State Could Run Out of Cash in March, Controller Warns

Following the state controller's warning that the state will run out of cash in March unless steps are taken to address cash-flow issues, the Legislature and governor quickly approved legislation allowing transfers totaling approximately $865 million from special funds to the general fund. Prior to this, the controller said the liquidity shortfall is projected to last between February 29 and about April 13, and that $3.3 billion worth of cash solutions are needed to address liquidity needs during this period. Read more

Assembly Begins Budget Work by Restoring Cuts

The Assembly Budget Committee's first official action of the year was to restore funding for two programs that were eliminated as part of the 2011-12 budget. Read more

Water Therapy Medical Devices Subject to Sales Tax

Two cases heard recently by the Board of Equalization involved whether certain water therapy devices are subject to the state's sales and use tax. A split BOE held that the devices are subject to tax, rejecting the taxpayers' arguments that the devices are orthotics, and thus are exempt. Read more

Auditor Says High-Speed Rail Is "Increasingly Risky"

State Auditor Elaine Howle has released a 73-page report concluding that the state high-speed rail project's funding situation has become exceedingly risky. The report is the third very negative independent report released recently on the proposed high-speed rail project. Read more

California Public Employees Highest Paid in the Nation

California's state and local government employees are paid more than those in any other state, according to 2010 data released January 31 by the U.S. Census Bureau. Full-time employees of state and local governments in California earned an average of $5,774 in the month of March 2010. Read more

California Lost 947,000 Jobs In Five-Year Period

From 2006 to 2011, California lost approximately 947,000 jobs – more than any other state in the country – according to the U.S. Bureau of Labor Statistics. This represents a drop of 6.26 percent of the state's jobs, the Sacramento Business Journal reported.

Nearly Half of Higher-Ed Students Have Fees Waived Or Paid With Grants

With the debate about recent higher education tuition increases raging, a new report from the Legislative Analyst's Office concludes that "nearly half of all undergraduates at California's public colleges and universities receive grants or waivers that fully cover education fees."
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L.A. County Saved Millions By Focusing on Efficiency

Ever dollar of waste that can be eliminated is like a dollar of new revenue, without the need for tax increases. Los Angeles County announced that it has saved $218 million since early 2009 by focusing on eliminating waste and improving efficiency. Changes included everything from buying better light bulbs and disconnecting unused phone lines to improving management of a county-run health program. Read more

Delays Cost Los Angeles $23.1 Million in Revenue

Los Angeles City Controller Wendy Greuel reports 12 that untimely approval of permits by the city's Bureau of Street Services for advertising on "street furniture" (bus stops, newsstands, public toilets, etc.) led to $23.1 million in lost financial opportunity for the city. She also warns that an additional $57 million could be lost if city officials do not work to resolve outstanding issues. Read more

Spending Cap Plan Gives California Real Choice in '12

In an editorial, Investor's Business Daily writes: "The Government Spending Limit Act of 2012 ... offers Californians a true alternative to all those other propositions that just ask for more money. The measure is about restraint, a rare thing in California over the past two decades. In that way it's new. It's also a revival of a spending-cap strategy that worked well in the decade after voters passed Proposition 13." Read more

Dan Walters: Unemployment Tax Increase Looms

Columnist Dan Walters of The Sacramento Bee writes: "Capitol politicians … will wrestle with a hefty increase in payroll taxes on employers to prop up the insolvent Unemployment Insurance Fund." Read more

Will "Soak the Rich" Tax Policy Encourage Wealthy Taxpayers to Relocate?

Will the threat of new soak-the-rich proposals accelerate the migration of wealthy taxpayers out of California, and what effect would this have on state revenue? How many high-income California taxpayers would have to move out of the state for the soak-the-rich proposal to be unproductive? Read more

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

A recently filed "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

What Proposition 13 Did

Proposition 13 set a maximum rate for the property tax, and removed guesswork, opinion and chance from the determination of a property's assessed value — the value upon which the tax rate is levied. Read more

Dan Walters: Data Differ Greatly in California Property Tax Debate

Columnist Dan Walters of The Sacramento Bee discusses CalTax’s property tax research, which found that under Proposition 13, property taxes on business and non-homeowner property have increased slightly faster than taxes on owner-occupied homes. Read more

CalTax Voting Record for the 2011 Legislative Session

The California Taxpayers Association has released its 2011 Voting Record, providing Californians with an important measurement of how their representatives in the Legislature acted on major tax and fiscal legislation. Read more

Sales Tax on Services: A Disservice to California

Proposals to tax services (advertising, babysitting, car-washing, painting, etc.) raise many concerns for taxpayers. This CalTax paper explains some of the negative impacts a services tax would have on Californians.

Gina Rodriquez: With 2.1 Million Californians Out of Work, a Property Tax Increase Is the Last Thing We Need

Efforts to undo Proposition 13's property tax protections are getting more attention. The biggest threat is AB 448, which would take a big step toward this goal by repealing Proposition 13 protections for employers, even as the state struggles with a 12 percent unemployment rate. Read more

CalTax Fact Sheet on Expansion of Local Taxing Authority

Earlier this year, a legislative proposal sought to dramatically alter California's tax structure by significantly expanding new taxing authority to counties, school districts, community college districts and county offices of education. Click here to read CalTax's fact sheet on the proposal.

Government Can Improve Efficiency and Save Billions, CalTax Reports

A new CalTax Research Bulletin finds that state and local government can save more than $3.4 billion by improving efficiencies and reducing fraud. "Making Government Work – How California Can Improve Efficiency and Reduce Fraud" uses audits and other documents released in 2010.

CalTax Research Bulletin:

Tax Policy Decisions and the California Economy

Good tax policy improves the economy and provides equity among taxpayers. Tax incentives can be designed to create a better climate for entrepreneurs, innovators and job seekers. Other tax policies can be effective tools for providing equity to taxpayers. Read the full Research Bulletin

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

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

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

Local Tax Elections

Click here for a table that includes results of this year's local tax elections in California, along with information on tax measures that will be decided in local elections later this year.