Propositions 13 and 218

Measure W says (Section Two D.) "No New Taxes. This Initiative does not raise taxes."

There can be no tax for a Central Park unless county voters choose to pass a tax sometime in the future.  That is the law.

Proposition 13 made six basic changes to the California state constitution:

1. One percent rate cap. Proposition 13 capped, with limited exceptions, property tax rates at one percent of full cash value at the time of acquisition. Prior to Proposition 13, local jurisdictions independently established their tax rates and the total property tax rate was the composite of the individual rates.

2. Assessment rollback. Proposition 13 rolled back property values for tax purposes to their 1975-76 level.

3. Responsibility for allocating property tax transferred to the state. Proposition 13 gave state lawmakers responsibility for allocating property tax revenues among local jurisdictions. Prior to Proposition 13, jurisdictions established their tax rates independently and their property tax revenues depended on the rate levied and the value of the property located within the jurisdiction’s boundaries.

4. Reassessment upon change of ownership. Proposition 13 replaced the practice of annually reassessing property at full cash value with a system based on cost at acquisition. Under Proposition 13, property is assessed at market value for tax purposes only when it changes ownership. Increases in value are limited to an annual inflation factor of no more than two percent.

5. Vote requirement for state taxes. Proposition 13 requires any measure enacted for the purpose of increasing state revenues to be approved by a two-thirds vote of each house of the legislature.

6. Voter approval for local ‘special’ taxes. Proposition 13 requires taxes raised by local governments for a designated or "special" purpose to be approved by two-thirds of the voters.
 

Source: California Budget Project, Proposition 13: Its Impact on California and Implications for State and Local Finances, April 1997.


Point 6 was strengthened in 1996 through passage of Proposition 218.

PROPOSITION 218
VOTER APPROVAL FOR LOCAL GOVERNMENT TAXES. LIMITATIONS ON FEES, ASSESSMENTS, AND CHARGES. INITIATIVE CONSTITUTIONAL AMENDMENT.
 

1.  Limits authority of local governments to impose taxes and property-related assessments, fees, and charges.

2.  Requires majority of voters approve increases in general taxes and reiterates that two-thirds must approve special tax.

3.  Assessments, fees, and charges must be submitted to property owners for approval or rejection, after notice and public hearing.

4.  Assessments are limited to the special benefit conferred. Fees and charges are limited to the cost of providing the service and may not be imposed for general governmental services available to the public.


       ELECTION 2002