Motor Vehicle Fuel Sales Tax

MOTOR VEHICLE FUEL SALES TAX. INITIATIVE STATUTE. Repeals present statutes imposing a sales tax on motor vehicle fuel and enacts in place thereof a statute exempting motor vehicle fuels from the sales tax. Fiscal impact: Adoption of proposal would reduce state sales tax receipts by $400,000,000 in 1980-81 and by $850,000,000 in 1981-82. Local sales tax revenue would be reduced by $100,000,000 in 1980-81 and $225,000,000 in 1981-82. State payments to local government, including schools, could be reduced up to $1.25 billion in 1981-82