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HomeMy WebLinkAboutMINUTES - 08281990 - 2.1 2®001 To: BOARD OF SUPERVISORS Contra , • f FROM: Phil Batchelor, County Administrator Costa oj..� s August 21, 1990 `x, County C. V DATE: - rrq.c'uA`� SUBJECT: OPPOSITION TO PROPOSITION 136 ON THE NOVEMBER 6, 1990 BALLOT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION• Adopt a position in OPPOSITION to Proposition 136 which has qualified for the November 6, 1990 ballot. BACKGROUND: An Initiative Constitutional Amendment has now qualified for the November 6, 1990 ballot as Proposition 136 . The passage of Proposition 136 could eliminate most of the revenue sources made available to the County by the Legislature in the compromise over the state budget (such as utility tax and business license tax) , unless such proposals are placed on the ballot and approved by the voters. Passage of Proposition 136 would apparently eliminate both the Alcohol Tax Initiative and ACA 38 since it purports to apply to any other tax measure which is on the same ballot and requires that all future taxes on tangible personal property must be ad valorem taxes and must comply with the provisions of Article XIII, Section 2 of the Constitution. Passage of Proposition 136 would also probably eliminate any option for the Board to impose the costs of the retirement system as an override to the property tax, without a vote of the people. Proposition 13, approved by the voters on June 6, 1978, among other provisions added Section 3 and Section 4 to Article XIIIA of the California Constitution. Section 3 requires that all changes to State taxes designed to increase revenue must be CONTINUED ON ATTACHMENYeS YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR —RECOMMENDATION OF BOARD COMMITTEE APPROVE _OTHHER SIGNATURE(S): A ( Y / / az L� � ACTION OF BOARD ON August 28, 19 9 APPROVED AS RECOMMENDED X OTHER — VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT III, IV ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: Please see Page 3 . ATTESTED e44_� o?r, /9ipa PHIL BAT49ELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY M382 (10/88) approved by a 2/3 vote ,of each House of the Legislature, except that no new ad valorem taxes on real property, or sales or transaction taxes on the sales of real property may be imposed. Section 4 provides that cities, counties and special districts may impose special taxes with a 2/3 vote of the people, except that no ad valorem tax on real property or transaction tax or sales tax on the sale of real property may be imposed. Various court decisions since 1978 have interpreted Section 4 of Article XIIIA, in particular, in such a way as to allow certain taxes to be imposed with a majority vote of the people and other tax increases to not require a vote of the people at all. (See City and County of San Francisco v. Farrell; Carman v. Alvord; Fenton v. City of Delano and others) . It appears that Proposition 136 would do all of the following: 1. Repeal Section 3 of Article XIIIA of the Constitution. 2. Repeal Section 4 of Article XIIIA of the Constitution. 3 . Enact a new Section 3 of Article XIIIA of the Constitution. 4. Enact a new Section 4 of Article XIIIA of the Constitution. 5. Enact a new Section 7 of Article XIIIA of the Constitution. The new Section 3 would appear to do all of the following: 6. Specifies that a 2/3 vote of both Houses of the Legislature is required to increase any general tax or special tax, whether this is accomplished by increasing the tax rate, changing the method of computing the tax, by an increase in an existing tax or by implementing a new tax. 7. As an alternative to # .6, provides that any increase in State taxes, whether by increasing the tax rate, changing the method of computing the tax, increasing an existing tax or implementing a new tax may be accomplished by an initiative. In the case of a general tax, a majority vote would be required. In the case of a special tax, a 2/3 vote would be required. 8. Provides that except as already provided in Sections 1 and 2 of Article XIIIA of the Constitution, no new ad valorem taxes on real property or sales or transaction taxes on the sale of real property may be imposed. 9. Requires that any special tax on tangible personal property which is enacted on or after November 6, 1990 must be an ad valorem tax and must comply with the provisions of Section 2 of Article XIII of the Constitution. 10. . Defines "general taxes" and "special taxes" for purposes of this section. The new Section 4 would appear to do all of the following: 11. Prohibits any local government from imposing any new general tax or increasing any existing general tax unless the tax proposal is placed on the ballot and is approved by a majority vote. 12. Prohibits any local government from imposing any new special tax or increasing any existing special tax unless the tax proposal is placed on the ballot and is approved by a 2/3 majority vote. 13 . Prohibits the imposition of any new ad valorem tax on real property or a transaction tax or sales tax on the sale or transfer of real property except as is provided for in Sections 1 and 2 of Article XIIIA of the Constitution. 14. Specifies the procedures for placing a proposal for a general or special tax on the ballot for voter approval, including a requirement that any special tax proposal include a description of the purpose for which the tax is being imposed. 15. Defines "local government" for purposes of this section. 16. Defines "general tax", "special tax" and "voter" for purposes of this section. Requires that all taxes be deemed either general or special and specifies that a sales and use tax imposed for transportation purposes is a general tax for purposes of this section. The new Section 7 would appear to do the following: 17. Provides for a temporary exception to the 2/3 vote requirements in specific cases to allow for the raising of revenue due to a natural disaster or emergency declared by the Governor. To suspend these requirements a 2/3 vote by the Legislature and approval of the Governor is required. Such a suspension is limited to two years. 18. The Proposition indicates that it is to take effect on November 6, 1990. 19. The Proposition includes a "conflicting laws" provision similar to that contained in Proposition 126 (ACA 38) so that if Proposition 136 and any other measure on the ballot which enacts a tax pass, the measure which receives the most votes would prevail in its entirety over the other measure(s) . However, this section also specifies that it would prevail in its entirety over any statutory initiative which imposes a tax, regardless of the margin of approval of the two measures. Therefore, if Proposition 136 passes, it would appear to prevail over Proposition 134 (the Alcohol Tax Initiative) regardless of how many "aye" votes Proposition 134 receives. In view of the fact that the Legislature has provided the Board of Supervisors with the authority to impose a utility users tax and a business license tax effective January 1, 1991 and that passage of Proposition would eliminate this potential revenue source without a vote of the people it is recommended that the Board of Supervisors oppose Proposition 136 . In addition, since Proposition 136 is a clear attempt to eliminate Proposition 134, regardless of how many votes it receives, it is recommended that the Board of Supervisors oppose Proposition 136. cc: County Administrator County Counsel Auditor-Controller Health Services Director Alcohol Program Administrator Drug Program Administrator Les Spahnn, SRJ. Jackson, Barish & Associates Larry Naake, Executive Director, CSAC 1UG ' 61 ' 90 11 : 54 ,JACKSON-BARISH ASSOC P02 DOCUMENT 000000055 ` t' SPONSOR Joel Fox N,,v 17251 Westbury Drive Granada Hills, CA 91344 Richard Gann 151 Lost Creek Drive Folsom, CA 95630 TITLE State, Local Taxation. Initiative constitutional Amendment. SUMD 900208 STATUS Qualified - November 1990 Ballot - Proposition 136 (06/21/90) SUN Date: February 8, 1990 File No. : SA 89 RF 0049 The Attorny General has prepared the following official title and summary for the proposed measure: STATE, LOCAL TAXATION. INITIATIVE CONSTITUTIONAL AMENDMENT. . Increases voting requirements for general and special taxes. Extends requirement for legislative or voter approval of state general or special taxes to any increase in such taxes, and raises voter requirement for state special taxes from majority to two-thirds. Limits tax rate on new state personal property taxes. Extends to charter cities power of voters to increase local general taxes by majority vote. Restricts use of locally-imposed special taxes. Provides temporary exception for state, local taxes for disaster relief, other emergencies. Generally prohibits new state, local ad valorem, sales, transaction taxes on real property. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments; Measure restricts rate of certain special taxes to 1 percent of value of property subject to tax; could limit future ability of state to raise revenues through such taxes. Could limit passage of special state tax measures proposed by initiative by requiring two-thirds voter approval of such measures. Measure prohibits imposition of new or higher general taxes by charter cities without voter approval, thus reducing charter city revenues if voters do not approve future tax proposals. Unknown fiscal effect on local governments other than charter cities. UG 0.1 190 11: 55 JACKSON—BARISH ASSOC P03 2 TEXT TAXPAYERS RIGHT-TO-VOTE ACT OF 1990 To the Honorable Secretary of state of California Ne, the undersigned, registered, qualified voters of California, residents or County (or City and County) , hereby propose amendments to the Constitution of California relating to limitations to be imposed upon income, property, general, and special taxes, and petition the Secretary of State to submit the same to the voters of California for their adoption or rejection at the next succeeding general election or at any special statewide election held prior to that general election or otherwise provided by law. The proposed constitutional amendments read as follows: THE TAXPAYERS RIGHT-TO-VOTE ACT OF 1990 SECTION 1. Title. This Act shall be known and may be cited as The Taxpayers Right-to-Vote Act of 1990. SECTION 2. Findings and Declarations. The People of the State of California hereby find and declare as follows: (a) Taxes should not be imposed on the People of California without their consent. (b) In order to protect all taxpayers from sudden and unreasonable increases in general taxes which would threaten their economic security, limitations should be placed on general tax increases and the imposition of new general taxes. (c) In order to protect targeted segments of taxpayers from special taxes imposed upon them alone, limitations should be placed on special tax increases and the imposition of new special taxes by special interests. (d) No increase in special taxes imposed by counties, special districts, charter cities, or general law cities, and no new special tax imposed by these entities, should take effect without a two-thirds vote of the People. (e) No increase in special taxes imposed by the state of California, and no new special tax imposed by the state of California, should take effect without a two-thirds vote of the People or a two-thirds vote of both houses of the Legislature. (f) No increase in general taxes imposed by the State of California, and no new general tax imposed by the state of California, should take effect without a majority vote of the People or a two-thirds vote of both houses of the Legislature. UG 01 790 11: 55 JACKSON-SARISH ASSOC PO4 3 (g) No increase in general taxes imposed by counties, special districts, charter cities, and general law cities, and no new general tax imposed by these entities, should take effect without a majority vote of the People. (h) No excessive and unfair special taxes with respect to tangible personal property should be imposed. (i) In keeping with the spirit of Proposition 13, except as provided in Article XIII A, Secs. 1 and 2 of the California Constitution, no new ad valorem taxes on real property or sales o: transaction taxes on the sale of real property may be imposed. SECTION 3. Purpose and intent. The People of the State of California declare that their purpose and intent in enacting this measure is as follows: (a) To prevent the imposition of any new State general tax or an increase in any existing state general tax without a majority vote of the People or a two-thirds vote of both houses of the Legislature. (b) To prevent the imposition of any new State special tax or an increase in any existing State special tax without a two-thirds vote of the People or a two-thirds vote of both houses of the Legislature. (c) To prevent the imposition of any new local general tax or an increase in any existing local general tax without a majority vote of the People. (d) To prevent the imposition of any new local special tax or an increase in any existing local special tax without a two-thirds vote of the People. (e) To protect against the imposition of excessive and unfair special taxes with respect to tangible personal property. (f) To prohibit the imposition of any new ad valorem taxes on real property or any transaction tax or sales tax on the sale or transfer of real property except as provided in Article XIII A, Secs. 1 and 2 of the California constitution. SECTION 4 . Section 3 of Article XIII A of the California Constitution is repealed. SECTION 5. State Government General and Special Tax Limitation. Section 3 is hereby added to Article x111 A of the California Constitution to read as follows: JG 01 790 11156 JACKSON—BARISH ASSOC P05 4 Section 3. (a) From and after the effective date of this section, any increases in State general or special taxes whether by increased rates, changes in methods of computation, any other increase in an existing tax, or any new tax must be imposed by an Act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature, or as provided in subsection (b) . (b) From and after the effective date of this section, any increases in State taxes whether by increased rates, changes in methods of computation, any other increase in an existing tax, or any new tax also may be enacted by an initiative passed, in the case of a general tax, by not less than a majority vote of the voters voting in an election on the issue or, in the case of a special tax, and notwithstanding Article II, Sec. 10(a) of the California Constitution, by not less than a two-thirds vote of the voters voting in an election on the issue, or as provided in subsection (a) . (c) Except as provided in Article XIII A. secs. 1 and 2 of the California Constitution, no new ad valorem taxes on real property or sales or transaction taxes on the sale of real property may be imposed. (d) Any special tax with respect to tangible personal property enacted on or after November 6, 1990, must be an ad valorem tax and must comply with the provisions of Article XIII, Sec. Z of the California Constitution. (e) As used in this section, "general taxes" are taxes, including, but not limited to, income taxes, excise taxes, and surtaxes, levied for the general fund to be utilized for general governmental purposes; "special taxes" are taxes, including, but not limited to, income taxes, excise taxes, surtaxes, and tax increases, levied for a specific purpose or purposes or deposited into a fund or funds other than the general fund. Taxes on motor vehicle fuel shall be considered general taxes for purposes of this section. SECTION 6. section 4 of Article XIII A of the California Constitution is repealed. SECTION 7. Local Government and District General and Special Tax Limitation. Section 4 is hereby added to Article XIII A of the California Constitution to read as follows: Section 4. (a) Notwithstanding Article II, Sec. 9(a) of the California Constitution, no local government or district, whether or not authorized to levy a property tax, may impose any new general tax or increase any existing general tax on such locality or district unless and until such proposed general tax or increase is submitted to the electorate of the local government or of the district and enacted by a majority vote of the voters voting in an election on the issue. OG ,01 2- 90 12: O ,JACKSON-BARISH ASSOC Pei 5 (b) Notwithstanding Article II, Sec. 9(a) of the California constitution, no local government or district may impose any new special tax or, increase any existing special tax on such locality or district unless and until such proposed special tax or increase is submitted to the electorate of the local government or of the district and enacted by a two-thirds vote of the voters voting in an election on the issue. The revenues from any special tax shall be used only for the purpose or service for which it was imposed, and for no other purpose whatsoever. (c) Except as provided in Article XIII A. Secs. 1 and 2 of the California Constitution, no local government or district may impose any new ad valorem taxes on real property or a transaction tax or sales tax on the sale or transfer of real property within that local government or district. (d) A tax subject to the vote requirements of subdivisions (a) or (b) of this section shall be proposed by an ordinance or resolution of the legislative body of the local government or of the district. The ordinance or resolution shall include the type of tax and maximum rate, if any, of tax to be levied, the method of collection, the date upon which an election shall be held on the issue, and, if a special tax, the purpose or service for which its imposition is sought. (e) As used in this section, "local government" means any city, county, city and county, including a chartered city or county or city and county, or any public or municipal corporation; "district" means an agency of the state, formed pursuant to general law or special act, for the local performance of governmental or proprietary functions within limited boundaries. (f) As used in this section, "general taxes" are taxes levied for the general fund to be utilized for general governmental purposes; "special taxes" are taxes levied for a specific purpose or purposes or deposited into a fund or funds other than the general fund. As used in this section, "voter" is a person who is eligible to vote under the provisions governing the applicable election. All taxes imposed by any entity of local government shall be deemed to be either general taxes or special taxes. Sales add use taxes voted on at a local level for transportation purposes shall be considered general taxes for purposes of this section. SECTION 8. Disaster and Emergency Relief. Section 7 is hereby added to Article XIII A of the California Constitution to read as follows: IJS '01 " 90 11: 59' ;JACKSON-BAR I SH ASSOC P01 6 Section 7. The provisions of sections 3(a) and (d) of this article which impose limits on new or existing state taxes may be suspended by a two-thirds vote of the Legislature and the approval of the Governor in order to permit funds to be raised for up to two years for disaster relief required by earthquake, fire, flood, or similar natural disaster or for emergencies declared by the Governor. The provisions of sections 4 (a) and (b) of this article which impose limits on new or existing local taxes may be suspended by a two-thirds vote of the legislative body of the local government or district, as defined in section 4 (e) above, in order to permit funds to be raised for up to two years for disaster relief required by earthquake, fire, flood, or similar natural disaster or for emergencies declared by the Governor. SECTION 9. Liberal Construction. The provisions of this Act shall be liberally construed to effect its purposes. SECTION 10. Effective Date. This Act shall take effect on November 6, 1990. SECTION 11. Conflicting Law. Pursuant to Article Sec. 10(b) of the California Constitution, if this measure and another measure appear, on the same ballot and conflict, and this measure receives more affirmative votes than such other measure, this measure shall become effective and control in its entirety and said other measure shall be null and void and without effect. if the constitutional amendments contained in this measure conflict with statutory provisions of another measure on the same ballot, the constitutional provisions of this measure shall become effective and control in their entirety and said other measure shall be null and void and without effect irrespective of the margins of approval. This initiative is inconsistent with any other initiative on the same ballot that enacts any tax, that employs a method of computation, or that contains a rate not authorized by this measure, and any such other measure shall be null and void and without effect. SECTION 12. Severability. if any provision of this Act, or part thereof, is for any reason held to be invalid or unconstitutional, the remaining sections shall not be affected, but shall remain in full force and effect, and to this end the provisions of this Act are severable.