State Budget
Income Tax/Bank & Corp. Tax - Chaptered & Vetoed
Other Income & Corporation Tax
Property Tax
Sales Tax
Miscellaneous
State Budget
SB 12* (O'Connell-D) Education: ninth grade class size reduction
Provides for a new class size reduction program in grade nine. Provides for $135 per unit of full time equivalent enrollment for up to two ninth grade classes in English, mathematics, science, and social studies which are required for graduation. Budget contains $89 million from the Proposition 98 General Fund for the program.
Chapter 334, Statutes of 1998
SB 27 (Maddy-R) Horse racing fees
Provides license fee relief to the horse racing industry and insures that sufficient revenues remain to support the California network of agricultural fairs. Creates a private statewide marketing organization for thoroughbred and fair racing.
Chapter 335, Statutes of 1998
SB 34 (Vasconcellos-D) Medi-Cal: immigrant pregnancy care
Provides that any immigrant who is otherwise eligible for Medi-Cal services, but who does not meet specified requirements relating to residency status, is eligible for medically pregnancy related services (i.e., prenatal care).
Vetoed by the Governor
SB 267* (Maddy-R) State government: support appropriations
Appropriates $18,959,000,000 for allocation by the Director of Finance, pursuant to an Executive Order issued by the Governor, to pay the current expenses of state government, excluding salaries and other per diem of the Members of the Legislature, from July 1, 1998 to August 5, 1998, inclusive.
Chapter 213, Statutes of 1998
SB 295* (Rainey-R) Department of Corrections: internal affairs
Allows for the consolidation of the Internal Affairs Units of the State Department of Corrections and Youth Authority under the Inspector General of the Youth and Adult Correctional Agency (YACA) as intended in the Budget. The Budget not only places the responsibility to conduct all internal affairs investigations of its constituent entities upon YACA, but also transfers all investigative staff and funding from Corrections and Youth Authority to YACA.
Chapter 338, Statutes of 1998
SB 418* (Costa-D) Trial court funding
Accelerates from the 1999-00 to the 1998-99 fiscal year, the state "by-out" of the 17 additional counties (i.e. Butte, El Dorado, Humboldt, Imperial, Kings, Madera, Marin, Mendocino, Merced, Napa, Nevada, Placer, San Luis Obispo, Santa Cruz, Shasta, Sutter, and Yolo) and the 10% reduction in the remittance levels to the state for the non-state "by-out" counties. Becomes operative contingent upon enactment of SB 752. Appropriates $91,473 in augmentation of Budget Item 0450-111-0001.
Vetoed by the Governor
Similar legislation was AB 2791* (Thomson-D), a supplemental trailer bill, which was also vetoed.
SB 752* (Schiff-D) Trial court funding
Provides for county recoupment over a three-year period of funds lost as a result of the trial court maintenance of effort delay starting in the 1998-99 fiscal year. If a county can demonstrate extreme financial hardship, as specified, pursuant to an appeal process with the State Department of Finance, full recoupment of the remaining funds may access in the 1999-00 fiscal year. Adds Tulare County to the list of "by-out" counties in the 1998-99 fiscal year. Adds San Bernardino County to the list of counties for which the fine and forfeiture remittance amounts are adjusted. Becomes contingent upon enactment of SB 418 (Costa). Appropriates $22,253,000 from the General Fund to the Trial Court Trust Fund to back-fill trial courts.
Appropriates $50 million from the General Fund to the Federal Administration Efficiency and Modernization Fund.
(Sent from Unfinished Business to Senate Rules on a Senate Rule 29.10 motion.)
Similar legislation was AB 2788* (Thomson-D), a supplemental trailer bill, which became Chapter 1017, Statutes of 1998.
SB 933* (Thompson-D) Foster care
Makes significant changes to the foster care system in California, pursuant to provisions of the 1998-99 Budget. Budget contained $115,519,000 to finance the provisions of the bill.
Chapter 311, Statutes of 1998
SB 1093* (Rainey-R) State budget: performance measures
Requires the State Budget to focus on the results of government services at the state and local levels. Specifies that state and local government officials are required to respect existing program evaluation requirements and program performance measures, and that outcome measures are to be realistic and commensurate with the level of reviews for each year.
(Died in Senate Budget and Fiscal Review Committee)
SB 1169 (Hurtt-R) Capital outlay: state budgeting
Requires the Governor, as a supplement to the annual Budget, to submit to the Legislature, on or before July 10 of each calendar year, a two-year capital outlay financing plan and a five-year capital outlay plan, each containing specified information regarding proposed capital outlay projects and funding.
(Died in Assembly Consumer Protection, Governmental Efficiency and Economic Development Committee)
SB 1193* (Peace-D) School finance: staff development
Repeals statutes that allow schools to conduct staff development in lieu of instruction (i.e., called "pupil-free days") for up to eight days per year and instead, provides school districts incentive funding to offer three staff development days for teachers and one staff development day for classroom instructional employees. Budget contains $195 million from Proposition 98 General Fund for the program.
Chapter 313, Statutes of 1998
SB 1304 (O'Connell-D) Zero-based budgeting
Establishes a framework for implementation of zero-based budgetary in state government.
(Died in Assembly Budget Committee)
A companion measure is SCA 13 (O'Connell-D), which failed passage on Assembly Floor.
SB 1564* (Schiff-D) Omnibus education bill
Enacts various changes to the Education Code and other codes necessary to implement the Budget Act of 1998, and makes various appropriations of Proposition 98 "settle up" funding in satisfaction of the 1997-98 minimum funding guarantee and funds from the Proposition 98 Reversion Account. Requires the development and approval of prekindergarten learning development guidelines. Enacts various changes to the Child Care and Development Section of the Education Code to make eligibility criteria for subsidized child care between Stage I and Stage II California Work Opportunity and Responsibility to Kids child care. Extends the sunset date for the Class Size Reduction Facilities Loan Program.
Establishes the Partnership for Excellence Program for the Community Colleges with a sunset date of January 1, 2005. Establishes the Assumption Program of Loans to Education for graduates to replace the graduate fellowship program. Appropriates $715.3 million.
Chapter 330, Statutes of 1998 - Item Veto
Governor Item Vetoed $109,186,136.
SB 1565* (Burton-D) Educational Revenue Augmentation Fund
Sets forth the allocation of any excess funds in a county Educational Revenue Augmentation Fund.
Vetoed by the Governor
SB 1573 (Solis-D) Medi-Cal: disproportionate share hospitals
Allows Los Angeles County to submit a revised final plan for the Los Angeles County University of California Medical Center project. Makes the receipt of local assistance funding in the 1998 Budget Act ($40 million) for the construction of three comprehensive health centers contingent on meeting the requirements of this bill
Vetoed by the Governor
SB 1574* (Senate Budget And Fiscal Review Committee) State government operations: Fiscal Review Committee
Appropriates $15.7 million to the State Department of Water Resources for local assistance, on a one-time basis, for specified dredging projects. Appropriates $1 million to the California Arts Council for allocation to the Simon Wiesenthal Center-Museum of Tolerance to acquire a facility to conduct activities of the museum. Appropriates $1,250,000 to the State Employment Development Department for certain job training purposes. Appropriates $475,000 from the Public Transportation Account to the State Department of Transportation for allocation for local assistance to the Bay Area Rapid Transit District.
Chapter 1051, Statutes of 1998 - Item Veto
The Governor Item Vetoed $16,175,000.
SB 1575* (Senate Budget And Fiscal Review Committee) Budget Act of 1998: amendments
Appropriates $900,000 to the State Department of Parks and Recreation to make improvements for parking and restrooms at Pacifica State Beach, appropriates $475,000 to State Department of Transportation for local assistance for allocation to the Bay Area Rapid Transit District, and appropriates $799,000 to the Oxnard School District to implement and support a parent participation and educational technology outreach program.
Vetoed by the Governor
SB 1577 (Sher-D) California Environmental Protection Agency
Creates the California Environmental Protection Agency (CalEPA) Sunset Review and Regulatory Accountability Act of 1998. Specifically, (1) repeals the provisions, effective January 1, 2000, establishing the agency and the Office of Secretary for Environmental Protection; (2) establishes the Joint Legislative Sunset Review Committee for CalEPA; and (3) requires CalEPA to prepare and submit reports, and the Legislative Analyst to provide analyses of those reports and make recommendations to the Legislature concerning a process for terminating CalEPA.
Vetoed by the Governor
SB 1584* (Senate Budget And Fiscal Review Committee) State vehicle license fee revenues
Makes clarifications to AB 1226 (Granlund), Chapter 583, Statutes of 1997, which extends the eligibility period for the higher allocation formula for vehicle license fee revenues available to cities incorporated after January 1, 1987. Specifically, clarifies that Chapter 593 extends the eligibility period by an additional two years, regardless of whether the seven- or 10-year eligibility period has expired prior to the enactment of Chapter 593 or within two years after its enactment.
The following cities benefit from the clarification provided by this bill: West Sacramento, Santa Clarita, Mission Viejo, Hesperia, Apple Valley, Dana Point, Diamond Bar, Yucca Valley, Chino Hills, and Buellton.
Chapter 321, Statutes of 1998
SB 1587* (Alpert-D) Drug courts
Establishes the Drug Court Partnership Act by requiring the Drug Court Partnership Program to be administered by the State Department of Alcohol and Drug Programs (DADP) for the purpose of demonstrating the cost-effectiveness of drug courts. Requires DADP to implement the program together with the concurrence of the Judicial Council. Budget Act contains $8 million for the program.
Chapter 1007, Statutes of 1998 - Item Veto
The Governor item vetoed $4 million from the bill.
SB 1589* (Senate Budget And Fiscal Review Committee) State government administration
Continues the performance budgeting contract with the State Department of General Services through June 30, 1998. Expands the definition of public agencies for the purposes of entering into energy construction contracts to include the State of California. Expands authorization for the construction of facilities for the Franchise Tax Board, as specified. Requires deposit of all Alcohol Beverage Control Board original license fees in the Alcoholic Beverage Control Fund. Requires the removal of any lien placed in connection with the loan to the San Diego National Sports Training Foundation. Extends the loan repayment for the Secretary of State until December 31, 2000, which was made relative to implementing and administering the statewide system to facilitate removal of duplicate or prior voter registration and other election-related issues. Provides for suspension of certain notice filing fees in connection with securities-related actions by the Commissioner of Corporations until July 1, 2000, and starting July 1, 2000 authorizes the commissioner to set specified fees below the maximums specified in law. Revises the composition of the California Space and Technology Alliance Board of Directors and specifies the grant review procedure for the competitive grant purposes. Requires the Public Utilities Commission to approve divestiture or transfer of bayside fossil fueled electric generator and transmission facilities.
Chapter 328, Statutes of 1998
SB 1602* (Peace-D) Public Utilities Commission
Delays the ability of the Public Utilities Commission to enact any decisions to regulate the natural gas industry for case containers until January 1, 2000, and requires the commission to report to the Legislature should it find additional restructuring of the natural gas industry to be in the public interest.
Chapter 401, Statutes of 1998
SB 1603 (Senate Budget And Fiscal Review Committee) Department of Corrections: parole system
Provides the terms and assessment standards necessary to implement a new parole model pilot project in up to two locations within Parole Regions III and IV.
Vetoed by the Governor
SB 1605 (Senate Budget And Fiscal Review Committee) Department of Corrections
Amends the Penal Code to provide the terms and provisions of a female pilot project and modifies the State Department of Corrections' notification responsibilities relative to inmates who are citizens of other nations.
Vetoed by the Governor
SB 1628* (Maddy-R) Regional Burn and Trauma Center
Establishes the Regional Burn and Trauma Center Program to fund a portion of the construction costs associated with replacing a burn and trauma center that serves a significant portion of Medi-Cal beneficiaries.
Chapter 314, Statutes of 1998
SB 1657* (Peace-D) Juvenile female offenders: intervention programs
Creates the Juvenile Female Offender Intervention Program, to be administered by the Board of Corrections, that awards grants on a competitive basis to eligible counties for the purpose of developing intervention programs designed to reduce crime committed by juvenile female offenders, as specified.
Vetoed by the Governor
SB 1733* (Sher-D) School finance
Restores and makes technical amendments of previous appropriations in the 1998 Budget Act. Appropriates $37 million for the 1995-96 claims for court-ordered desegregation programs. Appropriates $1.3 million to the State Department of Education for the Adult Education for Homeless Program. Appropriates $300,000 for a joint use library in the Pasadena Unified School District, appropriates $799,000 to allocate to the Oxnard School District to implement and support a Parent Participation and Educational Technology Outreach Program, and appropriates $2.6 million for growth funding for county offices of education.
(Died on Assembly Third Reading File)
SB 1756* (Lockyer-D) After school programs
Establishes, in combination with AB 2284 (Torlakson) and AB 1428 (Ortiz), the After School Learning and Safe Neighborhoods Partnerships Program for after school partnerships at elementary, middle and junior high schools. The after school programs will offer a safe environment where students will benefit from educational enrichment, tutoring, homework assistance, and recreational activities. Over 60,000 students, kindergarten through 9th grade, could be served through this effort.
Appropriates $500,000. Budget contains $50 million for the program.
Chapter 320, Statutes of 1998 - Item Veto
Governor Item-Vetoed the $500,000 appropriation which was contained in AB 2284.
SB 1837 (Costa-D) State contracts: payment
Continuously appropriates the funds necessary to make payment requirements associated with state contracts if the fiscal year has begun without a Budget having been enacted.
(Died in Assembly Budget Committee)
SB 1992* (Hurtt-R) Corporation taxes: delay in Budget
Excludes from gross income, for purposes of the Personal Income Tax and the Bank and Corporation Tax Law state payments to vendors or contractors that are paid late because of a delay in the enactment of the Budget Act.
(Failed passage in Senate Revenue and Taxation Committee)
SB 2064* (O'Connell-D) Student financial aid: Cal Grant Program
Makes statutory changes to the existing Cal Grant program and establishes a new Cal Grant 7 program to provide 3,000 awards for students in teacher preparation programs.
Chapter 336, Statutes of 1998
SCA 16 (Lockyer-D) Budget Bill: passage
Provides for forfeiture of legislative per diem and salary and the Governor's salary if the Budget goes over the June 30th Budget deadline. Exempts the State Budget from 2/3 vote requirement.
(Died on Senate Inactive File)
Similar legislation is ACA 25 (Morrissey-R), which died in Assembly Budget Committee, and ACA 26 (Torlakson-D), which failed passage on Assembly Floor.
SCA 25 (Haynes-R) State budget
Requires that the State Budget submitted by the Governor to the Legislature for the 1999-2000 fiscal year be developed so that the maximum recommended expenditures for each state agency is the total amount appropriated to that agency for the 1998-99 fiscal year reduced by 10%, except as specified, and that the aggregate recommended expenditures in the Budget for state agencies not exceed the total amount appropriated for the 1998-99 fiscal year reduced by 10%. Requires that the aggregate amount appropriated for state agencies in the statute enacting the Budget Bill passed by the Legislature for the 1999-2000 fiscal year not exceed the aggregate amount appropriated for state agencies for the 1998-99 fiscal year reduced by 10%.
(Died in Senate Budget and Fiscal Review Committee)
SCA 28 (Hurtt-R) Budget bill
Requires that a statute enacting a Budget bill is to go into effect immediately and exempts appropriations in the Budget Bill from a 2/3 legislative vote requirement.
(Died in Senate Budget and Fiscal Review Committee)
AB 830 (Pringle-R) Education finance
Deletes a $400,000 appropriation to the Santa Ana Unified School District for support of an arts and technology outreach program. Provides for a $400,000 appropriation to the Rancho Santiago Community College District for the IDEA Institute in San Diego.
Chapter 1059, Statutes of 1998
AB 858 (Davis-D) Education: teaching standards
Establishes a State Department of Education administered grant program to school districts to provide merit pay of $10,000 to teachers who obtain certification from the National Board for Professional Teaching Standards. Provides that teachers licensed to teach in other states, who are national board certified, shall be issued a clear credential in California.
Chapter 331, Statutes of 1998
AB 862* (Ducheny-D) School libraries
Creates the California Public School Library Act of 1998, administered by the Superintendent of Public Instruction, for the purpose of providing funding to school districts to purchase library resources, including books, periodicals, microfilms, computer software, CD ROM's and other resources. The Budget contains $158.5 million for this purpose.
Chapter 332, Statutes of 1998
AB 889 (Gallegos-D) State contracts: Budget delays
Provides for an interim Budget, if the Budget bill goes beyond 15 days of the deadline in order to make payment to vendors, as specified.
(Died in Senate Governmental Organization Committee)
AB 1331 (Alquist-D) Mathmatics education
Authorizes the State Department of Education to administer a program of grants to support the in-service training of teachers of grades 4-12 in mathematics instruction. Becomes operative only if AB 2442 (Mazzoni) is enacted. The Budget contains $14.25 million for this program.
Chapter 315, Statutes of 1998
AB 1368* (Villaraigosa-D) Diesel emissions
Creates the Carl Moyer Memorial Air Quality Standards Attainment Fund within the State Treasury for the purposes of funding grants for the purchase of low-emission, heavy-duty engines for vehicles, equipment, vessels and locomotives. Requires the grant programs to be administered by the California Air Resources Board with local air districts cooperating in the allocation of some of the grant funds.
Vetoed by the Governor
A follow-up bill, SB 1857* (Brulte-R), was vetoed by the Governor.
AB 1428* (Ortiz-D) After School Learning Programs
Creates the After School Learning and Safe Neighborhoods Partnership Program for the purpose of establishing after school partnerships at elementary, middle and junior high schools. Provides that the purpose of the after school programs will be to offer a safe environment where students will benefit from educational enrichment, tutoring, homework assistance, and recreational activities (over 60,000 students, kindergarten through ninth grade, could be served through this effort).
Appropriates $500,000.
Becomes operative only if both AB 2204 and SB 1756 are chaptered into law. The Budget contains $50 million for purposes of the program.
Chapter 319, Statutes of 1998 - Item Veto
Governor Item-Vetoed the $500,000 because it was contained in AB 2284.
AB 1590* (Thomson-D) Trial court funding
Provides additional county relief by increasing state support for trial courts and making technical adjustments to county support levels and increases county grant levels for the court appointed Special Advocate Program. Reduces county remittance levels to the state for maintenance of effort of trial courts beginning in 1999-00 by increasing the number of "bought-out" counties from 20 to 37 (all counties with populations below 300,000), and lowers the maintenance of effort rate for the remaining counties maintenance of effort remittance levels by 10%.
Chapter 406, Statutes of 1998
AB 1656* (Ducheny-D) 1998-99 Budget Act
Enacts the 1998-99 State Budget which totals $73.3 billion.
Chapter 324, Statutes of 1998 - Item Veto
The Governor ttem vetoed $1.520 billion leaving a $1.255 billion reserve. The State Budget went beyond the legislative deadline 57 days. A temporary measure (SB 267) was passed to keep state operations going for a month.
AB 1734* (Mazzoni-D) Instructional strategies
Modifies the purpose and governance of structure of the California Subject Matter Projects which are established and maintained by the University of California.
Chapter 333, Statutes of 1998
AB 1756 (Havice-D) School Community Policing Partnership Act of 1998
Establishes the School Community Policing Partnership Act of 1998 and creates the School Community Policing Partnership Grant Program for which school districts and county offices of education are eligible to apply for and receive grants for providing safe and secure environments through community policing. The Budget contains $10 million in Proposition 98 funds for the program.
Chapter 317, Statutes of 1998
AB 2041* (Bustamante-D) Instructional materials
Enacts the Schiff-Bustamante Standard-Based Instructional Materials Program which requires that the State Department of Education apportion funds to school districts on the basis of an equal amount per pupil enrolled in public elementary schools and high schools for the purpose of purchasing instructional materials in the core curriculum that are aligned to academic content standards adopted by the State Board of Education for pupils in kindergarten and grades 1-12, inclusive, and that meet prescribed requirements. Appropriates to the Superintendent of Public Instruction for allocation to school districts $250 million from the General Fund for the purchase of standards-based instruction materials in each of the fiscal years from 1999-2000 to 2001-02, inclusive.
Chapter 312, Statutes of 1998
AB 2064 (Morrissey-R) State payments: interest: Budget Act
Provides that, if the annual Budget Act is not enacted on or before July 1 of any fiscal year, any vendor or contractor who contracted with the state for the provision of equipment, materials, services, or supplies prior to that July 1, who has performed in whole or in part on the contract and is thereby due payment under that contract and is not paid because the Budget Act has not been enacted, shall receive interest on the amount of the payment due, and sets forth the rate at which interest would accrue.
(Motion to withdraw from Assembly Consumer Protection, Governmental Efficiency, and Economic Development Committee refused adoption)
AB 2217* (Villaraigosa-D) California Arts Council
Amends and supplements the Budget Act of 1998 by making an appropriation of $2.5 million to the California Arts Council for allocation to the Simon Wiesenthal Center, as specified.
Chapter 951, Statutes of 1998
AB 2261* (Aguiar-R) Local juvenile delinquency prevention
Revises the Juvenile Crime Enforcement and Accountability Challenge Grant Program to provide that the grants are to be awarded on a competitive bases following request-for-proposal education standards and guidelines developed by the Board of Corrections. States intent of the Legislature that the program be funded at a minimum of $25 million annually through the 2001-02 fiscal year.
Chapter 325, Statutes of 1998
AB 2284* (Torlakson-D) After school programs
Creates the After Learning and Safe Neighborhoods Partnerships Program for the purpose of establishing after school partnerships at elementary, middle and junior high schools. Provides that the purpose of the after school programs will be to offer a safe environment where students will benefit from educational enrichment, tutoring, homework assistance, and recreational activities (over 60,000 students, kindergarten through ninth grade, could be served through this effort). Becomes operative only if both AB 1428 and SB 1756 are chaptered. Appropriates $500,000. The Budget contains an appropriation for purposes of funding the program.
Chapter 318, Statutes of 1998
AB 2349 (Pringle-R) State finances
Declares the intent of the Legislature to provide a specified mechanism to facilitate the early resolution of budget shortfalls. Requires the Director of the State Department of Finance to determine the amount of any significant fiscal variance in General Fund revenues and report that fact to the Governor and the Legislature. The Governor would be required to propose legislation to offset the variation in the current fiscal year.
(Died in Assembly Consumer Protection, Governmental Efficiency, and Economic Development Committee)
AB 2442 (Mazzoni-D) Continuing education math staff development
Creates a grant program to reimburse school districts and county offices of education for fees and materials and costs for teachers to take math courses. Becomes operative only if AB 1331 (Alquist) is enacted and becomes operative.
Chapter 316, Statutes of 1998
AB 2594 (Wright-D) Repeat Offender Prevention Project
Revises and recasts the provisions of the Repeat Offender Prevention Project including specifying the counties to which it applies and revising the selection criteria for the participation of minors. The counties are Fresno, Humboldt, Los Angeles, Orange, San Diego, San Mateo and Solano, and the City and County of San Francisco. Appropriates $4 million.
Chapter 327, Statutes of 1998 - Item Veto
The Governor Item-Vetoed the $4 million because it is contained in the Budget Act.
AB 2777 (Honda-D) In-Home Supportive Services (IHSS)
Amends existing cost sharing ratios in the In-Home Supportive Services (IHSS) program to provide state funds for county negotiated wage increases with public authorities and non-profit corporations for the provisions of IHSS services.
(Died in Assembly; concurrence in Senate amendments pending)
AB 2778 (Villaraigosa-D) Healthy Families Program
Requires the Managed Risk Medical Insurance Board to establish a working group consisting of the Healthy Families Advisory Panel and other interested parties to assist in the development of cultural and linguistic competing standards. Requires the board to raise the maximum income limit for the Healthy Families Program from the current 200% of the federal poverty level to 250% of the federal poverty level. Reduces the existing annual co-payment cap for health benefits from $250 to $200, and establishes separate annual co-payment caps for dental and vision benefits of $25 each. Requires the board to provide Healthy Families benefits to income eligible legal immigrant children entering the county after August 22, 1996. Provides that the program is to use the same residency requirements that is used in the Medi-Cal program to determine eligibility.
Vetoed by the Governor
AB 2779* (Aroner-D) Omnibus social services trailer bill
Makes changes to programs administered by the following departments: (1) Aging; (2) Health and Welfare Data Center; (3) Rehabilitation; (4) Drug and Alcohol Programs; (5) Employment Development; and (6) Social Services. Increases the Supplemental Security Income/State Supplementary Program grant levels by 1% on January 1, 1999. Modifies the state-only food stamps program. Establishes the California Families and Children Home Visit Program to provide an array of services to at-risk families.
Chapter 329, Statutes of 1998
AB 2780* (Gallegos-D) Omnibus health trailer bill
Makes changes to (1) the Medi-Cal Program, (2) specified public health programs, (3) services provided to individuals with developmental disabilities and (4) services provided to individuals with mental illnesses which are necessary to implement the 1998-99 Budget Act.
Reduces by $40 million the amount the state obtains from the Disproportionate Share Hospitals Intergovernmental Transfer Fund to offset state Medi-Cal costs. Provides for an additional 12 month period of Medi-Cal eligibility for California Work Opportunity and Responsibility to Kids (CalWORKs) recipients who have left CalWORKs (not receiving cash aid) for employment. Extends the law regarding the Medi-Cal list of contract drugs for one year. Modifies Medi-Cal eligibility by adopting less restrictive income and resources eligibility standards to allow all recipients under CalWORKs to be eligible for Medi-Cal.
Establishes the Newborn and Infant Hearing Screening Program. Increases the state subvention formula provided to counties for public health purposes, including childhood immunizations, restaurant inspections, and emerging disease investigations. Extends the Rural Health Grant Program for one year. Enables small counties with populations of 50,000 or less to contract with the State Department of Health Services to provide local public health services. Provides for the Director of Health Services to establish an advisory committee regarding health care issues affecting seasonal and migratory workers.
Provides for rate adjustments for both day programs and respite care providers. Provides for increased case management services (1-62 staff to consumer ratio) by the regional centers for individuals with developmental disabilities. Provides for an increase of 4% (3% across-the-board, and 1% via a Supplemental Security Income/State Supplementary Program pass-through) for community care facilities contingent on appropriation in the Budget Act. Establishes a comprehensive two-year staff training and competency testing program for community care facility providers. Establishes the Supportive Assistance Program to provide housing assistance to low-income individuals who meet specified criteria, including mental illness and developmental disabilities.
Chapter 310, Statutes of 1998
AB 2781 (Honda-D) In-home supportive services
Makes a number of changes to the In-Home Supportive Services (IHSS) program. Extends for one year the authority of the State Department of Social Services (DSS) to waive a county's required match for administration of the IHSS program, provided the county meets criteria in existing law related to county economic distress. Permits the county cost of IHSS administration to be absorbed by the General Fund in cases where DSS has waived the county administrative match requirement and the county administers IHSS through either a contract or a public authority. States legislative intent to reinvest a portion of the savings in the IHSS program due to the implementation of the personal care option provisions in the Medi-Cal program back into the IHSS program.
Requires the annual cost of a public authority or nonprofit consortium to be shared by the state and counties at the same rate other IHSS costs are shared.
Vetoed by the Governor
AB 2782 (Keeley-D) State government operations
Appropriates $2 million for local food banks, as specified. Appropriates $5 million for the preservation and restoration of the Leland Stanford Mansion State Historic Park. Appropriates $750,000 for preservation and restoration of Pio Pico Governor's Residence State Park. Appropriates $2 million for the North Coast Rail Authority for purposes of providing funds to meet the immediate and critical needs of the authority. Appropriates $350,000 for the Cloverdale Senior Citizens Center. Appropriates $1 million for purchase of the Bombay parcel for the completion of the Santa Cruz Greenbelt.
Chapter 953, Statutes of 1998
AB 2784* (Strom-Martin-D) Omnibus trailer bill: resources and environment
Prohibits the State Department of Toxic Substances Control from adopting the pending regulation to restructure the management and declassification of hazardous waste until the completion of an independent, scientific peer review, the California Environmental Quality Act analysis and the Administrative Procedures Act. Appropriates $617,000 for implementation of the Regulatory Structure Update. Extends the Resources Trust Fund for three years until 2007, establishes a second priority of $2.2 million annually for the Marine Reserve Management Account, and a third priority of $10 million annually for the State Park System Deferred Maintenance Account.
Establishes a .50 cent per plate limit on the amount of funds from the sale of Environmental License Plates that may be used for increasing public awareness of the environmental license plate program.
Appropriates $44 million a year for 1999-2000, 2000-2001, and 2001-2002 fiscal years from the General Fund to the State Department of Water Resources on a pro rated allocation toward payment of the state owed share of approved local flood control projects. When combined with the $40 million appropriated in the Budget Act, these funds will fully pay all current claims. Requires that for a local flood control project to be eligible for state cost sharing it must be approved by the Legislature prior to seeking Congressional approval for federal funds.
Provides an expenditure plan for the unencumbered balances of moneys made available to the State Coastal Conservancy, and the State Departments of Fish and Game and Parks and Recreation (DPR) by the California Wildlife, Coastal and Park Land Conservation Act of 1988 pursuant to the provisions of that bond measure. Those balances are estimated to be $3.9 million for the Coastal Conservancy, $1.9 million for Fish and Game, and $8.9 million for Parks and Recreation.
Extends the administrative provisions relating to the performance based budgeting pilot programs at the California Conservation Corps and DPR.
Requires the State Department of Boating and Waterways to contract for the development of a business plan for the Spud Point Marina using funds appropriated in the budget. Also authorizes the department to re-negotiate or forgive any or all portions of the outstanding debt owed by Sonoma County to the department and to suspend collection of all loan and interest payments.
Chapter 326, Statutes of 1998 - Item Veto
Governor deleted the Regulatory Structure Update provision of the bill.
AB 2788* (Thomson-D) Trial court funding
Provides local government relief by reducing county support for trial courts, providing recoupment of lost funding, and backfilling the Trial Court Trust Fund with General Fund dollars. Includes Tulare County in the list of counties who have their remittance levels to the state for trial courts bought-out by the state beginning in 1999-00. Adjusts the fine and forfeiture contribution of San Bernardino County beginning in 1998-99 to fix an inaccurate statutory requirement resulting from over-reporting of the county's base year level. Appropriates $16,559,000 for transfer from the General Fund to the Trial Court Fund in augmentation of the Budget Act of 1998.
Chapter 1017, Statutes of 1998
Similar bill was SB 752* (Schiff-D), which died in Senate Rules Committee after being referred on a Senate 29.10 Rule.
AB 2789* (Thomson-D) Smog Check II Program
Makes a number of changes to the Smog Check II program by eliminating the so-called "ping-ponging" of cars that fail a smog test between test-only facilities and repair shops; revises the low-income and repair assistance program; and simplifies procedures for vehicles to be removed from the enhanced program testing requirements when ownership is transferred to a non-enhanced area.
Vetoed by the Governor
AB 2791* (Thomson-D) Trial court funding
Provides local government relief by reducing county support for trial courts and backfilling the Trial Court Trust Fund with the General Fund dollars. Provides for the "by-out" of county support for trial courts for an additional 18 counties starting in 1998-99. Provides for a 10% reduction of county support for trial courts for the 20 remaining, non bought-out, counties starting in 1998-99. Provides for the recoupment of funds lost by counties as a result of the decision to delay the State Department of Finance approved adjustments to county remittance levels to the state from 1997-98 to 1998-99. Adjusts the fine and forfeiture contribution of San Bernardino beginning in 1998-99 to fix an inaccurate statutory requirement resulting from over-reporting of the county's base year level. Transfers $113.7 million from the General fund to the Trial Court Trust Fund for the purpose of meeting the 1998-99 funding requirements established by the bill.
Vetoed by the Governor
Similar bill was SB 418* (Costa-D), which was vetoed.
AB 2793 (Migden-D) Adult and juvenile offenders
Provides that funds awarded to the state pursuant to the federal Violent Offender/Truth-in Sentencing Grant Program through federal fiscal year 1999-2000, shall be allocated by the Board of Corrections to counties for construction and modification of local detention facilities.
Chapter 339, Statutes of 1998
AB 2794* (Assembly Budget Committee) Budget items
Appropriates $21,998,000 to restore and augment various Budget items relative to education, taxes, mental health, parks and recreation, energy, water resources, and law enforcement issues.
Chapter 1050, Statutes of 1998 - Item Veto
AB 2795 (Oller-R) Smog Check II Program
Repeals all Vehicle Code and Health and Safety Code sections establishing the Smog Check II program and retains requirements of the "BAR-90" program as the program was constituted prior to 1994 amendments. Retains exemption provisions established in 1997 which exempt from the program all vehicles manufactured prior to the 1974 model year and all new vehicles for the first four model years. Retains the low-income repair assistance program. Provides funding from the State Budget for reimbursement of costs to smog check station owners associated with complying with Bureau of Automotive Repair regulations establishing the enhanced program.
(Motion to withdraw from Assembly Transportation Committee failed)
AB 2796* (Wright-D) Juvenile detention facilities
Provides $100 million for the renovation, reconstruction, construction, completion of construction and replacement of county juvenile facilities. Enacts the Juvenile and Drug Violence Prevention, Detention, and Hotline Protection Act of 1998 which appropriates $25 million for allocation by the State Department of the Youth Authority to nonprofit organizations for acquiring, renovating, or constructing defined youth centers.
Chapter 499, Statutes of 1998
AB 2797* (Cardoza-D) Taxes: fees
Permanently reduces the vehicle license fee of each vehicle by 25% and offsets that amount by a General Fund appropriation to cities and counties, authorizes a tax credit for wages paid in connection with a Joint Strike Fighter contract, applies inflation adjustment factors to the household income amounts that determine the amount of assistance a claimant receives in the Senior Citizens Property Tax Assistance and Renters' Assistance Program, increases the dependent exemption credit to $253 in 1998 and $227 in 1999, increases the medical insurance deduction for self-employed individuals from 25% to 40% during the 1998 tax year, reinstates the renters' credit for taxpayers below certain income limits and provides that the credit is nonrefundable, and conforms several provisions of the state personal income and bank and corporation tax laws to federal tax laws.
Chapter 322, Statutes of 1998
AB 2798* (Machado-D) Taxation
Enacts 10 tax law changes, contingent on passage of Proposition 7 on the November 1998 ballot. If this bill is chaptered and Proposition 7 fails, the following 10 provisions would be enacted: extend the sunset date on the Employer Child Care Program and the Employer Child Care Contribution credits; extend the manufacturing investment credit to computer software; provide 80% conformity to federal research and development tax credits; grant a permanent sales tax exemption for property purchased for use in space flights originating in California; increase the medical deduction for self-employed individuals to 40% beginning in the 1999 tax year; conform California law with certain provisions of federal estate tax law; provide a 5% General Fund sales tax exemption for property used in teleproduction or postproduction; reduce the minimum franchise tax on small corporations during their initial two years of business; provide a sales tax exemption for perennial plants; and make several changes to expand enterprise zones, and change the formulas used to calculate the value of tax incentives under all of the state's geographically-based economic development programs. If Proposition 7 passes, all of the provisions of this bill will be rendered inoperative as of the bill's effective date.
Chapter 323, Statutes of 1998
ACA 1 (Goldsmith-R) Balanced State Budget
Provides for a balanced State Budget.
(Died in Assembly Budget Committee)
ACA 29 (Granlund-R) Budget Bill: passage
Provides that, if a Budget is not enacted by July 1, the personal income tax on earned income, as specified, and the sales and use tax imposed by the state, are not to be imposed for the period between July 1 and the date that the Budget is enacted and those taxes may not be retroactively assessed or collected for that period. Provides that, if a Budget is not enacted by July 1, any amount otherwise due and owing to the state pursuant to a contract or pursuant to the imposition of a fine, penalty, or interest in connection with nonpayment of personal income taxes, vehicle registration fees, or state sales or use taxes, is not due and owing until the date the Budget is enacted, as specified. Provides that, notwithstanding any other provision of the Constitution, the State Controller is authorized to draw from the State Treasury the amount of funds necessary for the state to meet its outstanding obligations and to continue services at the same level as funded during the preceding fiscal year and to issue warrants, as specified.
(Died in Assembly Budget Committee)
ACR 73 (Perata-D) Budget Bill: deliberations
Directs that both houses of the Legislature, with regard to the annual Budget Bill, take all action necessary to ensure that decision making on a Budget Bill that has been referred to Conference Committee be done exclusively by members of the Conference Committee and other representatives of the legislative branch of state government.
(Died in Assembly Budget Committee)
ACR 75 (Miller-R) Joint Committee on the Budget Bill
Creates a Joint Committee on the Budget Bill to annually review the Budget Bill that is annually introduced in each house of the Legislature and to report one of them back to the house of origin no later than June 10, and to operate as a Conference Committee in the event of nonconcurrence.
(Died in Assembly Budget Committee)
Income Tax/Bank & Corp. Tax - Chaptered & Vetoed
SB 302 (Costa-D) Income/corporation tax credits: farmworker housing
Makes technical changes in the farmworker housing tax credits, and conforms the definition of eligible costs to the definition used by the Internal Revenue Services for the low-income housing tax credit.
Chapter 371, Statutes of 1998
SB 400 (Peace-D) Income/corporation taxes: reform
Requires the Legislative Analyst to study, and report to the Legislature no later than February 28, 1999, means whereby both the Personal Income and Bank and Corporation Tax Laws may be reformed so as to be less time consuming and costly for taxpayers and state tax administrators.
Vetoed by the Governor
SB 519* (Lockyer-D) Income/corporation taxes: federal conformity
Conforms state law to the federal provisions of the Taxpayer Relief Act of 1997 relative to small business stock rollovers, sale of livestock due to bad weather, repeal of farm suspense account, repeal of "short-short" rule for regulated investment companies, taxation of earnings on funeral trusts, survivor benefits for public safety offices, alternative minimum tax installment method for farmers.
Reinstates targeted tax areas chaptered out by SB 1234 of 1997. Reinstates 1997 filing requirements for taxpayers whose only income is from the sale of the personal residence. Reinstates penalty for individual retirement account trustees who fail to file returns in 1997. Conforms California law to 1996 federal law for subchapter five rules. Adjusts alternative minimum tax exemption amounts for individuals to correctly reflect inflation since 1987. Changes the exemption threshold for married couples filing separately from $28,360 to $28,630 and changes the exemption phaseout amount for married couples from $117,362 to $107,362.
Chapter 7, Statutes of 1998
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 two 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 1383 (Leslie-R) Taxation: administration
Enacts the Taxpayer Browsing Protection Act by making it a misdemeanor to willfully inspect information furnished or secured pursuant to the Sales Tax Law, Income Tax/Corporation Tax Law, or Unemployment Insurance Law.
Chapter 623, Statutes of 1998
SB 1389 (Craven-R) Income tax check-off: school libraries
Extends until January 1, 2004 the statutory authorization of the existing Public School Library Protection Fund, an income tax check off, if the check off receives $250,000 in annual contributions.
Chapter 665, Statutes of 1998
SB 1397 (Brulte-R) Income taxes: exclusions: Holocaust victims
Excludes from state income tax any amount from claims paid to a Holocaust victim or the heir or beneficiary of a victim for recovery of assets, such as bank deposits, insurance proceeds or artwork, against any entity or individual.
Chapter 962, Statutes of 1998
SB 1741 (Alpert-D) Income Tax: limited Partnerships
Requires the Franchise Tax Board to notify limited partnerships which file a final return that in order to dissolve they must file a certificate of cancellation with the Secretary of State.
Chapter 417, Statutes of 1998
SB 2234* (Senate Revenue And Taxation Committee) Income/Bank Corporation Tax Law
Makes various corrective changes in the tax law relative to wage reporting, limited liability company suspension, taxpayer notification to the Franchise Tax Board of changes made by IRS, insurance dividend deduction, State Disability Insurance refunds, and alimony deduction for nonresidents and part year residents.
Vetoed by the Governor
AB 3 (Baca-D) Local agency military base recovery areas
Expands the number of local agency military base recovery areas from five to eight and extends the life of a Local Agency Military Base Recovery Area from eight to 15 years. Makes various changes to the Revenue and Taxation Code relative to expense deductions for the costs of certain depreciable property.
Chapter 1012, Statutes of 1998
AB 80* (Ducheny-D) Income/corporation taxes: substandard housing
Disallows California income tax deductions taken on housing or vacant property in serious, safety-threatening violation of state law or local building codes.
Chapter 646, Statutes of 1998
AB 168* (Torlakson-D) Tax credits
Increases the state tax credit for building low income housing to $50 million per year for the 1998 and 1999 calendar years.
Chapter 9, Statutes of 1998
Similar legislation was AB 1265* (Torlakson-D), which died in Senate Appropriations Committee.
AB 510 (Ashburn-R) Tax code: partnerships
Clarifies that a partnership is a taxpayer for purposes of the Personal Income Tax and Bank and Corporation Tax.
Chapter 49, Statutes of 1998
AB 1469* (Ortiz-D) Income/corporation taxes: IRS restructuring and reform
Provides additional protections for income taxpayers, in conformity with new federal provisions. Adopts federal changes which correct provisions adopted last year relating to capital gains on residences and Roth IRA's. Simplifies computation of tax for individual taxpayers with multiple dependents by modifying the computation of alternative minimum tax. Allows large corporate taxpayers to make a deposit in the nature of a cash bond with respect to disputed taxes, in order to allow them more than 12 months to develop arguments relating to the dispute. Eliminates an unintended situation where a multinational taxpayer could divert income from the water's edge calculation by artificially establishing a business presence in the United States.
Vetoed by the Governor
Similar legislation included SB 1425* (Hurtt-R), which failed passage in Assembly Revenue and Taxation Committee, and AB 1633 (Ortiz-D), which died in Assembly Revenue and Taxation Committee.
AB 1613* (Scott-D) Income tax deductions: education
Enacts the Higher Education Affordability Act which conforms State Law to the federal tax deduction for student loan interest and allows room and board expenses to be paid from the Golden State Scholarshare program.
Chapter 792, Statutes of 1998
AB 1694 (Ackerman-R) Income taxes: partnership returns
Clarifies that the due date for the tax returns of terminated partnership and limited liability corporations (LLC) is the 15th day of a month and clarifies the Franchise Tax Board's suspension authority as it pertains to LLCs that fail to pay their taxes.
Chapter 80, Statutes of 1998
AB 1733 (Machado-D) Income tax checkoff: D.A.R.E.
Extends the tax check off for the California Drug Abuse Resistance Education Fund to January 1, 2004, provided it meets a minimum contribution test annually. Appropriates $313,850.21.
Chapter 654, Statutes of 1998
AB 2366 (Cedillo-D) Tax checkoffs: Emergency Food Assistance Program Fund
Creates a new checkoff on the state income tax form to benefit the Emergency Food Assistance Program and ensures that the California Mexican American Veterans' Memorial Checkoff will appear on the 1998 tax return.
Chapter 818, Statutes of 1998
AB 2456* (Sweeney-D) Income tax: disaster relief
Provides income tax relief to individuals and businesses for losses arising from storms, floods, or any other related casualties occurring in February 1998 in any county proclaimed by the Governor to be in a state of disaster with respect to the storm and flooding.
Chapter 749, Statutes of 1998
AB 2797* (Cardoza-D) Income/corporation taxes
Repeals the refundable portion of the renters' tax credit and limits the credit to single filers with adjusted gross income of $25,000 or less and the married and head-of-household filers with $50,000 or less. Income limits will be indexed starting in 1999 for inflation. The amount of credits remain at $60 for single filers and $120 for married filers.
Increases the dependent tax credit from $120 to $253 in 1998 and to $227 in 1999. In future years, the $227 credit will be indexed for inflation.
Grants tax credit for any contractor or subcontractor who successfully bids on the Joint Strike Fighter Project. This was contained in AB 390 (Runner-R) at one time and AB 1779 (Runner-R) which died in Assembly Appropriations Committee.
Makes certain other changes in federal income tax laws applicable, with specified exceptions and modifications, and makes specified supplemental, technical, or clarifying changes, for purposes of the Personal Income Tax Law or the Bank and Corporation Tax Law, or both, with respect to, among other things, the following subjects: controlled foreign partnerships; transfers of property to foreign partnerships, extension of statutes of limitations for foreign transfers; basic standard deduction and minimum tax exemption amount for certain dependents; increase in estimated tax de minimus threshold, modifications to look-back method; qualified lessee construction allowances; electing large partnerships, maximum number of shareholders of REIT's; tenant services income; attribution rules applicable to stock ownership; earnings and profits of REIT's; treatment of foreclosure property; treatment under hedging instruments; excess noncash income; prohibited transaction safe harbor; shared appreciation mortgages; wholly owned subsidiaries; regulated investment companies; penalties; statute of limitations; awarding of administrative costs; certain revocable trusts treated as part of estate; distributions of an estate; separate share rules for estates; treatment of funeral trusts; survivor benefits for public safety officers killed in the line of duty; the Small Business Job Protection Act of 1996; tax treatment of hospitals; ACE adjustment for AMT; association of holders of timeshare interests; certain receivables purchased by cooperative hospital service organizations; mark to market election; pooled debt obligations subject to acceleration; holding period for dividends received deduction; reporting of certain payments made to attorneys; returns of beneficiaries of estates and trusts; confidential corporation tax shelters; sale or exchange of partnership interest; termination of suspense accounts for certain family corporations; net operating loss carryovers; denial of deduction for certain amounts paid in connection with insurance; limitation on property for which an income forecast method may be used; waiver of estimated tax penalties; education credits; deduction for interest on education loans; penalty-free withdrawals from IRAs for higher education; qualified state tuition programs; education IRAs; deduction for corporate contributions of computer technology and equipment for elementary or secondary school purposes; treatment of cancellation of certain student loans; restoration of IRA deductions for certain taxpayers; establishment of nondeductible, tax-free IRAs; distributions from certain plans for use without penalty to purchase a first home; certain bullion not treated as collectibles; exemption from tax for gain on sale of a principal residence; rollover of gain from sale of qualified stock; repeal of separate deprecation lives for AMT purposes; AMT not to apply to farmers' installment sales; carryover basis for inherited property; treatment of livestock sold on account of weather-related conditions; expensing of environmental remediation costs; workers' compensation; UBTI exclusion for sponsorship payments; large corporate underpayments; and gain on certain sales of agricultural refiners and processors.
Chapter 322, Statutes of 1998
AB 2798* (Machado-D) Income/corporation taxes
Makes a number of changes to the Enterprise Zone Program: (1) eliminates sales from the apportionment formula, (2) simplifies computation of the formula by basing it on California factors rather than nation-wide factors; (3) allows data processing and motion picture postproduction equipment to take advantage of the credit against sales taxes paid. This provision was contained in SB 2079 (Costa) which died in Senate Appropriation Committee.
Increases California's alternative incremental research credit rates to equal 80% of the federal rates, up from the current rates which equals 55% of the federal rates.
Extends the manufacturing tax credit to taxpayers employed in computer programming services, prepackaged software, and computer integrated systems designs. This provision was contained in AB 2441* (Campbell), which failed passage in Assembly Revenue and Taxation Committee and in a previous version of AB 1063.
Increases the self-employed health insurance deduction to 40% in 1999 and thereafter. This was contained in AB 1991 (Davis) which died in Assembly Appropriations Committee.
Reduces the first year's franchise tax for new small businesses to $300 and further reduces the second year's minimum tax from $800 to $500. Subsequent years' minimum tax, when applicable for corporations with little or no income would continue to be $800. The reduced tax will apply to corporations formed in 1999 and thereafter. This was contained in SB 510 (Monteith), SB 890 (O'Connell), and SB 1435 (Hayden), all of which died in Senate Appropriations Committee.
Extends the employer child care credits through 2002. This was contained in AB 215 (Baldwin), which died in Assembly Appropriations Committee; AB 484 (Havice) and SB 1523 (Rainey), both of which died in Senate Appropriations Committee.
Chapter 323, Statutes of 1998
AB 2809* (Assembly Revenue And Taxation Committee) Economic development areas: tax incentives
Clarifies existing economic development area hiring credits with respect to seasonal employees, corrects a chaptering problem by reinstating the December 1, 1998 sunset date for the Los Angeles Revitalization Zone NOL provisions, and reorganizes provisions relating to various zone programs to minimize the possibility of future chaptering-out problems.
Double-joined with AB 3 (Baca).
Chapter 1039, Statutes of 1998
AJR 48 (Richter-R) Income taxes: medical savings accounts
Requests the President and Congress of the United States to expand the federal Medical Savings Account (MSA) program to (1) remove the limit on the number of taxpayers who are allowed to have an MSA, (2) permit funds in an MSA to be used to pay insurance premiums on employee's health care plan, or allowing those premiums to be otherwise deductible, and (3) makes the savings account provisions permanent.
Resolution Chapter 142, Statutes of 1998
AJR 58 (Pringle-R) Research and development tax credit
Requests the President and Congress of the United States to enact legislation to permanently extend the research and development credit.
Resolution Chapter 162, Statutes of 1998
Other Income & Corporation Tax
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.
(Died in Senate Local Government Committee)
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)
SB 83* (McPherson-R) Income taxes: brackets
Eliminates the 1% personal income tax rate bracket, and reduces the income threshold for the 4% bracket.
(Died in Senate Appropriations 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.
(Died in Senate Appropriations Committee)
Similar legislation was SB 2080 (O'Connell-D), which failed passage in Assembly 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 two years.
(Died 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.
(Died 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.
(Died 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 steelhead trout habitat from 10% to 15%, and increases the amount a taxpayer may claim from $50,000 to $100,000.
(Died in Senate Appropriations 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 two years of incorporation, if the corporation's gross receipts are less than $1 million.
(Died in Senate Appropriations Committee)
SB 634* (Knight-R) Income/corporation tax: ridesharing tax credit
Reestablishes ridesharing tax credit.
(Died in Senate Revenue and Taxation Committee)
SB 635 (Knight-R) Enterprise zones: Barstow
Requires the State Trade and Commerce Agency to designate an enterprise zone which meets specified criteria applicable to the City of Barstow.
(Died in Senate Appropriations 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)
SB 706* (Rainey-R) Taxation: alternative minimum tax
Conforms state law to 1993 changes in federal law to eliminate a special depreciation adjustment to corporations which are subject to the alternative minimum tax (AMT). Exempts corporations with gross receipts of $1 million or less from the AMT.
(Died in Senate Appropriations 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.
(Died in Senate Appropriations Committee)
SB 861 (Johnson-R) Income tax: health care
Conforms 100% to the federal medical savings account deduction.
(Died in Senate Rules Committee)
SB 890* (O'Connell-D) Corporation tax: minimum franchise tax
Reduces the minimum franchise tax for the first two income years of any bank or corporation that has gross receipts under $1 million.
(Died 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.
(Died 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.
(Failed passage in Senate Revenue and Taxation Committee)
SB 1166 (Hurtt-R) Income/corporation taxes: burden of proof
Declares legislative intent to conform to the federal taxpayer bill of rights pending in Congress. Gives the Franchise Tax Board (FTB) the burden of proof in any court proceeding with respect to any factual issue relevant to ascertaining the income tax liability of a taxpayer so long as the taxpayer asserts a reasonable dispute with respect to an issue and the taxpayer cooperates with the FTB.
(Failed passage in Senate Revenue and Taxation Committee)
SB 1167* (Hurtt-R) Income/corporation taxes: job tax credit
Conforms state tax laws to 1997 changes in federal law which permit the deduction of interest paid on student loans (even for those who take the standard deduction, up to specified amounts) for taxpayers whose income is below specified levels.
(Died in Senate Appropriations Committee)
Contained in AB 2797* (Cardoza-D), a taxation Budget trailer bill, which became Chapter 322, Statutes of 1998.
SB 1248* (Vincent-D) 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)
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.
(Died 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.
(Died in Senate Transportation Committee)
SB 1402* (McPherson-R) Income/corporation taxes: irrigation tax credit
Allows for a 15% tax credit for installation of water conserving irrigation systems on agricultural land in California.
(Failed passage in Senate Revenue and Taxation Committee)
SB 1435* (Hayden-D) Corporation taxes: minimum franchise tax
Reduces the minimum franchise tax for newly-operating corporations from $800 to $300 annually for the first two years of business, if the corporation's gross receipts are less than $1 million.
(Died in Senate Appropriations Committee)
Became part of AB 2798* (Machado-D), a Budget trailer bill, which became Chapter 323, Statutes of 1998.
SB 1499* (Lewis-R) Income tax: residence debt cancellation
Allows a taxpayer to include the amount of debt that is canceled in connection with a short-sale of the taxpayer's principal residence in the amount realized from the sale.
(Died in Senate Appropriations Committee)
SB 1523* (Rainey-R) Income/corporation taxes: child care
Extends the sunset date of the Employer Child Care Program or Facility Credit to January 1, 1999. Provides that the credit may be claimed in an amount equal to $50,000 for each year for each taxpayer for a maximum of five years and that the credit may reduce to the tentative minimum tax.
(Died in Senate Appropriations Committee)
SB 1526* (Monteith-R) Income tax: standard deduction
Increases the standard tax deduction by 50%.
(Died in Senate Revenue and Taxation Committee)
SB 1636* (Haynes-R) Income/corporation taxes: smokemeters
Provides a 6.5% tax credit for revenue from manufacturing smokemeters that are approved by the Air Resources Board.
(Died in Senate Revenue and Taxation Committee)
SB 1788* (Karnette-D) Income/corporation taxes: exclusion: oil and gas
Exempts from taxation income from the sale by an independent producer of oil or gas (1) located in a California well which has not produced since 1996, and (2) for which an existing enhanced oil recovery tax credit has been allowed.
(Died in Senate Appropriations Committee)
SB 1814* (Karnette-D) Income/corporation taxes: enterprise zones
Expands the enterprise zone hiring tax credit, as specified.
(Died in Senate Revenue and Taxation Committee)
SB 1815* (McPherson-R) Income/corporation taxes: child care credits
Reinstates two employer tax credits for child care facilities through 1998, and increases the credit from 30% to 70% if 51% of the children in the facility live in households with income below 75% of the local median income.
(Died in Senate Appropriations Committee)
SB 1871* (Kelley-R) Corporation taxes: apportionment
Permits extractive businesses to elect whether to use the single- or double-weighted sales factor in their three-factor apportionment formula.
(Died in Senate Revenue and Taxation Committee)
SB 1873* (Polanco-D) Income tax: credit unions
Exempts credit unions from corporate franchise tax and most other state and local taxes and licenses.
(Died in Senate Appropriations Committee after being passed by the Assembly)
Similar legislation was AB 1413* (Papan-D), which died in Senate Appropriations Committee.
SB 1881 (Monteith-R) Tax incentive: research and development
Provides for an 80% tax credit for the costs of research and development within Merced County in which an enterprise zone would be placed.
(Died in Senate Revenue and Taxation Committee)
SB 1953 (Vasconcellos-D) Income tax: Election Fund
Establishes a State Candidate Election Fund into which individuals could voluntarily direct up to $5 of their California income tax each year.
(Failed passage in Senate Elections and Reapportionment Committee)
SB 1985* (O'Connell-D) Corporation tax: computer donations
Partially conforms to 1997 federal tax law changes providing enhanced deductions for corporations which donate computer equipment to schools.
(Died in Senate Appropriations Committee)
Contained in AB 2797* (Cardoza-D), a taxation Budget trailer bill, which became Chapter 322, Statutes of 1998.
SB 1992* (Hurtt-R) Income/corporation taxes: exclusions
Provides that vendors and contractors who contract with the state would not be required to include in gross income any payments that are not timely made by the state because the State Budget was not enacted.
(Failed passage in Senate Revenue and Taxation Committee)
SB 1993* (Hurtt-R) Income/corporation taxes: deduction: federal taxes
Allows a tax deduction equal to the amount of federal taxes paid for income tax, Social Security, Medicare, and unemployment insurance.
(Died in Senate Revenue and Taxation Committee)
SB 1994* (Hurtt-R) Income/corporation taxes: net operating losses
Increases the amount of operating losses a business may carry forward and deduct in future years from 50% of losses to 100% of losses, and increases the length of time that those losses may be deducted from the next 15 years to 20 years.
(Died in Senate Appropriations Committee)
SB 1995* (Hurtt-R) Income/corporation taxes: depreciation conformity
Conforms state tax law with federal tax law concerning federal depreciation rules.
(Failed passage in Senate Revenue and Taxation Committee)
SB 1996* (Hurtt-R) Income tax: education loans
Conforms state tax law with federal income tax deduction for interest on student loans.
(Died in Senate Appropriations Committee)
Contained in AB 2797* (Cardoza-D), a taxation Budget trailer bill, which became Chapter 322, Statutes of 1998.
SB 2079 (Costa-D) Enterprise zones: tax incentive modifications
Reinstates previous provisions which change how enterprise zone business income is apportioned between the zone and elsewhere for purposes of claiming deductions and credits.
(Died in Senate Appropriations Committee)
Became part of AB 2798* (Machado-D), a Budget trailer bill, which became Chapter 323, Statutes of 1998.
SB 2080 (O'Connell-D) Land and water conservation: tax credit
Enacts the Land and Water Conservation Act of 1998 which allows a tax credit in an amount equal to 55% of the fair market value of any qualified contribution pursuant to the act.
(Failed passage in Assembly Appropriations Committee)
SB 2197* (Rainey-R) Income taxes: brackets
Increases the personal income tax bracket ceiling by 10%.
(Failed passage in Senate 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.
(Died 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.
(Died in Senate Revenue and Taxation Committee)
AB 8* (Leach-R) Minimum franchise tax
Prorates the $800 minimum tax for corporations which dissolve during a year based on the number of months in their final tax year.
(Died in Senate Appropriations Committee)
AB 9* (Campbell-R) Income/corporation taxes: capital assets
Enacts the Jobs Stimulus Act of 1998 to exclude from income any gain from the sale of a California capital asset.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 27* (Bowen-D) Minimum franchise tax
Provides that a corporation that has begun specified procedures for dissolution and ceased doing business in this state shall not be subject to the minimum franchise tax.
(Died in Senate Appropriations 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.
(Died in Assembly Appropriations Committee)
AB 56* (Mazzoni-D) Income/corporation taxes: school facilities credit
Provides a tax credit for public school construction or expansion.
(Died 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.
(Died 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 roofs with fire retardant materials.
(Died in Assembly Appropriations Committee)
Similar legislation was AB 109* (Kaloogian-R), which died in the Assembly Appropriations Committee.
AB 82* (Villaraigosa-D) Enterprise zones
Extends the Los Angeles Revitalization Zone tax credits from 1998 to 2003.
(Died 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.
(Died in Senate Appropriations Committee)
AB 94* (Cardoza-D) Income tax credits: gun safes
Allows a $150 tax credit per gun safe, for up to two gun safes, for a taxpayer who purchases a gun safe during the taxable year for personal use. Sunsets January 1, 2003.
(Died in Senate Appropriations Committee)
AB 119* (Runner-R) Income tax credits: adoption expenses
Conforms state law with federal law concerning tax credits for adoption expenses, except that this bill makes the credit permanent, unlike the federal credit.
(Died in Senate 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.
(Died 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.
(Died in Assembly Revenue and Taxation 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.
(Died 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.
(Died in Senate Appropriations Committee)
AB 215* (Baldwin-R) Income taxes: dependent children
Extends the sunset date for the Employer Child Care Program of the Employer Child Care Contribution Credits from January 1, 1998, to January 1, 2003.
(Died in 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.
(Died 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.
(Died in Assembly Appropriations Committee)
AB 305 (Wayne-D) Income tax deductions: health insurance
Conforms California law to federal law by phasing in a 100% deduction from gross income for self-employed individuals' health insurance costs.
(Died in Senate Appropriations Committee)
Similar bill was AB 2798* (Machado-D), which was a taxation Budget trailer bill, which became Chapter 323, Statutes of 1998.
AB 390 (Runner-R) Income/corporation taxes: Joint Strike Fighter Program
Expresses legislative intent regarding a tax incentive to ensure the Joint Strike Fighter Program be built and produced in this state.
(Died on Assembly Floor)
Prior version contained a tax credit which was included in AB 2797* (Cardoza-D), a Budget trailer bill, which became Chapter 322, Statutes of 1998.
AB 470* (Ducheny-D) Income tax credits: dependents
Increases the dependent tax credit from $67 to $105.
(Died 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.
(Died in Assembly Appropriations Committee)
AB 511 (Migden-D) Corporation taxes: financial corporations
Allocates revenues from the bank in lieu of tax to cities and counties based on population and the location of bank's payroll.
(Died in Senate Appropriations Committee)
AB 526 (Vincent-D) Sport franchises
Specifies that anyone who interferes with sports franchise contracts loses all tax credits and exemptions.
(Died 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.
(Died in Conference)
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.
(Died 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 sales and use tax exemptions.
(Died 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.
(Died in Senate 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.
(Died 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.
(Died in Assembly Appropriations 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.
(Died in Assembly Appropriations Committee)
AB 654* (Martinez-D) Income tax credit
Provides for partial refundable tax credit for reduction in State Supplementary Payments.
(Died in Assembly Revenue and Taxation Committee)
Similar bill was AB 1262* (Martinez-D), which died 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.
(Died 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%.
(Died 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 three months at a county juvenile home or State Department of Youth Authority facility.
(Died in Senate Appropriations Committee)
AB 809 (Escutia-D) Enterprise zone
Requires the State Trade and Commerce Agency to designate two 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.
(Died in Assembly Appropriations 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.
(Died in Assembly Appropriations Committee)
AB 873* (Takasugi-R) Income/corporation taxes: solar energy
Establishes tax credits for energy conservation measures and retrofitting for energy conservation.
(Failed passage 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.
(Died in Assembly Judiciary Committee)
AB 1062* (Battin-R) Income/corporation taxes: credits
Extends the manufacturers' investment credit to teleproduction and postproduction services.
(Died in Assembly Appropriations Committee)
AB 1063 (Knox-D) Tax disclosure
Allows disclosure of specified tax information on taxpayers with a business located within a charter city to the tax officials of that city.
(Died in Senate Revenue and Taxation Committee)
AB 1081* (House-R) Income/corporation taxes: irrigation
Provides for a tax credit of 15% of the one-time costs of purchasing and installing qualified water application or distribution equipment.
(Died 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.
(Died in Assembly Appropriations Committee)
AB 1218* (Alquist-D) Corporation tax: insurance companies
Permits an insurance holding company to deduct the full amount of dividends received from its subsidiaries, without a corresponding reduction in the deduction of interest incurred on funds borrowed for contribution to the subsidiary.
(Died in Senate Appropriations Committee)
AB 1232 (Granlund-R) Income/corporation taxes: information return
Allows any taxpayer who writes off a bad debt to file an information return and requires the State Franchise Tax Board to access and record the information contained in the information return.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 1271* (Papan-D) Corporation taxes: doing business
Exempts corporations whose only presence in California is warehousing of goods.
(Died in Senate Appropriations Committee)
AB 1287* (Wildman-D) Tax credits: health care coverage
Provides ten to 25% tax credit for health care costs of small employers.
(Died in Senate Revenue and Taxation Committee)
AB 1356* (Figueroa-D) Tax credit: research and development
Conforms state tax law with federal alternative incremental research tax credit rates.
(Died in Senate Appropriations 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.
(Died 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 employees taking graduate level courses.
(Died in Assembly Appropriations Committee)
Similar legislation was AB 1747* (Alquist-D), which died in Assembly Appropriations Committee.
AB 1364* (Wayne-D) Corporation tax: tobacco advertising
Denies tax deduction for costs of tobacco advertising.
(Died in Assembly 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.
(Died in Assembly Appropriations Committee)
AB 1419* (Campbell-R) Minimum franchise tax
Provides that, when two or more entitites file a combined report in the computation of their California tax liability, only a single minimum franchise tax would be due from the affiliated entities that are included in the combined report.
(Died 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.
(Died in Assembly Revenue and Taxation Committee)
AB 1488 (Pringle-R) Income/corporation taxes: taxpayer rights
Partially conforms state tax law to the most-recently proposed amendments to federal taxpayers' rights provisions by modifying certain provisions of the Katz-Harris Taxpayer Bill of Rights, and by amending or adding to provisions governing the administration of the personal income tax law and the bank and corporation tax law, in specific regard to the following subjects: a percentage limitation on the amount of penalties that are assessed with respect to amounts of tax that are the subject of an installment payment plan; the suspension of limitations periods with respect to refunds in the case in which a taxpayer is "financially disabled," as defined; the burden of proof in suits to recover amounts of tax; a taxpayer's recovery of costs and expenses incurred in administrative or court proceedings; a grant program for the funding of clinics for low-income taxpayers; information provided to taxpayers with respect to audits; records of evaluations of board officers and employees who have contact with taxpayers; and the standard of proof and the amount of damages recoverable in actions against the state with respect to officers or employees of the State Franchise Tax Board.
(Died in Assembly Appropriations Committee)
AB 1494* (Olberg-R) Income tax credit: military personnel
Provides a 4% income tax credit for wages or pensions received by military personnel.
(Died in Senate Appropriations Committee)
AB 1513* (Cardoza-D) Agricultural prunings tax credit
Allows a tax credit equal to $30 for each ton of agricultural prunings delivered to a biomass facility.
(Died in Senate Appropriations Committee)
AB 1530* (Poochigian-R) Income/corporation tax credits: carry forward
Allows taxpayers to carryover the aggregate of unused credits for an unlimited period.
(Died in Assembly Revenue and Taxation Committee)
AB 1618* (Morrissey-R) Senior income tax deduction
Allows a deduction from gross income of $20,000 for residents who are at least 65 years of age and whose adjusted gross income does not exceed $127,000.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 1623* (Figueroa-D) Telecommuting tax credit
Allows a tax credit equal to $200 for each new residential teleworking position created and $100 for each new teleworking center position created during the tax year.
(Died in Assembly Appropriations Committee)
AB 1662 (Alquist-D) Higher education: tax credits
Creates three separate tax credits for donations to community colleges in California for (1) the cost of donated qualified property, (2) the cost of modifications to a qualified facility that is donated to a community college, and (3) monetary donations to maintain the qualified facility.
(Died in Assembly Higher Education Committee)
AB 1702* (Figueroa-D) Tax credits: transit passes
Allows a tax credit equal to 40% of the costs paid by an employer for providing subsidized public transit passes to employees and requires the California Research Bureau to submit a report to the Legislature on the audit.
(Died in Assembly Appropriations Committee)
AB 1708* (Leach-R) Tax credit: qualified wages and equipment
Provides a tax credit for employers equal to 50% of the qualified wages paid to an employee during the first year of employment in a qualified training program.
(Died in Assembly Appropriations Committee)
AB 1713* (Cunneen-R) Employer tax credits: teaching/classes
Allows employers a tax credit equal to 50% of the expenses incurred in connection with lending a qualified employee to a state community college or vocational institution for the purpose of teaching math or science and a credit equal to 50% of the expenses incurred for allowing state public high school or community college teachers to attend an employer-sponsored education class.
(Died in Assembly Appropriations Committee)
AB 1728* (Floyd-D) Income tax credit: child and dependent care
Provides a personal income tax child and dependent care tax credit to taxpayers with adjusted gross incomes of less than $100,000.
(Died in Assembly Appropriations Committee)
AB 1747* (Alquist-D) Income tax exclusions: educational assistance
Provides an exclusion of up to $5,250 per year from an employee's gross income for employer-provided graduate educational expenses.
(Died in Assembly Appropriations Committee)
Similar legislation was AB 1360 (Alquist-D), which died in Assembly Appropriations Committee.
AB 1779* (Runner-R) Tax credits: Joint Strike Fighter Program
Provides a wage tax credit and property tax credit to taxpayers who are under an initial contract or subcontract to manufacture property for ultimate use in a Joint Strike Force.
(Died in Assembly Appropriations Committee)
Contained in AB 2797* (Cardoza-D), a taxation Budget trailer bill, which became Chapter 322, Statutes of 1998.
AB 1841* (Baldwin-R) Tax credits: mortgage savings accounts
Allows a qualified individual who has never purchased a principal residence to establish a mortgage savings account and provides a personal income tax credit equal to 10% of the deposits made to the account.
(Died in Assembly Appropriations Committee)
AB 1914* (Ashburn-R) Tax credit: air pollution
Provides a tax credit in the amount of $50 for each vehicle tested by BAR-97 equipment in the enhanced areas of the state.
(Failed passage in Assembly Transportation Committee)
AB 1976* (Campbell-R) Tax credits: manufacturers
Provides that in the case where the manufacturers' investment credit exceeds the tax, the excess is to be refunded to the taxpayers over the following five years in five equal installments.
(Died in Assembly Appropriations Committee)
AB 1991* (Davis-D) Income tax deductions: health insurance
Increases the tax deduction allowed for costs incurred by self-employed individuals for health insurance from 25% to 40%.
(Died in Assembly Appropriations Committee)
Contained in AB 2797* (Cardoza-D), a Budget taxation trailer bill, which became Chapter 322, Statutes of 1998.
AB 2026* (Leach-R) Income tax credits: child care
Allows a tax credit equal to the greater of 30% of the amount allowed for the federal child and dependent care credit or $150 per child or dependent.
(Died in Assembly Revenue and Taxation Committee)
A similar bill was AB 2092* (Morrissey-R), which failed passage in Assembly Revenue and Taxation Committee.
AB 2107* (Kaloogian-R) Income tax deduction: health insurance
Partially conforms state law to federal law by phasing in a 100% tax deduction for the costs paid or incurred by a taxpayer for medical, dental, and/or eye care insurance.
(Died in Assembly Appropriations Committee)
A similar bill was AB 2131* (Morrissey-R), which died in Assembly Revenue and Taxation Committee.
AB 2108* (Kaloogian-R) Income tax credits: schools
Conforms state tax law to the federal nonrefundable HOPE Scholarship tax credit contained in the federal 1997 Taxpayer Relief Act.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 2109* (Kaloogian-R) Tax credits: school activities
Allows a tax credit equal to the amount of fee, up to $500 per year, paid by taxpayers to a qualified K-12 for a school-sponsored activity.
(Died in Assembly Appropriations Committee)
AB 2110* (Kaloogian-R) Tax credits: school tuition
Provides 100% tax credit equal to any voluntary cash contributions made to a school tuition organization in this state, not to exceed $500 per taxable year.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 2165* (Bowen-D) Tax deduction: environmental remediation expense
Conforms state tax law to federal law by allowing taxpayers to deduct the cost of qualified environmental remediation expenditures in the year paid or incurred.
(Died in Assembly Appropriations Committee)
Contained in AB 2797* (Cardoza-D), a Budget taxation trailer bill.
AB 2205* (Washington-D) Economic development: job creation
Extends most of the tax incentives available under the Los Angeles Revitalization Zone (LARZ) Program for an additional five years for a city located in the LARZ as designated by the State Trade and Commerce Agency.
(Died in Assembly Appropriations Committee)
AB 2219* (Battin-R) Corporation tax: computer donation
Conforms California's bank and corporation tax law to the federal enhanced tax deduction for computer equipment donations made to elementary or secondary schools.
(Died in Assembly Appropriations Committee)
Contained in AB 2797* (Cardoza-D), a Budget taxation trailer bill, which became Chapter 322, Statutes of 1998.
AB 2221* (Machado-D) Tax credits: tiering and filtering software
Provides qualified Internet service providers a tax credit equal to a certain percentage of the cost paid or incurred, up to $50,000 per taxpayer per year, for the purchase and installation of a tiering or filtering system or a gateway scanning device that is placed on the Internet service provider's web server.
(Died in Assembly Appropriations Committee)
AB 2257 (Cedillo-D) Tax-exempt organizations
Requires any tax exempt organization that provides any health care services to disclose to the public specified transactions, employee compensation, reports and ownership in subsidiaries.
(Died in Senate Revenue and Taxation Committee)
AB 2258* (Cardenas-D) Alternative minimum tax
Conforms state tax law with federal law by eliminating charitable contributions of appreciated property as a tax preference for purposes of computing the alternative minimum tax.
(Died in Assembly Appropriations Committee)
AB 2267* (Baugh-R) Income tax deductions: medical care
Allows taxpayers to deduct 100% of their medical and dental expenses as an itemized deduction.
(Died in Assembly Revenue and Taxation Committee)
AB 2311* (Baugh-R) Tax credits: smog check equipment credit
Allows tax credits to small businesses that purchase or lease Smog Check II equipment if the number of vehicles subject to the Smog Check II program decreases by 25% or more before January 1, 2005.
(Failed passage in Assembly Appropriations Committee)
Similar legislation was AB 2552* (Baugh-R), which died in Senate Revenue and Taxation Committee.
AB 2330* (Poochigian-R) Income tax: medical expense deduction
Reduces the threshold over which medical and dental expenses are allowed as a deduction from 7.5% of adjusted gross income to 2.0%.
(Died in Assembly Appropriations Committee)
AB 2335* (Poochigian-R) Income taxes: medical savings accounts
Enacts the Medical Savings Act of 1998 which allows a tax deduction for the taxpayer's contributions to a California medical savings account.
(Died in Assembly Revenue and Taxation Committee)
AB 2370* (House-R) Tax credits: newspapers
Allows a one-time tax credit equal to the amount paid or incurred as an investment of capital in a qualified newspaper. The maximum amount of credit allowed would be $50,000 per taxpayer and $20 million per qualified newspaper.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 2441* (Campbell-R) Tax credits: computer and software
Expands the manufacturers investment tax credit to allow taxpayers involved in specified computer programming and computer software to claim the tax credit.
(Failed passage in Assembly Revenue and Taxation Committee)
Became part of AB 2798* (Machado-D), a Budget trailer bill.
AB 2458* (Honda-D) Tax credit: Y2k compliance costs
Provides taxpayers whose annual gross sales are $10 million or less a tax credit equal to 20% of the costs for the repair or replacement of any computer system in order to resolve certain computer date issues, commonly known as Y2k issues.
(Died in Assembly Appropriations Committee)
AB 2520* (Prenter-R) Tax credits: farmworker health credit
Provides a tax credit, up to $50,000 per year, equal to 25% of the qualified expenses paid or incurred by a taxpayer for preventive health care provided to employees who are qualified farmworkers.
(Died in Assembly Appropriations Committee)
AB 2613 (Pacheco-R) Franchise Tax Board collections
Adds any restitution, fine, or other amount imposed by court order on behalf of crime victims, to the statutory offset priority list of delinquent accounts offset against personal income tax refunds.
(Died in Assembly Appropriations Committee)
AB 2635 (Martinez-D) Income tax amnesty
Temporarily reinstates a tax amnesty program that was in effect from December 10, 1984, through March 15, 1985.
(Died in Assembly Revenue and Taxation Committee)
AB 2692* (Kuehl-D) Tax deduction: low emission vehicles
Allows a depreciation expense tax deduction for ultralow emission vehicles.
(Died in Assembly Appropriations Committee)
AB 2735* (Cardenas-D) Tax credit: volunteer time
Allows a $100 tax credit for taxpayers who volunteer a minimum of 40 hours in a public elementary or secondary school that is attended by the taxpayer's child or children.
(Died in Assembly Revenue and Taxation Committee)
ACA 43 (Granlund-R) Renter's tax credit
Replaces the current renter's tax credit with a flat $130 income tax credit for renters.
(Died in Assembly Revenue and Taxation Committee)
AJR 74 (Ashburn-R) Internal Revenue Service
Requests the President and Congress of the United States to enact HR 3097 to terminate the Internal Revenue Code of 1986.
(Failed passage in Assembly Revenue and Taxation Committee)
Property Tax
SB 30 (Kopp-I) Refunds and credits
Allows a county or city to enter into a settlement with a taxpayer to substitute credits against future tax liabilities
Chapter 87, Statutes of 1998
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.
(Died in Senate Revenue and Taxation Committee)
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 one 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.
Chapter 562, Statutes of 1998
SB 529 (Johnson-R) Property tax allocation: state-assessed property
Validates the unitary and operating nonunitary property tax apportionment and allocation errors made by Orange County from 1992-93 through 1996-97, and provides for a negotiated and agreed upon allocation processing beginning in 1998-99 that allocates these revenues between the specified fire library districts.
Chapter 412, Statutes of 1998
SB 549 (Ayala-D) Property tax revenue transfers: San Bernardino County
Allows San Bernardino County and the City of Chino Hills to enter into an agreement to reallocate property taxes.
Vetoed by the Governor
SB 730* (Alpert-D) Property tax allocation: county free library
Allows the San Diego County Board of Supervisors to designate additional property taxes in support of the San Diego county free library.
Vetoed by the Governor
SB 737 (Senate Budget And Fiscal Review Committee) Property tax: rates
Allows a city or county to impose a higher property tax rate to make payments in support of pension programs approved by voters before July 1, 1978, provided the higher rate is approved by two-thirds of the voters voting on that higher rate at an election.
(Died on Assembly Inactive File)
SB 854* (O'Connell-D) Transit district's property tax allocation
Exempts single-county transit districts from being subject to the property tax revenue shifts to the Educational Revenue Augmentation Fund (ERAF). Appropriates $569,000 from General Fund.
(Died in Assembly Appropriations Committee)
NOTE: Coalition of local agencies, builders, developers, realtors, and taxpayer advocates wanted 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 ERAF legislation included SB 854* (O'Connell-D), SB 899* (Hayden-D), SB 1032* (Kopp-I), SB 1294 (Leslie-R), SB 2656 (Brulte-R), SB 1895 (O'Connell-D), SB 2226* (Schiff-D), AB 1* (Aguiar-R), AB 95* (Sweeney-D), AB 393* (Richter-D), AB 864 (Thomson-D), AB 1349 (Kaloogian-R), AB 1712 (Cunneen-R), AB 1945 (Honda-D), AB 2471 (Brewer-R), and ACA 4 (Aguiar-R).
SB 880* (Craven-R) Property tax revenues
Expresses legislative intent that Educational/Revenue Augmentation Fund (ERAF) transfers be frozen at the 1996-97 level, and that the transfer be eliminated over a ten-year period.
(Died 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 889* (Hayden-D) Property tax revenue allocation: local agency relief
Makes modifications in the property tax allocation formula in order to provide more money to local agencies.
(Died in Senate Local Government Committee)
Similar legislation was SB 2226* (Schiff-D), which died in Senate Local Government Committee; AB 1* (Aguiar-R), which died in Assembly Local Government Committee; and AB 95* (Sweeney-D), which died in Senate Appropriations Committee.
SB 1032* (Kopp-I) Local fiscal relief: property tax revenue allocation
Exempts the Broadmoor Police Protection District from the 1992 and 1993 Educational Revenue Augmentation Fund shifts.
Vetoed by the Governor
SB 1103 (Alpert-D) Property taxes: document retention
Reduces, from seven years to six years after the lien date, the time that must elapse before the county assessor or the State Board of Equalization (BOE) may destroy documents containing information obtained by taxpayers. Provides that BOE may destroy these document after three years has elapsed if the documents have been microfilmed, consistent with the current authority of county assessors. Authorizes alternative storage of these documents using advanced technologies, and adds microfiche and computer imaging as storage options for both county assessors and the BOE.
Chapter 583, Statutes of 1998
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.
(Died in Assembly Local Government Committee)
SB 1294 (Leslie-R) Property tax revenue allocations: Teeter Plan counties
Permits counties which adopted the Teeter Plan before 1994-95 to reduce the Educational Revenue Augmentation Fund contributions between 1998-99 and 2002-03 by 20% of the current value of the increased revenues allocated to schools as a result of the Teeter Plan.
(Died in Senate Appropriations Committee)
SB 1464 (Brulte-R) Homeowners Property Tax Assistance Program
Makes a statement of legislative intent regarding the indexing for inflation to the Senior Citizens' Homeowners and Renters Property Tax Assistance and the Senior Citizens and Disabled Citizens Property Tax Postponement programs.
(Died in Senate Appropriations Committee)
SB 1565* (Burton-D) Educational Revenue Augmentation Fund
Provides that for 1998-99 and thereafter, in the event there are excess funds in a county Educational Revenue Augmentation Fund (ERAF), the allocation of those funds shall be as follows:
- 14% to the county superintendent of schools to fund special education programs.
- The remainder to the county, cities, and special districts in proportion to the amount of the property tax shift from those agencies to the county ERAF, and to the county superintendent of schools.
- As in existing law, the amount allocated to the county superintendent of schools shall not offset state aid for special education programs for county offices of education and school districts within the county.
Vetoed by the Governor
SB 1895 (O'Connell-D) Property tax locations: Santa Barbara County
Deems as correct the property tax allocations through 1996-97 in Santa Barbara County.
Vetoed by the Governor
SB 1997* (Johnson-R) Property taxation: purchase price
Makes it a rebuttable presumption that the value of improvements which are financed by assessments is included in the price paid by the seller, unless the assessor can demonstrate otherwise.
Chapter 783, Statutes of 1998
SB 2233 (Senate Revenue And Taxation Committee) Property tax administration
Makes numerous technical amendments to the property tax administration laws, which provide some flexibility to counties when performing tax administration-related functions. Corrects mistakes in technical references, repeals obsolete references, and repeals provisions that duplicate tax collection notification efforts. Allows county treasurers/tax collectors to request reasonable attorney's fees in cases of collection of taxes pursuant to bankruptcy proceedings. Allows a county to impose a fee for the use of a credit card to pay property taxes. Requires a county tax collector to notify the State Controller of any proposed tax sale or postponement of any tax sale.
Chapter 497, Statutes of 1998
SB 2235 (Senate Revenue And Taxation Committee) Taxation: property and private railroad cars
Makes various revisions to provisions relating to the administration of the property tax law and the private railroad car tax. Clarifies that having projects for disabled persons that were financed pursuant to federal law are eligible for the welfare exemption. Allows the clerk of the county board of equalization to electronically send the hearing notice to an applicant for a reduction in assessment. Establishes a four-year statute of limitation for the State Board of Equalization to bring an action for the collection of delinquent taxes on private railroad cars.
Chapter 695, Statutes of 1998
SB 2237 (Senate Revenue And Taxation Committee) Property tax and timber yield tax
Expands the property tax exemption provided to religious organizations to include personal property leased by churches. Restores the August 31 deadline for the State Board of Equalization to inform assessors of changes to the subsequent year's business property statement. Exempts timber harvests which are so small that the revenue does not exceed the cost of assessment and collection.
Chapter 591, Statutes of 1998
SCA 9 (Haynes-R) Property tax exemption: agricultural land
Exempts from property taxation any privately owned agricultural land or open-space land that is actively sued to propagate a sustaining breeding, migrating, or wintering population of indigenous wild animals in three or more of certain specified ways.
(Died in Senate Revenue and Taxation Committee)
SCA 27 (Monteith-R) Property tax: agricultural land
Permits the Legislature to exempt agricultural and natural resource land from school bond property tax, except for the portion of the land on which a residential unit is situated, as specified.
(Failed passage in Senate Revenue and Taxation Committee)
AB 378 (Morrow-R) Possessory interest: horseracing
Appropriates funds to any city which has lost horse racing revenues as a result of a racing association's ability to use those revenues to pay possessory interest property tax.
Vetoed by the Governor
AB 393* (Richter-R) Property tax allocations: frontier counties
Limits the Educational Review Augmentation Fund shift in frontier counties to the amount the agency received from Proposition 172.
(Failed passage in Assembly Local Government Committee)
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 a formula that takes into account the mileage in this state for each class.
(Died on Senate Third Reading File)
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.
(Died 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.
(Died in Assembly Local Government Committee)
AB 826* (Thomson-D) Property tax exemption: hospitals
Exempts multi-site health clinics from property taxation.
(Died in Conference Committee)
AB 864 (Thomson-D) Property tax shifts: Yolo County
Limits the Educational Revenue Augmentation Fund (ERAF) shift for Yolo County to 56% of the total amount of property tax revenue it would have received if there was no ERAF shift.
(Died in Senate Appropriations Committee)
AB 1069* (Cardoza-D) Property tax
Allows the Legislature to grant an exemption of up to $50,000 on new construction to an owner-occupied home for the purpose of creating living quarters for an elderly relative.
(Died in Senate Revenue and Taxation Committee)
Its companion measure, ACA 6 (Cardoza-D), also died in Senate Revenue and Taxation Committee. Similar legislation was ACA 14 (Cardoza-D), which failed passage in Senate Revenue and Taxation Committee.
Takes effect immediately as an act to call an election.
AB 1246 (Olberg-R) Property taxation: mining property
Requires that leach ponds, tailing facilities, and settling ponds on mining or mineral property be approved separately for purposes of determining taxable value.
Chapter 226 Statutes of 1998
AB 1668* (Richter-R) Property tax: welfare exemption: recreational districts
Clarifies that property owned by an organization eligible for the welfare exemption does not lose its tax exempt status if leased to a local recreational district.
(Died in Assembly Revenue and Taxation Committee)
AB 1712 (Cunneen-R) Property tax revenue allocations
Validates property tax allocations that were provided to four independent fire districts in Santa Clara County and one library district in San Joaquin County, and requires that these allocations be corrected. Exempts that portion of revenues that are appropriated by a county board of supervisors to a fire district from the 1992-93 property tax shift.
Vetoed by the Governor
AB 1755 (Keeley-D) Property tax exemption: solar energy
Reinstates the property tax exemption of active solar energy systems from appraisal as new construction.
Chapter 855, Statutes of 1998
AB 1782 (Strom-Martin-D) Property tax: Teeter Plan credits
Clarifies, for purposes of applying the alternative procedure for the distribution of property tax levies only, known as the Teeter method, and for purposes of receiving the Teeter credit, that the secured roll may include the supplemental property tax roll.
Chapter 528, Statutes of 1998
AB 1807* (Takasugi-R) Property tax: airline property and possessory interests
Codifies a county/industry settlement agreement relating to aircraft violation and airport possessory interests. Provides a schedule of property tax credits to specified airlines against future tax liabilities totaling $50 million. Connected to AB 2318 (Knox-D).
Chapter 86, Statutes of 1998
AB 1945 (Honda-D) Property tax revenue allocations
Deems prior allocations of property tax revenues to Santa Clara County Central Fire District to be correct, as specified.
Vetoed by the Governor
AB 1960 (Takasugi-R) Property tax: base year value
Allows statewide inter-county base year property valuation transfers from former residences to replacement dwellings for homeowners who are disabled or over 55 years of age, contingent upon approval of the voters.
(Died in Assembly Appropriation Committee)
AB 1971* (Ackerman-R) Property taxation: possessory interest
Clarifies that the definition of durability, for purposes of determining the existence of a possessory interest, to mean that any use or interest of public property that is not more than seven calendar days lacks the durability necessary to constitute a possessory interest in real property.
(Died in Assembly Appropriations Committee)
AB 2060* (Granlund-R) Property tax: homeowners' exemption
Increases the homeowners' exemption from $7,000 to $20,000.
(Died in Assembly Revenue and Taxation Committee)
AB 2247* (Baldwin-R) Property tax exemptions
Exempts experimental fusion research device equipment from property taxation.
(Died in Assembly Revenue and Taxation Committee)
AB 2318* (Knox-D) Property tax: airline property and possessory interests
Provides for the valuation of real property interests held by airlines at publicly owned airports (possessory interests) and establishes a methodology for the assessment of these possessory interests, specifically landing rights. Connected with AB 1807 (Takasugi-R).
Chapter 85, Statutes of 1998
AB 2384 (Aguiar-R) Property taxation: mobilehomes
Removes the January 1, 2000 sunset date on the exemption from the change in ownership provision for mobilehome parks to be transferred to a nonprofit corporation formed by tenants.
Provides that if, on or after January 1, 1998, a park is acquired by an entity that did not attain an initial tenant participation level of at least 51% on the date of the transfer, the entity shall have up to one year after the date of the transfer to attain a tenant participation level of at least 51%. If an individual tenant notifies the county assessor of the intention to comply with the conditions set forth in the preceding sentence, the mobilehome park may not be reappraised by the assessor during that period. If, however, a tenant participation level of at least 51% is not attained within the one-year period, the county assessor shall thereafter levy escape assessments for the mobilehome park transfer.
Chapter 139, Statutes of 1998
AB 2456* (Sweeney-D) Property tax relief: floods
Provides property tax relief to local governments for losses arising from storms, floods, or any other related casualties occurring in February 1998 in any county proclaimed by the Governor to be in a state of disaster with respect to storms and flooding.
Chapter 749, Statutes of 1998
AB 2471 (Brewer-R) Property tax allocations
Revises how the growth in property tax is allocated.
(Died in Assembly Appropriations Committee)
AB 2699 (Pringle-R) Orange County bankruptcy
Provides alternative financial provisions for the implementation of the Orange County Consensus Recovery Plan in the event that an appellate court invalidates current law. Provides that property tax revenue allocation to the County's flood control district and the harbors, beaches, and parks fund be reduced by $4 million each, and requires allocations equal to the amount of those reductions to the County's general fund.
Chapter 724, Statutes of 1998
AB 2749 (Wildman-D) Property tax revenue allocations
Requires the Legislative Analyst, on or before July 1,1999, to present a written report to each house of the Legislature that sets forth the Legislative Analyst's recommendations, as provided, with respect to the reform of the existing requirements and procedures with respect to the annual allocation in each county of ad valorem property tax revenues.
(Died in Assembly Local Government Committee)
AB 2797* (Cardoza-D) Senior homeowners/renters' tax assistance
Increases the income eligibility cap for seniors and disabled homeowners and renters to adjust for inflation since 1997, and indexes eligibility in future years. Specifies that the maximum income level for participation will be $33,360 beginning in 1999, and that no adjustment will be made to the amount of property tax paid.
Chapter 322, Statutes of 1998
ACA 4 (Aguiar-R) Local government finance: property tax revenues
Limits the amount of property tax revenues that cities, counties, and special districts shift to the Educational Revenue Augmentation Fund to the amounts shifted in 1998-99. Requires the allocation of support for schools and community college districts to be determined as it would have been in the absence of ACA 4.
(Died in Senate Rules Committee)
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 furnishing and equipping of schools, or the acquisition of real property for school facilities.
(Failed passage on Assembly Floor)
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.
(Died 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.
Resolution Chapter 60, Statutes of 1998
ACA 34 (Poochigian-R) Property taxation: new construction
Allows the Legislature to exclude from the definition of "new construction" for property tax purposes, the costs of construction, installation, or modification of machinery or equipment annexed or attached to real property that is necessary to comply with federal, state or local environmental law, rules or regulations.
(Failed passage in Assembly Appropriations Committee)
ACA 39 (Takasugi-R) Property taxation: base year value
Permits the Legislature to allow, by statute, the transfer of the base year value of a residence owned by a person over 55 years of age, or who is severely and permanently disabled, to a replacement dwelling in another county, as specified.
(Died in Assembly Appropriations Committee)
ACA 43 (Granlund-R) Homeowners' exemption: renter's credit
Increases the homeowners' tax exemption from $7,000 to $20,000.
(Died in Assembly Revenue and Taxation Committee)
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.
(Died in Senate Revenue and Taxation Committee)
Sales Tax
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)
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 sale price of that property exceeds $25,000.
(Died in Senate Appropriations Committee)
SB 591 (Johnson-R) Sales tax exemption: firearm dealers
Allows the State Department of Justice to require each firearms dealer to charge each firearms purchaser the background check fee that is currently charged to the dealer.
Chapter 922, Statutes of 1998
SB 639* (Burton-D) Sales tax exemption: nonprofit youth groups
Expands the partial sales tax exemption provided to nonprofit youth groups by eliminating the requirement that the goods which are eligible for the partial exemption be hand-crafted by members of the group.
(Died in Senate 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.
(Died in Assembly Appropriations Committee)
SB 781* (Maddy-R) Transaction and use tax: City of Placerville
Allows the City of Placerville to levy a transaction and use tax at a rate of either 0.125% or 0.25% to fund police services, upon approval of a majority of the Placerville City Council and two-thirds of the electors voting on the issue.
Chapter 234, Statutes of 1998
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.
(Died 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.
(Died in Senate Revenue and Taxation Committee)
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.
(Died in Senate 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.
(Died 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.
(Died 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.
(Died in Senate Appropriations Committee)
Similar legislation is AB 1608* (Pringle-R), which died in Senate Appropriations Committee.
SB 1308* (Lewis-R) Sales tax
Specifies that, for purposes of the sales tax, retailers are not engaged in business in California if they attend conventions or trade shows for 15 days or less a year.
(Died in Senate 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 five 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.
(Died in Senate Revenue and Taxation Committee)
SB 1383 (Leslie-R) Taxpayer Browsing Protection Act
Enacts the Taxpayer Browsing Protection Act, which specifies that any willful unauthorized inspection or unwarranted disclosure or use of information concerning any sales and use constitutes a misdemeanor.
Chapter 623, Statutes of 1998
SB 1424 (Maddy-R) Transactions and use tax: City of Clovis
Allows the City of Clovis to levy tax for police and fire facilities with two-thirds local vote.
Chapter 158, Statutes of 1998
SB 1488 (Rainey-R) North Lake Tahoe Transportation District
Allows the creation of the North Lake Tahoe Transportation Authority and permits the Authority to enforce a transaction and use tax of not more than 1/2% within its territory, if adopted by a majority of the Authority's board of directors and approved by a two-thirds vote of the voters.
Chapter 1044, Statutes of 1998
SB 1496* (O'Connell-D) Sales tax: worthless accounts
Allows retailers who assign nonrecourse debts to a collection agency to claim a sales or use tax deduction on accounts found to be worthless and written off by the assignees, as specified.
(Died in Senate Rules Committee after it passed the Assembly)
Similar legislation was AB 1229* (Migden-D), which died in Senate Appropriations Committee.
SB 1519* (Alpert-D) Sales tax: prepaid phone cards
Imposes a sales tax on prepaid phone cards in lieu of 911 tax, California Public Utilities Commission surcharge, and local utility uses charges.
(Died in Senate Revenue and Taxation Committee)
SB 1974* (Monteith-R) Sales tax exemption: plant products
Enacts the Monteith Sales Tax Equity Act by exempting perennial plants that produce food for human consumption from the sales tax.
(Died in Senate Appropriations Committee)
The contents of the bill were placed into AB 2798* (Machado-D), which was a trailer budget bill and became Chapter 323, Statutes of 1998.
SB 1998* (Hurtt-R) Sales tax rates
Reduces the 4-3/4% sales tax rate to 4%.
(Died in Senate Revenue and Taxation Committee)
SB 2037* (O'Connell-D) Sales tax exemption: space flight
Eliminates the 2004 sunset date for the sales tax exemption provided to property used in space flights originating at Vandenberg Air Force Base.
(Died in Senate Appropriations Committee)
The contents of the bill were placed into AB 2798* (Machado-D), which was a trailer bill which became Chapter 323, Statutes of 1998
SB 2046* (Costa-D) Sales tax exemption: regional beverage containers
Exempts the redemption value of nonrefillable containers from the sales tax.
(Died in Senate Appropriations Committee)
SB 2107* (O'Connell-D) Sales tax exemption: fuel efficient vehicles
Exempt a high fuel-efficient motor vehicle, or zero emission vehicle, from the 6% state sales and use tax.
(Died in Senate Revenue and Taxation Committee)
SB 2230 (Senate Revenue And Taxation Committee) Sales tax: penalties
Clarifies the penalties for taxpayers required to report their sales and use tax liability by means of an electronic funds transfer.
Chapter 420, Statutes of 1998
SB 2236 (Johnston-D) Transactions and use taxes: City of Sacramento
Allows the City of Sacramento, subject to voter approval, to levy a transaction and use tax pursuant to the Transactions and Use Tax Law, at a rate of 0.25% or 0.5%, for general revenue purposes.
(Died in Assembly Revenue and Taxation Committee)
AB 66* (Baca-D) Local sales tax: jet fuel
Revises the rules used to allocate jet fuel sales tax revenue to local governments. Allocates local tax revenue from sales of jet fuel to the local jurisdiction where the fuel is delivered into the aircraft. For multijurisdictional airports, specifies the allocation of revenue to the jurisdiction involved. Applies to allocations made on or after September 1, 1998.
Chapter 1027, Statutes of 1998
AB 68* (Brown-D) Exemptions: nonprofit animal shelters
Exempts sales of animals from sales tax by nonprofit animal shelters.
(Died in Senate Revenue and Taxation Committee)
AB 222 (Takasugi-R) Taxes and fees: interest
Includes interest paid on overpayments of sales and use taxes and business taxes equal to interest charged on underpayment.
(Died in Senate Appropriations Committee)
AB 410* (Gallegos-D) Sales tax exemption: acupuncturists
Provides a partial sales tax exemption for various specified goods furnished by a licensed acupuncturist in the course of his other professional duties.
(Died 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.
(Died 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.
(Failed passage 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.
(Died in Senate Appropriations Committee)
AB 821 (Takasugi-R) Sales tax: Taxpayer Bill of Rights
Conforms the Sales and Use Tax Law to recently enacted provisions of the federal Taxpayers' Bill of Rights and makes other changes that affect taxpayers.
Chapter 612, Statutes of 1998
AB 836 (Sweeney-D) Transactions taxes: administration cost recovery
Limits the amount that may be charged by the State Board of Equalization (BOE) to a district for the administration of a local transaction and use tax for any fiscal year to the lesser of the percentage BOE would have charged if this bill was not enacted, or a specified percentage of the total amount of revenue collected by BOE pursuant to that transaction and use tax for that fiscal year. Requires BOE to report, on March 1, 1998 and January 1, 1999, to the budget committees of each house of the Legislature, on the actions BOE will take to adjust its costs commensurate with the reduced reimbursements provided by this bill.
Chapter 890, Statutes of 1998
AB 1019 (Machado-D) Sales tax exemption: liquefied petroleum gas
Exempts from sales tax liquefied petroleum gas added for household use in a qualified residence, as specified.
(Died in Senate Appropriations Committee)
AB 1062* (Battin-R) Sales tax exemption: teleproduction
Exempts tangible personal property purchased for use by a qualified person to be used primarily in teleproduction, or post production services, and in research and development, as specified.
(Died in Assembly Appropriations Committee)
AB 1243* (Granlund-R) Local sales and use tax: allocation
Deletes the provisions of SB 110 of 1997, relating to allocation of local use taxes by deleting the provisions that require the State Board of Equalization to allocate local use taxes not reported to a county, city, city and county, or redevelopment agency, based on the distribution of use taxes in the prior quarter.
Chapter 15, Statutes of 1998
Similar legislation was SB 2104 (Karnette-D), which died in Senate Revenue and Taxation 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.
(Died 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 his/her 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.
(Died 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.
(Died in Assembly Local Government Committee)
AB 1608* (Pringle-R) Sales tax exemption: newspapers
Partially reinstates the sales and use tax photograph exemption for newspapers and subscription periodicals that was repealed on July 15, 1991.
(Held in Senate Appropriations Committee without recommendation)
AB 1614 (Lempert-D) Sales tax: Internet
Codifies decisions of recent court cases and modifies the date that the provision exempting the taking of orders from customers in the state through a computer telecommunications network from the definition of "engaged in business" in the state becomes inoperative.
Chapter 351, Statutes of 1998
AB 1672 (Scott-D) Sales tax: prepayments
Requires taxpayers, in lieu of reporting their sales and use tax liabilities on a quarterly/prepayment basis, to remit their sales and use taxes within 30 days following the end of each monthly period in which they receive payment for the tangible personal property they sold.
(Died in Assembly Appropriations Committee)
AB 1691* (Prenter-R) Sales tax: used vehicle trade-ins
Exempts, from sales taxation, the price of a used vehicle that is traded-in during the purchase of a new vehicle.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 1765* (Runner-R) Sales tax exemption: property used in space flights
Extends the sales tax exemption, indefinitely, on qualified property purchased for use in space flights, and eliminates the requirement that the flight originate from Vandenberg Air Force Base.
(Died in Assembly Appropriations Committee)
AB 1800* (Machado-D) Sales tax exemption: fuel and petroleum
Exempts from sales tax that portion of fuel and petroleum products sold to an air common carrier that is left on board after the air common carrier reaches the first out-of-state destination.
(Died in Assembly Appropriations Committee)
AB 1831* (Firestone-R) Sales tax exemption: computers
Provides a sales tax exemption for qualified computer systems or software that are sold to a tax-exempt, nonprofit organization that intends to make a gift of the equipment to a public school, school district, or county office of education that is located in this state.
(Died in Assembly Appropriations Committee)
AB 1894* (Havice-D) Sales tax exemption: firefighting vehicles
Exempts public agencies, including fire districts, from the sales or use tax for purchase of any firefighting vehicle or apparatus, if the amount of purchase is equal to, or greater than, $100,000.
(Died in Assembly Revenue and Taxation Committee)
AB 1946 (Papan-D) Auto lease sales tax
Specifies that the Bradley-Burns use tax collected on the lease of a vehicle by a large volume leasing company will be allocated to the city or county where the leasing company is located, rather than to the county sales tax pool of the county where the lessee is located.
Chapter 140, Statutes of 1998
AB 1964 (Aguiar-R) Sales and use tax revenues
Requires any local public agency that pledges sales and use tax revenues as security for bonds or other obligations, as defined, to provide written notice to the public agency imposing the taxes when it files the validation notice.
Chapter 360, Statutes of 1998
AB 2051* (Firestone-R) Sales tax exemption: college textbooks
Provides a 6% sales tax exemption for sales and purchase of college textbooks by students.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 2081* (Villaraigosa-D) Sales tax exemption: newspapers
Extends the newspaper and periodical sales tax exemption to daily newspapers and their photographs.
(Died in Assembly Appropriations Committee)
AB 2427* (Knox-D) Sales tax exemption: teleproduction
Exempts property used in teleproduction, or post production services, from the 5% General Fund sales and use tax.
(Died in Assembly Appropriations Committee)
Contained in AB 2798* (Machado-D), a Budget trailer omnibus tax bill, which became Chapter 323, Statutes of 1998.
AB 2550* (Poochigian-R) Sales tax exemption: charitable fundraising
Exempts, from sales tax gross receipts, any fundraising sale of tangible personal property that is made at a flea market, swap meet, or other special event, by a charitable organization, itself exempt from tax, in order to raise funds for a charitable purpose of that organization.
(Died in Assembly Revenue and Taxation Committee)
AB 2635 (Martinez-D) Sales tax: amnesty program
Establishes a tax penalty amnesty program under the sales tax, as specified.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 2670 (Kuehl-D) Sales tax: prepayments
Revises the sales and use tax prepayment requirements for sales that occur in the second quarter of the year to make these prepayment requirements consistent with those for other quarters.
(Died in Assembly Appropriations Committee)
AB 2675* (Villaraigosa-D) Sales tax: reduction
Reduces the state General Fund Sales and Use Tax rate by 1/4% (from 5% to 4-3/4%) from January 1, 1999 through December 31, 1999.
Vetoed by the Governor
AB 2678 (Pringle-R) Taxation: judicial relief
Allows a taxpayer to obtain a restraining order, or injunction, to prohibit the assessment or collection of taxes by filing a statement with the Attorney General and either paying the amount due, or posting a bond to guarantee payment of the amount due.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 2798* (Machado-D) Sales tax exemption: perennial plants and space flight
Provides a sales tax exemption to all plants used to produce food for human consumption. Fruits, citrus, and nut trees qualify for the exemption, as would perennial plants like asparagus and rhubarb.
Expands the space flight exemption originating at Vandenberg Air Force Base to launches from sites other than Vandenberg, and extends the exemption indefinitely.
Exempts property used in teleproduction, or post-production services, from the 5% General Fund sales and use tax.
Chapter 323, Statutes of 1998
AB 2808 (Assembly Revenue And Taxation Committee) Taxation: report on tax provisions
Requires the Legislative Analyst (with input from the State Department of Finance), State Board of Equalization, and State Franchise Tax Board, to prepare annual reports and selected bill analyses, both identifying the distributive effects of tax reductions.
(Died in Assembly Revenue and Taxation Committee)
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 approved by a two-thirds vote of each entity's governing body who is party to the contract.
Resolution Chapter 133, Statutes of 1998
ACA 29 (Granlund-R) Budget Bill: passage
Provides that, if a Budget is not enacted by July 1, the personal income tax on earned income, as specified, and the sales and use tax imposed by the state, are not to be imposed for the period between July 1 and the date that the Budget is enacted and those taxes may not be retroactively assessed or collected for that period. Provides that, if a Budget is not enacted by July 1, any amount otherwise due and owing to the state pursuant to a contract or pursuant to the imposition of a fine, penalty, or interest in connection with nonpayment of personal income taxes, vehicle registration fees, or state sales or use taxes, is not due and owing until the date the Budget is enacted, as specified. Provides that, notwithstanding any other provision of the Constitution, the State Controller is authorized to draw from the State Treasury the amount of funds necessary for the state to meet its outstanding obligations and to continue services at the same level as funded during the preceding fiscal year and to issue warrants, as specified.
(Died in Assembly Budget 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.
(Died in Assembly Revenue and Taxation Committee)
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.
(Died in Assembly Revenue and Taxation 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.
(Died in Assembly Revenue and Taxation Committee)
Miscellaneous
SB 40 (Johannessen-R) Smog impact fee
States legislative intent to repeal provisions of law concerning the smog impact fee if they are held to be unconstitutional by a final decision of a state or federal appellate court.
(Died in Senate Appropriations Committee)
SB 50* (Greene-D) School bonds: developer fees
Revises developer fee and mitigation procedures for school facility purposes. Establishes a Homebuyer Down Payment Assistance Program and a Rental Assistance Program in the amount of the applicable school facility fee on affordable housing developments.
Chapter 407, Statutes of 1998
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.
(Died in Senate Appropriations Committee)
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.
(Died in Senate Environmental Quality 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.
(Died on Senate Inactive File)
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.
(Died in Senate Appropriations Committee)
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.
(Died in Senate Appropriations Committee)
SB 1182* (Costa-D) Williamson Act: parcel tax
Specifies that any land and living improvements included in a Williamson Act contract, as specified in the bill, is to be exempt from any benefit assessment that does not directly benefit the land. Specifies that any per parcel special tax is to be levied at a reduced rate, if the tax is levied after the effective date of the bill. Instead of using the Williamson Act's method of assessing property values based on their agricultural use, county officials must assess land within a farmland security zone at a value not to exceed 65% of its value.
Chapter 353, Statutes of 1998
SB 1478 (Rainey-R) Taxation: burden of proof
Shifts the burden of proof from the taxpayer to the state's tax collecting agencies.
(Died in Senate Revenue and Taxation Committee)
SB 1520 (Kopp-I) Jury fees
Repeals a provision enacted last year as part of the Trial Court Funding Act, that makes a deposit of jury fees nonrefundable if the jury trial is waived or the case is settled without a jury trial after deposit of fees. Monies accrued from the nonrefundable fees are to be deposited into the Trial Court Trust Fund within the General Fund.
Chapter 1003, Statutes of 1998
SB 1584* (Senate Budget And Fiscal Review Committee) Vehicle license fee revenues
Makes clarifications to AB 1226 of 1997 which extended the eligibility period for the higher allocation formula for vehicle license fee revenue available to cities incorporated after January 1, 1987. Extends the eligibility period of an additional 2 years, as specified.
Chapter 321, Statutes of 1998
SB 1723* (Haynes-R) Vehicle license fee
Phases out vehicle license fees (VLF) over a five-year period and provides reimbursement to local governments for the loss of VLF revenues from the state's sales and use tax revenue.
(Died in Assembly Revenue and Taxation Committee)
Similar legislation was AB 1776* (McClintock-R), which died in Assembly Revenue and Taxation Committee.
SB 1739 (Kopp-I) Franchise Tax Board: executive officer
Allows a majority of the three-member State Franchise Tax Board to appoint an executive officer to a six-year term with the consent and approval of a majority of the Senate.
(Failed passage in Senate Revenue and Taxation Committee)
SB 1782* (Strom-Martin-D) Vehicle license fees: low-emission vehicles
Exempts from the Vehicle License Fee Law the incremental cost of purchasing an ultra-low emission vehicle.
Chapter 888, Statutes of 1998
SB 1862 (Dills-D) Keeper fees
Revises keeper fees from the existing level of no more than $75 for every eight hours worked to no more than $100 for every 8 hours worked. Raises the minimum rate keepers receive from 24 hours of work from $140 to $175. Raises the maximum rate keepers receive for preparing a not-found return from $21 to $25, and provides a $10 per diem for meals and mileage traveled.
Chapter 160, Statutes of 1998
SB 1998* (Hurtt-R) Vehicle license fees: reduction and local funding
Reduces the percentage rate of the vehicle license fee from 2% to 1% on January 1, 1999, and from 1% to 0.5% on January 1, 2002.
(Died in Senate Revenue and Taxation Committee)
SB 2001* (Hurtt-R) Vehicle license fee
Abolishes the vehicle license fee.
(Died in Senate Revenue and Taxation Committee)
SB 2134* (Burton-D) Cigarette tax: foreign sale cigarettes
Prohibits the sale of cigarettes in California that do not meet federal labeling requirements for cigarettes sold in the United States. Requires the State Board of Equalization to revoke the license of any distributor who fails to comply with the requirements.
Chapter 292, Statutes of 1998
SB 2174 (Rainey-R) State Board of Equalization: records
Requires the State Board of Equalization to adopt regulations to establish procedures and guidelines to access public records, and requires the board to report to the Legislature on the feasibility and cost of creating and maintaining a specified subject matter index of public records.
Chapter 1049, Statutes of 1998
SB 2230 (Senate Revenue And Taxation Committee) Cigarette and Tobacco Tax Law
Gives the State Board of Equalization authority to levy a tax on unlicensed cigarette distributors who illegally sell cigarettes. Adds a definition of wholesalers of tobacco products that is similar to the definition of cigarette wholesalers.
Chapter 420, Statutes of 1998
SB 2231 (Senate Revenue And Taxation Committee) Taxation: fuel taxes: hazardous waste
Makes various changes in the law concerning the 911 tax, hazardous substances tax law, diesel fuel, and hazardous waste disposal fees.
Chapter 350, Statutes of 1998
SB 2232 (Senate Revenue And Taxation Committee) Taxation
Allows the State Board of Equalization (BOE) to use deficiency determinations to recover erroneously granted refunds and allows the BOE to furnish specified information to state and federal agencies for enforcement purposes. Standardizes levy provisions and makes minor and technical changes to a number of taxes administered by the BOE (i.e., Use Fuel Tax Law, Diesel Fuel Tax Law, Motor Vehicle Fuel and License Tax Law [specifically trip permits]).
Chapter 609, Statutes of 1998
SB 2234* (Senate Revenue And Taxation Committee) Franchise Tax Board: tax administration
Amends the Cigarette and Tobacco Products Tax Law in order to minimize the potential that cigarettes originally intended for export are sold in California. Clarifies what information must be reported on employers in the Report of Wages under the Unemployment Insurance Code. Changes the method by which interest on overpayment of excess state disability insurance is calculated while insuring that taxpayers who have overpaid are identified as quickly as possible.
Vetoed by the Governor
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.
(Died in Senate Revenue and Taxation Committee)
SCA 19 (Mountjoy-R) Federal taxes
Creates the Federal Tax Fund in the State Treasury. Requires any person liable for any federal excise, income, or consumer tax to remit the tax to the State Treasurer for deposit.
(Failed passage in Senate Judiciary Committee)
SCA 26 (Hurtt-R) State finances: capital expenditures
Conditions the appropriation of funds to pay for principal and interest on debt for a single object or work or the appropriation of an equal additional amount of state funds for that fiscal year to be expended directly for capital expenditure purposes.
(Died in Senate Governmental Organization Committee)
SJR 23 (Haynes-R) United Nations: global taxation
Requests Congress of the United States to oppose any legislation permitting the United Nations or any agency established by the United Nations to levy taxes.
(Died in Senate Revenue and Taxation Committee)
AB 473 (Oller-R) Local government financing
Appropriates $147,000 to the State Controller for allocation to counties that do not contain incorporated cities according to the proportion of the population of all the qualifying counties that the population of each of these counties represents, in order to equalize funding to those counties without affecting revenue allocation to cities. These counties are Alpine, Mariposa, and Trinity.
Chapter 1028, Statutes of 1998
Similar legislation was AB 2400 (House-R), which failed passage in the Assembly Appropriations Committee.
AB 610 (Margett-R) Taxation: marijuana
Imposes a 10% marijuana distribution tax.
(Died 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)
AB 821 (Takasugi-R) Taxpayer bill of rights
Applies provisions in the 1996 federal Taxpayer Bill of Rights to taxes administered by the State Board of Equalization.
Chapter 612, Statutes of 1998
AB 911 (Knox-D) Electric surcharge and telephone users surcharge
Allows the State Board of Equalization (BOE) to require any person subject to the Energy Resources Surcharge Law or the Emergency Telephone Surcharge Law, except as provided, to place security for the collected surcharges with the BOE.
Chapter 649, Statutes of 1998
AB 1063 (Knox-D) Taxation: disclosure: charter cities
Allows disclosure of specified tax information on taxpayers with a business located within a charter city to the tax officials of that city, under specified conditions.
(Died in Senate Revenue and Taxation Committee)
AB 1155 (Kuehl-D) Estate taxes: Frank Capra estate
Allows the State Department of General Services to accept a parcel of property from the Frank Capra estate as payment of estate tax liability.
Vetoed by the Governor
AB 1614 (Lempert-D) California Internet Tax Freedom Act
Enacts the California Internet Tax Freedom Act to prohibit, with specified exceptions, the imposition, assessment, or attempt to collect a tax on (1) Internet access, (2) Online Computer Services, or the use of Internet access as any Online Computer Services (3) a bit or bandwidth tax, or (4) any discriminating tax on Online Computer Services or Internet access.
Chapter 351, Statutes of 1998
AB 1631 (Sweeney-D) Tax collection: burden of proof
Enacts the Taxpayers' Rights Protection Act of 1998. Includes provisions regarding (1) burden of proof, (2) expenditure information to taxpayers, (3) cash bonds, (4) interest on penalties, (5) deficiency payment requirements for State Board of Equalization, and (6) deficiency payment requirements for the State Employment Development Department.
(Died in Assembly Appropriations Committee)
AB 1666 (Alquist-D) Franchise Tax Board: child support
Specifies that all agencies of the state, or any of its political subdivisions, will be required to provide data to enforce liability for child or spousal support with respect to their employees, licensees, contractors, vendors, and that data is to be used by the State Franchise Tax Board for child support enforcement.
(Died in Assembly Judiciary Committee)
AB 1789 (Mazzoni-D) Historical property contracts: cancellation fee
Provides that in instances of a historical property contract, the cancellation fee will be based on the current market value of the property and be remitted to the county auditor for allocation as tax investment.
Chapter 636, Statutes of 1998
AB 1933 (Machado-D) Local taxes: parcel taxes
Makes various changes to the existing law regarding the procedures for levying special purpose parcel taxes on agricultural and timber properties. Provides a three-year limitation on activities challenging the validity of a special purpose parcel tax levied by a local agency. Increases the period that a parcel owner has to notify a jurisdiction imposing a parcel tax if the parcel number is incorrect from 30 to 90 days.
Chapter 342, Statutes of 1998
AB 1939 (Woods-R) Taxation: payments: interest
Requires that interest under the State Board of Equalization's tax and fee programs be computed on a daily basis rather than monthly.
(Died in Assembly Appropriation Committee)
AB 2075* (Granlund-R) Cigarette taxes
Requires the State Board of Equalization to grant a refund or credit to a distributor of other tobacco products in the same manner as is granted to distributors of cigarettes.
Chapter 815, Statutes of 1998
AB 2085* (Ortiz-D) Diesel fuel tax
Provides for the taxation of experimental fuel at a rate of $0.06 per gallon, except that for the first 24 months, experimental fuel is exempt from the law.
(Died in Assembly Appropriations Committee)
AB 2144* (Bowen-D) Cigarette taxes
Increases the cigarette tax by 25 mills per cigarette or $0.50 per package of 20 cigarettes for distribution.
(Failed passage in Assembly Revenue and Taxation Committee)
AB 2208 (Floyd-D) Cigarette taxes: refunds
Allows tobacco products distributors to claim a refund of tobacco taxes paid on distributions made after January 1, 1991, when the accounts were later charged-off as worthless.
(Died in Assembly Appropriations Committee)
AB 2249 (Poochigian-R) Estate taxes
Conforms the interest rate charged for underpayments and nonpayment on estate taxes with federal law and allows installment payments, as allowed under federal law.
(Died in Assembly Appropriations Committee)
AB 2250 (Poochigian-R) State Board of Equalization: taxpayer fees and expenses
Provides an oral hearing before the State Board of Equalization (BOE) for taxpayers who file a claim for reimbursement of fees and expenses incurred during a tax assessment/refund hearing before the BOE.
(Died in Assembly Appropriations Committee)
AB 2414* (Hertzberg-D) Insurance taxes
Allows insurance companies to claim the existing income and corporation tax credit for qualified deposits made into a community development financial institution.
(Died in Senate Appropriations Committee)
AB 2450 (Oller-R) Liens: expungement
Allows the State Franchise Tax Board (FTB) to file a notice of expungement directing the Secretary of State to remove from its files and destroy the original certificate or nature of state tax lien when FTB determines that the lien was filed in error, as specified.
(Died in Assembly Revenue and Taxation Committee)
AB 2581 (Cardoza-D) Commercial vehicle fees exemption
Exempts any disabled veteran or any Congressional Medal of Honor recipient from paying weight fees for a commercial vehicle.
Chapter 482, Statutes of 1998
AB 2790 (Ortiz-D) Local vehicle fee
Repeals the sunset date of January 1, 2003, on the law which imposes an annual $1 per vehicle regulation fee surcharge in any county adopting a specified resolution for the support of local programs to provide estimated mobile and fixed location fingerprint identification systems and, instead, provides that the additional fee is to remain in effect only for a period of five years from the date the actual collection starts.
Chapter 921, Statutes of 1998
AB 2797* (Cardoza-D) Vehicle license fee
Permanently reduces the vehicle license fee of each vehicle by 25% and offsets that amount by a general appropriation to cities and counties.
Chapter 322, Statutes of 1998
AB 2808 (Assembly Revenue And Taxation Committee) Taxation: report
Requires the Legislative Analyst, in consultation with the State Franchise Tax Board (FTB), the State Board of Equalization (BOE), and the State Department of Finance, before every other regular session of the Legislature, to report to the Legislature on the effect of tax increases, reductions, exemptions, credits, deductions, exclusions, special accounting treatments, special valuations, special rates, and special methods of reporting relating to various taxes and fees whose effect is projected to increase or decrease state revenues by $10 million or more on a full-year basis, and requires the FTB and the BOE to prepare an analysis of each bill that has that effect, as specified.
(Died in Assembly Revenue and Taxation Committee)
AJR 77 (Granlund-R) Forest Tax Relief Act
Requires the President and Congress of the United States to enact the "Forest Tax Relief Act," which repeals legislation authorizing the U.S. Forest Service to implement a pilot program charging visitors of the Angeles, Cleveland, Los Padres, and San Bernardino national forests specified daily and yearly fees to park on national forest lands.
