{"id":1955,"date":"2026-06-12T22:38:04","date_gmt":"2026-06-12T22:38:04","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=1955"},"modified":"2026-06-12T22:38:04","modified_gmt":"2026-06-12T22:38:04","slug":"officials-warn-a-california-ballot-proposal-changing-voting-thresholds-on-local-tax-initiatives-could-cost-san-jose-millions","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=1955","title":{"rendered":"Officials warn a California ballot proposal changing voting thresholds on local tax initiatives could cost San Jose millions"},"content":{"rendered":"
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Already facing financial uncertainties, San Jose could lose millions in vital tax revenue if a statewide initiative on the November ballot succeeds in changing voting thresholds for local tax measures, city officials warned this week.<\/p>\n

Read more Man\u2019s body found on UC Berkeley campus<\/a><\/p>\n

The City Council\u2019s Rules and Open Government Committee on Wednesday unanimously recommended the city officially oppose\u00a0the initiative. Highlighting a profound threat to San Jose\u2019s housing and homelessness programs, the committee forwarded the memo to the full council for discussion next week, noting the proposal could destabilize an already precarious city budget.<\/p>\n

During the meeting, Councilmember David Cohen warned that the initiative \u201cmakes it almost impossible\u201d for local governments to raise revenue, noting that it would retroactively strip away the city\u2019s right to collect a voter-approved real estate transfer tax.<\/p>\n

\u201cIt would, within a year, invalidate Measure E, which is a huge hit to our budget,\u201d Cohen said.<\/p>\n

If passed, the proposal \u2013 officially titled \u201cLimits Ability of Voters to Raise Revenues for Local Government Services\u201d \u2013 would directly threaten between $55 million and $70 million in annual revenue tied to Measure E. The local policy \u2013 a one-time real estate transfer tax levied upon the sale of properties valued at $2 million or more \u2013 was approved by San Jose voters in 2020 with just over 53% of the vote.<\/p>\n

Under current city policy, Measure E funds are mainly used to fund homelessness programs, with whatever remains allocated for affordable housing.<\/p>\n

City documents show the initiative would also ban another San Jose property tax \u2014 eliminating upward of $45 million in projected revenue that currently helps support neighborhood parks, public libraries, fire stations, and city service yards, among other public resources<\/p>\n

According to the California Secretary of State, the with 1.3 million signatures. It has yet to receive an official proposition title.<\/p>\n

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Although the state initiative would force future local taxes to clear a two-thirds supermajority, the measure itself requires only a simple statewide majority to become law.<\/p>\n

Local tax measures can typically bypass California\u2019s strict two-thirds supermajority requirement \u2013 established by voters in 1978 under Proposition 13 \u2013 in two ways. Under current state law, special taxes proposed through citizen-led petitions only require a simple majority to pass. Measures can also be placed on the ballot by a city council \u2013 like San Jose\u2019s Measure E \u2013 and do not require supermajority support if they are structured as general taxes, meaning the revenue goes into a city\u2019s general fund rather than legally locked into a specific program.<\/p>\n

While the difference between special and general taxes is usually defined by where the money goes, the state initiative \u2013 placed on the November 2026 general election ballot \u2013 also addresses\u00a0where the money comes from. The measure forces all citizen-led special taxes to clear a two-thirds voter threshold while also completely banning charter cities from keeping local real estate transfer taxes above state limits.<\/p>\n

Read more Woman killed, suspect hospitalized after stabbing at San Jose apartment<\/a><\/p>\n

Supporters of the initiative say the proposal protects Proposition 13 \u2013 which capped property taxes and established the state\u2019s two-thirds vote requirement \u2013 and closes \u201ccourt-created loopholes\u201d that make it easier for local governments to raise sales, parcel, and real estate taxes.<\/p>\n

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Backed by a coalition of business, taxpayer, and real estate organizations, the measure\u2019s prominent supporters include the Howard Jarvis Taxpayers Association, the California Business Roundtable, the Apartment Association of Greater Los Angeles, and Reform California.<\/p>\n

While the measure impacts voter-proposed special taxes across the state, it applies a restrictive, retroactive layer to local real estate taxes that exceed state caps. This is the core concern for San Jose officials \u2013 as the city, consistently ranked among the most unaffordable cities in the nation, faces losing a massive chunk, if not all, of the revenue generated by Measure E. This loss would \u201cdecimate\u201d the city\u2019s efforts to build affordable housing and address homelessness, according to the memo authored by Councilmembers Cohen, Pamela Campos, Rosemary Kamei, and Anthony Tordillos.<\/p>\n

The memo\u2019s authors warned against further hits to city funds, stating, \u201cthe city cannot fill the gap following the elimination of Measure E.\u201d<\/p>\n

\u201cCalifornia voters have repeatedly entrusted local communities to determine how to fund services and infrastructure that meet their unique needs,\u201d the memo read. \u201cBy retroactively overturning voter-approved measures and imposing additional barriers to future local revenue decisions, the initiative would weaken the ability of San Jose to respond to local needs and maintain essential public services.\u201d<\/p>\n

This proposal arrives at a delicate moment for San Jose\u2019s finances. The committee\u2019s move comes just a day after the city approved a $5.5 billion budget that closed an immediate $50 million shortfall through a mix of cost-saving measures, reliance on reserve funds, and targeted program cuts to housing, homelessness, and public safety.<\/p>\n

While the budget is technically balanced, maintains funding for most city services, and avoids layoffs among an already lean staff, the fiscal outlook remains fragile as local revenues slow due to cooling economic conditions and rising inflation.<\/p>\n

Mayor Matt Mahan earlier this month highlighted three threats to the city\u2019s financial stability in his June budget message. Originally totaling $75 million in potential losses over the next several years, those risks included changing state regulations over cardroom games, an upcoming state audit on how the county disburses real estate taxes to cities, and a potential $10 million shortfall if Measure A \u2013 the local general hotel tax \u2013 failed to pass.<\/p>\n

Because voters ultimately approved Measure A, that looming threat now sits closer to $65 million. This initiative poses only the latest and potentially devastating hit to the city\u2019s coffers, officials noted.<\/p>\n

Read more South Bay public health officials prepare for World Cup<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

San Jose officials warn a statewide initiative could void the city’s Measure E property transfer tax, threatening a critical funding source for homelessness and housing<\/p>\n","protected":false},"author":1,"featured_media":1954,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nOfficials warn a California ballot proposal changing voting thresholds on local tax initiatives could cost San Jose millions - Next City Digest<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nextcitydigest.com\/?p=1955\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Officials warn a California ballot proposal changing voting thresholds on local tax initiatives could cost San Jose millions - 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