Proposition 30 - Governor’s tax increase measure – Passed

This measure is intended to provide temporary taxes to fund education and local public safety. Proposition 30 raises the sales/use tax rate by 1⁄4 cent for four years from January 1, 2013 through December 31, 2016. It also includes higher personal income tax (PIT) rates that will be raised for seven years effective January 1, 2012. The rates for high-income individuals will be: • 10.3% for singles making $250 – 300,000 • 11.3% for singles making $300 – 500,000 • 12.3% for singles making over $500,000 The additional marginal tax rates increase as taxable income increases. For joint filers, an additional 1 percent marginal tax rate is imposed on income between $500,000 and $600,000 per year, making the total rate 10.3 percent. Similarly, an additional 2 percent marginal tax rate is imposed on income between $600,000 and $1 million, and an ad- ditional 3 percent marginal tax rate is imposed on income above $1 million, increasing the total rates on these income brackets to 11.3 percent and 12.3 percent, respectively. These new tax rates affect about 1 percent of California PIT filers. These taxpayers currently pay about 40 percent of state personal income taxes. The tax rates will be in effect for seven years from January 1, 2012 through December 31, 2018