Attorney General No.

SA93RF0014

Secretary of State No.

610

Description

CONSTITUTIONAL TAX RATE. INITIATIVE CONSTITUTIONAL AMENDMENT. Establishes constitutional tax rate of 9.5%; imposes tax at twice constitutional tax rate on independent contractors; imposes tax at constitutional tax rate on businesses; imposes tax at constitutional tax rate on taxable income of individuals. Defines taxable income. Repeals Article XIII of California Constitution authorizing taxation of property, banks, corporations, alcoholic beverages and insurance companies. Imposes fiduciary duty on Governor and Legislature to implement legislation which does not decrease/increase revenue from prior years. Imposes criminal penalties for interference with implementation. Requires state tax increases to be passed by voters. Contains other vote requirements. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Annual tax and revenue losses to state and local governments from elimination of existing taxes of up to $81 billion on a full-year basis; uncertain tax revenue gains to state and local governments, roughly estimated at $81 billion on a full year basis, commencing 1995-96. Increased costs to the state General Fund of approximately $11.2 billion to replace K-14 school district property tax losses, potentially offset by reduced state funding for schools if state General Fund revenues are reduced by this measure. Increased costs to counties of potentially several hundreds of millions of dollars to administer the taxes established by measure, partially offset by savings to state and other local governments from the elimination of some existing taxes.

Proponents

Edward J. (Ted) Costa Major General Sid Novaresi (Usaf, Retired) People'S Advocate, 3385 Arden Way, Sacramento, Ca 95825 (916) 482-6175

Date

12-1-1993

Document Type

Initiative

Qualified

Failed to Qualify

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