CORPORATION TAX. VOTE REQUIREMENTS. RESTRICTIONS AND LIMITATIONS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

CORPORATION TAX. VOTE REQUIREMENTS. RESTRICTIONS AND LIMITATIONS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Allows Legislature to repeal or amend, by the same vote requirement originally needed to enact it, any Corporation Tax credit, deduction, exemption, exclusion or special lower tax rate, and defines these as corporate tax preferences. Provides that new corporate tax preferences expire after five years, subject to limited re-enactment by Legislature. Requires that Legislature annually review such preferences. Requires that any additional revenues from repealing or amending such preferences be deposited in reserve fund; provides reserve fund to be used for specific purposes, not to increase state spending. Summary of estimate by Legislative Analyst of fiscal impact on state and local governments: Potentially significant state revenue increases resulting from reducing the legislative vote requirement necessary to eliminate or limit certain special corporation tax provisions. Any increases could be used to fund state\u27s current obligations, for tax reductions, and/or for increases in the state\u27s reserve fund. Fiscal impacts would depend on the composition and actions of future Legislatures. Summary of estimate by Director of Finance of fiscal impact on state and local governments: Potentially significant state revenue changes resulting from reducing the legislative vote requirement to eliminate or limit certain special corporation tax provisions. Any changes would affect funding of state\u27s current obligations, tax changes, and/or changes to the state\u27s reserve fund. The actual fiscal impacts would depend on the composition and actions of future Legislatures