State Income Tax Rebate.

STATE INCOME TAX REBATE. INITIATIVE STATUTE. The State Constitution requires tax revenues in excess of the state\u27s appropriations limit be returned. This initiative would implement this requirement by establishing an income tax rebate system. Excess revenues for 1986-87 would be returned by October 15, 1988 through personal income tax rebate of 15 percent of 1986 taxes, but not to exceed $300 for married couples filing joint returns, heads of household, surviving spouses and $150 for all others. Future excess revenues would be returned pursuant to similar formula but rebate limits could fluctuate depending upon amount of excess revenues. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Approximately $1.2 billion in rebates including interest would be available for distribution to taxpayers in October 1988 as a result of excess revenues attributable to 1986-87 fiscal year. Annual costs to the State General Fund for administering the rebate program would be approximately $4 million. Interest on the rebated revenues would also be a General Fund charge, estimated to be $110 million for the rebates to be distributed in October 1988