00:00Proposition 43 would change the way that local votes to raise taxes take place.
00:07And in particular, it would raise the threshold for new taxes to pass to a two-thirds majority.
00:14Now you might ask, wasn't it a two-thirds majority before?
00:17And the answer is yes, if new local taxes were proposed by local governments.
00:21But the courts decided that if taxes were proposed through the initiative process by
00:26citizens or interest groups themselves, then the threshold could be as low as 50%.
00:30That's how controversial taxes like Measure ULA, the so-called mansion tax, passed in Los Angeles.
00:35It's had a very negative effect on real estate transactions in Los Angeles,
00:39and it's proving very hard to get rid of.
00:41The Howard Jarvis Taxpayers Association fought Measure ULA in court,
00:44but the courts agreed that unless the new tax was proposed by local government itself,
00:50the two-thirds majority didn't apply.
00:52This new ballot initiative seeks to make two-thirds the standard,
00:55no matter whether a local government proposes a tax or a citizen initiative proposes a tax,
00:59to keep some restraint on the ability to raise taxes on real estate at the local level.
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