Trade Charge. State And Local Taxes.

TRADE CHARGE. STATE AND LOCAL TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. With limited exceptions, phases out existing taxes and fees by July 1, 1992. Amends state Constitution to impose up to 1% trade charge by July 1, 1992 on value of property or services traded. Governmental expenditures limited to annual revenues from trade charge, not to exceed $90 billion or $3000 per capita. Prohibits issuance of bonds after July 1, 1992. Requires revenues to governments from fines, penalties, rents and leases be distributed to voters. Allocates revenues between state and local governments based on 1989-90 allocation, with later adjustments for population. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Complete estimate is impossible without resolution of ambiguous terms and resolution of potential legal issues. However, revenue limits probably would reduce yearly state and local spending by tens of billions of dollars. Would impact allocation of resources among state and local jurisdictions, and their growth rates, compared to existing law