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2004-02-03 - Ballots OFFICIAL BALLOT•SPECIAL ELECTION•DESCHUTES COUNTY,OREGON•FEBRUARY 3,2004 - r'Am IBM C ,� INSTRUCTIONS TO VOTER USE A PENCIL ONLY TO ENSURE YOUR VOTE COUNTS, - COMPLETELY FILL IN THE OVAL (4M) TO THE LEFT OF - THE RESPONSE OF YOUR CHOICE. STATE MEASURE 2, REFERENDUM ORDER BY PETITION OF THE PEOPLE 30 ENACTS TEMPORARY PERSONAL INCOME TAX SURCHARGE; INCREASES, - CHANGES CORPORATE, OTHER TAXES;AVOIDS SPECIFIC BUDGET CUTS RESULT OF"YES"VOTE:"Yes"vote enacts temporary personal income tax - - YES surcharge;increases Corporate Minimum Tax; makes other corporate,income, property,cigarette tax increases,changes;avoids specific budget cuts. . RESULT OF"NO"VOTE:"No"vote retains existing personal income,corporate NO and other tax laws;triggers$544.6 million in budget cuts to education,healthcare, senior services, public safety. - SUMMARY:Enacts personal income tax surcharge for 2003,2004(and 2005,depending on projected General Fund ending balance). Surcharge is percentage of Oregon income tax owed; surcharge rate AJ - progresses from one to nine percent, depending on taxpayer's federal adjusted gross income; no surcharge if that income is below$10,000. Increases$10 Corporate Minimum Tax to$250 or more, up to cap. Ends corporate extraterritorial income exclusion;temporarily reduces corporate dividend Mali - income deduction,tax credits. Restricts elderly medical expense deduction based on age, income. Reduces discount for full,eliminates discount for two-thirds,property tax payment by November 15. Extends 10 cent per pack cigarette tax through 2005. Avoids$544.6 million in budget cuts to educa- tion, healthcare,senior services,public safety. Other provisions. ESTIMATE OF FINANCIAL IMPACT:Passage of this measure increases state revenues and avoids sched- uled state and local spending cuts of$544.6 million in the budget for 2003-2005. It also prevents an additional projected state budget shortfall of$258.1 million. The estimated revenue impact of this measure is as follows: - 400 2003-2005 2005-2007 State Revenue - 41 . Personal income tax' $591.3 million $205.5 million Corporate income tax $146.2 million $107.5 million Cigarette tax(extends 10 cent tax through 2005) $22.2 million $9.7 million - 42 - Property tax discount $43.0 million $0 _]=__43= Cigarette tax -$300,000 -$140,000 - Property tax discount $0 $91.1 million Approximately$844 million of the revenues raised are temporary and$372 million are permanent. . 'However,should certain economic conditions exist,$261 million of the temporary personal income tax revenues will not be collected. - The state and local spending cuts avoided by the passage of this measure are: Education $298.9 million Kindergarten-12th Grade $284.6 million . Higher Education $ 14.3 million . Healthcare and Human Services $187.6 million Children,Families,Seniors and - 51 - Disabled Citizens $187.6 million - Public Safety Services $58.1 million Prisons/Parole $24.7 million - Courts $23.7 million Juvenile Corrections/State Police $ 9.7 million - Total of scheduled state and local spending cuts $544.6 million Total state expenditures X22 -94 are required Implement the measure if enacted. M M WARNING Any person who, by use of force or - other means, unduly influences an elector to vote in any particular man- - ner or to refrain from voting, is sub- ject,upon conviction,to imprisonment or to a fine, or both. (ORS 254.470) — LEA I B M 1CM Se :0001 J J 01 09-101