Senate Constitutional Amendment No. 5

Introduced by Senator Hancock

March 26, 2015

Senate Constitutional Amendment No. 5—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 XIIIA thereof, by amending Section 2 of Article XIIIC thereof, and by amending Section 3 of Article XIIID thereof, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SCA 5, as introduced, Hancock. Local government: special taxes: voter approval.

The California Constitution conditions the imposition of a special tax by a local government upon the approval of 2⁄3 of the voters of the local government voting on that tax, but authorizes the imposition of a local ad valorem tax for school facilities upon the approval of 55% of the voters voting on that tax.

This measure would condition the imposition, extension, or increase of a special tax by a local government upon the approval of 55% of the voters voting on the proposition, if the proposition proposing the tax contains specified requirements. The measure would also make conforming and technical, nonsubstantive changes.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

Resolved by the Senate, the Assembly concurring, That the
Legislature of the State of California at its 2015-16 Regular
Session commencing on the first day of December 2014, 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:

Section 4.  

begin delete Cities, Counties and special districts, by a two-thirds
vote of the qualified electors of such end delete begin insert A city, county, or special
district, upon the approval of 55 percent of its voters voting on the
proposition, may impose a special tax within that city, county, or
special end insert district, begin delete may impose special taxes on such district, end delete except
ad valorem taxes on real property or a begin delete transaction end delete begin insert transactions end insert tax
or sales tax on the sale of real property within begin delete such City, County end delete
begin insert that city, county, end insert or special district.

Second--  

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

SEC. 2.  

begin delete Local Government Tax Limitation. end delete begin delete   end delete Notwithstanding
any other provision of this Constitution:

(a)  begin delete All taxes end delete begin insert Any tax end insert imposed by any local government begin delete shall be
deemed to be either general taxes or special taxes. Special purpose
districts or agencies, including school districts, shall have no power
to levy general taxes. end delete begin insert 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. end insert

(b)  begin delete No end delete begin insert A end insert local government begin delete may end delete begin insert shall not end insert 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 begin delete shall end delete
begin insert is end insert not begin delete be end delete 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 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 begin delete the effective date of this article, shall end delete begin insert November
6, 1996, may end insert continue to be imposed only if begin insert that general tax is end insert
approved by a majority vote of the voters voting in an election on
the issue of the imposition, which election shall be held begin delete within
two years of the effective date of this article end delete begin insert no later than
November 6, 1998, end insert and in compliance with subdivision (b).

begin insert

(d) (1) A local government shall not impose, extend, or increase
any special tax unless and until that tax is submitted to the
electorate and approved by 55 percent of the voters voting on the
proposition, and all of the following requirements are met:

end insert begin insert

(A) The ballot proposition contains a specific list of programs
and purposes to be funded, and a requirement that tax proceeds
be spent solely for those programs and purposes.

end insert begin insert

(B) The ballot proposition includes a requirement for the annual
independent audit of the amount of tax proceeds collected and the
specified purposes and programs funded.

end insert begin insert

(C) The ballot proposition requires the governing board to
create a citizens’ oversight committee to review all expenditures
of proceeds and financial audits, and report its findings to the
governing board and public.

end insert begin delete

(d) No local government may 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

end delete

begin insert (2) end insert begin insert   end insert begin insert A end insert special tax shall not be deemed to have been increased if
it is imposed at a rate not higher than the maximum rate so
approved.

Third--  

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

SEC. 3.  

begin delete Property Taxes, Assessments, Fees and Charges
Limited. end delete begin delete   end delete (a)  begin delete No end delete begin insert An agency shall not assess a end insert tax, assessment,
fee, or charge begin delete shall be assessed by any agency end delete 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 begin delete a two-thirds vote end delete begin delete pursuant to
Section 4 of Article XIII end delete begin delete   end delete begin delete A end delete begin insert The approval of that percentage of
voters on the proposition as required by this Constitution end insert .

(3) Assessments as provided by this article.

(4) Fees or charges for begin delete property related end delete begin insert property-related end insert services
as provided by this article.

(b) For purposes of this article, fees for the provision of electrical
or gas service begin delete shall end delete begin insert are end insert not begin delete be deemed end delete charges or fees imposed as
an incident of property ownership.