Results of 2018 State and Local Tax Ballot Initiatives November 6, 2018 Joseph Bishop-Henchman Jared Walczak Katherine Loughead Joseph Bishop-Henchman, Jared Walczak, Katherine Loughead Last month we covered top state tax ballot initiatives to watch. Here are the results, as of 9:30 AM on Wednesday. Further analysis to follow. Multiple Taxes Result Initiative For Against Colorado Amendment 73 raises the income tax and makes it progressive. 44.5% 55.5% Business Taxes Result Initiative For Against California – San Francisco Proposition C doubles the business gross receipts tax. Read our full analysis here. 59.9% 40.1% Oregon – Portland Measure 26-201 creates a 1 percent tax on retail sales for clean energy projects. Read our full analysis here. 64.6% 35.5% California – Mountain View Measure P imposes a new per employee business tax. Background on this measure here. 69.2% 30.8% Income Taxes Result Initiative For Against California Proposition 2 redirects money from California’s millionaire’s tax to homelessness prevention. 59.9% 40.1% Maine Question 1 raises income tax for high earners. Read our full analysis here. 36.6% 63.4% North Carolina Income Tax Cap Amendment lowers the maximum state income tax rate from 10 percent to 7 percent. 57.3% 42.7% Sales Taxes Result Initiative For Against Arizona Proposition 126 bans sales tax on services. 65.1% 34.9% California – Barstow Measure Q increases the sales tax from 7.75 percent to 8.75 percent. 60.1% 39.9% California – Carpinteria Measure X increases the sales tax from 7.75 percent to 9 percent. 55.0% 45.0% California – Santa Ana Measure X increases the sales tax from 7.75 percent to 9.25 percent. 56.5% 43.5% California – Santa Maria Measure U increases the sales tax from 8 percent to 9 percent. 71.9% 28.1% Colorado Proposition 110 increases the state sales tax from 2.9 percent to 3.52 percent for transportation. If both 109 (see below) and 110 pass, only the one with more votes will take effect. 40.3% 59.7% Georgia – Portion of Revenue from Outdoor Recreation Equipment Sales Tax Dedicated to Land Conservation Fund Amendment dedicates part of the sales tax for conservation. 82.8% 17.2% Georgia – School Sales Tax Referendums Amendment authorizes school district sales taxes. 71.2% 28.8% Nevada – Question 2 exempts feminine hygiene products. Read our full report on this issue here. 56.5% 43.5% Nevada – Question 4 directs the legislature to exempt medical equipment. 67.3% 32.7% Property Taxes Result Initiative For Against California Proposition 5 allows homeowners age 55 or older to transfer their tax assessment to a new home anywhere in the state. 41.8% 58.2% Florida Amendment 1 creates a homestead exemption on the portion of home values between $100,000 and $125,000. Requires 60% to pass. 58.1% 41.9% Florida Amendment 2 makes permanent the 10 percent cap on annual non-homestead assessment increases. Requires 60% to pass. 66.5% 33.5% Georgia Forest Land Conservation and Timberland Properties Amendment allows changes to the tax on conservation forest land. 62.1% 37.9% Louisiana – Amendment 5 allows special tax assessment for property of survivors of a person who died in the line of duty as an active duty member of the military, law enforcement, firefighter, or first responder. 71.5% 28.5% Louisiana – Amendment 6 requires reappraisals that increase value by over 50 percent be phased in over four years. 57.6% 42.4% Oklahoma Question 801 allows local voter-approved property tax levies to fund school operation as well as construction. 49.6% 50.4% Utah – Constitutional Amendment A changes active duty exemption eligibility from 200 days per calendar year to 200 days per 365-day period. 78.4% 21.4% Utah – Constitutional Amendment B exempts any private property leased by a state or local government. 27.6% 72.4% Virginia – Question 1 permits a surviving spouse of a disabled veteran to continue to receive exemption even if he or she moves. 70.9% 29.1% Virginia – Question 2 permits local governments to exempt parcels if flood improvements are made. 84.3% 15.7% Carbon Tax Result Initiative For Against Washington Initiative 1631 imposes a carbon tax as of January 2020, beginning at a rate of $15 per metric ton and increasing by $2 per year until all the state’s greenhouse gas reduction goals for 2035 are met and all those for 2050 are on track to be met. 43.7% 56.3% Soda Tax Result Initiative For Against Oregon Measure 103 bans consumption taxes (sales, excise, value-added, or gross receipts) on groceries, including soda. 42.9% 57.1% Washington Initiative 1634 bans new local taxes on groceries, including soda. Read our full analysis here. 54.8% 45.2% Gas Tax Result Initiative For Against California Proposition 6 reduces the state gas tax by 12 cents per gallon. Read our full analysis here. 44.7% 55.3% Louisiana Amendment 4 prevents gas tax revenues from being used for state police funding. 55.9% 44.1% Utah Nonbinding Opinion Question 1 asks if the state gasoline tax should be increased by 10 cents. 33.9% 66.1% Tobacco Tax Result Initiative For Against Montana Initiative 185 increases cigarette taxes by $2 a pack to cover Medicaid expansion and generate additional general fund revenue. 45.7% 54.3% South Dakota Initiated Measure 25 increases the cigarette tax from $1 to $2.53 per pack and raises the tax on other tobacco products from 35 percent to 55 percent. 44.9% 55.1% Marijuana Tax Result Initiative For Against Michigan Proposal 1 legalizes retail marijuana with 10 percent tax. 55.8% 44.2% Missouri – Amendment 2 legalizes medical marijuana with a 4 percent tax. If both Amendment 2 and 3 (below) pass, only the one with the higher vote takes effect. Read our full analysis here. 65.5% 34.5% Missouri – Amendment 3 legalizes medical marijuana with a 15 percent tax. If both Amendment 2 and 3 pass, only the one with the higher vote takes effect. Read our full analysis here. 31.4% 68.6% Missouri – Proposition C legalizes medical marijuana with a 2 percent tax. Read our full analysis here. 43.5% 56.5% North Dakota Measure 3 legalizes retail marijuana without setting a tax rate. 40.5% 59.5% Utah Proposition 2 legalizes medical marijuana, exempts it from sales tax, and requires the imposition of fees to cover state costs. 53.2% 46.8% Taxpayer Protections & Other Initiatives Result Initiative For Against Colorado Proposition 109 borrows $3.5 billion for transportation projects. If both 109 and 110 pass, only the one with more votes will take effect. 38.7% 61.3% Colorado Proposition 110 increases the sales tax to fund transportation projects. If both 109 and 110 pass, only the one with more votes will take effect. 40.3% 59.7% Florida Amendment 5 requires new taxes to be approved by two-thirds of each legislative chamber. Requires 60% to pass. 65.8% 34.2% Indiana Public Question 1 requires the state to adopt a balanced budget each year. 71.9% 28.1% Maryland Gambling Revenue Dedicated to Education Lockbox Amendment dedicates gaming revenue to education in phases by 2023. 87.7% 12.3% New Hampshire Taxpayer Standing to Bring Legal Actions Against Government Amendment permits taxpayers to challenge unauthorized spending of public funds. 82.8% 17.2% Oklahoma Question 800 requires 5 percent of the state’s oil and gas development tax revenue go into an investment fund. 42.8% 57.2% Oregon Measure 104 expands the three-fifths legislative vote requirement to raise taxes to include raising fees. 35.0% 65.0% Stay informed on the tax policies impacting you. 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