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HomeMy WebLinkAbout1993-10-12 - AGENDA REPORTS - STSTE ELECTIONS (2)0 AGENDA REPORT CONSENT CALENDAR DATE: October 12, 1993 SUBJECT: State Elections - Proposition 172 DEPARTMENT: City Manager BACKGROUND City Manager Approve Item to be presented Michael P. Murphy On November 2,1993, the State of California will hold a special statewide election. Proposition 172 on the ballot Is entitled the Local Public Safety Protection and Improvement Act of 1993. This measure would provide a revenue source for certain cities and counties by extending the current state tax rate and earmarking the revenue for public safety purposes Including police, sheriff, fire, district attorney and corrections services. If passed, by a majority of voters, a permanent one-half percent state sales tax will be enacted, effective January 1, 1994. Thls'wlil extend a temporary one-half percent tax slated to expire at the end of the year. As a result, the state's portion of the sales tax rate would remain at its current 6 percent level. This measure would require that the revenues generated from the additional one-half percent sales tax be used only for local public safety activities. This measure would generate approximately $1.5 billion In revenue, offsetting, on a permanent basis, about 65 percent of the statewide property tax loss to counties and cities resulting from the 1993 state budget actions. The state's 1993194 budget assumes passage of Proposition 172. Failure to pass the sales tax extension will require the Legislature to reallocate funds potentially resulting in a loss of unknown amount to the City of Santa Clarita. Proponents of Proposition 172 argue that local. governments cannot afford to lose these funds. They estimate that If defeated, local public services would see fewer police and sheriff patrols, fire station closings and numerous jail closings. They further argue that cuts In public safety funding would result in higher crime rates and slower reaction time for emergency vehicles statewide. Opponents say that the state government needs to restructure Its spending priorities rather than raise new taxes. Those against Proposition 172 assert that the millions of dollars spent on Illegal aliens should be cut rather than raising taxes for essential public services. Opponents also argue that Proposition 172 does not sufficiently guarantee that the new funds_ will be spent on public_ safety services as presently defined. RECOMMENDATION a I PROWE�Support Proposition 172. D X- 6) Agenda Item: NPMyrop1721dd �C��,V; _ _ Proposition 172: Text of Proposed Law This amendment proposed by Senate Constitutional Amendment 1 (Statutes of 1993, Resolution Chapter 41) expressly amends the Constitution by adding a section thereto; therefore, new provisions proposed to be added are printed in italic'type to indicate that they are new. HROPOSF„D AMENDMENT TO ART;f L&$JZi SEC. 35. (a) The people of the State of California find and declare all of the following: (1) Public safety services are critically important to the security and well-being of the State's citizens and to the growth and revitalization of the State's economic base. (2) The protection of the public safety is the first responsibility of local government and local officials have an obligation to give priority to the provision of adequate public safety services. (3) In order to assist local government in maintaining a sufficient level of public safety services, the proceeds of the tax enacted pursuant to this section shall be designated exclusively for public safety. (b) In addition to any sales and use taxes imposed by the Legislature, the following sales and use taxes are hereby imposed: (1) For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all allocated for use exclusively for public safety services of local agencies. (e) Revenues derived from the taxes imposed pursuant to subdivision (b) shall not be considered proceeds of taxes for purposes of Article XIII B or state General Fund retailers at the rate of 112 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in this State on and after January 1, 1994. (2) An excise tax is hereby imposed on the storage, use, or other consumption in this.state of tangible personal property purchased from any retailer on and after January 1, 1994, for storage, use, or other consumption in this State at the rate of 1/2 percent of the sales price of the property. (c) The Sales and Use Tax Law, including any amendments made thereto on or after the effective date of this section, shall be applicable to the taxes imposed by subdivision (b). (d) (1) All revenues, less refunds, derived from the taxes imposed pursuant to subdivision (b) .shall be transferred to the Local Public Safety Fund for allocation by the Legislature, as prescribed by statute, to counties in which either of the following occurs: (A) The board of supervisors, by a majority cote of its membership, requests an allocation from the Local Public Safety Fund in a manner prescribed by statute. (B) A majority of the county's voters voting thereon approve the addition of this section. (2) Moneys in the Local Public Safety Fund .shall be proceeds of taxes within the meaning of Article XVI. (f) Except for the provisions of Section 34, this section shall supersede any other provisions of this Constitution that are in conflict with the provisions of this section, including, but not limited to, Section 9 of Article II.