A late-blooming proposal to intervene in a decades-long squabble among cities over allocation of sales taxes was turned back Wednesday by the Senate Governance and Finance Committee.
The measure, Assembly Bill 658, didn't even get a motion for approval during the hastily called hearing.
It had surfaced just Monday as a "gut-and-amend" maneuver by Assemblyman Charles Calderon, D-Whittier, aimed at overturning a San Francisco Superior Court decision July 31 reversing a Board of Equalization rule on sales tax allocation.
The rule required that local taxes on merchandise ordered through a retail outlet and shipped from a remote site be placed in a countywide pool for allocation to cities and other local governments.
The city of Brisbane and several others had sued, contending the taxes should be allocated to the jurisdiction in which the transaction occurs.
Lobbyists from cities lined up on both sides of the issue. The League of California Cities urged the committee not to intervene until the legal situation is clarified. The committee's chairwoman, Davis Democrat Lois Wolk, agreed, calling the issue "extremely complex."
Dan Walters, Bee Capitol Bureau