California Proposition 46, Authorize Local Tax Increases for Bond Repayment Amendment (June 1986)

California Proposition 46
Election date June 3, 1986
Topic Taxes
Status a Approved
Type Constitutional amendment	Origin State legislature

California Proposition 46 was on the ballot as a legislatively referred constitutional amendment in California on June 3, 1986. It was approved.

A "yes" vote supported amending the state constitution to add an exception to the 1% limit on ad valorem property taxes for bond repayment by local government and schools if the bonds were approved by a two-thirds supermajority of voters and the bonds were used exclusively to purchase or improve land and buildings.

A "no" vote opposed this amendment to allow an exception to the 1% ad valorem property tax limit, enacted in 1978, for bond repayment.

Election results

California Proposition 46
Result		Votes	Percentage
Yes		2,516,490	59.89%
No		1,685,186	40.11%

Results are officially certified.

Source

Text of measure

Ballot title

The ballot title for Proposition 46 was as follows:

“

Property Taxation. Legislative Constitutional Amendment.

”

Ballot summary

The ballot summary for this measure was:

“

Currently Constitution limits ad valorem property taxes to maximum of 1% of the property's full cash value. An exception to the 1% limit is provided for ad valorem taxes or special assessments to pay interest and redemption charges on indebtedness approved by the voters before July 1, 1978. This measure would provide a further exception to the 1% limit; it would be inapplicable to bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition.

”

Full Text

The full text of this measure is available here.

Fiscal impact

The fiscal estimate provided by the California Legislative Analyst's Office said:

“

By itself, this measure has no fiscal effect. The measure merely permits local voters to approve an increase in the property tax rate. No increase can occur in the property tax rate if this measure is adopted, unless two-thirds of those voting in a local election approve the issuance of general obligation bonds. If local voters approve the issuance of new general obligation bonds, state costs and revenues could be affected in two ways. First, state costs for tax relief programs could increase, because the cost of these programs rises as the local property tax rate increases. Second, state income tax revenues could decline as taxpayers deduct greater amounts for property tax payments on their state income tax returns.

”

Path to the ballot

See also: Signature requirements for ballot measures in California

A two-thirds vote was needed in each chamber of the California State Legislature to refer the constitutional amendment to the ballot for voter consideration.

See also

1986 Measures

• 1986 Measures
• Taxes on the ballot
• 1986 legislative sessions

California

• California ballot measures
• California ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• California Voter Guide (June 1986)