Legislative Update

The Legislature kicked off its two-year session December 5 with brief swearing-in ceremonies and leadership elections in both houses, then adjourned until January 4. Lawmakers also launched the special session called by Governor Gavin Newsom to consider legislation the governor describes as a “penalty on excessive margins” to “deter price gouging by oil companies.” Newsom attended the Assembly and Senate sessions. The governor’s proposal, introduced by Senator Nancy Skinner as SB 2X, effectively would make it illegal for one industry…

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.

The Senate Appropriations Committee voted unanimously August 11 to approve AB 1951 (Grayson), a bill co-sponsored by CalTax and the California Manufacturers and Technology Association (CMTA) to provide a full sales and use tax exemption for manufacturing and research-and-development equipment purchases up to $200 million.

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…

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…

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…

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…

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…

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…