Attorney General No.


Secretary of State No.



TAX AND SPENDING LIMITS. INITIATIVE CONSTITUTIONAL AMENDMENT. Increases homeowners' property tax exemption to 40% of full value, $150,000 maximum; 55% of assessed value and $200,000 maximum for seniors. Maximum annual increase: 5%. Increases ad valorem real property tax limitation to 1.30% of full cash value. Assessed value redefined, determined by formula utilizing current housing costs; increases limited to 40% for five years following enactment. Authorizes local government special taxes (except real property sales and transaction taxes) approved by 55% vote. Adjusts government appropriations limit by higher of changes in median new home cost and population or cost of living and population. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Fiscal impact uncertain because effect depends on California real property's actual market value and rates of appreciation that cannot be forecast. If Legislature fully implements measure's increase in maximum property tax rate limitation of 1.30 percent, measure could increase local property tax revenues by several billion dollars statewide. Effect within single county could vary significantly from statewide effect. Impact on state General Fund could range from loss of $1 billion to increase of several hundred million dollars. Measure may substantially increase spending authorized under state and local appropriations limits.


Mark F. Buckley, 6320 Butterfield Road, Placerville, Ca 95667 (916) 622-3471



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