1.4.4 Ad Valorem Real Property Taxes Securing Voter-Approved Obligations
Ad valorem taxes assessed against property may exceed the 1% limitation described above if the proceeds of the taxes are to be used to pay the following:
- Obligations approved by voters before July 1, 1978 (Pre Proposition 13 Obligations, see Section 1.4.4.1);
- General obligation bonds approved in accordance with the provisions of California Constitution Article XIIIA, Section 1(b)(2) (See Section 1.4.4.2, Proposition 46 General Obligation Bonds); or
- General obligation bonds approved in accordance with the provisions of California Constitution, Article XIIIA, Section 1(b)(3) (See Section 1.4.4.3, Proposition 39 General Obligation Bonds).51
Voter approved general obligation bonds are paid from a revenue source (unlimited ad valorem real property taxes in excess of 1% of full cash value limit) that is not otherwise available to the issuer. Although property tax obligations increase the overall burden on the issuer’s constituents, general obligation bond debt service payment obligations do not increase the amount payable from the issuer’s general revenues.