By: @Kyle Packham
On Monday, March 9, California’s Secretary of State confirmed receipt of 1,345,470 “raw count” signatures from county elections officials for Initiative 1983 (25-0006A1): LIMITS ABILITY OF VOTERS TO RAISE REVENUES FOR LOCAL GOVERNMENT SERVICES. INITIATIVE CONSTITUTIONAL AMENDMENT.
Proponents of Initiative 1983 (25-0006A1) submitted petition signatures February 25 with the intent to qualify the measure for the November 3, 2026 statewide ballot. County elections officials had eight business days from the date the petition was filed with their office to submit a raw count of signatures to the Secretary of State.
The proposed state constitutional amendment would increase the voter approval threshold on special taxes proposed by voter initiative from a simple majority (over 50 percent) to a two-thirds super-majority. If approved, the initiative would overturn the California Supreme Court’s 2017 decision in California Cannabis Coalition v. City of Upland, which established that special taxes placed on the ballot by voter-initiative may be approved by a simple majority vote, unlike special taxes put forward by a government body.
The initiative would also eliminate the ability of charter cities to impose their own real estate transfer taxes above the statutory rate of 27.5 cents per $500 in property value. This restriction would apply to transfer taxes used for both general revenue purposes and those earmarked for specific programs. Under the measure, charter cities would also be barred from adopting any new charter city-specific transfer taxes in the future.
Under the terms of the initiative, all existing property-related special taxes that have been approved by less than two-thirds of voters as well as non-compliant real-estate transfer taxes would automatically expire two years after the measure takes effect (on December 31 of 2028). Special taxes could be re-adopted only with two-thirds voter approval. Charter cities would remain prohibited from re-establishing charter-specific transfer taxes.
CSDA's Board of Directors approved an oppose position on Initiative 1983 (25-0006A1) at its October 22, 2025 meeting.
Local Government Revenue and Fiscal Outlook
Initiative 1983 (25-0006A1) is expected to cause a significant reduction in local government revenue—potentially totaling several billion dollars each year. Most of this loss would come from eliminating transfer taxes that are unique to charter cities. In addition, cities, counties, special districts, and school districts together could lose an estimated $300 million annually from parcel and other property-related taxes that were previously approved by less than a two-thirds vote and would become invalid under the measure.
Based on research to date, CSDA has identified one independent special district with a property-related special tax approved by a simple majority: Crocket Community Services District (Contra Costa County). In 2022, citizens of Crocket CSD put forward Measure L by way of a voter initiative and then approved it by 62.78 percent of the vote. Measure L generates about $63,000 a year and funds the entirety of Crocket CSD’s budget for lighting and landscape maintenance, which is a required governmental function for the agency.
Also noteworthy, in 2018 citizens in Del Norte County put forward Measure C by voter initiative to raise the local hotel tax from 8 percent to 10 percent to fund debt repayment for the USDA disaster loan issued following the 2006 and 2011 tsunamis and to fund further harbor repairs for the Crescent City Harbor District. This measure passed with 54.69 percent of the vote and withstood multiple lawsuits concerning the majority vote requirement for citizen initiatives proposing special taxes.
It appears the initiative would preclude majority vote approval of special taxes like Measure C of Del Norte County (2018) prospectively. However, unlike Measure L of Contra Costa County (2022), Measure C is not property-related and thus would likely avoid the retroactive invalidation provision of the initiative
In addition to these independent special districts, Initiative 1983 (25-0006A1) could impose major impacts on dependent special districts and other local governments, such as the Los Angeles County Fire Protection District, which stands to lose $152 million per year in funding approved by 55 percent of voters in November 2024, just weeks before the devastating January 2025 Los Angels Wildfires. Measure E, an annual parcel tax of $0.06 per square foot of certain parcel improvements, would be retroactively invalidated by Initiative 1983 (25-0006A1) because the local citizens’ initiative passed by a simple majority rather than two-thirds super-majority.
Over time, under Initiative 1983 (25-0006A1), local government revenues across California could further decline because the measure would make it more difficult to adopt or increase taxes. The exact fiscal impact would vary depending on local voter actions and future policy decisions.
ACA 13 Implications
It is worth noting that ACA 13 (Ward) of 2023, known as the Protect and Retain the Majority Vote Act, is currently qualified for California’s November 2026 statewide ballot and could affect the vote threshold of Initiative 1983 (25-0006A1). ACA 13, if passed by voters, would require that any initiative that seeks to increase the vote threshold on voters must pass by the same threshold to which it seeks to impose on others.
ACA 13 is written to take effect immediately, starting with any initiatives on the ballot for the election in which it is approved. Therefore, if ACA 13 passes, Initiative 1983 (25-0006A1) would itself be required to pass by the same two-thirds vote threshold it is attempting to establish for all special taxes.
Support and Opposition
Proponents of Initiative 1983 (25-0006A1) include the California Business Roundtable, California Business Properties Association, Howard Jarvis Taxpayers Association, and California Taxpayers Association. Opposition is anticipated from local governments, organized labor, and community organizations, among others.
Timeline
The California Secretary of State will notify county elections officials to conduct a random sample verification of the signatures in order to confirm 874,641 valid signatures from registered voters (equivalent to eight percent of the total votes cast for Governor in the most recent gubernatorial election).
June 18, 2026 is the last day for county elections officials to verify and certify results of the random sampling of signatures to the Secretary of State. June 25, 2026 (E-131) is the last day for the Secretary of State to determine that the measure qualifies for the ballot.
#AdvocacyNews
#FeatureNews
#Revenue
#Governance