All Articles
LAO Revenue Outlook Reflects Passage of Proposition 55. The figure below presents our estimates of Propositions 30 and 55 in our November 2016 Fiscal Outlook. Proposition 55—passed by the voters on November 8—extends the Proposition 30 (2012) personal income tax (PIT) increases on high income taxpayers. This results in increased PIT revenues beginning in 2018-19. Proposition 55 did not extend the Proposition 30 sales and use tax (SUT) increase, which will expire after December 31, 2016. Accordingly, we show a half-year effect of the Proposition 30 SUT in 2016-17 and no increased SUT revenues beginning in 2017-18.
Follow @LAOEconTax on Twitter for regular California economy and tax updates.