CA SBX17

Increases the additional sales and use tax rate on diesel fuel from 1.75% to 5.25%, effective July 1, 2016

Restricts revenues from the tax increase to transit capital projects, vehicle/facility maintenance and repair, and services that complement local transportation infrastructure improvements

Requires audits of transit operator finances to verify that new revenues are expended in conformance with spending restrictions and all applicable requirements

Prohibits the State Board of Equalization from adjusting the diesel excise tax rate to account for the sales and use tax increase, eliminating the revenue neutrality mechanism for this specific increase

Requires a 2/3 vote of both legislative houses for passage due to resulting higher taxes under California Constitution Article XIII A Section 3