CA Legislative Explainer: Tax Levy Bills

CA Legislative Explainer: Tax Levy Bills By Chris Micheli

Under Article IV, Section 8(c)(3) of the California Constitution, “statutes calling elections, statutes providing for tax levies or appropriations for the usual current expenses of the State, and urgency statutes shall go into effect immediately upon their enactment.” In addition, a tax levy is not subject to a referendum.

So, what is a “tax levy”? Unfortunately, it is not defined in either the state Constitution or in statute.

Nonetheless, a common misconception is that a “tax levy” is a tax increase bill. However, that is not always the case. While a tax levy is usually a collection tool used by the government, for California bills, a “tax levy” is any bill that imposes, repeals, or materially alters a state tax. It is often described as a bill that changes the base, rate, or burden of a state tax.

The Office of Legislative Counsel indicates in the Title and Digest of the bill whether the bill is a tax levy. Specifically, the Digest will contain the following statement, generally at the end of the Digest: “This bill would take effect immediately as a tax levy.”

A bill reader will see the following language in the text of a tax levy California bill:


This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.

As a result, a tax levy takes effect immediately and it is not subject to a referendum.

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