California Estate Tax for College Access Fund Initiative (2018)

California Estate Tax for College Access Fund Initiative
Election date November 6, 2018
Topic Education and Taxes
Status Not on the ballot
Type Amendment & Statute	Origin Citizens
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The California Estate Tax for College Access Fund Initiative (#17-0038) was not on the ballot in California as a combined initiated constitutional amendment and state statute on November 6, 2018.

The measure would have enacted an estate tax in the state constituion to provide funding for a Universal College Access Fund.

As of 2018, California did not have an estate tax. The initiative would have enacted a graduated estate tax on the value of taxable estates and gifts, starting at $3.5 million, as follows:

• 12 percent tax on the value of estates and gifts between $3.5 million to $4 million
• 15 percent tax on the value of estates and gifts between $4 million to $4.5 million
• 17 percent tax on the value of estates and gifts between $4.5 million to $5 million
• 20 percent tax on the value of estates and gifts between $5 million to $5.49 million
• 22 percent tax on the value of estates and gifts above $5.49 million

The initiative would have created a Universal College Access Fund, which would have received revenue from the estate tax and spent the revenue on covering the costs of tuition and fees for in-state students at public universities.

Text of measure

Ballot title

The official ballot title was as follows:

“

Increases Student Aid Funding at California Public Colleges and Universities by Enacting a Dedicated Tax on Some Estates. Initiative Constitutional Amendment and Statute.

”

Petition summary

The summary provided for inclusion on signature petition sheets was as follows:

“

Increases student aid funding for undergraduate students at University of California, California State University, and California Community Colleges, by enacting a dedicated tax (ranging from 12-22%, depending on value) on estate property in California valued at $3.5 million or more and transferred upon death. Exempts revenue from constitutionally required: annual state spending limit, minimum-funding guarantee for schools, and state budget reserve deposits. Requires that revenue would supplement, and not replace, existing financial aid programs for college students.

”

Fiscal impact

Note: The fiscal impact statement for a California ballot initiative authorized for circulation is prepared by the state's legislative analyst and director of finance.

The fiscal impact statement was as follows:

“

Increased state revenues of a few billion dollars annually, ramping up over the initial few years—with amounts depending upon economic trends, future legislative actions, and taxpayer decisions. The increased revenues would be dedicated first to subsidizing the costs of higher education for students, with any remaining monies dedicated to public education.

”

Full text

The full text of the measure is available here.

Path to the ballot

See also: California signature requirements and Laws governing the initiative process in California

In California, the number of signatures needed to qualify a measure for the ballot is based on the total number of votes cast for the office of governor. For a combined initiated constitutional amendment and state statute, petitioners must collect signatures equal to 8 percent of the most recent gubernatorial vote. To get a measure on the 2018 ballot, the number of signatures required was 585,407. In California, initiatives can be circulated for 180 days. Signatures needed to be certified at least 131 days before the 2018 general election, which was around June 28, 2018. As the signature verification process can take several weeks, the California secretary of state issues suggested deadlines for several months before the certification deadline.

The timeline for the initiative petitions is as follows:

• Lavanya Chekuru and Lolita Roibal submitted a letter requesting a title and summary on October 11, 2017.
• A title and summary were issued by the California attorney general's office on December 15, 2017.
• Proponents of the initiative needed to submit 585,407 valid signatures by June 13, 2018, in order for it to make the ballot.
• On June 12, 2018, sponsors of the initiative withdrew the proposal.

See also

• 2018 ballot measures
• California 2018 ballot propositions
• California ballot measures

External links

• Initiative Petition #17-0038