Signed by Governor Arnold Schwarzenegger

Vote Smart's Synopsis:

Vote to pass a bill that temporarily increases the sales and use tax, personal income tax, and vehicle license fee, and temporarily decreases the dependent income tax credit in order to implement the 2009-2010 fiscal year budget.

Highlights:

-Increases the General Fund portion of the sales and use tax from 5 percent to 6 percent, thereby increasing the statewide sales and use tax from 6.25 percent to 7.25 percent from April 1, 2009 through July 1, 2011, or July 1, 2012 if the voters reject the budget stabilization constitutional amendment (Secs. 2-3). -Increases the personal income tax for each tax bracket by 0.25 percent, or 0.125 percent if the state receives enough federal stimulus funds to offset $10 billion in General Fund expenditures, for taxable years beginning on or after January 1, 2009 through January 1, 2011, or January 1, 2013 if the voters reject the budget stabilization constitutional amendment (Sec. 9). -Increases the vehicle license fee from 0.65 percent to 1 percent plus 0.15 percent of the market value of the vehicle, and an additional 0.65 percent of the market vehicle if it weighs more than 10,000 lbs, from May 19, 2009 through July 1, 2011, or July 1, 2013 if the voters reject the budget stabilization constitutional amendment (Secs. 4-8). -Decreases the income tax credit individuals may claim for each dependent from $227 to $52 for taxable years beginning on or after January 1, 2009 through January 1, 2011, or January 1, 2013 if the voters reject the budget stabilization constitutional amendment (Sec. 10).

Full Bill Text