Tax Policy On the Ballot in 9 States

Voters in nine states will be able to cast votes on ballot measures that’d impact tax policy in their state. Here’s a look at the ballot measures:

California Proposition 6, would repeal the gas and diesel tax increase and vehicle fees that were enacted in 2017 and require voter approval for future fuel tax and vehicle fee increases. The gas tax bill that Proposition 6 would repeal, the Road Repair and Accountability Act of 2017 (RRAA), raised California’s gas tax by 12 cents a gallon on gasoline, and 20 cents a gallon on diesel. It also imposed a new annual vehicle fee ranging from $25-175, depending on a vehicle’s value. Finally, it added an $100 annual fee on electric cars that don’t burn gas.

Arizona Proposition 126 would amend the state constitution to prohibit state and local governments from enacting new taxes or increasing tax rates in effect at the end of 2017 on services performed in Arizona. Services include personal services (i.e., salon services, pet grooming, amusement, fitness), financial services (i.e., real estate transactions, banking, investment management), and doctor’s visits.

The North Carolina Income Tax Cap Amendment would amend the state’s constitution to lower the state’s maximum allowable income tax rate from 10 to 7 percent.

Florida Amendment 5 would amend the state constitution to require a two-thirds (supermajority) vote of the state legislature to enact new taxes or fees, or increase existing ones. That would require the control of 27 seats in the state Senate and 80 seats in the state House. Currently, the state legislature can enact new taxes or fees or increase existing ones, with the exception of the corporate income tax, with a simple majority vote in each chamber.

Oregon Measure 104 would amend the state constitution to include changes to tax exemptions, credits, and deductions that result in increased revenue under the definition of “raising revenue”. Oregon’s Constitution requires a three-fifths vote by each chamber of the legislature to raise taxes, but a state Supreme Court ruling excluded bills to reduce tax exemptions or credits from that requirement. This initiative would extend the Constitution’s three-fifths vote requirement to bills reducing tax breaks that increase revenue to the state.

Oregon’s Measure 103 would amend the state constitution to prohibit the enactment or increase of any state or local tax, fee, or assessment on the sale of groceries. The ban would apply retroactively to any taxes put in place on or after October 1, 2017. Groceries would be defined as “raw or processed food or beverages intended for human consumption” excluding alcohol, marijuana, and tobacco ― language which would preclude local taxes on sugary drinks.

Washington Initiative 1634 would prohibit local governments from imposing any new tax, fee, or other assessment on groceries on or after January 15, 2018. Groceries would be defined as “any raw or processed food or beverage, or any ingredient thereof, intended for human consumption”. Alcohol, marijuana, and tobacco wouldn’t qualify as grocery items.

New Hampshire Question 1 would amend the New Hampshire Constitution to give taxpayers the right to take legal action against the state or local government where they resident to declare that the government spent, or has approved spending, public funds in violation of a law. Such legal actions would begin in the New Hampshire Superior Courts.

Colorado Amendment 73 would change the state’s income tax system from a flat tax rate of 4.63% to a progressive income tax system with five brackets for individuals and families. The brackets would be as follows:

• $0 - $150,000: 4.63% (no change)
• $150,001 - $200,000: 5%
• $200,001 - $300,000: 6%
• $300,001 - $500,000: 7%
• $500,001 and above: 8.25%

Nevada Question 2 would exempt feminine hygiene products from state and local sales taxes. “Feminine hygiene products” would be defined as sanitary napkins and tampons.

Nevada Question 4 would amend the state constitution to require the state legislature to exempt durable medical equipment, oxygen delivery equipment, and mobility enhancing equipment prescribed for human use by a licensed health care provider from the state sales and use tax.

— Eric Revell & Lorelei Yang

(Photo Credit: iStock.com / alfexe)