Attorney General No.
Secretary of State No.
TAXATION. INITIATIVE CONSTITUTIONAL AMENDMENT. Amends Article XIIIA, enacted as Proposition 13 in 1978, adding restrictions on real property taxation, enactment of new tax measures, and charging fees. Prohibits imposition of new taxes based upon real property ownership, sale, or lease. Prohibits increasing other taxes except upon two-thirds vote of Legislature for state taxes and two-thirds vote of electorate for local governments. Restricts imposition of fees exceeding direct costs of services provided. Provides specified refunds including taxes attributable to assessed value inflation adjustments in assessment years 1976-1977 through 1978-1979. Makes other changes. Operative date for specified provisions is August 15, 1983. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: There will be both one time and ongoing fiscal effects. One time fiscal effects: (1) A potential cost of approximately $1.29 billion to pay property tax refunds. These would be paid by the state ($508 million), local property taxpayers through higher levies for debt service (up to $158 million), and local governments ($624 million). (2) The state will gain about $75 million over a two year period in increased state income tax revenues because the property tax refunds and interest will be taxable income. Ongoing fiscal effects: (1) Annual revenue losses of at least $41 million to local governments and $25 million to school districts resulting from the provisions regarding inflationary adjustments to assessed valuations. The revenue losses to schools would be offset by comparable increased state funding. (2) Unknown but probably major ongoing gains in state income tax revenues. (3) Unknown annual multimillion dollar costs and revenue losses to state and local governments due to tax rate limitations; assessments practices changes; voting requirements for tax legislation; and the definitions of taxes, fees, and assessments contained in the measure.
Howard Jarvis, 6363 Wilshire Boulevard, Los Angeles, Ca 90048 (213) 658-5151
Taxation. California Initiative 328 (1983).