Property Taxation

PROPERTY TAXATION. INITIATIVE CONSTITUTIONAL AMENDMENT. Limits maximum ad valorem tax on real property to 1% of full cash value. Prohibits special assessments on real property. Permits real property tax to be imposed only by state or counties as Legislature determines. Provides all real property is subject to taxation unless exempted. Eliminates existing exemptions. Provides for creation of specified new exemptions by two-thirds vote of Legislature. Specifies assessment practices and procedures. Provides Legislature may apportion real property tax and increase other taxes or provide subventions to compensate local governments for revenues lost from tax limitations. Specifies priority for school districts. If the proposed initiative is adopted, undefined additional financing from state sources will be required in the following approximate amounts. The initial impact would be a three hundred million dollar ($300,000,000) increase in state cost from state property being subject to local property taxation, offset by a two hundred seventy million dollar ($270,000,000) reduction in state cost from the elimination of a homeowners\u27 property tax exemption, for a net increase in state costs of thirty million dollars ($30,000,000)