Local Sales Taxes Subject to Voter Approval Under Proposition 218 Sales and use taxes in California

1 local sales taxes subject voter approval under proposition 218

1.1 relationship between sales tax increases , public employee costs
1.2 county transportation sales taxes
1.3 sales tax taxpayer tool
1.4 local government data in sales tax elections
1.5 important issues related local sales tax elections

local sales taxes subject voter approval under proposition 218

all local sales taxes subject voter approval under proposition 218 ( right vote on taxes act ) california voters approved in november 1996. whether simple majority voter approval or two-thirds voter approval required depends upon type of sales tax levied , type of local government imposing sales tax.

unrestricted general sales taxes subject majority vote approval local voters. general sales taxes can spent local politicians general governmental purpose, including public employee salaries , benefits. general sales tax spending decisions made after tax election local politicians part of regular annual local government budget process. local governments may engage in general sales tax abuses in effort evade two-thirds vote requirement applicable special sales taxes.

special sales taxes dedicated 1 or more specific purposes subject two-thirds vote approval local voters. sales tax imposed local government other city or county (e.g., special district such local transportation agency) must special tax subject two-thirds vote approval local voters.

proposition 218 not legally authorize local government levy sales tax. legal authority levy local sales tax must come state statute. two-thirds vote of members of legislative body of local government required before local sales tax measure may presented voters @ election.

relationship between sales tax increases , public employee costs

the driving force behind many local sales tax increases skyrocketing public pension costs , public employee retiree healthcare. research has shown local sales tax increases concentrated in california localities have largest pension problems.

in effort increase chances of passing local sales tax, local governments engage in budgetary games in place sales tax measure on ballot fund politically popular service (e.g., public safety), , if sales tax passes, enables local government free other existing taxpayer funds can spent on less politically popular items such high public employee salaries , benefits.

county transportation sales taxes

countywide sales taxes transportation purposes popular in california. however, transportation sales taxes regressive , shift financial base of transportation systems user fees taxes paid taxpayers without regard direct reliance on transportation systems. county transportation sales taxes typically supported (including significant campaign contributions) interest groups disproportionately benefit tax, including local business community, construction industry, real estate developers, , public employee unions. counties have passed multiple transportation sales taxes increases such los angeles county has passed 4 transportation sales tax increases combined rate of 2.0%. county transportation sales taxes not include traffic performance standards require improved traffic conditions.

sales tax taxpayer tool

as part of taxpayer tools publication series, howard jarvis taxpayers association has released publication assist voters , taxpayers regarding local sales tax measures placed on ballot local government in california.

local government data in sales tax elections

it helpful voters have financial data local government proposing sales tax voters can make more informed voting decisions regarding merits , need sales tax. of financial data local government can obtained directly local government itself. additional information can of value voters includes public employee salary , benefits data (especially pension data), , annual budgetary , financial reports. local government budgetary spending priorities, reflected recent budgetary data, can helpful in general sales tax elections local politicians decide how spend sales tax proceeds.

extensive public data sources outside of local government available voters in connection local sales tax elections.

important issues related local sales tax elections

local government issues related sales tax elections (e.g., local government “informational” campaigns , impartial ballot questions) can impact integrity , fairness of election process. voter/taxpayer issues related local sales tax elections (e.g., cumulative tax burden , precedent) can impact individual voter decision-making process election outcomes. support , opposition campaigns in local sales tax elections can impact election outcomes.