Tax ballot initiatives not automatic winners with voters
By Kay Bell • Bankrate.com

Who doesn't want a tax cut? The surprising answer this election year: some voters.

More than 30 tax-related questions made it onto state ballots Nov. 7. In most cases, voters showed none of the ambivalence on their state issues that was evident in the presidential campaign. They had their minds made up and results show significant electoral margins on most tax ballot initiatives.

But there was one surprise. The decisive votes weren't necessarily to do away with taxes. In some cases, voters decided that tax cuts weren't a good idea.

Here's a look at some of the key tax questions in several states and how they turned out.

Oregon
Because Oregonians vote by mail, the verdict is still out on most election questions. But early returns indicate that an intensive campaign by business, labor and civic leaders has killed major tax initiatives in this Pacific Northwest state.

Measure 93 would have required voter approval of most new and increased taxes and fees. With 69 percent of the votes in, 60 percent of the voters have said "no" to the proposal.

Similarly, a move via Measure 91 to amend the state's constitution to broaden the deduction of state income taxes on federal returns was rejected. Voters went against the proposal 54 to 46 percent.

Washington
But just north in neighboring Washington, voters agreed to a measure championed by a long-time tax opponent.

Almost 61 percent of Washingtonians said "yes" to Initiative 722. If it stands, some 1999 tax and fee increases will be nullified, vehicles will be exempted from property taxes and property tax increases (except new construction) will be limited to 2 percent annually.

California
Staying on the west coast, Californians -- who popularized the tax initiative craze with Proposition 13 more than 20 years ago -- had a chance to tweak that tax-limiting measure this year. They chose not to.

Proposition 37 would have required a two-thirds vote of state legislature, or either a majority or two-thirds vote of the local electorate, before certain fees could be imposed. Supporters argued that current law makes it easy for lawmakers to raise taxes by calling them fees. Opponents contended that the measure would hamper public efforts to regulate toxic sites and other environmental and health concerns.

The "nays" won, with 52 percent of California voters rejecting Proposition 37.

Colorado
In Colorado, a move to amend the state constitution to establish various tax cuts was soundly defeated.

Amendment 21 marked the first time Coloradans voted on a statewide tax cut proposal. The measure would have reduced next year's utility, vehicle, income and property tax bills and reduced them further annually. In some cases, the taxes would disappear completely.

But 66 percent of Colorado voters decided that such structured reductions were not the way to go.

The Colorado Springs tax critic who spent nearly a half-million dollars pushing Amendment 21 did not take the loss well. "I offered people a chance to take a few steps down the freedom road," said Douglas Bruce. "But the people said they didn't want to travel the freedom road. I guess they now will get the government that they deserve."

Massachusetts
On the east coast, however, Bay State voters Nov. 7 gave themselves the largest single tax cut in state history.

Apparently tired of being labeled "Taxachusetts," voters approved Question 4 by a 59-to-41 percent margin and now should see the state income tax rate gradually drop from the current 5.85 percent rate.

Next year the taxes will be set at 5.5 percent, 5.3 percent in 2002 and the rate will be 5 percent in 2003 and thereafter. The initiative also would let the state legislature, if it sees fit, set a lower tax rate at any time.

Advocates say a Massachusetts family of four with a household income of $75,000 next year should save about $450 in taxes.

Alaska
And voters in the largest state decided that property taxes weren't that big a problem after all.

Ballot Measure 4 would have restricted municipal ability to set higher property tax rates, capping the valuations and them limiting them to 2 percent annually.

Initiative trackers noted that the property tax cap battle was intense, with some Alaskans concerned about the measure's potential to hamper efforts by some communities to consolidate services with other jurisdictions.

The consolidation factor carried the day. Measure 4 was decisively rejected by 71 percent of Alaska's voters.

For more on other ballot questions throughout the country this election, check out the Initiative and Referendum Institute's Web site. The non-profit, non-partisan education and research organization studies and tracks the initiative and referendum process.

-- Posted Nov. 9, 2000