Limits Voters' Ability to Raise Revenues for Local Government Services

Local voters could no longer approve a new, increased, or extended tax dedicated to a specific purpose with a simple majority when the measure is proposed by initiative. The measure also would bar local governments, including voters acting by initiative, from imposing most taxes based on real-property value.

What it does ​

• Requires a two-thirds vote for voter-proposed local special taxes that are imposed, extended, or increased on or after January 1, 2027.
• Applies the two-thirds requirement to special-tax measures proposed through local initiative powers.
• Prohibits local governments, including local electorates using the initiative process, from imposing ad valorem taxes on real property except where the Constitution allows them.

Who it affects ​

• Local voters proposing or voting on taxes dedicated to particular local purposes.
• Cities, counties, special districts, and school districts that could receive revenue from voter-proposed local taxes.

Context ​

Local special taxes placed on the ballot by local governing bodies require two-thirds voter approval. Under court decisions described by the Legislative Analyst, voter-proposed local special taxes can currently pass with a majority vote.

A yes vote means ​

A yes vote would require two-thirds voter approval for voter-proposed local special taxes imposed, increased, or extended on or after January 1, 2027, and would prohibit most local ad valorem property taxes.

A no vote means ​

A no vote would keep the current majority-vote rule for voter-proposed local special taxes and would not add the measure's property-tax prohibition.

Fiscal effect ​

The Legislative Analyst's Office estimates:

• Possibility that local government tax revenues will not go up as much in the future due to a higher vote threshold for certain taxes.

Official sources ​

• Official voter guide page
• Legislative Analyst's analysis
• Arguments for and against
• Full text (PDF)