he effects of the sales tax on land-use decisions, along with the vast
disparities in sales tax revenues among cities, often lead reformers to urge
a change in the situs basis for sales tax distribution. The most significant
recent reform was Proposition 11, passed by the voters in November
1998. This constitutional amendment allows any two or more local
governments to negotiate sales tax revenue-sharing agreements, with a
two-thirds vote of their governing boards. It will enable some
experiments in cooperation but is likely to have only a modest overall
effect, since local governments that are doing well at attracting retailers
will have little incentive to “disarm” in the sales tax race