California Superior Court judge rules citizen-initiated local tax measures require majority, not two-thirds, support for approval
Ten states require that voters approve a proposed constitutional amendment by more than a simple majority or by some rule that applies different criteria. According to the National Conference of State Legislatures, five states apply more stringent criteria to statutory initiatives as well. In California, local governments may only enact, extend, or increase a special tax after a two-thirds supermajority vote of the electorate after voters approved such a requirement in 1996.
A California Superior Court judge has ruled however that this supermajority vote requirement for local special taxes in California applies to tax measures referred to the ballot by lawmakers but not to citizen initiatives. Judge Ethan Schulman ruled last week that two 2018 ballot measures that were supported by a majority—but less than two-thirds—of voters were properly certified as approved by city officials. Both initiatives authorized taxes on certain city businesses to fund specific purposes.
In August 2017 the California Supreme Court ruled in California Cannabis Coalition v. City of Upland that one requirement of the state’s 1996 amendment—that certain tax measures must be put on the ballot during general elections—did not apply to citizen initiatives. Thus, the court categorized taxes imposed by citizen initiatives as separate from taxes imposed by local governments.
In June 2018, 50.9% of San Francisco voters approved a citizen initiative to authorize an additional tax on the lease of commercial property for landlords with annual gross receipts over $1 million to fund childcare and early education programs. In November 2018, 61.3% of city voters approved a measure authorizing the city and county of San Francisco to impose a gross receipts tax on business to fund homelessness services.
City and county officials in San Francisco argued that the court's 2017 decision meant that a simple majority—not a two-thirds supermajority—was required for the approval of local citizen initiatives, including tax measures that designate funds for specific purposes. The city certified the 2018 measures and is collecting the taxes associated with both measures but is holding the tax revenue until legal disputes are concluded.
Rex Hime, president of the California Business Properties Association and representing the Howard Jarvis association and the California Business Roundtable, said that plaintiffs would appeal Judge Schulman’s ruling.
In 2018, eight local citizen initiatives in California proposing special taxes were approved by more than a simple majority but less than a two-thirds supermajority vote. Local officials declared two of the measures to be defeated based on the supermajority requirement. The other six measures were certified as approved, including a third measure in San Francisco.
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