Your Taxes Will Not Increase When We Become a City

By Scott A. Mann

The power of taxation rests with the voter in the State of California. This power is constitutionally guaranteed by the passing of three landmark constitutional amendments in 1978 and 1996 by the citizens of California.

Since 1978, there have been three key California Constitutional Amendments approved by the voters of California to protect the rights of property owners:

• Proposition 13
• Proposition 8
• Proposition 218

This amendment to the Californian Constitution limits property tax rates to no more than 1% of full cash value. Increases in assessed value per year are capped at 2% or the percentage growth in the Consumer Price Index (CPI), whichever is less. In 2002-03, the increase was 1.87%. It has been less than the 2% cap only five times since 1978. New construction and the sale of property, with some exceptions, also increase assessed values. The other significant aspect of Proposition 13 was that it guarantees the right of citizens to vote on any new local tax and that vote must be passed by a two-thirds majority (66%).

PROPOSITION 8 - "Decline in Market Value"

Proposition 8, passed in November 1978, amended Proposition 13 to reflect declines in value. As a result, Revenue and Taxation Code Section 51 requires the County Assessor to annually enroll either a property's factored Proposition 13 base year value or its Market Value as of January 1, taking into account any factors causing a decline in value, whichever is less. Proposition 8 reductions are temporary reductions which recognize the fact that the current market value of a property has fallen below its current factored Proposition 13 base year value.

PROPOSITION 218

Proposition 218 was passed by California voters on November 5, 1996, and the assessments portion placed in effect on July 1, 1997. This proposition significantly changed local government finance in the state. Proposition 218 amended the California Constitution as it relates to assessments and requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. In the past, the local government agencies were not required to obtain ballot approval from the property owners before levying street lighting assessments; only council approval was required, even if there were significant protests. Government agencies affected by Proposition 218 are counties, cities, and special districts.

"ONLY YOU, THE VOTER, CAN RAISE TAXES IN THE NEW CITY OF MENIFEE as guaranteed by the California Constitution"