Monterey-Salinas Transit District: sales and special taxes.

Assembly Member Addis proposes modifying the Monterey-Salinas Transit District's taxation authority through dual changes to its revenue-generating capabilities. The legislation would prohibit the district from submitting sales and special tax measures to voters after January 1, 2026, while creating a new pathway for implementing a transactions and use tax of up to 0.25%.

Under the proposed framework, the district could exceed the standard 2% combined rate limit for local transactions and use taxes, provided the measure receives two-thirds approval from the board of directors and subsequent voter authorization. This exception would only apply to ordinances approved before January 1, 2035, and the 0.25% rate would not count toward the jurisdiction's overall tax cap calculation.

The bill maintains existing provisions allowing the district to administer transportation-related fees and set transit fares through board resolution. These modifications aim to restructure the district's revenue options while preserving its operational autonomy in fare-setting and fee collection for transportation system maintenance and improvements.