HomeMy WebLinkAboutMINUTES - 06262012 - C.48RECOMMENDATION(S):
SUPPORT if amended ACA 18 (Swanson): Taxation: Parcel Tax, a resolution that proposes a constitutional
amendment that would allow a city, county, or special district to impose, extend, or increase a parcel tax for the
purpose of funding the maintenance or improvement of fire protection or police protection services with approval by
a majority of voters in that city, county, or special district, as recommended by the Legislation Committee.
The amendment recommended by the Legislation Committee would change the voter approval threshold from a
majority (50% plus one) to a 55% threshold.
FISCAL IMPACT:
This measure, if passed, would allow a city, county, or special district to impose, extend, or increase a parcel tax for
the purpose of funding the maintenance or improvement of fire protection or police protection services with approval
by a majority of voters in that city, county, or special district.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/26/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: L. DeLaney,
925-335-1097
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board
of Supervisors on the date shown.
ATTESTED: June 26, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
C. 48
To:Board of Supervisors
From:Legislation Committee
Date:June 26, 2012
Contra
Costa
County
Subject:Support if Amended for ACA 18 (Swanson): Taxation: Parcel Tax
BACKGROUND:
DIGEST: The California Constitution conditions the imposition of a special tax by a city, county, or special
district upon the approval of 2/3 of the voters of the city, county, or special district voting on that tax, and
prohibits these entities from imposing an ad valorem tax on real property or a transactions or sales tax on the
sale of real property.
ACA 18 would alternatively condition the imposition, extension, or increase of a parcel tax by a city, county , or
special district for the purpose of funding the maintenance or improvement of fire protection services or police
protection services, or both, upon the approval of a majority of its voters voting on the proposition, and would
also make conforming changes to related provisions.
The author notes that "since 2008, state and local governments have faced multi-billion dollar budget shortfalls.
Local governments across the state have implemented cuts in core-public services including public safety to
accommodate the falling revenues. As a result, firefighters and police officers faced a record number of layoffs.
Fire departments are also increasingly relying on hiring freezes, reductions in salaries and benefits, and
'brown-outs,' a technique to eliminate permanent personnel and replace them with relief or overtime personnel.
The risks posed by these cuts are passed on to the citizens, who have seen an increase in response time, fewer
investigation and patrol units, and station closures. ACA 18 allows local communities to impose a parcel tax by a
majority approval of the voters for the purpose of funding, maintaining or improving fire and police services."
Lowering the constitutional vote threshold for special taxes and bond indebtedness has been tried several times in
past years. ACA 7 (Nation) from the 2005-06 legislative session would have lowered the constitutional vote
requirement from two-thirds to 55% for any special tax. ACA 10 (Feuer) of 2008 would have created an
additional exception to the 1% ad valorem property tax for transportation projects with 55% voter approval. There
were several measures introduced in the 2009-10 session that would have revised constitutional voting thresholds
for different purposes, including ACA 10 (Torlakson), ACA 15 (Arambula), SCA 12 (Kehoe), ACA 9 (Huffman)
and SCA 6 (Simitian), none of which were enacted.
Support arguments: The Peace Officers Research Association of California writes that "in these times of budget
deficits, layoffs, and cutbacks, we need all options on the table for raising the funds necessary to keep our
communities safe."
Opposition arguments: CalTax writes that "a two-thirds vote requirement on taxes ensures that no group or
individual dominates quieter voices in a democracy. ACA 18 makes it easier for individuals or groups to exert
their political will over the well-being of all individuals in a given jurisdiction."
This measure, a constitutional amendment, will require a two-thirds vote of each house. Since ACA 18 requires a
two-thirds vote of the Legislature to pass, it very unlikely this bill would get off the Assembly Floor as no
Republicans are voting for any tax increases. The measure could pass out of Assembly Revenue & Taxation
Committee if all Democrats vote for it as they did in Assembly Local Government (Republicans voting no).
Constitutional amendments are exempt from the legislative deadlines. However, if they are to go on the November
ballot, they must be passed in time for the Secretary of State to print ballots (technically late June, but the
Legislature can extend the ballot printing deadline). Assembly Revenue and Taxation has scheduled ACA 18 for a
June 18 hearing.
DISPOSITION: Pending
LOCATION: Assembly Revenue and Taxation Committee
The Legislation Committee of the Board of Supervisors considered this bill at its June 7, 2012 meeting and
recommends that the Board consider a position of "Support if amended," where the amendment would revise the
voter approval threshold from a majority of 50% plus one to 55%.
CONSEQUENCE OF NEGATIVE ACTION:
If the Board of Supervisors does not take action on this bill, it will not have an official position from which to
If the Board of Supervisors does not take action on this bill, it will not have an official position from which to
advocate.
CHILDREN'S IMPACT STATEMENT:
ATTACHMENTS
Bill Text for ACA 18
AMENDED IN ASSEMBLY APRIL 30, 2012
california legislature—2011–12 regular session
Assembly Constitutional Amendment No. 18
1 Introduced by Assembly Member Swanson
February 18, 2011
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Assembly Constitutional Amendment No. 18—A resolution to
propose to the people of the State of California an amendment to the
Constitution of the State, by amending Section 4 of, and by adding
Section 4.5 to, Article XIII A thereof, by amending Section 2 of Article
XIII C thereof, and by amending Section 3 of Article XIII D thereof,
relating to taxation.
legislative counsel’s digest
ACA 18, as amended, Swanson.Taxation: parcel tax.
The California Constitution conditions the imposition of a special tax
by a city, county, or special district upon the approval of 2⁄3 of the voters
of the city, county, or special district voting on that tax, and prohibits
these entities from imposing an ad valorem tax on real property or a
transactions or sales tax on the sale of real property.
This measure would alternatively condition the imposition, extension,
or increase of a parcel tax by a city or, county, or special district for
the purpose of funding the maintenance or improvement of fire
protection services or police protection services, or both, upon the
approval of a majority of its voters voting on the proposition, and would
also make conforming changes to related provisions.
Vote: 2⁄3. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
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Resolved by the Senate, the Assembly concurring,That the
Legislature of the State of California at its 2011–12 Regular
Session commencing on the sixth day of December 2010,
two-thirds of the membership of each house concurring, hereby
proposes to the people of the State of California, that the
Constitution of the State be amended as follows:
First—That Section 4 of Article XIII A thereof is amended to
read:
SEC. 4.Except as provided by Section 4.5, a city, county, or
special district, by a two-thirds vote of its voters voting on the
proposition, may impose a special tax within that city, county, or
special district, except an ad valorem tax on real property or a
transactions tax or sales tax on the sale of real property within that
city, county, or special district.
Second—That Section 4.5 is added to Article XIII A thereof,
to read:
SEC. 4.5.(a) The imposition, extension, or increase of a parcel
tax on real property by a city or, county, or special district, as may
otherwise be authorized by law for the purpose of funding the
maintenance or improvement of fire protection services or police
protection services, or both, is subject to approval by a majority
of the voters in the city or, county, or special district voting on
the proposition.
(b) For purposes of this section, “parcel tax” means a special
tax imposed upon a parcel of real property at a rate that is
determined without regard to that property’s value.
Third—That Section 2 of Article XIII C thereof is amended to
read:
SEC. 2.Notwithstanding any other provision of this
Constitution:
(a) Any tax imposed by any local government is either a general
tax or a special tax. A special district or agency, including a school
district, has no authority to levy a general tax.
(b) A local government may not impose, extend, or increase
any general tax unless and until that tax is submitted to the
electorate and approved by a majority vote. A general tax is not
deemed to have been increased if it is imposed at a rate not higher
than the maximum rate so approved. The election required by this
subdivision shall be consolidated with a regularly scheduled general
election for members of the governing body of the local
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government, except in cases of emergency declared by a unanimous
vote of the governing body.
(c) Any general tax imposed, extended, or increased, without
voter approval, by any local government on or after January 1,
1995, and prior to the effective date of this article, may continue
to be imposed only if that general tax is approved by a majority
vote of the voters voting in an election on the issue of the
imposition, which election shall be held no later than November
6, 1996, and in compliance with subdivision (b).
(d) Except as provided by Section 4.5 of Article XIII A, a local
government may not impose, extend, or increase any special tax
unless and until that tax is submitted to the electorate and approved
by a two-thirds vote. A special tax is not deemed to have been
increased if it is imposed at a rate not higher than the maximum
rate so approved.
Fourth—That Section 3 of Article XIII D thereof is amended
to read:
SEC. 3.(a) An agency shall not assess a tax, assessment, fee,
or charge upon any parcel of property or upon any person as an
incident of property ownership except:
(1) The ad valorem property tax imposed pursuant to Article
XIII and Article XIII A.
(2) Any special tax receiving a two-thirds vote pursuant to
Section 4 of Article XIII A or, a majority vote pursuant to Section
4.5 of Article XIII A.
(3) Assessments as provided by this article.
(4) Fees or charges for property related services as provided by
this article.
(b) For purposes of this article, fees for the provision of electrical
or gas service are not deemed charges or fees imposed as an
incident of property ownership.
O
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