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referendum. The bill also provides property tax relief by |
| expanding the tax and rent refund program, phasing out the tax |
| on certain personal property and gradually eliminating the need |
| for the business equipment tax reimbursement program. Education |
| funding would be stabilized by setting aside a portion of |
| unappropriated surplus for an Education Funding Stabilization |
| Fund. Income tax relief would be provided by setting aside a |
| portion of revenues in excess of estimates to be used to reduce |
| income tax rates. The bill directs the Joint Standing Committee |
| on Taxation to report legislation to the Second Regular Session |
| to raise revenue necessary to meet the State's education funding |
| obligation. The referendum questions require the voters to |
| indicate whether they prefer raising the sales tax rate by 2 |
| percentage points or by removing sales tax exemptions and |
| increasing the rate by no more than one percentage point. The |
| bill takes effect only if a majority of the voters approve at |
| least one of the revenue options and if a constitutional |
| amendment is also approved to permit different property tax |
| rates for secondary residential property. |
