MuniServices / Avenu: Things to Consider for the 2018 Ballot
MuniServices, an Avenu company, has published a memorandum outlining the major considerations that local jurisdictions should keep in mind when considering placing a local revenue measure on the ballot this year. The memo reviews legal and procedural requirements, examines the statutory 2% districtwide revenue cap, and the potential impacts the proposed Tax Fairness, Transparency and Accountability Act (TFTAA) of 2018 will have on local measures, if adopted.
Legal & Procedural Requirements: Special Counsel, Ben Fay, summarizes the basic requirements a city or county needs to observe prior to placing a measure on the ballot. This includes considering the legal differences between General and Special taxes, establishing the means by which the measure will qualify for the ballot, identifying and meeting all election deadlines and requirements, and abiding by laws pertaining to election advocacy. See pages 2 – 4.
Districtwide Revenue Cap: Another consideration raised is “What happens if there are ballot measures ‘competing’ for the 2% cap?” Page 7 addresses this issue. The CDTFA / BOE Special Notice from August 2016 recommends avoiding this scenario by making careful consideration of what other ballot measures are in place or are being proposed this election cycle before pursuing ballot placement. Also, the Special Notice states “If both a city and countywide tax are proposed on the same ballot, which together will cause the combined tax rate in the city to exceed 2.00%, the CDTFA/ BOE will be unable to administer the new taxes and would seek an opinion from the Office of the Attorney General to determine which tax to implement.”
Tax Fairness, Transparency & Accountability Act of 2018: The TFTAA continues to generate even more interest in local ballot measures and uncertainty as to whether interested parties should pursue them in 2018. MuniServices / Avenu stresses that local jurisdictions are under significantly more pressure because local tax measures passed in 2018 will be void unless they comply with the ballot requirements of the proposed TFTAA and obtained a 2/3 vote.
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Contact: Brenda Narayan, Director of Government Relations at MuniServices, an Avenu company
Ben Fay, Special Counsel