California Governor Gavin Newsom and Democratic Leadership are urging the California Supreme Court to remove the Taxpayer Protection and Government Accountability Act from the 2024 ballot. The initiative seeks to reverse judicial rulings that allow local governments to impose special taxes without first receiving a two-thirds vote of the electorate and would require voters to approve taxes adopted by the Legislature. Under current law, the Legislature can increase state taxes by a two-thirds majority vote. This initiative would retain the two-thirds requirement but would also require a majority of California’s voters to approve the increase before it could take effect.
Newsom and some lawmakers argue that implementing this measure would cause irreparable harm to the state’s economy and recovery from the COVID-19 pandemic. In their letter to the Supreme Court, the governor and lawmakers express concerns about the negative impact of the measure on small businesses and consumers. They also highlight potential harm to California’s economic growth and assert that any changes to Proposition 13 should go through the legislative process rather than a ballot measure. Critics of the measure contend it would hinder job growth and make California less competitive.
Supporters argue that the initiative is necessary for fair tax contributions and funding for local governments and that any state tax should require majority approval from statewide voters. They also advocate for closing tax loopholes and ensuring transparency in the use of approved taxes.
Currently, the California Supreme Court has not made a decision on whether to allow the measure on the 2024 ballot. Ongoing discussions are focused on finding alternative solutions that address tax fairness and accountability without negatively impacting businesses.
According to the California Taxpayers Association, the last time the California Supreme Court removed an initiative from the ballot was in 2018, when the court ruled that a ballot measure that would have split California into three states amounted to a constitutional revision.
The local experts at Ryan will continue to closely monitor the progress of this issue and are available to answer any questions.
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Scott Donald
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Ryan
408.850.4571
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Gina Rodriquez
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