On November 8 voters in 13 states will decide on 25 tax-related ballot measures. These measures — questions that ask voters to directly enact a law or amend their state constitutions — are considered “down-ballot” items and often overlooked compared to the higher profile candidate races.
Below is a list of notable tax-related ballot measures that, if approved, would have large impacts on existing state and local tax policy.
Arizona Proposition 130: Property Tax Exemptions Amendment. This measure would combine various constitutional provisions that currently provide property tax exemptions into a single article. It also grants the legislature greater authority over property tax exemptions, specifically allowing lawmakers to determine the amount of and qualifications for the exemptions. The majority of the impact would be felt by individuals as the current provisions allow for exemptions for widows, persons with disabilities, and veterans. However, the approval of this amendment would also allow the legislature to adjust the exemption amount for business personal property (currently constitutionally limited to the inflation rate).
Arizona Proposition 132: 60% Vote Requirement for Ballot Measures to Approve Taxes Amendment. Proposition 132 asks voters to pass a constitutional amendment that would require a 60% majority, instead of the current simple majority, to enact new taxes via ballot proposals. Proponents, such as the Arizona Chamber of Commerce and Industry, argue that the measure protects Arizonans by only allowing for approval of tax measures that are broadly supported. Meanwhile, opponents of the measure argue that the proposition undermines the democratic spirit of state elections by curbing the will of the voters.
California Proposition 30: Tax on Income Above $2 Million for Zero-Emissions Vehicles and Wildfire Prevention Initiative. Proposition 30 seeks to levy an additional 1.75% tax on incomes above $2 million to fund programs that encourage cleaner air in the state, such as zero-emission vehicle (ZEV) projects and wildfire response and prevention. While his administration has pushed a number of key climate initiatives, Governor Gavin Newsom (D) opposes the measure, branding it as a money grab by the ridesharing company Lyft which has contributed $45 Million to support the initiative.
Colorado Proposition 121: State Income Tax Rate Reduction Initiative. Proposition 121 would reduce Colorado’s income tax rate from 4.55% to 4.4% and reduce the corporate income tax from 4.63% to 4.40%. If the measure is approved, Colorado would be the tenth state to cut their corporate income tax rate in the last year.
Massachusetts Question 1: Income Tax for Education and Transportation Amendment. This measure, also known as the “Fair Share Amendment'” or the “Millionaire's Tax,” would tax income over $1 million an additional 4%, with the revenue going toward education and transportation purposes. The coalition opposing the measure — Coalition to Stop the Tax Hike Amendment — argues that the measure needlessly increases taxes while the state enjoys a budget surplus and federal aid for infrastructure improvements.
West Virginia Amendment Two: Tax Exemptions for Personal Property Used for Business Activity Amendment (i.e., Property Tax Modernization Amendment). The Property Tax Modernization Amendment grants the West Virginia legislature the authority to eliminate the tax on certain tangible personal property, which is currently prohibited by the state constitution. Critics argue that the amendment could reduce revenue for local jurisdictions. Governor Jim Justice (R) also opposes the measure, primarily because he would rather see the legislature pursue an individual income tax reduction of 10% for each tax bracket. The West Virginia Chamber of Commerce supports the measure, saying that in addition to making West Virginia businesses more competitive, the amendment would give financial relief to households.
For a full list of measures, including a detailed summary and link to ballot text, click here.
