Proposition 69: Requires That Certain New Transportation Revenues Be Used for Transportation Purposes.
Should the Legislature be required to dedicate and direct revenues from the Road Repair and Accountability Act of 2017 (SB 1) to transportation purposes and exempt this revenue from California’s annual spending limit?
This Proposition was part of a legislative package, which included SB 1, signed by Gov. Brown in April 2017.
SB 1 increased the state’s excise tax on gasoline and diesel fuel, dedicating this revenue to transportation purposes as provided by the Constitution. In addition, SB 1 in-creased sales taxes on diesel fuel and created a new vehicle registration fee, the Transportation Improvement Fee (TIF) based on a vehicle’s value. The Constitutional provision restricting the use of the excise tax on diesel fuel to transportation purposes does not to apply sales tax on such fuel; nor does it apply to the newly created TIF.
Prop 69 would amend the State Constitution to:
- Restrict the new diesel sales tax revenue and a Transportation Improvement Fee (TIF) on vehicles from SB 1, to be used solely for transportation purposes,
- Prohibit borrowing from the Public Transportation Account for non-transportation purposes or using TIF revenues to repay state transportation bonds without voter approval.
- Allow revenues from SB 1 to be excluded from California’s spending limit which places an "upper bound" each year on the amount of monies that can be spent from state tax proceeds.
Because Prop 69 does not change the tax and fee rates established in SB 1, there is no direct fiscal effect. Prop 69 could affect how some monies are spent in the future by re-stricting the use of revenues from diesel sales taxes and TIF fees.