If passed, the proposal would give local governments better incentives to build open space communities and affordable housing, rather than provide benefits for developments that bring in huge sales tax revenues.
Since Proposition 13 was passed more than 20 years ago, local governments have strived to create retail centers and big-box stores in order collect sales taxes.
Proposition 13 allows the governments to collect about one percent of local sales taxes and keep it in the city in which it was collected. However, under AB680, the measure created by Assemblyman Darrell Steinberg, the sales tax revenues would be divided into three parts – one part would be given to the region on a per-capita basis, one part would be used to develop open space and affordable housing and one part would be divided as it is divided now.
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