August 9, 2018

It’s too late to qualify for the November 2018 ballot, but that hasn’t deterred initiative filers. They’ve set their sights on the November 2020 ballot. To date, one initiative has already qualified for 2020 and over a dozen are moving through the process.

The “Reducing Crime and Keeping California Safe Act” is the first initiative to secure a spot on the 2020 ballot, after narrowly missing the deadline for 2018. The initiative, led by the Crime Victims United of California, would reverse current policies aimed at reducing prison populations (see the Legislative Analyst’s fiscal impact report).

Aside from the initiatives that have already qualified, counties will want to note three proposals of particular significance:

1. “The California Sugar-Sweetened Beverages Tax Act of 2020” – Jointly filed by the California Medical Association and California Dental Association, this proposal would counter the deal brokered between the Legislature and the California Business Roundtable to remove the supermajority tax measure from the 2018 ballot. The proposed initiative would enshrine in the California Constitution the right of local governments to impose taxes on beverages, such as soda, that contribute to diabetes, obesity, dental disease, heart disease or other similar public health factors. Local agencies would retain taxing authority so long as “soda tax” proceeds were used for the disease prevention and other related purposes.

See the full text of the initiative proposal here.

2. “Property Tax 2020” – Filed by the California Association of Realtors, this proposal is very similar to Proposition 5 on the 2018 ballot except for some additional provisions aimed to mitigate the revenue losses borne on local governments. Specifically, the changes proposed include limiting the inheritance exemption (where children retain their parents’ property tax bills) and instituting new commercial property tax assessment practices that still heavily favors businesses. This is also known as “split roll” since it applies tax base protections differently to residential and commercial properties. This 2020 proposal may indicate a change in tactics for the Realtors in light of CSAC-opposed Proposition 5, which is set for November 2018.

See the full text of the initiative proposal here.

3. “Split Roll” Commercial Property Reassessment. – Proponents of a different type of property tax assessment reform want to ensure commercial and industrial properties are assessed at fair market value more often. Current practices allow business to avoid reassessment at point of sale so long as less than 50% of the ownership changes hands. The fair market assessment of commercial and industrial property is estimated to generate over $6 billion. However, unlike current property taxes, the revenue would be partly funneled to a special account for school and community colleges.

See the full text of initiative proposal here.

CSAC is closely monitoring the initiative landscape for both 2018 and 2020 and will continue to keep counties apprised of any new developments.