A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by amending Section 2 of Article XIII thereof, and by amending Section 1 of Article XIII B thereof, relating to public finance.

The California Constitution authorizes the Legislature to impose a property tax on any type of tangible personal property, shares of capital stock, evidences of indebtedness, and any interest therein not exempt from taxation pursuant to the California Constitution. The California Constitution authorizes the Legislature, by two-thirds vote of the membership of each house, to classify such personal property for differential taxation or for exemption. The California Constitution limits taxation of certain specified personal property to no more than 0.4% of the value of such property, and limits the tax rate on personal property to no more than the tax rate on real property in the same jurisdiction. This measure would authorize the Legislature to impose a tax upon all forms of personal property or wealth, whether tangible or intangible, and would require any tax so imposed to be administered and collected by the Franchise Tax Board and the Department of Justice, as determined by the Legislature in statute. The measure would authorize the Legislature to classify any form of personal property or wealth for differential taxation or for exemption by a majority vote. The California Constitution generally prohibits the total annual appropriations subject to limitation of the state and each local government from exceeding the appropriations limit of the entity of government for the prior fiscal year, adjusted for the change in the cost of living and the change in population, and prescribes procedures for making adjustments to the appropriations limit. This measure would remove the limitation on appropriations of the State and of local governments until such time as specified conditions are satisfied. The measure would provide that, upon satisfaction of these specified conditions, the level of appropriations made to achieve those conditions shall be set as the limitation on appropriations.