.
cc: County Administrator ATTESTED JUN 1 6 1987
General Services Director
Auditor-Controller PHIL BATCHELOR, CLERK OF THE BOARD OF
Jackson/Barish & Associates SUPERVISORS AND COUNTY ADMINISTRATOR
D. J. Smith Associates
M382/TS83 Director BY DEPUTY
t� Senator Kopp