Attorney General No.

SA2005RF0029

Secretary of State No.

1104

Description

Provides that corporate tax preferences, as defined, may be repealed/amended by same percentage vote of Legislature as was needed to create them. Requires additional revenues generated by repeal/amendment of post-January 1, 1985 corporate tax preferences be deposited in Prudent State Reserve Fund, with spending from Fund permitted only when state revenues are insufficient to meet state obligations at prior-year levels or in Governor-declared emergencies. Provides that statutes creating or expanding corporate tax preferences enacted after January 1, 2005, are repealed in five years unless reenacted. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure would result in potentially significant state revenue increases resulting from reducing the legislative vote requirement necessary to eliminate or limit certain special corporation tax provisions. Any increases would go into a state reserve fund, where they could only be used to fund current service levels or in response to a state of emergency. Fiscal impacts would depend on the actions of future Legislatures.

Proponents

Roberta B. Johansen, James C. Harrison

Date

3-11-2005

Document Type

Initiative

Qualified

Failed to Qualify

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