1.7.7 Proposition 26 (2010) Supermajority Vote To Pass New Taxes And Fees Act Or The Stop Hidden Taxes Initiative

1.7.7 Proposition 26 (2010) Supermajority Vote To Pass New Taxes And Fees Act Or The Stop Hidden Taxes Initiative

PURPOSE OF INITIATIVE – Proposition 26 addressed the perceived problem caused by the levy of “taxes” hidden as regulatory fees and assessed without voter approval.

PRINCIPAL PROVISIONS – The proposition amended Article XIIIC to define “tax” as “any levy, charge, or exaction of any kind imposed by a local government” not falling within one of the enumerated exceptions provided by Proposition 26. It also limited the ability of public agencies to use electricity and gas fees to recover the cost of providing service. 

PRINCIPAL IMPACT – Proposition 26 restricted the ability of local governments to make up for the differences between recoverable costs and the full social and environmental costs of providing municipal services.