CalChamber Board Opposes ACA 1, New Gubernatorial Recall Effort

At their quarterly meeting last week, the California Chamber of Commerce Board of Directors voted to oppose both ACA 1 and a recently announced effort to recall Governor Gavin Newsom.

ACA 1

The CalChamber Board voted on March 8 to oppose ACA 1 (Aguiar-Curry; D-Winters) because the measure makes it easier for local governments to increase various taxes, including sales taxes and property taxes. The measure would lower the supermajority vote requirement from a two-thirds vote (66.67%) to 55%.

The California Legislature passed ACA 1 during the 2023 legislative session, making the constitutional amendment eligible for the November 2024 ballot.

The CalChamber Board voted to oppose ACA 1 because it creates a significant exception to Proposition 13. If passed, it would open the door for property tax increases as well as local government special taxes, making California less affordable for working families and renters.

Increasing property taxes would add significantly to the cost of owning or leasing business property. A March 2022 Public Policy Institute of California poll found that 62% of Californians believe state and local taxes are too high. By paving the way for higher housing costs and consumer costs, this measure would harm those it seeks to help.

The author of ACA 1 has introduced a bill to potentially amend the measure before it goes to the voters.

Recall Effort

The CalChamber Board of Directors also voted to oppose the recently announced effort to recall Governor Newsom. The basis for opposition was rooted in the timing of the effort, the cost to Californians and misuse of the recall process.