Title

Income Tax.

Attorney General No.

SA87RF0005

Secretary of State No.

399

Description

INCOME TAX. INITIATIVE STATUTE. The measure provides that starting with the taxable year beginning on or after January 1, 1988, the State shall impose a tax upon California residents equal to a percentage of the federal income tax on individuals in lieu of any other tax imposed by the state Personal Income Tax Law. Directs Governor to determine an initial percentage which will generate revenues equal to the current state income tax law. Thereafter, the Legislature will determine the percentage. Specifies an allocation formula for non-residents and part-year residents. Provides tax credits for certain taxes paid to other states. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Revenue received could be higher or lower depending upon accuracy of the percentage rate selected and the relative sensitivity of the federal tax structure to changes in personal income. Elimination of Renters Tax Credit would result in savings o?? $475 million annually. State administrative costs could be reduced by at least $11 million annually and state ??diting costs could be reduced by at least ?? annually.

Proponents

Paul Mccauley, C.P.A., 11726 San Vicente Boulevard, Suite 350 |C

Date

7-22-1987

Document Type

Initiative

Qualified

Failed to Qualify

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