Taxation

TAXATION. INITIATIVE CONSTITUTIONAL AMENDMENT. Amends constitutional provisions concerning votes required to impose or increase taxes. Increase in any tax imposed by State will require two-thirds vote of each legislative house. Any general tax, a tax for general governmental purposes, imposed by local governments will require two-thirds vote approval of legislative body followed by majority vote of voters voting in election. Any special tax, defined as all other taxes, imposed by local governments will require two-thirds vote approval of voters. District transaction and use taxes will require majority voter approval. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This provision would make it somewhat more difficult to raise State taxes; however, it is not possible to determine the magnitude of the fiscal impact it would have on State revenues. Since the measure institutes popular vote requirement for new general purpose taxes, it is likely city governments will find it more difficult to impose such taxes in the future