Single Tax.

SINGLE TAX. INITIATIVE CONSTITUTIONAL AMENDMENT. Eliminates state and local income and property taxes. Taxes persons and businesses for each exchange or transfer of goods, property, or services by sale, lease, rental or barter. The maximum tax rate is 6%. Exempts employee compensation, retirement, disability, Social Security, dividend, and interest income. Provides for 3% tax in first year. Local 1% maximum tax on transactions may be authorized by two-thirds majority of local voters for no more than five years. Creates Revenue Department administered by State Treasurer. Requires quarterly tax returns. Two-thirds vote required to amend or repeal measure. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: The fiscal impact would depend on how the measure is implemented. Likely major effects are: little or no effect on total governmental revenues in the near term; in the longer-term, unknown effects on both total revenues and revenues to individual governmental entities; near-term state costs and local savings in tax administration, with longer-term state and local savings in the hundreds of millions of dollars annually