Title

Sales Tax.

Attorney General No.

SA86RF0009

Secretary of State No.

387

Description

SALES TAX. INITIATIVE STATUTE. Under current statutes the state retail sales tax rate (excluding local sales taxes) is 4 3/4 percent. This measure fixes that rate as the maximum and provides that it shall be reduced by 1/4 percent for each $520 million in the State General Fund in excess of the amount needed to cover current lawful state expenses as determined by the Director of Finance each month. Funding of up to $100 million in a contingency reserve is considered lawful expenses. Rate reduction applicable until General Fund receipts insufficient to satisfy state expenditures. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: No estimate of the measure's fiscal impact can be made. The measure's wording is not sufficiently clear on how excess monies are to be calculated. While certain interpretations could result in a reduction in revenues, other interpretations could result in no fiscal impact at all. If rate reductions are triggered, potentially unknown costs would be incurred in implementing such changes.

Proponents

Francis X. Hoffman Attorney At Law, 727 South Harbor Blvd., Anaheim, California 92805 (714) 774-7333

Date

10-9-1986

Document Type

Initiative

Qualified

Failed to Qualify

Recommended Citation

Sales Tax. California Initiative 387 (1986).
https://repository.uclawsf.edu/ca_ballot_inits/552