A California Special Tax is a flat tax on parcels of real property collected as part of a property tax bill. Unlike property taxes, Special taxes cannot be based on property value and must be used for a specific purpose. As a result, special taxes link residents' public services and how governments fund those services. This link promotes realistic expectations about the public services a government can provide based on what residents are willing to pay for.

Why does California have Special Taxes?

Before 1978, local governments could adjust property taxes to increase their revenues. That ended in 1978 with Proposition 13, which replaced locally determined property tax rates with a statewide rate. Now, counties levy the 1% property tax rate and allocate the revenue among local governments according to a formula devised by the state legislature. For example. Bear Valley receives 1/5 of your 1% property tax.

Because the State's decades-old formula for allocating property tax revenues is not aligned with the specific public services that communities demand, and because of Governor Jerry Brown's initiative to transfer authority from the state government to local governments, a side effect of this proposition has been a constraint on local government finances.

With additional responsibilities, local public sectors also require adequate revenues. For Special Districts and School Districts in particular, because they lack the multiple sources of discretionary tax revenue available to cities, the parcel tax is the only way to generate revenue to provide for specific purposes. Because of this, many local governments and Special Districts have turned to parcel taxes to provide residents with the services they are willing to pay for.

How are Special Taxes passed?

Special taxes are earmarked for specific purposes and require a two-thirds vote, also known as a Supermajority.

What can money gathered from Special Taxes be used for?

In Bear Valley Springs, the Police Special Tax can only be used for the Police Department, and the Gate Special Tax can only be used for the gate.