Governor's Revised Budget Smaller Than January Proposal

Governor Jerry Brown has released the May revision to his state budget proposal, reducing proposed 2013-14 general fund spending $1.3 billion below his January proposal. Many special-interest groups were surprised, as they had expected to have $4.5 billion more to spend on pet programs, based on recent state revenue collections. The new plan proposes general fund spending for 2013-14 of $96.3 billion, less than he proposed in January. His new budget also reflects a $2.7 billion increase in current-year (2012-13) expenditures, to $95.6 billion. Read more

Property Tax Revenue Up Due to Proposition 8 Reassessments

Property taxes are expected to jump $2.7 billion more than originally forecasted in 2013-14, to a total of $50.9 billion (from the base 1 percent rate), according to the May Revision. The press has been reporting significant increases in property values around the state. One of the major factors in the projected added property tax revenue is the reassessment upward of many existing properties currently assessed under decline-in-value (Proposition 8 of November 1978) provisions. Read more

Split-Roll Legislation Held in Committee

The Assembly Revenue and Taxation Committee on May 13 held a split-roll property tax bill (AB 188, Ammiano) on its "suspense file" – a move that typically means the end of the line for a bill. Read more

Panel Approves Six Measures to Lower Vote Thresholds for Local Taxes

The Senate Governance and Finance Committee approved six measures May 15 that seek to lower vote thresholds for passage of local tax measures. The measures are similar, in that all would amend Proposition 13 to lower the public vote threshold from two-thirds to 55 percent for local taxes, but they address different types of taxes. Read more

Sweetwater School District Is Underwater School District

Sweetwater Union High School District in San Diego County has made headlines in the past for questionable spending, a superintendent who was convicted of bribery, and other woes. Now, the district is back in the news after making questionable real estate purchases. Read more

Responding to CalTax Request, FTB Posts Revenue Estimate Information Online

In response to a request made by CalTax at the 2012 Taxpayers' Bill of Rights hearing, the Franchise Tax Board has posted information on revenue estimating methods on its website. Read more

Assembly Leader Doesn't Expect Budget to Include Tax Increases

Assembly Speaker John Pérez said he doesn't believe the 2013-14 state budget will include any additional taxes. "The governor has been very clear that he is not going to pass any taxes without a vote of the people," he said. "We take him at his word." Read more

Committee Approves $1.2 Billion-a-Year Tax Increase on Smokers

The Senate Governance and Finance Committee voted May 8 to approve legislation imposing a $1.2-billion-a-year tax increase on cigarette smokers in the form of a $2-per-pack tobacco tax increase (SB 768, de León). Later the same day, the Senate Health Committee approved the bill, sending the measure to the Senate Appropriations Committee. Read more

Committee Approves Bill That Would Release Confidential Taxpayer Information

Legislation that would publicly disclose confidential taxpayer information (AB 562, Williams) was approved May 8 by the Assembly Local Government Committee. CalTax opposes the bill. Read more

Los Angeles Transportation Department Failed to Return $42.6 Million to General Fund

The Los Angeles Times reported: "Los Angeles' transportation department has identified a $42.6-million accumulation of cash that should have been paid to the city's general fund over a 17-year period." Read more

April's Income Tax Collections Slightly Below Predictions

California's income tax revenue in April totaled $12.47 billion, according to State Controller John Chiang's income tax tracker. The governor's budget estimated that $12.74 billion would be collected. Even though April income tax revenue was slightly below forecast, income taxes for the year are about $4.5 billion over estimates, due to the unexpected bonanza in January as taxpayers shifted capital gains from 2013 to 2012 because of the pending federal "fiscal cliff" in December. This raises the question of whether the amount of the tax increase in Proposition 30 was excessive. Read more

School District Can't Spend Bond Money on Projects Not Disclosed to Voters

The Fourth District Court of Appeal has ruled that a school district is barred from using proceeds of a 2008 school bond for field lighting at high school stadiums, because Proposition S did not specifically list field lighting as a project to be funded by the bond. Read more

State Used Antiterrorism Funds to Pay Furniture Movers

An audit found that the state used almost $100,000 from an antiterrorism fund to pay for activities such as purchasing and moving furniture. Read more

Study Shows New Drilling Methods Could Result in 14 Percent Boost in California's Economy

A new study released by the University of Southern California shows that if the state were to tap oil and gas resources in the Monterey Shale deposit by utilizing hydraulic fracturing techniques, economic activity within the state could increase 14 percent, and thousands of jobs would be generated. Read more

CalTax Policy Brief:
Parcel Taxes

This CalTax policy brief on parcel taxes provides important information to policymakers and the public, and recommends ways to reform the tax. CalTax recommends that policymakers bring consistency to the parcel tax structure. Read more

CalTax Policy Brief:
Split Roll Property Tax

The idea of a split roll property tax has been fully vetted and consistently rejected since the passage of Proposition 13 in 1978. This policy brief examines split roll proposals, and discusses how a split roll would negatively impact California's economy and taxpayers. Read more

CalTax Policy Brief:
What Proposition 13 Did

Proposition 13 has been law in California for more than three decades, meaning most people alive today either were not around when it was approved by voters, or were not old enough to have owned property. This CalTax Policy Brief explains how Proposition 13 affected property taxes, and where those taxes would be without it. Read more

CalTax Policy Brief:
Sales Tax on Services

CalTax has prepared a policy brief discussing the economic impacts and tax policy implications of imposing sales tax on services. The policy brief discusses how a tax on services would hurt working families, move jobs out of state and put California businesses at a competitive disadvantage. Read more

Proposition 30 Fact Sheet

New tax rates and other details about the temporary sales/use tax and personal income tax increase measure approved by voters in the November 2012 election. Read more

Multistate Formula Apportionment: Close Enough for Government Work?

An obscure and arcane formula used to determine how much business income of a multistate or multinational corporation is subject to tax in California has become a hot political issue. CalTax Chief Tax Consultant David R. Doerr discusses the two major problems with the formula: it is wrong in theory and it does not work well in practice. Read more

CalTax Fact Sheet: Split Roll Initiative Would Devastate California's Economy

A "split roll" property tax initiative would undo Proposition 13 protections for businesses in California, bringing back an unpredictable method of assessing property taxes and dramatically raising taxes on employers, making it even harder for small businesses to survive. Read more

CalTax Study Finds No Evidence of Shift in Property Tax Burden

CalTax research, based on statistics from the Board of Equalization, shows that there is no evidence that the property tax burden has shifted from business and non-homeowner property subject to Proposition 13 to homeowners. Proposition 13 also made the property tax stable and predictable for property owners. Read more

CalTax Research Bulletin: State Has Wasted $18.9 Billion

State government waste, fraud and mismanagement has cost California taxpayers $18.9 billion in the past 10 years. "Every penny of waste that is stopped is like a penny of new revenue," CalTax President Teresa Casazza said. Read more

California Tax Facts: A Guide to the Golden State's Tax Structure

"California Tax Facts" is a 73-page reference guide, published by the California Taxpayers Association, that describes the taxes imposed by California's state and local governments, and includes informative color charts and tables with statistics on who pays the taxes, how much revenue is collected, and much more. The publication is available on Amazon (click here for ordering information)

Local Tax Measure Results

Click here for a table that includes information on this year's local tax elections. Click here for results from last year's local tax elections in California.

Locate Tax Legislation

Need to locate a tax-related bill considered by the California Legislature? Former legislative tax consultant Martin Helmke's spreadsheets include bills from 1995 to the present. Read more

CalTax Report Identifies Billions in Potential Cost Savings for Government

CalTax's "Government Cost Savings Report: How State and Local Government Can Increase Efficiency and Become More Effective" identifies more than $7.3 billion that state and local government could save or obtain from revenue enhancements if proactive steps are taken to address inefficiencies and reform existing programs. To read the report, click here.

Report: Split Roll Would Have Negative Impact

A new report from the Pepperdine University School of Public Policy finds that if California enacted a split roll property tax, the damage to the economy would total $71.8 billion of lost output and 396,345 lost jobs in the first five years alone. Read more

Tax or Fee? CalTax's Proposition 26 Compliance Guide Provides the Answer

CalTax has released "Understanding Proposition 26: A Sponsor's Guide to California's New Tax Structure," a guide for taxpayers and government agencies to ensure that the Stop Hidden Taxes Initiative is implemented correctly. Read more

California's Tax Machine: Invaluable Resource on State's Tax Policy

CalTax Chief Tax Consultant David R. Doerr's book chronicles the birth of assessments on property, income, sales, utilities, vehicles, banks and corporations, inheritances, oil, alcohol, tobacco and more. It includes must-read chapters on the landmark property tax initiative Proposition 13, detailing the causes and effects of the taxpayers' revolt. Read more