Backers of an initiative that would impose a property tax surcharge on real estate holdings with assessed values of more than $3 million to finance projects intended to reduce poverty may begin gathering signatures, Secretary of State Alex Padilla announced.
The surcharge is based on a sliding scale ranging from .03 percent for real property assessed at $3 million to .08 percent for real property assessed at $10 million or more.
Tax revenue generated from the initiative would be allocated to programs including those providing prenatal services, expanded childcare, early childhood education, after-school and summer programs, job training grants, tax credits and monetary aid.
The surcharge would expire 20 years after passage.
Passage of the initiative would result in additional increased state revenues estimated to be between $6 billion and $7 billion for the 2017-18 fiscal year, according to an analysis made by the Legislative Analyst’s Office and Department of Finance.
Valid signatures from 585,880 registered voters — 8 percent of the total votes cast for governor in the 2014 general election — must be submitted by March 21 to qualify the measure for the November 2016 ballot, according to Padilla Tuesday.
—City News Service