SUBJECT
Title
Supplemental Information: Summary of Legislation Related to Tax Ballot Measures
Report
BACKGROUND
As the Council considers revenue opportunities, it is important to note that there are legislative issues that must be taken into account when considering the viability of successful ballot measures for the November 2018 election. Staff continues to monitor and analyze the potential impacts and will continue to transmit information as it becomes available. The following information is being transmitted to the Council for consideration in the context of considering revenue opportunities:
The Tax Fairness, Transparency, and Accountability Act of 2018
In January 2018, the California Business Roundtable crafted a potential measure for the November 2018 state ballot entitled, "The Tax Fairness, Transparency, and Accountability Act of 2018" (attached). This potential measure has a circulation deadline of July 25, 2018. If the necessary signatures are collected by this date, those signatures will be verified, and if so verified, the measure will qualify for the statewide November 2018 ballot.
Key elements of this measure include:
? Requiring a two-thirds voter approval to raise any and all new local taxes. Currently, local taxes for general purposes may pass by a majority vote, while only taxes for a special purpose require a supermajority vote.
? Expanding the definition of a tax to include some charges that local governments currently treat as nontax levies, such as regulatory and service fees. Consequently, this measure increases the number of revenue proposals subject to higher vote requirements.
? Retroactively voiding any voter-approved local taxes imposed in 2018, unless those taxes meet the criteria adopted by this measure.
? Mandating a two-thirds vote of the City Council to approve all fees and allowing a referenda process for voters to overturn fees.
? Requiring that tax ballot measures include a statement of how revenues can be spent, in...
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