State Taxes.

STATE TAXES. INITIATIVE STATUTE. • Increases state tax rates for top personal income taxpayers. • Temporarily suspends indexing on top personal income tax brackets. • Increases income tax rates for corporations and premium tax rates on insurers. • Defines corporate income to include specified excess employee compensation. • Increases tax liability of banks and corporations doing business within and outside California. • Provides for reappraisal of most business-owned real property upon specified change in ownership interests. • Imposes new oil severance tax. • Changes tax rules related to oil and gas production. • Repeals 1991 sales tax increases. • Provides for renters\u27 tax credits. Summary of Legislative Analyst\u27s Estimate of Net State and Local Government Fiscal Impact: • Increases state tax revenues by roughly $340 million in 1992-93, and $210 million annually through 1995-96. Additional annual revenue increases of roughly $1 billion beginning in 1996-97. • Replaces state expenditures on schools with increased local property tax revenue of $350 million to $700 million annually beginning in 1993-94. • Increases property tax revenue to local governments by $750 million to $1.4 billion annually, beginning in 1993-94. Reduces sales tax revenue to local governments by about $95 million in 1992-93 and $200 million annually thereafter. • The actual fiscal impact could differ significantly from these estimates, depending on how individuals and businesses respond to the measure\u27s tax changes