In a major win for California cities, The State Supreme Court ruled unanimously Thursday that an anti-tax measure known as the Taxpayer Protection and Government Accountability Act cannot appear on the November ballot. The initiative would have made it more difficult for the state and municipalities to raise taxes or fees.
The court agreed with the state's argument that the ballot measure constituted a revision of the State Constitution.
"It is within the people's prerogative to make these changes, but they must be undertaken in a manner commensurate with their gravity: through the process for revision set forth in article XVIII of the Constitution," the court said.
The measure was spearheaded by the California Business Roundtable and had garnered enough valid signatures from registered voters to appear on the ballot this fall. It would have required voter approval for almost any increase in state or local taxes and fees. It would have also changed the threshold for local tax initiatives introduced by citizens from a simple majority to a two-thirds vote. The provisions would have been retroactive to Jan. 1, 2022, meaning any tax increases since then that did not meet the measure’s requirements would be void.
At least 246 cities passed resolutions opposing the measure in recent months, with opponents calling it "an existential threat" to government operations.
In a statement, Cal Cities CEO Carolyn Coleman said the following:
"No amount of funding from wealthy corporations will change the fact that the California Supreme Court decided the Taxpayer Deception Act is unconstitutional. It’s great news for cities and their residents that this dangerous initiative will not move forward this year, and local officials can now keep their focus on delivering vital local services."
Read the Court's opinion here.