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ACA-21 Taxation: voter approval.(2019-2020)

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ACA21:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Constitutional Amendment
No. 21


Introduced by Assembly Member Melendez

February 12, 2020


A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 3 of Article XIII A of the California Constitution thereof, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


ACA 21, as introduced, Melendez. Taxation: voter approval.
The California Constitution requires any change in state statute that increases the tax liability of any taxpayer to be imposed by an act approved by 2/3 of the membership of each house of the Legislature, and prohibits specified taxes on real property from being so imposed. For these purposes, the California Constitution defines a tax as any state levy, charge, or exaction, except as described in certain categories.
This measure would additionally require any change in state statute that increases the tax liability of any taxpayer to be submitted to the electors and, if approved by a majority of votes on the issue, to take effect the day after the election unless the act provides otherwise.
Vote: 2/3   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

Resolved by the Assembly, the Senate concurring, That the Legislature of the State of California at its 2019–20 Regular Session commencing on the third day of December 2018, 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:

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

SEC. 3.
 (a) Any change in state statute which that results in any taxpayer paying a higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature, Legislature and submitted to the electors and, if approved by a majority of the votes thereon, takes effect the day after the election unless the act provides otherwise, except that no new ad valorem taxes on real property, or sales or transaction taxes on the sales of real property may be imposed.
(b) As used in this section, “tax” means any levy, charge, or exaction of any kind imposed by the State, except the following:
(1) A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the State of conferring the benefit or granting the privilege to the payor.
(2) A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the State of providing the service or product to the payor.
(3) A charge imposed for the reasonable regulatory costs to the State incident to issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.
(4) A charge imposed for entrance to or use of state property, or the purchase, rental, or lease of state property, except charges governed by Section 15 of Article XI.
(5) A fine, penalty, or other monetary charge imposed by the judicial branch of government or the State, as a result of a violation of law.
(c) Any tax adopted after January 1, 2010, but prior to the effective date of this act, that was not adopted in compliance with the requirements of this section is void 12 months after the effective date of this act unless the tax is reenacted by the Legislature and signed into law by the Governor in compliance with the requirements of this section.
(d) The State bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.