Secretary of State No.
TAXATION. INITIATIVE STATUTE. Levies a 10% surtax on the business income from California sources of energy businesses (except public utilities) whose principal activity is the obtaining, processing, distributing or marketing of oil, gas, coal, or uranium. Allows a tax credit against surtax of $.50 for every dollar invested in California after January 1, 1979 to increase the production or refining of California crude oil or gas over 1978 base levels. Requires that surtax proceeds be used to fund increased bus and rail service for Californians and to develop alternative transportation fuels. Prohibits businesses from passing surtax on to consumers. Financial impact: Increase in state revenues of $125 million to $400 million depending upon extent to which tax credit is utilized. No significant impact on state expenditures. No impact on local government revenues or expenditures.
Mr. Bill Press, 2150 Markham Way, Sacramento, Ca 95818
Taxation California Initiative 209 (1979).