Title

Sales Tax.

Attorney General No.

SA91RF0028

Secretary of State No.

560

Description

SALES TAX. INITIATIVE STATUTE. Repeals existing sales tax on snack foods and medicines. Limits imposition of new sales, use or excise tax on food, medicine and medical devices by state, and by local agencies, to extent such limitations are permitted by statutory enactment. Includes candy, confectionery, bottled water within definition of food which is exempt from sales tax. Limits imposition by state of such new taxes on necessary utilities as defined; excludes local governments from this limitation. Authorizes Legislature to expand definition of food, necessary utilities, medicine and medical devices entitled to exemption. Requires voter approval to restrict these definitions. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: By exempting specified foods, medicines and medical devices from sales tax, the measure will result in approximately a $265 million reduction in sales tax revenues in 1992-93 ($176 million to the State General Fund, $71 million local government sales tax revenue, and $18 million in reduced transfers of State special fund sales tax revenues to local government). In 1993-94, the total revenue losses would be approximately $520 million, shared between State and local government in proportions similar to 1992-93. These losses would increase in subsequent years. The measure could result in future revenue losses to the extent the State would have increased taxes on specified necessary utilities.

Proponents

Art Torres, 1250 Long Beach Ave., #224, Los Angeles, Ca 90021; Frank Hill, State Capitol, Room 4082, Sacramento, Ca 95814

Date

1-2-1992

Document Type

Initiative

Qualified

Failed to Qualify

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