2004 California Proposition 65

It was officially known as the Local Taxpayers and Public Safety Protection Act.

Local governments (cities and counties) in California primarily receive their revenue from three sources: property taxes, local sales taxes, and the vehicle license fees.

Proponents of the proposition ultimately used it as a bargaining tool to negotiate an agreement with Governor Arnold Schwarzenegger and the California State Legislature on protecting local government revenues.

The result was the compromise Proposition 1A on the same ballot, which provided more flexible terms and deferred its restrictions until 2006.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact: