LEGISLATIVE COUNSEL'S DIGEST


SB 13, as introduced, Hollingsworth. Personal income taxes.
The Personal Income Tax Law imposes a tax upon taxable income at
various rates depending upon the amount of that income, and also
imposes an alternative minimum tax based upon specified tax
preference items.
This bill would, commencing with taxable years beginning on or
after January 1, 2009, reduce all marginal tax rates, as provided,
and would eliminate the tax on taxable income for taxable years
beginning on or after January 1, 2013. This bill would also repeal
the alternative minimum tax for taxable years beginning on or after
January 1, 2013.
The Mental Health Services Act, enacted by initiative statute,
establishes a state personal income tax surcharge of 1% on taxpayers
with annual taxable incomes of more than $1 million and uses the
funds derived therefrom for expanding county mental health programs,
as specified.
This bill would repeal that 1% surcharge along with associated
provisions specifying the allocation of those revenues. This bill
would provide that these repeal provisions would become operative
only when submitted to, and approved by, the voters.