CA AB1223

Authorizes the Sacramento Transportation Authority (STA) to issue bonds to finance high-occupancy toll lanes and other toll facilities within Sacramento County, payable from toll revenue, sales tax revenue, development impact fees, or state and federal grants

Expands allowable expenditure categories for STA tax revenues to include construction and improvement of water, stormwater, wastewater, and utility infrastructure that supports infill or transit-oriented development, with a cap of 5% of total revenues for non-transportation facilities

Permits STA to impose a transactions and use tax in a geographic area smaller than the entire county, subject to two-thirds approval by the governing board and voter approval within that area

Requires STA to enter into an agreement with the Capital Area Regional Tolling Authority (CARTA) before issuing bonds payable from toll revenue for CARTA-operated facilities

Mandates that all tax revenues be spent for the primary benefit of the portion of the county where the tax is imposed, supplementing rather than replacing existing transportation funding