Senate Constitutional AmendmentNo. 3


Introduced by Senators Leno, Hill, and Pavley

(Principal coauthors: Senators Corbett and Wolk)

(Coauthors: Senators De León, DeSaulnier, Evans, Price, and Yee)

(Coauthors: Assembly Members Ammiano, Buchanan, and Gordon)

December 3, 2012


Senate Constitutional Amendment No. 3—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

SCA 3, as introduced, Leno. Taxation: educational entities: parcel tax.

The California Constitution generally conditions the imposition of a special tax by a city, county, or special district, including a school district, upon the approval of 23 of the voters of the city, county, or special district voting on that tax.

This measure would alternatively condition the imposition, extension, or increase of a parcel tax, as defined, by a school district, community college district, or county office of education upon the approval of 55% of its voters voting on the proposition, if the proposition meets specified requirements. This measure would also make conforming changes to related provisions.

Vote: 23. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

P1    1Resolved by the Senate, the Assembly concurring, That the
2Legislature of the State of California at its 2013-14 Regular
P2    1Session commencing on the third day of December 2012,
2two-thirds of the membership of each house concurring, hereby
3proposes to the people of the State of California, that the
4Constitution of the State be amended as follows:

5

First--  

That Section 4 of Article XIII A thereof is amended to
6read:

7

SEC. 4.  

begin deleteCities, Counties and special districts, end deletebegin insertExcept as end insert
8begin insertprovided by Section 4.5, a city, county, or special district, end insertby a
9two-thirds vote ofbegin delete the qualified electors of such districtend deletebegin insert its voters end insert
10begin insertvoting on the propositionend insert, may imposebegin delete special taxes on such districtend delete
11begin insert a special tax within that city, county, or special districtend insert, exceptbegin insert anend insert
12 ad valorembegin delete taxesend deletebegin insert taxend insert on real property or abegin delete transactionend deletebegin insert transactionsend insert
13 tax or sales tax on the sale of real property withinbegin delete such City, Countyend delete
14begin insert that city, county,end insert or special district.

15

Second--  

That Section 4.5 is added to Article XIII A thereof,
16to read:

17

SEC. 4.5.  

(a) The imposition, extension, or increase of a parcel
18tax on real property by a school district, community college district,
19or county office of education, as may otherwise be authorized by
20law, is subject to approval by 55 percent of the voters of that district
21or county voting on the proposition, if all of the following
22conditions are met:

23(1) The proposition is approved by a majority vote of the
24membership of the governing board of the school district,
25community college district, or county office of education.

26(2) The proposition contains all of the following accountability
27requirements:

28(A) A list of the specific purposes and programs that are to be
29funded.

30(B) A requirement that the proceeds be used only for the
31purposes and programs specified in the proposition, and not for
32any other purpose.

33(C) To ensure compliance with subparagraph (B), a requirement
34that the governing board of the school district, community college
35district, or county office of education conduct an annual
36independent financial audit of the amount of parcel tax proceeds
37collected and expended, and the specified purposes and programs
38funded.

39(D) To ensure compliance with subparagraph (B), a requirement
40that the governing board of the school district, community college
P3    1district, or county office of education establish a citizens’ oversight
2committee to review all expenditures of proceeds and financial
3audits, and report its findings to the governing board and to the
4public.

5(3) The proposition allows for an exemption from tax, to be
6claimed under procedures established by the county, for any parcel
7that, as of January 1 of each year, is owned by and upon which is
8located the principal residence of, either a person or persons 65
9years of age or older, or, without regard to age, a person or persons
10receiving Supplemental Security Income for a disability.

11(b) For purposes of this section, “parcel tax” means a special
12tax imposed upon a parcel of real property at a rate that is
13determined without regard to that property’s value.

14(c) The total amount of parcel tax impositions, increases, or
15extensions submitted to the voters for approval in accordance with
16this section at any election by a school district, community college
17district, or county office of education shall be established by the
18governing board of the school district, community college district,
19or county office of education and shall not exceed that amount.
20This maximum amount shall be annually adjusted to account for
21inflation, measured as the annual change, from June to June of
22each year, in the United States city average of the Consumer Price
23Index for All Urban Consumers, as published by the United States
24Bureau of Labor Statistics, or any successor to that index.

25(d) Proceeds of any tax approved pursuant to this section shall
26not be used to pay salaries of any administrator of any school
27district, community college district, or county office of education.

28(e) This section does not limit any other authority of a school
29district, community college district, or county office of education
30to impose a special tax approved in accordance with Section 4 of
31this article or Section 2 of Article XIII   C.

32

Third--  

That Section 2 of Article XIII C thereof is amended to
33read:

34

SEC. 2.  

begin deleteLocal Government Tax Limitation. end deleteNotwithstanding
35any other provision of this Constitution:

36(a) begin deleteAll taxes end deletebegin insertAny tax end insertimposed by any local governmentbegin delete shall be end delete
37begin deletedeemed to beend deletebegin insert isend insert eitherbegin insert aend insert generalbegin delete taxesend deletebegin insert taxend insert orbegin insert aend insert specialbegin delete taxesend deletebegin insert taxend insert.
38begin deleteSpecial purpose districts end deletebegin insertA special district end insertorbegin delete agenciesend deletebegin insert agencyend insert,
39includingbegin insert aend insert schoolbegin delete districts, shall haveend deletebegin insert district, hasend insert nobegin delete powerend delete
40begin insert authorityend insert to levybegin insert aend insert generalbegin delete taxesend deletebegin insert taxend insert.

P4    1(b) begin deleteNo end deletebegin insertA end insertlocal government maybegin insert notend insert impose, extend, or increase
2any general tax unless and until that tax is submitted to the
3electorate and approved by a majority vote. A general taxbegin delete shallend deletebegin insert isend insert
4 notbegin delete beend delete deemed to have been increased if it is imposed at a rate not
5higher than the maximum rate so approved. The election required
6by this subdivision shall be consolidated with a regularly scheduled
7general election for members of the governing body of the local
8government, except in cases of emergency declared by a unanimous
9vote of the governing body.

10(c) Any general tax imposed, extended, or increased, without
11voter approval, by any local government on or after January 1,
121995, and prior tobegin delete the effective date of this articleend deletebegin insert November 6, end insert
13begin insert1996end insert,begin delete shallend deletebegin insert mayend insert continue to be imposed only ifbegin insert that general tax isend insert
14 approved by a majority vote of the voters voting in an election on
15the issue of the imposition, which election shall be heldbegin delete within end delete
16begin deletetwo years of the effective date of this articleend deletebegin insert no later than end insert
17begin insertNovember 6, 1998,end insert and in compliance with subdivision (b).

18(d) begin deleteNo end deletebegin insertExcept as provided by Section 4.5 of Article XIIIend insertbegin insertend insertbegin insertA, a end insert
19local government maybegin insert notend insert impose, extend, or increase any special
20tax unless and until that tax is submitted to the electorate and
21approved by a two-thirds vote. A special taxbegin delete shallend deletebegin insert isend insert notbegin delete beend delete deemed
22to have been increased if it is imposed at a rate not higher than the
23maximum rate so approved.

24

Fourth--  

That Section 3 of Article XIII D thereof is amended
25to read:

26

SEC. 3.  

begin deleteProperty Taxes, Assessments, Fees and Charges end delete
27begin deleteLimited. (a)end deletebegin deleteend deletebegin deleteNo end deletebegin insert(a)end insertbegin insertend insertbegin insertAn agency shall not assess a end inserttax, assessment,
28fee, or chargebegin delete shall be assessed by any agencyend delete upon any parcel of
29property or upon any person as an incident of property ownership
30except:

31(1) The ad valorem property tax imposed pursuant to Article
32XIII and Article XIII A.

33(2) Any special tax receiving a two-thirds vote pursuant to
34Section 4 of Article XIII Abegin insert, or, as applicable, a 55end insertbegin insert-percent vote end insert
35begin insertpursuant to Section 4.5 of Article XIIIend insertbegin insertend insertbegin insertAend insert.

36(3) Assessments as provided by this article.

37(4) Fees or charges forbegin delete property relatedend deletebegin insert property-relatedend insert services
38as provided by this article.

P5    1(b) For purposes of this article, fees for the provision of electrical
2or gas servicebegin delete shallend deletebegin insert areend insert not begin delete be deemedend delete charges or fees imposed as
3an incident of property ownership.



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