No problem! Trying to follow the bouncing ball is a challenge, to say the least.
The budget package includes $14.4 billion in temporary General Fund tax increases.
These taxes result in the follow savings over the 17-month period:
• $5.8 billion from a 1 cent increase to the State Sales and Use Tax, effective April 1, 2009 ($1.2 billion in 2008-09 and $4.6 billion in 2009-10). This tax increase is temporary and will sunset on June 30, 2012 if the voters approve the proposed Budget Stabilization constitutional amendment. If the voters reject the amendment, the rate increase will expire one year sooner, on June 30, 2011.• $3.3 billion from a 5 percent surtax on Personal Income Tax liabilities, effective starting in tax year 2009. This surcharge would apply through tax year 2012 if the voters approve the proposed Budget Stabilization constitutional amendment. If the voters reject the amendment, the surcharge will expire two years sooner—applying only to tax years 2009 and 2010. Furthermore, if the federal revenue trigger is activated, the surcharge rate will be cut in half (to 2.5 percent).
• $1.4 billion from reducing the dependent credit allowed against the Personal Income Tax to the amount of the personal credit beginning in the 2009 tax year. The dependent credit reduction would apply through tax year 2012 if the voters approve the proposed Budget Stabilization constitutional amendment. If the voters reject the amendment, the dependent credit reduction will expire two years sooner, applying only to tax years 2009 and 2010. The personal credit applies to the taxpayer (and spouse), while the dependent may be claimed for children and other dependents. For 2008, the personal credit was $99 and the dependent credit was $309.
• $1.7 billion from increasing the Vehicle License Fee (VLF) from the current rate of 0.65 percent to 1.15 percent, except for heavy vehicles. Revenue from the portion of the increase to 1 percent will be retained by the General Fund ($121 million in 2008-09 and $1.2 billion in 2009-10) and revenue from the additional increase of 0.15 percent will be transferred to a new special account dedicated to funding local public safety programs ($82 million in 2008-09 and $502 million in 2009-10). The VLF rate increase will become effective for registrations beginning May 19, 2009 and expire June 30, 2013 if the voters approve the proposed Budget Stabilization constitutional amendment. If the voters reject the amendment, the rate increase will expire two years sooner—June 30, 2011. The 0.15 percent rate component dedicated to local public safety would end earlier if the funds are spent for any other purpose.
• $2.1 billion from a 12-cent per gallon increase in the excise tax on gasoline and diesel motor fuel, effective April 1, 2009. Of this amount, $250 million in 2008-09 and $1.8 billion in 2009-10 will offset General Fund debt service costs for transportation bonds. The fuel tax increase will expire June 30, 2013 if the voters approve the proposed Budget Stabilization constitutional amendment. If the voters reject the amendment, the increase expires two years sooner—on June 30, 2011.