ATT 6 - Public Comment - Various Correspondences - Received After Agenda Printed

City of Murrieta + Taxpayer Protection Act (Agenda Item 19) Ben Granholm
Fri 6/14/2024 1:02 PM
To: Stone, Lori <[email protected]>
Cc: Levell, Jon <[email protected]>; Holliday, Ron <[email protected]>; DeForest, Lisa <[email protected]>; Warren, Cindy <[email protected]>; City Clerk <[email protected]> 4 attachments (322 KB)

4.8.24 - TPA Fact Sheet .pdf; 4.8.24 - TPA Impact On Taxes Cheat Sheet.pdf; 4.8.24 - TPA Truth vs Lies Fact Sheet .pdf; TPA Sample Resolution Language.pdf;
CAUTION: This email originated from outside of the organizaon. Do not click links or open aachments unless you recognize the sender and know the content is safe.

Good morning, Mayor Stone and Councilmembers:

My name is Ben Granholm, I am reaching out on behalf of the Taxpayer Protection and Government Accountability Act (TPA), a statewide initiative on the November 2024 ballot.

We are writing today to urge the City of Murrieta to reject Agenda Item 19 on the June 18 Council Agenda and instead adopt a resolution in support of the TPA.

TPA empowers voters with the right to vote on all new and higher taxes, increases accountability and transparency among local jurisdictions and residents, and ensures that local property tax revenues remain in the County in which they are collected.

Despite a deceptive Title and Summary from the Attorney General, the elements of the measure are widely supported by voters – polling at more than 60% support.

We have amassed a broad coalition of more than 165 state and local organizations and over 1,400 partners, including small businesses, social justice leaders, housing advocates, elected officials, and taxpayers.

Californians pay among the highest taxes and fees in the nation. Jobs and families are fleeing the state for opportunity elsewhere. Californians are demanding a greater voice and more accountability on how politicians raise and spend our tax dollars.

Attached is a few items of background to help inform your decision:

General Fact Sheet
Impact on Taxes Cheat Sheet
Truth vs. Lies
We truly appreciate your time and consideration. Should you have any questions, please do not hesitate to contact me.

Thank you,
Ben Granholm
Senior Account Executive
Swing Strategies
Received After Agenda Printed
6/18/2024 - Regular Meeting
AGENDA ITEM 19
Correspondence
California has the highest tax rates in America. Massive increases in taxes and fees over the past decade only add to the state’s already sky-high cost of living — punishing hard-working families who are now struggling with soaring inflation.

Even still, politicians, bureaucrats and special interests continue to make it harder for Californians to make ends meet. In 2022 alone, they considered nearly $200 billion in higher taxes and fees.

It’s long past time voters were given the right to vote on all new taxes and protect themselves from special interests who fear losing control and power over the taxes we pay.

TaxpayerProtection.com
Ad paid for by Californians for Taxpayer Protection and Government Accountability, sponsored by California homeowners, taxpayers, and businesses Ad Committee’s Top Funders
California Business Roundtable
California Business Properties Association
Gerald J. Marcil
Funding details at www.fppc.ca.gov

THE SOLUTION
The Taxpayer Protection and Government Accountability Act is a simple measure that gives voters the final say on new and higher taxes and closes court-created loopholes that have made it easier for special interests and politicians to raise taxes. 3 Gives voters the final say on all new and higher taxes n Requires all new taxes passed by the Legislature to be approved by voters. n Restores two-thirds voter approval for all new local special tax increases. 3 Eliminates all “hidden taxes”
n Clearly defines what is a tax or fee — addressing recent court decisions that overturned decades of established taxpayer protections.
n Prevents unelected boards and commissions from passing hidden taxes or fees without approval from elected officials or voters.
3 Requires truthful descriptions of new tax proposals
n Holds politicians accountable by requiring they clearly identify how revenue will be spent before any tax or fee is enacted and ensures it is not diverted to other purposes. n Ensures that the tax rate and length of time a new or higher tax will be in effect is listed on the ballot.

With families across California struggling and the cost of living continuing to skyrocket, we must act now.

The Taxpayer Protection and Government Accountability Act will guarantee voters, not politicians, have the final say on whether or not to raise taxes, while maintaining current revenue and spending.

Join our coalition to protect taxpayers and hold the government accountable!

How the Taxpayer Protection and Government Accountability Act (TPA) Impacts Approval of State and Local Taxes, Fees, and Bonds Current Law Approval Threshold
Required Under TPA
Accountability and
Transparency Changes
Under TPA
City or County General
Tax Increase
*General Tax revenues can
be used for any legitimate
government purpose
2/3 vote of elected body to
place before voters; and
Majority vote approval by
voters
No Change Increases transparency by
requiring disclosure of purpose
of tax, and rate and period of
the tax on the ballot
City or County, Special
District, School or
Community College District
Special Tax Increase
*Special Tax revenues are
restricted and can only be used
for certain purposes
Majority vote of elected
body to place before voters;
and
2/3 vote approval by voters
No Change Increases transparency by
requiring disclosure of purpose
of tax, and rate and period of
the tax on the ballot
Citizens’ Initiative Local
General Tax Increase
Majority vote approval by
voters
No Change Requires disclosure of purpose
of tax, and rate and period of
the tax on the ballot
Citizens’ Initiative Local
Special Tax Increase
*TPA closes the Upland
loophole and restores Prop. 218
voter-approved threshold of 2/3
Majority vote approval by
voters
2/3 vote approval by voters Requires disclosure of purpose of tax, and rate and period of
the tax on the ballot
Local Tax to Finance
Infrastructure Bonds
2/3 vote approval by voters No Change No Change
Local Tax to Finance School
Facilities Bond
2/3 vote of elected body
55 percent approval from
voters
No Change No Change
Local Fee Increase
*Under TPA, fees are redefined
as an “exempt charge.” All
government charges are
considered a tax unless
explicitly exempted from
that classification. Examples
of exempt charges include
reasonable costs for providing
services, reasonable regulatory
costs, or fines and penalties
Can be approved
administratively by
unelected staff without a
vote from elected officials
Majority vote of the local
elected body
To increase accountability,
TPA requires a new local fee
or increased charge to be
approved by the elected body
instead of allowing unelected
officials to raise them
unilaterally
Current Law Approval Threshold
Required Under TPA
Accountability and
Transparency Changes
Under TPA
State Fee Increase Can be approved
administratively by
unelected staff without a
vote from elected officials
Majority vote by the State
Legislature
To increase accountability,
TPA requires a new state
fee or increased charge to
be approved by the State
Legislature instead of allowing
unelected officials to raise
them unilaterally.

State Tax Increase 2/3 vote by the State
Legislature
2/3 Vote by the State
Legislature; and
Majority vote approval by
statewide voters
No Change
State General Obligation
Bond
*A bond issued by the state
that is repaid by the state
General Fund
2/3 vote by the State
Legislature
Majority vote approval by
statewide voters
No Change No Change
Managed Care Organization
(MCO) State Tax
*MCO Taxes are explicitly
exempt from the measure
2/3 vote by the State
Legislature
No Change No Change
Income-Based Utility Tax
*TPA excludes private utility
rates, including rates approved
by the PUC, however, an
income-based tax is a new
type of charge that we cannot
determine yet if it will be
affected by TPA
State Legislature can
authorize the Public Utilities
Commission (PUC) to
impose other charges on
energy consumers, such as
an income-based utility tax
The effects of the TPA on
an income-based utility tax
are impossible to determine
at this time
The effects of the TPA on
an income-based utility tax
are impossible to determine
at this time
Local Vehicle Miles
Traveled (VMT) Tax
* TPA removes the ability of
local government to impose
a VMT as a condition of local
development. Instead, any
VMT would be treated as a tax
under TPA and subject to the
requirements placed on general
or special taxes to implement
Approved by a local agency
if imposed as a condition of
property development
Majority or 2/3 vote of
elected body (depending on
whether it’s a General or
Special Tax) to place before
voters; and
Majority vote or 2/3
approval by voters
(depending on whether it’s
a General or Special Tax)
Requires disclosure of purpose
of tax, and rate and period of
the tax on the ballot
State VMT Tax Approved by a state
agency without a vote of
the Legislature if it is not a
“tax” under existing law
2/3 Vote by the State
Legislature; and
Approval by a majority of
state voters
No Change
Ad paid for by Californians for Taxpayer Protection and Government Accountability, sponsored by California homeowners, taxpayers, and businesses Ad Committee’s Top Funders
California Business Roundtable
California Business Properties Association
Gerald J. Marcil
Funding details at www.fppc.ca.gov
TRUTH VS LIES:

Dispelling the League of California Cities Misleading Claims about the Taxpayer Protection and Government Accountability Act (TPA)
THE LEAGUE SAID: THE TRUTH:
“ This misleading measure changes
our co
nstitution to make it more
difficult for local voters to pass
measures needed to fund local
services and local infrastructure.”
What TPA Says:
(c) No local law, whether proposed by the governing body or by an elector, may impose any special tax unless and until the tax is submitted to the electorate and approved by a two-thirds vote.

What it Means:

The League is attacking the same two-thirds voter approval requirement for elector/citizen initiative special local taxes they recently supported.

From 1996 to 2018, all special local taxes required a two-thirds majority of voters to pass. TPA restores this requirement for elector/citizen initiative tax measures ( not taxes proposed by the City Council) after the controversial California Cannabis Coalition v.

City of Upland court decision.

The League of Cities had so few concerns over this provision’s impact on local revenue that it even defended the two-thirds voter approval requirement in a court filing, writing:
“
As a resu
lt, the League finds itself ironically aligned in this case with the Howard Jarvis Taxpayers Association, proponents of Propositions 218 and 26, in arguing that a proper interpretation of the Constitution does not countenance different treatment for local tax measures, regardless of their origin, and certainly does not create an exemption for initiatives that swallows all the rules created by Proposition 218.”
Yet, now the League is falsely claiming that TPA restoring the two-thirds majority for citizen initiative special taxes will hurt local services and infrastructure.

THE LEAGUE SAID: THE TRUTH:
“ This far-reaching measure puts at risk
bill
ions of dollars currently dedicated
to critical state and local services. It
would also reduce funding for critical
infrastructure like streets and roads,
public transportation, drinking water,
new schools, sanitation, utilities and
more.”
What TPA Says:
(f) Any tax or exempt charge adopted after January 1, 2022, 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 charge is reenacted in compliance with the requirements of this section.

What it Means:

The Taxpayer Protection Act (TPA) does not reduce current spending levels or revenue collection for critical local services.

All existing taxes and fees enacted before 2022 will remain in effect.

There are 22 measures that passed after January 1, 2022 and failed to meet TPA’s transparency or vote threshold requirements and will have one year to be re-approved by voters. Otherwise, they will then be nullified and rolled back — allowing voters to preserve them if they believe they are critical for their community.
“
The [Tax
payer Protection Act] would
significantly restrict the ability of cities
to raise taxes.”
What TPA Says:
(c) No local law, whether proposed by the governing body or by an elector, may impose any special tax unless and until the tax is submitted to the electorate and approved by a two-thirds vote.

What it Means:

The Taxpayer Protection Act (TPA) does not change the threshold for tax measures put on the ballot by the City Council — therefore preserving cities’ ability to pass tax measures.

TPA does restore the long-standing two-thirds majority voter approval requirement for special taxes proposed by elector/citizen initiative — tax measures that a city has no control over and have no impact on a city’s ability to raise taxes. This requirement has been in the constitution for approving local bonds backed by property taxes since 1879 and for all other special taxes since the passage of Prop 13 in 1978.

THE LEAGUE SAID: THE TRUTH:
“ The [Taxpayer Protection Act]
would signi
ficantly restrict the
ability of cities to raise fees.”
What TPA Says:
(j)(1) A reasonable charge for a specific local government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the actual costs to the local government of providing the service or product to the payor.

What it Means:

The Taxpayer Protection Act stops cities from using fees as “hidden taxes” by charging taxpayers far more than the reasonable and actual cost of providing a service. Local governments who are not using fees to generate additional unrestricted revenue should not be concerned. TPA prohibits local governments from adding unreasonable hidden expenses to the reasonable, actual cost of providing a product or service for the purpose of raising additional revenue for unrestricted spending.
“
The initiat
ive would steal power
away from voters, prohibiting local
advisory measures where voters
provide direction to politicians
on how they want their local tax
dollars spent.”
What TPA Says:
(d)(3) If the proposed tax is a general tax, the phrase “for general government use” shall be required, and no advisory measure may appear on the same ballot that would indicate that the revenue from the general tax will, could or should be used for a specific purpose.

What it Means:

The Taxpayer Protection Act puts an end to the deceptive practice of asking voters to weigh in on non-binding advisory votes paired with new tax increases — which they often ignore.

Instead, TPA ensures that new tax revenue approved by voters can only be legally spent where the voters were told it would be spent.

Under TPA, local governments can’t mislead voters by implying they will spend the money on important issues and then divert the tax revenue to other uses after the fact. However, local governments are still able to propose-general purpose tax increases at a simple majority vote threshold, but they must be clearly disclosed on the ballot as general use when presented to voters.

Ad paid for by Californians for Taxpayer Protection and Government Accountability, sponsored by California homeowners, taxpayers, and businesses Ad Committee’s Top Funders
California Business Roundtable
California Business Properties Association
Gerald J. Marcil
Funding details at www.fppc.ca.gov
TPA Sample Resolution Language
WHEREAS, California has the highest income, state sales, and gasoline taxes in the country and inflation and global uncertainty are threatening to drive costs even higher; and WHEREAS, increases in taxes and fees are only fueling the state’s already sky-high cost of living — punishing hard-working families who are now struggling to put food on their table or gas in their cars; and
WHEREAS, already in 2024, politicians, bureaucrats, and special interests have proposed nearly $200 billion in higher state taxes, continuing to make it harder for Californians to make ends meet; and
WHEREAS, because Californians can’t afford to pay any more in higher taxes, it’s time voters were given the right to vote on all new taxes and protect themselves from an even higher cost of living; and
WHEREAS, the T axpayer Protection and Government Accountability Act is a simple measure qualified for the November 2024 statewide ballot that gives voters the right to vote on new and higher taxes and ensures that tax dollars are spent on the intended use; and WHEREAS, the measure maintains current revenue and spending and does not affect tax measures in effect prior to January 1, 2022; and
WHEREAS, the measure closes loopholes by clearly defining what is a tax or fee to address recent court decisions that overturned decades of established taxpayer protections and restore the will of the voters; and
WHEREAS, the measure restores the will of the voters when they passed Prop. 13 in 1978, Prop 218 in 1996, and Prop 26 in 2010 by reinstating two-thirds voter approval for all new local special tax increases; and
WHEREAS, the measure gives voters the final decision on all new and higher taxes by requiring all new taxes passed by the Legislature to be approved by voters and prevents bureaucrats from imposing new or higher fees without majority approval from elected officials; and
WHEREAS, the measure provides critical accountability protections for Californians by requiring all new local taxes to designate a use, rate, and duration to be listed on the ballot and by restricting fees for government services to their reasonable and actual costs; and TPA Sample Resolution Language
WHEREAS, the urgency to help families across California who are struggling to make ends meet under a skyrocketing cost of living means we must act now.

THEREFORE BE IT RESOLVED THAT ENTITY supports the T axpayer Protection and Government Accountability Act, Initiative 21-0042A1 — a proposed statewide ballot measure that gives hard-working Californians the right to vote on whether or not to raise taxes while maintaining current revenue and spending.

SUPPORT – Taxpayer Protection and Government Accountability Act Jon Coupal
Fri 6/14/2024 1:30 PM
To: Stone, Lori <[email protected]>;Warren, Cindy <[email protected]>; Levell, Jon <[email protected]>; Holliday, Ron <[email protected]>; DeForest, Lisa <[email protected]> Cc: City Clerk <[email protected]>
CAUTION: This email originated from outside of the organizaon. Do not click links or open aachments unless you recognize the sender and know the content is safe.

June 14, 2024
Dear Mayor Stone and Councilmembers,
On behalf of the Howard Jarvis Taxpayers Association, we are writing to urge the City of Murrieta to join us in adopting a support position for Initiative 21-0042A1, the Taxpayer Protection and Government Accountability Act (TPA), which will be on
the November 2024 ballot.

HJTA is a proud co-chair of Californians for Taxpayer Protection and Government Accountability, the campaign working to pass this critical initiative for California’s future. A coalition of more than 165 organizations support the Taxpayer Protection and Government Accountability Act (TPA), showing the broad, diverse support already in place.

TPA is a simple measure that increases accountability and transparency for taxpayers and local governments alike. The initiative:

Gives voters the final say on all new and higher taxes
Requires all new taxes passed by the Legislature to be approved by voters.

Restores two-thirds voter approval for all new local special tax increases.

Eliminates all “hidden taxes”
Clearly defines what is a tax or fee — addressing recent court decisions that overturned decades of established taxpayer protections.

Prevents unelected boards and commissions from passing hidden taxes or fees without approval from elected officials or voters.

Requires truthful descriptions of new tax proposals
Holds elected officials accountable by requiring they clearly identify how revenue will be spent before any tax or fee is enacted and ensures it is not diverted to other purposes.

Ensures that the tax rate and length of time a new or higher tax will be in effect is listed on the ballot.

For local governments, it is critical to understand that TPA does not influence the vote threshold for any tax measure a local governing body introduces.

TPA affects only those special tax proposals introduced by citizen initiatives—measures that local governments should not be involved with.

Critically, TPA clarifies ambiguity in current tax law by reinstating the principles of Prop. 13 and Prop. 218, ensuring all special taxes achieve 2/3 support—a standard that local governments followed without issue for over two decades.

TPA’s passage is essential as special interests are already preparing for future attempts to dismantle Prop. 13. Evolve California, an organization dedicated to overturning Proposition 13, recently stated in a webinar, “Our goal now is to have an initiative on the ballot November 2026.” In light of this, the passage of TPA is paramount to ensure that Californians are protected.

We respectfully urge the City of Murrieta to support the Taxpayer Protection and Government Accountability Act. Doing so will demonstrate a commitment to safeguarding the interests of voters, taxpayers, and residents and preserving their economic vitality.

If you have any questions, please do not hesitate to contact me directly.

Sincerely,
Jon Coupal
President, Howard Jarvis Taxpayers Association
Sacramento
Los Angeles

Taxpayer Protection and Government Accountability Act
Matthew Dobler
Mon 6/17/2024 2:55 PM
To: Stone, Lori <[email protected]>
Cc: McDonald, Cristal <[email protected]>
CAUTION: This email originated from outside of the organizaon. Do not click links or open aachments unless you recognize the sender and know the content is safe.

Madam Mayor Stone,
Please find my letter attached regarding the Taxpayer Protection and Government Accountability Act.

In my capacity as Chairman of the Republican Party of Riverside County, I encourage you to support TPA.