California Voters Face Billions in Proposed Tax Hikes

California voters will decide on 14 statewide measures and 273 local tax and bond initiatives on the November 3 ballot. According to the California Taxpayers Association, these local measures could generate $3 billion in annual direct taxes and authorize $19.5 billion in bonds. The most significant local proposal seeks nearly $1 billion annually in sales tax increases to fund public transit in San Francisco and four other counties.

Critics and regulators have raised concerns over the manipulation of ballot language and the illegal use of taxpayer funds for advocacy. The California Fair Political Practices Commission is currently investigating local agencies for using public funds to promote measures under the guise of providing information.

In a specific case regarding a $225 million bond issue, the Court of Appeal of California upheld a ruling that the Hemet Unified School District misled voters. The court found that the phrase "no-tax-rate-increase" erroneously suggested to voters that their tax burden would not rise. The court ordered the district to replace the term with "rate-extension" to ensure the ballot language is accurate and neutral.