California Proposition 87, Redevelopment Agencies and Property Tax Revenues (1988)
Proposition 87 authorized the California State Legislature to prohibit redevelopment agencies from receiving any of the property tax revenue raised by increased property tax rates imposed by local governments to make payments on their bonds, and was relevant to tax rates levied to finance bonds approved by the voters on or after January 1, 1989.
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Text of measure
The ballot title was:
The official summary said:
- "Presently, if a taxing agency increases the tax rate for revenue to repay its bonded indebtedness for the acquisition or improvement of real property, a portion of the revenues raised for this purpose is allocated to redevelopment agencies having property affected by the rate increase. The revenues received by the redevelopment agency don't have to be applied to repayment of the bonded indebtedness. This measure authorizes the Legislature to require all revenues produced by the rate increase go to the taxing agency for purpose of the repayment of its bonded indebtedness."
- See also: Fiscal impact statement
The fiscal estimate provided by the California Legislative Analyst's Office said:
- "By itself, this measure has no fiscal effect because it merely authorizes the Legislature to implement its provisions."
- "If the Legislature implements this measure, there would be no significant effect on state costs or revenues. However, the measure could reduce the amount of property tax revenues received by redevelopment agencies in 1989-90 and later years. Specifically, redevelopment agencies would no longer receive an increase in their property tax revenues whenever a local agency's voters approve certain general obligation bond measures. The size of this revenue reduction would depend on the number and value of these general obligation bonds approved by the voters in future years."
- "The measure would have no effect on the amount of revenues received by local governments that impose increased property taxes to pay off their general obligation bonds.."
Path to the ballot
The California State Legislature voted to put Proposition 87 on the ballot via Assembly Constitutional Amendment 56 (Statutes of 1988, Resolution Chapter 54).
|Votes in legislature to refer to ballot|
- PDF of the November 8, 1988 ballot proposition voter guide
- California Law Library, November 8, 1988 ballot propositions
- Hastings California I&R database