ARTICLE 13A [TAX LIMITATION]



SECTION 1.  (a) The maximum amount of any ad valorem tax on real
property shall not exceed One percent (1%) of the full cash value of
such property.  The one percent (1%) tax to be collected by the
counties and apportioned according to law to the districts within the
counties.
   (b) The limitation provided for in subdivision (a) shall not apply
to ad valorem taxes or special assessments to pay the interest and
redemption charges on any of the following:
   (1) Indebtedness approved by the voters prior to July 1, 1978.
   (2) Bonded indebtedness for the acquisition or improvement of real
property approved on or after July 1, 1978, by two-thirds of the
votes cast by the voters voting on the proposition.
   (3) Bonded indebtedness incurred by a school district, community
college district, or county office of education for the construction,
reconstruction, rehabilitation, or replacement of school facilities,
including the furnishing and equipping of school facilities, or the
acquisition or lease of real property for school facilities, approved
by 55 percent of the voters of the district or county, as
appropriate, voting on the proposition on or after the effective date
of the measure adding this paragraph.  This paragraph shall apply
only if the proposition approved by the voters and resulting in the
bonded indebtedness includes all of the following accountability
requirements:
   (A) A requirement that the proceeds from the sale of the bonds be
used only for the purposes specified in Article XIIIA, Section 1(b)
(3), and not for any other purpose, including teacher and
administrator salaries and other school operating expenses.
   (B) A list of the specific school facilities projects to be funded
and certification that the school district board, community college
board, or county office of education has evaluated safety, class size
reduction, and information technology needs in developing that list.

   (C) A requirement that the school district board, community
college board, or county office of education conduct an annual,
independent performance audit to ensure that the funds have been
expended only on the specific projects listed.
   (D) A requirement that the school district board, community
college board, or county office of education conduct an annual,
independent financial audit of the proceeds from the sale of the
bonds until all of those proceeds have been expended for the school
facilities projects.
   (c) Notwithstanding any other provisions of law or of this
Constitution, school districts, community college districts, and
county offices of education may levy a 55 percent vote ad valorem tax
pursuant to subdivision (b).



CALIFORNIA CONSTITUTION
ARTICLE 13A  [TAX LIMITATION]


SEC. 2.  (a) The "full cash value" means the county assessor's
valuation of real property as shown on the 1975-76 tax bill under
"full cash value" or, thereafter, the appraised value of real
property when purchased, newly constructed, or a change in ownership
has occurred after the 1975 assessment.  All real property not
already assessed up to the 1975-76 full cash value may be reassessed
to reflect that valuation.  For purposes of this section, "newly
constructed" does not include real property that is reconstructed
after a disaster, as declared by the Governor, where the fair market
value of the real property, as reconstructed, is comparable to its
fair market value prior to the disaster.  Also, the term "newly
constructed" does not include the portion of reconstruction or
improvement to a structure, constructed of unreinforced masonry
bearing wall construction, necessary to comply with any local
ordinance relating to seismic safety during the first 15 years
following that reconstruction or improvement.
   However, the Legislature may provide that, under appropriate
circumstances and pursuant to definitions and procedures established
by the Legislature, any person over the age of 55 years who resides
in property that is eligible for the homeowner's exemption under
subdivision (k) of Section 3 of Article XIII and any implementing
legislation may transfer the base year value of the property entitled
to exemption, with the adjustments authorized by subdivision (b), to
any replacement dwelling of equal or lesser value located within the
same county and purchased or newly constructed by that person as his
or her principal residence within two years of the sale of the
original property.  For purposes of this section, "any person over
the age of 55 years" includes a married couple one member of which is
over the age of 55 years.  For purposes of this section,
"replacement dwelling" means a building, structure, or other shelter
constituting a place of abode, whether real property or personal
property, and any land on which it may be situated.  For purposes of
this section, a two-dwelling unit shall be considered as two separate
single-family dwellings.  This paragraph shall apply to any
replacement dwelling that was purchased or newly constructed on or
after November 5, 1986.
   In addition, the Legislature may authorize each county board of
supervisors, after consultation with the local affected agencies
within the county's boundaries, to adopt an ordinance making the
provisions of this subdivision relating to transfer of base year
value also applicable to situations in which the replacement
dwellings are located in that county and the original properties are
located in another county within this State.  For purposes of this
paragraph, "local affected agency" means any city, special district,
school district, or community college district that receives an
annual property tax revenue allocation.  This paragraph shall apply
to any replacement dwelling that was purchased or newly constructed
on or after the date the county adopted the provisions of this
subdivision relating to transfer of base year value, but shall not
apply to any replacement dwelling that was purchased or newly
constructed before November 9, 1988.
   The Legislature may extend the provisions of this subdivision
relating to the transfer of base year values from original properties
to replacement dwellings of homeowners over the age of 55 years to
severely disabled homeowners, but only with respect to those
replacement dwellings purchased or newly constructed on or after the
effective date of this paragraph.
   (b) The full cash value base may reflect from year to year the
inflationary rate not to exceed 2 percent for any given year or
reduction as shown in the consumer price index or comparable data for
the area under taxing jurisdiction, or may be reduced to reflect
substantial damage, destruction, or other factors causing a decline
in value.
   (c) For purposes of subdivision (a), the Legislature may provide
that the term "newly constructed" does not include any of the
following:
   (1) The construction or addition of any active solar energy
system.
   (2) The construction or installation of any fire sprinkler system,
other fire extinguishing system, fire detection system, or
fire-related egress improvement, as defined by the Legislature, that
is constructed or installed after the effective date of this
paragraph.
   (3) The construction, installation, or modification on or after
the effective date of this paragraph of any portion or structural
component of a single- or multiple-family dwelling that is eligible
for the homeowner's exemption if the construction, installation, or
modification is for the purpose of making the dwelling more
accessible to a severely disabled person.
   (4) The construction or installation of seismic retrofitting
improvements or improvements utilizing earthquake hazard mitigation
technologies, that are constructed or installed in existing buildings
after the effective date of this paragraph.  The Legislature shall
define eligible improvements.  This exclusion does not apply to
seismic safety reconstruction or improvements that qualify for
exclusion pursuant to the last sentence of the first paragraph of
subdivision (a).
   (5) The construction, installation, removal, or modification on or
after the effective date of this paragraph of any portion or
structural component of an existing building or structure if the
construction, installation, removal, or modification is for the
purpose of making the building more accessible to, or more usable by,
a disabled person.
   (d) For purposes of this section, the term "change in ownership"
does not include the acquisition of real property as a replacement
for comparable property if the person acquiring the real property has
been displaced from the property replaced by eminent domain
proceedings, by acquisition by a public entity, or governmental
action that has resulted in a judgment of inverse condemnation.  The
real property acquired shall be deemed comparable to the property
replaced if it is similar in size, utility, and function, or if it
conforms to state regulations defined by the Legislature governing
the relocation of persons displaced by governmental actions.  The
provisions of this subdivision shall be applied to any property
acquired after March 1, 1975, but shall affect only those assessments
of that property that occur after the provisions of this subdivision
take effect.
   (e) (1) Notwithstanding any other provision of this section, the
Legislature shall provide that the base year value of property that
is substantially damaged or destroyed by a disaster, as declared by
the Governor, may be transferred to comparable property within the
same county that is acquired or newly constructed as a replacement
for the substantially damaged or destroyed property.
   (2) Except as provided in paragraph (3), this subdivision shall
apply to any comparable replacement property acquired or newly
constructed on or after July 1, 1985, and to the determination of
base year values for the 1985-86 fiscal year and fiscal years
thereafter.
   (3) In addition to the transfer of base year value of property
within the same county that is permitted by paragraph (1), the
Legislature may authorize each county board of supervisors to adopt,
after consultation with affected local agencies within the county, an
ordinance allowing the transfer of the base year value of property
that is located within another county in the State and is
substantially damaged or destroyed by a disaster, as declared by the
Governor, to comparable replacement property of equal or lesser value
that is located within the adopting county and is acquired or newly
constructed within three years of the substantial damage or
destruction of the original property as a replacement for that
property.  The scope and amount of the benefit provided to a property
owner by the transfer of base year value of property pursuant to
this paragraph shall not exceed the scope and amount of the benefit
provided to a property owner by the transfer of base year value of
property pursuant to subdivision (a).  For purposes of this
paragraph, "affected local agency" means any city, special district,
school district, or community college district that receives an
annual allocation of ad valorem property tax revenues.  This
paragraph shall apply to any comparable replacement property that is
acquired or newly constructed as a replacement for property
substantially damaged or destroyed by a disaster, as declared by the
Governor, occurring on or after October 20, 1991, and to the
determination of base year values for the 1991-92 fiscal year and
fiscal years thereafter.
   (f) For the purposes of subdivision (e):
   (1) Property is substantially damaged or destroyed if it sustains
physical damage amounting to more than 50 percent of its value
immediately before the disaster.  Damage includes a diminution in the
value of property as a result of restricted access caused by the
disaster.
   (2) Replacement property is comparable to the property
substantially damaged or destroyed if it is similar in size, utility,
and function to the property that it replaces, and if the fair
market value of the acquired property is comparable to the fair
market value of the replaced property prior to the disaster.
   (g) For purposes of subdivision (a), the terms "purchased" and
"change in ownership" do not include the purchase or transfer of real
property between spouses since March 1, 1975, including, but not
limited to, all of the following:
   (1) Transfers to a trustee for the beneficial use of a spouse, or
the surviving spouse of a deceased transferor, or by a trustee of
such a trust to the spouse of the trustor.
   (2) Transfers to a spouse that take effect upon the death of a
spouse.
   (3) Transfers to a spouse or former spouse in connection with a
property settlement agreement or decree of dissolution of a marriage
or legal separation.
   (4) The creation, transfer, or termination, solely between
spouses, of any coowner's interest.
   (5) The distribution of a legal entity's property to a spouse or
former spouse in exchange for the interest of the spouse in the legal
entity in connection with a property settlement agreement or a
decree of dissolution of a marriage or legal separation.
   (h) (1) For purposes of subdivision (a), the terms "purchased" and
"change in ownership" do not include the purchase or transfer of the
principal residence of the transferor in the case of a purchase or
transfer between parents and their children, as defined by the
Legislature, and the purchase or transfer of the first one million
dollars ($1,000,000) of the full cash value of all other real
property between parents and their children, as defined by the
Legislature.  This subdivision shall apply to both voluntary
transfers and transfers resulting from a court order or judicial
decree.
   (2) (A) Subject to subparagraph (B), commencing with purchases or
transfers that occur on or after the date upon which the measure
adding this paragraph becomes effective, the exclusion established by
paragraph (1) also applies to a purchase or transfer of real
property between grandparents and their grandchild or grandchildren,
as defined by the Legislature, that otherwise qualifies under
paragraph (1), if all of the parents of that grandchild or those
grandchildren, who qualify as the children of the grandparents, are
deceased as of the date of the purchase or transfer.
   (B) A purchase or transfer of a principal residence shall not be
excluded pursuant to subparagraph (A) if the transferee grandchild or
grandchildren also received a principal residence, or interest
therein, through another purchase or transfer that was excludable
pursuant to paragraph (1).  The full cash value of any real property,
other than a principal residence, that was transferred to the
grandchild or grandchildren pursuant to a purchase or transfer that
was excludable pursuant to paragraph (1), and the full cash value of
a principal residence that fails to qualify for exclusion as a result
of the preceding sentence, shall be included in applying, for
purposes of subparagraph (A), the one million dollar ($1,000,000)
full cash value limit specified in paragraph (1).
   (i) (1) Notwithstanding any other provision of this section, the
Legislature shall provide with respect to a qualified contaminated
property, as defined in paragraph (2), that either, but not both, of
the following shall apply:
   (A) (i) Subject to the limitation of clause (ii), the base year
value of the qualified contaminated property, as adjusted as
authorized by subdivision (b), may be transferred to a replacement
property that is acquired or newly constructed as a replacement for
the qualified contaminated property, if the replacement real property
has a fair market value that is equal to or less than the fair
market value of the qualified contaminated property if that property
were not contaminated and, except as otherwise provided by this
clause, is located within the same county.  The base year value of
the qualified contaminated property may be transferred to a
replacement real property located within another county if the board
of supervisors of that other county has, after consultation with the
affected local agencies within that county, adopted a resolution
authorizing an intercounty transfer of base year value as so
described.
   (ii) This subparagraph applies only to replacement property that
is acquired or newly constructed within five years after ownership in
the qualified contaminated property is sold or otherwise
transferred.
   (B) In the case in which the remediation of the environmental
problems on the qualified contaminated property requires the
destruction of, or results in substantial damage to, a structure
located on that property, the term "new construction" does not
include the repair of a substantially damaged structure, or the
construction of a structure replacing a destroyed structure on the
qualified contaminated property, performed after the remediation of
the environmental problems on that property, provided that the
repaired or replacement structure is similar in size, utility, and
function to the original structure.
   (2) For purposes of this subdivision, "qualified contaminated
property" means residential or nonresidential real property that is
all of the following:
   (A) In the case of residential real property, rendered
uninhabitable, and in the case of nonresidential real property,
rendered unusable, as the result of either environmental problems, in
the nature of and including, but not limited to, the presence of
toxic or hazardous materials, or the remediation of those
environmental problems, except where the existence of the
environmental problems was known to the owner, or to a related
individual or entity as described in paragraph (3), at the time the
real property was acquired or constructed.  For purposes of this
subparagraph, residential real property is "uninhabitable" if that
property, as a result of health hazards caused by or associated with
the environmental problems, is unfit for human habitation, and
nonresidential real property is "unusable" if that property, as a
result of health hazards caused by or associated with the
environmental problems, is unhealthy and unsuitable for occupancy.
   (B) Located on a site that has been designated as a toxic or
environmental hazard or as an environmental cleanup site by an agency
of the State of California or the federal government.
   (C) Real property that contains a structure or structures thereon
prior to the completion of environmental cleanup activities, and that
structure or structures are substantially damaged or destroyed as a
result of those environmental cleanup activities.
   (D) Stipulated by the lead governmental agency, with respect to
the environmental problems or environmental cleanup of the real
property, not to have been rendered uninhabitable or unusable, as
applicable, as described in subparagraph (A), by any act or omission
in which an owner of that real property participated or acquiesced.
   (3) It shall be rebuttably presumed that an owner of the real
property participated or acquiesced in any act or omission that
rendered the real property uninhabitable or unusable, as applicable,
if that owner is related to any individual or entity that committed
that act or omission in any of the following ways:
   (A) Is a spouse, parent, child, grandparent, grandchild, or
sibling of that individual.
   (B) Is a corporate parent, subsidiary, or affiliate of that
entity.
   (C) Is an owner of, or has control of, that entity.
   (D) Is owned or controlled by that entity.
   If this presumption is not overcome, the owner shall not receive
the relief provided for in subparagraph (A) or (B) of paragraph (1).
The presumption may be overcome by presentation of satisfactory
evidence to the assessor, who shall not be bound by the findings of
the lead governmental agency in determining whether the presumption
has been overcome.
   (4) This subdivision applies only to replacement property that is
acquired or constructed on or after January 1, 1995, and to property
repairs performed on or after that date.
   (j) Unless specifically provided otherwise, amendments to this
section adopted prior to November 1, 1988, shall be effective for
changes in ownership that occur, and new construction that is
completed, after the effective date of the amendment.  Unless
specifically provided otherwise, amendments to this section adopted
after November 1, 1988, shall be effective for changes in ownership
that occur, and new construction that is completed, on or after the
effective date of the amendment.



CALIFORNIA CONSTITUTION
ARTICLE 13A  [TAX LIMITATION]


Section 3.  From and after the effective date of this article, any
changes in state taxes enacted for the purpose of increasing revenues
collected pursuant thereto whether by increased rates or changes in
methods of computation must be imposed by an Act passed by not less
than two-thirds of all members elected to each of the two houses of
the Legislature, except that no new ad valorem taxes on real
property, or sales or transaction taxes on the sales of real property
may be imposed.



CALIFORNIA CONSTITUTION
ARTICLE 13A  [TAX LIMITATION]


Section 4.  Cities, Counties and special districts, by a two-thirds
vote of the qualified electors of such district, may impose special
taxes on such district, except ad valorem taxes on real property or a
transaction tax or sales tax on the sale of real property within
such City, County or special district.



CALIFORNIA CONSTITUTION
ARTICLE 13A  [TAX LIMITATION]


Section 5.  This article shall take effect for the tax year
beginning on July 1 following the passage of this Amendment, except
Section 3 which shall become effective upon the passage of this
article.



CALIFORNIA CONSTITUTION
ARTICLE 13A  [TAX LIMITATION]


Section 6.  If any section, part, clause, or phrase hereof is for
any reason held to be invalid or unconstitutional, the remaining
sections shall not be affected but will remain in full force and
effect.



CALIFORNIA CONSTITUTION
ARTICLE 13A  [TAX LIMITATION]


SEC. 7.  Section 3 of this article does not apply to the California
Children and Families First Act of 1998.