California Senate Bill SB333

California 2025-2026 Regular Session

• Introduced: 2/12/25
• Refer: 2/19/25
• Report Pass: 3/19/25
• Refer: 3/19/25
• Report Pass: 4/9/25
• Engrossed: 5/29/25
• Refer: 6/5/25
• Report Pass: 6/18/25
• Refer: 6/18/25
• Report Pass: 7/14/25
• Enrolled: 9/10/25
• Chaptered: 10/13/25
• Passed: 10/13/25

Caption

An act to add Chapter 3.83 (commencing with Section 7294.5) to Part 1.7 of Division 2 of the Revenue and Taxation Code, relating to taxation.

Summary

SB 333 creates a special, county-specific authorization for the San Luis Obispo Council of Governments (SLOCOG) to propose and, with voter approval, impose a local transactions and use tax of up to 1%. The tax may be levied for general or specific purposes and would apply only if the council adopts an ordinance and the measure is approved by voters during a window running from January 1, 2026, through January 1, 2032. The bill also carves out this SLOCOG tax from the existing statewide county combined-rate cap under the Transactions and Use Tax Law. In other words, if approved, the new tax would not count toward the 2% combined local transactions and use tax limit otherwise applicable under Section 7251.1. The bill adds a new chapter to the Revenue and Taxation Code and includes legislative findings stating that a special statute is needed because of unique fiscal pressures in San Luis Obispo County.

Impact

SB 333 amends the Revenue and Taxation Code by adding Chapter 3.83 and Section 7294.5, creating a tailored local tax authority for the San Luis Obispo Council of Governments. It changes how the existing transactions and use tax cap applies by exempting a voter-approved SLOCOG tax from the combined-rate limitation, thereby expanding local taxing capacity beyond what counties and local agencies generally may impose under current law. The practical effect is to give San Luis Obispo County a special statutory pathway to raise additional revenue for local government purposes, subject to local ordinance adoption and voter approval.

Sentiment

The bill appears to have had generally favorable support, as reflected in multiple committee and floor votes with clear majority approval in both houses and final chaptering by the Governor. The vote margins suggest the measure was broadly acceptable to most legislators, though not unanimous, indicating some reservations but not strong overall opposition. The absence of committee transcript material limits insight into detailed debate, but the legislative outcome points to a consensus that the county’s fiscal needs justified the special authority.

Contention

The main point of contention is the bill’s departure from the normal statewide tax-cap structure by allowing one local entity to exceed the 2% combined transactions and use tax limit. That kind of special carve-out can raise concerns about precedent, tax burden, and unequal treatment among counties. Supporters likely viewed the measure as a necessary response to unique fiscal pressures in San Luis Obispo County, while opponents may have objected to granting a special statute and expanding local sales tax authority without a broader statewide framework. The bill’s requirement for voter approval helps address some of those concerns, but the special-district treatment remains the central issue.