LOCAL TAXPAYER PROTECTION ACT TO SAVE PROPOSITION 13.
(Version 3)
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.
(c) Notwithstanding article II and article XI of this constitution, no local government, including
the electorate 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, and not
exceeding the rate, specified in subdivisions (a) and (b) of Revenue and Taxation Code section
11911, as it existed on January 1, 2025.
(d) Any tax upon a parcel of real property or upon any person as an incident of real property
ownership enacted prior to the effective date of this section that. does not comply with this
section, and any 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 this section 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.
(e) "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 law 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.