Page 30 - Special District Handbook with Cover-Final

PROPOSITION 218

On November 5, 1996, California voters passed Proposition 218 , the “Right to Vote on Taxes Act .” This California Constitutional Amendment protects taxpayers by limiting the methods by which local governments can increase taxes, fees, and charges without taxpayer consent. Proposition 218 requires voter approval prior to any imposition or increase of general taxes, assessments, and certain user fees. It shifts most of the power over taxation from locally elected governing boards to residents and property owners.

Proposition 218 applies to each of California’s cities, counties, special districts, schools, community college districts, redevelopment agencies, and regional organizations.

Voter Approval on Taxes: Proposition 218 requires all local governments, including charter cities, to get majority vote approval for new or increased general taxes.

Restricts Timeframe to Call an Election: Proposition 218 limits local government’s authority to call an election to raise revenues. Except in cases of emergency, local governments now many hold elections on general taxes only once every two years (consolidated with an election for members of the governing board.)

Initiative Power to Repeal: Proposition 218 allows voters to repeal or reduce any existing local tax, assessment, or charge through the voter initiative process.

In addition Proposition 218 changes the number of signatures required to put an initiative petition to reduce taxes, fees, and assessments on the ballot. It ties the number of signatures needed to the maximum required for statewide statutory

initiatives. This means that the required number of signatures to qualify an initiative pertaining to the reduction of taxes, fees, and assessments for the ballot would be five percent of the total number of votes cast for all candidates for Governor at the last gubernatorial election within the local government jurisdiction involved. By comparison, the number of signatures needed for a normal initiative petition in a district is ten percent of the registered voters where the total number of registered voters is less than 500,000.

Neither the Legislature nor any local government charter shall impose a signature requirement higher than that applicable to statewide statutory initiatives.

Cal. Const. art. 13C, § 3, Elec. Code, § 9035

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