April 1: The new taxes begin to kick in.
The sales tax increases by 1 penny on the dollar; Californians will be affected depending on how much they spend. For example, a Californian who earns $25,000 a year would pay an extra $163 in sales tax yearly, according to the Legislature. At the top, those earning more than $1 million a year would likely see their sales-tax payments go up by $2,800 a year.
Other tax increases include:
-- Vehicle license fees would double to 1.15% of value.
-- Personal income taxes would increase by a quarter of a percentage point. The surcharge would add $53 to the tax paid by those on the low end of the economic ladder and $2,250 for those earning $1 million with two dependents.
-- The dependent tax credit is reduced by $210.
According to a legislative analysis of those four tax increases, an average family of four with an annual income of $75,000 would pay $963 more a year in taxes.
May 19: Voters will weigh in on ballot proposals related to the budget deal. If the proposals are rejected, the state could face a hole in its spending plans.
Specifically, voters will be asked to approve the four temporary tax hikes in the budget.
Voters will also be asked to move $226 million from mental health programs and $608 million from programs aimed at children younger than 5 years old.
They will be offered the opportunity to put a cap on future state spending -- but only if the tax hikes just passed stay in place for four years instead of two.
On borrowing, voters will be asked to approve borrowing of $5 billion against future lottery proceeds.
