Bill to Let Counties Impose Tax for Roads Gains

Legislation supported by Gov. George Deukmejian that would allow any county, with local voter approval, to impose a special sales tax to finance construction and repair of roads and transit systems was passed by the Senate Thursday and sent to the Assembly.

The bill, approved on a 22-8 vote--one more than the required simple majority of the 40-member Senate--would allow imposition of a local sales tax of up to 1 cent on the dollar, increasing the levy to a maximum 7 cents. The statewide sales tax is 6 cents.

Under present law, each county must ask the Legislature for permission to seek voter authority for an additional sales tax. The Senate-passed bill would grant blanket authority for all counties to do it.

Alameda and Santa Clara counties already are at the proposed 7-cent maximum level. A 6 1/2-cent sales tax, which includes one-half cent for transportation and transit, already is in effect in Los Angeles, San Francisco, Contra Costa, Fresno, San Mateo and Santa Cruz counties.

Reject Proposal

Orange County voters overwhelmingly rejected a proposed sales tax increase for transportation in 1984. Voters in San Diego County will deal with a proposed half-cent increase at the polls in November.

Currently, several other counties are asking legislative approval of bills that would authorize local elections to levy a local sales tax for transportation.

Under the bill by Sen. Wadie P. Deddeh (D-Chula Vista), a county board of supervisors could propose to voters a local sales tax of one cent or one-half cent on the dollar. To take effect, the tax would require approval by a majority of the voters.

Various government and private organizations have estimated that local governments are short between $400 million and $1.7 billion a year in revenue needed to maintain and improve existing local streets and roads.

Calls for Bond Issues

In his plan announced last weekend to improve transportation in California, Deukmejian called for a pair of bond issues on the 1988 and 1990 ballots totaling $2.3 billion. He embraced the Deddeh local sales tax bill as one component of his overall program.

Deddeh, chairman of the Senate Transportation Committee, has agreed to carry Deukmejian’s bond issue legislation, which is expected to encounter heavy opposition in the Legislature.

The local sales tax measure briefly reignited a debate that occurred last month over whether higher local taxes for streets, roads and transit systems gave transportation a higher priority than additional money for schools.

One opponent, Sen. Ralph C. Dills (D-Gardena), who advocates giving more money to education than Deukmejian has proposed, noted that the bill could reduce revenue to the state by $42 million next year because the increased sales taxes would be deducted on state tax returns. This would reduce revenue for programs, such as education.

Not ‘the Way to Go’

“I don’t think taking away the general sales tax from the state of California is the way to go,” Dills insisted.

Sarcastically mocking Deukmejian’s opposition to increasing general taxes, Dills declared: “We are trying not to have any tax (increases) under this Administration so we can run for a third term or President or whatever. But we will let people vote on this locally.”

But Sen. John Seymour of Anaheim, Senate Republican caucus chairman, cautioned against framing the issue as an education-versus-transportation fight. “We can deal with education separately,” he said.