Legislative Update: New Taxpayer Protection Measure Headed to California Voters

California voters will have the opportunity this November to decide on a constitutional amendment that could significantly impact how future local special taxes are approved throughout the state.

Following negotiations among Governor Gavin Newsom, legislative leaders, labor representatives, and the Howard Jarvis Taxpayers Association, a new measure has been placed on the November ballot to replace the original Local Taxpayer Protection Act (LTPA). The California Business Properties Association (CBPA) and a coalition of industry partners have expressed support for the agreement and are encouraging continued support from the commercial real estate community.

If approved by voters, the measure would restore the requirement that all future local special taxes, including those proposed through citizen initiatives, receive two-thirds voter approval before taking effect. Supporters say this would close the so-called "Upland loophole," which has allowed certain local tax measures to be approved by a simple majority vote rather than the traditional two-thirds threshold.

The proposed amendment would also prohibit local ad valorem real property taxes except where specifically authorized by the California Constitution. In addition, the agreement removes ACA 13 from the November ballot, a previously approved measure that would have altered the process for constitutional amendments related to voter approval requirements.

Supporters believe the measure would provide greater certainty and predictability for property owners, businesses, investors, and local communities by establishing a consistent standard for future tax proposals. Industry leaders have noted that this change could help prevent additional transfer tax measures similar to those adopted in cities such as Los Angeles through Measure ULA.

While the proposal would not affect existing transfer taxes already approved under the current legal framework, industry organizations have indicated they will continue exploring solutions to address those measures separately.

The agreement has been widely recognized as a collaborative effort among state leaders, taxpayer advocates, labor representatives, and business organizations. Supporters view the measure as an important step toward balancing local revenue needs with long-term economic stability and investment across California.

As the November election approaches, stakeholders throughout the commercial real estate industry are encouraged to stay informed about the measure and its potential implications for property owners, businesses, and future development throughout the state.