BILL NUMBER: SCA 15 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Hancock
JULY 14, 2011
A resolution to propose to the people of the State of California
an amendment to the Constitution of the State, by amending Section 3
of Article XIII A thereof, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SCA 15, as introduced, Hancock. Taxation: voter approval.
The California Constitution requires that a change in state
statute, passed by the Legislature, that results in a taxpayer paying
a higher tax be imposed in an act that is passed with the approval
of not less than 2/3 of the membership of each house of the
Legislature.
This measure would alternatively allow a change in state statute,
passed by the Legislature, that results in a taxpayer paying a higher
tax to be imposed in an act passed by a majority of the membership
of each house of the Legislature, where that change becomes effective
only when submitted to the voters and approved by a majority of the
voters voting on that measure at a statewide election.
This measure would make related findings and declarations.
Vote: 2/3. Appropriation: no. Fiscal committee: no. State-mandated
local program: no.
WHEREAS, Decisions regarding taxation are some of the most
difficult types of decisions that any level of government makes; and
WHEREAS, The current legislative two-thirds vote requirement in
Section 3 of Article XIII A of the California Constitution is
designed to encourage consensus on issues of taxation, but many times
has led to gridlock; and
WHEREAS, The legislative two-thirds vote requirement has in some
circumstances allowed for the opening and continuation of tax
loopholes and led to tax legislation that has heavily impacted
ordinary taxpayers; and
WHEREAS, Voters have substantial experience in evaluating taxes at
the polls, having both passed and rejected many tax measures by
majority vote on both state and local ballots; and
WHEREAS, It is the intent of the Legislature to propose to the
People of the State of California the Taxpayer Right to Vote Act,
which provides an alternative approach to tax legislation which does
not make it easier to raise taxes, but attempts instead to reflect
the will of the majority of the voters; and
WHEREAS, This measure would propose a process as an alternative
to, but not a replacement for, the legislative two-thirds vote
requirement, by which a majority of the membership of each house of
the Legislature may submit tax measures to the voters at a statewide
election; now, therefore, be it
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:
That Section 3 of Article XIII A thereof is amended to read:
SEC. 3. (a) Any change in state statute which
that results in any taxpayer paying a higher tax
must be imposed by an act in accordance with
either of the following:
(1) By a n act
passed by not less than two-thirds of all members
elected to the membership of each of
the two houses 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.
(2) An act passed by a majority of the membership of each house of
the Legislature and the change becomes effective only when submitted
to the voters and approved by a majority of the voters voting on
that measure at a statewide election, except that no new ad valorem
taxes on real property, or sales or transaction taxes on the sales of
real property may be imposed.
(b) As used in this section, "tax" means any levy, charge, or
exaction of any kind imposed by the State, except the following:
(1) A charge imposed for a specific benefit conferred or privilege
granted directly to the payor that is not provided to those not
charged, and which does not exceed the reasonable costs to the State
of conferring the benefit or granting the privilege to the payor.
(2) A charge imposed for a specific government service or product
provided directly to the payor that is not provided to those not
charged, and which does not exceed the reasonable costs to the State
of providing the service or product to the payor.
(3) A charge imposed for the reasonable regulatory costs to the
State incident to issuing licenses and permits, performing
investigations, inspections, and audits, enforcing agricultural
marketing orders, and the administrative enforcement and adjudication
thereof.
(4) A charge imposed for entrance to or use of state property, or
the purchase, rental, or lease of state property, except charges
governed by Section 15 of Article XI.
(5) A fine, penalty, or other monetary charge imposed by the
judicial branch of government or the State, as a result of a
violation of law.
(c) Any tax adopted after January 1, 2010, but prior to the
effective date of this act, that was not adopted in compliance with
the requirements of this section is void 12 months after the
effective date of this act unless the tax is reenacted by the
Legislature and signed into law by the Governor in compliance with
the requirements of this section.
(d) The State bears the burden of proving by a preponderance of
the evidence that a levy, charge, or other exaction is not a tax,
that the amount is no more than necessary to cover the reasonable
costs of the governmental activity, and that the manner in which
those costs are allocated to a payor bear a fair or reasonable
relationship to the payor's burdens on, or benefits received from,
the governmental activity.