How We Tax Ourselves

Current Opportunities

Reform measures that have qualified for November 2, 2010 ballot:

Legalize and tax marijuana in Prop.19:

• Information on Prop.19.
• Legislative Analyst's Office analysis of the fiscal impact of Prop.19.
• California's Democrats support legalizing and taxing marijuana.
• The American Medical Association recommends that the Federal government reevaluate marijuana restrictions.
• Some Attorney General candidates oppose Prop.19.
• Public Policy Institute of California (PPIC) poll reveals that Californians are divided over legalizing marijuana.

Increase vehicle license fees by $18 a year to fund state parks in Prop.21:

• Information on Prop.21.

Eliminate three business tax breaks in Prop.24:

• Information on Prop.24.
• Legislative Analyst's Office analysis of the fiscal impact of Prop.24.
• The California Teachers Association supports eliminating corporate tax breaks.
• A study conducted by the Center for Budget and Policy Priorities finds that cutting state corporate income taxes does not create new jobs.
• Conversely, a study conducted by the Rose Institute says Prop.24 will result in job losses.
• An article in the San Bernardino Sun discusses both sides of the Prop.24 argument.

Voter must give permission before any new taxes can be imposed in Prop.26:

• Information on Prop.26.
• The California Chamber of Commerce and Howard Jarvis Taxpayers Association both support Prop.26.
• Article in San Francisco Chronicle saying Prop.26 would allow oil, alcohol and tobacco industries to shift onto taxpayers the burden of paying for the pollution and public health impacts of their businesses.
• The Legislative Analyst's Office analysis of fiscal impact of Prop.26.

Reform measures that are under discussion:

Drop threshold for raising taxes from 2/3 to 50%

• California Majority Rule Campaign
• New York Times article on George Lakoff’s Initiative to reduce the voting threshold to pass the budget and to increase taxes from 2/3 to majority
• Article from League of California Citiesthat examines the two-thirds vote requirement and its role in state government

Change Prop. 13 so that only residential property, not commercial property, is protected against property tax reassessment.

• Article from Cal Tax Reform Association on various types of tax reform, including changing Prop 13 so that commercial properties are no longer protected from tax reassessment
• Article from the Public Policy Institute of California (PPIC) about the effects of Prop 13 - 30 years later
• Article from Public Policy Institute of California (PPIC) explaining how Prop 13 has changed the tax burden in California’s economy
• Article from Howard Jarvis Taxpayer Association about how Prop 13 is not the sole reason that California is in fiscal crisis
• California Policy Watch supports closing the tax loophole for commercial properties

Changes to sales tax – broaden the sales tax base by taxing more services Article from Board of Equalization about potential revenue from taxing services

• Information about taxing services from Institute of Governmental Studies (IGS)
• Article from Cal Tax Reform Association on various types of tax reform, including taxing services
• Article from California Taxpayers’ Association on taxing services
• Recommendations from the 2009 Commission on the 21st Century Economy (COTCE)

Changes recommended by other groups

• California Budget Project
• California Taxpayers’ Association
• Howard Jarvis Taxpayers Association