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.