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Concept
1996 California Proposition 218
Summary
Proposition 218 is an adopted initiative constitutional amendment which revolutionized local and regional government finance and taxation in California. Named the "Right to Vote on Taxes Act," it was sponsored by the Howard Jarvis Taxpayers Association as a constitutional follow-up to the landmark property tax reduction initiative constitutional amendment, Proposition 13, approved in June 1978. Proposition 218 was approved and adopted by California voters during the November 5, 1996, statewide general election.
Proposition 218 amended the California Constitution by adding Article XIII C and Article XIII D. Article XIII C added constitutional voter approval requirements for all local government taxes which previously did not exist. Also included in Article XIII C is a provision significantly expanding the reserved constitutional local initiative power by voters to reduce or repeal any local government tax, assessment, fee or charge, and this constitutional reservation is also subject to a significantly reduced signature requirement making ballot qualification easier. Article XIII D added constitutional assessment and property-related fee reforms applicable to all local governments. This includes numerous additional requirements for special benefit assessments on real property and for property-related fees and charges, such as various utility fees imposed by local governments which are no longer allowed to exceed the cost of providing the utility service to a customer.
The California Senate Office of Research listed Proposition 218 as one of the most significant laws of the 20th century in California. Following the November 1996 election, a high level official from the California State Association of Counties wrote that Proposition 218 "profoundly changes the way California is governed" and "may prove to be the most revolutionary act in the history of California." Proposition 218 was also the first successful initiative constitutional amendment in California history to add more than one article to the California Constitution as well as to alter the scope of the constitutional initiative power.
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