CaliforniaTaxation: tax expenditures: Legislative Analyst's Office: assessment, report, and recommendation.
What it does
Existing law, including, but not limited to, property tax law, the Sales and Use Tax Law, the Personal Income Tax Law, the Corporation Tax Law, the Motor Vehicle Fuel Tax Law, the law governing the taxation of insurers, the Use Fuel Tax Law, and the Diesel Fuel Tax Law, provides for tax expenditures, including exemptions, deductions, exclusions, and credits against the taxes imposed by those laws.
More detail
The bill would require the Legislative Analyst's Office (LAO) to comprehensively assess the major tax expenditures, as defined, of the state, write and publish a report on each major tax expenditure, and make a recommendation to the Legislature based on each report. In this regard, the bill would require LAO, as part of the comprehensive assessments, to identify any savings that the Legislature can realize by reducing or limiting the major tax expenditures, and require them to consider certain criteria when finalizing each report, including the extent to which the major tax expenditure is a cost-effective use of resources compared to other options to address the same purpose, intent, or goal.
The bill would require LAO to complete and publish on its internet website its first report on a major tax expenditure by January 1, 2028, and to complete and publish on its internet website each subsequent report on a major tax expenditure annually in a sequence determined by the office thereafter until the fifth and final report is submitted on January 1, 2032. The bill would require the Senate Committee on Revenue and Taxation and the Assembly Committee on Revenue and Taxation, to hold a joint public hearing on these reports by each August 15 of the second year of the legislative session, as specified. To the extent that LAO needs access to taxpayer data and information, the bill would require the Franchise Tax Board, the California Department of Tax and Fee Administration, and the Employment Development Department to ensure that relevant anonymized taxpayer data is made available and ensure that appropriate levels of data security and privacy protections are in place for transferred or sensitive data. The bill would repeal its provisions on January 1, 2033.
The bill would make findings and declarations relating to these provisions.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 20Chaptered by Secretary of State. Chapter 433, Statutes of 2026.Latest
- Sep 20Approved by the Governor Gavin Newsom.Became Law
- Aug 28Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 24Assembly amendments concurred in. (Ayes 30. Noes 10. Page 5691.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB1349 Gonzalez et al. Concurrence. Result: pass.Upper
- Aug 20In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 1349 Gonzalez Senate Third Reading By Connolly. Result: pass.Lower
- Aug 20Read third time. Passed. (Ayes 57. Noes 18. Page 6303.) Ordered to the Senate.Passed Assembly
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Lower
- Aug 13From committee: Do pass. (Ayes 11. Noes 4.) (August 13).Minor
- Aug 13Coauthors revised.
- Aug 13Assembly Rule 63 suspended.
- Jul 1July 1 set for first hearing. Placed on suspense file.
- Jun 17Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 16From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (June 15).Major
- Jun 15
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 8From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.Major
- May 26Referred to Com. on REV. & TAX.Minor
- May 20In Assembly. Read first time. Held at Desk.Minor
- May 19Read third time. Passed. (Ayes 30. Noes 8. Page 4350.) Ordered to the Assembly.Passed Senate
- Vote recorded 3rd Reading SB1349 Gonzalez et al. Result: pass.Upper
- May 14Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- May 14From committee: Do pass. (Ayes 5. Noes 2. Page 4274.) (May 14).Minor
- May 8Set for hearing May 14.
- May 4May 4 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 28From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.Major
- Apr 24Set for hearing May 4.
- Apr 16Re-referred to Com. on APPR.Minor
- Apr 16Withdrawn from committee.Major
- Apr 14Read second time and amended. Re-referred to Com. on G.O.Major
- Apr 13From committee: Do pass as amended and re-refer to Com. on G.O. (Ayes 4. Noes 1. Page 3795.) (April 8).Major
- Apr 8
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Governmental Organization]. Result: pass.Upper
- Apr 6From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.Major
- Mar 25Set for hearing April 8.
- Mar 4Referred to Coms. on REV. & TAX. and G.O.Minor
- Feb 23Read first time.Minor
- Feb 23From printer. May be acted upon on or after March 23.
- Feb 20Introduced. To Com. on RLS. for assignment. To print.Introduced