ALERT // OPPOSE SB 762

INCREASES LOCAL TAXES

8/17/26 UPDATE: Governor Gavin Newsom has signed SB 762 without comment. Thank you to all who urged him to veto it, for we had to try.

Summary: SB 762 permits a dozen cities and one county to vote locally to raise their “transactions and use tax” higher than currently allowed by the State.

They think your money is theirs!

In June, Gov. Gavin Newsom & the Democrats jacked up healthcare taxes, which will increase premiums for Californians by hundreds of dollars.

And now, Newsom has this bad bill on his desk, which would take even more money out of the pockets of citizens.

The deadline for him to sign or veto this bill is August 17, 2026.

Take action: Tell Newsom to VETO SB 762

Phone: 916-445-2841 (Mon-Fri 9a-5p)

Web form: https://www.gov.ca.gov/contact

Please tell Newsom’s office: “I’m calling to urge the governor to veto SB 762. This bad bill raises taxes on working families and sets a bad precedent for other cities and counties to copy, making us all poorer. Veto SB 762.”

Highlights of what SB 762 would do

• SB 762 permits a dozen cities and one county to vote locally to raise their “transactions and use tax” higher than currently allowed by the State. They are Santa Barbara County and the cities of Carpinteria, Santa Maria, Santa Cruz, Pacifica, Palo Alto, Los Altos, Los Gatos, Santa Rosa, Rohnert Park, San Pablo, Hercules, San Gabriel.
• The proposed local tax hikes must be presented to voters for their approval (and SB 762’s urgency clause permits these tax hikes to be on this year’s ballot).
• Use tax definition from a tax attorney: “California use tax is a tax on the storage, use, or consumption of tangible personal property in California for which California sales tax was not paid. Same rate as sales tax — 7.25% base plus district add-ons. The short version is that use tax applies to out-of-state purchases, online purchases from non-registered sellers, and certain business-use acquisitions. Businesses report use tax on CDTFA returns; individuals report on California income tax return.”

Dig deeper into this bad bill, and see who voted for and against it:

Visit our Legislation Center and see SB 762 under the section “More Bad Bills.”