TAXATION. SURTAX. INITIATIVE STATUTE. Levies a 10-percent 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 $0.50 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. Fiscal impact on local or state governments: Depending on exact amount of tax credits claimed in each year, estimated state revenue increases of $150 to $420 million in 1980-81, and $165 to $470 million in 1981-82 could occur. Under existing statutes, approximately one-half of increases would be distributed to local governments for improvement of public transit services.
Popular Vote Results
Y: 2821150; A: 44.3; N: 3544840; B: 55.7
TAXATION. SURTAX. California Proposition 11 (1980).