Attorney General No.

SA2003RF0019

Secretary of State No.

989

Description

CORPORATION TAX. VOTE REQUIREMENTS. RESTRICTIONS AND LIMITATIONS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Allows Legislature to repeal or amend, by the same vote requirement originally needed to enact it, any Corporation Tax credit, deduction, exemption, exclusion or special lower tax rate, and defines these as "corporate tax preferences." Provides that new corporate tax preferences expire after five years, subject to limited re-enactment by Legislature. Requires that Legislature annually review such preferences. Requires that any additional revenues from repealing or amending such preferences be deposited in reserve fund; provides reserve fund to be used for specific purposes, not to increase state spending. Summary of estimate by Legislative Analyst of fiscal impact on state and local governments: Potentially significant state revenue increases resulting from reducing the legislative vote requirement necessary to eliminate or limit certain special corporation tax provisions. Any increases could be used to fund state's current obligations, for tax reductions, and/or for increases in the state's reserve fund. Fiscal impacts would depend on the composition and actions of future Legislatures. Summary of estimate by Director of Finance of fiscal impact on state and local governments: Potentially significant state revenue changes resulting from reducing the legislative vote requirement to eliminate or limit certain special corporation tax provisions. Any changes would affect funding of state's current obligations, tax changes, and/or changes to the state's reserve fund. The actual fiscal impacts would depend on the composition and actions of future Legislatures.

Proponents

Lenny Goldberg and Roy Ulrich, c/o Lenny Goldberg and Associates, 926 J Street, Suite 710, Sacramento, CA 95814, (916) 446-4300

Date

7-3-2003

Document Type

Initiative

Qualified

Failed to Qualify

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