California Taxes, CalTax Foundation

More Than $193.28 Billion a Year in Higher Taxes and Fees Under Consideration by Lawmakers

Tax and Fee Report web

California’s state lawmakers considered increasing taxes and fees more than $193.28 billion a year during the first two months of 2024, the California Tax Foundation reported March 14.

The foundation’s Tax and Fee Report tallies 69 proposals during this period with higher taxes or fees. The potential cost to taxpayers can be quantified for 19 of the measures, while fiscal estimates for the remaining measures are expected to be prepared as legislative committees begin hearing the proposals.

Major taxes acted on or pending in the Legislature include new taxes on personal assets, vehicles, rental properties, pet food, candy, online platforms, pesticides, firearm safety devices, airplanes, and more.

The proposals include more than 30 fees that were acted on or are pending. The report includes a description of the California Constitution’s distinction between taxes and fees under the voter-approved Stop Hidden Taxes Act of 2010 (Proposition 26).

The taxes and fees were introduced as lawmakers and the governor face a budget deficit that the Legislative Analyst’s Office recently projected to be approximately $73 billion.

As state officials grapple with the budget’s operating deficit, Californians face major fiscal challenges, including a high cost of living that is growing due to inflation and increases in taxes and fees.

The Tax and Fee Report is a regular publication of the California Tax Foundation, updated throughout the year to reflect new legislative proposals. The report includes any measure estimated to cost $1 million or more per year in higher taxes or fees.

The California Tax Foundation is a nonprofit organization founded in 1980 to improve public policy through independent, nonpartisan research.