According to a story in State TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Today®, voters in California will most likely have the option to increase taxes this November. Cigarette taxes, corporate income taxes, oil severance taxes and real estate taxes could all be increased if ballot measures are approved. From State Tax Today® (subscription required):
“Health and hospital groups have submitted signatures to place on the ballot a measure that would increase the cigarette tax by 13 cents per cigarette, or $2.60 per pack, and by an equivalent amount for other tobacco products.
Many environmental and business groups submitted signatures for a measure to impose a severance tax on oil production in California, with a graduated tax rate based on the prevailing market prices of oil. The tax would run until it raises $4 billion, which is estimated to take about 10 years.
A third measure for which signatures have been submitted would enact a tax of $50 per real estate parcel to pay for education.
The fourth expected initiative is the Clean Money and Fair Elections Act, which would establish public election financing by increasing taxes on corporations and financial institutions from 8.85 percent to 9.05 percent.”
It is important to note that California’s state/local tax burden in 2006 is estimated to equal 10.9% of income and stands at 15th highest nationally. Californians pay $4,451 per-capita in state and local taxes. Even outside the hotly contested gubernatorial race, it appears residents of the Golden State will have several additional decisions, which will be important for the future of the state.
To learn more about taxes in California, click here.
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