Most FR readers probably are not familiar with what is called the "Sinclair Paint" decision — and it would take an entire column to go into all of the details.  But suffice it to say that this court ruling smashed a big hole in the taxpayer protections of Proposition 13, saying that unlike general tax increases that require a 2/3rds vote of the legislature, raising taxes for a specific program where there is some (often dubious) nexus between the tax and the program is no longer called raising taxes, it is called a "fee" — and requires only a majority vote. 

For example — hypothetically — a tax of $.25 on every plastic bag in a grocery store that is sold, which then goes into "public education" about how plastic bags can damage the environment would be sold as a "fee" requiring a majority vote.

Over the years, this egregious "loophole" has been used raise vast amounts of taxes (disguised as fees) on the people of California.

The campaign to Stop Hidden Taxes today has turned in the signatures necessary to place an initiative on the November ballot that would close the loophole, and make it clear that a tax is not a fee, a tax is a tax — and reassert the 2/3rd requirement over all tax increases.

This is the second "good" initiatives in so many weeks to turn in more than enough signatures to likely qualify for the November ballot.  Last week the Jobs Initiative to suspend the draconian AB32 regulations until the economy in California has recovered turned in their signatures.

(h/t to the SacBee Capitol Alert)

This entry was posted on Friday, May 7th, 2010 at 12:00 am and is filed under Blog Posts.