Pass: 2993 / 59.01% Yes votes ...... 2079 / 40.99% No votes

See Also: Index of all Propositions

California Revenue and Taxation Code Section 7285.9 authorizes the City Council to levy a transaction and use tax at a rate of 0.25 percent or a multiple thereof, provided the tax is approved by a majority of the voters voting in an election on that issue. If approved, the tax would go into effect October 1, 2006 (the "Operative Date").

Proposition "D" states that the one percent sales tax is to be used "for City services, facilities and programs." Because this sales tax would be a "general tax," the tax would go into the City's general fund and could be used for any legal municipal purpose. The City would not be legally bound in any way to use the tax monies for any special purpose or for any particular services, facilities or programs.

The authority to levy the tax imposed by Proposition "D" would expire ten years from the Operative Date, unless the City Council prior to that date determines that the levy and collection of the tax is no longer necessary, in which case the City Council has the authority to reduce the rate of tax, or terminate the imposition of the tax.

Proposition "D" provides that every five years the Mayor, with the approval of the City Council, shall appoint an independent committee comprised of three experts in financial matters, who will report their recommendation to the Mayor and City Council as to whether the transaction and use tax should remain in effect at the rate of one percent, or whether the City Council should reduce the rate of tax or terminate the imposition of the tax.