Popular Vote Urged on Sales Tax Sharing

A hotly disputed bill that would force municipalities in the six-county region around the state capital to share sales taxes may be unconstitutional unless the 1.8 million people in the area are given a chance to vote on the proposal, according to the Legislature’s legal advisor.

The author of the bill, Assemblyman Darrell Steinberg (D-Sacramento), said Wednesday that he disagreed with the legal opinion, which was sought by a Republican opponent. But he said he had no problems with putting the issue before voters, if it is indeed required by law.

Steinberg is pushing the revolutionary tax-sharing plan as a way to stop what many see as a silly, money-driven competition among neighboring cities to lure auto malls and big-box retailers.

By sharing future growth in sales taxes, Steinberg and the measure’s supporters argue, cities in the Sacramento region would lose the incentive to compete against one another and could instead work together on common problems such as air pollution, traffic congestion and urban sprawl.

But opponents of the measure argue that the bill is a socialistic attempt by a graying metropolis to siphon tax dollars from wealthier suburbs. What was billed by Steinberg as a way to foster regional cooperation has instead turned divisive, they note, with cities and legislators from the area taking opposing sides.

It was one of those legislators, Assemblyman Tim Leslie (R-Tahoe City), who requested the opinion from the legislative counsel, the office that advises lawmakers on the legality of their bills.

Though the opinion concluded that lawmakers have the power to pass tax-sharing legislation, it said such measures raise legal questions and that the state would have to allow voters in affected areas to decide the issue.

“AB 680 is not only an uncommonly bad idea, but an unconstitutional one to boot,” Leslie told the assembled crowd, largely consisting of lobbyists for cities, counties and business interests.

Opposition to Steinberg’s bill has been mounting in recent weeks, as more cities and counties join the fight.

One of the latest opponents is Los Angeles County Sheriff Lee Baca, whose department provides police services to some of the cities working to kill the legislation.

The bill has cleared the Assembly and is now in the state Senate.