1.7.3 Proposition 46 (1986)

1.7.3 Proposition 46 (1986)

PURPOSE OF INITIATIVE – By allowing increases to local taxes for bond repayment, Proposition 46 addressed the perceived problem caused by Proposition 13’s effective preclusion of new property tax supported debt.

PRINCIPAL PROVISIONS – Proposition 46 allowed, with two-thirds voter approval, the issuance of general obligation bonds to finance the acquisition of and improvements to real property.

PRINCIPAL IMPACT – Proposition 46 restored general obligation bonds as a financing vehicle, especially for school districts.