ITEM 4. 2
CITY MANAGER' S REPORT
MARCH 13, 2023 CITY COUNCIL REGULAR MEETING
ITEM: OPPOSE 2024 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 and input, 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.
The measure puts billions of local government tax and fee revenues at risk statewide with related core public service impacts. The measure would have significant negative impacts on the City of Lathrop operations and core service delivery. The proposed constitutional initiative is sponsored by the California Business Roundtable.
On February 14, 2022, City Council approved the initial opposition letter, however the League of California Cities, has requested that Cities approve the updated resolution language and oppose this measure.
BAC KG ROU N D:
On January 4, 2022, the California Business Roundtable filed the" Taxpayer Protection and Government Accountability Act" or AG# 21- 0042A1. On Feb. 1, 2023, the measure qualified for the November 2024 ballot.
The League of California Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly opposes this initiative.
Local government revenue- raising authority is currently substantially restricted by state statute and constitutional provisions, including the voter approved provisions of Proposition 13 of 1978, Proposition 218 of 1996, and Proposition 26 of 2010. The Taxpayer Protection and Government Accountability Act adds and expands restrictions on voters and local government tax and fee authority.
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.
CITY MANAGER' S REPORT PAGE 2
MARCH 13, 2023 CITY COUNCIL REGULAR MEETING
OPPOSE 2024 BALLOT INITIATIVE 21- 0042A1 THE TAXPAYER
PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT"
REASON FOR RECOMMENDATION:
Effective date
All new or increased taxes or fees adopted by the Legislature, a city council, or the local voters after Jan. 1, 2022, must comply with the Act' s new rules.
State taxes
All new or increased state taxes will require majority voter approval.
Local taxes
New requirements for voter approval;
o Existing tax is applied to a newly annexed territory. o Existing tax is applied to a new service or product, for example when a utility user tax is applied to a new service.
All new or increased taxes adopted after Jan. 1, 2022, must include a sunset date.
Fees and charges
Requires that charges for access, use and rental of government property be reasonable" such as fees charged for use of government facilities and public works infrastructure to oil companies, utilities, gas companies, cable companies, and other corporations.
Fees and charges for services and permits 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." Examples include planning services, excavation and encroachment permits, preparation of candidate statement, and permit parking.
State and cities have burden of proving by ' clear and convincing evidence" that a fee/ charge is not a tax, that the amount is reasonable, and that it does not exceed the " actual cost."
No fee or charge or exaction regulating vehicle miles traveled can be imposed on new development.
CITY MANAGER' S REPORT PAGE 3
MARCH 13, 2023 CITY COUNCIL REGULAR MEETING
OPPOSE 2024 BALLOT INITIATIVE 21- 0042A1 THE TAXPAYER
PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT"
Fines and penalties [ administrative enforcement of state law and municipal codes]
May require voter approval of fines and penalties 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. Examples include nuisance abatement, organic waste reduction requirements, and failure to maintain a vacant property.
FISCAL IMPACT:
The Taxpayer Protection and Government Accountability Act 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.
ATTAC H M E NTS:
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"
C. Draft letter opposing Initiative 21- 0042A1
CITY MANAGER' S REPORT PAGE 4
MARCH 13, 2023 CITY COUNCIL REGULAR MEETING
OPPOSE 2024 BALLOT INITIATIVE 21- 0042A1 THE TAXPAYER
PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT"
APPROVALS:
a
T resa argas Date
irector of Governme Services/
City Clerk
G . zd z --
Salvador Navarrete Date
City Attorney
3• • 23
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP OPPOSING INITIATIVE 21- 0042A1 THE TAXPAYER PROTECTION AND GOVERNMENT ACCOUNTABILITY ACT" STATE BALLOT MEASURE RESTRICTING VOTERS'
INPUT AND OCAL TAXING AUTHORITY
WHEREAS, an association representing California' s wealthiest corporations and developers is spending millions to push a deceptive proposition aimed for the November 2024 statewide ballot; and
WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and WHEREAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure and our environment; and WHEREAS, the measure may make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and WHEREAS, the measure puts billions of dollars currently dedicated to local services at risk and could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more; and NOW, THEREFORE, BE IT RESOLVED that the City of Lathrop, opposes Initiative 21- 0042A1; and
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City of Lathrop will join the NO on Initiative 21- 0042A1 coalition, a growing coalition of public safety, education, labor, local government, infrastructure advocates, and other organizations throughout the state.
The foregoing resolution was passed and adopted this 13t'' day of March 2023, 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
ATtORNEYS AND GOUNSELOR$ AT LAW
466 CAPITOL MALL, SUITE BOO
SAGRAMENTO, CALIFOiiNIA 99814
9161 442' 7757
FAX ( 916) 442' 7759 2 Q O
www. bmhlaw. com
January 4, 2022 R IV D
Anabel Renteria JAN 0 4 2pz2
Initiative Coordinator
Office of the Attorney General II IITIATIVE CofJRDINATOR State of California ATTORNBY C3BNERAL' S OFFICE
PO Bax 994255
Sacramento, CA 94244- 25550
Re: Initiative 21- Q042- Amendment Number One
Dear Initiative Coordinator:
Pursuant# o subdivision( b} of Section 9002 of the Etections Code, enclosed please find Amendment # 1 to Initiative No. ZI-0042 " The Taxpayer Pratection and Government Accountabzlity Act." The arnendments are reasonably germane to 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.
Sincerely,
tiiK./
TilOITi18 W. H11tdC1' liC
21 - 0042 Am t.
The Taxpayer Protection and Government Accountability Act Deleted codified text is denoted in st+ kee. Added codified text is denoted by rtalia and underline.] Section 1. Title
This Act shall be known, and may be crted as, the Taxpayer Protection and Government Accountability Act.
SecEion 2. Findings and Declarations
a Califarnians are overtaxed. We pay the nation' s highest state intome tax, sales tax, and gasoline tax. Acconiing 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 billions more in hidden " fees" passed through to consumers in the price they pay for products, services, food, fuel, utitities and housing. Since 2010, government revenue from state and loca) " fees" has more than doubled.
c) California' s high cost of living not only contributes to the state' s skyrocketing 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 Califarnia' s population dropped for the first time in history, costing us a seat in Congress. In the past four years, nearly 300 major carporations 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 aver whether and how taxes and fees are raised. We have enacted a series of ineasures to make taxes more predictable, to limit what passea as a " fee," ta require voter approvai, and to guarantee transparency and accountability. These measures include Proposition 13 ( 1978), Proposition 62 ( 1986), Proposition 218 ( 1996), and Proposition 26( 2010j.
ej Contrary to the voters' intent, these measures that were designed to control taxes, spending and accountability, have been weakened and hamst ung by the Legislature, government lawyers, and the courts, making it necessary to pass yet another initiative to close loophales and reverse hostile court decisians.
Section 3. Statement of Purpose
ay In enacting this measure, the voters reassert their right to 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 all fees and other tharges are passed or rejected by the voters themselves or a governing body elected by voters and not unelected and unaccountable bureaucrats.
b) Furthermore, the purpose and intent ofthe vaters 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 eithe at the state o local level-- to clearly state the 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 ofthe voters in enacting this measure is to clarify that any new or increased form of state government revenue, by any name or manner of extraction paid directfy or indirectly by Californians, shaH be authorized only by a vote of the Legislature and signature of the Governor ta ensure that the purposes for such charges are broadly supported and transparently debated. d Furthermore, the purpose and intent of the voters in enacting this measure is atso to ensure that taxpayers have the right and ability to effectively balance new or increased taxes and o#her charges with the rapidly increasing costs Californians are already paying for housing, food, childcare, gasoiine, energy, heaRhcare, education, and other basic costs of living, and to further protect the existing constitutiona! limit on property taxes and ensure that the revenue from such taxes remains local, without thanging or superseding existing constitutional provisions contained in Section 1( c) of Article XIII A. e) in enacting this measure, the voters also additionally intend to reverse loopholes in the legislative twothirds vote and voter approval requirements for government revenue lncreases created by the courts including, but not limited to, Cannabis Coalition v. City of Upland, Chamber of Commerce v. Air Resources Board, Schmeer v. Los Angeles County,lohnson v. Caunty afMendocino, Citizens Assn. ofSunsei 8each v.
Oronqe County Loca! Agenty Formotion Commission, and Wilde v. City of Dunsmuir.
Sectian 4. Sedion 3 of Article XIII A of the California Constitution is amended to read:
Sec. 3( al Every levv, charae, or exaction of anv kind imoosed bv state! aw is erther o tax o an exemut charae•
b 1 Any change in state t.a a e! ow which results in any taxpayer paying a new or hlgher tax must be imposed by an act passed by not less than two-thirds of all members elected to each ofthe two houses of the Legislature, and submitted to th electorate and anvroved bv a maiorftv vote, except that no new ad valorem taxes on real property, or sales or transaction taxes on the sales of real property, may be imposed. Each Act sha!! indude:
L]A specifrc duration af rime that the tax will be imposed ond an estimare Q, the annuat amount ex rected ta be derived from the tax.
BJ A svecr c and leqallv bindrna and enforceable limitation on how the revenue from the tax can be spent.
If rhe revenue from the tax can be snent for unrestricted aenera! revenue purnoses, then a statement that the tax revenue can be spent for" unrestricted peneral revenue purposes" shall be induded in a seporate, stand- alone section. Anv prouosed chan4e to the use of the revenue from the tax shall be adooted bv a senarate ad that is nassed bv not Jess than two-thirds of al! members elected to each of the two houses of the Leaislature ond submitCed to the electorate and anproved by a maioritv vote. 2) The title and summary and ballot label or nuestion reauired for a measure pursuant to the Etections Code shall, for each meosure vrovidina for the imnosition of a tax, includina a measure nroaosed by an elector bursuant to Article! I, rnclude:
A) The tyne and amount or rate of the tax;
8) The duratron of the tax; and
2 C) The use of the revenue derived from the tax.
c) A»y chant e rn state law which results in anv tax,vaver vavina a new or hipher exempr charqe must be imnosed bv on act nassed bv each of the two hauses of rhe Leaislature. Each act sha!! specify the e o exemat charae as nrovided in subdivision tel, and the amount or rate ofthe exemnt chorcre to be imvosed.
As used in this sectian and in Sedron 9 of Article fl" tax" means everva+ levy, charge, or exaction of any kind imposed by siate low fhat is not an exempt tharae. e) As used in thrs section, " exempt char4e" means onl the followina:
we., er..,,..,...,.:.,... tie :_+,. a....
j.} A reasonable charge ir eseai for a specific government service or product provided directly to the payor that is not provided ta those not charged, and which does not exceed the xease a{ e actua! costs ta the State of providing the seroice or product to the payor. j21 3y A charge esed-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, charae, or exaction collected from lota/ units oj aovernmeni; health care nroviders or health care service vlans ihat is vrimarilv used bv the State of California for the nur oses increasinq rerm6unement ra[ es or pavments under the Medi- Ca! proaram, and rhe revenues of which are ArimarilY used to nance the nonfederal portion of Medi-Cal medical assistonce exaenditures. 4j A reasonable charge+ esed for entrance to or use of state property, or the purchase, rental, or lease of state property, except charges governed by Section 15 af Article Xl. 5) A fine, or penatty, indudina anv avalkable interest for nonpay_m nt ther o imposed by the judicial branch of government or t-& a Ee, - - n•'• ` a siate administrative
enforcement aaencv aursuant io adjudicatory due process, to punish a violation of law. 6) A lew charQe, assessment or exadion ca!lected for ihe promoiion of CaUfornia tourism pursuarrt to Chaater 1 tcommencin with Section 13995) of Part 4. 7 of Division 3 of Title 2 of the Gavernment Code. f{ c3 Any tax or exemat char e adopted afterlanuary 1, 2022 9 9, but prior to the effeciive 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 in compliance with the requirements of this section.
g Z{d The State bears the burden of proving by c/ear and convincina evidente that a levy, charge, or other exaction is an exemnt charae and not a tax. The State bears the burden of provinq by clear ond convincinq evidence ihat the amount ofthe exempt charge is reasonable and that the amount charaed does not exceed the actual cost o nrovidinp the service or product to the navor. 3 21 The reteniion ofrevenue bv, orthe pavment to, a non-aovernmenta! entity ofalew, charae, or exaction ofanv kind imposed bv state law, shall not be afactor in determinina whether the le+v, charae, or exaction is a tax or exem ot charae.
31 The characterization of a lew, charue, or exaction of anv kind as beino voluntarv, or paid in exthanQe for a benefit privileae. allowance, authorization, or asset shaJ! not be a fador in determinina whether rhe levs, charae, or exaction is a iax or an exemot charae. t41 The use ofrevenue derived from the levv charpe or exaction sha/I be a factor in determinina whether the levv charae, or exaction is a tax or exemut chrrrpe. h) As used in this section:
11" Actual cost" ofprovidina a ser+rice or nroduct means:( i)the mrnimum amount necessary to reimburse the aovernment for the cost of nrovidina the service or nroduct to the pavor, a d liil where the amount charaed is not used bsr che aovernment for anv vurpose other than reimbursino that cost. In computinq odua! cosY' the maximum amount rhat mav be imaosed is the actual cost Jess al! othersources of revenue indudi»a, but not limired to taxes, other exemnt charaes arants and state or federol funds received to provide such service or product.
21 " Extend"; ncludes but i.s nat l;mited to, doing any of the followina with resnect to a rax or exemvt charoe: lenothentng its duration, delavina or eliminatina its exviration, exvandina its annlicatron to o new territory or class of Aavor, or expandina the base to which its rate is applied. 3J" Imvose" means adont, enact, reenact create, establish, coilect increase vr extend. l4) "State! aw" includes, but is not limited to, anv state statute, state reaulation, state executive order. stvte resolution, state rulino, sta[ e opinivn letter, or other leaal authoritv or interpretation adopted, enacted, enforced, issued, or imalemented bv the leQislative or executive branches of state aovernment.
State law" does not indude actions taken bv the Rec enrs ofthe University o California. Trustees ofthe Colifornia State Universitv, or fhe Baard of Governors of the California Communitv Colleaes.
Section 5. Section 1 of Article XIII G of the California Constitution is amended, to read:
Sec. i. Definitions. As used in this articte:
o)" Artua! cost" ofurovidinp a service or aroduct means: li1 the minimum amount necessary to reimburse the aovernment for the cost of providin4 the service or product to the povor, and( ii) where the amount charc ed is not used bv rhe aovemment for anv purpose other than reimbursina that cost,_ In_computina actual cost" ihe maximum amounr thot mav be imposed is the actual cost less all other sources of revenue includina, but not limited to taxes, ather exempt char4es, arants, and state or federo! funds received to provide such service or product.
Lb" Extend" includes, but is not Iimited to, doina anv of the followina wirh res,nect to a tax, exemnt charqe, or Artitle Xlll D assessment fee, or charpe: lencrtheninq its duration, delavinp or eliminatrnA its exoiration, expandina its auplication to a new territory or dass of Aa or, or expandina the base to which its rate is apalied
4 cl{a}" General ta' means any tax imposed for general governmenta{ purposes. 1d1" Imnose" means adont, enact reenact create, establish, collect; increase, or extend. je 4b}" Local government" means any county, city, city and county, including a charter city or county, any specia) district, or any other locai or regional governmental entity, or an electorpursuant to Article 11 or the initiative power pravided bv a charter or statute.
fl "Loca! law" indudes, but is not limited to, any ordinance, resolutivn, reaulation, rulina, opinron letter, or other leaa! authoriiv or interAretation adopted enacted, enforced, issued, Of JItTple!)'12Ilt2(? Y Q IOCQI Qoverr ment.
gZ c}" Special districY' means an agency of the State, formed pursuant to generat law or a special act, for the local performance of governmental or proprietary functions with limited geogrephic boundaries inctuding, but not limited ta, school distritts and redevelopment agencies. 1,{d} "Special tax" means any tax imposed far specific purpases, including a tax imposed for specific purposes, wMich is placed into a general fund.
jil{ e As used in this article, ond in Sectfon 9 Artfcle! t. " tax" means every a- levy, charge, or exaction of any kind, imposed by a local gsMe e law ' n n xem har e. fil As used! n this section, " exemat ch raeu means onlv the followi» a:
t.-....F..:.... h.. h.".,.,#:+.,....-,..+:.... L.... ...: le. e. 21(} A reasonable charge i psse for a specific loca! government service or product provided directly to the payor that is no# provided to those not charged, and which does not exceed the le actual costs to the local government of providing the service or product. f( 3 A charge+ ese for the reasonable regulatory costs to a local government for issutng licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof. j
A reasonable charge ir e# for entrance to or use of local government property, or the purchase, rental, or lease of local government property.
A fine; or penalty, ^- ^*^
r ^^^`^• "^ inctudinq ony applicable rnterest or nanaavment thereo imposed by the judicial branch of government or a local government administrative enforcement acrencv aursuant to adjudicatory due nrocess. as a-Fesa e# ro punish a violation of law. j5{ 6 A charge imposed as a condition of property development. No levv, charge, or exactian reaulatina or related to vehide miles traveled mav be impased as a condition of aroAertv developme» i or otcupancv.
L 4 n „«,.,.....,
e.,...., ., .,...,.,,.,+ Aa s.,.,.. ossessment. fee, or charae:.,,, « a :^ ^....^^^,••:+ ti e e i5ie+ s# subiect to Article XI II D, or an assessment imp„osed upnn a business in a rourism marketrnq district a parkinQ and business improvement area, or a ropertv and business improvement district. 5 f71 A charge imnosed for a sneci c health care service nrovided direct to the payor and that is not provided to those not charaed, and whrcir does nof exceed the reasonable costs to the loca overnment of nrovidina the health care service. As used in this paranraph, a " health care servrce means a service licensed or exemnt from licensure by the state pursuant to Chapters 1, 1. 3. or 2 of Division 2 of the Health and Safetv Code.
Section 6. Section 2 of Article Xlll C of the California Constitution is amended to read:
Sec. 2. Local Government Tax Limitation. Notwithstandin any other provision of this Constitution:
a) Every levv, charae, or exaction of anv kind imposed by local! aw is either a tax or an exemnt charae. All taxes imposed by any local government shall be deemed to be either general taxes or special taxes. Special purpos districts or agencies, including schuoi districts, shall have no power to levy general taxes. b) No local law_-^;^*, whether proposed by the aovernina bodv or bv pn 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 general tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so appcoved. The election required by this subdivision shall be consolidated with a regularly scheduled generaf election for members of the governing body of the local government, except in cases of emergency detlared by a unanimous vote of the governing body. i?
sk t diwsi No local ! aw ever- ae whether aronosed bv the aovernina bodv or bv on elector, may impos , any special tax unless and until that tax is submitted to the electorate and approved by e two-thirds vote. A special tax shall not be deemed to have been increased if it Is imposed at a rate not higher than the maximum rate so approved. d] The titte and summarY and baUot label or auestion reauired for a measure pursuant io the Elections Code shall, for each measure arovidina for the impasition of a tax, indude:
I) The tvne and amouni or raie of the tax,•
2) fhe duration of the tax; and
3 The use of ihe revenue derived from the tax !tthe proposed tax is a Qeneral tax, the phrase" for genervl vovernrr ent use" shall be required, and no advisory measure may appear on the same bal/ot thai would indicate ihat the revenue from the aeneral tax will, could, or shoutd be used for a sveci c nurnose. e) Onlv the aovernina borlv of a local navernment, other than an elector nursuant to Article tl or the inrtiative power provided bv a tharter or statute, shall have the auihori to imnose ony exempt chorqe.
The aoverning 6ody shatl impose an exemAt tharae by an ordinance specifvina the tvpe of exempt chorge 6 os nrovided in Section 1( f) and the amount or rate of the exemat charae to be imnosed, and passed by the aoverninp body This subdivision shall not apalv to charqes specified in paraaraoh( 7) of subdivision fi) Section 1.
f)No amendment to a Charter which nrovides for the imvosition, extension, or increase of a tax or exemnt chorae shall be submitted to or annroved bv the electors nor shall any such amendmenr ro a Charter hereafter submitted to or aanroved bv the electors become effective for anv purpose. fa) Anv tax or exemAt charcte adoated afterlanuary 1, 2022, but nrior to the effective date of this aci; that was noi adonied in compliance with the reauirements of this section is void 12 monihs after f.he e ective date of this act unless the tax or exemot charoe is reenacted in compliance with the reauirements of this sectian.
1h1f1) The local aovernment bean the burden of arovina bv c/ear and convincina evidence that a levv, charpe or exadion is an exempt charge and not a tax. The locpl aovernment bears the burden vf nrvvina bv clear and convincina evidence that the omount of the ex mqt charge is reaso able a d that the amo rn charaed does not exceed the artual cost of arovidlna the service or nroduct io the aavor. f21 The retention ofrevenue bv, or the povment to, a non-aovernmental entit'y of lew, charae, or exactlon of anv kind imnosed bv a locol law, shal/ not be a factor in deierminina whether the levv, charoe, or exaction is a tax or exemnt charae.
l3) The characterization of a lew, charAe, or exaction of anv kind imposed by a focal law as beina paid in exchanae for a benefit; privile4e, allowonce, authorfzation, or assei shall not be facton in determininc whether rhe le n, charae, or exaction is a tax or an exempt charae. 4) The use of revenue derived from the levy, charae or exactian shol/ be o factor in determinina whether the! e . charae, or exadion is o tax or exemot charpe.
Section 7. Section 3 of Article XIII D of the Califarnia Constitution is amended, to read:
Sec_ 3. Property Taxes, Assessments, Fees and Charges Limited a) No tax, assessment, fee, ef charge, orsurcharqe, inc/udfna a surchorae based on the value ofaronertv. shail be assessed iy agep upon any parcel o#property or upon any person as an incident of property ownership except:
1) The ad valorem property tax" descr;bed in Section 1( a) of Article XIII and Section 1(a] ofArticle X!!lA, and described and enacted aursuant io ihe voter approva! rec uiremeni in Section 1( b) Article Xiil A.
2j Any special non- ad valorem tax receiving a two-thirds vote of Quali ed electors pursuant to Section 4 of Article Xlli q, ar after receiving a two-thirds vote ofthose aurhorized to vote in a communitv faciJities disirid by rhe Leaisloture nunuant to s[ atute as it existed on December 31. 2021. 3) AssQssments as provided by this article.
4) Fees or charges for property related seroices as provided by this artitle. 7 b) For purposes of this article, fees for the provision of electrical or gas service shall nat be deemed charges or fees imposed as an incident of property ownership.
Section 8. Sections i and 14 of Article XII I are amended to read:
Sec. l Unless otherwise provided by this Constitution or the laws of the United States:
a) All property is taxable and shall be assessed at the same percentage offair market value. When a value s# andard other than fair market value is prescribed by this Constitution 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 o not, shall be known for property tax purposes as the full value.
b} All property so assessed shall be taxed in proportion to its full value. c) All aroceeds from the taxation ofnrovertv shall be aAnortioned aaordind ta! aw to the districts within the counties.
Sec. 14. All property taxed by state or local government shall be assessed in the county, city, and district in which it is situated. Notwithsrondina anv other nrovislon oflaw, such state orlccal nroperty taxes shall be annortioned accordina to! aw to the districts withln the countles.
Section 9. General Provisions
A. This 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 s#ate or local requirementsforthe imposition, adoption, creation, orestabfishment oftaxes, charges, and other revenue measures shall appear on the same statewide election bafEot, the other initiative measure or measures shall be deemed to be in con lict with this measure. In the event that this initiative measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions ofthe other initiative measure or measures shall be ull and void. 2) In furtherance of this provision, the voters hereby declare that this measure confHcts with the provisions of the " Housing Affordability and Tax Cut Act of 2022" and " The Tax Cut and Hausing Affordability Art," both of which would impose a new state property tax( called a " surcharge") 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 property is situated and for the use of the county and cities and districts within the rnunty, in direct violation of the provisions of this initiative. 3j 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 self-executing and given fuil force and effect.
C. The provisions of this Act are severable. 1f any portion, section, subdivision, paragraph, clause, sentence, phrase, word, o applitatiort 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 afthe remaining portions of this Act. 7he People o#the State of California hereby declare that they would have adopted this Act and each and every portion, sectian, subdivision, paragraph, clause, sentence, phrase, ward, and application not 8 declared invaiid or unconstitutional without regard to whether any portion of this Act or application thereof would be subsequently declared invalid.
D. If this Act is approved by the voters of the State of California and thereafter subjected to a legal challenge alleging a violation of state or federal law, and both the Governor and Attorney General refuse o defend this Act, then the following actions shall be taken:
1) Notwithstanding anything to the contrary cantained in Chapter 6 of Part 2 of Division 3 of Title 2 ofthe Government Code or any other law, the Attorney Generai shall appoint independent counsel to faithfully and vigorousiy 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 shall obtain written affirmation from independent counsel that independent counsel will faithfully and vigorously defend this Act. The written a rmation shall be made publicfy avaiEable upon request. 3) A continuous appropriation is hereby made from the General Fund to the Controller, wlthout regard to fiscal years, in an amount necessary to cover the costs of retaining independent counsel to faithfully 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.
9 Attachment C
SAMPLE OPPOSE LETTER
Email a copy to BallotMeasures@caicities. ora as well as your Regional Public Affairs Manager.
CITY LETfERHEAD*'`*
DATE
Bismarck Obando
Director of Public Affairs, League of California Cities 1400 K Street, Suite 400
Sacramento, CA 95814
RE: Letter Opposing Initiative 21- 0042A1
On DATE, the City/ Town of voted to oppose Initiative 21- 0042A1, a deceptive, developer-sponsored proposition aimed for the November 2024 statewide ballot that would significantly jeopardize cities' ability to provide essential services and infrastructure for our residents.
The measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and projects and would limit voter input by prohibiting local advisory measures where voters can express a preference on how they want their local tax dollars spent, This measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including impacts on local infrastructure and our environment,
This measure also may make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods,
Unless defeated, the measure puts billions of dollars currently dedicated to local services at risk, and could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more.
PLEASE CITE SPECIFIC IMPACTS TO YOUR CIN THAT WOULD RESULT FROM THIS INITIATIVE.
The measure benefits wealthy corporations and real estate developers while decimating our local communities and neighborhoods.
You may list the City/ Town of in formal opposition to Initiative # 21- 0042A1 and include our city as part of the growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state opposed to this deceptive proposition.
Sincerely,
NAME
TITLE
CITY/ TOWN of