Beck

INTRODUCTION

In 2018, the voters of the City of Canyon Lake (the City) extended a utility users’ tax on water and sewer services (UUT). The UUT was imposed on every person in the City using water that was transported and delivered through a pipeline distribution system. Some of the revenues from the UUT contributed to the City’s general fund budget and were intended to fund police and fire services, as they had since the UUT was initially imposed in 2014. City resident Richard Beck filed a combined petition for writ of mandate and complaint for declaratory relief challenging the UUT as violating the state constitution. The superior court granted the requested relief after it concluded the UUT violates sections 3 and 6 of article XIII D of

the California Constitution.1 The City appeals this judgment, raising four contentions. First, the City contends the UUT is not governed by article XIII D because the City does not assess it “as an incident of property ownership.” The City next contends the UUT is not a “fee or charge” governed by article XIII D and is instead a “general tax,” so article XIII D, section 6’s requirements do not apply. The City also contends that the UUT does not…