California Proposition 11, Rules Governing Local Sales and Use Taxes (1998)
California Proposition 11 was on the November 3, 1998 election ballot in California as a legislatively-referred constitutional amendment voted onto the ballot as a proposed constitutional amendment by the California State Legislature as ACA 10. Prop 11 changed the way that municipalities could implement their sales tax revenue-sharing contracts.
Proposition 11 was approved.
- Yes: 3,898,165 (53.34%)
- No: 3,409,761 (46.66%)
What Prop 11 did
At the time that Prop 11 was approved in 1998, the California Constitution allowed counties and cities to enter into contracts to share their sales tax revenues from the so-called Bradley-Burns sales tax rate and from other add-on sales taxes as long as a majority of voters in each affected jurisdiction agreed to the revenue-sharing contract.
- In 1997-98, Californians paid $29 billion in sales tax.
- The state sales tax rate was 6%.
- There was a uniform local rate of 1.25%. This uniform local rate is known as the Bradley-Burns rate.
- Municipalities had optional local "add-on" rates.
- The minimum sales tax rate in any jurisdiction was 7.25%.
Proposition 11 authorized local governments to enter into revenue-sharing agreements if that agreement was approved by a two-thirds vote of each affected jurisdiction's governing body, rather than by a majority vote of the voters in the affected jurisdictions.
The ballot summary that appeared on the ballot said:
- "This measure would authorize local governments to voluntarily enter into sales tax revenue sharing agreements by a two-thirds vote of the local city council or board of supervisors of each participating jurisdiction."
- Official California Voter Guide to Proposition 11
- Smart Voter on Proposition 11
- Full text of measure
- November 3 California proposition election results (Scroll to page 12.)