California Proposition 7 (1998)
From Ballotpedia
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California Proposition 7, also called the Air Quality Improvement Initiative, was on the November 3, 1998 election ballot in California as an initiated state statute, where it was defeated.
Proposition 7 would have provided tax credits to individuals and corporations for certain expenditures they made that would have reduced emissions of pollutants into the air. Under Prop 7, a total of $218 million in tax credits would have been available for award each fiscal year until January 1, 2011.
Election results
| California Proposition 7 (1998) | ||||
|---|---|---|---|---|
| Votes | Percentage | |||
| Yes | 3,315,267 | 43.63% | ||
| | 4,283,970 | 56.37% | ||
| Total votes | 7,599,237 | 100% | ||
Ballot language
The language that appeared on the ballot:
Ballot title: "Authorizes $218 million in state tax credits annually, until January 2011, to encourage air-emissions reductions through the acquisition, conversion, and retrofitting of vehicles and equipment."
Ballot summary:
- Authorizes State Air Resources Board and delegated air pollution control districts to award $218 million in state tax credits annually until January 2011, to encourage air-emissions reduction through acquisition, conversion, and retrofitting of:
- vehicles, buses, and heavy-duty trucks;
- hearth products;
- construction vehicles and equipment;
- lawn and garden equipment;
- ambient air pollution destruction technology;
- off-road, nonrecreational vehicles;
- port equipment;
- agricultural waste and rice straw conversion facilities;
- and through research and development.
- Requires study of air quality market-based incentive program for prescribed burning projects.
- Establishes local transportation funds as trust funds.
The California Legislative Analyst's Office provided an estimate of net state and local government fiscal impact for Proposition 7. That estimate was:
- Annual net state revenue loss due to new tax credits, averaging in the range of tens of millions to over a hundred million dollars, from 1999 to beyond 2010. Increase in local sales tax revenues, potentially in the millions of dollars annually through 2010-11.
- State costs of up to $4.7 million annually through 2010-11 to administer new tax credit program.
- Potential long-term savings to state and local governments, of an unknown amount, in health care expenditures.
Campaign spending
Supporters
Supporters of Proposition 7 spent $2,719,571. The top contributors to pass the measure were:
- NO on 9 Coalition: $695,000
- Thermo Ecotek Corporation: $503,244
- Engelhard Corporation: $300,000
- Planning and Conservation League: $243,352
- Rio Bravo Fresno/Rio Bravo Rocklin: $110,000
- Northern California Nevada Hearth Products Association: $100,000
- E3 Ventures: $50,000
- Waste Management, Inc., Affiliated Entities: $42,766
- Wheelabrator Technologies, Inc.: $32,500
- Pacific Gas & Electric: $30,000
Opponents
Opponents of Proposition 7 spent $0, although $11,806 was raised. The top contributors against the measure were:
- California Tax Reform Association: $10,979
- Service Employees International Union AFL-CIO (SEIU): $826
See also
External links
- Official California Voter Guide to Proposition 7
- Smart Voter on Proposition 7
- Full text of measure
- November 3 California proposition election results (Scroll to page 7)
- Top Ten Contributors to the Proposition 7 campaign

