California Article XIII C: Voter approval for local taxes (Proposition 218)
On this page (7 sections)
If Williams calls something a "fee" but it's really a tax, Article XIII C requires a vote. The city carries the burden of proving it isn't a tax Verified1.
Key takeaways
- Every local tax is "either general taxes or special taxes" (§2(a)).
- General tax: majority vote, at a regular council election unless there's a unanimous emergency declaration (§2(b)). Special tax: two-thirds (§2(d)).
- "Tax" means "any levy, charge, or exaction of any kind imposed by a local government," minus seven exceptions (§1(e)).
- Fines and penalties for violating the law are one exception (§1(e)(5)).
- Voters may always use the initiative to reduce or repeal local taxes, fees and charges (§3).
Section 1: Definitions
Definitions. As used in this article:
(a) “General tax” means any tax imposed for general governmental purposes.
(b) “Local government” means any county, city, city and county, including a charter city or county, any special district, or any other local or regional governmental entity.
(c) “Special district” means an agency of the State, formed pursuant to general law or a special act, for the local performance of governmental or proprietary functions with limited geographic boundaries including, but not limited to, school districts and redevelopment agencies.
(d) “Special tax” means any tax imposed for specific purposes, including a tax imposed for specific purposes, which is placed into a general fund.
(e) As used in this article, “tax” means any levy, charge, or exaction of any kind imposed by a local government, except the following:
(1) A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.
(2) A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.
(3) A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.
(4) A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.
(5) A fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law.
(6) A charge imposed as a condition of property development.
(7) Assessments and property-related fees imposed in accordance with the provisions of Article XIII D.
The local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, * New Article XIII C adopted November 5, 1996. Initiative measure.
or benefits received from, the governmental activity. [As amended November 2, 2010. Initiative measure.]
Source: California Constitution as published by the California State Senate (current through November 5, 2024) Verified1
What counts as a tax
| Exception (§1(e)) | Plain meaning | Williams example (our reading) |
|---|---|---|
| (1) Specific benefit or privilege | Charge for something only the payer gets, at cost | A special-event permit |
| (2) Specific service or product | Charge for a service only the payer gets, at cost | A copy or document fee |
| (3) Regulatory costs | Cost of licenses, permits, inspections, enforcement | Building permit or inspection fees |
| (4) Use of government property | Entrance, rental, lease or purchase | Park facility rental |
| (5) Fines and penalties | "A fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law" | Administrative citations |
| (6) Development conditions | "A charge imposed as a condition of property development" | Impact fees (also under the Mitigation Fee Act) |
| (7) XIII D charges | Assessments and property-related fees under Article XIII D | Water, sewer, refuse charges |
The burden is on the city. "The local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity," and that costs are allocated fairly Verified1.
Before 2010. Sinclair Paint (1997) upheld state charges as "bona fide regulatory fees, not taxes, because the Legislature imposed the fees to mitigate the actual or anticipated adverse effects of the fee payers' operations" (Sinclair Paint Co. v. State Bd. of Equalization (1997) 15 Cal.4th 866) Verified3. The 2010 amendment to §1 wrote a stricter, enumerated test into the constitution Verified1.
Section 2: The votes
Local Government Tax Limitation. Notwithstanding any other provision of this Constitution:
(a) All taxes imposed by any local government shall be deemed to be either general taxes or special taxes. Special purpose districts or agencies, including school districts, shall have no power to levy general taxes.
(b) No local government may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A general tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. The election required by this subdivision shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body.
(c) Any general tax imposed, extended, or increased, without voter approval, by any local government on or after January 1, 1995, and prior to the effective date of this article, shall continue to be imposed only if approved by a majority vote of the voters voting in an election on the issue of the imposition, which election shall be held within two years of the effective date of this article and in compliance with subdivision (b).
(d) No local government may impose, extend, or increase any special tax unless and until that tax is submitted to the electorate and approved by a two-thirds vote. A special tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. [New section adopted November 5, 1996. Initiative measure.]
Source: California Constitution as published by the California State Senate (current through November 5, 2024) Verified1
- General vs. special. "'General tax' means any tax imposed for general governmental purposes"; a "'Special tax' means any tax imposed for specific purposes, including a tax imposed for specific purposes, which is placed into a general fund" (§1(a), (d)) Verified1.
- Majority. "No local government may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote" (§2(b)) Verified1.
- Two-thirds. Special taxes need "a two-thirds vote" (§2(d)) Verified1.
- Citizen initiatives. In California Cannabis Coalition v. City of Upland (2017), the Court held that "the requirement in article XIII C, section 2, subdivision (b) — mandating that general taxes be submitted to the voters at a regularly scheduled general election — applies only to local governments and not to the electorate's initiative power" (California Cannabis Coalition v. City of Upland (2017) 3 Cal.5th 924) Verified4. It decided election timing, not whether a citizen-proposed special tax needs two-thirds; we haven't verified the later cases on that question Unverified5.
Section 3: Initiative to cut taxes and fees
Initiative Power for Local Taxes, Assessments, Fees and Charges. Notwithstanding any other provision of this Constitution, including, but not limited to, Sections 8 and 9 of Article II, the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge. The power of initiative to affect local taxes, assessments, fees and charges shall be applicable to all local governments and neither the Legislature nor any local government charter shall impose a signature requirement higher than that applicable to statewide statutory initiatives. [New section adopted November 5, 1996. Initiative measure.]
Source: California Constitution as published by the California State Senate (current through November 5, 2024) Verified1
The Supreme Court held this "expressly authorizes initiative measures like Kelley's insofar as they seek to reduce or repeal a public agency's water rates and other water delivery charges," but voters "did not intend to authorize initiative measures imposing voter-approval requirements on future water delivery charge increases" (Bighorn-Desert View Water Agency v. Verjil, 2006) Verified6.
In Williams
- A new city tax goes to voters: majority if general, two-thirds if special Verified1.
- A "fee" that funds general services may be a tax. Ask the city for the cost study; the city bears the burden Verified1. See Williams: fees.
- Fines under the WMC are excluded from "tax" (§1(e)(5)), but they're still limited by the Excessive Fines Clauses Verified17. See Williams: fines.
- Repeal by initiative. Residents can propose cutting a local fee or tax, and the signature requirement can't exceed the statewide statutory level (§3) Verified1.
Common misconceptions
- "Calling it a fee avoids a vote." Not if it fails every §1(e) exception Verified1.
- "Fines are taxes." No, if imposed "as a result of a violation of law" (§1(e)(5)) Verified1.
Check yourself
Pick an answer for each question. You will see right away if it is right, and why.
Show the answer and why
A majority of voters (§2(b)) Verified1.
Show the answer and why
The local government, by a preponderance of the evidence (§1(e)) Verified1.
Show the answer and why
Any three of: specific benefit, specific service, regulatory costs, use of government property, fines and penalties, development conditions, XIII D charges (§1(e)) Verified1.
Show the answer and why
Yes (Bighorn), though not to impose voter approval on future increases Verified6.
Show the answer and why
Answer: A general tax needs a majority vote of the voters, not just the council.
Under Article XIII C, a local general tax needs a majority of voters, at a regular council election unless there's a unanimous emergency declaration (§2(b)).
From this lesson: “General tax: majority vote, at a regular council election unless there's a unanimous emergency declaration (§2(b)).”
Sources cited on this page
- Constitutions of California and the United States, 2025-26 edition (PDF) California Constitution as last amended November 5, 2024. ↗
- Government Code §66001 (Mitigation Fee Act: nexus findings for fees) Unofficial copy of the statute, read directly. Confirm on leginfo before relying on it. ↗
- Sinclair Paint Co. v. State Bd. of Equalization (1997) 15 Cal.4th 866 Full opinion text read in the Caselaw Access Project copy. Quotes on this site were machine-checked against that text. ↗
- California Cannabis Coalition v. City of Upland (2017) 3 Cal.5th 924 Opinion text read directly (slip opinion or free copy, not the bound official reporter). Confirm before relying on it. ↗
- Citizen research notes behind this site (Oct 16, 2026) Volunteer research notes (October 16-17, 2026), not published. Anything cited only to these notes is labeled Unverified. The link points to the City site because the notes have no public URL. ↗
- Bighorn-Desert View Water Agency v. Verjil (2006) 39 Cal.4th 205 Opinion text read on a free copy, not the official reporter. Confirm before relying on it. ↗
- People ex rel. Lockyer v. R.J. Reynolds Tobacco Co. (2005) 37 Cal.4th 707 Copy of the opinion posted by the Attorney General's office. ↗
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