6sfa16

NOTE: * denotes urgency legislation

State Budget
Income Tax/Bank and Corporation Tax
Property Tax
Sales Tax
Miscellaneous

State Budget SB 1393* (Thompson-D) - State Budget Act of 1996 Enacts the 1996 State Budget Act. Chapter 162, Statutes of 1996 - Item Veto Budget Trailer Bills SB 1472* (Solis-D) - Social Services: County Administration Extends by 1 year, until June 30, 1997, existing state law that prevents the reduction of state reimbursement when a county fails to fully fund the county share of non-federal administrative costs for public social service programs as a result of county- imposed funding restrictions. Prevents reductions of state reimbursement when an application for relief for the 1995-96 fiscal year was approved and the level of relief of county match available was at least the amount specified in the application for the 1995-96 fiscal year. Chapter 188, Statutes of 1996 SB 1556* (Johnston-D) - Incarcerated Individuals Establishes a statewide reporting system to identify jail inmates who are receiving public benefits for which they are ineligible while in jail. Requires identifying information to be sent to the State Department of Social Services, which would forward the information to affected agencies of the state, federal and local governments which administer public benefits. Appropriates $230,000 from the General Fund to the department for purposes of the bill in the 1996-97 fiscal year. Chapter 205, Statutes of 1996 SB 1760* (Lockyer-D) - California Youth Authority Creates the Juvenile Crime Enforcement and Accountability Challenge Grant Program to be administered by the State Board of Corrections for the purpose of reducing juvenile crime and delinquency. Chapter 133, Statutes of 1996 SB 1763* (Senate Budget and Fiscal Review Committee) - State Government Includes the 4th annual performance-based budget contracts for the State Department of General Services and the State Department of Consumer Affairs. Chapter 191, Statutes of 1996 SB 1770* (Johnston-D) - State-Owned Property Requires the State Department of General Services (DGS) to undertake and complete an environmental impact report (EIR) by July 1, 1997, on the area surrounding the State Capitol, known as the Capitol Area. Provides that the EIR will be used to determine the cost-effectiveness of consolidating state offices for various Sacramento-based agencies into new site locations. Repeals the current mandate that the DGS sell or lease unused or underutilized property, however, provides an exemption for certain properties, which are identified in the bill, that can be sold or leased. Chapter 193, Statutes of 1996 SB 1771 (Kopp-I) - State Department of General Services Separates the funding and the operational structure of the O.J. Hawkins Data Center from the State Department of Justice and establishes the O.J. Hawkins Data Center as a new department. Vetoed by the Governor SB 1777* (O'Connell-D) - Class Size Reduction Creates the Class Size Reduction Program and appropriates $771 million for its purposes. Chapter 163, Statutes of 1996 SB 1780* (Senate Budget and Fiscal Review Committee) - Social Services Enacts various changes to the following social services programs: (1) Aid to Families with Dependent Children, (2) Supplemental Security Insurance/State Supplementary Payment, (3) Aid to Families with Dependent Children-Foster Care, (4) In-Home Supportive Services, (5) Child Support, (6) General Assistance and (6) Rehabilitation. Chapter 206, Statutes of 1996 SB 1789* (Greene-D) - Class Size Reduction: School Facilities Creates the Class Size Reduction Facilities Fund Program to go along with SB 1777, the Class Size Reduction Program, and appropriates $200 million. Chapter 164, Statutes of 1996 SB 1794* (Wright-R) - Renter's Income Tax Credit Suspends for 1 year the renter's income tax credit. Chapter 192, Statutes of 1996 AB 2972 (Olberg-R) - Schools: Transportation Funding Provides the funding for equalizing current home-to-school transportation apportionments, and establishes a funding mechanism and an appropriation for alleviating the fiscal burden of the school districts with a high transportation cost as a percentage of their budget. Appropriates $50 million. Chapter 194, Statutes of 1996 AB 3137* (Miller-R) - Insurance: Escheat Transfers Proposition 103 rebate escheat funds to the Insurance Fund in the amount necessary to repay principal and interest on a $14 million General Fund loan by June 30, 1998. Limits the increase in examination fee revenue for the 1996-97 fiscal year to no more than $2 million above the amount estimated in the Governor's 1996-97 Budget. Chapter 187, Statutes of 1996 AB 3229* (Brulte-R) - Supplemental Local Law Enforcement Funding Enacts the Citizens' Option for Public Safety program, which has the effect of distributing $100 million in General Fund monies to various local law enforcement entities. Chapter 134, Statutes of 1996 AB 3369* (Bordonaro-R) - Youthful Offenders Reduces the age limit for authorizing a transfer of a person to the California Youth Authority by the Director of Corrections to under 18 years, and requires the transfer to terminate in specified situations. Chapter 195, Statutes of 1996 AB 3482* (Davis-D) - Reading Implements a major reading initiative in grades K-3, including the provision of instructional materials, development of a teacher reading instruction staff development program, and a statewide leadership program. Chapter 196, Statutes of 1996 AB 3483* (Friedman-D) - Health Makes changes in (1) the Medi-Cal program, (2) the Battered Women's Shelter Act, (3) mental health services, (4) developmental disability services, (5) the Drug/Medi-Cal program, (6) emergency medical services for children, (7) the Vital Records Improvement Act, (8) the California Safe Drinking Water Act, (9) the AIDS Drug Assistance Program, and (10) the Child Health Disability Prevention Program. Creates the State and Family Planning Program and the Challenge Grant Program which are necessary to implement the 1996-97 Budget Act. Chapter 197, Statutes of 1996 AB 3484* (Friedman-D) - Medi-Cal Reduces the state fee paid by public hospitals participating in the Disproportionate Share Hospital Program by $10 million. Chapter 198, Statutes of 1996 AB 3487* (Katz-D) - Cigarette and Tobacco Use Fund Allocation Makes changes to specified programs which receive funds from the Cigarette and Tobacco Products Surtax Fund necessary to implement the 1996-97 Budget Act, which appropriates $534.2 million. Chapter 199, Statutes of 1996 AB 3488* (Ducheny-D) - Education Trailer Bill Makes statutory changes necessary to implement the 1996-97 Budget agreement for K-12 and community colleges. Appropriates $937.8 million. Chapter 204, Statutes of 1996 AB 3492* (Frusetta-R) - Education: School Safety and Truancy Establishes the School Violence Reduction Program and provides for grants to schools and school districts. Further establishes a Targeted Truancy and Public Safety Grant Demonstration Program for the purpose of ending the escalating pattern of truancy, antisocial behavior, and delinquency for high-risk youth who participate in the program. Chapter 200, Statutes of 1996 AB 3493*(Assembly Budget Committee) - State Government The omnibus general government trailer bill which makes changes by (1) transferring the Office of Savings and Loan to the State Department of Banking, (2) allowing a one-time use of $832,765 from the Exposition Park Improvement Fund to support the Museum of Science and Industry, (3) making changes in the Office of Emergency Services' financing provisions, (4) making changes in the State Department of Information Technology's funding, (5) repealing obsolete provisions concerning the Commission on State Finance, (6) establishing timelines for the submission of specified budget materials, and (7) consolidating various housing funds. Chapter 201, Statutes of 1996 AB 3495* (Kaloogian-R) - Natural Resources Makes various changes in the law concerning natural resources to implement the 1996-97 Budget Act by including (1) removing the State Fire Marshal's mandate to provide fire safety services to state-leased facilities, (2) revising fees collected by the State Department of Motor Vehicles for off-highway vehicle permits, and (3) allowing, for 1 year, certain administrative flexibilities pursuant to the Performance-Based Budgeting Pilot Project for the State Department of Parks and Recreation and the California Conservation Corps. Chapter 202, Statutes of 1996 AB 3497* (Richter-R) - Education Finance: Revenue Limits Provides for a school district revenue limit equalization adjustment. Establishes an allocation formula for any additional Proposition 98 funds that occur because the Proposition 98 Guarantee is recalculated at a higher level than that estimated at the time of the annual Budget Act. Appropriates $147.1 million to equalize school district revenue limits to the statewide average of similar school district size and type. Chapter 203, Statutes of 1996 AB 3499* (Pringle-R) - Corporation Tax Rates Reduces the Bank and Corporation Tax and Alternative Minimum Tax by 5%. Chapter 170, Statutes of 1996 Other Budget Trailer Bills SB 1753 (Thompson-D) - State Budget: Zero-Based Budgeting Requires the Governor, starting in 1998-99, to annually submit a zero-based budget which sets forth performance standards and an evaluation mechanism to determine whether these standards are satisfied, as specified. Vetoed by the Governor SCA 2 (Kopp-I) - State Budget Reform Provides changes in the process and requirements for enacting the annual Budget Act as follows: 1. Requires the Legislature to enact a balanced budget. 2. Establishes a 3% General Fund reserve for emergencies. 3. Requires the Budget Bill to include a budget adjustment plan, so as to avoid any deficit during the fiscal year. 4. Provides that the Budget Bill shall be passed by a majority vote. 5. Changes the constitutional deadline for passage of the Budget Bill from June 15 to June 30. 6. Requires the Governor and Members of the Legislature to forfeit all salaries and expense allowances for each day the budget goes past the constitutional deadline without being enacted. (Died on Senate Inactive File) Similar legislation is ACA 25 (Goldsmith-R) which failed passage in the Senate Budget Committee, ACA 32 (Morrissey-R) which failed passage in the Assembly Budget Committee, and ACA 33 (Burton-D) which died in Assembly Elections, Reapportionment and Constitutional Amendments Committee. SCA 26 (Thompson-D) - Budget Bill: Vote Requirement Provides for the enactment of a budget bill with a majority vote, and requires statutes enacting budget bills to go into immediate effect. Requires the Governor to submit with the budget a statement of policy goals and outcome-based performance measures. In 2001 and every 4th year thereafter, requires the Governor to submit a strategic plan to the Legislature. Requires the budget to be balanced as enacted. Specifies the budget as enacted must contain a minimum 2% General Fund reserve. Prohibits the Governor and the Legislature to borrow from private financial markets to finance a deficit across fiscal years. (Failed passage on Senate Floor) Similar bills were SCA 39 (Killea-I), which died in Conference Committee, and ACA 49 (Isenberg-D), which failed passage on the Senate Floor. AB 2199 (Brown-D) - Tax Expenditures Requires all tax expenditures to be appropriated in the annual Budget Act for the State of California. Allows expenditures only to the extent appropriated. (Failed passage in Assembly Revenue and Taxation Committee) ACA 4 (Hannigan-D) - Trailer Bills Provides that statutes enacting budget bills are to go into effect immediately upon their enactment, and removes the 2/3 requirement for the adoption of legislation making General Fund appropriations. (Failed passage in Assembly Elections, Reapportionment and Constitutional Amendments Committee) ACA 25 (Goldsmith-R) - Balanced Budget Requires a General Fund balanced budget as of the date of enactment of the Budget Bill, and requires a majority vote on the Budget Bill. (Failed passage in Senate Budget and Fiscal Review Committee) ACA 32 (Morrissey-R) - Budget Bill: Legislative Salaries Forfeited Provides that the salaries and reimbursements of the Members of the Legislature and the Governor are to be forfeited until the budget is passed on time. (Failed passage in Assembly Budget Committee) HR 24 (Isenberg-D) - State Budget Reform Requests the President and Congress to appoint a political receiver for the State of California with the assigned task of reforming the state's budget process, as specified. (Died in Assembly Budget Committee) Income Tax/Bank and Corporation Tax SB 14* (Thompson-D) - Corporation Tax: Motor Vehicle Fuels Imposes a tax on petroleum excess profits to backfill the revenue lost as a result of exempting fuels used to power highway vehicles from the sales tax. (Failed passage in Assembly Revenue and Taxation Committee) SB 38* (Lockyer-D) - Omnibus Tax Legislation Provides for the following income and corporation tax incentive provisions and provides for California's tax conformity in various issues: 1. Increases the qualified research tax credit from 8% to 11% and the 12% basic research credit to 24%. 2. Increases the expensing limit of small business' personal property from $10,000 to $12,500 for 1997 and to $15,000 for 1998 and thereafter. 3. Eliminates the foreign payroll factor computation of the unitary tax, thus permitting a 75% dividend deduction, regardless of fluctuations in foreign payrolls. Reduces the interest offset by 25%. 4. Conforms with federal tax changes concerning medical expenses deductions treating long-term care insurance costs and long-term care expenses as a medical expense. 5. Conforms with federal law allowing small employers and self- employed individuals to create medical savings accounts. 6. Increases the amount of IRA contributions to $2,000 for each spouse. 7. Conforms with federal law concerning the educational assistance exclusion which allows an exclusion from income for the amount employers pay for their employees' educational costs. Makes the exclusion permanent, regardless of whether or not federal law provides for an exclusion. 8. Reduces the initial minimum franchise tax from $800 to $600 for new corporations with gross incomes of less than $1 million. 9. Re-conforms with federal law concerning the employee stock ownership plan dividend and contribution deduction provisions. 10. Extends the 6% manufacturing tax credit to special purpose buildings used in the manufacture of space and communications satellites. 11. Applies the enterprise zone hiring tax credit to the first 20% of minimum wage for up to 1,350 aerospace workers per employer in the Long Beach Enterprise Zone. 12. Conforms with federal law concerning the corporate charitable contributions tax deduction. 13. Conforms with the federal tax credit for enhanced oil recovery, at 5%, for non-vertically-integrated oil producers. 14. Exempts businesses with gross incomes of less than $1 million from the alternative minimum tax. 15. Provides for enhanced manufacturers' investment tax credit and net operating loss carryover for biopharmaceutical and biotechnology start-ups. 16. Allows semiconductor manufacturers to receive a 6% credit for special purpose buildings they construct. 17. Provides a tax credit to "end users" of $15 per ton of rice straw when it is used for processing, generation of energy, manufacturing, export, prevention of erosion, or for other purposes other than burning. Provides that the credit is capped at $400,000 per year and is to be allocated by the Department of Food and Agriculture. 18. Provides a tax credit to lenders which provide low-interest loans for farmworker housing equal to half of the difference between market rates and the rate actually charged. Caps credits at a total of $500,000 per year. 19. Grants a 50% tax credit for the first $250 of qualified Americans With Disabilities Act compliance expenses. 20. Clarifies that risk pools created by tax-exempt, nonprofit organizations are also exempt organizations. 21. Provides a tax credit equal to 50% of the transportation costs to truckers who transport donated food to food banks. 22. Conforms with the new federal tax deduction limits on moving expenses. 23. Conforms with the few federal law restricting deductions on the interest concerning company-owned life insurance loans. 24. Requires 1998 corporation estimated tax payments to be based on 98% of the current year's tax, and 1999 and future estimated payments be based on 100% of the current year's tax. 25. Conforms with federal law relative to discharge of an indebtedness by a creditor. 26. Conforms with new federal restrictions on tax deductions of interest paid to foreign utilities. 27. Conforms with the 1993 federal tax law change which expanded the market-to-market rule by requiring all securities dealers' inventories to be valued at market value with any unrealized gain or loss to be recognized for tax purposes. 28. Conforms with new federal denial of tax deductions for a distribution of partnership assets. 29. Conforms with federal law concerning deduction of the travel expenses of a spouse. 30. Conforms with federal 39 depreciation period for non- residential real property for non-corporate taxpayers. 31. Allows the Employment Development Department to share new-employee information with the Franchise Tax Board. 32. Expands the Franchise Tax Board's nexus program to include S-Corporations and their shareholders. Chapter 954, Statutes of 1996 The following listing is bills which were incorporated into this bill by issue area: 1. Research & Development Tax Credit: AB 917* (Cunneen-R) and AB 3249* (Cunneen-R). 2. Expenses of Small Business' Personal Property: AB 2029* (Frusetta-R). The difference is that AB 2029 provided for federal conformity, whereas SB 38 increases expensing limits to $12,500 for 1997 and $15,000 for 1998 and thereafter. 3. Unitary - Dividend Deduction and Interest Offset: SB 249* (Alquist-D) and AB 916* (Cunneen-R). 4. Medical Savings Account: AB 1758* (Knowles-R). 5. Spousal IRA's: AB 2405* (Brulte-R). 6. Educational Assistance Exclusion: AB 1905* (Cunneen-R). 7. Minimum Franchise Tax: AB 3298* (Davis-D). 8. ESOP Conformity: SB 979* (Solis-D). 9. Enterprise Zone Enhancement for Aerospace Workers: AB 3311* (Kuykendall-R). 10. Credit for Enhanced Oil Recovery: AB 703* (Setencich-R). 11. Alternative Minimum Tax Exemption for Small Business: AB 3401* (Archie-Hudson-D). 12. Discharge of Indebtedness: SB 249* (Alquist-D) and AB 743* (Kuykendall-R). 13. Biopharmaceuticals & Biotechnology: AB 3312* (Takasugi-R). 14. Semiconductor Equipment Clean Rooms: AB 197* (Cunneen- R) and AB 3312* (Takasugi-R). 15. Credit For Construction of Farmworker Housing: AB 1761 (Bustamante-D) and AB 2664 (Bustamante-D). 16. Credit for Use of Rice Straw: SB 2086* (Thompson-D). 17. Credit for American With Disabilities Act: SB 2173* (Hurtt- R). 18. Nonprofit Insurance Risk Pools: SB 1934* (Mello-D). 19. Credit for Transportation of Donated Food Products: AB 364* (Cannella-D). 20. Corporate Disclosure: SB 875 (Marks-D) and AB 3312 (Takasugi-R). 21. Employee Information: SB 875 (Marks-D) and AB 2498 (Katz- D). SB 94* (Greene-D) - Corporation Tax Credit: School Construction Provides for a 50% tax credit for costs incurred by a developer to build a new school. Provides that the amount of credit statewide could not exceed $200, unless up to an additional $200 in authorization is provided in the Budget Act. Sunsets December 1, 2007. (Died in Senate Appropriations Committee) SB 173 (Alquist-D) - Income Taxes: Illegal Employees Requires the Employment Development Department and the Franchise Tax Board to receive specific information from the Immigration and Naturalization Service regarding illegal alien employees and to ascertain whether those employees or their employers have paid or withheld the appropriate amount of personal income taxes, and, in the case of noncompliance with specified tax laws, to pursue appropriate enforcement actions. (Died in Assembly Revenue and Taxation Committee) SB 314* (Campbell-R) - Income Tax Reduction: College Tuition Provides for a $10,000 tax deduction for qualified college expenses, as specified. (Died in Senate Revenue and Taxation Committee) SB 343* (Campbell-R) - Income Tax Rates Replaces the current state income tax with a tax based on a percentage of federal taxable income, as defined, for taxpayers who do not have income from farm, business or rental activities, schedule California additions, or schedule California subtractions. (Died in Senate Revenue and Taxation Committee) SB 405* (Haynes-R) - Income/Corporation Tax Credits: Donation of Computers Provides for a tax credit of up to $50 for each qualified computer donated to schools or universities, as specified. (Died in Senate Appropriations Committee pending concurrence in Assembly amendments) Similar legislation was AB 1293* (Alpert-D), which died on the Senate Floor. SB 420* (Alquist-D) - Income/Corporation Taxes: Enterprise Zones Allows the enterprise zone hiring credit to be claimed for 5 years even if the enterprise zone designation expires after the individual is hired, and modifies the definition of "qualified employee" by listing the specified criteria for eligible job programs. (Died in Assembly Appropriations Committee ) SB 427* (Leslie-R) - Income and Corporation Tax: Passive Activity Loss Rules Conforms state income and corporation tax law to the 1993 federal law changes regarding passive loss rules to rental real estate activities. (Died in Senate Appropriations Committee) SB 536* (Hughes-D) - Corporation Tax Credit Allows a refundable tax credit to a nonprofit, tax exempt hospital that is operating within an enterprise zone, program area or the Los Angeles Revitalization Zone (LARZ) and that meets the requirements for specified employee hiring credits and/or the LARZ sales and use tax credit. (Died in Senate Revenue and Taxation Committee) SB 559 (Campbell-R) - Income/Corporate Taxes: Forms Requires the Franchise Tax Board to insure that the first tax forms issued with respect to any tax year incorporate all applicable changes in federal law that have been incorporated into the California Revenue and Taxation Code and that have been adopted before the end of that tax year. (Died in Senate Appropriations Committee) SB 706* (Maddy-R) - Alternative Minimum Tax: Capital Gains Eliminates the alternative minimum tax and excludes capital gains from gross income. (Failed passage in Senate Revenue and Taxation Committee) SB 714* (Lockyer-D) - Income Tax Exclusions: German Property Claims Enacts the Holocaust Victim Compensation Relief Act to conform with federal law by exempting from taxation income received from the German government as reparation for property which was located in the former East Germany and was confiscated during the Nazi regime. Chapter 29, Statutes of 1996 A similar bill was AB 1624* (Kuehl-D), which became Chapter 28, Statutes of 1996 SB 715 (Senate Revenue and Taxation Committee) - Omnibus Tax Bill Makes various non-substantive, technical changes to, and corrects erroneous references in, the law concerning, the income tax. Incorporates provisions of SB 1829 (Senate Revenue and Taxation Committee), SB 1830 (Senate Revenue and Taxation Committee), SB 1831 (Senate Revenue and Taxation Committee) and AB 1971 (McDonald-D). Chapter 952, Statutes of 1996 SB 780* (Leonard-R) - Income/Corporation Taxes: Alternative Fuels Allows a tax credit equal to 25% of the costs paid or incurred for the construction, reconstruction or acquisition of qualified refueling property, as specified. (Died in Senate Appropriations Committee) SB 846 (Thompsn-D) - Tax Credit: Salmon and Steelhead Trout Simplifies the use of an existing tax credit for projects which improve the habitat for salmon and steelhead trout. Places a maximum credit amount of $50,000 per year for an individual or partnership in any one calendar year. Chapter 166, Statutes of 1996 SB 875 (Marks-D) - Income/Corporations Taxes: Seismic Rehabilitation Allows an income tax credit for the cost of seismic rehabilitation on historic buildings in California. (Failed passage in Assembly Revenue and Taxation Committee) SB 1149* (Watson-D) - Medical Savings Accounts: Income Taxes Excludes interest earned on a medical savings account from gross income. (Died in Senate Appropriations Committee) A similar bill was SB 1210* (Hughes-D), which died in Senate Revenue and Taxation Committee. SB 1227* (Haynes-R) - Income/Corporation Tax Credit: Language Expense Allows a tax credit equal to 50% of the amount paid or increased during the taxable or income year for qualified language training expenses in connection with the training of the taxpayers' employees in English language and literacy. (Died in Senate Revenue and Taxation Committee) SB 1300 (Petris-D) - Income Tax Rates: Higher Education Extends the application of the highest managerial income tax rates permanently. Transfers increased revenue resulting from this change to a special subaccount of the General Fund to be allocated to higher education. (Died on Senate Inactive File) SB 1447 (Mello-D) - Income Tax: Alzheimer's Disease Checkoff Extends the tax checkoff for Alzheimer's Research and the Senior Legislature through 2000. Chapter 494, Statutes of 1996 SB 1484* (Mello-D) - Income Taxes: Senior Citizens Suspends for 5 years the inflation adjustment for the senior exemption tax credit, and extends the California Fund for Senior Citizens checkoff for 5 years. (Died in Senate Revenue and Taxation Committee) SB 1489* (Rogers-R) - Corporation Taxes: Seismic Safety Improvements Allows accelerated depreciation for seismic retrofitting expenses for buildings and other real property improvements. (Failed passage in Senate Revenue and Taxation Committee) SB 1502 (Kopp-I) - Income/Corporation Taxes: Violation and Litigation Increases penalties for specified income tax fraud. Clarifies that taxpayers must exhaust all administrative remedies, including the filing of an appeal before the State Board of Equalization, to be eligible for a judicial award of reasonable attorney's fees and litigation costs. Chapter 996, Statutes of 1996 SB 1550* (Lewis-R) - Corporation Taxes: Conventions and Trade Shows Specifies that corporations that are not incorporated in California and whose sole activity in this state is engaging in convention and trade shows, and which meet specified criteria regarding those activities, would be subject to the corporate income tax, instead of the franchise tax. Chapter 286, Statutes of 1996 SB 1580* (Kopp-I) - Unitary Tax Allows commonly owned businesses to elect to be treated as a unitary business for 10 years for purposes of computing their California corporate tax liability. (Died in Senate Appropriations Committee) SB 1682 (Johnston-D) - Tax Refunds: Disability Insurance Requires the Director of Employment Development, in collaboration with the Franchise Tax Board, to identify taxpayers who have overpaid disability insurance contributions from tax years January 1, 1993 to December 31, 1995 and have not received refunds due to them, and by October 15, 1997, to credit those taxpayers with the amount of any overpaid disability insurance with interest, as specified. Requires the Director of the Employment Development Department starting with the 1996 tax year to continue to identify and refund overpayments, with interest, to those taxpayers who have overpaid and who have not received refunds due to them. Chapter 1157, Statutes of 1996 SB 1794* (Wright-R) - Renter's Tax Credit Suspends the Renter's Income Tax Credit until January 1, 1997. Chapter 192, Statutes of 1996 SB 1870* (Alquist-D) - Corporation Tax: Water's Edge Election Expands the definition of "substantial unintentional noncompliance," as specified, for purposes of permitting the perfection of a water's edge election. (Died in Senate Appropriations Committee) SB 1878* (Hurtt-R) - Income/Corporation Taxes: Federal Unemployment Tax Act (FUTA) Provides a non-refundable state tax credit equal to the current federal credit allowed under FUTA. (Died in Senate Revenue and Taxation Committee) SB 1960* (Calderon-D) - Income Tax Credits: Lead Hazards Enacts the Lead Poisoning Prevention Financing Act of 1996 to provide a tax credit for owners of pre-1950 residential rental property who control lead hazards, and adds an addition $15 million for allocation of low-income housing credits by the Debt Allocation Committee. (Died in Senate Appropriations Committee) SB 2010* (Hurtt-R) - Income/Corporation Tax: Minimum Wage Credit Allows a 100% credit for any additional amount of wages paid as a result of an increase in the state's minimum wage above $4.25/hour. (Died in Senate Revenue and Taxation Committee) SB 2048* (Leslie-R) - Income/Corporation Taxes: Business Improvement Accounts Allows taxpayers to establish trusts known as business improvement accounts to save money to make improvements to a business' plant and equipment. Provides these funds would be deductible, as specified. (Died in Senate Revenue and Taxation Committee) SB 2110 (Maddy-R) - Corporation Taxes: Nonprofit Organizations Provides that there is a rebuttable presumption that private cubs and fraternal orders are not to be considered a business establishment if the organization qualifies for an exemption under Section 501(c) of the Internal Revenue Code. (Died on Senate Inactive File) SB 2157 (Hayden-D) - Income Tax: Law Enforcement Checkoff Allows taxpayers to direct 1% of their income tax to local law enforcement and juvenile crime prevention. (Died in Senate Revenue and Taxation Committee) SB 2163* (Haynes-R) - Income/Corporation Taxes: Medical Benefits Credit Provides for an employer's tax credit of 15% of the amount paid for supplemental employee medical benefits. (Died in Senate Revenue and Taxation Committee) SCA 16 (Haynes-R) - Income Tax: Single Rate Provides for a statewide single rate tax applicable to the personal income tax. (Died in Senate Revenue and Taxation Committee) Similar legislation is ACA 29 (Kaloogian-R), which died in Assembly Revenue and Taxation Committee. SCA 23 (Lewis-R) - Income Tax: Social Security Exempts social security benefits from state income taxes. (Died in Senate Revenue and Taxation Committee) AB 89* (Hoge-R) - Income Tax: Partnership Debt Provides a state income tax exclusion for any benefit to a partner that arises from the restructuring of debt of a limited partnership. (Died in Assembly Revenue and Taxation Committee) AB 90* (Baca-D) - Income Tax Credit: Child Care Provides an income tax credit and dependent care credit for the 1996 through 1999 tax years for taxpayers with adjusted gross incomes of less than $100,000. (Died in Assembly Revenue and Taxation Committee) Similar legislation is AB 183* (Alpert-D) which died in Assembly Revenue and Taxation Committee. AB 194* (K. Murray-D) - Income and Corporation Taxes Makes permanent the 10% and 11% income tax rates for high income taxpayers and the 8/5% alternative minimum tax rate. Increases the personal exemption credits. Reduces the corporation franchise tax rate from 9.3% to 7.7%. Reduces the minimum franchise tax from $800 to $600. With respect to S- Corporations, eliminates the franchise and income tax rate of 1.5% (Died in Assembly Revenue and Taxation Committee) AB 208* (Cannella-D) - Income/Corporation Tax: Solid Waste Energy Conversion Creates a tax credit equal to 1-1/2 cents for each kilowatt hour of energy produced by the taxpayer's solid waste energy conversion facility. (Died in Senate Revenue and Taxation Committee) AB 249* (Baldwin-R) - Corporation Tax: Tax Rate Reduction Reduces the corporate franchise tax rate from 9.3% to 7.5%. (Failed passage in Senate Revenue and Taxation Committee) AB 252* (Richter-R) - Income Tax Credits: Contributions Allows a credit for charitable contributions to qualified poverty relief organizations or organizations providing senior services. (Died in Assembly Revenue and Taxation Committee) AB 271 (Kuykendall-R) - Income/Corporation Taxes: Enterprise Zones Makes a number of changes in the Enterprise Zone Law. Provides that for employers in the aircraft industry, the wage credit would be based on 202%, rather than 150%, of the minimum wage. (Died in Senate Appropriations Committee) AB 299* (Rainey-R) - Corporation Tax: S-Corporations Allows corporations that chose S-Corporation status in 1987 to make a one-time election to pay a 2.5% tax on the earnings they accumulated as a C-Corporation. Allows distributions made from these earnings to be excluded from shareholders gross income. (Failed passage in Senate Revenue and Taxation Committee) AB 458* (Ducheny-D) - Income Tax: Vacant Properties Prohibits any taxpayer, except certain lenders, that owns substantial vacant properties from receiving any deduction for interest, taxes, depreciation or amortization incurred. (Died in Conference Committee) AB 517* (Tucker-D) - Los Angeles Revitalization Zone: Tax Credits Allows a tax credit equal to 15% of the cost paid or incurred on or after July 1, 1995 for qualified projects purchased from a minority-owned manufacturing business located in an enterprise zone or program area that is located within the Los Angeles Revitalization Zone. (Died in Assembly Revenue and Taxation Committee) AB 519* (Tucker-D) - Income/Corporation Taxes: California Products Allows a tax credit for an amount equal to 10% of the amount paid or incurred by a project owner for steel products or components fabricated in California and used in construction projects located in California. (Died in Assembly Revenue and Taxation Committee) AB 538* (Archie-Hudson-D) - Tax Credits Enacts the Small Business Tax Incentive Act of 1995 which allows small manufacturers and small manufacturing businesses that apply computer technology in an industrial setting to claim a tax credit equal to 50% of wages paid to qualified employees in a training program. (Died on Assembly Inactive File) AB 546* (Davis-D) - Corporation Tax: Minimum Tax Exempts from the $800 minimum tax, corporations with gross incomes of less than $1 million for the first 5 years of incorporation. (Died in Senate Revenue and Taxation Committee) AB 556* (Ducheny-D) - Corporation Tax Credits: Headquarters Provides a tax credit equal to 6% of eligible costs paid by a qualified taxpayer that either locates a new corporate headquarters or maintains or expands an existing corporate headquarters in this state. (Died in Senate Revenue and Taxation Committee) AB 604* (Takasugi-R) - Income Taxes: Capital Loss for Sale of Residence Allows a tax deduction against income for loss, as specified, resulting from the sale or exchange of an individual's principal residence. (Failed passage in Senate Revenue and Taxation Committee) AB 643* (Setencich-R) - Income/Corporation Tax Credits: Health Benefit Creates a tax credit equal to the amount of premiums paid or incurred during the taxable year by specified small business taxpayers to obtain health benefits coverage for the taxpayers' employees or their dependents. (Died in Assembly Revenue and Taxation Committee) Similar legislation is AB 912* (Cunneen-R), which died in Assembly Revenue and Taxation Committee, and AB 1757* (Knowles-R), which died in Assembly Revenue and Taxation Committee. AB 647* (Bowen-D) - Corporation Taxes: Minimum Tax Reduces the annual minimum franchise tax from $800 to $400. (Died in Assembly Revenue and Taxation Committee) AB 736* (Cortese-RFM) - Income/Corporation Taxes: Telecommuting Tax Credit Provides for a personal and corporate tax credit for telecommuting. Allows a home deduction for taxpayers who telecommute from offices within their homes. (Died in Assembly Revenue and Taxation Committee) AB 744* (Kuykendall-R) - Corporation Taxes Requires the Franchise Tax Board to cancel any tax, penalty, or interest for certain corporations that have accumulated liabilities due to incomplete dissolution of operations if certain conditions are met and the corporation pays a fee of $200. Establishes a graduated minimum franchise tax for the first 4 years after formation of any bank or corporation. Chapter 505, Statutes of 1996 AB 759* (Brown-D) - Income/Corporation Tax: Low-emission Vehicles Extends the January 1, 1996 sunset date for the income tax and corporation tax low-emission credits to January 1, 2002. (Died in Assembly Appropriations Committee) AB 779* (Aguiar-R) - Income/Corporation Tax Credits: Wages and Equipment Provides for tax credits for wages and equipment related to employees in training programs. (Failed passage in Senate Revenue and Taxation Committee) AB 850* (Morrissey-R) - Income Tax: Qualified Retirement Income Enacts the Morrissey Retirement Income Protection Act, which exempts non-resident pension income from tax in conformity with federal law. Chapter 506, Statutes of 1996 AB 913* (Cunneen-R) - Income/Corporation Tax Credits: Ridesharing Extends the January 1, 1996 sunset for the credits for employer- sponsored ridesharing programs, employer-provided transit passes, and employee vanpool subscription costs to January 1, 2001. (Died in Senate Appropriations Committee) AB 1057* (Richter-R) - Income/Corporation Taxes: Unprocessed Timber Adds a specified definition for "unprocessed timber" in the provisions regarding the sourcing of unprocessed timber to U.S. source income and the treatment of sales of unprocessed softwood timber in the California income apportionment formula. (Failed passage in Senate Revenue and Taxation Committee) AB 1098* (Woods-R) - Corporation Taxes: Minimum Franchise Tax Provides an exemption from the minimum franchise tax for the first 5 income years after the formation of any bank or corporation. (Failed passage in Senate Revenue and Taxation Committee) AB 1118* (Kuykendall-R) - Income/Corporation Taxes: Disaster Losses Provides special disaster loss treatment for losses sustained as a result of any declared disaster in this state. (Died in Assembly Revenue and Taxation Committee) AB 1187 (Takasugi-R) - Tax Credits: Employment of Pupils Allows a regional occupational center or program to arrange for the employment of pupils, and allows a tax credit to employers for pupils enrolled in such programs or work experience programs. (Failed passage in Senate Revenue and Taxation Committee) AB 1207 (Mazzoni-D) - Income/Corporation Tax Credits: School Facility Construction Creates a tax credit equal to 30% of the cost paid or incurred by a taxpayer for establishing or constructing a school facility primarily for the children of employees of the taxpayer or of the taxpayer's tenant leasing commercial or office space. (Failed passage in Senate Revenue and Taxation Committee) AB 1224* (Pringle-R) - Income Tax: Taxable Income Provides an exemption from taxation under the income tax law for every individual whose taxable income does not exceed $15,000 ($30,000 if the individual is a head-of-household). (Died in Assembly Revenue and Taxation Committee) AB 1369* (Brulte-R) - Income/Corporation Tax Rates Reduces the tax rates from those in effect in 1995 by 15%, phased in over a 3-year period. (Died in Assembly Revenue and Taxation Committee) AB 1442* (Baca-D) - Tax Credit: Environmental Mitigation Provides for tax credits for taxpayers who must comply with any environmental mitigation requirement, as specified. (Died in Assembly Revenue and Taxation Committee) AB 1446* (Baldwin-R) - Income Tax Credit: Children Provides for an additional state income tax credit for each child of a qualified taxpayer that is under the age of 13 years, equal to $500 per child. (Failed passage in Senate Revenue and Taxation Committee) AB 1502* (Brewer-R) - Income/Corporation Tax: Manufacturing Credit, Restaurants Expands the existing Manufacturers' Investment Credit (MIC) by creating an MIC solely for eating establishments. (Died in Senate Revenue and Taxation Committee) AB 1550 (Sher-D) - Income/Corporation Taxes: Fish Habitat Provides for a tax credit against net tax in an amount equal to 10% of amount paid or incurred for salmon and steelhead trout habitat restoration and improvement projects. (Failed passage in Assembly Revenue and Taxation Committee) AB 1626* (Alpert-D) - Income Taxes: Military Income Exclusions Conforms with federal tax law by excluding from state taxable income any compensation received after January 21, 1995 by military personnel serving in Bosnia and Herzegovina and other nearby specified areas, up to $4,225 per month. Chapter 723, Statutes of 1996 AB 1670* (Takasugi-R) - Income/Corporation Taxes: Enterprise Zones Modifies definitions of qualified individuals/employees for purposes of the enterprise zone/program area hiring credits, and makes similar changes in the Local Military Base Recovery Area Act. (Failed passage in Senate Revenue and Taxation Committee) AB 1673* (Takasugi-R) - Income/Corporation Taxes: Capital Gains Indexes capital gains for inflection, as specified. (Failed passage in Senate Revenue and Taxation Committee) AB 1759* (Knowles-R) - Income Tax Credit: Health Insurance Provides for a maximum tax credit of $250 for self-employed individuals who purchase a health insurance policy during the taxable year. (Failed passage in Senate Revenue and Taxation Committee) AB 1766* (Baldwin-R) - Taxation: Enterprise Zones Expands the definition of "qualified property" and "qualified employee" for purposes of the enterprise zone and sales tax credit and hiring credit. (Failed passage in Senate Revenue and Taxation Committee) AB 1814 (Bowen-D) - Income Tax: Campaign Finance Provides for a checkoff on the tax return for campaign financing purposes. (Died in Assembly Elections, Reapportionment and Constitutional Amendments Committee) AB 1846* (Napolitano-D) - Income/Corporation Taxes: Employee Training Provides employers with a credit equal to 50% of the cost of training an individual hired and trained in an agreement with a community college. (Died in Assembly Revenue and Taxation Committee) AB 2033* (Brulte-R) - Income/Corporation Tax Rate Provides for a phased-in 15% rate reduction over 3 years, and reduces the insurance tax rate on non-qualified annuities from 2.35% to 1/2% (this was the Governor's 15% tax cut proposal). (Died in Senate Revenue and Taxation Committee) AB 2041* (Frusetta-R) - Income/Corporation Tax Credit: Agriculture Expands the existing manufacturer's investment credit by allowing taxpayers engaged in specified activities related to agriculture and animals to claim the credit. (Failed passage in Senate Revenue and Taxation Committee) AB 2055* (McPherson-R) - Income Tax: Low-income Taxpayer's Credit Establishes a new low-income credit for taxpayers that is modeled on the expired credit. (Failed passage in Senate Revenue and Taxation Committee) AB 2073* (Battin-R) - Income/Corporation Tax Deduction Conforms with federal treatment of gifts of appreciated property for donations made in 1996 and future. (Died in Senate Revenue and Taxation Committee) AB 2094* (Cunneen-R) - Income Tax: Tentative Minimum Tax Eliminates the tentative minimum tax limitation on personal exemption credits by allowing the personal exemption credits to reduce regular tax below the amount of the tentative minimum tax. (Failed passage in Senate Revenue and Taxation Committee) AB 2133* (Harvey-R) - Income/Corporation Taxes: Employee Training Expense Allows a taxpayer a credit equal to the amount paid or incurred during the taxable or income year for on-the-job training for an eligible employee. (Died in Assembly Revenue and Taxation Committee) AB 2200* (Alby-R) - Corporation Tax: Charitable Contributions Conforms with federal charitable contribution limits to 10% of net income and 5-year carryover of excess contributions. (Died in Senate Appropriations Committee) AB 2277* (Thompson-R) - Income/Corporation Taxes: Elder Care Credit Allows a tax credit of $250 per employee for costs paid or incurred for operating an elder care program, and provides information on elder care services for the taxpayer's employees, as specified. (Failed passage in Senate Revenue and Taxation Committee) AB 2319 (Weggeland-R) - Income Tax: Earnings Withholding Orders Requires the Franchise Tax Board to establish a pilot program to issue earnings withholding orders for taxes by nonprofit media, electronic transmission or other technology. Chapter 239, Statutes of 1996 AB 2321 (Weggeland-R) - Income/Corporation Tax Credit: Vehicle Remote Controller Provides a tax credit for the modification or purchase of equipment that controls vehicular access to a controlled access parking facility to enable the barrier or gates to be actuated by a universal remote controller. (Died in Assembly Transportation Committee) AB 2361* (Knight-R) - Income/Corporation Tax Credits: Aerospace Sales Grants a tax credit to aerospace companies for making sales to the federal government, as specified. (Died in Senate Revenue and Taxation Committee) AB 2373* (K. Murray-D) - Income Tax Credit: Dependent Children Establishes a $167 income tax credit for dependent children under 18 years of age who are residents of California. (Died in Assembly Revenue and Taxation Committee) AB 2378* (Margett-R) - Income/Corporation Taxes: Telecommuting Credit Allows a tax credit equal to 15% of the equipment and training cost for a telecommuting employee. (Died in Assembly Appropriations Committee) AB 2406* (Villaraigosa-D) - Income Taxes: Local Fiscal Restoration Restores the 2 highest personal income tax rates of 10% and 11% for purposes of generating revenues for local agencies. (Failed passage in Assembly Local Government Committee) AB 2414 (Rainey-R) - Corporation Tax: Alternative Minimum Tax Requires the Franchise Tax Board and the Department of Finance, no later than June 1, 1997, to jointly prepare and makes recommendations to the Legislature regarding statutory changes aimed at simplifying the alternative minimum tax. Chapter 428, Statutes of 1996 AB 2480* (Takasugi-R) - Income Tax: Deductions Allows taxpayers to use federal income amounts to compute limits on IRA deductions. Chapter 473, Statutes of 1996 AB 2499* (Kuykendall-R) - Corporation Tax: Elective Combined Reporting Allows members of a commonly controlled group, whether unitary or not, to elect to file a combined report for purposes of measuring income subject to sate taxation. Provides that all income would be taxable as business income. (Died in Senate Revenue and Taxation Committee) A similar bill was SB 1580* (Kopp-I), which died in Senate Appropriations Committee. AB 2592* (Cortese-RFM) - Income/Corporation Tax: Telecommuting Credit Grants a $100 tax credit for creating residential telework programs under which employees spend at least 40% of their work time working for the employer at home, as specified. (Failed passage in Senate Revenue and Taxation Committee) AB 2644* (K. Murray-D) - Income Tax Credit: Home Computers Enacts the Family Education Tax Incentive Act of 1996 establishing a $100 credit for the costs of purchasing a home computer, and a $100 credit for costs of educational software for a home computer. (Died in Assembly Revenue and Taxation Committee) AB 2650* (Alby-R) - Income Tax: Dependent Exemption Credit Increases the dependent exemption credit to $75 for 1997 and adjusts the amount for inflation each year thereafter. (Died on Assembly Inactive File) AB 2661* (Alpert-D) - Income/Corporation Tax: Computer Programming Expands the existing manufacturer's investment credit and sales tax exemptions to allow taxpayers involved in specified computer program and software activities to claim the credit exemption. (Died in Assembly Appropriations Committee) AB 2671 (Takasugi-R) - Income/Corporation Taxes: Penalties Requires the Franchise Tax Board to issue a second notice and demand 14 days following the date of the first notice and demand when taxpayers do not furnish information or tax returns before the 25% penalty can be assessed. (Failed passage in Senate Revenue and Taxation Committee) AB 2688* (Kuykendall-R) - Corporation Tax: Doing Business Exempts corporations whose only presence in California is warehousing of goods from taxation, as specified. (Died in Senate Revenue and Taxation Committee) AB 2761* (Poochigian-R) - Income/Corporation Tax Credits: Agriculture Expands the existing manufacturer's investment credit and sales and use tax exemption to allow taxpayers involved in specified agricultural activities to claim the credit/exemption on specified post-harvesting property. (Failed passage in Senate Revenue and Taxation Committee) AB 2849* (Bordonaro-R) - Income/Corporation Tax Credit: Language Training Allows a tax credit equal to 15% of the cost of training employees in English language proficiency. (Failed passage in Senate Revenue and Taxation Committee) AB 2884 (Villaraigosa-R) - Income/Corporation Taxes: Evaluation Requires the Legislative Analyst, in consultation and cooperation with the Department of Finance, the State Board of Equalization, and the Franchise Tax Board, to conduct accountability evaluations for all income, bank and corporation, and sales tax credits enacted on and after January 1, 1997. (Failed passage in Assembly Revenue and Taxation Committee) AB 2950* (Speier-D) - Income Taxes: Tutoring Tax Credit Allows a tax credit of up to $400 for tutoring a dependent child in math, science or reading, and for tutoring for attention deficit disorder or dyslexia. (Failed passage in Assembly Revenue and Taxation Committee) AB 2978 (Escutia-D) - Income/Corporation Taxes: Community Development Allows a tax credit against income and corporation taxes for a qualified contribution to an approved community partnership project. (Died in Assembly Revenue and Taxation Committee) AB 3002 (Granlund-R) - Income/Corporation Taxes: Military Base Recovery Extends the Local Area Military Base Recovery Area Act both in number and duration, and correspondingly extends tax incentive provisions. (Failed passage in Senate Revenue and Taxation Committee) AB 3030 (Speier-D) - Income Tax: California Children's Fund Allows individual California taxpayers to designate an amount equal to 1% of their tax liability to a new special fund to be used to fund children's social service programs at the county level. (Died in Assembly Appropriations Committee) AB 3076* (Baldwin-R) - Income/Corporation Taxes: Qualified Wages Credit Provides a tax credit for an amount equal to 33-1/3% of qualified wages, not to exceed $6,000 per taxable or income year, paid by the employer in this state during the taxable year to each qualified student. (Died in Assembly Revenue and Taxation Committee) AB 3117* (Brulte-R) - Corporation Tax Exemption: Credit Unions Exempts state-chartered credit unions from bank and corporation taxes and sales taxes. (Died in Senate Revenue and Taxation Committee) AB 3162* (Burton-D) - Income/Corporation Taxes: Low-emission Vehicular Fuels Provides for tax credit ranging from 25% to 100% of the differential cost of the purchase of a new qualified vehicle or the qualified re-power of a vehicle over 10,000 lbs. gross vehicle weight certified to meet specified emission standards. (Failed passage in Assembly Revenue and Taxation Committee) AB 3177* (Tucker-D) - Income/Corporation Taxes: Los Angeles Revitalization Zone Eliminates the Los Angeles Revitalization Zone apportionment formula from tax credits, and limits these credits to a specified percentage of net tax or tax, as specified. (Died in Assembly Appropriations Committee) AB 3194* (Vasconcellos-D) - Income/Corporation Taxes: Stock Options Establishes a new class of discounted stock option; and permits an individual to exclude from income the exercise of this option prior to 2002, if the person's income is no more than $40,000 and no more than 1,000 shares of stock worth no more than $100,000 are transferred by exercising the option. Chapter 951, Statutes of 1996 AB 3212 (Caldera-D) - Corporation Taxes: Bond Revenues to Local Government Requires that the bank tax revenues be transferred semiannually from the Bank and Corporation Tax Fund into a Financial Aid to Local Agencies Fund to assist cities. (Failed passage in Assembly Revenue and Taxation Committee) AB 3219* (Brown-D) - Income Tax: Access to College Education Fund Establishes the Access to College Education Fund to receive contributions made by eligible parents and students to defray postsecondary educational expenses. Provides that for income tax purposes, students could deduct up to $1,000 annually in contributions to the fund. (Failed passage in Assembly Revenue and Taxation Committee) AB 3240* (Conroy-R) - Income/Corporation Taxes: Military Leave Credit Allows a $500 tax credit for employers whose California employee is a member of any military reserve or the National Guard and is assigned to at least 10 days of active duty to meet any emergency. (Failed passage in Senate Revenue and Taxation Committee) AB 3267* (Frusetta-R) - Income/Corporations Taxes: Health Care Credit: Farmworkers Provides for a 25% tax credit for costs of preventive health care for agricultural employees. (Failed passage in Senate Revenue and Taxation Committee) AB 3322* (Kaloogian-R) - Income/Corporation Tax Credits: Zero and Low-emission Vehicles Provides a tax credit equal to 50% of the qualified cost of qualified property that is placed in service in this state and is used for the production of zero-emission and ultra-low-emission vehicles. (Died in Assembly Revenue and Taxation Committee) AB 3394* (Bowen-D) - Corporation Taxes: Minimum Tax Provides a phase-in schedule of the minimum franchise tax for any bank or corporation with gross receipts of less than $1 million for the year. (Died in Assembly Revenue and Taxation Committee) AB 3399 (Knox-D) - Income/Corporation Taxes: Postsecondary Education Allows 3 separate tax credits for donations to community colleges in California. Allows the credit on donations of (1) qualified property, (2) a facility, or (3) money to maintain the facility. (Died in Assembly Revenue and Taxation Committee) AB 3437* (Bowen-D) - Income Tax: Health Insurance Deduction Increases, from 25% to 100%, the allowable deduction for health insurance costs for self-employed individuals. (Failed passage in Assembly Revenue and Taxation Committee) AB 3499* (Pringle-R) - Corporation Tax Rate: Reduction Reduces the bank and corporation tax rate by 5%, from 9.3% to 8.84%, and reduces the alternative minimum tax rate from 7% to 6.65%. Chapter 170, Statutes of 1996 AB 31XX* (Sweeney-D) - Income Tax: Local Fiscal Restoration Extends the application of the highest marginal income tax rates. Provides that increased revenue from this extension is to provide local fiscal restoration. (Died on Assembly Third Reading File) NOTE: Proposition 217 on the November 1996 ballot, if passed by the voters, reinstates a previously temporary state personal income tax increase on high-income taxpayers that expired at the end of 1995 and distributes the new revenues to schools and local governments. Property Tax SB 44 (Kopp-I) - Property Tax: Possessory Interests Provides the clerk of a county board of supervisors with the authority to reject certain duplicate applications for reductions of property tax assessment appeals. Amends property tax law regarding the change in ownership treatment of taxable possessory interests for both renewals and subleases. Chapter 388, Statutes of 1996 SB 54 (Ayala-D) - Property Taxation: Revenue Allocation Revises the annual tax increment allocated to each jurisdiction with respect to any property tax revenue that is derived from the taxation of any housing unit, residence, or residential development that is done on or after January 1, 1996, as specified. (Died in Senate Local Government Committee) SB 494 (Maddy-R) - Property Taxation Makes a variety of changes concerning the assessment of property and the appeals of those assessments, including charging when publicly-owned property which is leased to a private party is reassessed. (Died in Assembly Revenue and Taxation Committee) SB 713* (Maddy-R) - Property Tax: Cleanup to SB 657 of 1995 Makes various cleanup changes to SB 657 of 1995 which provided for numerous property tax reforms. Permits state and local government entities to file a one-time annual report of specified information regarding property ownership changes with assessors rather than file certain specified documents upon each individual renewal of a possessory interest. Provides for the payment of interest at .75% on the outstanding balances of property taxes due on escape assessments in instances in which (1) the taxpayer elects a 4-year installment payment plan and (2) the escape assessment is the fault of the taxpayer. Double-joined with AB 1668 (Takasugi-R) relating to property tax. Chapter 171, Statutes of 1996 SB 719* (Solis-D) - Property Tax: Lien Data Changes the effective date of the January 1 lien date on locally- assessed property to January 1, l998. (Died in Assembly Revenue and Taxation Committee) SB 1001 (Craven-R) - Property Tax Allocations Limits the Educational Augmentation Fund shifts for special education programs at $2.5 million for fiscal year 1996-97 only. Double-joined with AB 2797. Chapter 1111, Statutes of 1996 SB 1220 (Maddy-R) - Property Tax: Satellite Wagering Facilities Exempts private entities who operate satellite wagering facilities at publicly owned fairgrounds from possessory interest property taxation. (Died in Senate Governmental Organization Committee) SB 1223* (Calderon-D) - Property Taxation: Assessment Appeals Requires a county board of equalization or assessment appeals board to either accept a stipulation between the county and the taxpayer with respect to the value of real property for which an application for reduction in assessment has been filed or reject that stipulation within 60 days of its filing with the board. (Died in Senate Revenue and Taxation Committee) SB 1563* (Wright-R) - Property Tax Revenue Allocations Specifies that if a no- or low-property tax city merges with a subsidiary district and becomes the successor agency, the county auditor is to allocate property tax revenues from the district to the city. Chapter 211, Statutes of 1996 SB 1692* (Petris-D) - Property Tax Exempts from property tax property owned by a nonprofit organization providing auxiliary services to a public museum and used to store items for fundraising rummage sales. Also provides that individuals who become severely and permanently disabled subsequent to being granted, as a claimant, one-time property tax relief (transfer of base-year value to a replacement home) allowed for any person over the age of 55 shall not be excluded from receiving that relief again. All land would be included unless it is used for commercial purposes, as defined. Chapter 897, Statutes of 1996 SB 1737 (Alquist-D) - Property Tax: Public Facilities Increases to $50,000 the minimum taxation threshold with respect to possessory interests in a publicly owned convention center, live theater, trade and consumer shows, dance or musical productions and artistic, historic, technological or education exhibits. Chapter 570, Statutes of 1996 SB 1804* (Monteith-R) - Property Tax: Agricultural Land Requires open-space land which has been restricted as wildlife or endangered species habitat by state, local or federal action to be enrolled in a wildlife habitat contract, at the request of the landowner. Chapter 997, Statutes of 1996 SB 1827 (Senate Revenue and Taxation Committee) - Property Tax: Agriculture Allows a taxpayer a refund if the taxpayer files a claim within 3 years of the date a determination is issued or a lien is placed on his/her property. Eliminates the $30,000 threshold amount for filing a property statement with the county assessor in the initial assessment year, and replaces it with a $100,000 level. Implements the Proposition 193 grandparent/grandchild property transfer provisions. Provides that the county clerk, instead of the board of supervisors, is to assign an appeals board member to hear and determine a question of an appeals board member's disqualification. Provides that lane zoned as "timberland" and contracts entered into pursuant to the California Land Conservation Act of 1965 and recorded between January 1, 1997, and February 28, 1997, shall be deemed timely for purposes of inclusion on the January 1, 1997 property tax roll. Double-joined with SB 44, SB 494 and AB 3351. Incorporated provisions of SB 1834, SB 1835 and SB 1840, all authored by Senate Revenue and Taxation Committee. Chapter 1087, Statutes of 1996 SB 1836 (Senate Revenue and Taxation Committee) Property Taxation Makes changes in the property tax law by incorporating suggestions of various county treasurers and tax collectors and makes changes in the law concerning supplemental tax roll and billing procedures. Chapter 800, Statutes of 1996 SB 1940* (Leslie-R) - Property Tax Revenues Modifies the Educational Revenue Augmentation Fund reduction and transfers provisions of ad valorem property tax revenues for volunteer fire protection districts, as defined. (Died in Assembly Appropriations Committee) SB 2106* (Russell-R) - Property Tax: Intercounty Pipeline Rights-of-Way Provides a technical clarification of how property taxation assessments of an intercounty pipeline right-of-way may be appealed when a method inconsistent with AB 1286 agreement (concerning valuation appeals) has been used by the county assessor. Chapter 801, Statutes of 1996 SCA 14 (Maddy-R) - Property Tax: School Facilities Creates an additional exception in Proposition 13 of 1978 to the 1% limit on property taxes for construction of school facilities or purchase of real property to be used for school sites. Requires a 58% vote for approval of bonds and increase of property tax for school purchase and construction. (Died on Senate Inactive File) AB 188 (Machado-D) - Parcel Tax: Multiple Parcels Provides that (1) a parcel created under the Subdivision Map Act must be deemed to be a single assessment unit (despite multiple parcel numbers assigned by the assessor); (2) a parcel that has not been subdivided may constitute a separate assessment unit only to the extent that the parcel has been previously described and conveyed in one or more deeds as separate from all adjoining property. If a parcel's identification is inconsistent with its assessor's parcel number, the owner must notify the local taxing jurisdiction, in writing, of the correct assessor's parcel number within 30 days after the initial tax bill. Does not apply to any special parcel tax levied before the bill's effective date. Chapter 419, Statutes of 1996 AB 282 (Hauser-D) - Property Tax: Assessment Reduction Requires the assessor to maintain a list of properties subject to appeal with a value exceeding $5 million. Provides that no reduction in value as a result of an appeal can be made unless the property has been on the list for at least 120 days. (Died in Assembly Revenue and Taxation Committee) AB 698 (Cannella-D) - Property Tax Revenue Allocation Freezes the allocation of county property tax revenue to schools at the 1994-95 level for counties which experienced a negative bailout. (Died in Senate Appropriations Committee) AB 915* (Cunneen-R) - Property Taxation: Environmental Equipment Excludes from the term newly constructed and new construction property that is voluntarily used, built, acquired, or installed to meet or exceed the air, water or land pollution regulations. (Died in Assembly Revenue and Taxation Committee) AB 1055* (Caldera-D) - Property Tax: Administration Allows counties to charge other governmental entities that receive property tax revenue their proportionate share of the cost to operate assessment appeal boards. Chapter 1073, Statutes of 1996 AB 1186* (Takasugi-R) - Property Taxation Exemption: Oil Spill Equipment Exempts from property taxation boom and shimming systems owned by nonprofit or not-for-profit entities used for oil spill response and cleanup in state or federal waters. (Died on Assembly Inactive File) AB 1286* (Takasugi-R) - Property Tax: Pipelines Establishes a process for valuing pipeline rights-of-way and other facilities incident to intercounty pipelines. Chapter 76, Statutes of 1996 AB 1544 (Hannigan-D) - Property Taxation: Secured Roll: Delinquent Penalties Classifies that the delinquent penalties on the current secured roll to be allocated to the county general fund as a result of property taxes includes all penalties, and not just those associated with ad valorem taxes. (Died on Assembly Inactive File) AB 1585 (House-R) - Property Taxation: Valuation Provides that the county assessor is not to determine a higher value for improvements on agricultural land on the basis of the installation of specified water conservation improvements. (Died in Senate Revenue and Taxation Committee) AB 1668 (Takasugi-R) - Property Tax Requires, for each fiscal year, the county treasurer to advise the State Controller of the county-apportioned rate determined for that treasurer's county, and of the computations made in deriving that rate, no later than 60 days after the end of that fiscal year. Clarifies as to when the county pool apportioned rate is to be used in calculating interest charges for outstanding refunds. Extends indefinitely the property tax exemption for personal property used for certain aviation-related purposes. Clarifies that cities and lighting, water and irrigation districts are entitled to request and receive the location information on all properties that are on the unsecured roll. Chapter 88, Statutes of 1996 AB 1991* (Granlund-R) - Taxation: Possessory Interest Churches Exempts from property taxation property leased, rather than owned, by a church or other similar religious organization with a congregation of under 500 and used exclusively for their parking, as specified. Establishes additional conditions which must be met for publicly-owned property leased to a private party to be taxable to the private party. Chapter 1169, Statutes of 1996 AB 2054* (Richter-R) - Property Tax: Deferred Payment Allows a taxpayer to defer the payment of an amount, included in the ad valorem property tax bill, that consists of any portion of a special benefit assessment or parcel charge that the taxpayer asserts to be erroneously levied. (Died in Assembly Revenue and Taxation Committee) AB 2089 (Cortese-RFM) - Property Tax: Statements Allows a county tax collector to issue a single tax statement of property taxes due to a taxpayer who owns multiple properties. Allows the tax collector of a county opting to provide this service to charge a recovery fee, as specified. Chapter 138, Statutes of 1996 AB 2103* (Mazzoni-D) - Property Tax Relief Provides property tax relief for losses arising from fires that occurred in Marin County in 1995. (Died in Assembly Appropriations Committee) AB 2178 (Miller-R) - Property Taxation Requires the county appeals board to provide written notification to an affected city regarding an application for reduction in assessment. Requires that the taxpayer's opinion of value be used if the county assessment appeals board fails to make a final determination within 3 years of the application for a reassessment. (Died in Assembly Revenue and Taxation Committee) AB 2583 (Kuykendall-R) - Property Tax Valuation Requires a county assessor to determine the "full cash value" or "fair market value" of real property on the basis of the purchase price that the property would bring in its condition on the lien date, in an open market transaction as described in current law. (Died in Assembly Revenue and Taxation Committee) AB 2587 (Morrow-R) - Property Tax: Installment Payment of Delinquent Taxes Reduces the interest rate on installment payments of delinquent property taxes. (Died in Senate Appropriations Committee) AB 2765 (Poochigian-R) - Property Tax: Full Cash Value Specifies the evidence to be used to rebut the purchase price presumption of fair market value for owner-occupied single-family dwellings. (Failed passage in Senate Revenue and Taxation Committee) AB 2790* (Morrissey-R) - Property Tax: Veterans' Exemption Increases the $4,000 veterans' property tax exemption to $7,700. (Died in Senate Appropriations Committee) A companion measure, ACA 39 (Morrissey-R), died in Senate Revenue and Taxation Committee. AB 2797 (Aguiar-R) - Property Tax Revenue: Allocations Caps the growth on local government contributions to the Educational Revenue Augmentation Fund (ERAF) and eliminates ERAF contribution funds for special education beginning in 1997- 98. Vetoed by the Governor AB 2938 (Bates-D) - Property Tax Rate Review Allows cities to increase their property tax rate to make payments in support of pension programs provided that it is approved by 2/3 of the voters voting. (Failed passage in Assembly Revenue and Taxation Committee) AB 2975 (Granlund-R) - Property Tax: Payment of Refunds Allows the payment of a property tax refund, as specified, to the latest recorded owner of that property as shown on the tax roll. Chapter 346, Statutes of 1996 AB 3000 (Granlund-R) - Property Tax Certificates Reduces from 6 months to 1 month the time period a tax collector must wait for tax certificate holders of a delinquent property to exercise his/her right of first refusal to purchase an additional certificate for the same property, and makes other changes to the tax certificate program negotiated with Capital Asset Research Corporation and California Association of County Treasurers and Tax Collectors. Chapter 699, Statutes of 1996 AB 3380* (Archie-Hudson-D) - Property Tax: Exemption: Small Business Exempts from taxation the first $100,000 of personal property owned by a small business for the first 5 years for which the personal property of that business is subject to tax, as specified. (Died in Assembly Appropriations Committee) ACA 40 (Mazzoni-D) - Property Tax: School Districts Allows any school district, community college district, or county superintendent of schools, by a 58% of the vote of the electorate, to impose real property taxes on a per-parcel basis for the building, reconstruction, or rehabilitation of school facilities, but not for ongoing operating expenses. (Failed passage in Assembly Revenue and Taxation Committee) ACA 45 (House-R) - Property Tax: Agricultural Equipment Provides a property tax exemption for newly constructed agricultural water conservation equipment, as defined. (Failed passage on Assembly Floor) Sales Tax SB 8 (Peace-D) - Sales Tax: Revenue Allocation Modifies the allocation formula in San Diego County for public safety funds (Proposition 172) beginning in fiscal year 1997-98 as specified. Chapter 1021, Statutes of 1996 SB 14* (Thompson-D) - Sales Tax: Motor Vehicle Fuels Exempts fuels used to power highway vehicles from sales tax and imposes a tax on petroleum excess profits to backfill the revenue lost as a result of the sales tax exemption. (Failed passage in Assembly Revenue and Taxation Committee) SB 38* (Lockyer-D) - Omnibus Tax Bill Extends the sales tax for animal medicines to all medicines used by food animals; e.g., medicines injected into an animal. Allows a manufacturer who leases equipment to pay sales tax at the start of a lease so that its lessee may claim the 6% manufacturing income corporation tax credit. Allows for an aircraft repair sales tax exemption. Defines the term process under the Sales Tax Law as it relates to manufacturing, processing, refining, fabricating, or recycling activity. Chapter 954, Statutes of 1996 SB 38* incorporated the following sales tax bills: AB 1555*, (Kaloogian-R), Aircraft Repair Exemption, died in Senate Revenue and Taxation Committee. AB 2795*, (Morrissey-R), Manufacturers Investment Credit, died in Senate Appropriations Committee. AB 2944*, (Poochigian-R), Animal Medicines, died in Senate Appropriations Committee. AB 3312*, (Takasugi-R), Defining of Process, failed passage in Senate Revenue and Taxation Committee. SB 710* (Mountjoy-R) - Sales Tax Exemption: Contact Lenses Changes the point of taxation for licensed pharmacists selling replacement contact lenses from retail to the wholesale level. (Died in Senate Revenue and Taxation Committee on a 29.10 Senate Rule violation) Similar legislation was AB 1253* (Alpert-D) which died on Senate Third Reading File. SB 858 (Mountjoy-R) - Sales Tax: Local Agencies: Allocation Creates the Local Fiscal Relief Fund for purposes of transferring a portion of the state's 4-3/4% sales tax to local agencies. (Failed passage on Assembly Floor) Similar legislation was SB 1977 (Mountjoy-R) which failed passage in Senate Revenue and Taxation Committee. SB 1366 (Beverly-R) - Transaction Tax: City of Avalon Allows the City of Avalon to levy a transaction and use tax rate of 0.5% to fund the Avalon Municipal Hospital and Clinic, subject to 2/3 voter approval. Chapter 1069, Statutes of 1996 SB 1384 (Rosenthal-D) - Sales Tax Commission Creates the California Sales Tax Review Commission to examine the home shopping market, as specified. (Died in Senate Revenue and Taxation Committee) SB 1455* (Leslie-R) - Sales Tax Exemption: Liquified Gas Exempts liquified petroleum gas or liquified natural gas that is sold for use in household appliances in the purchaser's principal residence and that is delivered to the purchaser's principal residence by the seller. (Failed passage in Senate Revenue and Taxation Committee) SB 1827 (Senate Revenue and Taxation Committee) - Omnibus Tax Bill Increases the maximum security the Board of Equalization may require to ensure payment of sales tax from $10,000 to $50,000. Makes the maximum penalty for electronic funds transfer filers equal to 10% of the taxes owed, the same maximum penalty faced by traditional filers. Adds a new 10% penalty for regular filers who fail to file a return. Expands the innocent spouse provisions relating to tax relief from liability for sales and use tax. Provides a refund for overpayment of any tax, penalty, or interest collected by the Board of Equalization (BOE) by means of levy or by other enforcement procedures, is to be approved if a claim is filed within 3 years of the date of overpayment. Requires excess amounts of taxes under the sales tax be returned to the customer, as provided. Allows the BOE to use reports other than the Quarterly Oil Report (QOR) to make a determination of the amount of sales tax that must be prepaid if QOR is not available. Provisions of the above were also contained in SB 1828, SB 1832, SB 1837 and SB 1838 (amended September 11, 1996). All these were Senate Revenue and Taxation Committee bills and all but SB 1838 died in Assembly Revenue and Taxation Committee and placed into the bill. SB 1838 became another subject as mentioned below. Chapter 1087, Statutes of 1996 SB 1838 (Sher-D) - Transaction and Use Tax Allows San Mateo County to impose a 0.5% transaction and use tax subject to voter approval for support of education, parks and libraries. Provides for actual cost reimbursement for Board of Equalization administration of Stanislaus County's transaction and use tax relative to countywide library programs. (Died on Assembly Third Reading File) Similar legislation was AB 2316 (Cannella-D) relative to Stanislaus County portion which died in Assembly Local Government Committee and AB 3239 (Sher-D) which failed passage in Assembly Revenue and Taxation Committee. SB 1909 (Dills-D) - Local Sales and Use Tax: Bill of Rights Enacts the Bradley-Burns Bill of Rights to establish clear and specific rights of local jurisdictions, as specified, and a formal dispute resolution process to promote fair, consistent and responsive administration of their taxes by the State Board of Equalization and provides for allocation of the Bradley-Burns local tax revenues away from the county pools and to certain jurisdictions, as specified. Vetoed by the Governor SB 1919* (Johannessen-R) - Sales Tax Exemptions: Gasoline Taxes Removes federal and state excise taxes from the taxable sales base. (Died in Senate Revenue and Taxation Committee) Similar legislation was AB 2640* (Pringle-R) which died in Senate Revenue and Taxation Committee) SB 1958 (Mello-D) - Transaction and Use Tax: Public Libraries Allows county boards of supervisors to impose a transactions and use tax at a rate of 0.125% by adoption of an ordinance to be used for funding public library, construction, acquisition programs and operations within the county. Requires 2/3rds vote of the people on the ordinance. (Died in Conference Committee) SB 2049* (Leslie-R) - Sales Tax Exemption Exempts test strips and monitors used in diabetes management from sales tax. (Died in Senate Appropriations Committee) AB 143* (Martinez-D) - Sales Tax Exemptions: Thrift Store Merchandise Exempts from sales tax used pieces of clothing or household items sold for less than $50 by thrift stores operated by a nonprofit organization. (Died in Assembly Revenue and Taxation Committee) AB 194* (K. Murray-D) - Sales Tax Extends the sales and use tax to specified services such as repair labor, custom computer programs, janitorial, laundry, dry cleaning, and automotive services, sale of memberships to private clubs, landscaping services, taxidermy services, pet grooming services, exterminating services, furnishing of various services, funeral services, dictaphone answering services, and operating of coin-operated amusement machines. (Died in Assembly Revenue and Taxation Committee) AB 358* (Hoge-R) - Sales Tax Exemption: Race Horses Exempts from sales tax any subsequent retail sales of race horses. (Died in Assembly Revenue and Taxation Committee) AB 365 (Hannigan-D) - Transactions and Use Tax: Solano County Allows Solano County to impose a 0.125% transactions and use tax and provides for 2/3 voter approval for the tax to be used for countywide libraries. (Senate amendments failed passage in Assembly Revenue and Taxation Committee) Similar legislation is AB 2951 (Hannigan-D) which failed passage in Assembly Revenue and Taxation Committee. AB 387* (Weggeland-R) - Sales Tax: Horse Bedding Exempts from sales tax straw used as bedding for the stabling of horses and ultimately resold or incorporated into fertilizer products. (Died in Assembly Revenue and Taxation Committee) AB 566* (Kaloogian-R) - Sales Tax Exemption: Fuels and Petroleum Products Exempts from sales tax fuel and petroleum products sold to air common carriers to be shipped out-of-state. (Died in Senate Revenue and Taxation Committee) AB 905 (Poochigian-R) - Sales Tax Revenues: Children's Services Allows for the use of sales tax revenues to provide for the children's services block grants created by the bill. (Died in Conference) AB 982* (Firestone-R) - Sales Tax Exemption: Aircraft Extends the existing sales tax exemption on watercraft parts to aircraft parts in compliance with federal requirements. (Died in Senate Appropriations Committee) AB 1190* (Morrissey-R) - Sales Tax Rates This bill enacts the Sales Tax Reduction Act by reducing the state sales tax by 1/2% each year for 5 years decreasing the rate to 3%. (Died in Assembly Revenue and Taxation Committee) A similar bill is ACA 31 (Morrissey-R) which also died in Assembly Revenue and Taxation Committee. AB 1191 (Takasugi-R) - Sales Tax: Allocation of Proposition 172 Funds Clarifies the allocation of Proposition 172 (public safety) sales tax revenue between cities and counties. Double joined with SB 8 (Peace). Chapter 876, Statutes of 1996 AB 1318* (Kuehl-D) - Sales Tax Exemption: Zero-Emission Vehicles Provides a partial sales tax exemption from the sales of specified zero-emission vehicles. (Failed passage in Assembly Appropriations Committee) AB 1694* (Johnson-R) - Sales Tax: Motor Vehicle Loans Provides a partial use tax exemption for a car dealer who lends a motor vehicle to any University of California or California State University employee, as specified. Chapter 366, Statutes of 1996 AB 2100* (McPherson-R) - Sales Tax Exemption: Fire Districts Provides for a sales tax exemption for purchases of $25,000 or more made by certain fire districts. (Failed passage in Senate Revenue and Taxation Committee) AB 2158 (Burton-D) - Transaction and Use Tax: Cancer Allows local entities to levy a transactions and use tax to fund patient care, facilities, medical supplies, medication, medical research and public education with respect to breast cancer and prostate cancer. (Died in Assembly Revenue and Taxation Committee) AB 2302* (Woods-R) - Sales Tax Exemption: Periodicals Provides for a tax exemption relative to ratings research reports or market surveys furnished to a radio or television station even if the report or survey is published less than 4 times a year. (Failed passage in Senate Revenue and Taxation Committee) AB 2489* (Firestone-R) - Sales Tax Exemption: Electric Buses Creates a sales tax exemption for electric buses. (Died in Senate Appropriations Committee) AB 2551 (Cannella-D) - Sales Tax Permits: Florists Imposes a $500 penalty on any retail florist who fails to obtain a sales tax permit before engaging in business. Chapter 1130, Statutes of 1996 AB 2661* (Alpert-D) - Sales Tax Exemption: Computer Software Expands the existing manufacturer's investment credit and sales and use exemption to allow taxpayers involved in specified computer program and software activities to claim the credit/exemption. (Died in Assembly Appropriations Committee) AB 2761* (Poochigian-R) - Sales Tax Exemption: Agriculture Allows new agricultural production or service businesses to claim a 5% sales tax exemption on certain equipment, as specified. (Failed passage in Senate Revenue and Taxation Committee) AB 2847 (Sweeney-D) - Transactions and Use Tax Phases out over a 3-year time period the shared costs incurred by the Board of Equalization for the administration of transactions and use taxes. (Died in Assembly Appropriations Committee) AB 2884 (Villaraigosa-D) - Sales Taxes: Accountability Evaluation Requires the Legislative Analyst, in consultation with the Department of Finance and Board of Equalization, to conduct an accountability evaluation, as specified, for each sales and use tax exemption enacted after December 31, 1996. (Failed passage in Assembly Revenue and Taxation Committee) AB 3010* (Kaloogian-R) - Sales Tax: Retailers Exempts from sales tax sales made by out-of-state retailers whose sole presence in the state is convention and trade show activities of 7 days or less in a 12-month period. This exemption would not apply to sales either made at the trade show or under orders taken at the trade show. (Died in Senate Appropriations Committee) AB 3117* (Brulte-R) - Sales Tax Exemption: Credits Exempts state chartered credit unions from the Sales and Use Tax Laws. (Died in Senate Revenue and Taxation Committee) AB 3161 (Hannigan-D) - Transactions and Use Tax: Woodland Allows the City of Woodland to levy a transactions and use tax, subject to voter approval, at a rate not to exceed 0.5%. (Failed passage in Assembly Revenue and Taxation Committee) AB 3187* (Martinez-D) - Sales Tax Exemption: Thrift Store Merchandise Exempts from sales tax used clothing, household goods and other items sold by thrift stores operated by nonprofit organizations to generate revenue to provide services to HIV-infected and AIDS individuals. Sunsets January 1, 2002. Chapter 781, Statutes of 1996 AB 3375* (Olberg-R) - Sales Tax Exemption: Rail Equipment Exempts from sales tax equipment used by a common carrier if the equipment becomes a component part of a train used in interstate commerce. Chapter 550, Statutes of 1996 AB 3407 (Knowles-R) - Sales Tax: Transient Occupancy Taxes Prohibits cities and counties from levying a transient occupancy tax on any food product subject to the sales tax. Does not apply to charter cities. Chapter 940, Statutes of 1996 A similar bill was AB 1372 (McPherson-R) which died in Assembly Revenue and Taxation Committee. Miscellaneous SB 877 (Alquist-D) - Metropolitan Transportation Commission: Tax Allows the Bay Area Metropolitan Transportation Commission to impose a tax of up to 10 cents on motor fuel sold in the 9 counties over which it has jurisdiction to be voted upon by the voters in those counties. (Died in Assembly Revenue and Taxation Committee) SB 1070 (Calderon-D) - Rental Cars Defines the types of taxes which a rental car company may exclude from its advertised rate, and provides that the taxes excluded a prorated portion of the vehicle license fee. Chapter 992, Statutes of 1996 SB 1077 (Greene-D) - Tax Preparers Eliminates the Tax Preparer Program in the Department of Consumer Affairs and, instead, requires tax preparers to file a bond with a surety company. Chapter 1137, Statutes of 1996 SB 1144 (Watson-D) - Cigarette Tax Increase Imposes an additional excise tax on cigarettes of 5 mills per cigarette, or 10 cents per package of 20 to fund the Childhood Health and Disability Prevention Program. (Died in Senate Health and Human Services Committee) SB 1293 (Maddy-R) - Law Enforcement Assessment Allows the establishment of an assessment district in Fresno County for law enforcement purposes, as specified. (Died in Senate Local Government Committee) SB 1389 (Craven-R) - Local Agencies: Levy Powers Clarifies that a 2/3 voter approval is required for the imposition of special taxes, and a majority approval for general taxes. (Failed passage in Assembly Local Government Committee) SB 1436 (Kelley-R) - Smog Impact Fees Exempts from the smog impact fee a vehicle that is sold through a dealer conducting a wholesale motor vehicle auction, as specified. (Died in Senate Appropriations Committee) SB 1462 (Johannessen-R) - Smog Impact Fee Repeals the smog impact fee on January 1, 1997. (Died in Senate Appropriations Committee) SB 1590 (O'Connell-D) - Validation of Local Taxes Prohibits the retroactive application of the decision of the California Supreme Court in Santa Clara County Local Transportation Authority v Guardino. Establishes that the Guardino decision would not be applicable to or control any tax levied or increased by an ordinance or resolution adopted before December 14, 1995, as specified. (Died in Assembly Revenue and Taxation Committee) SB 1727 (Kopp-I) - California State Tax Authority Abolishes the Franchise Tax Board and the State Board of Equalization. Provides for the transfer of their respective powers and duties to the California State Tax Authority. Creates a Board of Tax Appeals. (Died in Senate Appropriations Committee) The companion measure, SCA 29 (Kopp-I), also died in the Senate Appropriations Committee. SB 1730 (Kopp-I) - Insurers: Non-Admitted Insurers: Tax Compliance Specifies that non-admitted insurers must receive tax compliance certificates from the State Board of Equalization before using the courts. (Died in Senate Appropriations Committee) SB 1827 (Senate Revenue and Taxation Committee) - Omnibus Tax Bill Extends the State Board of Equalization's access to customer records when a lien has been placed at a financial institution under the Oil Spill Prevention and Administration Fee or Oil Spill Response Fee laws. Increases the penalty for failure to file a return of the estimated tax owing under the Alcoholic Beverage Tax Law, from 5% to 10% of the estimated tax owing. Adds that any person who possesses, buys or offers to buy fraudulent cigarette stamps or meter impressions with a tax value of $750 or more is guilty of a misdemeanor, rather than a felony as prescribed by existing law. Creates a misdemeanor for any person who possesses for sale or sells untaxed alcoholic beverages with a tax value greater than $500. Provides that all information contained in the Vendor's Report of Beer Shipments into California may be made public. Requires that excess amounts of tax or fee reimbursements under the Motor Vehicle Fuel License Fee Tax Law, the Use Fuel Tax Law, the Hazardous Substances Tax Law, the Underground Storage Tank Maintenance Fee Law, the Fee Collectors Procedure Law, and the Diesel Fuel Tax Law be returned to the customer. Makes optional the security requirements for taxpayers subject to the Alcoholic Beverages Tax Law. Makes the maximum penalty for electronic fund transfer filers equal to 10% of the taxes owed, and adds a new 10% maximum penalty for regular filers who fail to file a return. Deletes the $50 penalty for failure to file a diesel fuel or use fuel tax return, but retains the 10% penalty for large taxpayers. Extends the authority of the State Board of Equalization to increase or decrease the amount of tax liability after a determination has been issued, but before the determination is final, to the Cigarette and Tobacco Products Tax Law. Extends the authority of the State Board of Equalization to receive late payment penalties for certain circumstances to the Energy Resources Surcharge Law. Allows the State Board of Equalization to establish yearly, rather than quarterly, reporting requirements for taxpayers subject to the Emergency Telephone Users Surcharge. Removes the requirement that the reimbursement of a taxpayer's fees and expenses be approved by the State Board of Control. Extends the Taxpayer's Rights Advocate's authority to release levies made under the Diesel Fuel Tax Law. Chapter 1087, Statutes of 1996 SB 1827 incorporated the following bills relating to the above provisions: SB 1828 (Senate Revenue and Taxation Committee) and SB 1832 (Senate Revenue and Taxation Committee, both of which died in the Assembly Revenue and Taxation Committee. SB 1839* (Senate Revenue and Taxation Committee) - Hazardous Substances Taxes Eliminates the prepayment of generator fees for small businesses. Chapter 226, Statutes of 1996 SB 1908 (Hurtt-R) - Taxpayer's Rights Provides that no taxpayer is to be denied any right provided by the Revenue and Taxation Code by any state or local tax official, as specified. (Died in Senate Revenue and Taxation Committee) Similar legislation was AB 2481 (Takasugi-R), which failed passage in the Senate Revenue and Taxation Committee. SB 1913* (Johannessen-R) - Vehicle License Fees Exempts modifications to vehicles from vehicle licensee fees, except for commercial vehicles in which the modification cost is $2,000 or more. Sunsets January 1, 2000. Chapter 228, Statutes of 1996 SB 2143 (Hurtt-R) - Taxation: Utilities Provides that public utilities and other service suppliers are not to be liable to any customers as a result of collecting various taxes imposed by public entities, as specified. (Died in Senate Local Government Committee on a Senate Rule 29.10 violation) SCA 13 (Hurtt-R) - Taxes and Assessments: Taxpayers' Consent Classifies taxes levied by a local government or a special district as general or special taxes, and establishes in addition to the 2/3 approval requirement for special taxes, a majority vote approval requirement for new and certain existing general taxes. Establishes procedures and requirements for the imposition of fees and charges, including a voter approval requirement for the imposition. Establishes various procedures and requirements for benefit assessments. (Died in Senate Local Government Committee) Similar legislation was SCA 15 (Haynes-R) which died in Senate Local Government Committee, ACA 13 (Johnson-R) which died in the Assembly Local Government Committee, and ACA 38 (Baldwin-R), which died in the Assembly Local Government Committee. SCA 34 (Marks-D) - Diesel Fuel Tax Provides that revenues from taxes imposed by the state on diesel fuel used in recreational boats is to be used only for specified purposes in connection with ports and harbors where small craft operate or are berthed. (Died in Senate Transportation Committee) SCA 36 (O'Connell-D) - Special Taxes Allows any local jurisdiction to impose any special tax with majority vote approval, if that jurisdiction is otherwise authorized by law to impose the tax, exclusively to fund transportation, public safety, or education projects and service. (Died on Senate Third Reading File) SCA 38 (Hurtt-R) - State and Local Taxes: Illegal Levies Provides that if the state or any unit of local government imposes a tax, assessment, or fee that is found to be invalid or higher than required by law, the amount so collected unlawfully or the amount that is higher than required by law, is to be returned to the persons or entities paying these levies, as specified. (Died in Senate Local Government Committee) SCR 26 (Hayden-D) - Tax Expenditures Directs the Legislative Analyst to analyze each tax expenditure program, as specified, to determine if program objectives are being realized, whether each program's benefits exceed its revenue cost, and whether there is a less costly way of providing the same benefits and report thereon to the Legislature. (Died in Assembly Rules Committee) AB 336* (Villaraigosa-D) - Oil Severance Tax Imposes a 6% severance tax on oil production. (Died in Assembly Revenue and Taxation Committee) AB 485 (Villaraigosa-D) - Alcoholic Beverage Tax Allows counties to levy on a countywide basis for revenue a tax on the sale of beer, wine, and distilled spirits when the beer, wine, and distilled spirits are sold for consumption on the premises of the seller of the beer, wine, or distilled spirits. (Died in Assembly Revenue and Taxation Committee) AB 861 (Ducheny-D) - Federal Block Grant Funds Establishes general procedures for the state's administration of federal block grants funding for various health and welfare and education programs currently under review by the 104th Congress. (Died in Conference Committee) AB 1199* (Gallegos-D) - Cigarette Tax Increase: School Nurses Increases the cigarette tax by 1 mill per cigarette or 2 cents per package of 20 cigarettes. Provides that the revenue would go to fund nurses in schools. (Died in Assembly Revenue and Taxation Committee) AB 1339 (Sweeney-D) - Development Taxes Prohibits local agencies from exempting or reducing an existing tax for a proposed development. (Died in Assembly Local Government Committee) AB 1475 (Pringle-R) - Regulatory Fees Requires the Office of Permit Assistance to establish, compile and maintain a regulatory fee register to serve as a central repository of information concerning regulatory fees collected by specified governmental agencies, as specified. Chapter 1127, Statutes of 1996 AB 1672 (Takasugi-R) - Diesel Fuel Limits the security required to be posted with the State Board of Equalization under the Diesel Fuel Tax Law to $1 million for taxpayers who have an established payment history. Chapter 30, Statutes of 1996 AB 1817 (Bowler-R) - Fuel Tax and Cigarette Tax Makes it a crime to willfully evade or attempt to evade or defeat the payment of motor vehicle fuel license tax or the use fuel tax as specified. Makes it a crime to knowingly posses, sell, or offer to sell any counterfeit stamp or meter or any paraphernalia intended or designed for use in producing counterfeit stamps or meter impressions which are to be affixed to cigarette packages. (Died in Assembly Transportation Committee) AB 2523 (Cunneen-R) - Local Business License Taxes Prohibits a local agency from imposing any business licensee fee or business license tax on a tax-exempt, nonprofit organization. Specifies that no local flat business license tax or fee is to apply to clergy subject to the existing exemption from business license tax and fees. Chapter 692, Statutes of 1996 AB 2749 (Machado-D) - Bond Acts: Finance Committees Consolidates 35 independent general obligation bond committees into 8 financing authorities to be composed of the Controller, the Director of Finance and the State Treasurer. (Failed passage in Assembly Appropriations Committee) AB 2794 (Bowen-D) - Department of Revenue Abolishes the Franchise Tax Board and the administrative authority of the State Board of Equalization, and transfers them to the Department of Revenue. (Failed passage in Assembly Revenue and Taxation Committee) AB 2888* (Cortese-RFM) - Vehicle License Fee Reduces the vehicle license fees in an amount determined by multiplying the fee by a percentage equal to the average percentage increase in the California Consumer Price Index for motor vehicle fuel, as specified. (Died in Assembly Revenue and Taxation Committee) AB 2992 (Napolitano-D) - Controller: Duties Repeals the law which requires the State Controller, upon settlement of an account of a person indebted to the state, to issue a numbered certificate showing who is to make the payment, the amount, and the fund to be credited. Requires the Controller to give the debtor a discharge when the account is settled. Modifies the requirement that the Controller transmit to county treasurers the balance in the Timber Tax Fund on November 30 and May 31 of each fiscal year and, instead, requires the Controller to send the balance that existed in that fund on the preceding November 10 or May 10, respectively. Requires the State Controller to transfer the balance in the Computer Software Refund Fund to the General Fund not later than March 15, 1997 and abolishes the fund after the transfer. Chapter 248, Statutes of 1996 AB 3053 (Brulte-R) - Development Fees Reforms procedures for imposing taxes on new development. (Failed passage on Assembly Floor) AB 3190 (Friedman-D) - Cigarette Taxes Allows counties to impose their own cigarette taxes. (Died in Assembly Local Government Committee) AB 3204 (Knox-D) - Emergency Telephone User Surcharge Requires the Emergency Telephone Users Surcharge payments to be remitted monthly on the last date of the second month following the month the surcharges were collected. Chapter 432, Statutes of 1996 AB 3218 (Brown-D) - Cigarette Tax Provides for a cigarette tax increase to provide for alcohol or drug abuse treatment for specified persons under 18 years of age. (Failed passage in Assembly Health Committee) AB 3222 (Brown-D) - Taxes Validates local taxes imposed prior to December 14, 1995 which are inconsistent with a recent Supreme Court case on Proposition 62. Provides that public utilities and other service suppliers are not liable to any customer as a result of collecting various taxes imposed by public entities and establishes the responsibilities of utilities and local agencies in the specified areas of administration of the law. (Died in Assembly Unfinished Business File) AB 3223 (Brown-D) - Mello-Roos Act Adds maintenance services for elementary and secondary school sites and structures as services that may be financed under the Mello-Roos Act of 1982. Prohibits bonds from being issued under the act to finance school maintenance services. Chapter 782, Statutes of 1996 AB 3435 (Bowen-D) - Local Munitions Tax Allows local governments, upon voter approval, to levy an excise tax on the retail sale of munitions, as specified. (Failed passage in Assembly Local Government Committee) AB 51XX* (Brown-D) - Cigarette Tax: Local Levies Allows counties to impose their own excise tax on cigarettes. (Died in Assembly Rules Committee) AB 55XX (Friedman-D) - Cigarette Tax Increase Increases the cigarette tax by 7 mills per cigarette or 37 cents per package of 20 cigarettes to fund public safety or health care services. (Died in Assembly Rules Committee)