Attorney General No.
Secretary of State No.
TAXATION OF FOOD PRODUCTS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Amends Constitution to prohibit state and local governments from imposing sales or use taxes on food products which are exempt from such taxation under existing statutes or this initiative. Adds statute exempting candy, bottled water, and snack foods from sales and use taxes. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The exemption from sales and use taxes of candy, bottled water, and snack foods would reduce sales and use tax revenues in fiscal year 1992-93 by approximately $223 million (assuming the state's temporary 0.5% sales tax is discontinued on January 1, 1993). Of this amount the state would lose approximately $150 million and local governments $73 million. In each subsequent year the revenue loss would total approximately $446 million, $300 million to the state and $146 million to local governments.
Richard E. Floyd Lobby Annex, 1029 "K" Street, #36, Sacramento, California 95814 (916) 445-0965
Taxation Of Food Products. California Initiative 547 (1991).