California Proposition 87, Property Tax Revenue Increases to Redevelopment Agencies Amendment (1988)

California Proposition 87
Election date November 8, 1988
Topic Taxes
Status a Approved
Type Constitutional amendment	Origin State legislature

California Proposition 87 was on the ballot as a legislatively referred constitutional amendment in California on November 8, 1988. It was approved.

A "yes" vote supported amending the California Constitution to authorize the state legislature to require redevelopment agencies to use increased property tax revenue resulting from property tax increases to pay off bonded indebtedness.

A "no" vote opposed amending the California Constitution, thereby maintaining that redevelopment agencies are not required to use increased tax revenue to pay off bonded indebtedness.

Election results

California Proposition 87
Result		Votes	Percentage
Yes		5,840,297	67.87%
No		2,764,559	32.13%

Results are officially certified.

Source

Text of measure

Ballot title

The ballot title for Proposition 87 was as follows:

“

Property Tax Revenues. Redevelopment Agencies.

”

Ballot summary

The ballot summary for this measure was:

“

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.

”

Full Text

The full text of this measure is available here.

Fiscal impact

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

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.

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
Chamber	Ayes	Noes
Assembly	72	0
Senate	33	0

See also

1988 Measures

• 1988 Measures
• Taxes on the ballot
• 1988 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 (November 1988)