Stop hidden taxes! That was the clear and compelling message
that California voters sent to lawmakers with passage of Proposition 26 in
November. This measure was designed to halt the practice of governments imposing
new taxes without the constitutionally required vote, by falsely labeling them
as "fees," "surcharges," and with other deceptive names.
Under Proposition 26, all proposed new charges by state and
local governments must undergo a tax test to determine if they are legitimate fees
that require only a majority vote of the Legislature or approval of a local
government body for implementation, or are actually taxes that require a
two-thirds vote of the Legislature or a vote of the people at the local level.
Proposition 26 establishes five criteria for this tax test.
For example, if a charge benefits those who don’t pay for it, it is a tax.