AB 761 California Assembly · 2025-2026 Regular Session

Monterey-Salinas Transit District: sales and special taxes.

Summary

Existing law creates the Monterey-Salinas Transit District to include all of the County of Monterey, with specified powers and duties related to public transit service. Existing law prohibits the district from imposing sales or special taxes, but authorizes the district, with the concurrence of a majority of the member jurisdictions represented on the board of directors, to submit a ballot measure for the imposition of those taxes to voters of the district. This bill would prohibit the submission of a measure for the imposition of a sales or special tax to the voters of the district under this authority on or after January 1, 2026. Existing law authorizes various local governmental entities, subject to certain limitations and approval requirements, to levy a transactions and use tax, in accordance with the procedures and requirements set forth in the Transactions and Use Tax Law, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in the county not exceed 2%. This bill would authorize the Monterey-Salinas Transit District, upon the affirmative vote of at least 23 of the board of directors, to submit to the voters of the district a measure proposing a retail transactions and use tax ordinance in accordance with the Transactions and Use Tax Law. The bill would also separately authorize the district to impose a transactions and use tax for the support of its transportation services at a rate of no more than 0.25% that would, in combination with other transactions and use taxes, exceed the above-described combined rate limit of 2%, if the ordinance proposing the tax is approved by the voters before January 1, 2035, subject to applicable voter approval requirements, as specified. The bill would prohibit a transactions and use tax rate imposed pursuant to this authority from being considered for purposes of that combined rate limit described above.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Sep 2025

Assembly Passage

May 2025

Senate Passage

Sep 2025

Signed into Law

Oct 2025

Introduced Feb 18, 2025 Signed Oct 13, 2025

Maddy AI version diff · 5 comparisons

What changed between versions

03/28/25 - Amended Assembly → 04/30/25 - Amended Assembly · 4 edits · Apr 30, 2025

MODERATE

AB 761 was restructured to eliminate a duplicate and conflicting version of Section 1 that had consolidated tax rate limits directly into the Public Utilities Code. The amended version cleanly separates the Public Utilities Code amendment (Section 1) from the new Revenue and Taxation Code chapter (Section 2), properly numbers all subsections, and corrects an erroneous cross-reference. The substantive policy - authorizing a 0.25 percent transactions and use tax exempt from the 2 percent combined rate limit - remains unchanged.

TECHNICAL

Removed a duplicate alternative version of Section 1 that had placed the 0.25 percent tax rate cap and combined-rate-limit exception directly in Public Utilities Code Section 106060(a)(1)-(3). The new version keeps those details only in the separate Revenue and Taxation Code chapter (Section 7300.5), avoiding conflicting provisions.

Corrected a cross-reference in Section 106060(c) from 'Section 7003.5' to 'Section 7300.5', fixing an erroneous citation to the new chapter being added by this bill.

Properly numbered the provisions regarding fees, funding sources, and fare-setting authority as subsections (d) and (e) of Section 106060, which were previously unnumbered or inconsistently labeled.

SCOPE

The digest was reorganized to lead with the prohibition on submitting sales or special tax measures after January 1, 2026, then describe the new transactions and use tax authority, making the two distinct provisions clearer to readers.

02/18/25 - Introduced → 03/28/25 - Amended Assembly · 5 edits · Mar 28, 2025

MODERATE

The amended version restructures how the Monterey-Salinas Transit District's transactions and use tax authority is codified, moving the core tax imposition provisions into a new Chapter 3.95 of the Revenue and Taxation Code (Sections 7300.5-7300.6) rather than keeping them solely in the Public Utilities Code. It also adds a new January 1, 2026 deadline prohibiting the submission of sales or special tax ballot measures, and includes a self-repealing provision if no tax ordinance is approved by January 1, 2035.

SCOPE

Adds a new Chapter 3.95 (Sections 7300.5-7300.6) to Part 1.7 of Division 2 of the Revenue and Taxation Code, creating a dedicated statutory framework for the district's transactions and use tax authority, including the 0.25 percent rate cap, exemption from the 2 percent combined county rate limit, and voter approval requirements under Article XIII C.

TIMELINE

Adds a new prohibition: the district may not submit a sales or special tax ballot measure to voters on or after January 1, 2026. This is a much earlier deadline than the existing January 1, 2035 deadline for the transactions and use tax.

Adds a self-repealing provision (Section 7300.6): if no ordinance proposing the transactions and use tax is approved by voters as of January 1, 2035, the entire new chapter is repealed automatically.

REQUIREMENT

Restructures Section 106060 of the Public Utilities Code: the old subsection (a) with its three paragraphs is split into separate subsections. Subsection (a) now covers only sales/special tax ballot measures (with the new 2026 deadline), subsection (b) covers the T&U tax ordinance submission authority, and a new subsection (c) cross-references the new Chapter 3.95 for actual tax imposition.

DEFINITION

The bill's stated purpose is expanded from merely amending Section 106060 of the Public Utilities Code to also adding and repealing Chapter 3.95 of the Revenue and Taxation Code, reflecting the broader statutory footprint of the amended bill.

Floor votes · Senate Sep 9, 2025 · Assembly May 19, 2025

How they voted

30–10

Passed

Total votes 40

Sep 9, 2025

D Democratic30

30 Yea

100% Yea

R Republican10

10 Nay

100% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Oct 13, 2025

Signed into law

Approved by the Governor.

legislature

Sep 9, 2025

Lower · Passed

In Assembly. Ordered to Engrossing and Enrolling.

lower

Sep 9, 2025

Upper · Passed

Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 10. Page 2698.).

upper

Jul 9, 2025

Upper · Passed

From committee: Do pass. (Ayes 4. Noes 1.) (July 9).

upper

Jun 25, 2025

Upper · Passed

From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 11. Noes 3.) (June 24). Re-referred to Com. on REV. & TAX.

upper

May 28, 2025

Committee

Referred to Coms. on TRANS. and REV. & TAX.

upper

May 19, 2025

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 14. Page 1593.)

lower

Apr 30, 2025

Lower · Passed

Read second time and amended. Ordered returned to second reading.

lower

Apr 29, 2025

Introduced

From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (April 28).

lower

Apr 21, 2025

Lower · Passed

In committee: Hearing postponed by committee.

lower

Apr 10, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 8. Noes 2.) (April 9). Re-referred to Com. on REV. & TAX.

lower

Apr 1, 2025

Committee

Re-referred to Com. on L. GOV.

lower

Mar 28, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.

lower

Mar 3, 2025

Committee

Referred to Coms. on L. GOV. and REV. & TAX.

lower

Feb 19, 2025

Lower · Passed

From printer. May be heard in committee March 21.

lower

1 primary · 0 co-sponsors