Income Tax/Bank and Corporation Tax
Other Income
Property Tax
Sales Tax
Miscellaneous
Income Tax/Bank and Corporation Tax
One of the major legislative actions taken in 1997 was to give taxpayers $1 billion in tax relief through the passage of SB 5 (Lockyer) and SB 1233 (Lockyer).
The following consists of the bills that reached the Governor's desk. After the one, a subsection follows consisting of notable bills which are considered 2-year bills:
SB 5 (Lockyer-D) Income/corporation taxes
Generally conforms California Corporation Tax Law with the new federal subchapter S provisions and increases the tax rate on S corporations, as specified. Conforms state law with federal exclusion of gain on sales of principal places of residence. Applies the capital gains provision to sales and exchanges on or after May 7, 1997, and on or before June 30, 1998. Conforms California corporation tax law to federal law treatment of sales of stock to employee stock ownership plans, effective January 1, 1996.
Chapter 610, Statutes of 1997
A similar bill on capital gains is SB 569 (Lewis-R), which is in Senate Appropriations Committee; and a similar bill on S corporations was AB 203 (Takasugi-R), in which the motion to withdraw from Assembly Appropriations Committee failed passage.
SB 39* (Johannessen-R) Income taxes check-offs
Appropriates the revenues generated from tax check-offs designated for the California Military Museum and the Drug Abuse Resistance Education California Program.
Chapter 7, Statutes of 1997
SB 78 (Thompson-D) Income tax check-off: endangered species
Reinstates and extends the sunset date for the voluntary contribution Rare and Endangered Species Preservation Fund to January 1, 2002. Repeals the fund in any year in which contributions fall below $250,000.
Chapter 87, Statutes of 1997
SB 455 (Alpert-D) Income/corporations taxes: conformity
Brings California tax laws in line with numerous federal changes enacted between 1992 and 1997.
Double-joined with AB 122 (Brown-D), AB 1040 (Assembly Revenue and Taxation Committee), and SB 1106 (Senate Revenue and Taxation Committee).
Chapter 611, Statutes of 1997
A similar bill is AB 1044 (Assembly Revenue and Taxation Committee), which is in the Senate Revenue and Taxation Committee.
SB 532 (Solis-D) Income tax check-off: firefighters
Extends the sunset date for the Firefighter's Memorial Fund check-off to January 1, 2001, and imposes a minimum contribution threshold of $100,000 in 2000 and $250,000 in 2001. Repeals the fund if it does not meet the threshold.
Chapter 596, Statutes of 1997
SB 602 (Alpert-D) Income tax check-off: breast cancer
Extends the Breast Cancer Research Fund tax check-off from January 1, 1998 to January 1, 2003, with an earlier sunset if contributions are less than $250,000 per year.
Chapter 337, Statutes of 1997
SB 717 (Karnette-D) Income/corporation tax check-off: elections
Extends the sunset date for the California Election Campaign Fund tax check-off to January 1, 2002. Imposes a $250,000 minimum contribution threshold on the fund starting in the year 2000, and repeals the fund if the threshold is not met.
Vetoed by the Governor
SB 842 (Hayden-D) Corporation tax: minimum franchise tax
Requires the Bureau of State Audits to determine the actual cost to the state associated with incorporating a new business, and to report the information to the Legislature by May 1, 1998.
Vetoed by the Governor
SB 965* (Costa-D) Enterprise zones
Makes a variety of largely technical changes in 1996 legislation which consolidated enterprise zone and program tax benefits into a single program.
Chapter 603, Statutes of 1997
SB 1106 (Senate Revenue and Taxation Committee) Omnibus tax bill
Modifies various provisions in the tax laws that affect taxpayer reporting requirements, court-ordered debt collection, the definition of corporations, and tax relief. Extends the State Franchise Tax Board's court-ordered debt collection program for 2 additional years, and increases from 5% to 15% the minimum amount the board may retain to administer the program. Appropriates $400,000 to the board, subject to reimbursement, relative to court collection.
Chapter 604, Statutes of 1997
NOTE: SB 1044 (Vasconcellos-D), relating to stock options, was incorporated into SB 1106.
SB 1233 (Lockyer-D) Income/corporation taxes
Increases the dependent tax credit by $50 in 1998 and an additional $100 in 1999. Makes permanent the capital gains exclusion for home sales in conformity with the federal Taxpayer Relief Act of 1997. Adopts enhancements to individual retirement accounts program in conformity with the federal Taxpayer Relief Act of 1997. Increases the exemption amounts used in calculating the alternative minimum tax for individuals and indexes the exemption annually. Eliminates the increase in Subchapter S rate (this chaptered out the rate increases contained in SB 5 of 1997.)
Chapter 612, Statutes of 1997
SB 1234 (Alpert-D) Corporation tax
Conforms California law to federal entity classification regulations (check-the-box regulations for purposes of determining whether a non-corporate entity is taxable as a partnership or as a corporation.
Double-joined to AB 1040 (Assembly Committee on Revenue and Taxation).
Chapter 608, Statutes of 1997
SB 1253 (Mountjoy-R) Income tax check-off: military museum
Reinstates the California Military Museum income tax check-off from the 1997 tax year through the 2001 tax year, if the tax checkoff generates $250,000 in contributions in each year, starting in 1998.
Chapter 856, Statutes of 1997
AB 122* (Brown-D) Income/corporation taxes: Pierce's Disease
Expands provisions that allow accelerated depreciation for grapevines infected with Phylloxera to grapevines infected with Pierce's disease.
Double-joined with AB 1155 (Shelley-D) and SB 455 (Alpert-D).
Chapter 607, Statutes of 1997
AB 364 (Baca-D) Income tax exclusions: forgivable loans program
Permits an income exclusion for the discharge of debt under the California State University Forgivable Loan Program.
Chapter 228, Statutes of 1997
AB 530 (Assembly Higher Education Committee) Golden State Scholarshare Trust Act
Establishes the Golden State Scholarshare Trust Act which provides tax incentives for investors, primarily students and families, to save money to cover costs of postsecondary education.
Chapter 851, Statutes of 1997
Similar legislation was AB 13 (Firestone-R). SB 101 (Hayden-D) was similar, but did not contain revenue and taxation provisions.
AB 701 (Caldera-D) Taxation: disclosure
Permits the State Franchise Tax Board (FTB) to provide the taxing authority of a charter city tax information on business taxpayers located within that city, limited to the name, address, Social Security number and business activity code. Provides that for authors and artists, the address would not be provided by FTB until 90 days has passed since it notified the taxpayer that the taxpayer was to contact the city and failed to do so. Makes the information available only to specified tax officials of the charter city designated as senior supervisory level or above.
Vetoed by the Governor
AB 713 (Caldera-D) Taxpayers' rights: conformity
Conforms state law to amendments to the federal Taxpayers' Bill of Rights by revising provisions of California's Katz-Harris Taxpayer Bill of Rights and the Personal Income Tax and Bank and Corporation Tax Laws. Among other things, expands notice requirements, extends the time for making tax payments without penalty, allows for abatement of interest under certain circumstances, restricts retroactive application of regulations, and reimburses taxpayer's litigation costs for claims the State Franchise Tax Board cannot substantiate.
Chapter 600, Statutes of 1997
AB 797 (Takasugi-R) Enterprise zones
Requires the State Franchise Tax Board to make information available, on an annual basis, to the Trade and Commerce Agency and the Legislature pertaining to the dollar value of tax credits claimed each year by businesses within a zone.
Chapter 461, Statutes of 1997
AB 1033 (Frusetta-R) Income tax check-off: State Children's Trust Fund
Re-establishes the income tax check-off for the State Children's Trust Fund, and extends it until January 1, 2002.
Chapter 630, Statutes of 1997
AB 1040 (Assembly Revenue and Taxation Committee) Omnibus tax bill
Modifies various provisions in the Revenue and Taxation Code that affect taxpayer reporting requirements, court-ordered debt collection, the definition of corporations, and development zone credit elections.
Double-joined with SB 965 (Costa-D) and SB 1106 (Senate Revenue and Taxation Committee).
Chapter 605, Statutes of 1997
AB 1042 (Wayne-D) Income/corporation taxes: R&D credit
Conforms California law with 1996 federal changes to the research and development tax credit.
Chapter 613, Statutes of 1997
Similar legislation is AB 1067 (Cunneen-R) and AB 1356 (Figueroa-D), both of which are in Assembly Revenue and Taxation Committee, and AB 1499 (Caldera-D), which is in Assembly Appropriations Committee.
AB 1217 (Bustamante-D) Economic development: targeted tax areas
Requires the Trade and Commerce Agency to designate at least 1 targeted tax area in which certain businesses would be granted various tax incentives.
Chapter 602, Statutes of 1997
AB 1520 (Vincent-D) Income/corporation taxes: qualified deposits
Provides a tax credit for each qualified deposit made by a taxpayer into a community development financial institution. Provides that total qualified deposits for taxpayers could not exceed $10 million in a calendar year.
Chapter 947, Statutes of 1997
AB 1592 (Leonard-R) Personal income taxes: renters' credits
Suspends the renters' tax credit until January 1, 1998.
Chapter 292, Statutes of 1997
AB 1X* (Cardoza-D) Income/corporation taxes: disaster relief
Permits income taxpayers to carry over a larger proportion of their excess uninsured casualty losses which are attributable to the storms and floods in December 1996 or January 1997.
Chapter 3, Statutes of 1997-98, First Extraordinary Session
Similar legislation was AB 91 (Bowler-R), AB 94 (Cardoza-D), and AB 4X (Bowler-R).
Other Income
SB 31 (Maddy-R) Income/corporation tax: manufacturer's investment credit
Creates a tax credit equal to 6% of qualified property costs for taxpayers engaged in specified warehousing and distribution activities in a qualified facility.
(In Senate Local Government Committee pursuant to Senate Rule 29.10)
SB 38 (Johannessen-R) Corporation tax: manufacturer's investment credit
Expands the manufacturer's investment credit by creating a similar investment credit for agricultural production and agricultural services as specified.
(Failed passage in Senate Revenue and Taxation Committee; reconsideration granted)
SB 43 (Solis-D) Income taxes: earned income credit
Creates an earned income tax credit equal to 15% of the federal credit for taxpayers with dependent children.
(In Senate Appropriations Committee)
SB 83 (McPherson-R) Income taxes: brackets
Eliminates the 1% personal income tax rate bracket, and reduces the income threshold for the 4% bracket.
(In Senate Revenue and Taxation Committee)
SB 87 (O'Connell-D) Income/corporation taxes: land and water conservation
Enacts the California Land and Water Conservation Act of 1997 which provides a tax credit of 55% of the fair market value of qualified property that is donated to the state, any local agency, or any nonprofit organization designated by the state or local government.
(In Senate Appropriations Committee)
SB 100 (Lewis-R) Income taxes: capital loss from sale of residence
Permits taxpayers to deduct losses, up to $250,000 incurred in the sale after July 1, 1997 of a California principal residence in which the taxpayer lived for at least 2 years.
(In Senate Appropriations Committee)
SB 140 (Thompson-D) Income taxes: senior citizens
Suspends the indexing of the senior exemption tax credit for 5 years. Provides for the transfer of revenue generated from the difference between the fixed credit and an indexed credit from the General Fund to the California Seniors Special Fund to be allocated for specified programs.
(In Senate Appropriations Committee)
SB 246 (Hughes-D) Income/corporation taxes: employment of blind persons
Provides a tax credit for wages paid to a blind employee and for any work-related expenses to provide reasonable accommodation of the employee's needs.
(In Senate Revenue and Taxation Committee)
SB 276* (McPherson-R) Income/corporation taxes: investment credit
Expands the existing manufacturer's investment tax credit by creating a similar investment credit for eating establishments.
(In Senate Revenue and Taxation Committee)
SB 301 (Sher-D) Income/corporation tax credits: fish habitats
Increases the individual tax credit rate for costs paid to restore and improve salmon and steeled trout habitat from 10% to 15%, and increases the amount a taxpayer may claim from $50,000 to $100,000.
(In Senate Appropriations Committee)
SB 302* (Costa-D) Income/corporation tax credits: farmworker housing
Increases the total authorized tax credits for farmworker housing from the current $500,000 annually to $5 million annually.
(In Senate Appropriations Committee)
SB 400 (Peace-D) Corporation: double taxation study
Requires the State Franchise Tax Board and the State Department of Finance to jointly report and make recommendations to the Legislature regarding double taxation of corporate dividends.
(In Senate Revenue and Taxation Committee)
SB 510 (Monteith-R) Corporations tax: minimum franchise tax
Reduces the minimum franchise tax for newly operating corporations from $800 to $300 annually for the first 2 years of incorporation, if the corporation's gross receipts are less than $1 million.
(In Senate Appropriations Committee)
SB 519 (Alpert-D) Income/corporation tax: medical instruments
Provides specified measuring and medical instruments manufacturers (1) an extended carryover period for the manufacturers investment credit by defining them as small businesses, and (2) enhanced net operating loss treatment by defining them as new businesses.
(In Senate Revenue and Taxation Committee)
SB 634 (Knight-R) Income/corporation tax: ridesharing tax credit
Re-establishes ridesharing tax credit.
(In Senate Revenue and Taxation Committee)
SB 635 (Knight-R) Enterprise zones: Barstow
Requires the Trade and Commerce Agency to designate an enterprise zone which meets specified criteria applicable to the City of Barstow.
(In Senate Appropriations Committee)
SB 639* (Burton-D) Income/corporation taxes: job tax credit
Provides a credit equal to 50% of the qualified wages paid or incurred by a taxpayer to a certified trainee during the first 18 months of employment, if the certified employee is an unemployed recipient of public assistance.
(In Senate Revenue and Taxation Committee)
SB 649 (Mountjoy-R) Income/corporation taxes: environmental expenses
Allows manufacturers to deduct expenses paid or incurred for environmental quality expenses from state and federal income taxes, to the extent they are ordinary and necessary business expenses.
(Failed passage in Senate Environmental Quality Committee; reconsideration granted)
SB 706 (Rainey-R) Taxation: preference income
Imposes a specified tax on preference items similar to the tax that was imposed by the Income/Corporation Tax Laws prior to 1987, and repeals the tentative minimum tax provision of law.
(In Senate Revenue and Taxation Committee)
SB 718 (Leslie-R) Income/corporation tax credit: lead abatement
Establishes a tax credit for 50% of the costs, up to $2,000 per unit, paid for voluntary lead abatement activities on qualified California residential rental property.
(In Senate Appropriations Committee)
SB 861 (Johnson-R) Income tax: health care
Conforms 100% to the federal medical savings account deduction.
(In Senate Rules Committee)
SB 890 (O'Connell-D) Corporation tax: minimum franchise tax
Reduces the minimum franchise tax for the first 2 income years of any bank or corporation that has gross receipts under $1 million.
(In Senate Appropriations Committee)
SB 1162 (Brulte-R) Income/corporation taxes: health care
Expresses legislative intent that a tax credit be considered for small employers who provide health care coverage to their employees.
(In Senate Appropriations Committee)
SB 1165 (Hurtt-R) Personal income taxes: 15% rate reduction
Makes a legislative declaration of intent to seek to effectuate a reduction in personal income tax.
(In Senate Revenue and Taxation Committee)
SB 1166 (Hurtt-R) Income/corporation taxes: penalties
Repeals the 25% penalty for taxpayers refusing to file returns or supply information.
(In Senate Revenue and Taxation Committee)
SB 1167 (Hurtt-R) Income/corporation taxes: job tax credit
Reinstates the 10% Greater Avenues for Independence Law tax credit.
(In Senate Revenue and Taxation Committee)
SB 1169 (Hurtt-R) Businesses: tax strategies
Requires the economic development strategy plan to include a review of the top strategies employed by other states to attract and retain business.
(In Assembly International, Trade and Development Committee)
SB 1248 (Monteith-R) Income/corporation taxes: levees
Provides for a 50% tax credit for construction, restoration, or rehabilitation of levees on private property owned by the taxpayer in this state.
(Failed passage in Senate Revenue and Taxation Committee; reconsideration granted)
SB 1249 (Leslie-R) Taxation: disasters: personal casualty losses
Eliminates the $100 floor limitation per casualty loss and the requirement that a net casualty loss be computed to the extent the loss exceeds 10% of the individual's adjusted gross income for individuals who have suffered disaster losses. Allows taxpayers to claim as the amount of loss 60% of the replacement cost of the property lost as a result of a disaster.
(In Senate Revenue and Taxation Committee)
SB 1275* (Haynes-R) Income/corporation taxes: heavy-duty trucks
Allows a tax credit for the purchase or lease of smokemeters for heavy-duty trucks.
(In Senate Transportation Committee)
SCR 44 (Calderon-D) Franchise tax apportionment
Directs the Legislative Analyst to investigate and report to the Legislature regarding the treatment of sales to the U.S. government in the franchise tax income apportionment formula.
(In Assembly Revenue and Taxation Committee)
SJR 8 (Haynes-R) Federal charity tax credit
Urges the U.S. Congress to enact legislation to allow a tax credit against federal income taxes for contributions to charitable organizations.
(In Senate Appropriations Committee)
SJR 24 (Haynes-R) Income tax: single rate
Requests the U.S. Congress to replace the current income tax system with a single rate tax system, such as a flat tax, with a generous personal exemption to ease the tax burden on many Americans and eliminate the bias against work, savings, and investment.
(In Senate Revenue and Taxation Committee)
SB 1X (Leslie-R) Income tax: disaster relief
Requires that any request by State Franchise Tax Board for documentation related to disaster-related income tax deductions for a post-1995 disaster be reasonable in light of the disaster and the likelihood that the information requested would have survived the disaster. Provides that such information could include sworn testimony, if that is the only available documentation.
(At Assembly Desk)
AB 3 (Baca-D) Local agency military base recovery areas
Increases the number of local agency military base recovery areas (LAMBRA's) from 5 to 10, and extends the maximum life of a LAMBRA from 8 to 15 years. Makes various changes to the Revenue and Taxation Code relative to expense deductions for the costs of certain depreciable property. Replaces the existing schedule setting forth the maximum amounts of the deduction with a new schedule that provides for a maximum amount that begins at $100,000 and decreases from year to year to $50,000.
(Failed passage in Senate Revenue and Taxation Committee; reconsideration granted)
AB 8 (Leach-R) Corporations tax: minimum franchise tax
States legislative intent to examine the feasibility of changing the amount of the minimum franchise tax.
(In Senate Revenue and Taxation Committee)
Similar legislation is AB 27 (Strom-Martin-D), which is in the Senate Revenue and Taxation Committee.
AB 9* (Campbell-R) Income/corporation taxes: capital assets
Enacts the Jobs Stimulus Act of 1997 to exclude from income any gain from the sale of a California capital asset.
(In Assembly Revenue and Taxation Committee)
AB 41 (Murray-D) Income taxes: tangible property
Conforms state law with federal limits in small business expensing, increasing the amount of tangible property a small business may elect to treat as an expense in the year acquired.
(In Assembly Appropriations Committee)
AB 56 (Mazzoni-D) Income/corporation taxes: school facilities credit
Provides a tax credit for public school construction or expansion.
(In Assembly Appropriations Committee)
AB 69 (Washington-D) Los Angeles Revitalization Zone
Extends the sunset date of the Los Angeles Revitalization Zone sales or use tax credit from January 1, 1998 to January 1, 2001, for taxpayers who file under the Personal Income Tax.
(In Assembly Revenue and Taxation Committee)
AB 77 (Morrow-R) Income/corporation taxes: fire retardant roofs
Provides a 50% tax credit, up to $5,000, for the cost of replacing shake roof with fire retardant materials.
(In Assembly Appropriations Committee)
Similar legislation is AB 109 (Kaloogian-R), which is in the Assembly Appropriations Committee.
AB 80 (Ducheny-D) Income/corporations taxes: substandard housing
Prohibits the owners of unoccupied or abandoned dwellings determined to be substandard by a government enforcement agency from receiving tax deduction benefits.
(Failed passage on Assembly Floor; reconsideration granted; on Assembly Inactive File)
AB 82* (Villaraigosa-D) Enterprise zones
Extends the Los Angeles Revitalization Zone tax credits from 1998 to 2003.
(In Senate Revenue and Taxation Committee)
AB 83* (Villaraigosa-D) Income tax credits
Provides for a refundable earned income credit, equal to 15% of the federal credit, for taxpayers with a dependent child. Repeals the renter's tax credit.
(In Senate Appropriations Committee)
AB 94* (Cardoza-D) Manufacturer's investment tax credit
Expands the manufacturer's investment tax credit to agricultural producers and to independent crude oil producers.
(In Senate Revenue and Taxation Committee)
AB 119 (Runner-R) Income taxes: adoption tax credit
Establishes a $1,000 income tax credit for the qualified costs that are paid or incurred for the adoption of a qualified minor child.
(In Assembly Appropriations Committee)
AB 138 (Poochigian-R) Corporation tax: agricultural activities
Expands the manufacturers' investment credit exemption to allow taxpayers involved in specified agricultural post-harvesting activities to claim the credit on specified post-harvesting property.
(In Assembly Appropriations Committee)
AB 148* (Frusetta-R) Income/corporations taxes: farmworkers
Provides for a 25% tax credit for employer costs of preventive health care for farmworkers.
(In Assembly Revenue and Taxation Committee)
AB 168* (Torlakson-D) Income/corporation tax
Increases, from $35 to $50 million, the amount of low-income housing credits that can be allocated annually by the California Tax Credit Allocation Committee.
(In Senate Appropriations Committee)
AB 171 (Cunneen-R) Income/corporation taxes: transit passes
Provides a tax credit equal to 40% of the cost of employer-provided transit passes or vanpool fares.
(In Assembly Appropriations Committee)
AB 196 (Thomson-D) Income/corporation taxes: agricultural donations
Establishes a tax credit for 20% of the cost of agricultural products donated to a nonprofit charitable organization, and requires the State Department of Social Services to report to the Legislature regarding the impact of the credit on food donations.
(In Senate Appropriations Committee)
AB 215 (Baldwin-R) Income taxes: dependent children
Enacts the Family and Child Empowerment Act of 1997 by providing a tax credit of $150 for each dependent child of a qualified taxpayer who is under the age of 13.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
AB 230 (Runner-R) Income tax: health insurance
Increases the percentage of health insurance costs that self-employed individuals are allowed to deduct under the income tax.
(Motion to withdraw from Assembly Appropriations Committee; failed passage)
Similar legislation is AB 305 (Wayne-D), which is in the Assembly Appropriations Committee.
AB 253 (Takasugi-R) Income/corporation taxes: capital assets
Increases the basis of a capital asset by the percentage increase in the California Consumer Price Index, from the date of acquisition to the date of sale or exchange. Applies to assets acquired on or after January 1, 1998.
(In Assembly Appropriations Committee)
AB 265 (Battin-R) Income/corporation taxes: alternative minimum tax
Conforms California tax law to the federal treatment of contributions of appreciated property in computing the alternative minimum tax.
(In Assembly Appropriations Committee)
AB 283 (Baca-D) Income tax credit: volunteer services
Creates a tax credit of up to $250 for any retired person, aged 65 or older, who provides volunteer services for a California public school.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 302 (Runner-R) Income tax credit: public assistance
Provides a $2,000 tax credit for taxpayers who care for an individual receiving public assistance, thereby removing that person from public assistance.
(In Assembly Revenue and Taxation Committee)
AB 336 (Miller-R) Income tax credits: educational expenses
Establishes a 100% tax credit, up to a maximum of $500 per year, for unreimbursed educational expenses that are paid or incurred by a teacher at a qualifying educational institution.
(Motion to withdraw bill from Assembly Revenue and Taxation Committee; failed passage)
AB 372 (Battin-R) Income/corporation taxes: computer donation
Provides for a tax credit for computer donations to public schools.
(Motion to withdraw bill from Assembly Revenue and Taxation Committee; failed passage)
AB 390 (Runner-R) Income/corporation taxes: Joint Strike Fighter Program
Provides a tax credit for sales under contracts/subcontracts awarded pursuant to the U.S. Department of Defense Joint Strike Fighter Program.
(In Assembly Revenue and Taxation Committee)
AB 417 (Davis-D) Corporation tax: commonly controlled group
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 state taxation.
(In Assembly Appropriation Committee)
AB 454 (Morrissey-R) Income taxes: capital gains
Provides that taxpayers may elect to recognize the gain on the sale or exchange of a personal residence only to the extent that it exceeds their recalculated basis in the property which has been adjusted for inflation.
(Motion to withdraw from Assembly Revenue and Taxation Committee; failed passage)
AB 470 (Ducheny-D) Income tax credits: dependents
Increases the dependent tax credit from $67 to $105.
(In Assembly Revenue and Taxation Committee)
AB 479 (Pringle-R) Corporation Tax Rates
Reduces the bank and corporation tax rate by 10%, and provides a comparable reduction in the corporate alternative minimum tax rate.
(In Assembly Appropriations Committee)
AB 484 (Havice-D) Income/corporation taxes: employer child care credit
Extends the sunset date on the employer child care credit, and increases the maximum amount of the credit for contributions to a qualified care plan. Requires the Legislative Analyst to evaluate the credit.
(Motion to withdraw from Assembly Appropriations Committee; failed passage)
A similar bill was AB 642 (Baldwin-R), which was unsuccessfully withdrawn from Assembly Appropriations Committee to the Assembly Floor.
AB 511 (Caldera-D) Corporation taxes: subventions
Requires that revenues derived from the in-lieu tax for banks and financial corporations be distributed to cities, cities and counties, and counties.
(In Assembly Revenue and Taxation Committee)
AB 526 (Vincent-D) Sport franchises
Specifies that anyone who interferes with sports franchise contracts loses all tax credits and exemptions.
(In Assembly Local Government Committee)
AB 534 (Thomson-D) Income/corporation taxes: health care
Enacts the Health Care Coverage Expansion Act, which states legislative intent to create time-limited tax incentives for employers to provide coverage to targeted employees not currently covered.
(In Conference Committee)
AB 539* (Firestone-R) Corporation tax: manufacturers' investment credit (MIC)
Modifies the manufacturers' investment tax credit to allow affiliated corporations that file a combined report with the qualified taxpayer to claim a portion of the excess against the tax of each taxpayer member of the group.
(In Assembly Appropriations Committee)
AB 559 (Villaraigosa-D) Tax expenditures: accountability evaluation
Requires the Legislative Analyst, in consultation with the state revenue and taxation agencies, to conduct accountability evaluations for all personal income tax and corporation tax credits and sale and use tax exemptions.
(In Assembly Revenue and Taxation Committee)
AB 601 (Davis-D) Income/corporation taxes: reporting and unitary taxes
Permits the State Franchise Tax Board to prescribe the manner and extent of reporting requirements for partnership and limited liability companies. Allows top tier corporate taxpayers to elect to include all the income and apportionment factors of the members of a commonly controlled group in a combined report, regardless of whether the group members are unitary.
(In Senate Revenue and Taxation Committee)
A similar bill concerning the reporting requirements of this bill is AB 510 (Ashburn-R), which is in Assembly Revenue and Taxation Committee.
AB 613 (Margett-R) Income/corporation taxes: deductions
Allows taxpayers to accelerate depreciation on computer hardware and peripherals used for telecommuting.
(In Assembly Revenue and Taxation Committee)
AB 638 (Alby-R) Enterprise zones
Designates McClellan Air Force Base as an enterprise zone, which provides tax incentives to businesses located within the zone.
(In Assembly Appropriations Committee)
AB 643 (Baldwin-R) Income tax rate reduction
Reduces the income tax rates by 10% over 2 years.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 648* (Kaloogian-R) Income/corporation taxes: credits
Deletes the limited year carry over provisions for the manufacturers' investment credit, thus providing for unlimited carry overs.
(In Assembly Appropriations Committee)
AB 654 (Martinez-D) Income tax credit
Provides for partial refundable tax credit for reduction in State Supplementary Payments.
(In Assembly Revenue and Taxation Committee)
Similar bill is AB 1262 (Martinez-D), which is in the Assembly Revenue and Taxation Committee.
AB 706* (Ackerman-R) Manufacturers' investment tax credit
Provides that the manufacturers' investment tax credit recapture provisions do not apply to transactions concerning mergers, acquisitions, and reorganizing activities if the property is not removed from the state or put to a nonqualified user as a result of the transaction.
(In Assembly Appropriations Committee)
AB 724 (Lempert-D) Income/corporation taxes: net operating losses
Conforms state treatment of net operating losses to federal law by incrementally increasing the current 50% carryover to 100%.
(In Assembly Appropriations Committee)
AB 741 (Washington-D) Income/corporation tax: at-risk youth
Provides a 33.3% tax credit for wages paid, up to $5,000, during the first year of employment to a qualified at-risk youth who has spent at least the past 3 months at a county juvenile home or California Youth Authority facility.
(In Senate Appropriations Committee)
AB 809 (Escutia-D) Enterprise zone
Requires the Trade and Commerce Agency to designate 5 industrial, manufacturing, construction, or goods movement incentive zones to those areas including and in proximity to areas designated as intermodal corridors of economic significance which would be provided various tax incentive and credits.
(In Assembly Revenue and Taxation Committee)
AB 813 (Baldwin-R) Income/corporation tax credits: swimming pools
Provides a tax credit for costs incurred for adding or upgrading approved safety devices for residential swimming pools built before January 1, 1998.
(In Assembly Appropriations Committee)
AB 821 (Takasugi-R) Taxpayer bill of rights
Provides that the Katz-Harris Taxpayers' Bill of Rights complies to specified statutes pertaining to the administration of franchise and income tax laws by the State Franchise Tax Board.
(In Assembly Revenue and Taxation Committee)
AB 873 (Takasugi-R) Income/corporation taxes: solar energy
Establishes tax credits for energy conservation measures and retrofitting for energy conservation.
(In Assembly Revenue and Taxation Committee)
AB 886 (Morrow-R) Income/corporation taxes: jury service
Allows a tax credit for employer costs of paying employees who are on jury duty.
(In Assembly Judiciary Committee)
AB 1019 (Machado-D) Income tax credit: liquefied petroleum gas
Provides a non-refundable tax credit for liquefied petroleum gas purchases by low-income persons.
(In Senate Revenue and Taxation Committee)
AB 1062 (Battin-R) Income/corporation taxes: credits
Extends the manufacturers' investment credit to teleproduction and postproduction services.
(In Assembly Revenue and Taxation Committee)
AB 1063* (Lempert-D) Income/corporation taxes: computer software
Expands the manufacturers' investment credit to allow taxpayers involved in specified computer program and software activities to claim the credit.
(In Assembly Appropriations Committee)
AB 1192 (Takasugi-R) Corporation taxes: interest
Establishes a new applicable date for each deficiency assessment on a corporation regarding underpayments exceeding $100,000.
(In Assembly Appropriations Committee)
AB 1218 (Alquist-D) Bank and corporation taxes: deductions
States legislative intent to examine the feasibility of allowing a corporation commercially domiciled in California to deduct interest expense attributed to specified dividends received from an insurance company.
(On Assembly Inactive File)
AB 1232 (Granlund-R) Income/corporation taxes: jobs tax credit
Permits a tax credit equal to 25% of the first $10,000 in wages paid to a new employee, previously unemployed and receiving welfare benefits, who fills a new position.
(In Assembly Appropriations Committee)
AB 1271 (Papan-D) Corporation taxes: doing business
Exempts corporations whose only presence in California is warehousing of goods.
(In Senate Revenue and Taxation Committee)
AB 1291 (Strom-Martin-D) Income/corporation taxes: conformity
Expands the existing tax credit paid to restore and improve salmon and steelhead trout habitat, and extends the sunset date on the law. Partially conforms to federal tax law changes which deny deductions for club dues and for executive pay in excess of $1 million.
(In Senate Revenue and Taxation Committee)
AB 1358 (Pringle-R) Income tax credit: education expenses
Allows a tax credit to 100% of the unreimbursed qualifying educational expenses paid or incurred by a parent or legal guardian for his or her child.
(In Assembly Revenue and Taxation Committee)
AB 1360 (Alquist-D) Income tax: educational
Allows an employee to exclude from gross income the amount, not to exceed $5,250 per year, that an employer pays for employee taking graduate level courses.
(In Assembly Appropriations Committee)
AB 1364 (Wayne-D) Corporation tax: tobacco advertising
Denies tax deduction for costs of tobacco advertising.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
AB 1413 (Papan-D) Corporation tax exemption: credit unions
Exempts state-chartered credit unions from the 2% bank tax and the corporation tax.
(In Senate Revenue and Taxation Committee)
AB 1417 (Campbell-R) Income/corporation taxes
Conforms state law with federal law which created a new type of entity called a financial asset securitization investment trust to facilitate the securitization of revolving, non-mortgage debt obligations.
(In Assembly Appropriations Committee)
AB 1419 (Campbell-R) Corporation tax: minimum franchise tax
Reduces the minimum franchise tax from $800 to $100.
(In Senate Revenue and Taxation Committee)
AB 1441 (Wayne-D) Income tax credit: university tuition or fees
Allows a tax credit up to $750 for expenses of sending a child to a California State University or University of California.
(In Assembly Revenue and Taxation Committee)
AB 1461 (Olberg-R) Income tax brackets
Deletes the 1% personal income tax bracket, and reduces the threshold for the 2% tax brackets.
(Motion to withdraw from Assembly Appropriations Committee; failed passage)
AB 1469 (Ducheny-D) Corporation taxes: administrative relief
Expands the definition of substantial unintentional noncompliance for the purpose of permitting the perfection of a voter's edge election.
(In Assembly Appropriations Committee)
A similar bill is AB 1488 (Pringle-R), which is in Assembly Revenue and Taxation Committee.
AB 1494 (Olberg-R) Income tax exclusions: poverty level
Exempts income from taxation of those below poverty income.
(In Assembly Revenue and Taxation Committee)
AB 1530 (Poochigian-R) Income/corporation credits
Allows taxpayers to carryover the aggregate of unused credits for an unlimited period.
(In Assembly Revenue and Taxation Committee)
ACA 14 (Caldera-D) Income tax: retroactivity
Prohibits the retroactive increase or decrease of personal income tax rates.
(In Senate Revenue and Taxation Committee)
Property Tax
SB 30 (Kopp-I) Property tax: refunds
Clarifies that interest on property tax refunds would accrue at 9% prior to 1993 for pre-1993 tax refunds still outstanding, and the county pooled apportioned rate for refunds thereafter.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
SB 32 (Maddy-R) Taxation of possessory interests: transportation corridors
Establishes a rebuttable presumption that public interests in public transportation corridors do not give rise to a taxable possessory interest for property tax purposes.
(In Senate Revenue and Taxation Committee)
SB 33 (Maddy-R) Property tax: fairground possessory interests
Allows counties to exempt from property tax up to $50,000 in value of fairground possessory interests.
Chapter 106, Statutes of 1997
SB 76 (Kopp-I) Property taxation
Requires assessors to compile and make public, on or before July 1, 1998, a list of the life insurance companies that have filed an Insurance Company Separate Account Property Statement.
Chapter 94, Statutes of 1997
SB 218* (Knight-R) Property taxation: college exemption
Extends the property tax college exemption to include an educational institution that provides a master's degree program based on a course study of at least 1 year in flight test technology or flight test science that is approved by the California Council for Private Postsecondary and Vocational Education or the Bureau for Private Postsecondary and Vocational Education.
(At Assembly Desk)
SB 219 (Rosenthal-D) Property tax: non-profit organizations
Expands the authority of nonprofit organizations to purchase properties that have been tax defaulted for more than 5 years to include purchase of multifamily housing. Allows nonprofit organizations to rent to or otherwise use to serve low-income persons tax-defaulted property which the organization has bought and rehabilitated.
Chapter 477, Statutes of 1997
SB 303 (Burton-D) Property tax revenue allocations
Limits the Educational Revenue Augmentation Fund Contribution for Special Education in basic aid counties to $4 million in fiscal year 1997-98, provides a portion to the county superintendent of schools, and allocates any remaining funds to local taxing entities.
Vetoed by the Governor
SB 466 (Rainey-R) Property tax sharing agreements
Lengthens the time and changes the process for a county and a city to negotiate the property-tax-sharing agreement before an annexation application is accepted by the local area formation commission. Sunsets January 1, 2005.
Chapter 692, Statutes of 1997
SB 542 (Alpert-D) Property taxation
Grants the parent-child exclusion on a prospective basis where the customary time period for filing the claim to receive the exclusion from the initial date of the transfer has expired. Extends the provisions of law regarding the timing for challenging tax delinquency assessments to escape assessments. Changes the date on which assessors mail out homeowners' exemption claim forms from March 15 to February 15 so that this date is consistent with previous date changes made in the process for claiming such exemptions. Requires the county assessor, on or after January 1, 1998, to determine the assessed value of pipelines and related rights-of-way that are located wholly within the county on the basis of a single, countywide parcel per taxpayer, and to combine the assessed value of each component or segment of those pipelines or rights-of-way. Contains language of AB 240 (Takasugi-R) and SB 1105 (Senate Revenue and Taxation Committee) to avoid chaptering-out problems.
Chapter 941, Statutes of 1997
SB 594* (Wright-R) Property taxation
Changes the statutory 3-year time limit for replacement of disaster-damaged or destroyed property to 5 years in the case of the Northridge earthquake. Applies to both intra- and inter-county transfers.
Chapter 353, Statutes of 1997
SB 867 (Lee-D) Property tax rate levies
Allows property tax increases to pay for public employee pension obligations, as specified.
(Failed passage on Assembly Floor; reconsideration granted)
SB 880* (Craven-R) Property tax revenues
Expresses legislative intent that Education Revenue Augmentation Fund (ERAF) transfers be frozen at the 1996-97 level, and that the transfer be eliminated over a 10-year period.
(On Assembly Inactive File)
Note: Coalition of local agencies, builders, developers, realtors, and taxpayer advocates want to return property tax revenues to local agencies by capping local agencies' ERAF contributions and gradually eliminate the shift of property tax revenues from counties, cities, and special districts to ERAF.
Other pending legislation on this issue includes SB 854* (O'Connell-D), SB 889* (Hayden-D), SB 1294 (Leslie-R), AB 1* (Aguiar-R), AB 95* (Sweeney-D), AB 393* (Richter-D), AB 864 (Thomson-D), AB 1349 (Kaloogian-R), and ACA 4 (Aguiar-R).
SB 1105 (Senate Revenue and Taxation Committee) Property tax administration
Makes a number of changes to the administration of the property tax law and the Timberland Tax Law. Modifies the 12-month period for calculating the change in the California Consumer Price Index from the current measurement of December of the prior fiscal year to December of the current fiscal year to an October to October measurement. Clarifies the application of the area of reasonable size standard to residential properties qualifying for base-year value transfers. Moves forward the date the State Board of Equalization certifies values for timberland valuation to conform with the recent change in the lien date. Conforms dates applicable to reimbursing the General Fund for administrative costs incurred by the board in administering the Timber Tax. Requires schools to provide the board with information necessary to process tax rate areas for school facilities improvement district special assessments. Conforms the filing deadlines for redevelopment agencies' districts boundary changes to the filing deadlines required of other taxing entities when their district boundaries change. Requires that the factored base-year value of a property be included in the notice to the taxpayer of reduced assessed value. Modifies the filing period for assessment appeal applications, to provide for situations where county offices are closed on the final filing date or closed prior to 5:00 p.m. on the final filing date for reasons other than an official holiday or a weekend (this sentence is also contained in SB 542).
Chapter 940, Statutes of 1997
SB 1107 (Senate Revenue and Taxation Committee) Property taxation
Makes a number of administrative changes to the property tax administration laws. Clarifies that a tax collector may "foreclose" or "execute" on tax lien certificates in order to assure proper collection of taxes under the new tax lien certificate program. Clarifies that property for which a "power to sell" has actually been recorded is not subject to the 30-year time limit normally applicable to tax liens. Reduces the amount of tax threshold for electronic filing of property tax from the current $100,000 to $50,000. Allows electronic billing to accommodate future technological capabilities. Allows the tax collector to waive penalties where it is clear that the taxpayer has not received a bill for unsecured taxes. Allows the tax collector to recover actual costs when taxpayers wish to initiate a 4-year payment plan on escaped assessment tax bills. Clarifies that the "required equity" calculation for senior citizen property tax postponement purposes may be based on current appraised value, rather than assessed value, so long as the state's interests are protected. Clarifies when a tax collector may sell property subject to a nuisance abatement lien. Allows post-lien data assessments to be added to the amount being collected only if the tax collector approves. Clarifies that the State Department of Motor Vehicles must notify the tax collector when a vessel subject to lien is transferred or not renewed for 26 months to eliminate a conflict with AB 122 of 1996.
Chapter 546, Statutes of 1997
SB 1272 (Sher-D) Property tax revenue allocations
Permits additional property tax revenues to be allocated to "no and low-tax cities" which increase taxes after January 1, 1998.
(In Assembly Local Government Committee)
SCA 9 (Haynes-R) Property tax exemption: agricultural land
Exempts from property taxation any privately owned agricultural land that is actively used to propagate a sustaining breeding, migrating, or wintering population of indigenous wild animals in 3 or more of certain specified ways.
(In Senate Revenue and Taxation Committee)
AB 122* (Brown-D) Tax relief: vineyards
Expands provisions that allow special assessment for grapevines infested with Phylloxera to grapevines infested with Pierce's disease.
Chapter 607, Statutes of 1997
AB 240 (Takasugi-R) Property taxation
Removes the 1999 sunset date for elderly homeowners and disabled to transfer the Proposition 13 base-year value of their homes to another home in another county.
Chapter 227, Statutes of 1997
AB 478 (Takasugi-R) Private railroad car tax
Requires the State Board of Equalization to determine the average number of each class of private railroad cars physically present in the state upon the basis of car mileage relative to the private railroad car tax.
(In Senate Revenue and Taxation Committee)
AB 551* (Morrissey-R) Property taxation: veterans' exemption
Increases the veterans' exemption from property taxation that is authorized in the California Constitution from $4,000 to $7,700 when it is being claimed for real property, and removes the personal wealth limitation for those claims. Becomes operative only if ACA 9 (Morrissey-R) is adopted by the Legislature and approved by the voters.
(In Assembly Appropriations Committee)
AB 661* (Brewer-R) Property tax revenue allocation
Establishes a minimum percentage, and later a fixed percentage, of property taxes that county governments shall receive.
(Failed passage in Assembly Local Government Committee; reconsideration granted)
AB 719* (Torlakson-D) Property Tax Administration Program
Provides for the extension of the existing State-County Property Tax Administration Program to fiscal year 2000-2001, and changes the base year for maintaining existing levels of effort in the assessor's office to 1995-96, if the county was unable to maintain the 1993-94 or 1994-95 level of effort.
Chapter 420, Statutes of 1997
AB 922 (Battin-R) Property tax revenue allocations
Eliminates the "maintenance of tax effort" requirement on a "no and low" property tax city to receive 7% of the property taxes collected within the boundaries of the city if the city's taxes are reduced as a result of either a court decision or a vote of the city's electorate. Does not apply to Santa Clara County.
Adjusts the tax equity allocation (TEA) formula in order to exempt Riverside County from having to make a TEA payment to the City of Rancho Mirage, if the city forms a community services district to provide fire and library services, and if the transfer of the associated property taxes to the community services district causes the City of Rancho Mirage to fall below the "no and low" property tax level.
Chapter 835, Statutes of 1997
AB 1027 (Caldera-D) Property tax administration
Makes several changes to existing law relating to exemption claim filing dates, intra-county pipeline assessments, court challenges to Williamson Act contract cancellations, and extending the deadline for assessment appeals based upon assessor notices of declines in Proposition 13 base-year values. Changes the Business Property Statement filing date from May 30 to March 31. Clarifies existing law provisions concerning assessor access to information. Permits counties to appear before the State Board of Equalization (SBE) in state assessee valuation proceedings. Allows multiple counties to collectively retain and compensate counsel and expect witnesses in any legal action brought by a SBE - or county-assessed taxpayer seeking a refund of property taxes. Requires SBE to give all persons a 90-day notice-and-comment period before issuing assessor's handbooks. Allows county assessment appeals boards to adopt rules of procedure.
(Failed passage on Assembly Floor)
AB 1081 (House-R) Property tax: irrigated agricultural land
Prohibits an assessor in the valuation of improvements on irrigated agricultural land and where the owner has fulfilled certain requirements, from determining a higher value on the basis of the installation on that land, for purposes of water conservation, of improvements consisting of drip or sprinkler irrigation systems, tailwater return systems, or soil moisture measuring devices.
(In Assembly Revenue and Taxation Committee)
AB 1178 (Davis-D) Property tax: advertising protections
Prohibits certain deceptive advertising practices related to services which offer to file either a property tax homeowners' exemption, or a property tax assessment appeal.
Chapter 249, Statutes of 1997
AB 1182 (Sweeney-D) Property tax exchanges
Increases the time period allowed for local agencies to negotiate tax sharing agreements, from 30 days to 90 days.
(In Senate Local Government Committee)
AB 1246 (Olberg-R) Property taxation: mining property
Expands the definition of "fixtures" for property assessment purposes, to include heap leach pads, tailings facilities, and settling ponds used for mineral processing on mining properties.
(In Senate Revenue and Taxation Committee)
AB 1319 (Alquist-D) Property tax: assessment
Requires a paid preparer of an opinion of value on real property, with an assessed value of $1 million or less, to prepare an appraisal report pursuant to the requirements of the Uniform Standards of Professional Appraisal or to provide specified notification that the report was not prepared pursuant to current law. Sunsets January 1, 2001.
Chapter 182, Statutes of 1997
ACA 5 (Mazzoni-D) Property tax rates
Adds an exception to the tax rate limit established by Proposition 13 for bonded indebtedness incurred by a school district, county office of education, or community college district for the construction, reconstruction or rehabilitation of school facilities, the mitigation of toxic sites for school use, or the acquisition of real property for school facilities.
(In Assembly Education Committee)
ACA 9 (Morrissey-R) Property tax: veterans' exemption
Increases the veterans' exemption from property taxation from $4,000 to $7,700 when it is being claimed for real projects, and removes the personal wealth limitation for those claims.
(In Assembly Appropriations Committee)
ACA 22 (Pringle-R) Property tax: environmental problems
Permits owners of environmentally contaminated properties to transfer base-year values to either new construction or a replacement property.
(In Senate Rules Committee awaiting assignment)
ACR 27 (Papan-D) Property taxation: automated teller machines
Requests the State Board of Equalization to rescind its action classifying automated teller machines as personal property for purposes of property taxation.
(In Senate Revenue and Taxation Committee)
AB 1X* (Cardoza-D) Property taxation: disaster relief
Requires the State Controller to reimburse affected counties for the property tax revenue lost as a result of storms and floods in California in December 1996 or January 1997.
Chapter 3, Statutes of 1997-98, First Extraordinary Session
Similar legislation included AB 91 (Bowler-R) and AB 4X (Bowler-R).
Sales Tax
SB 13* (Mountjoy-R) Sales tax exemption: contact lenses
Applies the same sales tax exemption to pharmacists who sell replacement lenses that applies to optometrists, physicians and opticians. This is a clean-up bill to AB 1107 (Campbell-D) of 1995, which allowed pharmacists to sell replacement contact lenses. The law inadvertently did not add pharmacists to the existing list of professionals authorized to dispense replacement lenses without collecting sales tax at the retail level.
Chapter 184, Statutes of 1997
SB 38 (Johannessen-R) Sales tax exemption: agricultural
Provides a partial sales and use tax exemption for the sale or purchase of any implement of husbandry that is purchased for use by a qualified person in the conduct of agricultural operations.
(Failed passage in Senate Revenue and Taxation Committee; reconsideration granted)
SB 81* (McPherson-R) Sales tax exemption: qualified fire districts
Provides a sales and use tax exemption for any purchase of tangible personal property by a qualified fire protection district when the gross receipts from the sale of that property or the sales price of that property exceeds $25,000.
(Failed passage in Senate Revenue and Taxation Committee; reconsideration granted)
SB 110 (Dills-D) Sales tax
Permits the examination of the State Board of Equalization's (SBE's) records pertaining to the collection of sales tax for a local entity. Establishes the Bradley-Burns Bill of Rights for Cities and Counties in order for the local jurisdictions to understand, from the SBE, the local sales and use tax laws administered by the SBE. Establishes the right of local jurisdictions to rely on written advice of the SBE. Allows certain specified large purchasers, including counties, cities, and redevelopment agencies, to apply for a direct payment permit from the SBE, authorizing them to self-assess and pay their use tax liability directly to the SBE, relieving out-of-state retailers of the duty.
Chapter 702, Statutes of 1997
SB 154 (Thompson-D) Local transaction tax: public libraries
Allows a local transaction and use tax to be imposed at a rate of either 1/8% sales tax or 1/4% sales tax for up to 16 years, subject to 2/3 voter approval, to fund public libraries.
Chapter 88, Statutes of 1997
SB 355 (Monteith-R) Transactions use tax: Madera County
Allows a quarter-cent local sales tax in the City of Madera for public safety purposes, with 2/3 voter approval.
Chapter 409, Statutes of 1997
SB 375 (Sher-D) Transactions tax: San Mateo and Stanislaus Counties
Allows San Mateo County to create a special taxing authority, and limits what the State Board of Equalization may charge Stanislaus County to collect its Transaction and Use Tax.
Vetoed by the Governor
SB 529 (Wright-R) Local use tax: leased vehicles
Clarifies the allocation of local use tax on automobile leases. States that the allocation provisions apply only to new automobile leases and defines "motor vehicles" to include passenger vehicles and light-duty pick-up trucks.
(In Assembly Local Government Committee)
SB 531* (Polanco-D) Sales Tax: Los Angeles
Allows the Los Angeles County Board of Supervisors to modify its contract with the State Board of Equalization to require that not more than $60 million of the local Bradley-Burns sales tax be deposited in the County General Fund instead of the Local Transportation Fund (LTF) for one fiscal year. Makes this authorization contingent upon a court-ordered repeal of County General Fund revenues which were similarly diverted from LTF and deposited in the General Fund by the Los Angeles County Board of Supervisors in fiscal year 1995-96 pursuant to existing law.
Chapter 123, Statutes of 1997
SB 591 (Johnson-R) Sales tax exemption: firearm dealers
Exempts from the sales tax the currently authorized $14 fee charged by the State Department of Justice (DOJ) to determine whether a person is qualified to purchase a firearm. Permits DOJ to require that firearm dealers charge firearm purchasers for that fee.
(In Assembly Appropriations Committee)
SB 664 (Wright-R) Sales tax exemption: works of art
Exempts the reproduction rights for artwork and drawings produced at social gatherings by an artist from sales tax.
(Failed passage in Senate Revenue and Taxation Committee; reconsideration granted)
SB 781 (Brulte-R) Local sales tax: jet fuel
Revises the distribution of sales tax revenues on jet fuel to local governments. Allocates local sales tax receipts from the sale of jet fuel to the local jurisdiction where it is delivered into an aircraft, rather than the current practice of being allocated based on where the sale was negotiated.
(In Assembly Revenue and Taxation Committee)
Similar legislation is AB 66* (Baca-D), which is in the Assembly Appropriations Committee.
SB 855 (McPherson-R) Sales tax exemption
Allows refund of sales taxes for manufacturing equipment purchased by biopharmaceutical and biotechnology firms that operate at a loss.
(In Senate Revenue and Taxation Committee)
SB 1013* (Calderon-D) Sales tax: pornography
Enacts the Adult Entertainment Tax Law, which allows a 5% adult entertainment tax to the sale of adult entertainment products or services.
(Failed passage in Senate Revenue and Taxation Committee; reconsideration granted)
SB 1045* (Vasconcellos-D) Sales tax: computers
Allows the refund of sales taxes for manufacturing equipment purchased by computer manufacturers that operate at a loss.
(In Senate Revenue and Taxation Committee)
SB 1101 (Alpert-D) Sales tax exemption: ground control stations
Provides a sales and use tax exemption for any ground control station sold to a nonresident or foreign government for use outside the United States.
Chapter 733, Statutes of 1997
SB 1102 (Senate Revenue and Taxation Committee) Sales tax
Deletes the provisions relating to "engaged in business in the state" under the Sales and Use Tax Law that were determined to violate the commerce clause of the U.S. Constitution. Extends from 2 to 3 years the amount of time that the County of Napa and any cities located in Napa County may take to repay the Board of Equalization for specified tax refunds that the Board made in their behalf. (These refunds are those dealing exclusively with overpayments of Sales and Use Tax on the sale of oak barrels purchased for the making of wine.)
Chapter 620, Statutes of 1997
SB 1104 (Senate Revenue and Taxation Committee) Sales tax: managed audit program
Authorizes the State Board of Equalization to implement a managed audit program that would allow certain taxpayers to self-assess their business. Specifies that if a tax liability is due the state, interest would be assessed at one-half the existing statutory rate. Sunsets on January 1, 2001.
Chapter 686, Statutes of 1997
Similar legislation was AB 890 (Caldera-D), which died in the Assembly Revenue and Taxation Committee.
SB 1171* (Hurtt-R) Sales tax exemption: nonprofit thrift stores
Exempts, from sales tax, items sold at a thrift shop that provides medical and social services to individuals with any chronic, life-threatening illness.
(In Senate Revenue and Taxation Committee)
SB 1267 (Peace-D) Sales tax exemption: animal feed
Exempts the purchase of food eaten by animals held by a nonprofit zoo or aquarium from sales tax.
(In Senate Appropriations Committee)
SB 1300 (Calderon-D) Sales tax: newspapers
States legislative intent that the exemption from sales tax for newspapers and periodicals be reinstated and that the exemption be balanced by a corresponding balance in revenue.
(In Senate Appropriations Committee)
Similar legislation is AB 1608* (Pringle-R), which is in the Assembly Revenue and Taxation Committee.
SB 1310 (Johnson-R) Local sales tax
Permits any city, county, or city and county, that adopts a sales and use tax ordinance to impose an additional sales tax, at a rate of 1% phased in over 5 years, in lieu of an equivalent rate of sales tax imposed by the state, provided the imposing ordinance is approved by a majority of the voters cast on the ordinance in an election on the issue, as specified.
(In Senate Revenue and Taxation Committee)
AB 68* (Brown-D) Sales tax exemption: animal shelters
Enacts the Pet Adoption Sales and Use Tax Relief Act of 1997 to exempt, from sales tax, the charges assessed in connection with pet adoptions by a city, county, city and county, or other local government animal shelter or specified non-profit animal welfare organization.
(In Assembly Appropriations Committee)
AB 94* (Cardoza-D) Sales tax: agricultural products
Exempts, from sales, tax agricultural products that constitute food for human consumption, feed and medicines for food animals, and fertilizer for food plants.
(In Senate Revenue and Taxation Committee)
AB 258 (Floyd-D) Sales tax: convention and trade shows
Specifies that out-of-state entities whose sole activity in the state is engaging in specified convention and trade show activities, and who meet specified criteria regarding those activities, shall not be considered sellers or retailers for the purposes of sales and use taxation. Does not exempt from sales and use taxes those sales that are completed at in-state convention and trade shows or are made pursuant to orders taken at in-state convention and trade shows.
Chapter 621, Statutes of 1997
Similar legislation is SB 1308 (Lewis-R), which is in Senate Revenue and Taxation Committee.
AB 334* (Wildman-D) Sales tax revenue allocation
Changes the allocation of Proposition 172 public safety sales tax revenue in Los Angeles County, if AB 339 (Takasugi) is enacted. Specifies that each city in Los Angeles County and the county would get the same percentage of the sales tax revenue that it received in 1995-96, and that the 1996-97 allocation would be corrected in specified installments through September 30, 1998. Corrects a drafting error of AB 1191 of 1996, which inadvertently reduced the allocation for cities by changing the location of the 50% multipliers in the allocation formula.
Chapter 217, Statutes of 1997
AB 339* (Takasugi-R) Sales tax: revenue allocations
Changes the allocation of Proposition 172 public safety sales tax between cities and counties, if AB 334 (Wildman) is enacted. Specifies that, within each county, each city and the county would get the same percentage of the sales tax revenue that it received in 1995-96, and the 1996-97 allocation would be corrected in equal installments over the next 36 months. Corrects a drafting error in AB 1191 of 1996, which inadvertently reduced the allocation for cities by changing the location of the 50% multiplier in the allocation formula.
Chapter 166, Statutes of 1997
AB 366 (Havice-D) Sales tax exemption: bunker fuel
Extends the sales tax exemption for bunker fuel purchased in California, but used outside of California, for 5 years from January 1, 1998 to January 1, 2003, and requires the Legislative Analyst to report to the Legislature concerning the effect on bunker fuel rates of the sales tax exemption, as specified.
Chapter 615, Statutes of 1997
Similar legislation is AB 120* (Kuykendall-R), which is in the Assembly Appropriations Committee.
AB 408 (Morrow-R) Sales tax allocation: City of San Clemente
Defines the base year as the 1993-94 fiscal year for purposes of determining the public safety services allocations to be made to the City of San Clemente, and provides that the change be applied beginning with funds from 1995-96.
Vetoed by the Governor
AB 410 (Gallegos-D) Sales tax exemption: acupuncturists
Extends a partial sales tax exemption for various specified good furnished by a licensed acupuncturist in the course of his or her professional duties.
(In Senate Appropriations Committee)
AB 559 (Villaraigosa-D) Sales tax exemptions: evaluation
Enacts the Tax Accountability Act of 1997, which requires the Legislative Analyst's office to conduct accountability evaluations for all sales and use tax exemptions enacted on or before January 1, 1998, as specified.
(In Assembly Revenue and Taxation Committee)
AB 801* (Bowler-R) Sales tax exemption: used vehicles
Exempts, from sales and use tax, the sale of a used vehicle between two private parties.
(In Assembly Revenue and Taxation Committee)
AB 803* (Machado-D) Sales tax exemption: cellulose casings
Provides a sale and use tax collection for cellulose casings used in the production of skinless wieners, provided the casings are later incorporated into tax-exempt animal food.
(In Assembly Appropriations Committee)
AB 836 (Sweeney-D) Transactions taxes: administration cost recovery
Limits the State Board of Equalization (BOE) tax administration cost charges to special taxing districts to 1.5% of the revenue generated in the special taxing district by the BOE-administrative tax.
(On Senate Inactive File)
AB 993* (Perata-D) Sales tax exemption: blood storage
Provides a sales and use tax exemption for blood collection units and blood pack units.
Chapter 773, Statutes of 1997
AB 1019 (Machado-D) Sales tax exemption: liquefied petroleum gas
States legislative intent to provide an exemption from sales tax in the case of liquefied petroleum gas that is delivered to households with low-income persons.
(In Senate Revenue and Taxation Committee)
AB 1063* (Lempert-D) Sales and use tax exemption
Expands the sales and use tax exemption to allow taxpayers involved in specified computer program and software activities to claim the exemption.
(In Assembly Appropriations Committee)
AB 1229 (Caldera-D) Sales tax: worthless accounts
Authorizes an assignee that purchases accounts from retailers to either take a deduction from sales tax owed or file a claim for refund for sales tax paid to the State Board of Equalization on a worthless account that has been charged off for income tax purposes or otherwise.
(In Assembly Appropriations Committee)
AB 1243 (Granlund-R) Sales and use taxes
Specifies that the sale of goods by a retailer from out-of-state to construction jobsite within California is subject to the sales tax, rather than the use tax, as specified.
(In Senate Appropriations Committee)
AB 1340 (Prenter-R) Sales tax: used car trade-in exemption
Exempts the price of a used vehicle that is traded in during the purchase of a new vehicle from sales tax.
(In Assembly Appropriations Committee)
AB 1443* (Poochigian-R) Sales tax: engaging in business
Specifies that a retailer is not "engaged in business in the state" based solely on its use of a representative or independent contractor in the state for purposes of performing warranty or repair service with respect to tangible personal property sold by the retailer, as specified.
(In Assembly Revenue and Taxation Committee)
AB 1466 (Baldwin-R) Sales tax allocation: public safety services
Changes the allocation of Proposition 172's public safety funds for San Diego County and the cities in San Diego County from a special formula to the statewide formula.
(In Assembly Local Government Committee)
AB 1472 (Thomson-D) Transaction taxes: Woodland
Permits the City of Woodland to levy a quarter-cent or half-cent local transactions and use tax by a 2/3 city council vote and majority voter approval.
Chapter 712, Statutes of 1997
ACA 10 (Runner-R) Local sales tax: revenue sharing
Allows local agencies, by approval of their governing bodies, to agree to share sales or use tax revenue, if appproved by a 2/3 vote of each entity's governing body who is party to the contract.
(In Assembly Local Government Committee)
ACR 71 (Aguiar-R) Local sales tax: jet fuel
Requests the State Board of Equalization to revise its current regulatory interpretation on allocation of local sales taxes derived from the sale of jet fuel.
(Failed passage in Assembly Revenue and Taxation Committee; reconsideration granted)
AJR 20 (Lempert-D) Sales taxes: Internet activities
Requests the President and Congress to establish a moratorium on the imposition of any taxes of fees, with specified exceptions, by any state, county, or municipal taxing authority on the Internet or any other on-line activity.
(In Assembly Rules Committee)
AB 5X* (Floyd-D) Sales tax: disaster relief
Increases the sales and use tax by 1/4% for the period of June 1, 1997 to May 31, 1998, to be used for disasters, as decided by the Governor.
(In Assembly Revenue and Taxation Committee)
Miscellaneous
SB 40 (Johannessen-R) Smog impact fee
Repeals the $300 smog impact fee imposed on out-of-state vehicles when first registered in California, if the vehicle is not California-certified by the State Air Resources Board.
(In Senate Revenue and Taxation Committee)
SB 60 (Kopp-I) Seismic retrofit surcharge
Imposes, until January 1, 2008, a seismic retrofit surcharge equal to $1 per vehicle for passage on state-owned toll bridges in the region within the area of the jurisdiction of the Metropolitan Transportation Commission, except for vehicles that are authorized toll-free passage on those bridges, for the purpose of funding seismic retrofit of currently listed bridges.
Chapter 327, Statutes of 1997
SB 201 (Kelley-R) Smog impact fee
Exempts out-of-state motor vehicles first sold through a dealer conducting a motor vehicle auction from the existing $300 smog impact fee imposed on out-of-state vehicles first registered in California.
(In Senate Appropriations Committee)
SB 247 (Lockyer-D) Child support payments: State Franchise Tax Board
Releases all child support obligations that the district attorney is responsible for enforcing to the State Franchise Tax Board for collection, as specified. Requires the district attorney to use all collection services of the board.
Double-joined with AB 573 (Kuehl-D) and AB 1395 (Escutia-D).
Chapter 601, Statutes of 1997
SB 294 (Monteith-R) Land use: taxes and assessments
Allows subdividers of land to request that their cash deposits be used to pay taxes and special assessments, and a county to waive the advance payment (deposit) of taxes or assessments for parcel maps with 4 or fewer parcels.
Chapter 480, Statutes of 1997
SB 367 (Sher-D) Motor vehicle fee revenues: bicycles
Continues the allowable use of motor vehicle fees in the Bay Area Quality Management District for bicycle facility improvements from January 1, 1998 to January 1, 2000.
Chapter 425, Statutes of 1997
SB 387 (Knight-R) Low-level radioactive waste: surcharge
Requires persons who generate specified classes of low-level radioactive wastes that are to be disposed of at the Ward Valley site to pay a disposal surcharge of $12 per cubic foot.
(Failed passage in Senate Environmental Quality Committee; reconsideration granted)
SB 476 (Rosenthal-D) Vehicle fees: air pollution
Extends the sunset date on the authority of the South Coast Air Quality Management District to impose a $1 annual vehicle registration fee surcharge to fund clean fuels programs from August 1, 1999 to July 1, 2009.
(Failed passage in Senate Transportation Committee)
SB 512* (Rosenthal-D) Department of Insurance: tax audits
Appropriates $907,595 from the General Fund to the State Department of Insurance for the purpose of funding, for the 1997-98 fiscal year, the tax return processing and tax audit duties of the department.
Chapter 894, Statutes of 1997
Similar legislation is SB 956 (Rosenthal-D), which is in Assembly Revenue and Taxation Committee.
SB 552 (Watson-D) Cigarette tax
Increases the cigarette tax by 50 cents per pack and imposes a 50-cents-per-pack floor tax on cigarettes in a wholesaler's or distributor's inventory.
(On Senate Inactive File)
SB 560* (Hayden-D) Regulated chemicals surtax
Imposes a 25% sales and use tax on several chemicals and in the production of methamphetamine to fund drug programs.
(Failed passage on Assembly Floor)
SB 612* (Costa-D) Diesel tax
Makes various changes to the Motor Vehicle Fuel License Tax Law and the Diesel Fuel Tax Law, including (1) indefinitely extending the scheduled sunset of provisions which allow wholesalers to postpone payment of the diesel tax to their supplier until 5 days before the supplier is required to make payment of the diesel tax to the board, and (2) allowing diesel fuel suppliers to claim a bad debt deduction on accounts found to be worthless.
Chapter 76, Statutes of 1997
SB 660 (Sher-D) Hazardous waste management fees
Restructures and simplifies the existing hazardous waste fee system. Eliminates a number of fees and replaces some with service-specific fees. Reduces fees levied on the hazardous waste industry and increases the broadbased environmental fee level on all corporations.
Chapter 870, Statutes of 1997
SB 812 (Hayden-D) Vehicles: commercial weight fees: license fees
Exempts vehicles operated by a nonprofit agency that provides transportation for senior citizens and persons with disabilities from vehicle weight and license fees.
Chapter 667, Statutes of 1997
SB 887 (Monteith-R) Employment taxes: consulting services
Authorizes the State Employment Development Department to provide tax consulting services to businesses on a statewide basis.
(In Senate Appropriations Committee)
SB 908 (Lee-D) Special taxes: Alameda-Contra Costa Transit District
Permits the Alameda-Contra Costa Transit District to impose a special tax, with 2/3 voter approval, in the boundaries of a city or contiguous cities in the district.
Chapter 433, Statutes of 1997
SB 919* (Rainey-R) Local government taxes, fees, etc.
Enacts the Proposition 218 Omnibus Implementation Act which prescribes definitions and implementation provisions of Proposition 218 relating to imposition of taxes, assessments and property-related fees and charges. Specifies how the constitutional requirements apply to ongoing annual assessments with specified exceptions.
Chapter 38, Statutes of 1997
A similar bill was AB 1506 (Ortiz-D) which is in Assembly Elections, Reapportionment and Constitution Amendments Committee.
SB 951 (Johnson-R) Peace officers: State Franchise Tax Board
Provides that designated employees of the State Franchise Tax Board be made peace officers, as specified.
Double-joined with SB 826 (Greene-D).
Chapter 670, Statutes of 1997
SB 1090 (Costa-D) Local fees and taxes: hazardous substances
Requires the State Board of Equalization to apply local government-imposed user fees or license taxes as a credit against a hazardous waste facility's fee payments that are collected and deposited in the Hazardous Waste Central Account, until December 31, 1999.
(In Senate Appropriations Committee)
SB 1102 (Senate Revenue and Taxation Committee) Omnibus tax bill
Allows the State Board of Equalization to share motor fuel tax information with other specified state and federal governmental agencies, principally to act in investigation of motor fuel tax law violations. Gives a taxpayer the option to prorate the flat rate fuel tax on newly registered vehicles in order to make all the taxpayer's vehicles subject to the excise tax payment at the same time each year. Makes various changes in the Diesel Fuel Tax law such as conforms to federal law by lowering the standard of knowledge of intent to evoke the Diesel Fuel Tax law, and reduces the penalty to $100 for failure to obtain a license under the law when no tax is due.
Double-joined with SB 506 (Senate Transportation Committee), AB 1226 (Granlund-R), and AB 1269 (Granlund-R).
Chapter 620, Statutes of 1997
SB 1178* (Mountjoy-R) Federal tax funds
Creates the Federal Tax Fund, which requires any person liable for any federal excise, income, or consumer tax to remit the tax to the State Treasurer for deposit and the state would release the taxes from the fund to the federal government, minus interest earned, on a quantity basis. Requires the state to defend its citizens against any action taken by the federal government against individuals (i.e., collection actions), for compliance with this bill.
(Failed passage in Senate Judiciary Committee)
A companion measure is SCA 19 (Mountjoy-R), which is in Senate Rules Committe awaiting assignment to a policy committee.
SCA 18 (Mountjoy-R) Internet taxation
Prohibits the state and its political subdivisions from levying or collecting any tax or fee on Internet communications or Internet users.
(In Senate Rules awaiting assignment to a policy committee)
SJR 23 (Haynes-R) United Nations: global taxation
Requests Congress to oppose any legislation permitting the United Nations or any agency established by the United Nations to levy taxes.
(Failed passage in Senate Revenue and Taxation Committee, reconsideration granted)
AB 92 (Figueroa-D) California Tax Credit Allocation Committee
Changes the California Tax Credit Allocation Committee's voting membership and the application and appeals procedures.
(On Senate Inactive File)
AB 222 (Takasugi-R) Taxes and fees: interest
Requires that interest with respect to both underpayments and overpayments of tax be calculated at the modified adjusted rate per annum determined by specified provisions of the Internal Revenue Code plus 3 percentage points.
(In Assembly Appropriations Committee)
AB 318 (Takasugi-R) Employment of taxes: appeals
Permits the Director of Employment Development to approve a settlement involving a reduction of tax or an amount of $7,500 or less, with the approval of the State Attorney General. Permits the StateUnemployment Insurance Appeals Board to approve settlements above that amount, as well as those below $7,500, if they meet specified criteria.
Chapter 636, Statutes of 1997
AB 573 (Kuehl-D) Child support: State Franchise Tax Board
Expands use of the State Franchise Tax Board to collect child support. Provides that collection of delinquent personal income tax liabilities shall take priority over collection of current child support obligations, unless certain conditions are satisfied.
Doubled-joined with SB 247 (Lockyer-D) and AB 1395 (Escutia-D).
Chapter 599, Statutes of 1997
AB 595 (Brown-D) Fuel tax: Metropolitan Transportation Commission
Allows the Metropolitan Transportation Commission to impose, with voter approval, a regional tax on gasoline in the Bay Area region of up to 10 cents per gallon to fuel locally and regionally inspected transportation projects.
Chapter 878, Statutes of 1997
AB 610 (Margett-D) Taxation: marijuana
Imposes a 10% marijuana distribution tax.
(In Assembly Health Committee)
AB 653 (Papan-D) Fuel taxes: rates
Provides for an annually adjusted excise tax rate on gasoline and diesel fuel based on the percentage change in the California Consumer Price Index.
(Failed passage in Assembly Transportation Committee; reconsideration granted)
AB 782 (Papan-D) Bond acts: finance committees
Consolidates 36 existing state general obligation bond financing authorities and committees into 8 new financing authorities maintaining the original members of the 36 bond financing committees. Provides that each of the 8 committees will include the Director of Finance, the State Controller, and the State Treasurer.
Vetoed by the Governor
AB 1041 (Assembly Revenue and Taxation Committee) Business and insurance taxes
Grants the State Board of Equalization (SBE) authority to disclose information about tax liability to successors, receivers, trustees, executors, administrators, assignees, and guarantors who are liable for the taxes due. Adds interest and penalty provisions for taxes imposed on surplus line brokers. Allows the SBE to share motor fuel information with state and federal agencies. Allows proration of the flat rate fuel tax when a vehicle is added to an existing flat.
Authorizes the SBE to issue jeopardy determinations under the Energy Resources Surcharge Law and the Energy Telephone Lease Surcharge Law. Adds penalties for failure to file an underground storage tank maintenance fee return. Confirms penalties for misuse of dyed diesel fuel to federal law. Conforms the definition of "interstate users" for reporting and payment purposes under the Diesel Fuel Tax Law. Reduces penalty for failure to obtain a license and Diesel Fuel Tax Law where no tax is due.
Vetoed by the Governor
AB 1043 (Assembly Revenue and Taxation Committee) Utility use taxes
Makes it unlawful for any local jurisdiction imposing a utility tax, or certain person, as specified, to disclose or allow the examination of certain tax-related information on documents.
Chapter 806, Statutes of 1997
AB 1226 (Granlund-R) Vehicle license fees: revenue allocation
Extends, for 2 years, the formula that provides a higher allocation of vehicle license fee revenue to cities that incorporated after January 1, 1997.
Chapter 583, Statutes of 1997
AB 1269 (Granlund-R) Diesel fuel tax
Imposes a surcharge on diesel fuel purchased out-of-state but used in vehicles operating in California, which is equivalent to the sales tax charged on diesel fuel purchased in California. Provides for refunds of the portion of diesel fuel sales tax paid on fuel purchases within the state but which fuel is used out-of-state.
Chapter 618, Statutes of 1997
AB 1395 (Escutia-D) Child support: State Franchise Tax Board
Expands the use of the State Franchise Tax Board to help collect the approximately $5 billion delinquent child support currently owing California's children. Requires district attorney's to refer to the board for collection, all their child support delinquencies that are 90 days past due. Allows district attorneys to refer cases that are 30 days or more delinquent.
Double-joined with AB 573 (Kuehl-D) and SB 247 (Lockyer-D).
Chapter 614, Statutes of 1997
AB 1591* (House-R) Motor vehicle fees
Increases motor vehicle registration fees by $1 from $27 to $28 and increases fees for the transfer of vehicles on September 1,1997, July 1, 1998, and July 1, 1999.
Chapter 291, Statutes of 1997
AB 1614* (Lempert-D) Internet fee
Enacts the California Internet Tax Freedom Act which prohibits any tax or fee directly or indirectly on, or in connection with, the Internet, as specified.
