Posted by Jon Fleischman at 12:00 am on May 07, 2010 1 Comment
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… Read More