HomeMy WebLinkAboutStaff Report 2405-2990CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, September 16, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
5.Sales Tax Digest 2024 Q1 (January to March)
City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: September 16, 2024
Report #:2405-2990
TITLE
Sales Tax Digest 2024 Q1 (January to March)
DISCUSSION
This report transmits information regarding the City of Palo Alto’s sales tax receipts for the first
quarter (January-March) of 2024. Listed below are highlights from the report; detailed
discussion and data can be found in the attached City of Palo Alto Sales Tax Digest and
Legislative Update 2024 Q1 (Attachment A).
Regional and statewide sales tax based upon adjusted economic benchmark year
(Attachment A, p. 2)
•Palo Alto: increased 7.8%
•San Francisco Bay Area: decreased 3.5%
•California statewide: decreased 3.8%
City’s Most Significant Reasons for increases during this period (Attachment A, p. 2)
•New Auto Sales segment increased by 24.9%, comprises 16.0% of total sales tax
•Restaurant segment increased by 7.7%, comprises 17.3% of total sales tax
County Pool (Attachment A, p. 3)
•The City’s share of the county pool for this quarter is 6.0%, unchanged from Q1 2023
•Sales tax receipts from the County pool totaled $1.5 million
ATTACHMENTS:
Attachment A: 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update
APPROVED BY:
Lauren Lai, Administrative Services Director
CityꢀofꢀPaloꢀAltoꢀ
SalesꢀTaxꢀDigestꢀSummaryꢀꢀꢀꢀꢀ
CollectionsꢀthroughꢀMayꢀ2024ꢀ
SalesꢀJanuaryꢀthroughꢀMarchꢀ2024ꢀ(2024Q1)ꢀ
ꢀ
California Overview
For the year ending in the first quarter of 2024, cash receipts decreased 1.2% statewide and decreased
3.3% in S.F. Bay Area. However, when adjusted for non‐period related payments, the overall economic
sales tax activity for the year ending in first quarter of 2024 decreased by 3.8% statewide and decreased
by 3.5% in S.F. Bay Area.
City of Palo Alto
For the benchmark year ending in the first quarter of 2024, sales tax cash receipts for the city increased
by 8.9% from the prior year. However, when adjusted for non‐period related payments, the overall
economic sales tax activity in Palo Alto for the year ending in first quarter of 2024 increased by 7.8%. The
most significant reasons for Palo Alto’s increase during this period were the restaurants and new auto
sales segments, respectively. Restaurants increased by 7.7%, which comprises 17.3% of the total sales tax
for the city. New auto sales for the same period increased by 24.9%, which comprises 16.0% of the total
sales tax.
Same quarter sales tax cash receipts increased by 0.7% in California from Q1 2023 to Q1 2024. The Palo
Alto citywide sales tax cash receipts increased by 2.4% over the Q1 2023 to Q1 2024 period. Key reasons
for the Palo Alto increase during this period were: 1) restaurants increased by 7.4%, which comprises
16.3% of the total sales tax for the city, and 2) new auto sales increased from Q1 2023 to Q1 2024 by
46.4%, which comprises 16.2% of the total sales tax for the city. According to the California New Car
Dealers Association, 2024 Q1 California statewide new auto registrations reported a slight increase (0.7%)
in new auto registrations from 428,561 in Q1 2023 to 431,638 in Q1 2024. The overall statewide new auto
registrations are predicted to grow slightly (less 3%) in the remainder of the 2024 calendar year.
Regional Overview
The first chart on page two shows adjusted economic benchmark year amounts, which means that it
shows the year ended first quarter of 2024 compared to the year ended first quarter of 2023 (benchmark
years are rolling annual comparisons through the current quarter). The growth rates are different
between the state and Palo Alto because the sales tax from businesses in Palo Alto performed better
overall than the statewide average.
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Regional Overview Chart (Economic)
BENCHMARK YEAR 2024Q1 COMPARED TO BENCHMARK YEAR 2023Q1
ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 1st Quarter 2024
California
Statewide
Sacramento
Valley% of Total / % Change Palo Alto S.F. Bay Area Central Valley South Coast Inland Empire North Coast
General Retail
Food Products
Transportation
Business to Business
Misc/Other
26.0 / 1.9
17.3 / 6.6
19.7 / 17.8
33.5 / 6.1
3.5 / 26.7
100.0 / 7.8
28.9 / ‐1.4
21.2 / ‐0.6
23.3 / ‐7.5
15.8 / ‐6.3
10.8 / ‐3.9
100.0 / ‐3.8
26.0 / ‐4.1
22.4 / ‐0.2
19.4 / ‐4.8
21.2 / ‐2.9
11.0 / ‐7.4
100.0 / ‐3.5
28.2 / ‐2.2
16.8 / ‐1.7
27.0 / ‐4.7
14.2 / ‐7.1
13.7 / ‐4.5
100.0 / ‐3.9
37.8 / 0.4
14.6 / ‐4.1
22.3 / ‐8.2
14.7 / ‐7.3
10.5 / ‐7.7
100.0 / ‐4.3
27.1 / 0.1
23.3 / 1.0
24.2 / ‐6.3
15.4 / ‐6.0
10.0 / ‐0.3
100.0 / ‐2.3
34.7 / ‐5.9
17.9 / ‐9.0
23.6 / ‐19.1
10.6 / ‐16.9
13.2 / ‐9.2
100.0 / ‐11.5
27.3 / 3.2
18.3 / 1.5
28.7 / ‐5.1
10.4 / 0.7
15.3 / ‐1.1
100.0 / ‐0.5Total
ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 1st Quarter 2024
California
Statewide
Sacramento
Valley
Auto Sales ‐
New
Palo Alto
Leasing
S.F. Bay Area
Restaurants
Central Valley South Coast
Restaurants
Inland Empire North Coast
RestaurantsMiscellaneous
Retail
Miscellaneous
RetailLargest Segment Restaurants
% of Total / % Change
2nd Largest Segment
% of Total / % Change
3rd Largest Segment
% of Total / % Change
20.9 / 5.3
Auto Sales ‐
New
15.3 / 0.7
Auto Sales ‐
New
11.1 / ‐5.5
Miscellaneous
Retail
16.7 / 0.8
Miscellaneous
Retail
9.7 / ‐1.2
Auto Sales ‐
New
11.6 / ‐0.2 15.9 / 13.5
Department
Stores
17.2 / 2.1
Auto Sales ‐
New
12.3 / ‐5.7
Miscellaneous Auto Sales ‐
17.5 / ‐0.9 11.7 / 2.9
Department
Stores
11.3 / 17.5
Auto Sales ‐
New
Restaurants Restaurants
16.0 / 24.9 11.6 / ‐0.9
Miscellaneous
Retail
10.9 / ‐5.5 11.6 / ‐6.3
Restaurants
15.6 / 7.7
Restaurants Retail
9.0 / 9.4
New
10.9 / ‐11.610.8 / 6.0 9.4 / ‐3.5 11.0 / 1.0 9.8 / ‐2.7 11.1 / ‐1.2
Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments)
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$‐
Quarterly Benchmark Year
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Net Cash Receipts for Benchmark Year first Quarter 2024: $37,042,335
*Benchmark year (BMY) is the sum of the current and 3 previous quarters (2024Q1 BMY is sum of 2024 Q1, 2023 Q4, 2023 Q3, 2023 Q2)
Net Pools & Adjustments
21.4%
Leasing
20.9%
Auto Sales ‐ New
16.0%
All Other
34.0%
Restaurants
15.7%
Office Equipment
6.8%Apparel Stores
6.6%County Pool Results
The California sales tax system is referred to as a ‘sales and use tax’ system which covers both sales tax
and ‘use tax’. The County Pool revenues largely reflect use tax from qualifying transactions that do not
involve a California based point of sale. Businesses report their use tax quarterly based on business activity
conducted throughout the county. The County Pool is distributed each quarter based upon a formula
where the jurisdiction’s quarterly percentage is based upon its total sales tax receipts for the quarter as a
percentage of all sales tax receipts for all jurisdictions within the county. Thus, if local business activity
(sales tax receipts) within Palo Alto increases in the quarter relative to the rest of the county, then the
Palo Alto County pool percentage also will increase for the quarter compared to the rest of the county.
The total county pool is multiplied by the city’s quarterly percentage to determine the jurisdiction share
each quarter.
In the first quarter of 2024, cash receipts for the overall County Pool increased by 1.9% from the same
quarter in the prior year. The City’s share of the County Pool was unchanged from 6.0% to 6.0%. The City’s
revenues from the County Pool increased from $1,499,631 in 2023Q1 to $1,523,986 in 2024Q1.
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TOP 25 SALES/USE TAX CONTRIBUTORS
The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order
and represents the year ended first quarter of 2024. The Top 25 Sales/Use Tax contributors generate
61.2% of Palo Alto’s total sales and use tax revenue.
Anderson Honda
Apple Stores
Archer Aviation
Arco Am/Pm Mini Marts
Audi Palo Alto
Bloomingdale's
Brilliant Earth
Hermes
Louis Vuitton Shreve & Co.
Stanford Health Care
Tesla
Tesla Lease Trust
Tiffany & Company
Union 76 Service Stations
Varian Medical Systems
Volvo Cars Palo Alto
Macy's Department Store
Magnussen's Toyota
Neiman Marcus
Nordstrom Department Store
Richemont
Rivian Automotive
Shell Service Stations
HP Enterprise Services
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Sales Tax from Largest Non‐Confidential Sales Tax Segments (Economic)
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$‐
Benchmark Year 2024Q1 Benchmark Year 2023Q1
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Historical Analysis by Calendar Quarter
Economic Category %
28.7%
20.9%
21.0%
15.6%
86.2%
13.8%
100.0%
2024Q1
2,373,414
1,727,252
1,739,261
1,288,207
7,128,134
1,143,798
8,271,932
2023Q4
2,262,034
1,951,428
2,315,882
1,348,051
7,877,395
1,867,172
9,744,567
2023Q3
2,619,833
1,870,170
1,834,297
1,277,173
7,601,473
1,986,175
9,587,647
2023Q2
2,439,519
1,546,096
2,017,885
1,349,926
7,353,426
2,084,763
9,438,189
2023Q1
2,350,567
1,302,322
1,640,927
1,195,458
6,489,274
1,586,938
8,076,212
2022Q4
2,571,178
1,517,005
2,305,038
1,260,287
7,653,508
1,935,580
9,589,088
2022Q3
2,194,817
1,597,816
1,802,777
1,230,824
6,826,234
1,862,181
8,688,414
2022Q2
2,095,020
1,724,861
1,920,316
1,227,240
6,967,438
686,044
2022Q1
2,031,199
1,701,538
1,639,417
1,018,577
6,390,731
1,721,924
8,112,655
2021Q4
2,136,501
1,687,189
2,282,253
1,083,309
7,189,252
1,806,328
8,995,580
2021Q3
1,689,561
1,812,731
1,687,461
999,729
Business To Business
Miscellaneous/Other
General Retail
Food Products
Subtotal Economic (Local Business)
Net Pools & Adjustments
Total Cash Receipts
6,189,482
584,508
7,653,481 6,773,990
Economic Segment
Miscellaneous/Other
Restaurants
%
49.7%
14.1%
5.9%
2024Q1
4,114,784
1,162,863
489,040
2023Q4
4,409,850
1,214,598
689,939
2023Q3
4,635,983
1,154,189
480,649
2023Q2
4,197,978
1,214,502
512,077
2023Q1
3,818,384
1,073,621
448,322
2022Q4
4,490,992
1,114,637
545,797
2022Q3
4,087,158
1,102,248
381,616
435,730
423,601
233,387
99,811
2022Q2
4,008,008
1,093,944
479,710
495,508
454,349
250,715
104,253
80,950
2022Q1
3,949,786
902,707
432,956
392,724
367,144
191,755
91,634
2021Q4
3,969,954
947,771
679,381
540,782
525,295
190,610
108,203
227,256
7,189,252
1,806,328
8,995,580
2021Q3
3,752,178
884,911
412,016
406,274
388,703
181,460
90,773
Miscellaneous Retail
Apparel Stores 5.3%440,402 586,863 478,973 509,894 423,470 538,573
Department Stores
Service Stations
5.0%411,345 549,893 435,388 492,374 356,626 533,032
2.4%198,584 214,900 229,911 222,029 192,723 215,640
Food Markets 1.3%107,031 112,372 103,251 111,465 101,978 116,810
Business Services
Subtotal Economic (Local Business)
Net Pools & Adjustments
Total Cash Receipts
2.5%204,085 98,980 83,130 93,106 74,150 98,027 62,683 62,025 73,169
86.2%
13.8%
100.0%
7,128,134
1,143,798
8,271,932
7,877,395
1,867,172
9,744,567
7,601,473
1,986,175
9,587,647
7,353,426
2,084,763
9,438,189
6,489,274
1,586,938
8,076,212
7,653,508
1,935,580
9,589,088
6,826,234
1,862,181
8,688,414
6,967,438
686,044
7,653,481
6,390,731
1,721,924
8,112,655
6,189,482
584,508
6,773,990
The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash receipts, and it was obtained by
adding up the categories/segments with the “Net Pools & Adjustments” amount.
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Historical Analysis by Calendar BMY from 2015Q1 to 2024Q1
Economic Category
Business To Business
Miscellaneous/Other
General Retail
%
27.6%
19.2%
21.3%
14.3%
82.4%
17.6%
100.0%
2024Q1
10,222,577
7,095,324
7,897,514
5,290,982
30,506,397
6,535,938
37,042,335
2023Q1
9,631,298
5,953,026
7,658,078
4,965,161
28,207,563
5,799,633
34,007,195
2022Q1
7,896,075
6,558,902
7,381,386
4,063,916
25,900,278
5,452,388
31,352,667
2021Q1
7,611,571
5,918,263
4,346,606
2,409,724
20,286,163
6,194,515
26,480,678
2020Q1
8,308,564
6,876,494
7,343,919
4,766,327
27,295,304
5,517,214
32,812,518
2019Q1
6,943,096
7,953,725
8,114,526
4,866,749
27,878,096
7,279,063
35,157,159
2018Q1
6,184,439
6,545,872
8,396,707
4,739,636
25,866,655
2,976,828
28,843,483
2017Q1
5,317,252
6,320,172
8,408,295
4,604,281
24,650,000
4,680,293
29,330,293
2016Q1
4,919,417
5,805,795
8,036,424
4,550,695
23,312,331
4,040,097
27,352,428
2015Q1
4,159,698
5,357,777
8,083,498
4,267,423
21,868,395
3,795,270
25,663,665
Food Products
Subtotal Economic (Local Business)
Net Pools & Adjustments
Total
Economic Segment
Miscellaneous/Other
Restaurants
%
48.3%
12.9%
5.8%
2024Q1
17,879,880
4,776,166
2,161,598
2,021,082
1,889,000
865,218
2023Q1
16,605,550
4,435,671
1,816,795
1,899,828
1,771,222
899,477
2022Q1
15,180,847
3,583,725
2,049,777
1,737,094
1,665,905
721,214
2021Q1
14,226,962
1,996,161
1,278,010
964,830
2020Q1
16,180,511
4,208,893
1,558,511
1,812,400
1,684,162
687,514
2019Q1
15,895,019
4,284,982
1,658,409
2,018,832
1,932,093
693,763
2018Q1
14,279,387
4,123,571
1,721,414
1,756,806
2,079,948
629,651
2017Q1
12,726,704
4,004,911
2,276,167
1,678,614
2,100,526
573,919
2016Q1
11,702,670
3,958,600
1,673,995
1,629,174
2,298,559
618,471
2015Q1
10,658,693
3,713,187
1,514,666
1,659,577
2,395,177
732,864
Miscellaneous Retail
Apparel Stores 5.5%
Department Stores
Service Stations
5.1%769,134
2.3%406,403
Business Services
Food Markets
1.3%474,673 355,787 581,268 321,146 718,091 940,138 765,322 786,093 925,420 711,989
1.2%438,779 423,233 380,450 323,518 445,221 454,861 510,556 503,066 505,442 482,242
Subtotal Economic (Local Business)
Net Pools & Adjustments
Total
82.4%
17.6%
100.0%
30,506,397
6,535,938
37,042,335
28,207,563
5,799,633
34,007,195
25,900,278
5,452,388
31,352,667
20,286,163
6,194,515
26,480,678
27,295,304
5,517,214
32,812,518
27,878,096
7,279,063
35,157,159
25,866,655
2,976,828
28,843,483
24,650,000
4,680,293
29,330,293
23,312,331
4,040,097
27,352,428
21,868,395
3,795,270
25,663,665
The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained
by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters
(2024Q1 BMY is sum of 2024 Q1, 2023 Q4, 2023 Q3, 2023 Q2).
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Quarterly Analysis by Sales Tax Category: Change from 2023Q1 to 2024Q1 (Economic)
Campbell ‐1.4%
6.2%
2.8%
1.3%
‐1.0%
20.5%
5.9%
1.0%
7.9%
1.9%
9.3%
‐3.8%
‐6.9%
15.6%
0.5%
5.2%
1.7%
0.9%
4.0%
‐0.9%
6.1%
3.1%
28.8%
‐5.5%
‐1.7%
‐0.2%
10.5%
‐1.1%
2,538,496
7,255,522
3,826,805
580,319
2,428,298 4.5% I.T. Infrastructure Office Equipment
Restaurants
Light Industry Electronic Equipment
Miscellaneous Retail
Energy Sales
Cupertino 7,535,507 ‐3.7% I.T. Infrastructure Office Equipment
Gilroy 3,724,834 2.7% Auto Sales ‐ New Miscellaneous Retail Misc. Vehicle Sales
Los Altos 11.6% ‐16.1%
8.6% ‐20.9%
567,661 2.2% Electronic Equipment Recreation Products Business Services Heavy Industry
Los Gatos
Milpitas
9.4% ‐18.7%1,292,731
5,209,433
2,321,127
4,245,771
7,253,317
47,857,257
11,644,552
959,205
1,342,494 ‐3.7% Food Processing Eqp Bldg.Matls‐Retail Miscellaneous Other Auto Sales ‐ New
3.5%‐2.3% ‐15.8%3.8%
‐4.3%
5,321,308 ‐2.1% Miscellaneous Retail Electronic Equipment Office Equipment Bldg.Matls‐Whsle
Heavy IndustryMorgan Hill
Mountain View
Palo Alto
‐0.9%
3.9%
6.9%
4.6%
‐3.3% ‐18.0%2,414,476 ‐3.9% Service Stations
4,671,866 ‐9.1% Restaurants
6,481,040 11.9% Auto Sales ‐ New
Miscellaneous Retail Misc. Vehicle Sales
‐3.5% ‐36.4% ‐10.1%Leasing Business Services
Leasing
Office Equipment
Bldg.Matls‐Whsle
Auto Sales ‐ New
Bldg.Matls‐Whsle
Health & Government
Miscellaneous Retail
Heavy Industry
34.2%5.5%27.9%
2.2%
Business Services
RestaurantsSan Jose ‐9.2%38.6%44,338,639 7.9% Office Equipment Green Energy
Santa Clara
County of Santa Clara
Saratoga
7.9% ‐13.3%‐4.4% ‐30.4%12,428,833 ‐6.3% Restaurants
1,112,269 ‐13.8% Restaurants
234,760 ‐0.8% Light Industry
6,605,585 11.0% Light Industry
Electronic Equipment Office Equipment
‐3.6%
‐0.3%
7.6%
9.1% ‐41.8% ‐16.6%Food Markets Leasing
1.5% ‐10.1%22.0%232,850 Auto Parts/Repair
Auto Sales ‐ New
Business Services
Bldg.Matls‐WhsleSunnyvale24.9%16.3% ‐13.7%7,332,989
Unlike the chart on page one which showed a ‘benchmark year’ through the first quarter of 2024, the chart above shows a comparison of one quarter only – first
quarter of 2024 to first quarter of 2023. This chart is for local ‘brick and mortar’ businesses, and it excludes county pools and adjustments.
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City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2023Q1 to 2024Q1 (Economic)
California Avenue
FOOD PRODUCTS
GENERAL RETAIL
ALL OTHER
% CHANGE QoQ 2024Q1 QE 2023Q1 QE
90,606
24Q1 % OF TOTAL 23Q1 % OF TOTAL
2.0%
23.1%
‐4.8%
2.7%
92,380
21,954
38,511
60.4%
14.4%
25.2%
100.0%
60.9%
12.0%
27.2%
100.0%
17,827
40,465
148,897TOTAL152,844
El Camino Real and Midtown
FOOD PRODUCTS
GENERAL RETAIL
ALL OTHER
% CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL
5.2%
‐4.0%
49.0%
26.7%
156,412 148,644
37,191
195,113
380,948
32.4%
7.4%
39.0%
9.8%35,711
290,716
482,839
60.2%
100.0%
51.2%
100.0%TOTAL
Greater Downtown
FOOD PRODUCTS
GENERAL RETAIL
CONSTRUCTION
BUSINESS TO BUSINESS
MISCELLANEOUS
TRANSPORTATION
TOTAL
% CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL
7.9%
‐5.6%
470.2%
‐26.3%
‐9.1%
516,354 478,353
247,632
8,003
45,854
7,561
61.5%
27.9%
5.4%
60.3%
31.2%
1.0%
233,851
45,632
33,808
6,872
4.0%5.8%
0.8%1.0%
‐42.3%
5.9%
3,092
839,608
5,362
792,765
0.4%0.7%
100.0%100.0%
Stanford Shopping Center
GENERAL RETAIL
FOOD PRODUCTS
ALL OTHER
% CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL
14.5%
‐4.7%
31.1%
14.4%
1,294,515
145,028
214,421
1,130,136
152,251
163,515
78.3%
8.8%
78.2%
10.5%
11.3%
100.0%
13.0%
100.0%TOTAL 1,653,964 1,445,902
ꢀwww.avenuinsights.com (800) 800-8181 Page 9
CityꢀofꢀPaloꢀAltoꢀ
City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2023Q1 to 2024Q1 (Economic) Cont.
Town And Country Shopping Center
FOOD PRODUCTS
GENERAL RETAIL
ALL OTHER
% CHANGE QoQ 2024Q1 QE 2023Q1 QE
103,872
24Q1 % OF TOTAL 23Q1 % OF TOTAL
8.6%
9.7%
‐33.0%
8.1%
112,845
63,695
2,440
63.0%
35.6%
1.4%
62.7%
35.1%
2.2%
58,041
3,639
165,552TOTAL178,980 100.0%100.0%
All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL
BUSINESS TO BUSINESS
GENERAL RETAIL
TRANSPORTATION
FOOD PRODUCTS
CONSTRUCTION
MISCELLANEOUS
TOTAL
0.0%
10.4%
34.3%
5.4%
152.8%
2.7%
2,248,812
1,708,428
1,418,608
1,107,512
62,911
2,248,217
1,547,799
1,056,270
1,050,429
24,884
34.1%
25.9%
21.5%
16.8%
1.0%
37.7%
25.9%
17.7%
17.6%
0.4%
43,968
6,590,238
42,803
5,970,403
0.7%
100.0%
0.7%
100.0%10.4%
All Geo Areas Total Comparison 24Q1 & 23Q1
Balance of Jurisdiction
Stanford Shopping Center
Greater Downtown
El Camino Real and Midtown
Town And Country Shopping Center
California Avenue
% CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL
8.1%
5.9%
14.4%
26.7%
8.1%
3,282,003 3,036,339
792,765
1,445,902
380,948
165,552
148,897
49.8%
12.7%
25.1%
7.3%
50.9%
13.3%
24.2%
6.4%
839,608
1,653,964
482,839
178,980 2.7%2.8%
2.7%152,844 2.3%2.5%
TOTAL 10.4%6,590,238 5,970,403 100.0%100.0%
Palo Alto citywide QE 24Q1 & 23Q1
BUSINESS TO BUSINESS
GENERAL RETAIL
TRANSPORTATION
FOOD PRODUCTS
MISCELLANEOUS
% CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL
5.5%
7.9%
34.2%
6.9%
33.0%
12.7%
11.9%
2,489,517 2,359,186
1,611,626
1,060,259
1,204,882
182,882
34.3%
24.0%
19.6%
17.8%
3.4%
36.4%
24.9%
16.4%
18.6%
2.8%
1,739,261
1,422,933
1,288,207
243,266
CONSTRUCTION
TOTAL
70,132 62,205
6,481,040
1.0%1.0%
7,253,317 100.0%100.0%
ꢀwww.avenuinsights.com (800) 800-8181 Page 10
CityꢀofꢀPaloꢀAltoꢀ
City of Palo Alto Geo Area Pie Charts
California Avenue2024Q1 SALES TAX AMOUNTS California Avenue2023Q1 SALES TAX AMOUNTS
ALL OTHER,
‐4.8% CHANGE,$38,511 ,ALL OTHER, $40,465 ,27.2% TOTAL FOOD PRODUCTS,$90,606 ,25.2% TOTAL FOOD PRODUCTS,
2.0% CHANGE, $92,380 ,
60.4% TOTAL
60.9% TOTAL
GENERAL RETAIL,$17,827 , 12.0% TOTAL
GENERAL RETAIL,23.1% CHANGE,$21,954 ,
14.4% TOTAL
El Camino Real and Midtown 2024Q1 SALES TAX AMOUNTS El Camino Real and Midtown 2023Q1 SALES TAX AMOUNTS
ALL OTHER, $195,11351.2% TOTALALL OTHER,49.0% CHANGE,$290,716 ,
FOOD PRODUCTS,$148,644 ,
39.0% TOTALFOOD PRODUCTS,
5.2% CHANGE, $156,412 ,32.4% TOTAL60.2% TOTAL
GENERAL RETAIL,
‐4.0% CHANGE,$35,711 ,7.4% TOTAL GENERAL RETAIL,
$37,191, 9.8% TOTAL
ꢀwww.avenuinsights.com (800) 800-8181 Page 11
CityꢀofꢀPaloꢀAltoꢀ
City of Palo Alto Geo Areas Pie Charts
Greater Downtown 2024Q1 SALES TAX AMOUNTS Greater Downtown 2023Q1 SALES TAX AMOUNTS
MISCELLANEOUS,
‐9.1% CHANGE, $6,872 ,0.8% TOTAL
MISCELLANEOUS, $7,561 ,BUSINESS TO BUSINESS,
‐26.3% CHANGE, $33,808 ,
4.0% TOTAL
BUSINESS TO BUSINESS,$45,854 , 5.8% TOTAL 1.0% TOTALTRANSPORTATION,
‐42.3% CHANGE, $3,092 ,
0.4% TOTAL
TRANSPORTATION, $5,362 ,
0.7% TOTAL
CONSTRUCTION,
470.2% CHANGE, $45,632 ,
5.4% TOTAL CONSTRUCTION, $8,003 ,1.0% TOTAL
GENERAL RETAIL,
‐5.6% CHANGE,
$233,851 ,
GENERAL RETAIL,
$247,632 , 31.2% TOTAL
27.9% TOTAL
FOOD PRODUCTS,
7.9% CHANGE, $516,354 ,
61.5% TOTAL FOOD PRODUCTS,$478,353 , 60.3% TOTAL
StanfordShopping Center 2024Q1 SALESTAX AMOUNTS StanfordShoppingCenter 2023Q1 SALESTAX AMOUNTS
ALL OTHER, $163,515 ,
11.3% TOTALALL OTHER, 31.1% CHANGE,
$214,421 , 13.0% TOTAL GENERAL RETAIL,14.5% CHANGE, $1,294,515 ,78.3% TOTAL GENERAL RETAIL$1,130,136 ,78.2% TOTALFOOD PRODUCTS,
‐4.7% CHANGE,
$145,028 ,FOOD PRODUCTS, $152,251 ,
10.5% TOTAL8.8% TOTAL
ꢀwww.avenuinsights.com (800) 800-8181 Page 12
CityꢀofꢀPaloꢀAltoꢀ
City of Palo Alto Geo Area Pie Charts
Town And Country Shopping Center 2024Q1 SALES TAX AMOUNTS Town And Country Shopping Center 2023Q1 SALES TAX AMOUNTS
ALL OTHER, $3,639 , 2.2% TOTALALL OTHER, ‐33.0% CHANGE,$2,440 , 1.4% TOTAL
GENERAL RETAIL,9.7% CHANGE, $63,695 ,
35.6% TOTAL
FOOD PRODUCTS,
8.6% CHANGE, $112,845 ,
63.0% TOTAL
GENERAL RETAIL,$58,041 ,
35.1% TOTAL
FOOD PRODUCTS,$103,872 ,
62.7% TOTAL
All Other Geos combined with Balance of Jurisdiction 2024Q1 All Other Geos combined with Balance of Jurisdiction 2023Q1
SALES TAX AMOUNTSSALES TAX AMOUNTS MISCELLANEOUS,
2.7% CHANGE, $43,968 ,
0.7% TOTAL
MISCELLANEOUS,CONSTRUCTION, 152.8% CHANGE,
$62,911 , 1.0% TOTAL CONSTRUCTION,$42,803 , 0.7% TOTAL$24,884 , 0.4% TOTAL
FOOD PRODUCTS,
5.4% CHANGE, $1,107,512 ,16.8% TOTAL BUSINESSTO BUSINESS,FOOD PRODUCTS,
$1,050,429 ,17.6% TOTAL
0.0% CHANGE,$2,248,812 ,
34.1% TOTAL
BUSINESSTO BUSINESS,$2,248,217 ,
37.7% TOTAL
TRANSPORTATION,
34.3% CHANGE,$1,418,608,
TRANSPORTATION,
$1,056,270 ,
17.7% TOTAL21.5% TOTAL
GENERAL RETAIL,
10.4% CHANGE,$1,708,428,25.9% TOTAL
GENERAL RETAIL, $1,547,799,
25.9% TOTAL
ꢀwww.avenuinsights.com (800) 800-8181 Page 13
CityꢀofꢀPaloꢀAltoꢀ
City of Palo Alto Geo Area & Citywide Pie Charts
All Geo Area Totals 2024Q1 SALES TAX AMOUNTS All Geo Area Totals 2023Q1 SALES TAX AMOUNTS
TownAnd CountryShoppingCenter,8.1% CHANGE, $178,980 , 2.7% TOTAL CaliforniaAvenue,$148,897 , 2.5% TOTALCaliforniaAvenue,2.7% CHANGE,
$152,844 , 2.3% TOTAL TownAnd CountryShoppingCenter,
$165,552 , 2.8% TOTAL
El CaminoReal andMidtown,
26.7% CHANGE, $482,839 ,
7.3% TOTAL
Balance of Jurisdiction,$3,036,339 , 50.9% TOTALEl CaminoReal andMidtown,
$380,948 , 6.4% TOTAL
Balance of Jurisdiction,
8.1% CHANGE,
$3,282,003 ,49.8% TOTAL
GreaterDowntown,$1,445,902 , 24.2% TOTALGreaterDowntown,
14.4% CHANGE,
$1,653,964 ,
25.1% TOTAL
StanfordShoppingCenter,
5.9% CHANGE, $839,608 ,12.7% TOTAL
StanfordShoppingCenter,
$792,765 , 13.3% TOTAL
Palo Alto citywide 2024Q1 SALES TAX AMOUNTS Palo Alto citywide 2023Q1 SALES TAX AMOUNTSCONSTRUCTION,
12.7% CHANGE, $70,132 ,
1.0% TOTAL
MISCELLANEOUS, 33.0% CHANGE,
$243,266 , 3.4% TOTAL
MISCELLANEOUS, $182,882 ,CONSTRUCTION, $62,205 ,
1.0% TOTAL2.8% TOTAL
FOOD PRODUCTS, $1,204,882 BUSINESSTO BUSINESS,$2,359,186 , 36.4% TOTALFOOD PRODUCTS,
6.9% CHANGE, $1,288,207 ,17.8% TOTAL
BUSINESS TO BUSINESS,
5.5% CHANGE, $2,489,517 ,
34.3% TOTAL
18.6% TOTAL
TRANSPORTATION,
$1,060,259 ,
16.4% TOTALTRANSPORTATION,
34.2% CHANGE,
$1,422,933 ,
19.6% TOTAL
GENERAL RETAIL,
$1,611,626 ,
24.9% TOTAL
GENERAL RETAIL,
7.9% CHANGE, $1,739,261 ,
24.0% TOTAL
ꢀwww.avenuinsights.com (800) 800-8181 Page 14
City of Palo Alto
City of Palo Alto Geo Area Pie Charts
Town And Country Shopping Center 2024Q1 SALES TAX AMOUNTS Town And Country Shopping Center 2023Q1 SALES TAX AMOUNTS
ALL OTHER, $3,639 , 2.2% TOTALALL OTHER, -33.0% CHANGE, $2,440 , 1.4% TOTAL
GENERAL RETAIL,9.7% CHANGE, $63,695 ,
35.6% TOTAL
FOOD PRODUCTS,
8.6% CHANGE, $112,845 ,63.0% TOTAL
GENERAL RETAIL,$58,041 ,
35.1% TOTAL
FOOD PRODUCTS,
$103,872 ,
62.7% TOTAL
All Other Geos combined with Balance of Jurisdiction 2024Q1 All Other Geos combined with Balance of Jurisdiction 2023Q1
SALES TAX AMOUNTSSALES TAX AMOUNTS MISCELLANEOUS,
2.7% CHANGE, $43,968 ,0.7% TOTAL
MISCELLANEOUS,CONSTRUCTION, 152.8% CHANGE,$62,911 , 1.0% TOTAL CONSTRUCTION,$42,803 , 0.7% TOTAL$24,884 , 0.4% TOTAL
FOOD PRODUCTS,5.4% CHANGE, $1,107,512 ,
16.8% TOTAL BUSINESSTO BUSINESS,FOOD PRODUCTS,$1,050,429 ,17.6% TOTAL
0.0% CHANGE,
$2,248,812 ,
34.1% TOTAL
BUSINESSTO BUSINESS,
$2,248,217 ,
37.7% TOTAL
TRANSPORTATION,34.3% CHANGE,$1,418,608,
TRANSPORTATION,
$1,056,270 ,17.7% TOTAL21.5% TOTAL
GENERAL RETAIL,10.4% CHANGE, $1,708,428,
25.9% TOTAL
GENERAL RETAIL, $1,547,799,25.9% TOTAL
www.avenuinsights.com (800) 800-8181 Page 13
City of Palo Alto
City of Palo Alto Geo Area & Citywide Pie Charts
All Geo Area Totals 2024Q1 SALES TAX AMOUNTS All Geo Area Totals 2023Q1 SALES TAX AMOUNTS
Town And Country ShoppingCenter,8.1% CHANGE, $178,980 , 2.7% TOTAL CaliforniaAvenue,$148,897 , 2.5% TOTALCaliforniaAvenue, 2.7% CHANGE,
$152,844 , 2.3% TOTAL Town And Country ShoppingCenter,
$165,552 , 2.8% TOTAL
El Camino Real and Midtown,
26.7% CHANGE, $482,839 ,7.3% TOTAL
Balance of Jurisdiction,$3,036,339 , 50.9% TOTALEl Camino Real and Midtown,
$380,948 , 6.4% TOTAL
Balance of Jurisdiction,8.1% CHANGE,$3,282,003 ,49.8% TOTAL
GreaterDowntown,
$1,445,902 , 24.2% TOTALGreaterDowntown,
14.4% CHANGE,
$1,653,964 ,25.1% TOTAL
Stanford ShoppingCenter,5.9% CHANGE, $839,608 ,
12.7% TOTAL
Stanford ShoppingCenter,
$792,765 , 13.3% TOTAL
Palo Alto citywide 2024Q1 SALES TAX AMOUNTS Palo Alto citywide 2023Q1 SALES TAX AMOUNTSCONSTRUCTION,
12.7% CHANGE, $70,132 ,
1.0% TOTAL
MISCELLANEOUS, 33.0% CHANGE,$243,266 , 3.4% TOTAL
MISCELLANEOUS, $182,882 ,CONSTRUCTION, $62,205 ,
1.0% TOTAL2.8% TOTAL
FOOD PRODUCTS, $1,204,882 BUSINESS TO BUSINESS,$2,359,186 , 36.4% TOTALFOOD PRODUCTS,6.9% CHANGE, $1,288,207 ,17.8% TOTAL
BUSINESS TO BUSINESS,
5.5% CHANGE, $2,489,517 ,
34.3% TOTAL
18.6% TOTAL
TRANSPORTATION,$1,060,259 ,16.4% TOTALTRANSPORTATION,
34.2% CHANGE,
$1,422,933 ,
19.6% TOTAL
GENERAL RETAIL,$1,611,626 ,24.9% TOTAL
GENERAL RETAIL,
7.9% CHANGE, $1,739,261 ,
24.0% TOTAL
www.avenuinsights.com (800) 800-8181 Page 14
California Legislative
Update June 4, 2024
May 24 was the house of origin deadline, requiring bills to
pass out of their house of origin to remain active for this
legislative session, which will end on August 31.
Act of 2024. As amended 7/13/23. Authorizes a bond
measure of $14 billion for the construction and
modernization of Transitional Kindergarten through
community colleges public education facilities on an
unspecified 2024 statewide ballot.
Status: Awaiting dispensation in the Senate Appropriations
committee.
2,159 bills have been introduced in the legislature so far
this year, 1520 in the Assembly and 639 in the Senate. Of
those, 931 Assembly bills have passed off the Assembly
floor, and in the Senate, 479 Senate bills have passed to the
second chamber. Four Assembly bills and seven Senate
bills have been signed into law by Governor Gavin
Newsom so far this year.Cal Cities Position: Watch
AB 305 (Villapudua) California Flood Protection
Bond Act of 2024. As amended 4/25/23. Places a $4.5
billion flood protection and dam safety improvement bond
before the voters on the November 5, 2024, General
Election ballot.
Status: Referred to the Senate committee on Natural
Resources.
Cal Cities Position: Watch
The house of origin deadline was preceded by the
appropriations suspense process, during which the
Assembly and Senate appropriations committees took up
their suspense files to decide which legislation would
continue its journey through the legislative process this
year and which would be held under submission. It
appears that the tenuous state budget situation led to a
higher number of bills being held in committee. Of the
1,009 total bills on the suspense files, 689 moved to the
floors, while 320 were held (31.7%). Over the past decade,
the average percentage of bills held on suspense is 25%.
AB 408 (Wilson) Climate-resilient Farms, Sustainable
Healthy Food Access, and Farmworker Protection
Bond Act of 2024. As amended 8/14/23. Would enact
the Climate-resilient Farms, Sustainable Healthy Food
Access, and Farmworker Protection Bond Act of 2024,
which, if approved by the voters, would authorize the
issuance of bonds in the amount of $3.65 million pursuant
to the State General Obligation Bond Law, to finance
programs related to, among other things, agricultural lands,
food and fiber infrastructure, climate resilience, agricultural
professionals, including farmers, ranchers, and
farmworkers, workforce development and training, air
quality, tribes, disadvantaged communities, nutrition, food
aid, meat processing facilities, and fishing facilities.
Status: Awaiting dispensation in the Senate Appropriations
committee.
Committee hearings have begun for second house
legislation, and budget committees are wrapping up.
Upcoming deadlines include June 15 for the legislature to
pass the budget, June 27 for legislative measures to qualify
for the November ballot, and July 3 for policy committees
to consider legislation.
A summary of salient legislation is provided in this report.
Of particular note, SB 1494 (Glazer) which would have
prohibited cities from entering a sales tax rebate agreement
with a retailer starting next year and voided all existing
agreements on January 1, 2030, failed passage on the
Senate floor. The floor fight ended a successful opposition
effort that included a broad coalition of cities and local
government associations.
Cal Cities Position: Watch
AB 1510 (Jones-Sawyer) Fighting Fentanyl Bond Act
of 2024. As amended 7/13/23. Would enact the Fighting
Fentanyl Bond Act of 2024, which, if adopted, would
authorize the issuance of bonds in an unspecified amount,
for purposes of financing, among other things, substance
use treatment, harm reduction programs, supportive
services for students, programs targeting drug trafficking,
Bonds
AB 247 (Muratsuchi) Education finance: school
facilities: Transitional Kindergarten Through
Community College Public Education Facilities Bond
substance use treatment programs in prisons and juvenile
facilities, and recovery housing and transitional housing for
previously incarcerated individuals.
Status: Awaiting hearing in the Senate Appropriations
committee.
Safety Bond Act of 2024. As introduced 12/5/22.
Authorizes a $15 billion bond measure for the
construction and modernization of public preschools, K-
12, California Community College, University of
California, and California State University facilities.
Status: Awaiting dispensation in the Assembly
Appropriations committee.
Cal Cities Position: Watch
AB 1567 (Garcia) Safe Drinking Water, Wildfire
Prevention, Drought Preparation, Flood Protection,
Extreme Heat Mitigation, Clean Energy, and
Workforce Development Bond Act of 2024. As
amended 5/26/23. Would enact the Safe Drinking Water,
Wildfire Prevention, Drought Preparation, Flood
Protection, Extreme Heat Mitigation, Clean Energy, and
Workforce Development Bond Act of 2024, which, if
approved by the voters, would authorize the issuance of
bonds in the amount of $16 billion to finance projects for
safe drinking water, wildfire prevention, drought
preparation, flood protection, extreme heat mitigation,
clean energy, and workforce development programs.
Status: Awaiting hearing in the Senate Natural Resources
and Water committee.
Cal Cities Position: None
SB 638 (Eggman) Climate Resiliency and Flood
Protection Bond Act of 2024. As amended 6/28/23.
Would enact the Climate Resiliency and Flood Protection
Bond Act of 2024 which, if approved by the voters, would
authorize the issuance of bonds in the amount of $6 billion
for flood protection and climate resiliency projects.
Status: Awaiting hearing in the Assembly Water, Parks, &
Wildlife committee.
Cal Cities Position: Support if amended
SB 867 (Allen) Drought, Flood, and Water Resilience,
Wildfire and Forest Resilience, Coastal Resilience,
Extreme Heat Mitigation, Biodiversity and Nature-
Based Climate Solutions, Climate Smart Agriculture,
Park Creation and Outdoor Access, and Clean Energy
Bond Act of 2024. As amended 6/22/23. Would enact
the Drought, Flood, and Water Resilience, Wildfire and
Forest Resilience, Coastal Resilience, Extreme Heat
Mitigation, Biodiversity and Nature-Based Climate
Solutions, Climate Smart Agriculture, Park Creation and
Outdoor Access, and Clean Energy Bond Act of 2024,
which, if approved by the voters, would authorize the
issuance of bonds in the amount of $15.5 billion to finance
projects for drought, flood, and water resilience, wildfire
and forest resilience, coastal resilience, extreme heat
mitigation, biodiversity and nature-based climate solutions,
climate smart agriculture, park creation and outdoor
access, and clean energy programs.
Cal Cities Position: Support if amended
AB 1657 (Wicks) The Affordable Housing Bond Act of
2024. As amended 3/4/24. This bill would enact the
Affordable Housing Bond Act of 2024, which, if adopted,
would authorize the issuance of bonds in the amount of
$10 billion pursuant to the State General Obligation Bond
Law. Proceeds from the sale of these bonds would be used
to finance programs to fund affordable rental housing and
homeownership programs, including, among others, the
Multifamily Housing Program, the CalHome Program, and
the Joe Serna, Jr. Farmworker Housing Grant Program.
Status: Awaiting dispensation in the Senate Appropriations
committee.
Cal Cities Position: Support
Status: Awaiting hearing in the Assembly Natural
Resources committee.
Cal Cities Position: Support if amended
AB 2208 (Zbur) California Ports Development and
Offshore Wind Infrastructure Bond Act of 2024. As
amended 3/21/24. Enacts the California Ports
Development and Offshore Wind Infrastructure Bond Act
of 2024, to authorize $1 billion in general obligation bonds
for offshore wind energy. Authorizes the bond act for the
November 5, 2024, general election.
Status: Awaiting hearing in the Assembly Natural
Resources committee.
Cal Cities Position: Track
Broadband
AB 1588 (Wilson) Affordable Internet and Net
Equality Act of 2024. As amended 1/22/24. Would,
under the Affordable Internet and Net Equality Act of
2024, require the Department of Technology, in
coordination with the Public Utilities Commission and the
Department of General Services, to develop and establish
the Net Equality Program. The bill would require the state
and state agencies to only enter into a procurement
SB 28 (Glazer) Education finance: school facilities:
Public Preschool, K–12, and College Health and
2
contract with an internet service provider offering
affordable home internet service, which costs no more
than $40 per month and meets specified minimum speed
requirements, to households participating in certain public
assistance programs, or with an internet service provider
participating in the federal Affordable Connectivity
Program, or any other state or federal program that offers
broadband affordability assistance for households that
qualify for that program, and that offers to households
that qualify for those programs internet service that costs
no more than $40 per month and meets specified
minimum speed requirements.
broadband service, and enable Public Housing Account
recipients offering new broadband plans within low-
income communities to provide a free or low-cost
broadband plan to those communities as a condition of
obtaining the grant.
Status: Awaiting assignment to a policy committee in the
Assembly.
Cal Cities Position: Track
Corporation Tax
AB 1973 (Lackey) Personal Income Tax Law:
Corporation Tax Law: Bobcat Fire: exclusions. As
amended 4/18/24. Would, for taxable years beginning on
or after January 1, 2024, and before January 1, 2029,
provide an exclusion from gross income for any qualified
taxpayer, for amounts received in settlement for costs and
losses associated with the 2020 Bobcat Fire in the County
of Los Angeles.
Status: Referred to the Senate Governmental Organization
and Energy, Utilities, & Communications committees.
Cal Cities Position: Watch
AB 1826 (Holden) Digital Equity in Video
Franchising Act of 2024. As amended 5/16/24. Makes
various changes to the statutes governing state video
franchises, known as the Digital Infrastructure and Video
Competition Act of 2006, and recasts those statutes as the
Digital Equity in Video Franchising Act of 2023.
Generally, these changes can be classified as broadening
the authority of the California Public Utilities Commission
over the issuance and renewal of state video franchises and
over the quality-of-service franchise holders providing
service to unserved households.
Status: Awaiting hearing in the Senate Revenue & Taxation
committee.
Cal Cities Position: None
AB 2128 (Ta) Income and corporation taxes: credits:
work opportunity credit. As amended 5/1/24. For
taxable years beginning on or after January 1, 2025, and
before January 1, 2030, would allow a tax credit in an
amount equal to 40% of the qualified wages paid or
incurred to a qualified employee employed during the
taxable year. The bill would define a qualified employee as
an individual that, among other things, has been convicted
of a felony, and has a hiring date not more than one year
after the date the individual was convicted or was released
from prison.
Status: Awaiting hearing in the Senate Energy, Utilities, &
Communications committee.
Cal Cities Position: Track
AB 2708 (Patterson, Jim) Office of Broadband and
Digital Literacy: reports. As introduced 2/14/24. Would
require additional information to be included in the annual
report from the Office of Broadband and Digital Literacy
to the budget committees of the legislature, including the
total cost to complete the statewide open-access middle-
mile broadband network, the total available funding for the
statewide open-access middle-mile broadband network,
and the projected completion date for the statewide open-
access middle-mile broadband network.
Status: Dead - held on the Assembly Appropriations
suspense file.
Cal Cities Position: None
AB 2294 (Schiavo) Personal Income Tax Law:
Corporation Tax Law: New Employment Credit. As
introduced 2/12/24. The Personal Income Tax Law and
the Corporation Tax Law allow various credits against the
taxes imposed by those laws, including, for taxable years
beginning on or after January 1, 2014, and before January
1, 2026, a credit for hiring qualified full-time employees,
within a designated census tract or economic development
area in an amount equal to 35% of the qualified wages,
defined in part as those wages that exceed 150% of
minimum wage but do not exceed 350% of minimum
wage, paid to those employees multiplied by the applicable
percentage for that taxable year. This bill would eliminate
Status: Awaiting hearing in the Senate Energy, Utilities, &
Communications committee.
Cal Cities Position: Support
SB 1383 (Bradford) California Advanced Services
Fund: Broadband Public Housing Account. As
amended 4/9/24. Would expand eligibility for the
California Advanced Services Fund Broadband Public
Housing Account, authorize the use of Public Housing
Account funds for devices that improve existing
3
the requirement that the new employment be located
within a designated census tract or economic development
area. The bill would expand the definition of qualified
wages to include that amount of wages that exceeds 100%
of minimum wage but does not exceed 350% of minimum
wage. The bill would expand the definition of qualified
employee to include an employee that is a member of a
targeted group, as defined.
2021, oil spill that occurred off the coast of the County of
Orange near the City of Huntington Beach. The bill would
repeal the provisions on January 1, 2029.
Status: Dead - held on the Senate Appropriations suspense
file.
Cal Cities Position: None
Development FeesStatus: Awaiting hearing in the Assembly Revenue &
Taxation committee.AB 1820 (Schiavo) Housing development projects:
applications: fees and exactions. As amended 4/29/24.
Would authorize a development proponent that submits a
preliminary application for a housing development project
to request a preliminary fee and exaction estimate and
would require the local agency to provide the estimate
within 30 business days of the submission of the
preliminary application. Specifies that the preliminary fee
and exaction estimate is for informational purposes only
and does not affect the scope, amount, or time of payment
of any fee or exaction.
Cal Cities Position: None
AB 3160 (Gabriel) Insurance, income, and corporation
taxes: credits: low-income housing. As amended
5/20/24. Provides that an allocation of $500 million to the
Low-Income Housing Tax Credit is not subject to an
appropriation in the annual Budget Act for the 2025
through 2030 calendar years.
Status: Awaiting assignment to a policy committee in the
Senate.
Cal Cities Position: Watch Status: Referred to the Senate Local Government and
Housing committees.
Cal Cities Position: Oppose unless amendedSB 370 (McGuire) Personal Income Tax Law:
Corporation Tax Law: wildfires: exclusions. As
amended 3/28/23. Would, for taxable years beginning on
or after January 1, 2020, provide an exclusion from gross
income for any qualified taxpayer, as defined, for amounts
received in settlements associated with the 2019 Kincade
Fire in the County of Sonoma.
Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.
Cal Cities Position: None
AB 2430 (Alvarez) Planning and zoning: density
bonuses: monitoring fees. As amended 4/18/24.
Prohibits a local jurisdiction from charging local
monitoring fees on 100% affordable housing
developments using Density Bonus Law (DBL) to ensure
the continued affordability required under DBL and any
applicable local inclusionary housing ordinance.
Status: Referred to the Senate Housing and Local
Government committees.SB 542 (Dahle) Personal Income Tax Law:
Corporation Tax Law: wildfires: exclusions. As
amended 2/5/24. Would, for taxable years beginning on
or after January 1, 2022, and before January 1, 2029,
provide an exclusion from gross income for any qualified
taxpayer, for amounts received in settlement for costs and
losses associated with the 2021 Dixie Fire in the counties
of Butte, Plumas, Lassen, Shasta, and Tehama, or the 2022
Mill Fire in the County of Siskiyou.
Cal Cities Position: Track
AB 2433 (Quirk-Silva) California Private Permitting
Review and Inspection Act: fees: building permits. As
amended 5/20/24. Requires a local agency to complete
plan check services for a building permit within 30
business days of a request from an applicant or employ a
private professional to perform plan checking services.
Status: Referred to the Senate Local Government and
Housing committees.Status: Awaiting hearing in the Assembly Appropriations
committee.
Cal Cities Position: None Cal Cities Position: Oppose unless amended
AB 2663 (Grayson) Affordable housing fees: reports.
As amended 5/2/24. This bill, commencing on January 1,
2026, would require a local agency that collects
inclusionary housing in-lieu fees to annually post on its
website information related to the amount of fees collected
in the previous year and whether the affordable housing
SB 1102 (Nguyen) Personal Income Tax Law:
Corporation Tax Law: oil spill: exclusions. As
amended 4/11/24. Would provide an exclusion from
gross income for any qualified taxpayer for amounts
received in settlements associated with the October 2,
4
fees are intended to be used for a project, if any. Beginning
on January 1, 2026, this bill also requires a local agency
that collects affordable housing fees to post on its website,
every five years, information regarding the amount of fees
collected in the past five years and the projects the fees
were spent on.
governing the Economic and Workforce Development
Program, provisions on the duties and membership of the
program’s advisory committee, the decision criteria for
allocating program funds to colleges, and the definitions
that apply to the program’s provisions.
Status: 2-year bill, awaiting dispensation on the Senate
Appropriations suspense file.
Cal Cities Position: None
Status: Referred to the Senate Housing and Local
Government committees.
Cal Cities Position: Watch
AB 1569 (Garcia) Salton Sea geothermal resource area:
Lithium Valley Office of Development. As amended
5/18/23. This bill would establish the Lithium Valley
Office of Development in the Energy Commission, and
require the office, in consultation with relevant state and
local agencies, to coordinate activities related to funding,
economic development, construction, manufacturing,
technical development, and reclamation of lithium located
in the Salton Sea geothermal resource area.
AB 2729 (Patterson, Joe) Residential fees and charges.
As amended 4/25/24. Prohibits a local agency from
requiring payment of fees or charges on a residential
development before the date of final inspection or the
issuance of a certificate of occupancy, whichever occurs
first, except under specified conditions.
Status: Referred to the Senate Local Government and
Housing committees.
Cal Cities Position: Oppose Status: 2-year bill, awaiting dispensation on the Senate
Appropriations suspense file.
AB 3177 (Carrillo, Wendy) Mitigation Fee Act: land
dedications: mitigating vehicular traffic impacts. As
amended 4/30/24. Would require a housing development
to be located within 1/2 mile of a transit priority area for
purposes of a local agency setting the rate for a mitigating
vehicular traffic impacts fee to reflect a lower rate of
automobile trip generation.
Status: Referred to the Senate Local Government and
Housing committees.
Cal Cities Position: Track
Cal Cities Position: Watch
AB 1819 (Waldron) Enhanced infrastructure financing
districts: public capital facilities: wildfires. As amended
5/2/24. This bill would authorize an enhanced
infrastructure financing district that is at least partially in
high or very high fire hazard severity zones designated by
the State Fire Marshal, to finance heavy equipment to be
used for vegetation clearance and firebreaks,
undergrounding of local publicly owned electric utilities, as
defined, against wildfires, and equipment used for fire
watch, prevention, and fighting.SB 937 (Wiener) Development projects: permits and
other entitlements: fees and charges. As amended
4/8/24. Extends development entitlements for certain
housing development projects by two years and places
restrictions on the fees and charges a local agency may
impose on these projects.
Status: Awaiting assignment to a policy committee in the
Assembly.
Cal Cities Position: Oppose unless amended
Status: Awaiting hearing in the Senate Local Government
committee.
Cal Cities Position: Pending
AB 2922 (Garcia) Economic development: capital
investment incentive programs. As amended 4/15/24.
Reestablishes, until January 1, 2035, the authorization for
the local agency Capital Investment Incentive Program,
which expired January 1, 2024.
Economic Development Status: Awaiting hearing in the Senate Local Government
committee.
Cal Cities Position: SupportAB 1370 (Ta) California Community Colleges
Economic and Workforce Development Program. As
amended 3/28/2023. Would revise and recast several
provisions of the California Community Colleges
Economic and Workforce Development Program. The bill
would extend the operation of the program indefinitely
and would repeal the Job Development Incentive Training
Program. The bill would revise and recast the principles
SB 517 (Gonzalez) Economic development:
movement of freight. As amended 3/22/23. Would
authorize the Governor’s Office of Business and
Economic Development (GO-Biz) to serve as the
coordinating entity to steer the growth, competitiveness,
and sustainability for freight and the supply chain across
5
the state and to promote and assess the continued
economic vitality, economic competitiveness, and
sustainability of the freight sector. Would also authorize
GO-Biz to provide freight and supply chain economic
competitiveness information.
Status: 2-year bill. Awaiting hearing in the Assembly Jobs,
Economic Development, & the Economy committee.
Cal Cities Position: Watch
Online Sales
SB 1144 (Skinner) Marketplaces: online marketplaces.
As amended 5/16/24. Expands existing requirements for
online marketplaces to collect certain information from
high-volume third-party sellers on those platforms, and
permits a district attorney, city attorney, or county counsel
to enforce the requirements.
Status: In the Assembly, awaiting assignment to a policy
committee.
Cal Cities Position: Support
SB 720 (Stern) Aviation: airports: report: emissions:
GO-Biz. As amended 7/10/23. Would require GO-Biz to
create a stakeholder group to identify and pursue
opportunities to attract and develop sustainable aviation
fuel production and infrastructure in the state to help
reach the goal of net-zero greenhouse gas emissions in
California.
Status: 2-year bill. Awaiting hearing in the Assembly
Natural Resources committee.
Cal Cities Position: None
Property Tax
AB 1093 (Patterson) Property taxation: manufactured
homes: tax collection. As amended 7/13/23. This bill
would revise the Manufactured Home Property Tax Law
procedures for issuing a tax clearance certificate or a
conditional tax clearance certificate and for the collection
of unpaid, estimated taxes. With respect to the collection
of taxes that are not yet payable, the bill would require
those taxes to be computed by a certificate or statement
prepared by the tax collector, upon request by an escrow
officer, as provided, giving their estimate of those taxes or
assessments for the current fiscal year and one succeeding
fiscal year.
SB 864 (Smallwood-Cuevas) Workforce development:
workplace rights curriculum. As amended 7/3/23.
Would require the California Workforce Development
Board to assist the governor with partnering with the labor
commissioner and other subject matter experts in
developing a workplace rights curriculum to be provided
to all individuals receiving individualized career services,
supportive services, or training services through the
California workforce system. The measure would require
each local workforce development board to ensure the
provision of workplace rights training consistent with that
workplace rights curriculum. The bill would require the
comprehensive 4-year local plan to include a description of
how the local board plans to comply with this requirement.
Status: 2-year bill. Awaiting dispensation on the Assembly
Appropriations suspense file.
Status: 2-year bill. Awaiting dispensation on the Senate
Appropriations suspense file.
Cal Cities Position: Watch
AB 1868 (Friedman) Property taxation: assessments:
affordable housing. As amended 4/18/24. Presumes,
rebuttably, that an assessor shall not include the value of
the deed of trust that ensures compliance with affordability
restrictions on a property developed consistently with the
Habitat for Humanity model.
Status: Awaiting a hearing in the Senate Revenue &
Taxation committee.
Cal Cities Position: Watch
Cal Cities Position: Watch
SB 1140 (Caballero) Enhanced infrastructure
financing district. As amended 3/21/24. Would
authorize a city or county official to electronically submit a
copy of a city or county’s resolution of intention to
establish an infrastructure financing district to each
affected taxing entity, rather than mailing a physical copy.
Status: In the Assembly, awaiting assignment to a policy
committee.
AB 2353 (Ward) Property taxation: welfare exemption:
delinquent payments: interest and penalties. As
amended 4/24/24. Creates a process for a developer
building affordable rental housing that qualifies for the
property tax welfare exemption to withhold property taxes,
without penalty, while the county tax assessor determines
if the development qualifies for the welfare exemption.
Status: Awaiting assignment to a policy committee in the
Senate.
Cal Cities Position: Watch
Cal Cities Position: Watch
6
Cal Cities Position: Watch
AB 2506 (Lowenthal) Property taxation: local
exemption: possessory interests: publicly owned
housing. As introduced 2/13/24. Authorizes a county
board of supervisors to exempt from property taxation any
possessory interest held by a tenant of publicly owned
housing with a value so low that the total taxes and
applicable subventions on the property would amount to
less than the cost of assessing and collecting them.
Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.
AB 3277 (Committee on Local Government) Local
agency formation commission: districts: property tax.
As introduced 2/27/24. Would require a commission to
determine the amount of property tax revenue to be
exchanged by an affected local agency if the proposal
includes the formation of a district and the applicant is
seeking a share of the 1% ad valorem property taxes.
Status: Awaiting hearing in the Senate Appropriations
committee.
Cal Cities Position: Watch Cal Cities Position: None
AB 2564 (Boerner) Property tax postponement: Senior
Citizens and Disabled Citizens Property Tax
Postponement Fund. As introduced 2/14/24. Would
require money to be transferred, on June 30, 2025, and on
June 30 each year thereafter, from the state General Fund
to the Senior Citizens and Disabled Citizens Property Tax
Postponement Fund when the balance in the latter fund is
less than $15 million.
SB 726 (Archuleta) Property taxation: exemption:
disabled veteran homeowners. As amended 4/13/23.
Increases the disabled veterans’ exemption from property
taxation to $863,790, and indexes the increased amount for
inflation, for lien dates between January 1, 2024, and
January 1, 2034.
Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.
Cal Cities Position: WatchStatus: Awaiting assignment to a policy committee in the
Senate.
Cal Cities Position: Support SB 871 (Archuleta) Property taxation: homeowners’,
veterans’, and disabled veterans’ exemptions. As
amended 9/1/23. Amends the homeowners’ exemption
from property tax to allow a property that receives the
homeowners’ exemption to also receive the disabled
veterans’ or veterans’ exemptions; and takes effect only if
voters approve SCA 6 (Archuleta). SCA 6 is awaiting
referral to a policy committee in the Assembly.
Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.
AB 2897 (Connolly) Property tax: welfare exemption:
community land trusts. As amended 4/1/24. Expands
the definition of a community land trust (CLT) to include
a wholly owned subsidiary that is solely directed and
managed by the CLT, and to provide that a CLT may sell a
dwelling or unit to a qualified owner if that dwelling or
unit is subject to a 99-year affordability restriction.
Status: Referred to the Senate Housing and Revenue &
Taxation policy committees.Cal Cities Position: Pending
Cal Cities Position: Watch
SB 1072 (Padilla) Local government: Proposition 218:
remedies. As amended 4/24/24. Would establish the
Property Tax Assistance for Descendants of Enslaved
Persons Program for purposes of making, upon
AB 3134 (Chen) Property taxation: refunds. As
amended 4/24/24. Would require the county auditor, if
the cancellation of property taxes will result in a refund, to
either process the refund to the payor of the tax or notify
the payor in writing of the requirements for obtaining a
refund. The bill would require that a claim for a refund
under this provision be deemed timely filed if it is filed
within 60 days of the notice. This bill would also authorize
an order for refund of taxes or assessments to be paid to
the assessee of a property, without a claim for refund filed,
if certain conditions are met, including, among other
requirements, that the amount of the refund is less than
$10,000.
appropriation by the legislature, moneys available to
persons who meet specified criteria for purposes of
providing financial assistance equal to the total amount of
property taxes paid on a residential dwelling, as defined, or
$4,000, whichever is less, and as subject to specified
limitations. The bill would, for purposes of determining a
person’s eligibility for monies under the program, require
the person to provide an affidavit, under penalty of
perjury, containing specified information, if the residential
dwelling is owned by the person on property owned by a
nonprofit incorporated association. By expanding the
crime of perjury, the bill would impose a state-mandated
Status: Awaiting hearing in the Senate Revenue & Taxation
committee.
7
local program. The bill would require the Franchise Tax
Board to develop and administer the program and to
provide funds to eligible claimants. The bill would set
forth procedures for administering the program.
Status: Awaiting assignment to a policy committee in the
Assembly.
homeowners’ exemption. Would authorize the legislature
to exempt property eligible for the veterans’ exemption in
an amount up to the full value of the property. If the
legislature increases the homeowners’ exemption, the
measure would require that the legislature provide the
same increase in the veterans’ exemption, except as limited
by the full value of the property.Cal Cities Position: Watch
Status: Awaiting referral to a policy committee in the
Assembly.
Cal Cities Position: Track
SB 1164 (Newman) Property taxation: new
construction exclusion: accessory dwelling units. As
amended 5/16/24. Would enact a property tax new
construction exclusion for the addition or construction of
an accessory dwelling unit between January 1, 2025, and
January 1, 2030.
Revenue and Taxation
AB 2813 (Aguiar-Curry) Government Investment Act.
As amended 4/29/24. This bill, for purposes of ACA 1,
would define “affordable housing” to include rental
housing, ownership housing, interim housing, and
affordable housing programs such as down payment
assistance, first-time homebuyer programs, and owner-
occupied affordable housing rehabilitation programs. The
bill would require a local government to ensure that any
project that is funded with ACA 1 bonded indebtedness or
ACA 1 special taxes to have an estimated useful life of at
least 15 years or 5 years if the funds are for specified public
safety buildings, facilities, and equipment.
Status: Awaiting assignment to a policy committee in the
Assembly.
Cal Cities Position: Oppose
SB 1327 (Glazer) Income taxation: credits: local news
media: data extraction transactions. As amended
5/16/24. Imposes a Data Extraction Mitigation Fee;
enacts credits against the Personal Income and
Corporation taxes for news media entities that pay wages
for current or newly employed journalists or acquire
freelance content; and directs fee revenue to specified
purposes, including to reimburse foregone General Fund
revenue resulting from the credits.Status: Ordered to the Assembly Inactive file at the request
of the author.
Cal Cities Position: OpposeStatus: Awaiting a vote by the full Senate.
Cal Cities Position: Watch
AB 3005 (Wallis) Motor Vehicle Fuel Tax Law:
adjustment suspension. As introduced 2/16/24. Would
authorize the governor to suspend an adjustment to the
motor vehicle fuel tax, scheduled on or after July 1, 2025,
upon determining that increasing the rate would impose an
undue burden on low-income and middle-class families.
Would require the governor to notify the legislature of an
intent to suspend the rate adjustment on or before January
10 of that year and would require the Department of
Finance to submit to the legislature a proposal by January
10 that would maintain the same level of funding for
transportation purposes as would have been generated had
the scheduled adjustment not been suspended.
Status: Awaiting hearing in the Assembly Transportation
committee.
SCA 4 (Seyarto) Property taxation: principal residence
and family home transfers. As amended 4/19/23.
Would place a measure before voters that repeals
Proposition 19’s limitation on the parent-child and
grandparent-grandchild exclusion from change in
ownership of a principal residence to apply only if the
property continues as the primary residence of the
transferee. SCA 4 also reinstates the parent-child,
grandparent-grandchild exclusion for up to $1 million in
aggregate value of all other types of property that is not
the principal residence. Under the measure, both changes
become effective on January 1, 2025, if approved by
voters.
Status: Failed passage in the Senate Governance & Finance
committee.
Cal Cities Position: Watch Cal Cities Position: Oppose
ABX1 2 (Fong, Vince) Motor Vehicle Fuel Tax Law:
suspension of tax. Would suspend the imposition of the
tax on motor vehicle fuels for one year. The bill would
require that all savings realized based on the suspension of
the motor vehicle fuels tax by a person other than an end
SCA 6 (Archuleta) Property taxation: veterans’
exemption. As amended 4/19/23. Would allow a
dwelling that receives the veterans’ exemption or the
disabled veteran’s exemption to also receive the
8
consumer, be passed on to the end consumer, and would
make the violation of this requirement an unfair business
practice, in violation of unfair competition laws. The bill
would require a seller of motor vehicle fuels to provide a
receipt to a purchaser that indicates the amount of tax that
would have otherwise applied to the transaction.
Status: Awaiting assignment to a policy committee in the
Senate.
AB 2061 (Wilson) Sales and Use Tax: exemptions:
zero-emission public transportation ferries. As
amended 5/1/24. This bill, beginning January 1, 2025, and
until January 1, 2030, provides a partial sales and use tax
exemption for a zero-emission public transportation ferry.
Status: Awaiting hearing in the Senate Revenue & Taxation
committee.
Cal Cities Position: Support
Cal Cities Position: None
AB 2274 (Dixon) Taxation: sales and use taxes:
exemption: tax holiday. As amended 3/21/24. Would,
on and after January 1, 2025, exempt from sales and use
taxes the gross receipts from the sale of, and the storage,
use, or other consumption of, any tangible personal
property purchased during the first weekend in August,
beginning at 12:01 a.m. on Saturday and ending at 11:59
p.m. on Sunday.
Sales and Use Taxes
AB 52 (Grayson) Income tax credit: sales and use
taxes paid: manufacturing equipment: research and
development equipment. As amended 6/15/23. The
Bradley-Burns Uniform Local Sales and Use Tax Law,
authorizes counties and cities to impose local sales and use
taxes in conformity with the Sales and Use Tax Law, and
current laws authorize districts, as specified, to impose
transactions and use taxes in accordance with the
Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.
Cal Cities Position: Oppose
Transactions and Use Tax Law, which generally conforms
to the Sales and Use Tax Law. Exemptions from state sales
and use taxes are automatically incorporated into the local
tax laws. This bill would allow, for a taxable year beginning
on or after January 1, 2024, and before January 1, 2029, a
credit against those taxes to a taxpayer in an amount equal
to the amount of tax reimbursement paid during the
taxable year for sales tax on gross receipts that would be
exempt from taxation under the Sales and Use Tax Law
pursuant to the sales and use tax exemption described
above but for the provision that prohibits that exemption
from applying with respect to any tax levied by a county,
city, or district pursuant to, or in accordance with, the
Bradley-Burns Uniform Local Sales and Use Tax Law or
the Transactions and Use Tax Law, sales and use taxes
imposed pursuant to certain provisions of the Sales and
Use Tax Law, and sales and use taxes imposed pursuant to
certain provisions of the California Constitution.
AB 2647 (Low) Property taxation: disabled veterans’
exemption: welfare exemption: housing for law
enforcement and firefighters. As amended 4/10/24.
Expands the disabled veterans’ property tax exemption
and would provide an unmarried surviving spouse a
property tax exemption in the same amount that they
would have been entitled to if the veteran was alive and if
certain conditions are met.
Status: Awaiting hearing in the Assembly Revenue &
Taxation committee.
Cal Cities Position: Pending
AB 2854 (Irwin) Bradley-Burns Uniform Local Sales
and Use Tax Law. As amended 4/10/24. Requires a
local agency to annually provide specified information to
the California Department of Tax and Fee Administration
(CDTFA) regarding the rebate of Bradley-Burns Uniform
Local Sales and Use Tax Law revenues. Provides that, in
any case where a local agency fails to provide the
information above in a timely manner to the CDTFA or
fails to post the information on its internet website, the
department must notify the local agency that it has 30 days
from receipt of the notice to provide or publish the
required information. If a local agency fails to provide or
publish the information within 30 days after receiving the
notice, the department may impose a penalty in an amount
equal to the greater of the following:
Status: Held on the Senate Appropriations suspense file.
Cal Cities Position: None
AB 2006 (Mathis) Sales and Use Tax Law: exemption:
over-the-counter medication. As introduced 1/31/24.
This bill would, until January 1, 2030, provide an
exemption for the state portion of the sales and use tax
imposed on the sale of, and the storage, use, or other
consumption in this state of, over-the-counter medication.
Status: Held on the Assembly Revenue & Taxation
committee suspense file.●20% of any rebated SUT revenues during the
applicable fiscal year; or,Cal Cities Position: Watch
9
●$1,000 for each day the local agency fails to provide or
publish the required information after receipt of the
30-day notice from the CDTFA.
centralized platform, or any other person from advertising,
displaying, or offering a room rate that does not include all
fees or charges required to stay at the short-term lodging,
and requires that they include in the total price to be paid,
all taxes and fees imposed by a government on the stay
before the consumer reserves the stay. This bill would
require a place of short-term lodging, an internet website,
application, or other similar centralized platform, or any
other person to also disclose any additional fees or charges
that will be added to the total price to be paid, or other
penalty that will be imposed, if the consumer fails to
perform certain cleaning tasks at the end of the stay, and
to explicitly describe the cleaning tasks in a written or
electronic notice that is affirmatively acknowledged by the
consumer before the consumer reserves the stay. The bill
would make a violation of its provisions subject to the
specified civil penalty and enforcement provisions
described above.
Status: Awaiting assignment to a policy committee in the
Senate.
Cal Cities Position: Support if amended
AB 3259 (Wilson) Transactions and use taxes: County
of Solano. As amended 5/7/24. Authorizes Solano
County, or any city within Solano County, to impose a
transaction and use tax for general or specific purposes
that exceeds the 2% statutory limitation.
Status: Awaiting assignment to a policy committee in the
Senate.
Cal Cities Position: Watch
SB 243 (Seyarto) Sales and Use Tax Law: exemption:
gun safety systems. As introduced 1/25/23. Would, until
January 1, 2028, exempt from sales and use taxes the gross
receipts from the sale in this state of, and the storage, use,
or other consumption in this state of, a gun safety system,
as defined. This bill contains other related provisions and
other existing laws.
Status: Failed passage in the Senate Governance & Finance
committee.
Cal Cities Position: Watch
Status: Awaiting hearing in the Senate Judiciary committee.
Cal Cities Position: Watch
SB 584 (Limón) Laborforce housing: Short-Term
Rental Tax Law. As amended 5/18/23. This bill would
enact the Laborforce Housing Financing Act of 2023, and
define “laborforce housing” as housing that, among other
things, is owned and managed by specified entities solely
for the benefit of residents and households unable to
afford market rent, and whose residents enjoy certain
protections. The bill would establish the Laborforce
Housing Fund in the State Treasury and would make
moneys in the fund available to the department, upon
appropriation by the legislature, for the creation of
laborforce housing and other specified housing projects by
public entities, local housing authorities, and mission-
driven nonprofit housing providers, as provided.
Status: Awaiting hearing in the Assembly Housing &
Community Development committee.
SB 1086 (Seyarto) Sales and Use Tax Law: motor
vehicle fuel tax: sales price: gross receipts. As
introduced 2/12/24. The Motor Vehicle Fuel Tax Law
imposes a tax upon each gallon of motor vehicle fuel
removed from a refinery or terminal rack in this state,
entered into this state, or sold in this state, at a specified
rate per gallon. Existing sales and use tax laws provide a
partial exemption from the taxes imposed by those laws
for motor vehicle fuel that is subject to the taxes imposed
by the Motor Vehicle Fuel Tax Law. This bill, beginning
January 1, 2025, would exclude from the terms “gross
receipts” and “sales price” under the Sales and Use Tax
Law the amount of any motor vehicle fuel tax imposed
pursuant to the Motor Vehicle Fuel Tax Law.
Status: Failed passage in the Senate Revenue & Taxation
committee.
Cal Cities Position: Oppose unless amended
SB 683 (Glazer) Hotels and short-term rentals:
advertised rates: mandatory fees. As amended 9/7/23.
Would, beginning July 1, 2024, require a person or a
website, application, or other similar centralized platform
that advertises a hotel room rate or short-term rental rate
before the public in this state, or from this state before the
public in any state, to include in the advertised hotel room
rate or short-term rental rate all mandatory fees, that will
be charged in order for the consumer to stay in the hotel
room or short-term rental and include in the total price to
be paid, before the consumer reserves the stay, all taxes
and fees imposed by a government on the stay.
Cal Cities Position: Watch
Short-Term Rentals
AB 2202 (Rendon) Short-term rentals: disclosure:
cleaning tasks. As amended 3/21/24. Current law,
commencing July 1, 2024, prohibits a place of short-term
lodging, an internet website, application, or other similar
10
Status: Inactive file.
Cal Cities Position: Watch
(CEQA) exempts from its requirements residential
projects on infill sites and transit priority projects that
meet certain requirements, including a requirement that
the projects are located within 1/2 mile of a major transit
stop. CEQA defines “major transit stop” to include,
among other locations, the intersection of 2 or more major
bus routes with a frequency of service interval of 15
minutes or less during the morning and afternoon peak
commute periods. This bill would revise the definition of
“major transit stop” to increase the frequency of service
interval to 20 minutes.
Transit
AB 1837 (Papan) San Francisco Bay area: public
transit: Regional Network Management Council. As
amended 3/21/24. Establishes in state law the Regional
Network Management Council and directs the
Metropolitan Transportation Commission to facilitate the
creation of the council.
Status: Awaiting hearing in the Senate Transportation
committee.
Cal Cities Position: Track
Status: Referred to the Senate Local Government and
Housing committees.
Cal Cities Position: Track
AB 2634 (McCarty) Sacramento Regional Transit
District. As amended 5/30/24. Exempts the Sacramento
Regional Transit (SACRT) District from a requirement
that each transit operator that offers reduced fares to
senior citizens must also offer reduced fares to disabled
persons at the same rate established for senior citizens
until January 1, 2027. This bill mandates that if SacRT
offers reduced fares to senior citizens only, under this
exemption, the district shall not increase fares for disabled
persons or disabled veterans. This bill requires, under this
exemption, that if SacRT offers reduced fares to senior
citizens only, then SacRT is to submit a report to the
legislature by January 1, 2026.
AB 1853 (Villapudua) San Joaquin Regional Transit
District: meetings: surplus money investments. As
amended 3/11/24. Would authorize the San Joaquin
Regional Transit District board to provide, by ordinance or
resolution, that each board member receive $100 for each
board meeting and committee meeting attended, not to
exceed $500 in a calendar month.
Status: Awaiting hearing in the Senate Transportation
committee.
Cal Cities Position: Track
AB 1924 (Nguyen, Stephanie) Sacramento Regional
Transit District. As amended 5/13/24. This bill allows
the Sacramento Regional Transit District to expand its
service area to any city within Sacramento County and any
other portion of the unincorporated territory within the
boundaries of Sacramento County where the county has
declared a need for the district to operate.
Status: Awaiting a full vote of the Senate.
Cal Cities Position: None
SB 904 (Dodd) Sonoma-Marin Area Rail Transit
District. As amended 3/21/24. Current law authorizes the
board of the Sonoma-Marin Area Rail Transit District to
submit to the voters of the district a measure proposing a
retail transaction and use tax ordinance. SB 904 would also
authorize special district taxes to be imposed by a qualified
voter initiative and require the board of supervisors of the
counties of Sonoma and Marin to call a special election on
a tax measure proposed by the district’s board of directors
or a qualified voter initiative in their respective counties.
Status: Awaiting assignment to a policy committee in the
Assembly.
Status: Awaiting a full vote of the Senate.
Cal Cities Position: Track
AB 2325 (Lee) San Francisco Bay Area Rapid Transit
District: officers: designation and appointment. As
amended 5/30/24. Would eliminate the treasurer and
controller as specifically designated officers of the San
Francisco Bay Area Rapid Transit District and as positions
subject to appointment and removal by the board. The bill
would also eliminate specified qualifications applicable to
the controller.Cal Cities Position: None
Status: Awaiting hearing in the Senate Transportation
committee.
Cal Cities Position: None
SB 960 (Wiener) Transportation: planning: transit
priority projects: multimodal. As amended 5/17/24.
Directs Caltrans to develop a transit priority policy,
requiring inclusion of bicycle, pedestrian, and transit
priority facilities in the Transportation Asset Management
Plan, the State Highway System Management Plan, and the
AB 2553 (Friedman) Housing development: major
transit stops: vehicular traffic impact fees. As amended
4/15/24. The California Environmental Quality Act
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plain language performance report of the State Highway
Operation and Protection Program (SHOPP). This bill
requires any project in the SHOPP to include bicycle,
pedestrian, and transit priority projects unless a specified
exception applies.
Status: Awaiting assignment to a policy committee in the
Assembly.
Cal Cities Position: Track
Employment Discrimination
SB 1264 (Grove) Employment discrimination:
cannabis use. As amended 4/29/24. Existing law
prohibits employers from discriminating against
individuals in hiring, termination, or employment
conditions based on their off-the-job cannabis use or the
presence of nonpsychoactive cannabis metabolites in drug
screenings. Certain exemptions exist, such as for positions
requiring federal background checks or security clearances.
SB 1264 extends exemptions to additional applicants and
employees within law enforcement agencies, including
those involved in civil enforcement, animal control, or
coroner functions.
SB 1031 (Wiener) San Francisco Bay area: local
revenue measure: transportation improvements. As
amended 5/20/24. Authorizes the Metropolitan
Transportation Commission to propose new taxes, allocate
new revenue and issue bonds for specified transportation
projects, and requires the State Transportation Agency to
consider transit agency consolidation within the San
Francisco Bay area.
Status: Awaiting assignment to a policy committee in the
Assembly.
Status: Awaiting assignment to a policy committee in the
Assembly.
Cal Cities Position: Track
Cal Cities Position: Watch
Enforcement
SB 1417 (Allen) Transit districts: prohibition orders.
As introduced 2/16/24. This bill would provide that the
Santa Monica Department of Transportation is also a
transit district for purposes of provisions regarding
prohibition orders.
Status: Awaiting hearing in the Assembly Transportation
committee.
AB 491 (Wallis) Local government: fines and
penalties. As amended 9/13/23. Makes several changes
to a local agency’s ability to collect administrative fines or
penalties, including changes that apply to all administrative
fines and penalties, as well as changes that are specific to
violations of cannabis-related ordinances.
Status: Awaiting hearing in the Senate Judiciary committee.
Cal Cities Position: SupportCal Cities Position: None
Cannabis AB 1616 (Lackey) California Cannabis Tax Fund:
Board State and Community Corrections grants. This
bill amends the Board of State and Community
Corrections (BSCC) Prop 64 Public Health and Safety
Grant Program to expand the eligibility criteria so that all
of California's 482 cities and 58 counties may apply for
grant funding. The bill further directs the BSCC to
prioritize the allocation of BSCC grants to programs
addressing unlawful retail and cultivation activities.
Status: 2-year bill. Awaiting hearing in the Senate Public
Safety committee.
Direct to Consumer
AB 1111 (Pellerin) Cannabis: small producer event
sales license. As amended 5/22/23. This bill establishes a
small producer event sales license for licensed small-scale
cannabis cultivators in California, utilizing the existing
state framework for cannabis events established under AB
2020. The bill limits license issuance to cultivators meeting
specific cultivation size criteria and designated equity
licensees. Licensees are required to sell only their own
cultivated cannabis products and transport them to event
venues through licensed distributors. Additionally, the bill
mandates event organizers to provide a list of small
producer event sales licensees to the Department of
Cannabis Control (DCC) for temporary event applications
and grants DCC authority to take disciplinary action for
violations. Sponsored by the Origins Council.
Cal Cities Position: Support
SB 820 (Alvarado-Gil) Cannabis: enforcement: seizure
of property. As amended 5/1/23. Sponsored by the Rural
County Representatives of California, this bill empowers
the Department of Cannabis Control or local jurisdictions,
with an inspection warrant, to seize specified property
used in unlicensed commercial cannabis activities, along
with vehicles valued over $5,000 used to conceal or
transport cannabis products for those engaging in suchStatus: Held on the Senate Appropriations suspense file.
Cal Cities Position: Watch
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conduct. Specified property includes various equipment,
materials, and currency exceeding $40,000. The bill
excludes limited unlicensed commercial cannabis activities
involving fewer than 1,000 living cannabis plants and real
property. It establishes notice requirements and forfeiture
proceedings, with seized property sold at public auction
and proceeds split between the local jurisdiction and the
Cannabis Control Fund. Proceeds allocated to the state are
designated for use exclusively under the California
Cannabis Equity Act, subject to legislative appropriations.
Status: Awaiting hearing in the Assembly Business and
Professions committee.
SB 1109 (Bradford) Cannabis licensure. As amended
5/16/24. Requires the Department of Cannabis Control to
collect demographic data about a person applying for a
state license.
Status: Awaiting assignment to a policy committee in the
Assembly.
Cal Cities Position: Pending
Onsite Consumption
AB 1775 (Haney) Cannabis: local control: cannabis
consumption. As amended 4/25/24. This bill specifies
that a local jurisdiction may allow a licensed retailer or
microbusiness to prepare or sell pre-packaged non-
cannabis-infused, nonalcoholic food or beverage products
and to allow, and to sell tickets for, live musical or other
performances on the premises by a licensed retailer or
microbusiness in an area where the consumption of
cannabis is allowed.
Cal Cities Position: Support
Industrial Hemp
AB 2223 (Aguiar-Curry) Cannabis: industrial hemp.
As amended 5/16/24. Allows for cannabis licensees to
manufacture, distribute, or sell products that contain
industrial hemp and places additional restrictions on
industrial hemp products containing tetrahydrocannabinol
(THC) or comparable cannabinoids.
Status: Awaiting hearing in the Senate Business Professions
and Economic Development committee.
Status: Referred to the Senate Business Professions and
Economic Development and Health committees.
Cal Cities Position: Pending
Cal Cities Position: Pending
SB 285 (Allen) Cannabis: retail preparation, sale, and
consumption of non-cannabis food and beverage
products. As amended 4/11/23. Permits the preparation
or sale of non-cannabis food or beverage products in
compliance with all applicable provisions of the retail food
code by a licensed cannabis retailer or microbusiness in the
area where the consumption of cannabis is allowed.
Specifies that the activities above must be authorized by a
local jurisdiction, and only if access to the area where
cannabis consumption is allowed is restricted to persons
21 years of age or older, if cannabis consumption is not
visible from any public place or nonage-restricted area, and
if the sale or consumption of alcohol or tobacco is not
allowed on the premises. Authorizes a local jurisdiction to
allow for the sale of prepackaged, non-cannabis-infused,
nonalcoholic food and beverages by a licensed retailer.
Status: Awaiting hearing in the Assembly Governmental
Organization committee.
Licensing Reform/Simplification
SB 508 (Laird) Cannabis: licenses: California
Environmental Quality Act. As amended 8/4/23.
Establishes conditions under which the Department of
Cannabis Control is not required to serve as a responsible
agency under the California Environmental Quality Act
(CEQA).
Status: Awaiting dispensation in the Assembly
Appropriations committee.
Cal Cities Position: Support
SB 1064 (Laird) Cannabis. As amended 5/16/24. Co-
sponsored by the Rural County Representatives of
California and the California Cannabis Industry
Association, this bill revises the current licensing
framework for retail, distribution, processing and
manufacturing of cannabis or cannabis products for
commercial cannabis activity by creating a uniform
operator license, a revised premises license, as specified,
and transforming a cultivation or laboratory license into a
unified license by January 1, 2028.
Cal Cities Position: Watch
Cannabis Taxation
AB 2555 (Quirk-Silva) Sales and use tax: exemption:
medicinal cannabis: donations. As amended 4/8/24.
This bill ensures continued access to medicinal cannabis
donations for low-income patients by extending
Status: Awaiting assignment to a policy committee in the
Assembly.
Cal Cities Position: Support indefinitely the sales and use tax exemption for medicinal
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cannabis or medicinal cannabis products that are donated
by cannabis licensees, also known as the Dennis Peron and
Brownie Mary Act. The current exemption is set to expire
at the end of 2024 and this bill would extend the sunset to
Jan. 1, 2030.
Status: Awaiting assignment to a policy committee in the
Senate.
Cal Cities Position: Watch
SB 1059 (Bradford) Cannabis tax: cannabis retailers.
As amended 4/24/24. Clarifies that the state’s 15% excise
tax is calculated based on gross receipts of cannabis
products and does not capture any tax or fee imposed by a
local jurisdiction. In some jurisdictions, including the City
of Los Angeles, local cannabis taxes or fees are being
calculated after the state excise tax is applied.
Status: Awaiting assignment to a committee in the
Assembly.
Cal Cities Position: Pending
Testing Integrity
AB 1610 (Jones-Sawyer) Cannabis: Department of
Cannabis Control. As amended 7/5/23. This bill aims to
tackle the issue of illegal over-reporting of potency for
price markups in the cannabis industry. The bill mandates
the Department of Cannabis Control (DCC) to maintain a
record of recall orders on its website, including details like
date, location, licensee name, and license number. It also
requires the DCC to establish a blind proficiency test
method for testing laboratories to ensure consistent
results, conduct biennial in-person audits of testing labs,
set guidelines for audit procedures, and establish quality
assurance standards for cannabis products available for
retail sale.
Status: Awaiting hearing in the Senate Business,
Professions, and Economic Development Committee.
Cal Cities Position: Watch
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