Exactions, Impact Fees, Service Charges and Property Taxes

by Diane G. Kindermann and Robert T. Yamachika

In a recent Proposition 218 case, Howard Jarvis Taxpayers Association v. City of Salinas (2002) 98 Cal.App.4th 1351, the Court of Appeal for the Sixth Appellate District held that a “storm water drainage fee” was illegally imposed by the City of Salinas. The plaintiff, Howard Jarvis Taxpayers Association (“HJTA”) contended that the storm drainage fee imposed by the City of Salinas was a “property-related” fee requiring voter approval. HJTA’s arguments were based on Proposition 218, the “Right to Vote on Taxes Act,” which was passed by the California voters in 1996. Proposition 218 added article XIII D, section 6(c) to the California Constitution, requiring notice for a public hearing and a vote for a proposed property-related fee or charge. If a majority of the affected property owners or two-thirds of the electorate in the affected area do not approve the fee, it may not be imposed.
Continue Reading Storm Drainage Fees are Property-Related Fees Subject to Proposition 218 Requirements