Newsom signs Asm. Nguyen's AB 1223, expanding STA's ability to seek sales tax hikes
Since 2016, the STA has made two efforts to raise sales taxes countywide for funding several transportation projects.
Gov. Gavin Newsom on Monday signed Assembly Bill 1223, a measure sponsored by Assemblymember Stephanie Nguyen ( D-Elk Grove) and Maggie Krell (D - Sacramento) that modifies how the Sacramento Transportation Authority (STA) can raise and spend money on transportation. The measure will allow, among other things, for the STA to seek sales tax hikes in specific jurisdictions, like the City of Elk Grove, within Sacramento County, rather than countywide.
In an opinion piece published yesterday before Newsom's approval, Jon Coupal of the Howard Jarvis Tax Association said, "AB 1223 would allow, among other things, for STA to impose a tax on a geographic area of its choosing in Sacramento County, avoiding areas where voters would oppose the tax. It would also specify a lot of government involvement in a potential citizens' initiative."
Since 2016, the STA has made two efforts to raise sales taxes countywide for funding several transportation projects. 2022, were rejected by voters after an unusual variety of groups, ranging from tax advocacy groups to environmentalists banded together in oppostion.
With minimal campaign funding, this eclectic group of opponents convinced voters that the proposed multi-billion-dollar tax hikes amounted to a public subsidy benefiting billionaire real estate developers.
In a signing statement dated Oct. 13, Newsom said the transit systems supported by bills he signed “bear the responsibility of showing how the additional revenues, if approved by voters, will produce tangible outcomes and measurable results,” citing the need for clear priorities, strong oversight, and innovation after pandemic disruptions.
AB 1223 also designates STA as eligible to issue bonds for high-occupancy toll lanes or other toll facilities approved for the region. Those bonds may be repaid from toll revenue or other funds — including sales-tax proceeds — but require coordination and an expenditure plan review with the Capital Area Regional Tolling Authority.
Beyond roads and transit, allowable spending now includes “infrastructure that supports infill or transit-oriented development,” such as water, stormwater, and wastewater projects, with a 5 percent cap on the share for utility-type infrastructure.
With Newsom's approval, Coupal noted in his opinion piece that, "The Howard Jarvis Taxpayers Association is collecting signatures for an initiative that would entirely close the statewide loophole that allows special taxes to evade the two-thirds vote requirement. Voters can get the petition at SaveProp13.com"
