SPECIAL REPORT / ELECTION PREVIEW : DECISION ’94 / A Voter’s Guide to State and Local Elections : Propositions : PROP. 176

What it is: This measure would prohibit cities and counties from requiring nonprofit organizations, such as churches and charities, to pay business license taxes or fees if the tax is calculated according to an organization’s income or gross receipts. The measure does not protect nonprofit organizations if local governments use other measures to calculate the levy. So far these distinctions are moot because local governments in California have not imposed taxes or fees on business licenses issued to nonprofit organizations.

Arguments for: Passage of the measure would assure nonprofit organizations the same protection against having to pay taxes that they already receive under federal and state laws. Proposition 176 would close the loophole by which local governments could, if they chose, impose a tax.

Arguments against: The measure unfairly preempts the authority of local governments to levy taxes. Particularly in recent times, when the state has cut back on revenues made available to local governments, cities and counties can ill afford to surrender taxing authority.

Who supports it: State Sen. David A. Roberti (D-Van Nuys), the head of United Way of California, the head of the California Council of Police and Sheriffs.

Who opposes it: The League of California Cities and Gary B. Wesley, a San Jose attorney.