Show O O For Against Official Ballot Title: Shall Article XIII Section 2 be amended to allow farm equipment and farm machinery as defined by the Legislature to be exempt from property tax and to provide for of the exemption over a implementation period of time as provided by the Proposition No 2 Legislature? PROPERTY TAX EXEMPTION FOR FARM EQUIPMENT AND FARM MACHINERY Vote east HOl'SE by the members (75 members): SENATE (29 members): of the 1986 Legislature Yeas Yeas 50 Nays Nays on final passage: Absent or not voting 4 6 Absent or not voting 2 L "" "" ' 'wtmmi wiinniiiiT— w— n IMPARTIAL ANALYSIS Proposal Effective Date state constitution provides for the taxation of property Any exemption from the property tax must also be included in the constitution Present agricultural exemptions from the property tax include: irrigation equipment power plants and electrical equipment used to provide power for irrigation and livestock If approved by the voters this amendment would take effect on 1987 However since the amendment allows the January Legislature to implement the tax exemption over a period of time the exemption may not be fully implemented during the 1987 lax year The Farmers now pay personal property taxes like the taxes paid on cars or industrial machinery on all farm equipment and machinery If Proposition 2 passes farm equipment and machinery as defined by the Legislature would be exempt from property tax If it fails farmers would continue to pay taxes on their farm equipment and machinery The proposed amendment allows the Legislature to apply the exemption for farm equipment and machinery gradually Fiscal Impact The annual loss in property tax revenues from this amendment depend on the schedule of implementation adopted by the definitions for Legislature Based on current Slate Tax Commission farm equipment and farm machinery it is estimated that this exemption when fully implemented would reduce property tax 75 million to revenue for local governments and school districts hv $20 million per year will Page II |