California voters will decide this November whether to make it harder to pass local special tax increases under what’s called the Local Taxpayer Protection Act. The measure, backed by the Howard Jarvis Taxpayers Association (HJTA), qualified for the ballot months ago. In recent weeks, lawmakers and Gov. Gavin Newsom have tried to negotiate with the group and the proposal’s supporters to remove it. State and local leaders worry about its impact on local government budgets. The Local Taxpayer Protection Act proposes to change the California Constitution to require a two-thirds vote of approval by residents for all local special tax increases, instead of the current simple majority vote allowed for citizen initiatives. Currently, special taxes proposed by local governments already require a two-thirds vote to pass. The act also limits fees that cities and counties can charge during property ownership transfers, known as real estate transfer taxes. It would cap these taxes at no higher than 0.11%. HJTA President Jon Coupal said the proposal stems from state court decisions that the group believes undermined Proposition 13, California’s nearly 50-year-old property tax law. Lawmakers and the governor have filed a proposed state law to make changes to the real estate transfer tax situation with the hope HJTA removes the measure from the ballot, but Coupal said the group is standing firm. “I think our message is extraordinarily simple. Makes it harder to raise taxes. That’s it, makes it harder to raise taxes at the local level,” Coupal said. “And if you want to elaborate, we can say it makes it harder to raise taxes at the local level by closing two loopholes in Prop 13. Very simple, straightforward message.” Coupal also addressed the pressure from lawmakers, saying, “I think one of the things we do is for any local community, we just say if they’re pushing back and saying our initiative is too draconian, look at their budget five years ago and look at their budget today, and then ask the question, where is that money going? You have gotten local government revenues and state government revenue increasing at rates much faster than population inflation.” He added, “California is a tax-producing machine. Highest income tax rate in America, 13.3%. Highest state sales tax rate in America, 7.25%. That’s even before the local add-ons, highest gas tax. And even with Prop 13, we rank 18th out of 50 states in per capita property tax collections. Even with property taxes, we’re not a low property tax state.” KCRA 3 reached out to Gov. Newsom’s office and spokespeople for Assembly Speaker Robert Rivas and Senate Pro Tem Monique Limón. None commented as of Tuesday night. Los Angeles Mayor Karen Bass expressed confidence to NBC LA that the measure could still be removed from the ballot, noting that there are a few days left to negotiate before the secretary of state certifies ballot initiatives for the November election on Thursday.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
SACRAMENTO, Calif. —
California voters will decide this November whether to make it harder to pass local special tax increases under what’s called the Local Taxpayer Protection Act.
The measure, backed by the Howard Jarvis Taxpayers Association (HJTA), qualified for the ballot months ago. In recent weeks, lawmakers and Gov. Gavin Newsom have tried to negotiate with the group and the proposal’s supporters to remove it. State and local leaders worry about its impact on local government budgets.
The Local Taxpayer Protection Act proposes to change the California Constitution to require a two-thirds vote of approval by residents for all local special tax increases, instead of the current simple majority vote allowed for citizen initiatives. Currently, special taxes proposed by local governments already require a two-thirds vote to pass.
The act also limits fees that cities and counties can charge during property ownership transfers, known as real estate transfer taxes. It would cap these taxes at no higher than 0.11%.
HJTA President Jon Coupal said the proposal stems from state court decisions that the group believes undermined Proposition 13, California’s nearly 50-year-old property tax law.
Lawmakers and the governor have filed a proposed state law to make changes to the real estate transfer tax situation with the hope HJTA removes the measure from the ballot, but Coupal said the group is standing firm.
“I think our message is extraordinarily simple. Makes it harder to raise taxes. That’s it, makes it harder to raise taxes at the local level,” Coupal said. “And if you want to elaborate, we can say it makes it harder to raise taxes at the local level by closing two loopholes in Prop 13. Very simple, straightforward message.”
Coupal also addressed the pressure from lawmakers, saying, “I think one of the things we do is for any local community, we just say if they’re pushing back and saying our initiative is too draconian, look at their budget five years ago and look at their budget today, and then ask the question, where is that money going? You have gotten local government revenues and state government revenue increasing at rates much faster than population inflation.”
He added, “California is a tax-producing machine. Highest income tax rate in America, 13.3%. Highest state sales tax rate in America, 7.25%. That’s even before the local add-ons, highest gas tax. And even with Prop 13, we rank 18th out of 50 states in per capita property tax collections. Even with property taxes, we’re not a low property tax state.”
KCRA 3 reached out to Gov. Newsom’s office and spokespeople for Assembly Speaker Robert Rivas and Senate Pro Tem Monique Limón. None commented as of Tuesday night.
Los Angeles Mayor Karen Bass expressed confidence to NBC LA that the measure could still be removed from the ballot, noting that there are a few days left to negotiate before the secretary of state certifies ballot initiatives for the November election on Thursday.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel