Amended in Assembly July 16, 2015

California Legislature—2015–16 Regular Session

Assembly Constitutional AmendmentNo. 4


Introduced by Assembly Member Frazier

(Coauthor: Senator Wolk)

February 27, 2015


Assembly Constitutional Amendment No. 4—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 Article XIII A thereof, and by amending Section 2 of Article XIII C thereof, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

ACA 4, as amended, Frazier. Local government transportation projects: special taxes: voter approval.

The California Constitution conditions the imposition of a special tax by a city, county, or special district upon the approval of 23 of the voters of the city, county, or special district voting on that tax, except that certain school entities may levy an ad valorem property tax for specified purposes with the approval of 55% of the voters within the jurisdiction of these entities.

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The California Constitution prohibits the Legislature from imposing taxes for local purposes, but allows the Legislature to authorize local governments to impose them. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law authorizes local governments to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law.

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This measure would provide that the imposition, extension, or increase of abegin delete special taxend deletebegin insert sales and use tax imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or a transactions and use tax imposed in accordance with the Transactions and Use Tax Lawend insert by a local government for the purpose of providing funding for local transportation projects, as defined, requires the approval of 55% of its voters voting on the proposition. The measure would also make conforming and technical, nonsubstantive changes. This measure would also provide that itbegin delete shallend deletebegin insert wouldend insert become effective immediately upon approval by the voters andbegin delete shallend deletebegin insert wouldend insert apply to any local measure imposing, extending, or increasing abegin delete special taxend deletebegin insert end insertbegin insert sales and use tax or transactions and use taxend insert for local transportation projects submitted at the same election.

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

P2    1Resolved by the Assembly, the Senate concurring, That the
2Legislature of the State of California at its 2015-16 Regular
3Session commencing on the first day of December 2014, two-thirds
4of the membership of each house concurring, hereby proposes to
5the people of the State of California that the Constitution of the
6State be amended as follows:

7

First--  

That Section 4 of Article XIII A thereof is amended to
8read:

9

SEC. 4.  

Except as otherwise provided by Section 2 of Article
10XIII C, a city, county, or special district, by a two-thirds vote of
11its voters voting on the proposition, may impose a special tax
12within that city, county, or special district, except an ad valorem
13tax on real property or a transactions tax or sales tax on the sale
14of real property within that city, county, or special district.

15

Second--  

That Section 2 of Article XIII C thereof is amended
16to read:

17

SEC. 2.  

Notwithstanding any other provision of this
18Constitution:

19(a) A tax imposed by any local government is either a general
20tax or a special tax. A special district or agency, including a school
21district, has no authority to levy a general tax.

22(b) A local government shall not impose, extend, or increase
23any general tax unless and until that tax is submitted to the
24electorate and approved by a majority vote. A general tax is not
P3    1deemed to have been increased if it is imposed at a rate not higher
2than the maximum rate so approved. The election required by this
3subdivision shall be consolidated with a regularly scheduled general
4election for members of the governing body of the local
5government, except in cases of emergency declared by a unanimous
6vote of the governing body.

7(c) Any general tax imposed, extended, or increased, without
8voter approval, by any local government on or after January 1,
91995, and prior tobegin delete the effective date of this articleend deletebegin insert November 6,
101996end insert
, may continue to be imposed only if that general tax is
11approved by a majority vote of the voters voting in an election on
12the issue of the imposition, which election is held no later than
13November 6, 1998, and in compliance with subdivision (b).

14(d) (1) Except as otherwise provided in paragraph (2), a local
15government shall not impose, extend, or increase any special tax
16unless and until that tax is submitted to the electorate and approved
17by two-thirds of the voters voting on the proposition. A special
18tax is not deemed to have been increased if it is imposed at a rate
19not higher than the maximum rate so approved.

20(2) (A) The imposition, extension, or increase of abegin delete special taxend delete
21begin insert sales and use tax imposed pursuant to the Bradley-Burns Uniform
22Local Sales and Use Tax Law, or its successor, or a transactions
23and use tax imposed in accordance with the Transactions and Use
24Tax Law, or its successor,end insert
by a local government for the purpose
25of providing funding for local transportation projects under its
26jurisdiction, as may otherwise be authorized by law, requires the
27approval of 55 percent of the voters voting on the proposition. A
28begin delete special taxend deletebegin insert sales and use tax or transactions and use taxend insert for the
29purpose of providing funding for local transportation projects is
30not deemed to have been increased if it is imposed at a rate not
31higher than the maximum rate previously approved in the manner
32required by law.

33(B) For purposes of this paragraph, “local transportation project”
34means the planning, design, development, financing, construction,
35reconstruction, rehabilitation, improvement, acquisition, lease,
36operation, or maintenance of local streets, roads, and highways,
37state highways and freeways, and public transit systems.

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38(3) This subdivision, and the amendments made to Section 4 of
39Article XIII A by the act adding this subdivision, shall become
40effective immediately upon approval by the voters and shall apply
P4    1to any local measure imposing, extending, or increasing a sales
2and use tax imposed pursuant to the Bradley-Burns Uniform Local
3Sales and Use Tax Law or a transactions and use tax imposed in
4accordance with the Transactions and Use Tax Law for the funding
5of local transportation projects that is submitted at the same
6election.

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7

Third--  

This measure shall become effective immediately
8upon approval by the voters and shall apply to any local measure
9imposing, extending, or increasing a special tax for the funding of
10local transportation projects that is submitted at the same election.

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