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HomePublic Utilities CodeDiv. 10Pt. 16Ch. 4Art. 5§ 105115 District Retail Tax Approval

§ 105115 District Retail Tax Approval

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 105115 District Retail Tax Approval

This law lets the board put a sales‑tax measure on the ballot if enough directors agree, and it also lets voters start a tax measure if it meets two simple rules: the tax must be at least 0.25% and the money must go to a rail system.

Key Takeaways

  • •The board needs a majority vote plus at least three directors from each county to put a tax measure on the ballot.
  • •Voters can also start a tax measure, but the tax must be at least 0.25%.
  • •All money from the tax must be used for the district’s rail transit system.

Example

A city wants to build a new light‑rail line. The board of the transit district gets a vote from a majority of its directors, with at least three directors from each county, and then puts a sales‑tax proposal on the ballot. Or, a group of voters gathers signatures and proposes a 0.5% sales tax to fund the rail line, meeting the voter‑initiative rules.

Because the board got the required votes, they can submit the tax measure to voters. If the voters go the initiative route, their proposal is allowed because the tax rate is higher than 0.25% and the money will be used for the rail system.

How to Calculate

Minimum tax rate = (1/4) × 1% = 0.25% (or 0.0025 as a decimal)

  1. Write 1% as a decimal: 1% = 0.01.
  2. Multiply 0.01 by 1/4 (which is 0.25).
  3. The result is 0.01 × 0.25 = 0.0025, which is 0.25%.

A voter initiative proposes a 0.5% sales tax to fund the rail system.

Result: 0.5% is greater than the required minimum of 0.25%, so the rate meets the law’s requirement.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 105115 District Retail Tax Approval

(a) Upon the affirmative vote of a majority of the directors, which shall include an affirmative vote of at least three directors from each county within the district appointed pursuant to subdivisions (a), (b), (c), (d), (e), and (f) of Section 105020, the board may by resolution submit to the voters of the district a measure proposing a retail transactions and use tax ordinance in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code. (b) Notwithstanding any other law, the special taxes authorized in this article may also be imposed by a qualified voter initiative pursuant to Chapter 4 (commencing with Section 9300) of Division 9 of the Elections Code if the qualified voter initiative complies with both of the following requirements: (1) The qualified voter initiative proposes a rate for the retail transactions and use tax that is no less than one-quarter of 1 percent. (2) The qualified voter initiative proposes expenditures for the revenues generated from the retail transactions and use tax that are consistent with the purpose of providing a rail transit system under the jurisdiction of the district. (Amended by Stats. 2024, Ch. 866, Sec. 7. (SB 904) Effective January 1, 2025.)

Last verified: January 11, 2026

Key Terms

retail transactions and use tax ordinancequalified voter initiativespecial taxesrail transit system

Related Statutes

  • § 100100 General Manager Powers
  • § 101135 Board Vacancy Appointments
  • § 101136 Filling Board Vacancies
  • § 102180 General Manager Powers
  • § 105072 Rail Transit Insurance Authority

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 105115.
View Official Source