Understanding Proposition 218

Palm Springs Municipal Governance attorneys work towards making progress in local government. The local government’s ability to raise property taxes was restrained nearly twenty years ago by proposition 13. It also stated that “special taxes” needed to be approved by two thirds of the voters. Proposition 218 will make several changes in local finance and government.

What does Proposition 218 do?

It focuses on using local revenue tools like property fees and business taxes. Overall, proposition 218 wishes to lessen the abuse of property related fees and assessments and to make sure that taxes on property owners are subject to approval by voters.

The Proposition covers many subjects such as: local initiative, election procedures, and legal standards of proof. The uncertainty among analysts should subside upon court rulings when available or when legislature implements the statutes.

Generally, most of the local revenues will not be affected because Proposition 218 is only applicable to a small section of local revenues. Local government raises money from assessment, taxes, and fees and Proposition 218 will not affect the majority of this money in any way.

It is estimated that, since most of these sources will not be affected, that Proposition 218 will not cause over a 5 percent decrease in local government revenues. Overall, Proposition 218 proposes important changes to local finances in the government and specifies where the revenues will be used.