Sales And Use Tax Elimination

SALES AND USE TAX ELIMINATION. INITIATIVE CONSTITUTIONAL AMENDMENT. Adds section to Constitution providing that no sales or use tax shall ever be collected (received or obtained) from any person in the State. Repeals existing provision that permits legislation authorizing counties, cities and counties, and cities, upon certain conditions, to apportion between them local sales and use taxes collected for them by the State. Fiscal impact on state and local government: In 1982-83: (1) State General Fund revenues would be reduced approximately $9.2 billion, (2) State Transportation Fund (Transportation Planning and Development Account) revenues would be reduced approximately $155 million, and (3) local government revenues would be reduced approximately $2.6 billion. These estimated annual revenue reductions would increase over time. State administrative costs would be reduced a net of approximately $60 million annually. Local Governments and schools would have a significant reduction in their state aid