City of San Mateo | 330 W. 20th Avenue, San Mateo, CA 94403 | www.cityofsanmateo.org Letterhead
Date
The Honorable Gavin Newsom
Governor of California
State Capitol, Suite 1173
Sacramento, CA 95814
Re: Resolution of the City of San Mateo in Opposition to Proposed Statewide Initiative No. 1983 (25- 0006A1) – Local Taxpayer Protection Act to Save Proposition 13 Dear Governor Newsom:
On June 1, 2026, the San Mateo City Council adopted a formal resolution in opposition to proposed statewide Initiative No. 1983 (Attorney General File No. 25-0006A1), the “Local Taxpayer Protection Act to Save Proposition 13” (Version 3, Amendment No. 1), submitted by the Howard Jarvis Taxpayers Association (HJTA) and qualified for the November 2026 statewide ballot on April 21, 2026. We write to communicate our opposition and to respectfully urge your administration to oppose this measure.
Background
The initiative would add Section 4.5 to Article XIII A of the California Constitution, imposing sweeping and permanent restrictions on the authority of local governments, including charter cities such as San Mateo, to levy taxes. Its key provisions would: (1) require a two-thirds supermajority vote for all local special taxes, through all pathways including the citizen initiative process; (2) permanently cap real property transfer taxes at the rate specified in subdivisions (a) and (b) of Section 11911 of the Revenue and Taxation Code as it existed on January 1, 2025, and further prohibit any non-ad valorem general tax upon any parcel or upon any person as an incident of real property ownership; and (3) retroactively invalidate all noncompliant taxes, including those previously approved by local voters, by December 31 of the second year following enactment. The measure expressly applies to charter cities and directs that its provisions be “liberally construed” to effectuate its purposes.
Fiscal Harm to the City of San Mateo
The City of San Mateo relies on its Real Property Transfer Tax (RPTT) to generate an estimated $10–15 million annually, revenue that directly funds our Capital Improvement Program (CIP). The CIP finances critical public infrastructure: street and sidewalk repair, park improvements, stormwater system upgrades, facility maintenance and renovation, and public safety facility improvements. Under the initiative, San Mateo’s enhanced charter city RPTT rate would be permanently eliminated, with the City capped at the Section 11911 rate of approximately $0.55 per $500 of value, which is a fraction of the current rate, resulting in an estimated annual revenue loss of $10–15 million from the RPTT alone.
The initiative’s reach extends further still. Its prohibition on “any non-ad valorem general tax upon any parcel of real property or upon any person as an incident of real property ownership” is broadly written and may jeopardize parcel taxes and other City levies tied to real property, beyond the RPTT. The measure’s directive for liberal interpretation suggests an expansive application that would restrict local City of San Mateo | 330 W. 20th Avenue, San Mateo, CA 94403 | www.cityofsanmateo.org fiscal authority beyond what is apparent on the face of the text, and is expected to generate years of litigation and budgetary uncertainty for local governments statewide.
Retroactive Invalidation of Voter-Approved Measures
San Mateo voters approved Measure CC with 71.8% of the vote, reflecting an overwhelming community mandate for locally determined tax policy. The initiative’s retroactivity provisions would nullify Measure CC by December 31 of the second year following passage, irrespective of the democratic process that produced it. This retroactive elimination of a voter-approved measure is fundamentally contrary to principles of local self-governance and disregards the will of San Mateo’s residents.
Statewide Impact
Fiscal analyses, including estimates by the Legislative Analyst’s Office and independent fiscal analysts reviewing prior versions of this initiative, have projected that measures of this type could eliminate $300 million or more in local tax revenue annually statewide. Cities and counties across California depend on these revenues to fund fire and police services, parks, libraries, housing programs, and public works. The initiative provides no replacement funding mechanism. The net result would be significant, irreversible harm to public services and infrastructure across the state at a time when California’s communities can least afford it.
We also note that the initiative’s stated goal of stimulating housing production by eliminating transfer taxes is contradicted by the reduction in local revenue available to fund housing-enabling infrastructure like roads, water systems, parks, and public facilities that new development requires. The measure would undermine, rather than advance, the state’s housing and infrastructure objectives.
Request for Action
The City of San Mateo respectfully urges your administration to:
1. Formally oppose Initiative No. 1983 (25-0006A1) and communicate that opposition to the California electorate;
2. Support legislative efforts to address the underlying policy concerns raised by the initiative’s proponents through negotiated alternatives that protect local fiscal authority; and
3. Work with the League of California Cities, the California State Association of Counties, and other local government stakeholders to build a coordinated statewide opposition effort.
San Mateo is a proud charter city with a long history of responsible, community-driven governance. We are committed to working constructively with the state to address shared challenges. We ask only that our residents’ democratic decisions be respected and that our ability to fund the services our community depends upon be preserved. We welcome the opportunity to discuss this matter further and are available at your convenience.
Respectfully submitted,
City of San Mateo | 330 W. 20th Avenue, San Mateo, CA 94403 | www.cityofsanmateo.org Adam Loraine
Mayor, City of San Mateo
On Behalf of the San Mateo City Council
Alex Khojikian
City Manager, City of San Mateo
cc: Members of the San Mateo City Council
Senator Josh Becker, District 13
Assemblymember Diane Papan, District 21
League of California Cities