AB 761: Monterey-Salinas Transit District: sales and special taxes.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 13, 2025Chaptered by Secretary of State - Chapter 706, Statutes of 2025.
2. October 13, 2025Approved by the Governor.
3. September 16, 2025Enrolled and presented to the Governor at 2 p.m.
4. September 9, 2025In Assembly. Ordered to Engrossing and Enrolling.
5. September 9, 2025Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 10. Page 2698.).
6. July 10, 2025Read second time. Ordered to third reading.
7. July 9, 2025From committee: Do pass. (Ayes 4. Noes 1.) (July 9).
8. June 25, 2025From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 11. Noes 3.) (June 24). Re-referred to Com. on REV. & TAX.
9. May 28, 2025Referred to Coms. on TRANS. and REV. & TAX.
10. May 20, 2025In Senate. Read first time. To Com. on RLS. for assignment.
11. May 19, 2025Read third time. Passed. Ordered to the Senate. (Ayes 56. Noes 14. Page 1593.)
12. May 1, 2025Read second time. Ordered to third reading.