| Initiative: | 25-0005A1 |
| Filed: | June 16, 2025 |
| Proponent(s): | Jon Coupal |
| Source: | Office of Attorney General |
| WBM: | Wayback Machine |
| Difference: | 25-0005 and 25-0005A1 |
| Explain: | Version 2 (25-0005A1) now has the same "null and void" provision as Version 1. However, "electors" is replaced by "electorate." This appears to be an attempt to conform this section with existing language from Propostion 13. |
LOCAL TAXPAYER PROTECTION ACT TO SAVE PROPOSITION 13
(Version 2) Amendment #1
Section 4.5 of Article XIII A of the California Constitution is added to read:
Sec. 4.5. RESTORING LOCAL TAXPAYER PROTECTIONS.
(a) Starting in 1978 with the passage of Proposition 13 through Proposition 26 in 2010,
California voters have repeatedly tried to protect themselves from excessive taxation by
imposing strict limits on property-related taxes and requiring two-thirds voter approval for
special taxes which disproportionately burden homeowners and small businesses. Despite the
clear intent of the voters, special interests have exploited court-created loopholes to pass billions
in new and higher taxes. This section will restore the tax relief started with Proposition 13. The
interlocking provisions of this section are a matter of statewide concern to ensure effective tax
relief, and will apply to all forms of local governments, including charter cities.
(b) Notwithstanding article II and article XI of this constitution, a local government, including
the electorate of a local government exercising initiative power, may impose special taxes only
on such entity; only as provided in section 4 of this article, in section 2 of article XIII C, or in
section (3)(a)(2) of article XIII D; and only after the tax is submitted to the electorate and
approved by a two-thirds vote; and may impose a special transaction tax, sales tax, documentary
transfer tax, or other tax related to real property sales, transfers, documents or recordings, only
after the tax is submitted to the electorate and approved by a two-thirds vote. The total amount
of general and special transaction tax, sales tax, documentary transfer tax, or other tax relating
to real property sales, transfers, documents or recordings, shall not exceed the rate provided for
in subdivisions (a) and (b) of Revenue and Taxation Code section 11911 as it existed on January
1, 2025.
(c) Any special tax upon a parcel of real property or upon any person as an incident of real
property ownership pursuant to section (3)(a)(2) of article XIII D, or any special transaction tax,
sales tax, documentary transfer tax, or other tax related to real property sales, transfers,
documents or recordings enacted prior to the effective date of this section that does not comply
with subdivision (b) shall become null and void on December 31 two years following enactment
of this section. This subdivision shall also apply to such taxes enacted under the initiative power.
(d) "Local government," "special tax," and "general tax" shall have the same meaning as
provided in section 1 of article XIII C. The term "electorate" as used herein and in section 2 of
article XIIIC means the electors or voters, including property owners, entitled to vote to approve
or reject a general or special tax under the statute authorizing the tax as it existed on January 1,
2025. The term "initiative power" applies to the initiative power derived from the constitution,
statute, or charter law. This section shall be liberally construed and applied to effectuate its
purposes. Any provision of this section held invalid is severable. Notwithstanding any other law,
if approved by a majority of the qualified electors, this section shall become effective pursuant to
section 4 of article XVIII as it existed on January 1, 2025.
SAVE PROPOSITION 13 ACT OF 2026 (Version 2)
Section 4.5 of Article XIII A of the California Constitution is added to read:
Sec. 4.5. RESTORING PROPOSITION 13 TAXPAYER PROTECTIONS.
(a) Starting in 1978 with the passage of Proposition 13 through Proposition 26 in 2010,
California voters have repeatedly tried to protect their homes and businesses from excessive
taxation by imposing strict limits on property-related taxes and requiring two-thirds voter
approval for special taxes which disproportionately burden homeowners and businesses. Despite
the clear intent of the voters, California courts have sided with the government and its special
interest benefactors by creating loopholes that significantly weakened these protections. This
section will reverse these court-created loopholes and restore the tax relief first started with
Proposition 13. The interlocking provisions herein are necessary to ensure effective tax relief
and will apply to all forms of local governments, including charter cities.
(b) A local government, including the electors of a local government exercising initiative power,
may impose special taxes on such entity as provided in section 4 of this article and in section 2 of
article XIII C, or a special tax upon a parcel of real property or upon any person as an incident
of real property ownership pursuant to section (3)(a)(2) of article XIII D, only upon a two-thirds
vote of the qualified electors of the local government.
(c) No local government, including the electors of a local government exercising the initiative
power, may impose ad valorem taxes on real property, except as provided in section (3)(a)(1) of
article XIII D, any non-ad valorem general tax upon a parcel of real property or upon any
person as an incident of real property ownership, or any transaction tax, sales tax, documentary
transfer tax, or other tax related to real property sales, transfers, documents or recordings
except for the tax provided for and limited in subdivisions (a) and (b) of Revenue and Taxation
Code section 11911, as it existed on January 1, 2025.
(d) "Local government," "special tax," and "general tax" shall have the same meaning as
provided in section 1 of article XIII C. The term "initiative power" applies to the initiative
power derived from the constitution, statute, or charter law. This section shall be liberally
construed and applied to effectuate its purposes. Any provision of this section held invalid is
severable. Notwithstanding any other law, if approved by a majority of the qualified electors,
this section shall become effective pursuant to section 4 of article XVIII as it existed on January
1, 2025.