The Mills-Deddeh Transit Development Act establishes the San Diego Metropolitan Transit Development Board, also known as the San Diego Metropolitan Transit System (MTS), governed by a 15-member board with specified powers and duties related to the operation of public transit services in the southern portion of the County of San Diego. The act authorizes MTS to impose a transactions and use tax of up to 0.5% for public transit purposes within its jurisdiction, or a portion of its jurisdiction, pursuant to the Transactions and Use Tax Law and subject to voter approval and various other requirements.

The Transactions and Use Tax Law limits the combined rate of all taxes that may be imposed in accordance with that law in any county to 2%.

This bill would prohibit the tax rate of 0.5% described above that may be imposed by MTS or a qualified voter initiative from being considered for purposes of the combined rate limit under the Transactions and Use Tax Law.