California Constitution Article XIII D - Assessment and Property-Related Fee Reform [Sections 1 - 6]
California Constitution – Article XIII D: Assessment and Property-Related Fee Reform
[Sections 1 – 6]
Overview:
Article XIII D was added by Proposition 218 (1996), also known as the "Right to Vote on Taxes Act", to limit local governments’ ability to impose assessments, fees, and charges related to property without property owner approval. It works in conjunction with Article XIII C to protect taxpayers from excessive or unfair charges.
Section-by-Section Breakdown:
§1. Findings and Declarations
Affirms the intent of the people to:
Limit local government authority to impose or increase assessments and property-related fees.
Ensure that charges reflect the cost of services provided.
Provide greater taxpayer control through notice and voting requirements.
§2. Definitions
Defines key terms used throughout the article:
"Assessment": Charge on property for a specific benefit, like streetlights or sidewalks.
"Fee" or "charge": A levy for a property-related service, such as water, sewer, or trash.
"Property ownership" includes tenants if they pay fees, under certain conditions.
"Proportional cost": Fees and assessments must reflect the actual cost and benefit to the property.
§3. Property Taxes, Assessments, Fees, and Charges Limited
Prohibits:
Imposing assessments unless there is a special benefit to the property.
Fees for general governmental services (e.g., police, fire) which are not property-related.
Ensures fees cannot exceed the cost of providing the service.
No fee or assessment may be imposed for services not used or immediately available to the property.
§4. Procedures for New or Increased Assessments
Requires:
Detailed engineer’s report on the benefit to each parcel.
Notice and public hearing to all affected property owners.
A majority protest process (if most owners object, the proposal fails).
Ensures assessments are proportional to the benefit received.
§5. Effective Date
Article XIII D applies to:
All assessments, fees, and charges imposed after July 1, 1997.
Existing ones are subject to review if they are extended or increased.
§6. Property-Related Fees and Charges
Imposes strict rules on fees for services such as water, sewer, and garbage:
Must not exceed the cost of service.
Must be used only for the service provided.
Proportionality required – no property pays more than its share.
Requires:
Notice to property owners.
A public hearing.
Majority vote or written protest (depending on the service).
Voter approval is required for new or increased fees except for sewer, water, and refuse collection, which only need protest hearings.
Purpose of Article XIII D:
Prevent unfair or hidden taxes disguised as fees or assessments.
Guarantee transparency, accountability, and voter control.
Protect property owners from government overreach.
Conclusion:
Article XIII D forms a powerful check on local governments, ensuring that any charge related to property is justified, limited to cost, and subject to public oversight.
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