Chief Justice Patricia Guerrero, right, speaks next to Associate Justice Carol A. Corrigan at the California Supreme Court in San Francisco, on May 8, 2024. The court heard arguments about whether to remove a tax limit measure from the November ballot. Photo by Jeff Chiu, AP Photo Pool

Of the 11 measures now on California’s November ballot (one to add a personal finance class to high school graduation requirements qualified Wednesday), two competing ones focus on taxes — specifically who can raise them and how many votes should be required.

On one side, explains CalMatters Capitol reporter Alexei Koseff, is a coalition led by the California Business Roundtable, which has qualified a measure that would require the Legislature to seek approval from the voters for any new or higher state tax and would also increase the margin to pass a voter-initiated local special tax from a simple majority to two-thirds.

On the other side: Democratic leaders in the Legislature, who put another measure before voters that would turn the table on the business one and require it to get a two-thirds majority to pass.

Not only that, but Gov. Gavin Newsom and Democratic officials sued to kick the business anti-tax measure off the ballot entirely. On Wednesday, the state Supreme Court heard arguments in that case.

Alexei watched the hour-long hearing and noticed some key points:

A fundamental change: One of the main arguments made by the state’s lawyer against the business measure is that it would radically change how the government works. The Legislature always had “the supreme power of taxation,” Margaret Prinzing, the lawyer, told the justices. But this would revoke this authority “for the first time in the history of California.” Allowing voters instead of experts to decide how the state can raise revenue could also restrict the government’s ability to respond to fiscal emergencies, she said.
Power to the people: But the business group, represented by lawyer Thomas Hiltachk, argued that the Legislature has no unilateral power to impose taxes: “Our constitution, since its inception, has stated that all political power is inherent in the people.” Proponents also say the measure is necessary to push back against actions by lawmakers and the courts that have weakened previous voter-approved tax accountability measures.

It’s unclear how the justices will rule in the next few weeks. While they appeared sympathetic to the state’s concerns about the initiative’s impact, they also questioned whether it’s appropriate to take the decision away from voters.

Republicans, meanwhile, are accusing Democrats of doing just that.

Assembly GOP leader James Gallagher, in a Wednesday statement: “Democrats’ lawsuit is the height of hypocrisy and a disgusting attempt to silence the people they are supposed to represent. Californians are fed up with paying the highest taxes in the country and having almost nothing to show for it.”

Read more on the issue in Alexei’s story.