Nine years ago, a 5-2 Supreme Court held in California Cannabis Coalition v. City of Upland (2017) 3 Cal.5th 924 that a state constitutional provision — added by initiative to limit the taxing power of “local governments” — is not an obstacle to voters themselves imposing taxes by initiative. (See here.) Yesterday, the Legislature sent to this November’s ballot a proposed amendment to the Constitution that would undo the court’s decision, at least as to “special taxes.”
The California Cannabis majority said, “Only by approving a [constitutional] measure that is unambiguous in its purpose to restrict the electorate’s own initiative power can the voters limit such power, tying themselves to the proverbial mast as Ulysses did.” Assembly Constitutional Amendment 22 would impose such a restriction for special taxes. If approved by the voters, ACA 22 would establish special-tax constraints for any “local government, including the electorate of a local government exercising the initiative power.” (Emphasis added.)
The Legislature’s action — by a 68-2 Assembly vote and a 35-1 vote in the Senate — is reported by and the Sacramento Bee to be part of “an 11th hour deal” by “Democratic lawmakers, business groups and a conservative anti-tax activist.” The article says ACA 22 replaces on the ballot a proposed constitutional amendment “that backers from the Howard Jarvis Taxpayers Association said would’ve reined in expansive local real estate taxes. Critics argue it would’ve threatened critical existing revenue streams that local governments use to pay for public services.”
