Pursuant to Elections Code Section 9005, we have reviewed the proposed initiative related to temporary tax increases (A.G. File No. 25-0037, Amendment #1).

Background

Initiatives Can Raise Taxes. An initiative is a way for voters to change state laws. This can include changing laws to raise taxes. People who want to raise taxes using an initiative first have voters sign a petition for the initiative. If enough voters sign the petition, the initiative is put up for a vote as a ballot proposition. More signatures must be collected for initiatives that change the State Constitution than those that change other laws. A statewide proposition passes if more than half of voters vote yes.

Proposal

Higher Standard for Temporary Taxes. The measure creates a higher standard for any statewide proposition that raises a tax that would be in place for three years or less. That kind of proposition either must collect enough signatures to change the Constitution or must receive yes votes from two-thirds of voters.

Fiscal Effect

Some Chance That State Revenues Will Be Lower in the Future. The measure would make short-term tax measures harder to pass. This has a chance of reducing future state revenues. When and by how much future revenues would be reduced is unclear.

Summary of Major Fiscal Effects. This measure would have the following major fiscal effects:

• Some chance that state revenues will be lower in the future.