Kelly Salt, a Best Best & Krieger partner based in San Diego, authored this guide specifically geared toward helping special districts in California navigate the requirements of Proposition 26. Published by the California Special Districts Association, the guide offers a thorough explanation of the impacts the proposition may have on special districts and the issues that districts should consider when adopting fees and charges. The proposition was passed by California voters in 2010, and established new limitations on the power of state and local governments to impose fees and charges.

Excerpt from Guide: On November 2, 2010 California voters approved Proposition 26, a ballot initiative that established new limitations on the State’s and local governments’ power to impose fees and charges. Proposition 26 amended provisions of Article XIII A of the California Constitution, which governs the imposition of taxes by the State, and Article XIII C of the California Constitution, which governs the imposition of taxes by local governments, by providing a new definition of the term “tax.” For local governments, this narrow definition defines “tax” to mean any levy, charge, or exaction of any kind imposed by a local government,2 except for seven specifically identified exceptions. As a consequence, fees and charges that do not fall within one of the seven exceptions are redefined as taxes and are subject to voter approval.