• Beginning in 2024, cap-and-trade revenues will accumulate in a reserve fund.
• These cap-and-trade revenues cannot be used unless the Legislature authorizes such use by a two-thirds majority.
• On the effective date of any such authorization, the requirement that new revenues accumulate in this reserve fund will expire.
• Suspends certain tax exemptions, including for equipment used in manufacturing and research and development, beginning in 2024, until the effective date of any such authorization.

SUMMARY OF LEGISLATIVE ANALYST'S ESTIMATE OF NET STATE AND LOCAL GOVERNMENT FISCAL IMPACT:

• Potential temporary increase in state sales tax revenue from the sale of manufacturing and certain other equipment beginning in 2024. Amount could range from no increase to a few hundred million dollars annually.
• Possible change in the mix of cap-and-trade funding provided to state and local programs.

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FINAL VOTES CAST BY THE LEGISLATURE ON ACA 1 (PROPOSITION 70)
(RESOLUTION CHAPTER 105, STATUTES OF 2017)

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