David R. Doerr, principal contributor
Ronald W. Roach, editor

ASSEMBLY PANEL APPROVES GOVERNOR'S CORPORATE TAX CUT

Surprising many observers, the Assembly Revenue and Taxation Committee last Monday approved Republican Governor Pete Wilson's bill for a 10 percent corporate tax rate cut (AB 479, Pringle) and sent the measure to the Assembly Appropriations Committee for further consideration. However, it was not all wine and roses for taxpayers as the Democrat-controlled committee also passed legislation imposing 10 percent and 11 percent income tax brackets and approved another anti-taxpayer property tax measure.

The vote to approve AB 479 came after dramatic testimoney by Trade and Commerce Agency Secretary Julie Meier Wright on California's loss of a major corporate investment. She said Oregon-based Nike, a leading manufacturer of athletic footwear, considered California and eight other states for locating a facility that would employ 5,000 workers. She said the company's tax climate analysis placed California eighth of nine states studied and "dead last on corporate income taxes." As a result, she said the company made a decision to locate elsewhere.

While noting that 1993 reforms (including the manufacturers' investment tax credit) changed perceptions of California's business climate, Ms. Wright said other states did not stand still. She said New York reduced its corporate tax by 15 percent.

Estimates of tax savings from AB 479 are: 1997-98 -- $85 million; 1998-99 $310 million; 1999-2000 -- $520 million; 2000-2001 -- $600 million.

Testifying in support of the bill, Finance Director Craig Brown said the state's new dynamic revenue estimating model forecast the bill would create 7,000 new jobs. Others who spoke in favor of the bill were Cal-Tax's David R. Doerr; Fred Main, representing the California Chamber of Commerce, and Carrie-Lee Coke, representing the California Manufacturers Association.

During discussion on the bill, Assemblyman Charles Poochigian said, "It makes sense to return dollars to taxpayers in good times."

Opposition witnesses were Lenny Goldberg, representing the California Tax Reform Association; Terry Brennand; representing the Service Employees International Union, and Richard Pratt, representing the California School Employees Association. Mr. Goldberg, citing the same selective tax studies he has been citing for the past four years, claimed that California's tax climate is not so bad.

Committee Chair Louis Caldera, who abstained, said, "Taxes are too high, but the Legislature won't prioritize." The vote to approve AB 479 was 7-2, with Assembly Members Poochigian, Nao Takasugi, Howard Kaloogian and Gary Miller, joined by Democrats Mike Machado, Lou Papan and Carl Washington. Assembly members Wally Knox and Dion Aroner voted no. Elaine Alquist also abstained.

Other committee action:

• Soak the Rich. Assemblyman Machado cast the sixth and deciding vote to enable Assembyman Antonio Villaraigosa's "soak-the-rich" tax proposal to clear the committee. AB 83 reimposes the 10 percent and 11 percent personal income tax brackets, and creates a refundable earned income tax credit at 27 percent of the federal credit in 1997 and 20 percent in 1998 and beyond. It also establishes a 100 percent tax credit for community college fees paid by taxpayers with adjusted gross income of $35,000 or less.

According to the committee analysis, a married taxpayer with two children with an income of $9,200 would get a check of $960 from the state, while the same family with $28,495 would get no benefits. The net cost to the state of the refundable credit is in excess of $1 billion for 1997-98.

Mr. Villaraigosa said the bill "narrows the income gap between the poorest and the wealthiest." Speaking in support were Mr. Brennand, Mr. Goldberg, and Jean Ross of the California Budget Project.

Mr. Doerr opposed the bill on the grounds that voters just turned down a proposal to restore the 10 percent and 11 percent brackets; that taxes should not be raised when there is a large windfall in revenue, and that the refundable tax credit is a welfare program in disguise. Mr. Main also spoke in opposition, saying California already has the most progressive personal income tax in the nation. The Department of Finance also expressed opposition, noting there are major Proposition 98 school finance problems with the measure.

During the debate, Mr. Takasugi predicted that the refundable credit would result in a major fraud problem. He noted that federal earned income credit resulted in an up to 25 percent fraud problem.

• Assessment Appeals. Legislation limiting people who can present testimony on value at an assessment appeal (AB 1319, Alquist) was approved. The bill allows only the owner of the property, licensed real estate appraisers, licensed real estate brokers or certified public accountants to testify as to value in assessment appeals of residential property values of $1 million or less.

Speaking in support, Santa Clara County Assessor Larry Stone said the purpose of the bill was to limit assessment appeals he deems "meritless." Voicing opposition, Mr. Doerr said it is wrong to limit testimony in an informal appeals hearing and others, such as building contractors, may have a valid opinion of value.

• Manufacturers' Investment Tax Credit. The committee approved AB 539 (Firestone), allowing the manufacturers' investment tax credit to be claimed by other members of a unitary group if one member of the group cannot take full advantage of the credit.

Testifying in support, Dick Fishman of Unocal, who is chair of the California Manufacturers Association Tax Committee, said the bill furthers the original intent of the credit by allowing taxpayers full realization if investments are made.

Mr. Goldberg, in opposition, said the issue was "thoroughly debated" at the time the credit was enacted. The Franchise Tax Board also opposed the bill because of its long-standing policy that each member of a combined group maintain a separate entity.

• Capital Gains. Legislation indexing the basis for computing capital gains (AB 253, Takasugi) was approved. Mr. Takasugi stressed the equity argument that only real gains should be subject to tax. He was joined by Assemblyman Bill Campbell, who made the economic arguments in favor, stressing economic growth. Mr. Doerr also supported the measure.
• Elective Combination. Legislation supported by the business community to allow a unitary business to elect to treat all affiliates as a single combined group (AB 417, Davis) was approved by an 11-0 vote. The election would be for a 10-year period. The FTB estimates an ongoing revenue loss in the $20 million range if the bill becomes law.
• Net Operating Losses. The committee approved AB 724 (Lempert), incrementally increasing the percentage of net operating losses that can be carried forward to 100 percent (by the year 2002). Beginning in 1998, the bill extends the period of loss carryforward from five to 15 years.

The bill was supported by a number of business groups, including the California Chamber of Commerce, Cal-Tax, the CMA, the American Electronics Association and Semiconductor Equipment and Materials International. Proponents argued that cyclical businesses pay more over time than non-cyclical businesses with the same income.

Mr. Goldberg opposed the measure, saying the proponents made a deal in 1987 for a 50 percent net operating loss.

• Nexus. The committee approved AB 1271 (Papan), providing that taxpayers who do not have nexus for bank and corporation tax purposes do not acquire nexus solely by storing inventory in a warehouse in California.

Proponents argued that some businesses are storing inventory in Nevada to avoid California nexus, and the bill will improve California's business climate.

• Wage Tax Credit. The committee approved AB 1232 (Granlund), establishing a 25 percent tax credit for the first $10,000 in wages paid to welfare recipients. Mr. Main supported the bill as a way to provide jobs for welfare recipients. Mr. Goldberg said there is no evidence that these credits have worked.
• Manufacturers' Tax Credit: Agricultural and Petroleum Producing Property. The committee passed AB 94 (Cardoza), extending the manufacturers' investment tax credit to personal property used in agricultural activities or in oil or gas extraction. A similar bill (AB 138, Poochigian), extending the credit just to personal property used for agricultural purposes, was also approved.
• R & D Tax Credit. The committee approved AB 1356 (Figueroa), conforming to federal law for calculating the base for the research and development credit. The credit would be the greater of the computed amount or 20 percent of the current year's qualified research expenses. Taxpayer savings: $15 million on an ongoing basis.
• Education Expenses. The committee approved AB 1360 (Alquist), excluding from income employer-provided assistance up to $5,250 for graduate-level education. Amendments adopted at the hearing will delete law and medical schools from the exclusion.

The bill was strongly supported by high-tech companies and opposed by Mr. Goldberg. Estimated tax savings: $14 million.

• Bunker Fuel. Two bills continuing the bunker fuel sales tax exemption indefinitely -- AB 120 (Kuykendall), and AB 366 (Havice) -- were approved. Proponents argued that a tax on bunker fuel (the fuel used to propel a vessel beyond its first out-of-state port) will harm California businesses as fuel will be bought out of state. According to the BOE, in 1996, 28 million barrels of bunker fuel were sold in California, 50 percent more than was sold in the last year such fuel was taxed.
• Tobacco Advertising. The committee defeated AB 1364 (Wayne), prohibiting deductions for the cost of advertising by tobacco companies. Assemblyman Howard Wayne said the public was "subsidizing" advertising. This concept was refuted by opponents, who said advertising is a proper cost of doing business and is deductible in determining net profit.

Committee members evidenced concern about the precedent set by the bill in a series of questions to Mr. Wayne about allowing advertising deductions for butter, alcohol, and pornographic movies.

• Income Tax Brackets. The committee approved AB 1461 (Olberg), eliminating the one percent income tax bracket and adjusting the two percent bracket. The proposal, sponsored by State Board of Equalization Member Dean Andal, will remove 400,000 low-income taxpayers from the roll. Mr. Goldberg opposed the bill as inefficient. Ongoing taxpayer savings: $93 million.
• Minimum Tax. The committee approved three bills reducing the corporate minimum tax. AB 8 (Leach) exempts new corporations with no net income for five years. (Tax savings: $50 million to $60 million annually.) AB 27 (Strom-Martin) reduces the minimum tax for new corporations from $600 to $300 for two years. (Tax savings: $8 million.) AB 1419 (Campbell) reduces the minimum tax to $100. (Ongoing taxpayer savings: $320 million range.)
• Transit Passes. Legislation allowing employers a 40 percent tax credit for providing subsidized transit passes to employees (AB 171, Cunneen) was approved by the committee. The bill was supported by Leslie Coleman of the Santa Clara Valley Manufacturing Group, and a number of transit agencies. The Department of Finance opposed the bill due to a $2 million revenue loss.
• Telecommuting Equipment. The committee approved AB 613 (Margett), providing accelerated depreciation for purchases of telecommuting equipment. Estimated taxpayer savings: $2 million.
• Health Insurance. The committee approved AB 305 (Wayne), increasing the deduction for health insurance premiums paid by self-employed individuals from 25 percent to 100 percent. Amendments cap the deduction at the amount paid on behalf of retired state employees. FTB estimate of taxpayer ongoing savings: $40 million range. The committee also approved AB 230 (Runner), increasing the deduction for health insurance paid by self employed individuals from 25 percent to 40 percent -- growing to 80 percent by 2006. The amount is capped at the amount paid on behalf of retired state employees. FTB estimate of ongoing taxpayer savings: $14 million, growing to $120 million.
• Manufacturers' Investment Tax Credit Recapture. The committee approved AB 706 (Ackerman), excluding from the manufacturers' investment tax credit recapture provisions specified corporate reorganizations (under IRC Sections 338 and 355).
• Sales Tax: Propane Exemption. The committee approved AB 1019 (Machado), exempting from sales tax propane for residential use. Taxpayer savings: $18 million.
• Swimming Pool Safety. The committee approved AB 813 (Baldwin), establishing a specified tax credit for installing swimming pool safety devices.
• Adoption Credit. The committee approved AB 119 (Runner), establishing a tax credit up to $1,000 for costs of adopting a qualified child.
• Employer Child-care Credit. The committee approved AB 484 (Havice), extending and expanding the child-care facility tax credit, and AB 642 (Baldwin), removing the sunset date on the employer child-care tax credit.
• Agricultural Products Donations. The committee approved AB 196 (Thomson), establishing a 20 percent tax credit for donating agricultural products to charity.
• Low-Income Housing Tax Credit. The committee approved AB 168 (Torlakson), expanding the amount that can be granted pursuant to the low-income tax credit from $35 million to $50 million.
• Public School Construction. The committee approved AB 56 (Mazzoni), establishing a 30 percent tax credit for the cost of establishing a public school facility. The purpose is to encourage work-site schools, such as the one Hewlett-Packard helped finance in Santa Rosa.
• Volunteer Credit. The committee defeated AB 283 (Baca), establishing a tax credit for volunteer services to schools.
• Teacher Tax Credit. The committee approved AB 336 (Miller), giving each teacher a $500 tax credit for out-of-pocket costs in purchasing supplies and materials.
• Railroad Cars. The committee approved AB 478 (Takasugi), changing the method of assessment of private railroad cars.
• Income Tax Reduction. The committee defeated a $1.6 billion personal income tax cut proposed in AB 643 (Baldwin).
• At-Risk Youth. The committee approved AB 741 (Washington), allowing employees a tax credit for specified wages paid to at-risk youth.
• Blood Containers. The committee approved AB 993 (Perata), exempting blood containers from sales tax.
• Manufacturers' Investment Credit. AB 1063 (Lempert), extending the manufacturers' investment tax credit to computer software manufacturing, was approved.
• State-Chartered Credit Unions. AB 1413 (Papan), exempting state-chartered credit unions from tax, was approved.
• FASIT. AB 1417 (Campbell), conforming state tax law to federal provisions relating to financial asset securitization investment trusts (FASIT), was approved.
• Biomass Conversion. The committee approved AB 1513, establishing a tax credit for agricultural prunings delivered to a biomass conversion facility.
• Shake Roofs. Two bills giving taxpayers incentives to replace shake roofs were approved. AB 77 (Morrow) provides for a tax credit up to $5,000 to replace such roofs, while AB 109 (Kaloogian) allows a deduction.

WILSON UNVEILS REVISED BUDGET; URGES TAX RELIEF

Awash in a gusher of tax dollars, Governor Pete Wilson last Wednesday presented updated state budget plans to the Legislature -- the annual May revise -- that touted major increases in spending on education and welfare-related child care programs. He also urged passage of his business income tax relief proposal.

Responding to reporters' questions, the governor essentially dared the Legislature to pass a personal income tax relief measure. At a media briefing, the governor was asked why he was not pressing for a personal income tax (PIT) rate reduction, particularly since so much of the new revenue is from the pockets of individual taxpayers. Mr. Wilson responded by challenging the Democrat-controlled Legislature to send him a bill so he could sign it. "I would be delighted," he said.

While he unsuccessfully pushed for a PIT reduction in the past, the Republican governor said he had not done so this year because, realistically, he did not see enough support in the Legislature because of sentiments against such a tax cut from majority Democrats' leaders in the Senate and Assembly, and resistance from the "education community."

Reacting to the governor's comments, the Senate's leading Democrat, President Pro Tem Bill Lockyer, said a personal income tax cut should be "on the table" for negotiations, a surprising development since he has been a primary foe of such tax relief in recent years. Reacting to Mr. Lockyer's remarks, gubernatorial spokesman Sean Walsh said Governor Wilson might push an income tax reduction after all. "We are eager to explore the many ways tax reduction can be done," he said.

Mr. Wilson congratulated the Assembly Revenue and Taxation Committee, where Democrats outnumber Republicans 7-4, for approving his 10 percent bank and corporation tax rate reduction measure (AB 479, Pringle) last Monday (see story on page 1). The same committee has rejected a PIT reduction measure this year.

The governor noted that the state's economy flourished after passage of tax relief measures and other laws (workers' compensation insurance reform) to improve the business climate since he took office in 1991. He said California continues to face "fierce competition for jobs" and the "surest way to hold our ground" is to make the state more attractive to job creators.

The state's revenue picture through June 30, 1998 has improved by $2.26 billion above expectations of last January, including $2.16 billion in personal income taxes over the two years.

Mr. Wilson has proposed $392 million in additional spending for child care to enable welfare mothers to work and also pay for job searches and training. He wants to fully fund class size reduction for grades kindergarten through third at $800 per pupil -- an additional $230 million on top of the $1.25 billion already invested in the program -- and spend $110 million on standardized testing and high school computers. Education is required to receive about 98 percent of the additional revenue because of constitutional guarantees and enrollment, population and revenue factors.

The revised general fund revenue forecast calls for $51.96 billion in the 1997-98 fiscal year, up 2.6 percent from the governor's January budget proposal and up 5.3 percent from the current fiscal year. General fund spending is $268 million below expected revenues, with a budget reserve of $580 million for economic uncertainties. The reserve would be about the same as proposed last January.

Estimates reflect the governor's tax relief initiatives: a 10 percent bank and corporation tax reduction phased in over two years, full conformity with federal changes relating to Subchapter S corporations, and conformity with increased federal limits on small business expensing. Further, the budget assumes federal legislation will pass that will give California power to set up a reciprocal refund offset program with the Internal Revenue Service for past-due state tax debts.

GOVERNMENT AGENCIES EXEMPT FROM COUNTY BUSINESS LICENSE TAXES

Counties may not impose a business license tax on activity by another public agency, the Third District Court of Appeal ruled May 6 (Sacramento Municipal Utility District v. Solano County). At issue was a business license tax assessed by Solano County against a 5-megawatt wind-driven power generation plant in the county owned by the Sacramento Municipal Utility District (SMUD). The county argued that SMUD was doing "business" in the county, and, therefore, was subject to tax.

The court said, while such a tax is not constitutionally prohibited, it is not expressly authorized by statute.

Writing for the court, Justice Robert Puglia said, "Although the term 'business,' when used in legislation, is not necessarily limited to activities engaged in for profit, it is nevertheless confined to activities engaged in by private entities, unless a contrary intent is apparent from the statutory language. The language of Section 7284 does not manifest a contrary intent."

CONTROVERSIAL TRIAL COURT FUNDING BILL PASSES ASSEMBLY

The Assembly last Monday approved, by a vote of 63-8, a trial court funding bill that opponents characterized as an $88 million tax increase in the guise of court fees. AB 233 (Escutia) transfers principal funding responsibility for trial courts to the state beginning in 1997-98, while freezing county contributions at the 1994-95 levels.

Assemblyman Tom McClintock charged that the bill is a $88 million tax increase. He noted a number of civil fees were being increased to help fund the bill, and called the one dollar per page cost for photocopying court documents "outrageous."

Mr. McClintock was joined by Assemblyman Dick Floyd in denouncing the bill. He said, "Only Donald Trump can afford to file a civil action" if the bill passed.

Assembly Minority Leader Curt Pringle urged the Assembly to pass the bill as a work-in-progress, and said further changes will be made in the proposal. He argued that a trial court funding bill is needed as courts have the fastest growing county costs.

Other Assembly floor action:

• Vehicle Registration Fees. The Assembly rejected 30-39 an attempt to index annually the state's vehicle registration fee (AB 1142, Murray). This would have resulted in an annual increase in the fee, based on the growth of the consumer price index, each and every year in the future, without further legislative action.

Assemblyman Kevin Murray argued that the increase will help fund the Highway Patrol, and noted the Highway Patrol union was supporting the bill. Assemblyman Bernie Richter noted California's tax on motor vehicles is the second highest in the nation. "When is enough, enough?" he said.

In a letter to all Assembly members, Cal-Tax expressed opposition to the bill, saying, "The case must be made for the need to increase vehicle license fees; an increase should not be tacked on automatically."

• Diesel Fuel. The Assembly approved AB 1269 (Granlund), imposing the diesel fuel tax on fuel purchased out of state and used in California. The bill also provides a tax rebate for fuel purchased in California and used out of state.

Assemblyman Brett Granlund said the bill will help California gas stations compete by eliminating the tax incentive for large trucks to fill up in Nevada. He added the bill helps the environment as vehicles will purchase cleaner fuel.

APPROPRIATIONS COMMITTEE SENDS KEY BILLS TO SUSPENSE FILE

The Assembly Appropriations Committee sent several tax bills to its suspense file last Wednesday, including AB 372 (Battin), the tax credit for computer donations. Proponents estimated that while there would be a $1 million revenue loss due to the credit, schools would get $19 million worth of computers.

Also sent to the suspense file without discussion was AB 41 (Murray), conforming to federal expensing provisions for unincorporated small businesses; AB 1499 (Caldera), conforming to federal changes in the research and development tax credit; AB 511 (Caldera), allocating bank tax revenue to local government; and AB 265 (Battin), excluding appreciated gifts to charities from the alternative minimum tax.

Of significance, the committee approved AB 713 (Caldera), conforming to federal taxpayer bill of rights for Franchise Tax Board purposes, and SB 701 (Caldera), allowing charter cities access to specified FTB information.

The committee approved legislation limiting organizations that provide taxpayers with property appeal services (AB 1178, Davis). Prior to its passage, the bill was amended to limit the restrictions to residential appeals and to remove a $25 cap on the cost of the service.

OLD WINE IN NEW BOTTLES

Property Tax Interest. The authorship of SB 30, relating to property tax interest payments, has been changed from Senator Ken Maddy to Senator Quentin Kopp. The subject matter in the bill still seeks to change provisions of SB 657 (Maddy) of 1995 ensuring taxpayers received the proper rate of interest on refunds stemming from tax years before 1993.

Senator Maddy had dropped the bill, due to opposition from Cal-Tax and other taxpayer organizations. Counties have persuaded Senator Kopp to carry forward their effort to get the measure passed.

NEW WINE IN OLD BOTTLES

Education Expenses Tax Credit. AB 1358 (Pringle) has been amended to establish a tax credit for costs of K-12 education instructional materials, textbooks, tuition, suppliers or transportation expenses for any accredited school.

Manufacturers' Investment Credit. AB 1062 (Battin) has been amended to expand the manufacturers' investment credit (and accompanying sales tax exemption) to cover personal property primarily used in teleproduction and other post production services.

POTPOURRI: SYMPOSIA, SIGHTINGS, SALUTES & SNAFUS

Wright to Leave Commerce. Julie Meier Wright, secretary of the state Trade and Commerce Agency for the past five years, said last week she will leave the Wilson Administration in August to become president of a nonprofit economic development corporation in San Diego. Lee Grissom, head of the governor's Office of Planning and Research, will succeed Ms. Wright.

Connell Breaks Hip. State Controller Kathleen Connell suffered a broken hip in a rollerblading fall and was hospitalized over the Mother's Day weekend, according to her Los Angeles office. It was reported last Tuesday that Dr. Connell fell while on an outing with her two sons. Byron Tucker, her press spokesman, said Dr. Connell "is fine. She will be out of the hospital in a couple of days."

Court Hits State on Prevailing Wage. In a ruling that could have far-reaching impact on the power-of-the-purse rivalry between executive and legislative branches of government, a state appellate court has handed the Legislature -- and organized labor -- a major victory.

In ruling on Local Union No. 595, International Brotherhood of Electrical Workers et. al. v. Superior Court for the City and County of San Francisco, Lloyd W. Aubry Jr., director of the California Department of Industrial Relations, the court at least temporarily blocked the Wilson Administration's prevailing wage regulatory reform campaign.

The 3-0 decision May 9 from San Francisco's 1st District Court of Appeal (written by Justice Marc Poche) overturned a trial court judgment and said that the Department of Industrial Relations could not spend tax dollars on employee wage surveys because a committee of the Legislature last year deleted the appropriation from the governor's proposed 1996-97 state budget.

Mr. Aubry, who announced his resignation effective last Friday, said the department will appeal the decision to the California Supreme Court. He stressed that his department's use of existing resources -- not the $1.3 million deleted by the Legislature in budget hearings -- was ignored by the appellate court.

"We believe the decision puts in jeopardy the very authority that the Legislature vests in various departments and agencies," Mr. Aubry said. "Essentially, we have been delegated rulemaking authority but when we exercise that authority and promulgate regulations which are approved by the Office of Administrative Law, those rules can be negated by the Legislature simply by deletion of funds. This cannot be the intent of the law."

The department needs wage surveys to implement a different method for calculating prevailing wage rates and curbing inflated costs of government construction contracts. The Wilson Administration prefers a weighted average method used by the federal government and nearly all other states.

Justice Poche, once a top aide to then-Governor Jerry Brown, wrote: "The governor of this state has no power to appropriate funds; subordinate officers of the executive branch are similarly without such power."

Capitol observers wonder whether the decision would affect other state budget appropriation questions, such as the ability of the government to continue to pay its bills without an annual budget enacted by July 1.

Katz Eyes State Senate. Former Assemblyman Richard Katz, who directed 1996 Assembly Democrats' elections that restored a Democrat majority in the house, says he "probably" will run for the state Senate in 1998. Mr. Katz, from Sylmar, served 16 years in the Assembly but could not seek re-election in 1996 due to term limits. He intends to run in the Senate district now represented by Democrat Herschel Rosenthal.

COMING UP

May 19: ASSEMBLY REVENUE AND TAXATION COMMITTEE HEARING
Location: Room 126, State Capitol, at 1:30 p.m.
Subjects: AB 1608 (Pringle), exempting newspapers from sales taxes; ACA 14 (Caldera), prohibiting retroactivity when income tax rates are changed, and AB 1358 (Pringle), establishing a tax credit for costs of K-12 education.

May 19: SENATE APPROPRIATIONS COMMITTEE HEARING
Location: Room 4203, State Capitol, upon adjournment of session.
Subjects: Several tax bills are on file, including SB 116 (Peace), re-establishing a solar energy tax credit.

May 20: STATE BOARD OF EQUALIZATION DISCUSSION
Location: Conference Room 122, 450 N Street, Sacramento, at 1 p.m.
Subject: Public discussion of Rules of Practice amendments. (A second public discussion is scheduled June 5 in Culver City.)

May 21: SENATE REVENUE AND TAXATION COMMITTEE HEARING
Location: Room 3191, State Capitol, at 1:30 p.m.
Subjects: Among bills on calendar are SB 30 (Kopp), revising property tax interest rates; SB 1013 (Calderon), imposing an excise tax on adult entertainment, and SB 1300 (Calderon), exempting newspapers from sales tax.

May 21: ASSEMBLY APPROPRIATIONS COMMITTEE HEARING
Location: Room 4202, State Capitol, at 8:30 a.m.
Subjects: Among bills on calendar are AB 203 (Takasugi), conforming to federal law regarding Subchapter S corporations; AB 222 (Takasugi), ex-qualifying interest on sales tax overpayments and under payments, and AB 1027 (Caldera), the assessor's ominous anti-taxpayer property tax bill.