The following California Tax Reform Initiative from http://web.archive.org/web/20110405211331/http://www.prospercalifornia.com/lowers-taxes-on-most-californians/ is now in circulation for the purpose of obtaining sufficient signatures of registered voters to qualify for the ballot next November  (Sec. of State initiative #1413, A.G. File No. 09-0051).

When approved by voters, this measure will eliminate most taxes which discourage productive enterprise and commerce in California. The following taxes will be abolished:  the sales tax, the existing property tax on both real and personal property and the corporations tax.  The first $150,000 of annual personal income will also be exempt from the state income tax and the maximum income tax rate will be reduced to 8%.

Public revenue for state and local government will primarily be provided by a tax which economists agree does not penalize productive activity — a tax on the rental value of California’s enormously valuable land.

Improvements to land, including all buildings, will not be taxed.  California’s public assessors already value land and improvements separately for each parcel of real property, so the new tax system simply builds upon a valuation system which has long been in place in our state.

Three key outcomes which this tax reform initiative will provide are: A prosperous state economy with many new, productive jobs.Lower taxes for the large majority of households in California.Ample public revenue to benefit all Californians

California’s Legislative Analyst and Department of Finance estimate that the new tax on land rent will generate revenues of $130 billion to $160 billion annually.

However, this is a conservative estimate based only on existing land values.  It does not take into account the large increase in land rental value which will certainly occur as demand for land in California rises sharply in response to the elimination of well over $100 billion in existing taxes which now fall largely on those individuals and businesses who produce the goods and services that constitute the economic output of our state.

As producers respond with increased investment and new enterprise to the elimination of taxes which currently reduce productive activity and commerce, California’s economy will surge forward and many new job opportunities for unemployed Californians will be created.

Because the ownership of our state’s most valuable land is heavily concentrated into the hands of a relatively small number of Californians and non-residents (often corporations whose owners mostly reside outside of California), the large majority of Californians will pay substantially less in taxes under the proposed new system than they do now. Californians who rent will benefit hugely under this reform as will a high percentage of working homeowners, especially those households with two wage-earners.

Senior homeowners aged 60 or older will be able to defer until July 1, 2020 all land taxes in excess of the property taxes they paid in the year preceding the July 1, 2011 effective date of the reform.  The legislature will have the power to extend that payment deadline even further into the future.  But all senior citizens, homeowners and renters alike, will enjoy the same reduction in state income taxes and sales taxes as will all other Californians.