CITY MANAGER' S REPORT ITEM 4. 5
FEBRUARY 14, 2022 CITY COUNCIL REGULAR MEETING
ITEM: OPPOSE 2022 BALLOT INITIATIVE 21- 0042A1 THE
TAXPAYER PROTECTION AND GOVERNMENT
ACCOUNTABILITY ACT"
RECOMMENDATION: Adopt Resolution to Oppose Initiative 21- 0042A1 The Taxpayer Protection and Government
Accountability Act" State Ballot Measure Restricting
Voters' Input and Local Taxing Authority
SUMMARY:
The proposed Taxpayer Protection and Government Accountability Act limits voters' authority, adopts new and stricter rules for raising taxes and fees, and makes it more difficult to hold violators of state and local laws accountable. Cal Cities is requesting Cities to adopt a resolution demonstrating how harmful this measure would be to communities and people of the State of California.
BACKG ROU N D:
In 2018, the Tax Fairness, Transparency and Accountability Act" or ( AG# 17- 0050 Amendment # 1), was being circulated to qualify for the November 2018 ballot. This initiative would have drastically limited local revenue authority. Through the successful work and advocacy of the League of California Cities and its coalition, the measure' s proponents withdrew the initiative from the ballot in June 2018.
On January 4, 2022, the California Business Roundtable filed the proposed Taxpayer Protection and Government Accountability Act or AG# 21- 0042A1. This measure is far more detrimental to cities than the measure filed in 2018, because it would limit local and state services to the benefit of corporations. Cal Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly oppose this initiative.
Staff is requesting City Council adopt a Resolution to oppose Initiative 21- 0042A1 The Taxpayer Protection and Government Accountability Act" and state ballot measure restricting voters' input and local taxing authority. If adopted, this resolution will be submitted to Cal Cities Ballot Measures Department.
REASON FOR RECOMMENDATION:
1) Limit Voter Authority And Accountability
Limits voter input. Prohibits local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures.
Invalidates the Upland decision that allows a majority of local voters to pass special taxes. Taxes proposed by the Initiative are subject to the same rules as taxes placed on the ballot by a city council. All measures passed between January 2022 and November 2022 would be invalidated unless reenacted within 12 months.
CITY MANAGER' S REPORT PAGE 2
FEBRUARY 14, 2022 CITY COUNCIL REGULAR MEETING
OPPOSE 2022 BALLOT INITIATIVE 21- 0042A1 THE TAXPAYER
PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT"
2) Restrict Local Fee Authority To Provide Local Services Impacts franchise fees. Sets new standard for fees and charges paid for the use of local and state government property. The standard may significantly restrict the amount oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations pay for the use of local public property. Rental and sale of local government property must be reasonable" which must be proved by clear and convincing evidence." Except for licensing and other regulatory fees, fees and charges may not exceed the " actual cost" of providing the product or service for which the fee is charged. Actual cost" is the " minimum amount necessary." The burden to prove the fee or charge does not exceed ' actual cost" is changed to clear and convincing" evidence.
3) Restrict Authority Of State And Local Governments To Issue Fines And Penalties For Violations Of Law
Requires voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties. 4) Restrict Local Tax Authority To Provide Local Services Requires voter approval to expand existing taxes ( e. g., UUT, use tax, TOT) to new territory ( e. g., annexation) or expanding the base ( e. g., new utility service).
City charters may not be amended to include a tax or fee.
New taxes can be imposed only for a specific time period.
Taxes adopted after ] an. 1, 2022, that do not comply with the new rules, are void unless reenacted.
All state taxes require majority voter approval.
Prohibits any surcharge on property tax rate and allocation of property tax to state.
5) Other Changes
No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.
FISCAL IMPACT:
Taxpayer Protection and Government Accountability Act of 2022 would significantly impact local government municipal finances and services which puts billions of dollars currently dedicated to state and local services at risk, and could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more.
CITY MANAGER' S REPORT PAGE 3
FEBRUARY 14, 2022 CITY COUNCIL REGULAR MEETING
OPPOSE 2022 BALLOT INITIATIVE 21- 0042A1 THE TAXPAYER
PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT"
ATTACH M ENTS:
A. Resolution opposing Initiative 21- 0042A1 The Taxpayer Protection And Government Accountability Act" State Ballot Measure restricting voters' input and Local Taxing Authority
B. Initiative 21- 0042A1 The Taxpayer Protection And Government Accountability Act"
CITY MANAGER' S REPORT PAGE 4
FEBRUARY 14, 2022 CITY COUNCIL REGULAR MEETING
OPPOSE 2022 BALLOT INITIATIVE 21- 0042A1 THE TAXPAYER
PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT"
APPROVALS:
0 2
Ter Va g Date
ector o overnment Services
City Clerk
Z - ZoZ-Z
Salvador Navarrete Date
City Attorney
2• 10• ZZ
Ste n J. Salvatore Date
City Manager
The foregoing resolution was passed and adopted this 14th day of February 2022, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney
ATTACHMENT B
BELL, McANDREWS & HILTACHK, LLP
ATTORfYEYS AND COUNSEIOR$ AT LAW
4g3 CAPITOL MALL, SUITE E'i00
SACRAMENTO, CALIFORNIA 95814
9161 44''c- 77S7
FAX ( 916) 442- 7759
1 O 4 2 Amd#.
www.bmhlaw.com
January 4, 2022 RECEIV D
Anabel Renteria JAN 0 4 2022
Initiative Coordinator
Office of the Attorney General INITIATIVE COORDINATOR
State af California ATTORNEY GENER. AL' S OFFICE
PO Box 994255
Sacramento, CA 94244- 25550
Re: Initiative 21- Q042- Amendment Nnmber One
Dear Iruhative Coordinatar:
Pursuant#o subdivisian (b) af Section 9002 of the EIections Code, enclosed please find Amendment # 1 to Initiative No. 21- 0042 " The Taxpayer Pratection and Gavernment Accountability Act:' The amendments are reasonably germane ta the theme, purpose or subject of the initiative measure as originally proposed.
I am the proponent of the measure and request that the Attorney General prepare a circulating title and summary of the measure as provided by law, using the amended language.
Thank you for your time and attention processing my request. 5incerely,
c.( kr
Thomas W. Hiltachk
2 1 - 0 p 4 2 Amdt.# I
The Taxpayer Protection and Government Accountabilifiy AcT Deleted codified text is denoted in st+ k. Added codi#ied text is denoted by rtalics and underline. j Section 1. Title
This Act shali be known, and may be cited as, the Taxpayer Protection and Government Accountability Att.
Section 2. Findings and Declarations
a) Californians are overtaxed. We pay the nation' s highest state income tax, sales tax, and gasoline tax. According to the U_S. Census Bureau, California' s combined state and local tax burden is the highest in the nation. Despite this, and despite two consecutive years of obscene revenue surpluses, state politicians in 2021 alone introduced legislation to raise more than $ 234 billion in new and higher taxes and fees.
b) Taxes are only part of the reason for California' s rising cost- of-living crisis. Californians pay biliions mo e in hidden " fees" passed through to consumers in the price they pay for products, services, food, fuet, utilities and housing. Since 2010, government re enue from state and local " fees" has more than doubled.
c) California' s high cost of living not only contributes to the s#ate' s skyrocEceting rates of poverty and homelessness, they are the pushing working families and job-providing businesses out of the state. The most recent Census showed that California' s popuiation dropped for the first time in history, costing us a seat in Congress. In the past four years, nearly 300 major tarporations relocated to other states, not counting thousands more small businesses that were forced to move, sell or close. d} California voters have tried repeatedly, at great expense, to assert control over whether and how taxes and fees are raised. We have enacted a series of ineasures to make taxes more predictable, to limit what passes as a " fee," to require voter approval, and to guarantee transparency and accountability. These measures include Proposition 13 ( 197$), Proposition 62 ( 1986, Pr position 218 ( 1996), and Proposition 2fi( 2010).
e} Contrary to the voters' intent, these measures that were designed to control taxes, spending and accountability, have been weakened and hamstrung by the Legislature, gavernment lawyers, and the courts, making it necessary to pass yet another initiative to close loopholes and reverse hostile court decisions.
Section 3. Statement of Purpose
a) In enacting this measure, the voters reassert their right ta a voice and a vote on new and higher taxes by requiring any new or higher tax to be put before voters for approval. Voters also intend that atl fees and other charges are passed or rejected by the voters themsetves or a governing body elected by voters and not unelected and unaccountable bureaucrats.
b) Furthermore, the purpase and intent of the vflters in enacting this measure is to increase transparency and accountability over higher taxes and charges by requiring any tax measure placed on the ballot— 1 either at the state or local level— to clearly state tF e type and rate of any tax, how long it will be in effect, and the use of the revenue generated by the tax.
c) Furthermore, the purpose and intent of the voters in enacting this measure is to clarify that any new or increased form of staCe government revenue, by any name or manner of extraction paid directiy or indirectly by Californians, shaH be authorized onfy by a vote of the Legislature and signature of the Governor to ensure that the purposes for such charges are broadly supported and transparently debaied. d} Furthermare, the purpose and intent of the voters in enacting this measure is afso to ensure that taxpayers have the right and ability to effectively balance new or increased taxes and other charges with the rapidly increasing costs Californians are already paying for housing, food, childcare, gasoiine, energy, healthcare, education, and other basic costs of living, and ta further protect the existing constitutiona! timit on property taxes and ensure that the revenue from such taxes remains local, without changing or superseding existing constitutional provisions contained in Section 1( c) of Article XIII A. e) In enattingthis measure, the voters also additionally intend to reverse loopholes in the legislative twothirds vote and voter approval requirements for government revenue increases created by the courts including, but not limited to, Cannabis Coalition v. City of Upland, Chamber oftammerce v. Arr Resources Board, Schmeer v. Los Angeles County, Johnson v. County of Mendocino, Citizens Assn. ofSunset eeach v.
Orange County Loca! Agency Formation Commission, and Wi de v. City ofDunsmuir.
Section 4. Section 3 of Article Xlli A of the California Constitution is amended to read:
Sec. 3 a Ever lev char e or exaction o an kind im osed b state Ipw is either tax or an exem t charae•
b 1 Any change in state e law which results in any taxpayer paying a new or higher tax must be imposed by an act passed by not less than two- thirds of all members elected to each of the two houses of the Legislature, and submiited ro the electorate and approved hv a maioritv vote, extept that no new ad valorem taxes on real property, or sales or transaction taxes on the sales of real property, may be imposed. Fach Act shall include:
A) A specific duration oftime that the tax will be im} osed and an estimcrte afthe annuat amount ex.Letted C o be derived from the tax.
BJ A st ecific and 1e4a11v bindina and enforceable limitation on how the revenue from the tax can be spent.
If the revenue from the tax can he spent for unrestricted aenera! revenue auruoses, then a statement that the tax revenue can be spent for" unrestricted aeneral revenue purposes" sha(l be inctuded in a sevarate, stancf- alone section Anv proposed chanqe to the use of the revenue from the tax shal! be adonted bv a senarate act that is passed bv not less than two-thirds of all members elected to each ofthe two houses ofthe Leaisfature and submitted to the electorate and avproved bv a maioritv vote. 2) The title and summary and ballot labe! or puestion reauired for a measure pursuant to the Elections Code sha!! for each measure arovidinq for the lmvosition af a tax, rntludina a measure proposed bv an elector pursuant to Ar icle! 1, include:
fA) The tvae and amount or rate of the tax,•
Bt The duratron of the tax; and
2 C) The use of the revenue derived from the tax.
c1 Any chanqe in state law which result5! n any taxAaYer vayinQ a new or hi4her exempi charqe must be imposed bv an act vassed bv each of the two houses of the epislature. Each act shall specifv the tvae of exemnt charse as arovided in subdivision( e1 and the amour+t or rate ofthe exem t charqe ro be imposed. d{ 4b} As used in this section and in Section 9 ofArtrcle 11," tax" means everva levy, charge, or exaction of any kind imposed by*"^ state Iaw that is not an exempt charqe, v^^++ tie F,. i.,,..,.,.
e1 As used in this section, " exempt charpe" means onlv the followin4:
aa , c•f r.,.... wr.,.:.• +„+ t,.,...,,,.,.
rrrcve c e oi- sio unsc c
ivi c'62 co c c- pa7car
j} A reasonabJe cha rge for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the 2a3e a le actua! costs to the State of providing the service or product to the payor. f2(} A charge+ aa ese- for the reasonable regulatory costs to the State incident to issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof. 3) A levv charoe or exoction co!lected from local units of government health care nroviders or health care servrce plans rhat is primarily used bv the State of California for the qurposes of increasinq reimbursement rares or pavments under ihe Medi-CaI t roqram and the revenues of which are primarllv used to finance the non- federa/ portian of Medi-Cal medical assistance expenditures. 4) Areasonable charge+ r esed for entrance to or use of state praperty, or the purchase, rental, or lease of state property, except charges governed by Settion 15 afArticle Xl. 5} A fine, or penalty'
r rt L nr mnn -.......,.-., e f cludina anv avplicable interestfor nonpavment thereof imposed by the judicial branch of government or # e, " a state administrative enforcement aaencv aursuant to adiudicatory due process, to punish a violation of law. 6t A lew charae assessment or exaction collected for the promotion of CaJifornia tourism pursuant to ChaPter 1( commencin with Section 139951 of Part 4.7 of Division 3 of Title 2 of the Government Code. j,{} Any tax or exempt cha e adopted after lanuary 1, 2022 8 9, but prior to the effective date of this act, that was not adopted in compliance with the requirements of this section is void 12 months after the effective date of this act unless the tax or exempt char e is reenacted '•+"^ '^:'+.~ e ,~, ;^^ ea :^ n in compiiance with the requirements of this section.
c IZ{} The State bears the burden of proving by^^^^^' r^^ f cleor and convincina evidence
that a levy, charge, or other exaction is an exempt charae and nat a tax. Fhe State bears the burden of provinq bv clear and convincinq evidence that the omount of the exempt chorqe is reasena6le and that the omount charQeti does not exceed the actua! cost o nrovidinp the service or aroduct to the pav r. a 3 2) The retention afrevenue bv or the pavmentto a non-qovernmenta entity of a lew charae, nr exaction of anv kind imposed bv stafe law shal! not be afactor in determinina whether the levv charpe, or exaction is a tax or exempt charae.
3) The characterization of a levv charpe or exaction of any kind as beina voluntary or prrid in exchanqe for a benefit nrivifeqe aflowance authorization or asset, shal! not be a factor in determinina whether the levy charae or exaction is a tax or an exemnt charpe.
4 The use o revenue derrved rom the lev char e ar exaction si aIl be a actor in determinin whether the lew, charQe, or exaction is a tc or exempt charpe.
h) As used in this section:
1) " Actual cost" o,fprovidinc a service or product means:! i) the minimum amount necessary to reimburse the aovernment for the cost of urovidina the service or product to the payor and( ii) where the amount charaed is noi' used bv ihe aovernment for anv purpose other than reimbursincr that cost. ! n computinq actual cast" the maximum amount thaf mav be imposed is the actual cost less aN other sources of revenue includinq But not timired to taxes other exempt charaes, qrants, and state or federa! funds received to provide such service or Aroduct.
2 " Extend" includes but is not limited ta doina any of the followincr with respect to a tax or exempr charpe• lenpthening irs duration deJaving or etiminatinq its expiratiorr expandinp its apulication to a new territory or class vf navor or expandinct ihe base to which its rate is applied. 31 " lmvose" means adopt enact, reenact create, establish, collect, rncrease or extend. 4) " State law" includes but is not lrmited to anv state statute, state re4ulation, state execufive order, state resolution state rulino state oQinivn letter or other tepal authoritv or interpretation adopted, enacted enforced issued or imp' emented by the leqislative or executive brpnches of state povernment.
State faw" does not include actions taken by the ReAents ofthe University o California, Trustees of the California State Univers iv or the Board of Governors af the Calffornia Communitv eolleaes.
Sectian S. Section 1 of Article XIII C of the California Constitution is amended, to read:
Sec_ 1. Definitions. As used in this articfe:
L1" Actual cost" of providinq a service or product means:( i1 the minimum amount necessary to reimburse the aovernment for the cost o providina the service or product to rhe Aovor, and( iiJ where the amount charaed is not used bv the aovernment for pny purpose other than reimbursinq that cost. ! n comautinA actual cost" the maximum amount that mav 6e imposed is the actual cost less all other saurces ofrevenue includinp but not timited to taxes other exempr charQes, arants, and state or federal funds received to nrovide such service or product.
b)" Extend" intludes butis not limitedto doina any ofthe followina with respect to a tax, exempt chQrqe, orArtkle Xl11 D assessmenr fee or charqe• lenptheninq its duration, de/ avinp or etiminatinct its exoirption, expandina its aAplicafion to a new territory or class of AoYor, or expandina the base to which its rat e is apnlled.
4 c" General tax" means any tax imposed for general governmental purposes. dl " lmnose" means odopt enoct reenact create, establish, collect, increase, or extend. b" ocal government" means any county, city, city and county, including a charter city or county, any special district, or any other local or regional governmentaf entity or an elector pursuant to Article! 1 or the inrtiative power provided bv a charter orstotute.
ff) "tocal! aw" includes but is not limited to anv ordinance, resolution, reaulation, rulina, opinion letter, or other leaal Quthoritv or interpretation adopted enacted, errforced, issued or implernented bv a loca! Qovernment.
gL" Special district" means an agency ofthe State, formed pursuant to general law or a special act, for the local performance of governmental or proprietary functions with limited geographic boundaries including, but not limited to, school districts and redevelopment agencies. f d} " Special tax" means any tax imposeci for specific purpases, including a tax itnposed for specific purposes, which is placed into a general fund.
jit{e} As used in this article, and in Section 9 ofArtrcle 11, " tax" means every a+y-levy, charge, or exaction of any kind, imposed by a local p__•. m^^+ law that is not an exempt tharqe.,^^++"^^"'^..^~^. fi) As used in this settion " exempt charae" rneans onlv the fo!lowinq:
i F .. a4. a L. e.. efi+.,..,.., 3.,,+ I...:..' - e
o"`- .'-"'-' v`-"---` --`- .------..-
f{-} A reasonable charge+ ese far a specific local government service or product provided directly to the payor that is not provided tQ those not charged, and which does not exceed the actual costs to the local government of providing the service or product.
A charge+ ese for the reasonable regulatary costs fio a local government for issuing licenses and permits, performing investigations, inspections, and audits, enfarcing agricultural marketing orders, anci the adminisErative enforcement and adjudication thereof. j{ 4} A reasor+oble charge+ ese for entrance to or use of local government property, ar the purchase, rental, or lease of local government property.
j41{ y A fine; or penalty, ^v'-^vc c^T nro rtc^ o- ci'i^a; z; c includinq vnv applicab( e interest for nanpavment thereo imposed by the juditial branch of government or a local government administrative enforcement aqencv pursuant to adjudicatory due process,'. to punish a violation of law. 5{} A charge imposed as a condition of property development. No levv charqe, or exattion repulvtinp or related to vehicle miles traveled mav be imposed as a condition of probertv develoAmeni or occuAancv.
L{ a} An " ,. . Y, ent.,.., ., .,.,..,,.. e+ sa assessment fee, or charpe:,,,,.,.,.,, :., ., r,,.,,. o..,.+ ti e- e ie se#subiect ro Article XI I I D or an assessmer timp.,osed u on a business in a tourism marketrnq distritf a arkin and 6usiness im rovement area or a ro ert and business im rovement district. 5 7) A charae imposed for a specific healnc are service nrovided directJv to the pavor and that is not provided to those not charaed and whith does not exceed the reasonable costs to the local qovernment arovidina the health care service. As used in this paraqraph a " health care senrice" means a service lirensed or exempt from licensure bv the state pursuont to Chapters 1, 1. 3, or 2 of Division 2 ofthe Health and Safetv Code.
Section 6. Section 2 of Articie Xlll C of the California Constitution is amended ta read:
Sec. 2. Local Government Tax Limitation. Notwithstanding any other provision of this Constitution:
aj Every levv charpe or exaction of any kind imposed 6y loca!( aw is either a tax or an exempt charqe. All taxes imposed by any local government shall he deemed to be either general taxes or special taxes. Spec+al purpose districts or agencies, including school districts, shall have no power to levy general taxes. b) No local Iaw whefher pr osed by the uovernina bodv or bv an elector, may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A genera6 tax shall not be deemed to have been increased if it is imposed at a rate nat higher than the maximum rate so approved. The election required by this subdivision shall be consolidated with a regularly scheduled general election for members af the governing bady of the local gavernment, except in cases of emergency declared by a unanimous vote of the governing body_ c)
No local law gev e whether arouosed bv the aoverning bodv or bv an elector, may impose; ==^', ^~:~^'^' any special# ax unless and until that tax is submitted to the etectorate and approved by a two-thirds vote. A special tax shall not be deemed to hav been increased if it is imposed at a rate not higher than the maximum rate so approved. d) Ti e title and summary and ballot label or Question reguired for a measure nursuant to the Elecrions Code shall for each measure providina far the imRosition of a tax, include:
1) Tire tvpe and amount or rate of ihe tax
2) the duration the tax; and
3) The use ofthe revenue derived from the t x. !fthe proposed tax is a 4eneral tax, the nhrase" for penerat qovernment use" shall be required and no advisory meosure mav anAear on the same ballot that would ind cate that the revenue from the qeneral tax wil! could or should be used for a specifrc nuraose. fe1 OnJ the voverninp bodv of a local qavernmenf other than an elector pursuant to Artfcle II or the initiative uower pravided 6v a charter or statute sha!! have the authoritv to impose onv exempt charqe.
The aoverninq bodv shatl rmnose an exem, t charpe bv an ordinance sQecifvina the tvae of exempt charqe 6 os provrded rn Section 1( i) and the amouni or rate o,fthe exempt charpe to be imposed, and passed 6v the aoverninq body This subdivision shall not applv to charpes specified in paraaraph( 7) of subdivision (i) of Section 1.
fl No amendment to a Charter which nrovides for the imqosition extension or increase of a tax or exempt charpe shall be submitted to or approved bv the electors nor shalt any such amendment to a Charter hereafter submitted to or aAproved by the electors become effective for any puraose. p) Anv tax or exempt chorqe adopted after lanuary 1 2022 but nrior to the effective date of this act that was not adopted in compliance with the repuirements of this section is void IZ months after the effective date of this act unless the tax or exemnt charqe is reenacted in comnliance with the repuiremenCs of this section.
h)( 11 The local crovernment bears the burden of provina bv clear and convincina evidence that a levv, cirarae or exaction is an exemt t charqe and not a tax The local qovernment bears the burden of arovinq hv ttear and convincinr evidence that the amounr of the exempt charae is reasonable and that the amvunt charqed does not exceed the uctuat cost ofprovrdina the service or product ro the pavor. 21 The retention of revenue bv or the payment to a non- povernment I entitv of o levv, charae, or exaction of anv kind imuosed bv a loca! law shall not be a factor in deiermininq whether the levy, charqe, or exaction is a tax or exempt charQe.
t3) The characterization of a levv charqe or exaction of anv kind rmpased by a local law as bernu c aid in exchanae for a benefit privile4 allowance authorization or asset shall not be facrars in determininq whether the levv charpe or exaction is a tax or on exemr r charpe. 4) The use ofrevenue derived from the Ievy rharae or exaction shall be a factor in determininp wheiher the levv charae or exaction is a tax or exempt charqe.
Sectivn 7. Section 3 of Article XIII D of the California Constitution is amended, to read:
Sec. 3. Praperty Taxes, Assessments, Fees and Charges Limited a) No tax, assessment, fee, ef charge or surchar e includin a surchar e based on the value o ro ert shall be assessed T upon any parcel o# property or upon any persan as an incident of property ownership except:
1 The ad valarem property tax ' described in Section 1( a)_ofArticle XI11 and Settion 1( u] ofArticle XIIt A and descrihed and enarcted pursuant ta the voter approva! re4uirement in Section 1( b1 o Article XII I A.
2) Any special non-ad vatorem tax receiving a two-thirds vate of auolified electors_pursuant to Section 4 of Article XI11 A r frpr rp oivinn n rwn- thirds vote of those nurhorized to vote in a communitv facilities district bv the Legislature pursuant to statute as it existed on December 31, 2021. 3} Assessments as provided by this article.
4) Fees or charges for property related seroices as provided by this article. 7 b) For purpases of this article, fees for tfie provis on of electrical or gas service shali not be deemed charges or fees imposed as an incident of property ownership.
Section 8. Sections 1 and 14 of Article XIII are amended to read:
Sec. i Unless otherwise pravided by this Constitution or the laws of the United States:
a) A! I property is taxable and shall be assessed at the same percentage offair marketvalue. When a value standard other than fair market value is prescribed by this Canstitution or by statute authorized by this Constitution, the same percentage shall be applied to determine the assessed value. The value to which the percentage is applied, whether it be the fair market value or not, shall be known for property tax purposes as the full value.
b) All property so assessed shall be taxed in proportion to its futl value. c) A!! proreeds from the taxation of propertv shalt be apnortioned accordinp ta taw to the districts within the counties.
Sec. 14. All property taxed by state or focal government shall be assessed in the county, city, and district in which it is situated. Notwithstandinq onv other provisron oflaw such siate ar loca! qroperty iaxes shal! be apnortioned accordinp to law to the districts within the counties.
Section 9. General Provisions
A. 1"his Act shall be liberally construed in order to effectuate its purposes.
B.( 1) In the event that this initiative measure and another initiative measure or measures relating to state or local requirements for#he imposition, adoption, creation, or estabfishment of taxes, charges, and other revenue measures shall appear on the same statewide election ballot, the other initiative measure or measures shatl be deemed to be in conflict with this measure. In the event that this initiative measure receives a greater number of affirmative votes, the provisions of this measure shafl prevail in their entirety, and the provisions of the other initiative measure or measures shall be nufl and void. 2) ! n furtherance of this pravision, the voters hereby declare that this measure conflicts with the provisions of the " Housing Affordability anci Tax Cut Act of 20 2" and " The Tax Cut and Housing Affordability Act" both of which would impase a new state property tax( called a" surcharge" M on certain real property, and where the revenue derived from the tax is provided to the State, rather than retained in the county in which the praperty is situated and for the use af the county and cities and districts within the county, in direct violation of the provisions of this initiative. 3} If this initiative measure is approved by the voters, but superseded in whole or in part by any other conflicting initiative measure approved by the voters at the same election, and such conflicting initiative is later held invalid, this measure shall be se[f-executing and given fuil force and effect.
C. The provisions of this Act are severable. if any portian, section, subdivision, paragraph, clause, senience, phrase, word, or application of this Act is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity af the remaining portions of this Act. The People of the State of California hereby declare that they would have adopted this Act and each and every portion, sectian, subdivision, paragraph, clause, sentence, phrase, word, and application not 8 declared invalid o unconstitutional without regard to whether any portian of this Act or application thereof would be subsequently declared invatid.
D. If this Act is approved by the voters of the State of California and thereafter subjected to a iegal challenge alleging a violation of state or federal law, and both the Governor and Attorney General refuse to defend this Act, then the following actions shall be taken:
1 Notwithstanding anything to the contrary contained in Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code or any other law, the Attorney Generai shall appoint independent counsel to faithfufly and vigorously defend this Act on behalf of the State of California. 2) Before appointing or thereafter substituting independent counsel, the Attorney General shall exercise due diligence in determining the qualificatians of independent counsel and si all obtain written affirmation from independent counsel that independent counsel will faithfully and vigorously defend this Act. The written affirmation shall be made public[y avaifable upon request. 3) A continuous appropriation is hereby rnade from the General Fund to the Controller, without regard to fisca! years, in an amount necessary to cover the costs of retaining independent counsel to fa'rthfully and vigorously defend this Act on behalf of the State of California. 4) Nothing in this section shall prohibit the proponents of this Act, or a bona fide taxpayers association, from intervening to defend this Act.
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