Proposition 26 – Auto Club Urges a Yes Vote

Proposition 26 - Requires That Certain State And Local Fees Be Approved By Two-Thirds Vote Including Those That Address Adverse Impacts On Society Or The Environment Caused By The Fee-Payer’s Business

Proposition 26 would clarify the definition of taxes and fees-an important distinction, because there are different legislative and voting hurdles for enacting or increasing taxes and fees. In general, fees are imposed for specific reasons-a building permit, for example.

That’s not true of taxes-for example, sales or income taxes that go to the General Fund to pay for police and fire services or for education. Fees can be approved by a simple majority of legislators or voters, but most taxes must be approved by a two-thirds vote. Given California’s perennial budget problems, it’s no surprise that some taxes are deliberately mislabeled as fees to make them easier to approve.

In an attempt to stop this practice, Proposition 26 would amend the state constitution to make the definition of a fee more precise.

The proposition is sponsored by the California Chamber of Commerce, the California Taxpayers’ Association, and a broad coalition of businesses, taxpayers, and employers. Supporters say that the measure closes loopholes that allow “hidden taxes” to be improperly approved.

Proposition 26 is opposed by public employee unions. Arguments against Proposition 26 were signed by representatives of the Sierra Club, the League of Women Voters of California, and the American Lung Association. Opponents argue that the measure is an attempt by businesses-primarily oil, tobacco and alcohol companies-to avoid taxes and fees for environmental protection and public health.

The Auto Club supports Proposition 26 to stop the deceptive practice of calling a tax a fee in an attempt to avoid the vote requirements for taxes. Motorists have been targeted with numerous fee increases in recent years, including a scheme attempted last year to eliminate the tax on gasoline, replace it with a similar gas “fee,” and then use the remaining “taxing authority” to increase other taxes.

For more information on Proposition 26, please see the following links:

To review the “Quick Reference Guide” prepared by the Secretary of State, including the full text of Proposition 26, click here - http://voterguide.sos.ca.gov/propositions/26/

For a summary and analysis of Proposition 26 from the Secretary of State’s Official Voter Information Guide, click here - http://www.voterguide.sos.ca.gov/pdf/english/26-title-summ-analysis.pdf

To review the pro and con arguments and rebuttals from the Secretary of State’s Official Voter Information Guide, click here - http://www.voterguide.sos.ca.gov/pdf/english/26-arg-rebuttals.pdf

For more information from the Yes on 26 campaign, click here - http://www.no25yes26.com/learn-more/yes-on-proposition-26/

For more information from the No on 26 campaign, click here - http://www.stoppolluterprotection.com