California Proposition 30 (2012)
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Proposition 30, officially titled Temporary Taxes to Fund Education, is a
California ballot measure In California, a ballot proposition is a referendum or an initiative measure that is submitted to the electorate for a direct decision or direct vote (or plebiscite). If passed, it can alter one or more of the articles of the Constitution of Cal ...
that was decided by California voters at the statewide election on November 6, 2012. The initiative is a measure to increase taxes to prevent cuts to the education budget for California state schools. The measure was approved by California voters by a margin of 55 to 45 percent. Proposition 30 provides for a
personal income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Ta ...
increase over seven years for California residents with an annual income over , to be implemented retroactively starting January 1, 2012 through the end of 2018. The measure also provides for an increase in the state
sales tax A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a govern ...
by 0.25 percent over four years (from January 1, 2013 through December 31, 2016). The sales tax increase expired as planned at the end of 2016. The higher income tax rates were extended for 12 years through the end of 2030 with the passage of Proposition 55 in 2016.


Campaigning

California governor
Jerry Brown Edmund Gerald Brown Jr. (born April 7, 1938) is an American lawyer, author, and politician who served as the 34th and 39th governor of California from 1975 to 1983 and 2011 to 2019. A member of the Democratic Party, he was elected Secretary of S ...
supported and campaigned for the passage of Proposition 30. The governor described the proposition as essential for preserving education funding, stating that "The California dream is built on great public schools and colleges and universities." The "Yes on 30" campaign raised in campaign funds. The
National Federation of Independent Business The National Federation of Independent Business (NFIB) is an association of small businesses in the United States. It is headquartered in Nashville, Tennessee, with offices in Washington, D.C., and all 50 state capitals. The goal of NFIB is to ad ...
, the
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, and the
Howard Jarvis Taxpayers Association The Howard Jarvis Taxpayers Association is a California-based nonprofit lobbying and policy organization that advocates for Proposition 13 and Proposition 218. Officially nonpartisan, the organization also advocates against raising taxes in Cali ...
opposed the bill, arguing that the increased taxes would hurt small businesses and job growth.


Tax changes

Proposition 30 raised the statewide sales tax rate from 7.25% to 7.50%, effective January 1, 2013. Many local municipalities impose additional sales taxes on top of the standard statewide rate. Marginal income tax rates remained unchanged for single filers under $250,000; joint filers under $500,000; and head of household filers under $340,000, ranging from 1% to 9.3%Franchise Tax Board
/ref> Above these income thresholds, new marginal tax rates were created by the passage of Prop 30: Prop 30 provides that, as with existing tax brackets, these income brackets shall be adjusted for inflation each year. As previous to Prop 30 there is an additional 1% tax applicable to single and married filers with taxable income of over $1,000,000.


Revenue projections

According to the 2013-14 Governor's Budget Summary, released on January 10, 2013, Proposition 30 is estimated to increase personal income tax revenues by $3.2 billion in fiscal year 2011‑12, $4.8 billion in FY 2012‑13, and $4.9 billion in FY 2013‑14. It is estimated to increase sales and use tax revenues by $611 million in FY 2012‑13 and $1.3 billion in FY 2013‑14.


Relationship to Proposition 38

Proposition 30 conflicted with another measure on the November 6, 2012 ballot: Proposition 38. The
Constitution of California The Constitution of California ( es, Constitución de California) is the primary organizing law for the U.S. state of California, describing the duties, powers, structures and functions of the government of California. California's original co ...
specifies that if two conflicting measures both pass, the one with the most votes will go into effect where it conflicts with the one that receives the lesser number of votes, but that any provisions in the latter that don’t conflict with the winning proposition will still go into effect. Prop 30 provided that, if it passed with a greater number of votes, nothing in Prop 38 would go into effect. Because Proposition 38 failed, this provision was not enacted. Prop 38 provided that, if it passed with a greater number of votes, the tax-increase provisions of Prop 30 would not go into effect. Any provisions of Prop 30 not related to tax increases would still go into effect, such as the “trigger cuts” to expenditures.


References


External links


Comparison of Proposition 30 and Proposition 38 Pro/Con Video
by the League of Women Voters of California Education Fund and
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