Legislative Update

Stock Photo of Manufacturing

Legislature Sends Manufacturing Support Measure to the Governor

The Senate and Assembly voted August 25 to approve AB 1951 (Grayson), a bill co-sponsored by CalTax and the California Manufacturers and Technology Association (CMTA) to support California jobs and economic growth by providing a full sales and use tax exemption for manufacturing and research-and-development equipment purchases up to $200 million.

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Stock Photo of Manufacturing

SUT Exemption for Manufacturing and R&D Equipment Advances

Legislation to fully exempt California manufacturing and research-and-development equipment from sales and use tax was approved May 19 by the Assembly Appropriations Committee (AB 1951, Grayson). Amendments made by the committee provide that the exemption would apply only to equipment purchases under $200 million – the same cap used for the existing partial exemption. Prior to the amendments, the bill would have eliminated the cap from 2023 through 2028. The legislation, co-sponsored by CalTax and the California Manufacturers and Technology…

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Gas and Bills

Governor and Democratic Leaders Propose Dueling Fueling Rebates

Two more tax “rebates” were introduced in the past seven days in response to rising fuel prices, and a related tax-relief proposal was killed. On March 18, Senate President Pro Tem Toni Atkins and Assembly Speaker Anthony Rendon announced a plan to send $200 to California taxpayers – and their household dependents – with income below $250,000. Budget advisers to Atkins and Rendon said approximately 90 percent of taxpayers would receive a check, and the cumulative “rebate” would be $6.8…

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Costly healthcare

Single-Payer Healthcare Would Cost Up to $552 Billion a Year, Analyst Finds

The government-run “single-payer” healthcare program defeated earlier this year in the Assembly would cost $449 billion to $552 billion a year if approved, the Legislative Analyst Office estimated March 15, adding that “given the enormous uncertainty involved, the ultimate costs …  could be lower or higher than our range indicates by tens of billions of dollars.” Either amount would be far more than the total state spending of $286.5 billion proposed by Governor Gavin Newsom for the 2022-23 fiscal year…

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New Wealth Tax Introduced Just Ahead of Deadline

Just ahead of the February 18 deadline for introducing bills in the 2021-22 legislative session, Assembly Member Alex Lee reintroduced his “wealth tax” proposal in the form of AB 2289. The tax would apply to – but would not be limited to – art and collectibles, real property, pension funds, financial assets held offshore, farm assets, mutual funds, index funds, and stocks. “Last year’s version of the wealth tax led many Californians to rethink living in California, just by virtue…

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Senator Anna Caballero

Senator Caballero Is New Tax Policy Committee Chair

Senator Anna Caballero, a Democrat who represents a district in Merced, has been named chair of the Senate Governance and Finance Committee – the tax policy committee in the upper house. Caballero succeeds Senator Mike McGuire, who was moved to a leadership position by Senate President Pro Tem Toni Atkins. “As steward over proposals that will provide relief and support for working families and small businesses, I look forward to continued service to my district and the state of California…

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Single-Payer Healthcare Bill Is Withdrawn Due to Opposition

The Assembly was poised to vote January 31 on AB 1400 (Kalra), a bill proposing a government-run healthcare program that would cost taxpayers an estimated $365.5 billion per year, but the author withdrew the legislation and announced that it is dead for the year. CalTax is part of a large coalition that opposed AB 1400 because it would have required the largest tax increase in California history, which would increase consumer costs and damage the state’s economy and competitiveness. “It became clear that…

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Single-Payer Healthcare Bill Advances as Deadline Looms

The Assembly Appropriations Committee voted 11-3 on January 20 to approve AB 1400 (Kalra), proposing a government-run healthcare program that would cost taxpayers an estimated $365.5 billion per year. The CalTax-opposed bill now moves to the Assembly floor. Because the bill was introduced last year, it has a January 31 deadline for an Assembly vote to advance to the Senate. AB 1400 requires a simple majority vote for passage. A funding measure linked to the bill requires a two-thirds vote…

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Another Income Tax Increase Is Proposed

A group of lawmakers this week proposed a union-backed personal income tax increase on California’s highest earners, with a top rate as high as 16.8 percent. California’s current top PIT rate of 13.3 percent already is the highest in the United States. The proposal introduced by Assembly Member Miguel Santiago is AB 1253 – the same bill number as an identical proposal he introduced last year that was held in the Senate Governance and Finance Committee without a vote. Santiago…

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