California Proposition 7 (1998)

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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%
No 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

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