Secretary of State No.
TAXATION. INITIATIVE CONSTITUTIONAL AMENDMENT. Adds section 26.5 to article XIII of the constitution to provide that taxes on or measured by income which are imposed under the Personal Income Tax Law or successor law shall not exceed 50% of those rates in effect for the 1978 taxable year. Requires the Legislature to provide a system for adjusting personal income tax brackets to reflect annual changes in the California Consumer Price Index or successor index. Adds subdivision (s) to section 3 of article XIII to provide that business inventories are exempt from property taxation. Financial impact: Initial reduction of State tax revenues of approximately $5.1 billion in fiscal year 1980-81; continuing reduction of State tax revenues (approximately $4.3 billion in fiscal year 1981-82) thereafter. Reduction of local revenues by approximately $520 million annually. Reduction of State expenditures by approximately $260 million annually.
Mr. Howard Jarvis, 6363 Wilshire Blvd., Suite 350, Los Angeles, Ca 90048
Taxation California Initiative 202 (1979).