PROPERTY TAXATION. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Currently Constitution limits ad valorem property taxes to maximum of 1% of the property's full cash value. An exception to the 1% limit is provided for ad valorem taxes or special assessments to pay interest and redemption charges on indebtedness approved by the voters before July 1, 1978. This measure would provide a further exception to the 1% limit; it would be inapplicable to bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: By itself, measure has no fiscal effect. No increase can occur in property tax rate unless two-thirds of those voting in local election approve issuance of general obligation bonds. State costs for tax relief programs could increase, because cost of these programs rises as local property tax rate increases. State income tax revenues could decline as taxpayers deduct greater amounts for property tax payments on state income tax returns.
Legislative Vote Results
Assembly - Ayes, 72; Noes, 2 -- Senate - Ayes, 30; Noes, 2
Popular Vote Results
Y: 2516490; A: 59.9; N: 1685186; B: 40.1
Assembly Constitutional Amendment
Code Sections Affected
Amended Cal. Const. art. XIIIA, section 1
Dominic Cortese, Member of the Assembly, 24th District Chair, Assembly Local Government Committee; Richard P. Simpson, Executive Vice President California Taxpayers' Association; Kirk West, President California Chamber of Commerce
Property Taxation. California Proposition 46 (1986).