Secretary of State No.
TAXATION. INITIATIVE CONSTITUTIONAL AMENDMENT. Limits ad valorem taxes to 2% of value except to pay certain indebtedness. Increases homeowner's property tax exemption. Revises assessment rules, procedures. Repeals requirement of county tax levy to support school districts. Restricts power of local agencies to incur bonded indebtedness. Prohibits unfunded state or federal mandated programs. Requires two-thirds voter approval before Legislature may impose statewide school property tax or authorize subordinate agencies to impose ad valorem tax. Provides for 1% tax on financial instruments deposited or Failed to Qualify from checking accounts of specified institutions and requires use of proceeds to reduce property and other taxes. Financial Impact: If the volume of financial transactions after passage of the initiative remains at current levels, proposed tax on deposits and withdrawals of financial instruments could generate revenues significantly in excess of the combined state and local revenues from taxes, permits, licenses, surcharges and fees. However, increased
Hal M. Rogers, 85 East San Fernando Street, San Jose, California 95113 (408) 292-6621
Failed to Qualify
Taxation California Initiative 164 (1977).