CA Proposition 43: Raises Threshold For Passing New Tax Ballot Measures

Proposition 43 is one of several ballot measures tackling taxes and voting in California this November. In fact, it combines the two hot topics. If Proposition 43 passes, it would amend the state constitution to make it harder to raise local special taxes.

Citizen initiatives asking voters to approve local special taxes would require a two-thirds vote instead of a simple majority to be enacted. By raising the threshold, it becomes less-likely that new tax ballot measures that arrive on the ballot via signature-gathering efforts can pass. Currently, the two-thirds threshold only applies to taxes proposed by government officials. If it passes, the growth of local government tax revenues is likely to slow.

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Evolve California, the political nonprofit aimed at reforming the state's property tax code, has opposed the measure.

"If this measure passes, it will make California the hardest place in the country to raise local revenue," the group warned.

Unions representing nurses and firefighters have come out against the measure.

Not surprisingly, the Howard Jarvis Taxpayers Association, the California Republican Party, and the California Chamber of Commerce support the measure. The groups argue that it would close loopholes that weaken California's famous Prop 13 restrictions on property tax increases.

"Californians who are already struggling with the high cost of living have been forced to pay even higher prices because judges have made it easier to raise taxes," Susan Shelley, the vice president of communications for the Howard Jarvis Taxpayers Association, wrote for CalMatters. "Prop. 43 will restore the two-thirds vote requirement for all local special taxes, including any tax increases placed on the ballot by a citizens' initiative. It's a constitutional amendment, overriding court precedents that say otherwise."

Nearly $15 million from business groups and anti-tax groups has been raised in support of the measure as of October, compared to just over $6 million raised by opponents primarily from employee unions, CalMatters reported.