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November 6, 2018 — California General Election

— Transportation Taxes and Fees — Eliminates Certain Road Repair and Transportation Funding. Requires Certain Fuel Taxes and Vehicle Fees Be Approved By the ElectorateInitiative Constitutional Amendment —

November 6, 2018 —California General Election

State of California
Proposition 6 — Transportation Taxes and Fees Initiative Constitutional Amendment - Majority Approval Required

To learn more about measures, follow the links for each tab in this section. For most screenreaders, you can hit Return or Enter to enter a tab and read the content within.

Election Results

Failed

4,582,143 votes yes (43.3%)

5,999,423 votes no (56.7%)

  • 100% of precincts reporting (24,312/24,312).

Repeals a 2017 transportation law's taxes and fees designated for road repairs and public transportation. Fiscal Impact: Reduced ongoing revenues of $5.1 billion from state fuel and vehicle taxes that mainly would have paid for highway and road maintenance and repairs, as well as transit programs.

Information provided by The League of Women Voters of California Education Fund

The way it is now

In 2017, state lawmakers passed a law called SB 1 to raise money for transportation in California. SB 1 increased taxes on gasoline and diesel fuel. It also created new transportation improvement fees that are paid when registering a vehicle. The state expects these taxes and fees to raise $4.4 billion this year. In 2020, this amount will increase to $5.1 billion. Money earned from SB 1 helps pay for road and highway repairs, safety improvements, and public transportation.

What if it passes?

Prop 6 would get rid of the taxes and fees passed last year as part of SB 1. The Legislature would need to get voter approval before passing new taxes on gasoline and diesel fuel. Voters would also have to approve before transportation improvement fees and vehicle license fees could be increased.

Budget effect

If Prop 6 passes, the state would get much less money from transportation taxes and fees. The state would lose $2.4 billion this year and $5.1 billion in 2020. There would be much less money available for highway and road repairs, as well as public transportation. California would also have less money for safety improvements. By requiring voter approval, Prop 6 could make it harder to raise transportation taxes and fees in the future.

People FOR say

  • Transportation taxes and fees are too high for low-income residents and California’s working families. 
  • Voting yes on Prop 6 would immediately lower the price of gasoline and the cost to register a vehicle.

People AGAINST say

  • Transportation taxes and fees are paying for more than 6500 projects throughout the state. 
  • If we don’t have money to pay for important bridge and road repairs, California will be less safe.

 

Information provided by League of Women Voters of California Education Fund

The Question

Should the increase in vehicle fuel taxes and fees enacted by the Legislature in 2017 be reversed and should the Constitution be amended to require voter approval of any transportation related taxes and fees?     

The Situation

In 2017 lawmakers passed the Road Repair and Accountability Act (SB 1) increasing state funding for transportation purposes from $6.6 billion in 2016-17 to $12.1 billion in 2018-19. By 2020-21 when all the taxes will have been in effect, SB 1 revenue is estimated to total $5.1 billion annually. 

On November 1, 2017 State fuel excise taxes per gallon increased 12 cents for gasoline and 20 cents for diesel.  Diesel State sales tax increased by 4 percent.  A new transportation fee was added to the cost of registering a vehicle, including a fee for electric cars starting in 2020.  After July 1, 2020, fuel excise taxes will be adjusted for inflation.  

Voters restricted the new SB 1 tax revenues to transportation purposes by approving Prop 69 in June 2018. 

In March 2018 US News & World Report rated California 49th in road quality, 11th in bridge quality, and 46th in commute times among the fifty states. 

The Proposal

Prop 6 would:

  • Repeal the fuel tax increases and vehicle fees enacted by SB 1.
  • Amend the State Constitution to require any future legislatively-imposed taxes on fuels and vehicles to take effect only if the voters of the state vote to approve it.  

Fiscal effect

If Prop 6 is approved, SB 1 transportation tax revenues will be reduced in 2018-19 from $4.4 billion to $2 billion. After that time SB 1 will no longer exist and transportation tax revenue will be reduced by $5.1 annually. According to the Legislative Analyst, the loss of funding will affect state highway maintenance and rehabilitation, local streets and roads, and mass transit.

Adding the requirement that most transportation-related taxes must also be approved by the voters will make it more difficult to impose such changes in the future. 

Supporters say

  • Gas taxes and fees are too high, fall the hardest on hardworking families, and are unnecessary in a state that has a budget surplus.   
  • One third of the gas tax increase will be diverted to non-road related pet projects including building parks and training for formerly incarcerated felons through the Workforce Development Board.  
  • Tax increases on gasoline that directly affect people’s lives are “too big” for just the governor and Legislature to decide.

Opponents say

  • Cracked, potholed roads pose a major safety threat to California drivers; 89% of counties have roads in poor or at-risk condition and more than 1600 bridges and overpasses are structurally unsafe.  
  • Reliable transportation infrastructure is critical to get Californians to work, move goods and services to the market, and support our economy. 
  • Requiring voter approval of fuel taxes or vehicles fees already passed by a supermajority in the Legislature risks the unintended consequences of ballot box budgeting.  
Summary

  • Repeals a 2017 transportation law’s tax and fee provisions that pay for repairs and improvements to local roads, state highways, and public transportation.
  • Requires the Legislature to submit any measure enacting specified taxes or fees on gas or diesel fuel, or on the privilege to operate a vehicle on public highways, to the electorate for approval.

SUMMARY OF LEGISLATIVE ANALYST’S ESTIMATE OF NET STATE AND LOCAL GOVERNMENT FISCAL IMPACT:

  • Reduced ongoing state revenues of $5.1 billion from the elimination of fuel and vehicle taxes passed by the Legislature in 2017. These revenues mainly would have paid for highway and road maintenance and repairs, as well as transit programs.
  • The requirement that voters approve new or increased fuel and vehicle taxes passed by the Legislature in the future could result in lower revenues from such taxes than otherwise would have been available.
— Office of the Attorney General
Background

APPROVAL OF STATE TAXES

Legislative Requirements. Under the State Constitution, the Legislature can only pass a new tax or increase an existing tax with a two-thirds vote. (The Legislature can pass most other types of laws with a simple majority.) Some state charges referred to as fees (such as vehicle license fees) fall under the constitutional definition of a tax.

Voter Approval Requirements. The Legislature does not need to get voter approval for new or increased taxes that it passes. The voters—through the initiative process—can pass new taxes or increase existing taxes without the Legislature’s involvement.

STATE FUEL AND VEHICLE TAXES

Fuel Taxes. The state charges excise taxes on gasoline and diesel fuel. These taxes are set on a per-gallon basis. The state also charges sales taxes on gasoline and diesel fuel. These taxes are set as a percent of the price of the fuel. The State Constitution generally requires that the revenues from these fuel taxes be spent on highways, roads, and transit.

Vehicle Taxes. State law requires vehicle owners to pay two specific taxes for the privilege of operating a vehicle on public highways. These are (1) vehicle license fees and (2) recently enacted transportation improvement fees, both of which are based on a vehicle’s value. The State Constitution requires that the transportation improvement fee revenues be spent on highways, roads, and transit. 

TRANSPORTATION FUNDING IN CALIFORNIA

Transportation funding in California currently is estimated to total $35 billion. Of this amount, $16 billion comes from local sources, $12 billion from state sources, and $7 billion from federal sources. Local funding mainly comes from sales taxes, transit fares, and city and county general funds, while federal funding mainly comes from federal fuel taxes. State funding mainly comes from state fuel and vehicle taxes. State funding has increased by about three-quarters over the last two years mainly due to recent legislation.

Recent State Transportation Funding Legislation. In 2017, the Legislature enacted Senate Bill (SB) 1 to increase annual state funding for transportation through various fuel and vehicle taxes. Specifically, SB 1 increased the base gasoline excise tax (by 12 cents per gallon) and the diesel sales tax (by 4 percent). It also set fixed rates on a second (add-on) gasoline excise tax and the diesel excise tax, both of which previously could change each year based on fuel prices. Further, SB 1 created the transportation improvement fee (which ranges from $25 to $175 per year) and a fee specifically for zero-emission vehicles (set at $100 per year for model years 2020 and later). It also provides for inflation adjustments in the future. This fiscal year, the state expects the taxes to raise $4.4 billion. Two years from now, when all the taxes are in effect and the inflation adjustments have started, the state expects the taxes to raise $5.1 billion. The State Constitution requires that nearly all of these new revenues be spent on transportation purposes. Senate Bill 1 dedicates about two-thirds of the revenues to highway and road repairs, with the remainder going to other programs (such as for mass transit).

— Legislative Analyst's Office
Impartial analysis / Proposal

Requires Legislature to Get Voter Approval for Fuel and Vehicle Taxes. Proposition 6 amends the State Constitution to require the Legislature to get voter approval for new or increased taxes on the sale, storage, use, or consumption of gasoline or diesel fuel, as well as for taxes paid for the privilege of operating a vehicle on public highways. Thus, the Legislature would need voter approval for such taxes as gasoline and diesel excise and sales taxes, vehicle license fees, and transportation improvement fees. 

Eliminates Recently Enacted Fuel and Vehicle Taxes. Proposition 6 also eliminates any such fuel and vehicle taxes passed by the Legislature after January 1, 2017 and up to the date that Proposition 6 takes effect in December. This would eliminate the increased fuel taxes and the transportation improvement fees enacted by SB 1.

— Legislative Analyst's Office
Financial effect

Eliminates Tax Revenues From SB 1. In the current fiscal year, Proposition 6 would reduce SB 1 tax revenues from $4.4 billion to $2 billion—a $2.4 billion decrease. (The $2 billion in remaining revenues would be from taxes collected prior to Proposition 6 taking effect in December.) Two years from now, the revenue reduction would total $5.1 billion annually. The funding reductions would mainly affect highway and road maintenance and repair programs, as well as transit programs.

Makes Passage of Specified Fuel and Vehicle Taxes More Difficult. Proposition 6 would make it more difficult to enact specified fuel and vehicle taxes because voters also would have to approve them. As a result, there could be less revenue than otherwise would be the case. Any reduction in revenues is unknown, as it would depend on future actions by the Legislature and voters.

— Legislative Analyst's Office

YES vote means

 A YES vote on this measure means: Fuel and vehicle taxes recently passed by the Legislature would be eliminated, which would reduce funding for highway and road maintenance and repairs, as well as transit programs. The Legislature would be required to get a majority of voters to approve new or increased state fuel and vehicle taxes in the future.

NO vote means

 A NO vote on this measure means: Fuel and vehicle taxes recently passed by the Legislature would continue to be in effect and pay for highway and road maintenance and repairs, as well as transit programs. The Legislature would continue not to need voter approval for new or increased state fuel and vehicle taxes in the future.

Arguments FOR

VOTE YES ON 6 to immediately LOWER GAS PRICES. Californians are struggling with the high cost of living. VOTE YES on Proposition 6 to repeal the unfair regressive gas and car tax increase and require voter approval for any future increase. VOTE YES on Prop. 6 for lower gas prices!

— Official Voter Information Guide

Arguments FOR

Vote YES on Proposition 6 to immediately lower the price you pay for gasoline.

Prop. 6 does two things. It repeals the massive increase in gas, diesel and car taxes imposed by the Legislature just last year. Second, it requires voter approval for any future attempt by the Legislature to do it again. That’s it. Here’s why Prop. 6 deserves your YES vote:

FACT: California’s cost of living is skyrocketing and working families can barely keep up. The new gas and car tax hikes can cost a family of four more than $500 per year! That’s not pennies, that’s real money.

FACT: The gas tax hike is not fair. It’s a regressive tax that hits working families and the poor much harder than the wealthy.

FACT: Californians pay about 95.5 cents to the government on every gallon of gas. That’s about $18 in taxes and fees on a typical fill-up—much more than motorists pay in other states.

FACT: California has a $16 billion budget surplus, but the Sacramento politicians decided to spend billions this year on their pet projects instead of improving roads, bridges and highways. In fact, the Legislature has actually REDUCED Caltrans funding by 18 percent over the last ten years.

FACT: 72% of all state motor vehicle related taxes and fees collected by the state are used for programs other than streets, roads and highways. It’s time to end the transportation funding shell game.

(Check these facts and learn more at GiveVotersAVoice.com)

Don’t be fooled by opponents who claim there is no money to fix roads if Prop. 6 passes. If the transportation-related taxes and fees we already paid before this new tax increase took effect were spent on transportation—the state would have $5.6 billion annually for transportation needs, without raising taxes.

That’s why unbiased transportation experts agree the Legislature needs to prioritize its spending and gas and car tax hikes are NOT necessary to fix the roads.

“The waste of taxpayer dollars going to transportation is legendary. California could have great roads if it simply adopted basic reforms.”—Robert K. Best, former Director of Caltrans

Before raising gas and car taxes by $52 BILLION over 10 years, the Legislature should clean up the corruption and inefficiency that causes California to spend 62% above the national average to build highway lanes. Nearly a million Californians hurt by high gas prices— small-business owners, teachers, retired people, union members—signed the petition to place Prop. 6 on the ballot.

Vote YES on Prop. 6 to save your family hundreds of dollars a year by repealing the unnecessary gas and car tax increase—and end the shell game Sacramento politicians play with our transportation funds.

Vote YES on Prop. 6 to help California’s struggling middle class and working families make ends meet.

Vote YES on Prop. 6 to demand that politicians spend our transportation tax dollars as intended and promised—to maintain our streets, highways and bridges.

Vote YES on Prop. 6 to immediately lower gas prices!

JOHN COX, Honorary Chairman
Give Voters a Voice—Yes on Prop. 6

DELORES CHAVEZ, President
Latino American Political Association

PEGGI BUFF, President
California Women’s Leadership Association

— Official Voter Information Guide

Arguments AGAINST

California Professional Firefighters, California Association of Highway Patrolmen, American Society of Civil Engineers and first responders URGE NO on Proposition 6 because it jeopardizes the safety of bridges and roads. Prop. 6 eliminates $5 billion annually in local transportation funding, stopping thousands of road safety, congestion relief and transportation improvement projects in every California community. www.NoProp6.com

— Official Voter Information Guide

Arguments AGAINST

VOTE NO ON PROP. 6: STOP THE ATTACK ON BRIDGE & ROAD SAFETY

The California Professional Firefighters, California Association of Highway Patrolmen, American Society of Civil Engineers and first responders urge NO on Prop. 6 because it will stop critical transportation projects and jeopardize the safety of our bridges and roads.

Prop. 6 eliminates $5 billion annually in existing funds dedicated to fixing roads, bridges and infrastructure. Prop. 6 will stop projects currently underway throughout California to upgrade bridges and overpasses to meet earthquake safety standards and to improve the safety of our roads.

Here are the facts:

  • California has more than 1,600 bridges and overpasses that are structurally deficient and unsafe.
  • Eighty nine percent (89%) of counties have roads that are in ‘poor’ or ‘at-risk’ condition.
  • According to the National Highway Traffic Safety Administration, there were more than 3,600 fatalities on California roads in 2016. Improving road conditions and roadway safety features have been found to have a significant effect improving traffic safety.

PROP. 6 ELIMINATES FUNDING FOR MORE THAN 6,500 ROAD SAFETY AND TRANSPORTATION IMPROVEMENT PROJECTS

According to the California State Transportation Agency, there are more than 6,500 local transportation improvement projects underway in every California community, including:

  • 3,727 projects fixing potholes and repaving crumbling, unsafe roads
  • Repairs or replacement of 554 bridges and overpasses
  • 453 improvements to public transportation operations and services including buses and rail
  • 337 projects relieving traffic congestion

If Prop. 6 passes, construction will come grinding to a halt in cities and counties throughout the state, wasting money and making road conditions even worse.

VOTERS SPOKE LOUD AND CLEAR TO DEDICATE ROAD FUNDING

Voters overwhelmingly passed Prop. 69 in June preventing Sacramento politicians from raiding transportation funds and ensuring these funds are only used for transportation improvements. We should not eliminate transportation revenues that are accountable to taxpayers, can’t be diverted, and that voters overwhelmingly dedicated to fixing our roads.

PROP. 6 ELIMINATES THOUSANDS OF JOBS AND HURTS OUR ECONOMY

The California Chamber of Commerce opposes Prop. 6 because it could eliminate 68,000 jobs annually and $183 billion in economic investments as thousands of road construction projects are halted.

PUBLIC SAFETY AND LOCAL LEADERS OPPOSE PROP. 6

  • California Professional Firefighters
  • California Association of Highway Patrolmen
  • American Society of Civil Engineers
  • Emergency responders and paramedics
  • California Chamber of Commerce
  • California League of Conservation Voters
  • State Building & Construction Trades Council of California
  • California State Association of Counties
  • League of California Cities
  • California Alliance for Jobs
  • Latin Business Association
  • California NAACP
  • Congress of California Seniors
  • California League of United Latin American Citizens (LULAC)

Emergency responders see firsthand the safety risk to drivers caused by crumbling roads, structurally unsafe bridges and outdated infrastructure. By stopping thousands of transportation improvement projects, Prop. 6 will make our roads, bridges and transportation system less safe and lead to more traffic accidents and fatalities.”—Mark Ghilarducci, Director, California Office of Emergency Services

STOP THE ATTACK ON BRIDGE & ROAD SAFETY. VOTE NO ON 6.

NoProp6.com

BRIAN K. RICE, President
California Professional Firefighters

KWAME AGYARE, Region Director
American Society of Civil Engineers

DOUG VILLARS, President
California Association of Highway Patrolmen

— Official Voter Information Guide

Replies to Arguments FOR

Don’t be misled. Out-of-state politicians and special interests spent millions to put Proposition 6 on the ballot. Prop. 6 will make our bridges, roads and transportation system less safe, and we’ll end up paying more in the long run as roads further deteriorate.

FACT: Prop. 6 does not contain one single provision guaranteeing our gas prices will be reduced.

FACT: Voters overwhelmingly passed Proposition 69 in June preventing Sacramento politicians from raiding transportation funds, ensuring funds can only be used for transportation improvements.

FACT: Prop. 6 eliminates $5 billion annually in existing transportation funding and will jeopardize more than 6,500 local transportation projects currently underway throughout California. Now is not the time to stop the progress.

FACT: Proposition 6 threatens public safety. California has more than 1,600 bridges and overpasses that are structurally deficient, and 89% of counties have roads that are rated in “poor” or “at-risk” condition. Prop. 6 eliminates projects making safety repairs to bridges and overpasses and fixing dangerous roads.

FACT: Prop. 6 will cost motorists more in the long run. The average driver spends $739 per year on vehicle expenses like front end alignments, shocks and tire repairs caused by bad roads. This measure will make road conditions worse and cost us all more in unexpected vehicle repairs.

Proposition 6 is opposed by more than 200 organizations, including:

  • California Professional Firefighters
  • American Society of Civil Engineers
  • League of Women Voters of California
  • California Chamber of Commerce
  • California Transit Association
  • Congress of California Seniors
  • California League of United Latin American Citizens
  • Latin Business Association
  • California Association of Highway Patrolmen

Reject Proposition 6—stop the attack on bridge & road safety.

www.NoProp6.com

BRIAN K. RICE, President California
Professional Firefighters

MARK GHILARDUCCI, Director
California Office of Emergency Services

YVONNE GONZALEZ DUNCAN, State Director
California League of United Latin American Citizens (CA LULAC)

— Official Voter Information Guide

Replies to Arguments AGAINST

The cost of living in California is already too high. VOTE YES on PROP. 6 to immediately lower the price you pay at the pump.

DON’T be fooled by Special Interest opponents claiming there is no money to fix bridges and roads unless taxes are raised. Here are the facts:

  • STATE GOVERNMENT HAS A $16 BILLION BUDGET SURPLUS, but the Legislature decided to spend billions on their pet projects instead of improving roads, bridges and highways.
  • Sacramento politicians have REDUCED Caltrans funding by 18 percent over the last ten years. 72% of all state motor vehicle related taxes and fees go to programs other than streets, roads and highways.
  • Higher fuel taxes are passed along to consumers, increasing the cost of everything we buy. California is already too expensive. This massive tax increase makes things worse.

One more thing the politicians aren’t telling you: HIDDEN IN THE LEGISLATURE’S GAS TAX BILL IS A CLAUSE THAT ALLOWS THE TAX TO AUTOMATICALLY INCREASE EVERY YEAR WITHOUT A VOTE OF THE PEOPLE.

Too many Californians are already struggling with the high cost of living. PROP. 6 does just two things to help make California more affordable:

First, it REPEALS the unfair and massive increase in the gas and car tax.

Second, it REQUIRES a vote of the people before the politicians can try to increase gas and car taxes again.

VOTE YES on Prop. 6 for lower gas prices!

Visit www.GiveVotersAVoice.com and www.GasTaxRepeal.org to learn more.

JON COUPAL, President
Howard Jarvis Taxpayers Association

JOHN KABATECK, California Director
National Federation of Independent Business

JESSE ROJAS, President
California Farmworkers and Families PAC

— Official Voter Information Guide

Proposed legislation

This initiative measure is submitted to the people in accordance with the provisions of Section 8 of Article II of the California Constitution. This initiative measure adds a section to the California Constitution; therefore, new provisions proposed to be added are printed in italic type to indicate that they are new.

SECTION 1. Statement of Findings and Purposes.

(a) California’s taxes on gasoline and car ownership are among the highest in the nation.
(b) These taxes have been raised without the consent of the people.
(c) Therefore, the people hereby amend the Constitution to require voter approval of the recent increase in the gas and car tax enacted by Chapter 5 of the Statutes of 2017 and any future increases in the gas and car tax.

SEC. 2. Voter Approval for Increases in Gas and Car Tax.

SEC. 2.1. Section 3.5 is added to Article XIIIA of the California Constitution, to read:

Sec. 3.5.

(a) Notwithstanding any other provision of law, the Legislature shall not impose, increase or extend any tax, as defined in Section 3, on the sale, storage, use, or consumption of motor vehicle gasoline or diesel fuel, or on the privilege of a resident of California to operate on the public highways a vehicle or trailer coach, unless and until that proposed tax is submitted to the electorate and approved by a majority vote.
(b) This section does not apply to taxes on motor vehicle gasoline or diesel fuel, or on the privilege of operating a vehicle or trailer coach at the rates that were in effect on January 1, 2017. Any increase in the rate of such taxes imposed after January 1, 2017, shall cease to be imposed unless and until approved by the electorate as required by this section.

Yes on Proposition 6
No on Proposition 6

Yes on Proposition 6

Total money raised: $5,698,417
Bar graph showing total amount relative to total amount for this entire campaign.

No on Proposition 6

Total money raised: $49,405,335
Bar graph showing total amount relative to total amount for this entire campaign.

Below are the top 10 contributors that gave money to committees supporting or opposing the ballot measures.

Yes on Proposition 6

1
California Republican Party
$469,412
2
Howard Jarvis Taxpayers Association
$330,050
3
Kevin McCarthy for Congress
$300,000
4
John Cox for Governor 2018
$250,000
5
Making Investments Majority Insured PAC
$214,000
6
KEN CALVERT FOR CONGRESS COMMITTEE
$175,000
7
Walters for Congress
$135,303
8
Devin Nunes Campaign Committee
$100,000
8
Kojaian Companies
$100,000
8
Western Growers
$100,000

No on Proposition 6

1
California Alliance for Jobs
$5,025,692
2
State Building & Construction Trades Council of California
$2,255,789
3
Laborers Pacific Southwest Regional Organizing Coalition
$1,900,000
4
Southern California Contractors Association
$1,802,943
5
Southern California Partnership for Jobs
$1,719,348
6
International Union of Operating Engineers
$1,500,000
7
Southwest Regional Council of Carpenters
$1,403,291
8
Southern California District Council of Laborers
$1,400,000
9
Working for Working Americans
$1,350,000
10
League of California Cities
$1,260,000

Yes on Proposition 6

By State:

California 94.77%
Michigan 2.12%
Wisconsin 1.06%
District of Columbia 0.72%
Other 1.33%
94.77%

By Size:

Large contributions (83.26%)
Small contributions (16.74%)
83.26%16.74%

By Type:

From organizations (58.22%)
From individuals (41.78%)
58.22%41.78%

No on Proposition 6

By State:

California 82.87%
District of Columbia 7.80%
Texas 1.71%
Missouri 1.09%
Other 6.54%
82.87%

By Size:

Large contributions (96.04%)
Small contributions (3.96%)
96.04%

By Type:

From organizations (98.88%)
From individuals (1.12%)
98.88%

Videos (1)

— October 19, 2018 Cal Channel and the League of Women Voters of California Education Fund
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