New ballot initiative reforms how many taxes are gathered in high-cost California | Opinion
Just as the sun will surely rise tomorrow, you can be sure that the gas tax will be raised every year. That’s because the California Legislature several years ago passed a gas tax containing an automatic escalator that spikes the tax upward every July 1.
This automatic gas tax increase has no end date, which is why it’s no surprise California has the nation’s highest gas taxes. This means that it is highly unlikely Californians will ever see a downward trend in gas prices, now around $5 a gallon.
When it comes to July 1 gas tax increase, every year is Groundhog Day.
But enough is enough. A ballot initiative planned for the fall of 2024 — the Taxpayer Protection and Government Accountability Act (TPA) — would return authority to voters and closes the tax loopholes that special interests have exploited to raise taxes and fees on hardworking Californians.
Californians already endure some of the nation’s highest personal income, gas, and state sales taxes. As living costs continue to soar, many families and individuals feel the economic strain.
The TPA proposal requires all new taxes passed by Legislature must first be approved by voters, and:
Restores 2/3 voter approval for all new local special tax increases
Eliminates all “hidden taxes” by clearly defining what constitutes a tax or fee
Eliminates loopholes that have allowed unelected boards and commissions to pass “hidden taxes” without voter approval
Requires clear and concise descriptions of new tax proposals on the ballot
Requires clear identification of how tax revenue will be spent before enactment, ensuring revenue will not be diverted to other purposes
Ensures that tax rate and length of the new or higher tax will be listed on the ballot for voters to see
The TPA provides transparency and accountability and is a way to reclaim these longstanding protections instituted by past propositions.
California’s Proposition 13 is a landmark law passed by voters in 1978 to limit how much property taxes can increase for homeowners and is one of the few taxpayer protections that Californians have today.
In simple terms, Prop. 13 has continued to prevent the government from significantly raising property taxes based on the increased value of a property over time. California’s Prop. 13 limits property tax increases and provides predictability and stability for homeowners, helping them better manage their expenses. With this protection, homeowners can stay in their home even as property values rise.
One of TPA’s strengths is that it allows Californians the final decision on all state and local government taxes. It ensures that any new tax increases proposed by local governments, like cities or counties, must be approved by the people who live there before they can be implemented. Voters will also be given the right to see and approve how their tax money will be used while preventing local governments from increasing costs without voter approval. TPA also prevents unelected bureaucrats from unilaterally raising fees on Californians by requiring a vote from state and local elected leaders.
Lastly, it improves accountability and ensures that taxes collected for specific purposes are used as intended. These safeguards are solidified and strengthened by passing the TPA, which will offer welcome relief to millions of Californians struggling to make ends meet.
This story was originally published November 1, 2023 at 10:12 AM.