Cal Law Trends and Developments

Article Title

State and Local Taxes


The year 1968 may have been more significant for constitutional changes that did not occur than for those that did. Proposition 9, the so-called "Watson Amendment," would have imposed severe limitations on the property tax as a source of revenue. According to its opponents, this measure, which was defeated, would have resulted in a drastic restriction on the borrowing power of the state and its political subdivisions, and would have required an extensive shift to other taxes if the present level of expenditure were to be maintained. But Proposition I-A, affording a moderate amount of property tax relief was adopted by the voters and became Article 13 section 1d of the Constitution. It was implemented by Senate Bill 8. The specific provisions of this bill will be discussed under the Property Tax and Personal Income Tax headings.Legislative changes in other fields will be discussed under the headings relating to the particular taxes affected.