A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by adding Section 15 to Article XIIIB thereof, and by adding Article XXXIVA thereto, relating to fiscal relief.

Existing law imposes various taxes upon, or measured by, taxable income or net income, where applicable. This measure, for taxable years beginning on or after January 1, 2018, would impose a surcharge of 10% on the net income of all corporations that is over $1,000,000. The measure would authorize the Legislature to increase or decrease the surcharge by a 23 vote of each house, as provided. The measure would require the deposit of those revenues, less refunds, into the Middle Class Fiscal Relief Fund, which would be created by the measure. Revenues in the fund would be allocated, upon appropriation by the Legislature, for specified purposes, including providing fiscal benefits to lower and middle-income Californians. The California Constitution prohibits the total annual appropriations subject to limitation of the state and each local government from exceeding the appropriations limit of the entity of government for the prior year, as adjusted. This measure would exclude appropriations of revenues derived from the Middle Class Fiscal Relief Act from the appropriations subject to constitutional limitation.