TAX RESTRUCTURING. DEFINITION OF TAX. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

TAX RESTRUCTURING. DEFINITION OF TAX. INITIATIVE CONSTITUTIONAL AMENDMENT AND ST A TVTE. Provides constitutional definition of tax to include any compulsory monetary charge for governmental purposes. Replaces California\u27s sales tax with value added sales tax. Exempts food, beverage, hygiene products, internet sales, and storage or use of personal property from taxation. Requires taxes on fuel to be charged according to value; limits uses of fuel tax proceeds. Provides that if fuel is taxed or a value added sales tax is imposed, those taxes are in lieu of utilities taxes and vehicle license fees. Modifies penalties for delinquent taxes and creates amnesty program. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: This measure would have the following major fiscal effects: (1) Major restructuring of state and local finances. (2) Major annual decrease in total state government revenue in the low billions of dollars and potential annual increases in local government revenues of a similar magnitude. (3) Unknown but potentially major changes in spending both by level of government and among program areas