Significant Revenue and Taxation legislation which was enacted in 2010 included SB 401 (Wolk) conforming California’s state personal income tax and corporation tax laws to federal tax laws set forth in the Internal Revenue Code as of January 1, 2009; SB 1076 (Price) creating an Arts Council Fund income tax checkoff; AB 183 (Caballero) providing a tax credit against the personal income tax liability of taxpayers who are first-time homebuyers or taxpayers who purchase a home that has never been occupied; SB 858 (Senate Budget and Fiscal Review Committee) enacting the Revenue and Taxation Budget trailer bill; AB 347 (Bass) providing for an income and corporation tax deduction for contributions made for the relief of victims of the earthquake in Haiti; AB 658 (Hayashi) creating the California Police Activities League Fund income tax checkoff; AB 1088 (Fletcher) creating the California Veterans Home Fund income tax checkoff; AB 1530 (Skinner) allowing the Franchise Tax Board to collect restitution orders in the same way that it collects tax liabilities; AB 1662 (Portantino) providing disaster tax relief for victims of the wildfires that occurred in the counties of Los Angeles and Monterey in 2009, and the severe winter storms that occurred in the counties of Calaveras, Imperial, Los Angeles, Orange, Riverside, Kern, Placer, San Bernardino, San Francisco, and Siskiyou in 2010; AB 1690 (Chesbro) providing disaster tax relief for the earthquake that occurred in Humboldt County on January 9, 2010; AB 1983 (Torrico) creating the Safely Surrendered Baby income tax checkoff; AB 2136 (V. Manuel Perez) providing disaster tax relief for the earthquake that occurred in Imperial County on April 4, 2010; and AB 2671 (Cook) exempting certain corporations and limited liability companies owned solely by a deployed member of the United States Armed Forces from the $800 annual tax and minimum franchise tax, and applies to taxable years beginning before January 1, 2018.
Vetoed Revenue and Taxation legislation included SB 1272 (Wolk) which would have provided that a new tax credit, enacted by a bill introduced on or after January 1, 2011, shall be operative for a period of seven years and shall include specified goals, objectives, and purposes, as well as other detailed information relating to the credit’s effectiveness; AB 1718 (Blumenfield) which would have established the County Deferred Property Tax Program for Senior Citizens and Disabled Citizens; AB 2017 (Hall) which would have created the California Youth Leadership Fund tax checkoff; AB 2458 (Saldana) which would have extended the due date for the payment of the limited liability company fee underpayment penalty imposed on “small businesses”, as defined, and would have required the provision to be applied to penalties imposed on or after January 1, 2011, and before January 1, 2016; and AB 2666 (Skinner) which would have required the Franchise Tax Board to compile information on corporation tax expenditures claimed and reported by publicly-traded companies, and would have required the State Chief Information Officer to publish this information on the Reporting Transparency in Government Internet Web site.
In the November 2010 General Election, the voters defeated Proposition 25 which would have repealed 2008-09 and 2009-10 legislation that lowered businesses tax liability. Also the voters passed Proposition 26 requiring that certain state and local fees be approved by a 2/3 vote. Lastly, the voters defeated Proposition 21 which would have established an $18 annual vehicle license surcharge to help fund state parks and wildlife programs.
