Proposed State Ballot Measure -
Taxpayer Protection and Government
Accountability Act (AG# 21-0042A1)
February 22, 2022
Recommendation
Adopt a resolution opposing the Taxpayer Protection
and Government Accountability Act (AG# 21-0042A1)
Background
On Jan. 4, 2022, the California Business Roundtable filed the Taxpayer Protection and Government Accountability Act or AG# 21-0042A1.
The 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, along with many local governments, and a broad coalition including the California Professional Firefighters, SEIU California, California Alliance for Jobs, AFSCME California, and the California Special Districts Association are in strong opposition to the proposed California Business Roundtable ballot measure Proposed Changes
• Amends the State Constitution to change the rules for how the state and local governments can impose taxes, fees, and other charges.
– Expands definition of tax
– Requires voter approval for State taxes (2/3 of house + majority of statewide electorate)
– Requirements for citizen initiative increased from majority to 2/3 – Allowable uses and duration of state and local revenues must be specified (type, rate, duration)
– Requires the Legislature and Local Government Bodies to Impose State and Local Fees
– Some New State and Local fees could not exceed actual costs Impacts
• Lower State Tax and Fee Revenue
• Lower Local Government Tax and Fee Revenue
• Increase State and Local Administrative Costs to Change Fee Levels
• Restricts Local Authority
– Charter amendments to impose, extend, or increase tax, fee, or charge is prohibited
• Potentially Lower Service Levels
– Limited to minimum necessary costs
• Potentially Increases Litigation and Challenges in regards to Fee vs. Tax, Minimum Necessary Costs, etc.
In Summary
• Limit voter authority and accountability
• Restrict local fee authority to provide local services • Restrict authority of state and local governments to issue fines and penalties for violations of law
• Restrict local tax authority to provide local services Questions & Comments
Felicia Escover
[email protected]