San Diego Metropolitan Transit System: transactions and use tax: voter initiatives

The law expands how a local transit funding measure can reach the ballot and allows a tax of up to 0.5% without counting against the countywide transactions-and-use-tax cap. Revenue must support transit and transportation in the area that approves the tax.

What the law does ​

• Allows the MTS board or a qualified voter initiative to propose a retail transactions and use tax of up to 0.5% in all or part of the MTS area.
• Excludes this MTS tax from the combined county transactions-and-use-tax rate limit.
• Requires ballot measures to identify the tax rate, area covered, authorized uses, and an expenditure plan.
• Limits revenue to transportation and transit infrastructure and services benefiting the area subject to the tax, and requires it to supplement rather than replace other transportation funding.
• Allows a ballot measure to authorize bonds repaid from tax proceeds.
• Requires MTS to reimburse the County of San Diego for incremental election costs, including ballot analysis, translations, printing, mailing, and vote canvassing.
• Requires skilled-and-trained workforce commitments or specified project labor agreement alternatives for tax-funded construction contracts over $1 million when the tax applies only to part of the MTS area.

Who it affects ​

• San Diego-area voters in the portion of the MTS service area selected for a proposed tax.
• The San Diego Metropolitan Transit System and its transit riders.
• County of San Diego elections officials.
• Contractors and subcontractors on certain tax-funded transit construction projects.