election results for state, local tax matters provided

according to unofficial results, voters in washington have approved a rollback of tax and fee increases and limits on increases in property valuation, louisiana voters have rejected tax reform proposals, arizonans have voted to increase tax rates to support education, and voters in california have rejected a proposal to require a two-thirds vote of the state legislature to approve various state and local fees. the complete results for these and other state and local tax ballot items are discussed below.

alabama

voters approve school tax amendment: according to unofficial results, voters approved proposed amendment 4, which amends the alabama constitution to remove the requirement that district school real property taxes can only be voted on or collected in counties that impose a special county school tax. (proposed amendment 4, approved by voters at the november 7, 2000 general election.)

voters reject county tax increases: according to unofficial results, voters rejected proposed amendment 14, which would have amended the alabama constitution to allow winston county to assess all taxable property in the county with an additional tax at the rate of three mills per dollar of assessed value. the additional revenue would have been used for maintenance of public roads and support of volunteer fire departments. although the proposed amendment was approved state-wide, it was rejected by voters in the county. (proposed amendment 14, rejected by voters at the november 7, 2000 general election.)

also according to unofficial results, voters rejected a proposed amendment to the alabama constitution that would have allowed a property tax levy on all taxable property in winston county, alabama, at the rate of 1 mill per dollar of assessed value. the proceeds of the property tax would have been placed in the county general fund for public health purposes. (proposed amendment (h.b. 771, laws 2000), rejected by voters at the november 7, 2000 general election.)

according to unofficial results, voters rejected proposed amendment 8, which would have amended the alabama constitution to allow fayette county to assess all taxable property in the county with an additional tax at the rate of three mills per dollar of assessed value. the additional revenue would have been used for maintenance and support of fire protection and rescue squads. although the proposed amendment was approved state-wide, it was rejected by voters in the county. (proposed amendment 8, rejected by voters at the november 7, 2000 general election.)

according to unofficial results, voters rejected a proposed amendment to the alabama constitution that would have allowed a property tax levy on all taxable property in choctaw county, alabama, at the rate of 8 mills per dollar of assessed value. the proceeds of the property tax would have been placed in the county road and bridge fund. (proposed amendment (s.b. 546, laws 2000), rejected by voters at the november 7, 2000 general election.)

voters approve chilton county tax increase: according to unofficial results, voters approved a proposed amendment to the alabama constitution that increases the special property tax levy on property outside of the corporate limits of municipalities in chilton county, alabama, to 4 mills per dollar of assessed value. as a result of the approval of this amendment, amendment 402 of the alabama constitution, which levied the special property tax at 2.5 mills, is repealed. however, the levy on property used to generate electrical energy remains at 2.5 mills. the proceeds of the special property tax must be used for fire, medical, and emergency services in the unincorporated areas of the county. the amendment and repeal are effective beginning december 1, 2000. (proposed amendment (h.b. 42, laws 2000), approved by voters at the november 7, 2000 general election.)

alaska

voters reject tax cap: according to unofficial results, voters rejected a ballot initiative which would have limited municipal assessment values for alaska property tax purposes to 1% of the assessed value of the property (10 mills) and restricted assessment increases to the rate of inflation as shown by the consumer price index.

further, the restriction would not have allowed the assessed value of the property to be raised in excess of 2% in any given year. also, any newly constructed property or property that was sold, purchased, or changed ownership would not have been assessed at its full and true value until the january 1 following the sale, purchase, or change of ownership. (ballot initiative 99ptar, rejected by voters at the november 7, 2000 general election.)

arizona

voters approve tax increase for education: according to unofficial results, arizona voters approved proposition 301, which will increase arizona transaction privilege (sales) and use tax rates by 0.6%, effective from june 1, 2001, through june 30, 2021, for the purpose of supporting education in arizona.

as a result of the voter approval of the transaction privilege (sales) and use tax rate increase, legislation that was contingent on that approval (s.b. 1007, laws 2000) and that enacts a new arizona personal income tax credit to mitigate the effect of the transaction privilege (sales) and use tax rate increase also takes effect, applicable to tax years beginning after 2000. the new credit will be available to taxpayers who are not claimed as dependents by other taxpayers and whose federal adjusted gross income does not exceed $25,000, for a married couple or a single person filing as head of household, or $12,500, for a single person or a married person filing separately.

the credit amount can not exceed $25 for an arizona resident for whom a personal or dependent exemption is allowed for arizona personal income tax purposes, and may not exceed $100 for all persons in the claimant's household. if an allowable credit amount exceeds a claimant's tax liability, the excess amount may be refunded to the claimant, and a person can qualify for and claim a refund of the credit amount even if the claimant has no arizona personal income tax liability for the tax year and is not required to file an arizona personal income tax return.

as a further result of voter approval of the transaction privilege (sales) and use tax rate increase, for tax years beginning after 2000, the arizona personal income tax credit claimable by spouses filing joint returns for contributions to organizations that give private school scholarships or tuition grants and the credit for contributions to public schools for extracurricular activities are increased.

specifically, the maximum allowable arizona personal income tax credit for contributions to organizations that give private school scholarships or tuition grants is raised, for spouses filing a joint return, from $500 to $625. the maximum allowable credit for contributions to public schools for extracurricular activities is also increased, for spouses filing a joint return, from $200 to $250. (proposition 301, approved by voters at the november 7, 2000 general election; s.b. 1007, laws 2000, 5th special session, applicable as noted above.)

voters approve cemetery exemption: according to unofficial results, arizona voters approved proposition 105, which amends article ix, §2 of the arizona constitution to allow the legislature to exempt from arizona property tax all property of cemeteries that is set apart and used to inter deceased human beings. (proposition 105 (s.c.r. 1010), approved by voters at the november 7, 2000 general election.)

valuation provisions for elderly approved: according to unofficial results, arizona voters approved proposition 104, which amends article ix, §18 of the arizona constitution to allow the elderly to apply for property valuation protection on their primary residence for purposes of arizona property tax.

an applicant must be at least 65 years old, have resided in the primary residence for at least two years, and have total income from all sources of not more than four times the social security supplemental security income benefit rate. if the property is owned by two or more persons, including spouses, at least one of the owners must be at least 65 years old and the combined income of all owners must not exceed five times the social security supplemental security income benefit rate.

if the valuation protection is approved, the value of the primary residence will remain fixed at the full cash value in effect for the year the application is filed. the valuation protection may include up to 10 acres of undeveloped appurtenant land and is subject to triennial review by the assessor to determine continued eligibility. (proposition 104 (h.c.r. 2028), approved by voters at the november 7, 2000 general election.)

maricopa county voters approve tourism taxes: according to unofficial results, maricopa county, arizona voters approved proposition 302, which replaces the existing car rental surcharge of $2.50 per rental contract with a surcharge of 3.25% of the amount of each rental contract, with a minimum surcharge of $2.50. in addition, proposition 302 imposes a county hotel tax at the rate of 1%. both taxes are effective march 1, 2001, and expire february 28, 2031. (proposition 302, approved by voters at the november 7, 2000 general election.)

voters approve terminology change in exemption: according to unofficial results, arizona voters approved proposition 101, which amends article ix, §2.2 of the arizona constitution to make the terms used in the property tax exemption for disabled persons gender neutral. (proposition 101 (h.c.r. 2004), approved by voters at the november 7, 2000 general election.)

arkansas

tax relief measure approved: according to unofficial results, arkansas voters approved a proposed amendment that limits increases in the assessed value of homesteads, for property tax purposes, to 5% if the parcel is the taxpayer's principal place of residence in counties that conducted countywide reappraisals between 1986 and 2000. the approved initiative also provides homeowners with a property tax credit of at least $300. (proposed amendment 2 (h.j.r. 1015, laws 1999), approved by voters at the november 7, 2000 general election.)

california

voters reject two-thirds vote preservation act: according to unofficial results, voters rejected proposition 37, an initiative that would have amended the california constitution to (1) redefine as general or special taxes any compulsory fees enacted by state or local governments after july 1, 1999, to monitor, study or mitigate societal or economic effects of activity where such fees impose no regulatory obligation on the payor; (2) redefine as taxes regulatory fees that exceed the reasonable cost of regulating the activity for which such fees are charged; and (3) require a two-thirds vote of the state legislature to approve such fees.

the amendment would have excluded from the two-thirds majority vote requirement any fee authorized by law before july 1, 1999, or any increase in such fees attributable to inflation. the amendment would also have excluded any increase in such fees attributable to increased workload not resulting from expansion of the class of activities to which the fee applied before july 1, 1999. monies recoverable as damages, remedial expenses, or penalties arising from a specific event would also have been excluded. (proposition 37, rejected by the voters at the november 7, 2000 general election.)

san francisco initiative rejected: according to unoffical results, san francisco voters rejected an initiative that would have (1) set the rate of the payroll expense tax paid by businesses for the 2000 tax year at 1.7%; (2) starting with the 2001 tax year, adjusted the annual payroll expense tax rate between 1.4% and 1.7% depending upon increases or decreases in business tax revenue; (3) eliminated the gross receipts method of calculating the business tax; (4) awarded a refund or credit of such gross-receipts based taxes paid during the 1997, 1998, and 1999 tax years to the extent that such payments exceeded businesses' tax liability for those years as measured by their payroll expense; (5) reduced the registration fee for most businesses; (6) retained the existing small business exemption and adjusted such exemption to eliminate adverse impacts on small businesses due to changes in the underlying tax rate; (7) retained the existing enterprise zone tax credit, new jobs tax credit, summer youth employment tax credit, garment manufacturers' tax credit, and the credit for surplus business tax revenue; and (8) starting in 2003, consolidated the deadlines for filing annual tax returns and applications for renewal of business registration certificates in order to ease administrative burdens on taxpayers. (proposition i, rejected by the voters at the november 7, 2000 general election.)

colorado

tax cut proposal rejected: according to unofficial results, voters rejected a proposal which would have amended the colorado constitution to establish a $25 tax cut, to be increased by $25 yearly, that would have lowered "each tax in each tax bill for each 2001 and later district."

taxes that would have been affected included the following: utility customer and occupation tax and franchise charge; vehicle sales, use, and ownership tax; yearly income tax; property tax; income and property tax equal to yearly revenue from sales and use tax on food and drink other than tobacco and alcohol; and income tax equal to yearly revenue from estate taxes. (amendment 21, initiative 205, rejected by voters at the november 7, 2000 general election.)

homestead exemption for seniors approved: according to unofficial results, voters approved a referendum that amends article x of the colorado constitution to provide a homestead exemption from colorado property tax for real property owned by persons age 65 or older who have resided at the property for at least 10 years, applicable to tax years beginning after 2001.

the exemption will apply to 50% of the first $250,000 of actual value of qualifying residential real property as of the assessment date. the ballot initiative also authorizes the general assembly to adjust the maximum percentage exemption for tax years beginning after 2002. (referendum a (h.c.r 1002, laws 2000), approved by voters at the november 7, 2000 general election.)

georgia

homestead exemption approved for veterans' spouses: according to unofficial results, voters approved a ballot question providing a homestead exemption against georgia state, county, municipal, and school property taxes to unremarried surviving spouses of veterans of the u.s. armed forces who were killed in combat, effective january 1, 2001.

the amount of the exemption is the greater of $32,500, or the maximum amount that may be granted to disabled veterans under 38 u.s.c. §2102, currently set at $43,000. the exemption applies only to the surviving spouse's primary residence. (ballot question c (act 697, (h.b. 446), laws 2000), approved by voters at the november 7, 2000 general election.)

voters approve exemption for farm equipment: according to unofficial results, voters approved a ballot question that expands a georgia property tax exemption for certain agricultural products to include farm equipment owned and used by family-owned qualified farm products producers, effective january 1, 2001. (question a (act 735, (h.b. 1416), laws 2000), approved by voters at the november 7, 2000 general election.)

voters approve increase to tools exemption: according to unofficial results, voters approved a ballot question that increases the georgia personal property tax exemption for all tools and implements of manual laborers from $300 to $2,500, effective january 1, 2001. (question b (act 653, (h.b. 20), laws 2000), approved by voters at the november 7, 2000 general election.)

homeowner's incentive adjustment approved: according to unofficial results, voters approved a ballot measure amending the georgia constitution to provide for an annual homeowner's incentive adjustment on the tax return of each taxpayer claiming the homestead exemption, effective november 7, 2000. the adjustment may be in an amount up to $18,000 of the assessed value of the property, or the ad valorem tax liability on the property, whichever is less. (ballot measure 2 (h.j.r. 269, laws 1999), approved by the voters at the november 7, 2000 general election.)

hawaii

tax review commission proposal rejected: according to unofficial results, hawaii voters rejected a proposed constitutional amendment which would have required the appointment of a tax review commission every 10 years instead of every five years, starting in 2005. (proposed constitutional amendment 2, rejected by voters at the november 7, 2000 general election.)

kansas

voters reject separate classification/taxation of aircraft and watercraft: according to unofficial results, voters rejected a proposed amendment to the kansas constitution that would have allowed the legislature to classify, exempt, and tax aircraft and watercraft as a separate classification from other property subject to tax. (ch. 190 (s.c.r. 1629), laws 2000, rejected by voters at the november 7, 2000 general election.)

kentucky

voters approve legislative session proposal: according to unofficial results, kentucky voters have approved constitutional amendment 1, which enables the kentucky general assembly to convene in odd-numbered years for 30 legislative days. a three-fifths vote is required for passage of bills raising revenue or appropriating funds that are introduced in odd-numbered years. the general assembly currently meets only in even-numbered years. (constitutional amendment 1, approved by the voters at the november 7, 2000 general election.)

louisiana

tax reform proposals fail: according to unofficial results, louisiana voters approved proposed amendment 3 (act 49 (h.b. 98), laws 2000), which would have exempted food for home consumption, natural gas, electricity, and water from any sales or use tax levied by the state or statewide political subdivision, but the proposal failed because it was contingent on the approval of proposed amendment 2 (act 48 (h.b. 73), laws 2000), which concerned changes to the state's personal and corporate income tax.

according to unofficial results, louisiana voters rejected proposed amendment 2, which would have allowed changes to be made to the state's personal income tax structure and rates and which would have eliminated the constitutional requirement that federal income taxes paid be deductible from corporate and personal income tax. (proposed amendment 2 (act 48 (h.b. 73), laws 2000), rejected by voters at the november 7, 2000 general election; proposed amendment 3 (act 49 (h.b. 98), laws 2000), approved by voters at the november 7, 2000 general election, but not effective due to contingency on approval of proposed amendment 2.)

voters reject creation of economic development organization: according to unofficial results, louisiana voters rejected a proposed amendment that would have authorized the legislature to create a corporation to serve as a principal economic development organization for the state. because voters rejected this amendment, contingent legislation that would have established this organization will not take effect. (proposed amendment 1 (act 153 (s.b. 74), first extraordinary session, laws 2000), rejected by voters at the november 7, 2000 general election.)

baton rouge tax increase approved: according to unofficial results, voters in baton rouge, louisiana, approved an additional 6 mill property tax that is effective for the 2001 tax year. the state homestead exemption does not apply to the new tax. (baton rouge ballot proposal, approved by voters at the november 7, 2000 general election.)

massachusetts

voters approve lowering tax rate to 5%: according to unofficial results, voters approved a ballot initiative to reduce the massachusetts personal income tax rate on part b taxable income (wages and salaries) to 5% over a three-year period. the reduction in rates will be as follows: for tax year 2001, the rate will be the lower of 5.6% or the rate set by the legislature; for tax year 2002, the rate will be the lower of 5.3% or the rate set by legislature; and for tax year 2003, the rate will be the lower of 5% or the rate set by the legislature. formerly, the rate was set at 5.85% for tax year 2000, 5.8% for tax year 2001, and 5.75% for tax year 2002. (ballot question no. 4, approved by voters at the november 7, 2000, general election.)

credit for tolls, vehicle taxes paid rejected: according to unofficial returns, voters rejected a ballot initiative that would have established a credit against massachusetts personal income tax and corporate excise (income) tax for 100% of tolls paid during the tax year on all massachusetts roads and highways. a corporation would have been allowed such a credit for tolls paid by it or its employees in furtherance of the corporation's business.

the defeated initiative would also have established a credit against massachusetts personal income tax and corporate excise (income) tax in an amount equal to 100% of the motor vehicle excise tax paid on registered motor vehicles during the tax year.

the credits, which would have been effective for tax years beginning after 2000, would not have been refundable but could have been carried over for 10 tax years. (ballot question no. 6, rejected by voters at the november 7, 2000 general election.)

voters approve charitable contributions initiative: according to unofficial results, voters approved a ballot initiative providing a massachusetts personal income tax deduction against part b taxable income for charitable contributions. [cch note: although such a deduction was previously enacted by ch. 159, laws 2000, and is applicable to tax years beginning after 2000, the initiative still appeared on the ballot.] (ballot question no. 7, approved by voters at the november 7, 2000, general election.)

missouri

tax increase to pay for elections rejected: according to unofficial results, voters rejected a proposal which would have increased the annual missouri franchise tax rate by 0.01% on the outstanding shares and surplus of corporations whose outstanding shares and surplus exceed $2 million. all revenues derived from this tax increase would have been deposited into the fair elections trust fund for use in providing public financing benefits to candidates seeking statewide office who complied with various requirements regarding campaign contributions and finances. (proposition b, rejected by voters at the november 7, 2000 general election.)

montana

voters approve inheritance tax repeal: according to unofficial results, montana voters approved a ballot initiative repealing the state inheritance tax, applicable to deaths occurring after december 31, 2000. [cch note: pursuant to the legislation authorizing the ballot initiative (mt v 4 (h.b. 7), laws 2000), montana estate tax will continue to be collected.] (referendum 116, approved by voters at the november 7, 2000 general election.)

new mexico

levy for capital projects bonds approved: according to unofficial results, voters have approved in part the 2000 capital projects general obligation bond act, which allows the state to levy a new mexico property tax to pay the principle of, interest on, and expenses incurred in connection with the issuance of capital projects bonds.

voters approved bond issue a, which allows for the sale of senior citizen facility improvement and equipment bonds. voters also approved bond issue b, which allows for the sale of public educational capital improvements and acquisition bonds. voters rejected bond issue c, which would have allowed for the sale of state facilities and equipment bonds. (2000 capital projects general obligation bond act (h.j.r. 11, laws 2000), approved by voters at the november 7, 2000 general election.)

oklahoma

voters approve change in school levy election requirements: according to unofficial results, voters approved an amendment to the oklahoma constitution to permit school districts to make additional emergency levies, local support levies, and building fund levies of oklahoma property tax permanent.

under the prior constitutional requirements, such levies had to be approved by electors of a school district for each year in which a school district sought to impose the levy. the amended provisions allow the levies to be permanent upon the approval of the electors of the school district. once the levies are approved, they will change only if another election is held and the voters rescind their prior action. such an election would be held if a petition is signed by 10% of the electors of the school district or if the board of education recommends the taking of an annual vote on such levies. (question 690 (h.j.r. 1019, laws 2000), approved by the voters at the november 7, 2000 general election.)

oregon

voters reject full deduction of federal taxes; may approve increase: according to unofficial results, voters rejected measure 91, which would have allowed oregon taxpayers, for corporate excise (income) and personal income tax purposes, to deduct from their oregon taxable income the full amount of federal income tax paid.

unofficial results show measure 88, which would raise the amount of federal taxes that can be deducted from oregon taxable personal income from $3000 to $5000, to be leading 51%-49%. (measure 91, rejected by voters at the november 7, 2000 general election; measure 88, leading in the polls according to conversation with oregon secretary of state's office, november 8, 2000.)

constitutional amendment requiring refunds approved: according to unofficial results, voters approved a ballot measure which adds a provision to the oregon constitution requiring refunds of corporate excise (income) and/or personal income taxes when state general fund revenues exceed state estimates by 2% or more in any biennium, effective for the biennia beginning on july 1, 2001. currently, oregon revised statutes §291.349 provides for the refund to payers of corporate excise (income) and personal income taxes of actual revenue that exceeds estimated revenues by 2% in any biennium.

in addition, the ballot measure permits the legislative assembly, by a two-thirds majority vote of all members (currently, three-fifths majority vote), to increase the state general fund revenue estimate at any time during the two-year state budget period.

the legislative assembly is also allowed to determine the means by which the refunds are returned to taxpayers, to deduct administrative costs from refunds, to withhold refunds of very small amounts, and to offset a taxpayer's refund against outstanding liabilities owed by the taxpayer. (measure 86 (h.j.r. 17), approved by voters at the november 7, 2000 general election.)

voters reject approval requirement for new taxes: according to unofficial results, oregon voters rejected a ballot measure which would have added a constitutional amendment requiring voter approval of most new or increased taxes, fees, or charges proposed by state or local governments and required a refund of some past collections. (measure 93, rejected by voters at the november 7, 2000 general election.)

south carolina

voters approve new class of property: according to unofficial results, voters have approved a proposal amending the south carolina constitution, for purposes of property tax, to establish a new class of property consisting of personal motor vehicles titled by the state and federal government and limited to passenger motor vehicles and pickup trucks.

this new class of property will be assessed on a scale starting at 9.75% of fair market value in the first property tax year, to 6% of fair market value at the end of the sixth property tax year and each subsequent property tax year. the assessment rates for the new class of property applies for property tax years beginning after 2001, or for earlier tax years if legislation is enacted by the general assembly. (constitutional amendment 2 (s.j.r. 11, laws 2000), approved by voters at the november 7, 2000 general election.)

voters approve proposal on sales tax in lieu of property tax on vehicles: according to unofficial results, voters have approved a constitutional amendment allowing a south carolina county to impose a sales and use tax in lieu of personal property taxes on private passenger motor vehicles, motorcycles, general aviation aircraft, boats, and boat motors. the imposition, or its subsequent rescission, is subject to voter approval. (constitutional amendment 3, approved by voters at the november 7, 2000 general election.)

south dakota

voters approve inheritance tax prohibition: according to unofficial results, voters approved a ballot item which amends the south dakota constitution to prohibit the imposition of inheritance tax, effective july 1, 2001. (ballot item c, approved by voters at the november 7, 2000 general election.)

agricultural property measure approved: according to unofficial results, voters approved a ballot item which amends the south dakota constitution to disallow the classification of agricultural property as a separate class for purposes of real property tax for schools. (ballot item a, approved by voters at the november 7, 2000 general election.)

utah

voters approve county taxes: according to unofficial results, voters approved initiatives that will increase the sales and use taxes in davis county, salt lake county, and weber county, utah, by 0.25 cent, effective january 1, 2001. the increases will be used to fund construction or expansion of a commuter-rail and light-rail system to salt lake city. (proposed ballot initiatives, approved by voters at the november 7, 2000 general election.)

also according to unofficial results, voters approved an initiative that will increase the sales and use tax in cache county, utah, by 0.25 cent, effective january 1, 2001. the increase will be used to fund a new mass transit bus system. (proposed ballot initiative, approved by voters at the november 7, 2000 general election.)

washington

tax limitation approved: according to unofficial results, washington voters have approved an initiative which rolls back any tax and fee increases adopted between july 2, 1999, and december 31, 1999, and requires them to be refunded to taxpayers. in addition, the measure limits increases in property valuation for tax purposes to the lesser of 2% per year or the rate of inflation, bases the value of newly constructed or manufactured property on its comparable value in 1999 plus annual growth of the lesser of 2% per year or the rate of inflation, and exempts from property tax any increases in property value due to maintenance improvements or reconstruction after a fire or natural disaster. (initiative 722, approved by the voters at the november 7, 2000 general election.)

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