Taxation. Real Property. Property Acquisition by Taxing Entity

TAXATION. REAL PROPERTY. PROPERTY ACQUISITION BY TAXING ENTITY. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Article XIII A places a limitation on ad valorem taxes on real property. The adoption of this amendment would permit an increase in such taxes or special assessments to pay for interest and redemption charges on an indebtedness, approved by two-thirds of the voters, for the acquisition or improvement by the taxing entity of real property and tangible personal property necessary for its use. Also authorizes an increase in such taxes or special assessments to be used in connection with refunding previously approved indebtedness issued in accordance with law. Fiscal impact on state and local governments: To extent new indebtedness is created, ad valorem property taxes on real property could rise. A rise in property taxes could increase state costs for reimbursements to local entities. For other possible fiscal impacts see analysis by Legislative Analyst in Ballot Pamphlet