Proposed Tax and Fee Increases
By Subject
SB 0921 (Kuehl) Imposes Huge Tax Increases to Fund Single Payor Health Care System.States legislative intent to increase taxes on unearned income, tobacco, alcoholic beverages, employers and employees to fund a single-payer health care system.
SB 0726 (Romero) Local Alcoholic Beverages (Tippler’s) Tax Authorization.Amended on April 2 to authorize a county board of supervisors to impose a tax, not to exceed 5 percent, on the sale of alcoholic beverages for consumption on the premises.
AB 0216 (Chan) New Fee on Alcoholic Beverages of up to $100 million.Requires the Department of Alcoholic Beverage Control to impose a penny-a-drink “Sinclair fee” on adult beverages to finance youth alcoholic prevention and treatment centers. First years revenues generated are capped at $100 million or the total amount of retail sales generated by underage alcoholic consumption. Beer manufacturers producing 60,000 barrels or less are exempt from the fee. Proceeds are earmarked for youth alcohol prevention and recovery programs.
SBX1 005 (Romero) Tipplers Tax: 5 Cents per Drink of Alcohlic Beverage.Imposes a “fee,” equal to 5 cents a drink, on wholesale distributors of alcoholic beverages. The bill is scored by Legislative Counsel as a majority-vote bill, although it is obviously a tax increase.
SB 0108 (Romero) Tipplers Tax: 5 Cents per Drink of Alcohlic Beverage.Increases taxes on alcoholic beverages by the equivalent of $.05 a drink, to reimburse government expenses increased for medical expenses for alcohol related emergencies.
AB 1226 (Mathews) Taxation of Credit Unions: Study Requested.Requires the Legislative Analyst to study the feasibility of imposing a tax (called a “fee” in the bill) on state and federally chartered credit unions to fund public education.
ACA 0001 (Longville) Reduces Vote to Pass State Budget to Majority .Changes the vote requirement to pass the state budget from two-thirds to a majority.
SB 0103 (Alpert) Sales Tax Nexus. Expansion: Triggered by Agent Servicing Property.SB 103 appears much broader than AB 2412 (Migden) of 2000 that was vetoed by Governor Davis. SB 103 expands sales tax nexus by providing that if an out-of-state retailer has an agent servicing or repairing property in this state, the retailer is “doing business in California.” The bill also proposes to use a “unitary relationship” to bring an out-of-state corporation under the state tax laws. It provides that a retailer is “doing business in this state” if the retailer has a “substantial ownership interest” in a retailer maintaining sales locations in California or vice versa and the retailer sells a similar line of products or uses substantially the same business name or facilities or employees of the related retailer. The bill requires retailers “doing business in this state,” including the above, to collect sales taxes on Internet or other electronic or fax sales.
Sales Tax Simplification: LAO Option.In her February 19 analysis of the governor’s plans, the LAO recommended that the Legislature gather all information on the sales tax simplification effort being pursued by a number of states. Besides measuring the pros and cons of joining this effort, the state should be poised to take advantage of any action by Congress to grant states authority to require that sales and use tax be collected from Californians purchasing products over the Internet. The national moratorium on new or discriminatory taxation on electronic commerce expires next fall. The U.S. Supreme Court has ruled that companies without physical presence in California cannot be required to collect the state’s tax on Californians’ purchases from remote sites. California has not participated in the simplification project that would seek uniform tax rates to make it easier for sellers to collect the tax and forward it to the state of residence.
SB 0157 (Bowen) Simplified Sales Tax Project: Authorizes California Participation.Establishes a legislatively controlled board to represent the state at meetings of the Simplified Sales Tax Project. The bill authorizes the board to enter into an agreement if it meets certain conditions. However, the bill provides that the state’s adoption of the agreement does not invalidate any provision of law. A study by the University of Tennessee estimated that California could have raised an additional $1.75 billion in 2001 if all on-line purchases were taxable.
AB 0680 (Liu) Community College Fees: Added $10 per Unit for College Grads.Requires community college students with bachelor’s degree pay an additional $10 per unit fee.
CSU Fee Increases (Undergrads up $394).Governor's January 2003 proposal: The governor’s budget contemplates that the California State University Board of Trustees will increase student fees by $258.5 million to offset state general fund reductions. If approved, this will increase undergraduate fees by 25 percent (by $394 to a total $1,968). This fee increase is on top of the $144 to $288 fee increase in December.
UC Fee Increases (Undergrads up $795)Governor's January 2003 proposal: The University of California Board of Regents will consider increasing student fees by 35 percent later this spring in response to proposed state general fund reductions. According to the university, the additional fee increases in 2003-04 will be $795 for resident undergraduates (to $4,629) and $855 for resident graduate students (to $4,869). These increased fees are in addition to the $405 annual fee voted one month ago.
UC, CSU Fees: LAO Option.The analyst recommends fee increases at the University of California and California State University that are 40 percent less than the governor’s budget assumes. Also, the analyst called for an explicit fee policy requiring annual adjustments that are gradual and predictable. The governor’s proposed community college fee increase is reasonable, and actually could be increased by $1 per unit so needy students could maximize federal financial aid.
SB 0020 (Sher) Unspecified Hazardous Waste Tax: Intent to Impose.States legislative intent to ensure that funds are available to assist cities, counties, and recyclers of electronic wastes in developing programs to safely collect and recycle the hazardous materials contained in electronic wastes, and to promote the refurbishment and reuse of electronic equipment for use by schools and nonprofit agencies.
Court Fee Increases.Governor's January 2003 proposal to: Increase court filing fees to provide $37 million a year to offset general fund support. A security fee of $20 per court filing would be imposed, and trial motion fees are proposed to be increased by $10 (from $23 to $33). An increase in the appellate filing fee from $265 to $630 will generate $2.1 million more.
SB 0565 (Florez) Delinted Cottonseed Bale Increase from $4 to $6 per Bale.Increases the assessment for delinted cottonseed -- for planting purposes under specified provisions relating to the San Joaquin Valley cotton district -- from no more then $4 per bale to up to $6 per bale.
AB 0578 (Leno) Electronic Recording Fee: $1 per Document.Authorizes counties to impose a $1 fee per document for recording documents electronically.
Fee for Reclaiming Unclaimed Property (to Get $3 Million).Governor's January 2003 proposal: Charge a processing fee for unclaimed property refunds, to generate $3 million.
AB 0394 (Montanez) Fee Increases: Various.Increases a number of fees. For example, a $125 fee would be imposed for “levying” on a safe deposit box.
SB 0231 (Murray) Genetic Disease Testing Fee Increase.Increases the genetic disease testing fee by 25 cents.
Hunting and Fishing License Fee Increases.Governor's January 2003 proposal to: Increase hunting and fishing licenses by $4 million. Resident sport fishing licenses would increase by $2 (to $31.25) and resident hunting licenses would increase by $1.75 (to $31.25). Fees for non-residential and commercial sport fishing and hunting also would increase.
AB 0099 (La Seur) Laboratory Analysis Fee of up to $25,000.Authorizes the laboratory analysis fee, not to exceed $25,000, in connection with a conviction of certain technology-related offenses.
Medical License Fee.Governor's January 2003 proposal: Impose a surcharge on various medical licenses required under the family physician training program, to generate $4.5 million.
New Earthquake Premiums Fee.Governor's January 2003 proposal: Impose an earthquake premiums fee to address Seismic Safety Commission revenue needs, to generate $1.3 million.
New Local Library Fee for Obtaining Books from Other Libraries.Governor's January 2003 proposal: Local libraries would be authorized to impose fees to cover costs relating to obtaining certain books, to raise $12 million. Libraries could charge $1 for a book a reader obtained outside their home county and $5 for a book that has to be sent from another county to the reader’s home county. Some observers said it may be cheaper to buy a used book from Amazon.com rather than pay a $5 borrowing fee.
New State Library Fees to Raise $3 Million.Governor's January 2003 proposal: Authorize the state library to impose a user fee (through a state library card, for example) to raise $3 million.
Park Fee Increases.Governor's January 2003 proposal to: Increase fees for various state park services, beginning January 1, 2003. This is estimated to generate $20 million.
Pesticide Tax: Mill Assessment Increase by $7.5 Million.Governor's Janaury 2003 proposal: In the Department of Pesticide Regulation, the mill assessment would be increased by $7.5 million by shifting all support for the department away from the state general fund.
Political Reform Audit Fee Increase.Governor's January 2003 proposal: Shift $1.359 million of the cost of political reform audits by the Franchise Tax Board from the general fund to a fee-based allocation. The budget is silent on the amount of the fee necessary.
Tax Practitioner Fee: LAO Option.The Legislative Analyst recommended that the FTB charge tax practitioners, possibly as an annual fee, for the use of a hotline maintained and staffed by the FTB at the expense of taxpayers in general, which would save taxpayers about $1 million a year. The FTB should require electronic filing for tax practitioners for all those filling 50 or more returns. The current requirement is 100 or more returns.
Veterans' Home Fee Increase.Governor's January 2003 proposal: Increase the member fees in residential care units of veterans’ homes, to raise $1.15 million.
AB 0602 (Koretz) New Bullet Tax: 10 Cents a Bullet.Imposes a bullet tax (called a fee) of 10 cents a bullet. Funds are earmarked for trauma centers. Legislative counsel has keyed this bill a majority vote bill.
SB 0035 (Scott) New Firearms Fee: $1 per Transfer.Authorizes the Department of Justice to impose a $1 fee on the purchase or transfer of each firearm.
AB 0050 (Koretz) Rifle Registration Tax of $25.Imposes a registration fee up to $25 for registration of a .50 BMG rifle.
FTB Non-Filer Compliance Program Expansion: LAO Option.The LAO recommends that the state get more bang for the buck from the FTB’s integrated non-filer compliance (INC) program by sending letters to those with a liability of at least $100 or more. The current threshold is $200 in owed taxes, and such an expansion would hit an additional 120,000 non-filers, producing $4.4 million more in revenue for an additional cost of $800,000.
Tax Practitioner Fee: LAO Option.The Legislative Analyst recommended that the FTB charge tax practitioners, possibly as an annual fee, for the use of a hotline maintained and staffed by the FTB at the expense of taxpayers in general, which would save taxpayers about $1 million a year. The FTB should require electronic filing for tax practitioners for all those filling 50 or more returns. The current requirement is 100 or more returns.
U.S. Treasury Offset Program: Should State Join?: LAO Option.The LAO suggested that the FTB take another look at whether California should join the existing U.S. Treasury Offset Program, which would allow the Internal Revenue Service to deduct from federal tax refunds taxes owed to California. Some 25 states participate in the reciprocal program. In the past, the FTB has concluded the program is not cost-effective, but the analyst said it could allow the state to reduce the amount spent on tax collections and increase revenues.
SB 0541 (Torlakson) Increase in Gas Tax by Rate of Inflation.Increases the gas tax each year by the rate of inflation. Projected cost to taxpayers is $100 million, assuming 3% inflation.
SB 0921 (Kuehl) Imposes Huge Tax Increases to Fund Single Payor Health Care System.States legislative intent to increase taxes on unearned income, tobacco, alcoholic beverages, employers and employees to fund a single-payer health care system.
AB 1396 (Simitian) Long-Term Care Bed Tax: $3 per Bed in Long-Term Care Facilities.Imposes a $3-per-bed tax (called a “fee”) on long-term care facilities. Funds would go to local ombudsman programs.
SB 0413 (Speier) Tax Increase on Health Care Service Plans.Increases the tax (called a fee) the Department of Aging imposes on health care service plans with Medicare-eligible beneficiaries from a range of 70 cents to a dollar to not more than $1.20.
AB 0372 (Kehoe) Tax on Health Care Plans of Unknown Amount to be Set by Bureaucrats.Requires the Director of Managed Care and Commissioner of Insurance to impose an annual fee (Legislative Counsel says it is a “tax” for Proposition 13 vote requirement) on health care service plans. Funds would be earmarked for poison control centers.
SB 0002 (Speier) Universal Health Care: Mandate for Employers.Declares legislative intent to develop an employer-based health care system to provide health insurance to all California employees.
AB 1538 (Cohn) Unspecified Large Tax Increase to Provide Health Coverage to All Californians.States legislative intent to provide health coverage to all Californians, which would include public support through unspecified “tax policies.”
SB 0566 (Scott) Local Sales Tax Increases by Initiative.Authorizes the adoption of a local sales tax increase by initiative.
Personal Income Tax Rate Increase for Upper Income Taxpayers: Ca. Teachers Association.The state’s largest union representing school teachers has voted to explore an initiative campaign to raise taxes – perhaps including property taxes paid by businesses. The Los Angeles Times reported that statewide officials of the California Teachers Association voted in Los Angeles on February 2 to conduct focus groups and engage in more extensive polling to determine what kind of taxes to include in a proposal that would dedicate added revenue to schools. A unanimous voice vote of more than 500 delegates authorized union leadership to begin “research and development of possible 2004 initiatives to enhance school funding,” The Times reported. John Hein, CTA political action director, said polling last month showed voters would be willing to increase education spending by boosting the sales tax, the corporate property tax or the upper brackets of the personal income tax. Residential property taxes would not be touched, Mr. Hein told The Times.
Sales Tax Increase Initiative: Ca. Teachers Association.The state’s largest union representing school teachers has voted to explore an initiative campaign to raise taxes – perhaps including property taxes paid by businesses. The Los Angeles Times reported that statewide officials of the California Teachers Association voted in Los Angeles on February 2 to conduct focus groups and engage in more extensive polling to determine what kind of taxes to include in a proposal that would dedicate added revenue to schools. A unanimous voice vote of more than 500 delegates authorized union leadership to begin “research and development of possible 2004 initiatives to enhance school funding,” The Times reported. John Hein, CTA political action director, said polling last month showed voters would be willing to increase education spending by boosting the sales tax, the corporate property tax or the upper brackets of the personal income tax. Residential property taxes would not be touched, Mr. Hein told The Times.
MIC Elimination. State Treasurer.State Treasurer Phil Angelides has urged the Legislature to consider more tax increases to offset some of the $5.2 billion in reduced education spending proposed by Governor Davis, including: elimination of the manufacturers investment tax credit.
MIC Elimination: LAO Option.Reported in Caltaxletter March14, Mark Ibele, from the Legislative Analyst’s Office, presented at the traditional Senate Revenue and Taxaton Committee's tax expenditure meeting several recommendations, including eliminating the MIC.
AB 0651 (Corbett) MIC: New Qualification Proposed.Disallows the manufacturers’ investment sales tax exemption and tax credit unless the business is certified as a participant in the Career Technical Education Campaign.
ABX1 016 (Goldberg) Mortgage Interest Deduction: Repeal for Upper Income Taxpayers.Decreases the amount of residential interest that can be deducted to $500,000 (joint) and $250,000 (single).
Mortgage Interest Deduction: Restricts up to $500,000: LAO Option.The LAO recommends restricting the mortgage interest deduction. Restricting the deduction to interest on mortgages up to $500,000 and first homes only would produce $220 million a year in additional revenues.
SB 0981 (Soto) Oil Refinery Tax: 30 cents per Barrel on Crude Oil.Imposes a 30-cents per-barrel tax on crude oil refined into transportation fuel. Although the bill imposes a tax, it is keyed as a majority-vote bill.
ACA 0004 (Simitian) Reduces Vote Requirement for School Parcel Taxes to 55 Percent.Reduces the voter approval requirement for parcel property taxes levied by school districts from two-thirds to 55 percent.
State Parcel Tax for Trauma Care: 3 cents per Square Foot.Senator Romero, chair of the Senate Health Services Subcommittee on California’s Emergency Medical Services, has suggested that Los Angeles County’s Measure B could be pursued statewide as a parcel tax to pay for hospital trauma centers and emergency rooms, according to the Sacramento Bee (February 13). Los Angeles County voters last November approved higher property taxes (3 cents per square foot) to provide $168 million a year for the county’s emergency medical services. Last year, cities, counties and law enforcement considered a statewide ballot campaign to hike the sales tax by 0.25 percent to provide $300 million a year for hospitals. That plan fizzled after backers polled potential voters and found support lacking, Jan Emerson of the California Healthcare Association told The Bee.
SB 0921 (Kuehl) Imposes Huge Tax Increases to Fund Single Payor Health Care System.States legislative intent to increase taxes on unearned income, tobacco, alcoholic beverages, employers and employees to fund a single-payer health care system.
AB 0848 (Nation) Income Tax Increase by Federal Reduction Amounts.Increases state income taxes in an amount equal to the reduction in federal tax liability.
Personal Income Tax Rate Increase by Adding 10% and 11% Rates: Ca. Federation of Teachers.The California Federation of Teachers has suggested six revenue-raising measure, including: higher (10 percent and 11 percent) personal income tax brackets.
Personal Income Tax Rate Increase by Adding 10% and 11% Rates: Governor.Governor's January 2003 proposal to: add 10 percent and 11 percent brackets to raise $2.58 billion. They would affect those with adjusted gross incomes of at least $136,115 for single filers and $272,230 for joint filers. The current top rate is 9.3 percent. Governor Davis said the tax increase will be retroactive, applying the higher rates to income earned in 2003 prior to the passage of legislation increasing the rates.
AB 0004 (Chan) Personal Income Tax Rate Increase for Upper Income Taxpayers.Adds provisions to add 10 percent and 11 percent personal income tax rates. It also increases the alternative minimum tax rate to 8.5 percent.
Personal Income Tax Rate Increase for Upper Income Taxpayers: Ca. Teachers Association.The state’s largest union representing school teachers has voted to explore an initiative campaign to raise taxes – perhaps including property taxes paid by businesses. The Los Angeles Times reported that statewide officials of the California Teachers Association voted in Los Angeles on February 2 to conduct focus groups and engage in more extensive polling to determine what kind of taxes to include in a proposal that would dedicate added revenue to schools. A unanimous voice vote of more than 500 delegates authorized union leadership to begin “research and development of possible 2004 initiatives to enhance school funding,” The Times reported. John Hein, CTA political action director, said polling last month showed voters would be willing to increase education spending by boosting the sales tax, the corporate property tax or the upper brackets of the personal income tax. Residential property taxes would not be touched, Mr. Hein told The Times.
AB 0992 (Ridley-Thomas) Ammo Tax: 10 cents per Bullet.Imposes a 10 cents-per-bullet tax on ammunition sold to consumers, to fund trauma centers.
AB 1688 (Goldberg) Car Wash Registration Fee.Requires employers of car washes to register with the labor commission and pay a registration fee.
SBX1 006 (S. Budget Cmte.) CARB Fee Increase by $10 Million.Authorizes the State Air Resources Board (CARB) to establish a new fee schedule and eliminates the $3 million annual cap on stationary source fees. It is estimated to raise $10 million.
CARB Fee Increase: LAO Option.In her February 19 analysis of the governor’s plans, the LAO offered several tax and fee options, including fees to cover Air Resources Board stationary sources program activities.
AB 0698 (Lieber) Dry Cleaner PCE Tax: $10 per Gallon.Imposes a tax of $10 per gallon on PCE purchased by a dry cleaning facility.
Environmental Groups Suggest More Fees.Thirty-five groups, described as pro-environment or non-profit, are calling for higher permit fees for those who pollute the air and water and log forests, more fees on farm pesticides, and an elimination of the manufacturers investment tax credit (MIC). The suggestions are in the third annual “Green Watchdog Report,” which includes the California League of Conservation Voters and the California Tax Reform Association, which usually lobbies on behalf of state employee unions’ interests.
AB 1699 (Assembly Enviro Safety & Toxics) Fluorescent Lamp Tax: 5 cents per Lamp Sold.Imposes a $.05 recylcing fee on the sale of fluorescent lamps to fund the Fluorescent Lamp Recycling program.
SB 0557 (Kuehl) Imposes Timber Restoration Tax: 0.5 percent on timber products.Amended April 7 to impose a new 0.5 percent sales tax on lumber and related products to fund, as the restoration of the environment and habitat related to the effects of timber harvesting, protection of forested watersheds, and assistance to timber industry workers.
AB 1690 (Leno) Local Income Tax Authorization.Authorizes cities and counties that form a fire protection finance agency to impose a local income tax (amended April 1 to broaden its coverage to include funding for police as well as fire personnel). The bill would allow a city or county to seek majority-voter approval of the tax. If voters approved, cities would be able to collect an income tax up to 8 percent of state tax liability. Counties would be limited to a 2 percent tax.
AB 1396 (Simitian) Long-Term Care Bed Tax: $3 per Bed in Long-Term Care Facilities.Imposes a $3-per-bed tax (called a “fee”) on long-term care facilities. Funds would go to local ombudsman programs.
SB 0511 (Figueroa) Mercury Lamp Fee: Amount to be Set by Bureaucrats.Requires mercury lamp manufacturers to pay a fee to be established by the Department of Toxic Substances Control.
AB 0204 (Nation) Motor Vehicle Fees: $4 more in Bay Area.Authorizes the State Coastal Conservancy to request the Department of Motor Vehicles to collect an additional $4 motor vehicle license fee, in specified Bay Area counties for Conservancy spending, if three Bay Area counties elect to participate.
AB 0998 (Lowenthal) New Perchloroethylene Tax: $3 per Gallon.Imposes a $3-per-gallon tax on perchloroethylene.
AB 0854 (Koretz) New Perchloroethylene Tax: $3 per Gallon.Imposes a $3-per-gallon tax on perchloroethylene.
Nursing Home Provider Fee: LAO Option.In her February 19 analysis of the governor’s plans, the LAO offered several tax and fee options, a provider-specific fee on nursing homes to fund rate adjustments for long-term care, amounting to $39.6 million in the budget year, offsetting general fund costs.
AB 0302 () PBDE Tax of an Unspecified Amount.Imposes a tax (called a fee) at an unspecified rate on every gallon of PBDE sold in a single transaction where two or more gallons are sold. PBDE is polybrominated biphenyl ether.
SB 0334 (Romero) San Gabriel Basin Annual Pumping Right Assessment Extension.Extends the repeal date of the San Gabriel Basin Water Quality Authority annual pumping right assessment from July 1, 2005 to July 1, 2010, and reduces the assessment from an amount not to exceed $13 per acre-foot to an amount that does not exceed $10 per acre foot.
ABX1 010 (Oropeza) Stormwater and Waste Discharge Permit Fee Increase by $13 million.As described by the California Building Industry Association (CBIA) AB 10X is “legislation that will, among other things, impose a limitless fee on construction stormwater permits issued by the state.
SB 0020 (Sher) Unspecified Hazardous Waste Tax: Intent to Impose.States legislative intent to ensure that funds are available to assist cities, counties, and recyclers of electronic wastes in developing programs to safely collect and recycle the hazardous materials contained in electronic wastes, and to promote the refurbishment and reuse of electronic equipment for use by schools and nonprofit agencies.
SB 0533 (Romero) Unspecified New Pesticide Tax: Set by Bureaucrats.Authorizes county agricultural commissioners to impose a new pesticide fee of an unspecified amount.
Water Rights Fee Increases: LAO Option.Legislative Analyst – $7.2 million. In her February 19 analysis of the governor’s plans, the LAO offered several tax and fee options, including fees on applicants for water rights and establish ongoing fees on all water rights holders.
SB 0400 (Florez) Sales Tax Expansion to Undefined "Specialized" Services: Florez.Extends the sales tax to include undefined “specialized services.” The bill specifically exempts health services, educational services, and services to a dependent child or dependent adult.
Sales Tax Expansion to Legal and Accounting Services: State Treasurer.State Treasurer Phil Angelides has urged the Legislature to consider more tax increases to offset some of the $5.2 billion in reduced education spending proposed by Governor Davis, including: expanding the sales taxes to services such as legal and accounting fees.
Sales Tax Rate: Increase by 1 Percent.In his 2002-03 budget summary, the Governor proposed to increase the sales tax rate by 1 percent, to raise $4.584 billion.
SB 0400 (Florez) Sales Tax Expansion to Undefined "Specialized" Services: Florez.Extends the sales tax to include undefined “specialized services.” The bill specifically exempts health services, educational services, and services to a dependent child or dependent adult.
Sales Tax Expansion to Legal and Accounting Services: State Treasurer.State Treasurer Phil Angelides has urged the Legislature to consider more tax increases to offset some of the $5.2 billion in reduced education spending proposed by Governor Davis, including: expanding the sales taxes to services such as legal and accounting fees.
Sales Tax Expansion to Services: Comm. On Tax Policy in New Economy.On February 3, the Governor asked the Commission on Tax Policy in the New Economy to submit a report on fiscal restructuring with recommendations by the end of April. Several legislators expressed an interest in expanding the sales tax to other services and a split roll property tax reassessment: Sales Tax Expansion. Several legislators expressed an interest in extending the sales tax to services. Assembly Member Jackie Goldberg said, “I urge the commission to look at taxing services,” and she targeted legal and management services in particular. Assembly Member John Dutra said the State Board of Equalization has provided revenue estimates if the sales tax were to be extended to 36 services. At a 6 percent rate, the tax would generate $6.6 billion, he said. Legal services would produce $1 billion of the total. Gil Cedillo, chair of the Senate Revenue and Taxation Committee, said there might be six or so services that might be good candidates for taxation. He said it was time for services to pay their fair share. A split roll was also deliberated.
Sales Tax on Selected Services: LAO Option.In her February 19 analysis of the governor’s plans, the LAO proposed several tax proposals, including expanding the sales and use tax (SUT) base to services. Levying the state’s SUT on “certain entertainment activities – such as admission fees, private club memberships and cable television – could result in additional revenues in the mid-to-high hundreds of millions of dollars,” the report said.
SB 0157 (Bowen) Simplified Sales Tax Project: Authorizes California Participation.Establishes a legislatively controlled board to represent the state at meetings of the Simplified Sales Tax Project. The bill authorizes the board to enter into an agreement if it meets certain conditions. However, the bill provides that the state’s adoption of the agreement does not invalidate any provision of law. A study by the University of Tennessee estimated that California could have raised an additional $1.75 billion in 2001 if all on-line purchases were taxable.
ACA 0009 (Levine) Majority Voter Approval Requirements for Special Tax Increases: Two-Thirds for General Taxes.Changes voter approval requirements for special taxes from two-thirds approval to majority approval. Conversely, the proposal sets the voter approval requirement for a general tax at two-thirds, rather than a majority.
Business Property Tax Reassessment (Split Roll): Higher Tax Rate on Business: State Treasurer.State Treasurer Phil Angelides has urged the Legislature to consider more tax increases to offset some of the $5.2 billion in reduced education spending proposed by Governor Davis, including: a split roll property tax, with commercial property assessed at a higher rate
Business Property Tax Reassessment (Split Roll): Senate Office of Research.The Senate Office of Research requested the Center of State and Local Taxation at the University of California Davis to conoduct a study. Results: Enactment of a “split roll” by increasing property tax assessments on business property to market value would increase business taxes by $3.3 billion.
SB 0017 (Escutia) Business Property Tax Reassessment (Split Roll): Stock Ownership Change: Escutia.Revises change-of-ownership provisions for corporations by providing that, if over 50 percent of the voting stock of a corporation changes, all properties of the corporation are subject to a reassessment to fair market value.
Business Property Tax Reassessment(Split Roll) Initiative: Ca. Teachers Association.The state’s largest union representing school teachers has voted to explore an initiative campaign to raise taxes – perhaps including property taxes paid by businesses. The Los Angeles Times reported that statewide officials of the California Teachers Association voted in Los Angeles on February 2 to conduct focus groups and engage in more extensive polling to determine what kind of taxes to include in a proposal that would dedicate added revenue to schools. A unanimous voice vote of more than 500 delegates authorized union leadership to begin “research and development of possible 2004 initiatives to enhance school funding,” The Times reported. John Hein, CTA political action director, said polling last month showed voters would be willing to increase education spending by boosting the sales tax, the corporate property tax or the upper brackets of the personal income tax. Residential property taxes would not be touched, Mr. Hein told The Times.
Business Property Tax Reassessment: Stock Ownership Change: Ca. Federation of Teachers.The California Federation of Teachers has suggested six revenue-raising measure, including: Higher taxes on commercial property through a split roll, mandating updates in value to reflect current market when 50 percent of a business changes hands.
SBX1 003 (Escutia) Business Property Tax Reassessments (Split Roll): Stock Ownership Change: Escutia.States legislative intent to enact a split roll, specifying when non-residential commercial and industrial property undergoes a change in ownership.
SB 0516 (Speier) Revoke Subchapter S Status for Corps with $20 milion of Receipts.Revokes Subchapter S status for any Subchapter S Corporation with $20 million or more in gross receipts.
Emergency Telephone User Tax: Budget Will Trigger Increase.Governor's January 2003 proposal to: Increase the Emergency Telephone Number User Tax by enlarging the fund by $51 million, which triggers a commensurate increase in the tax. The tax is set annually by the State Board of Equalization to fund the cost of the “911” program.
Timber Harvest Fee Increase: LAO Option.In her February 19 report of the Governor’s plans, the LAO suggested several tax and fee options, including fee increases for timber owners to fully cover state costs for in reviewing and enforcing timber harvest plans. (See Legislative Analyst for more information.)
AB 0071 (J. Horton) Cigarette Tax: 1 cents per pack on manufacturers.Imposes a 1 cent-per-pack cigarette tax on manufacturers and importers of cigarettes. The bill also requires licensing of all manufacturers, importers, distributors and retailers of cigarettes and tobacco products. In addition, it prohibits sales of cigarette taxes by firms not parties to the master settlement agreement, and reduces the stamping discount from .85 percent to .39 percent, if unspecified legislation is passed. The bill also amends the penal code to give specific BOE employees the power of police officers to make arrests.
SB 0433 (Ortiz) Tax on Retailers of Cigarettes and Tobacco Products.Declares intent of the Legislature to impose a tax on retailers of cigarette and tobacco products.
Tobacco Tax: Increase Cigarette Tax by $1.10 per Pack.Governor's January 2003 proposal to: Increase the state excise tax on tobacco products, including an additional $1.10 per pack of cigarettes, which would bring the tax to $1.97 per pack, raising $1.17 billion. The cigarette tax increases will trigger commensurate increases in the excise tax on other tobacco products, such as cigars, pipe tobacco and smokeless tobacco.
SCA 0002 (Torlakson) Reduces Local Vote for Sales Tax Increases for Transporation and Smart Growth to Majority.Reduces the voter-approval requirement for special (earmarked) local sales taxes for transportation purposes and “smart growth” purposes (whatever that is) from two-thirds to a majority.
AB 0737 (Longville) Driver License Fee: Increase from $15 to $45.Triples the driver’s license fee from $15 to $45. The bill is keyed a majority vote.
Driver's License Fee Increase to $24.Governor's January 2003 proposal to: Increase the non-commercial driver’s license fee up to $24 for a five-year license, to raise $30 million.
AB 0204 (Nation) Motor Vehicle Fees: $4 more in Bay Area.Authorizes the State Coastal Conservancy to request the Department of Motor Vehicles to collect an additional $4 motor vehicle license fee, in specified Bay Area counties for Conservancy spending, if three Bay Area counties elect to participate.
Motor Vehicle Weight Fee Increases.Governor's January 2003 proposal to: Increase the motor vehicle weight fee to generate revenues anticipated when SB 2084 (Polanco) of 2000 was passed. The fee increase is expected to produce $165 million in 2003-04.
Other DMV Fee Increases.Governor's January 2003 proposal to: Increase specified Department of Motor Vehicles fees and penalties. Standardizing DMV fees is expected to raise $16 million. Increasing the identification card fee to $20 (it will still be free to seniors) raises $9 million. Activating the Business Partner Automation Fee at $3 will generate $2 million. Establishing additional penalties for failure to file transfer-of-title documents brings in an additional $11 million.
AB 0574 (Yee) San Francisco Car Tax: Unlimited Amount and Limit.Authorizes the City and County of San Francisco to impose a car tax (called a “fee”) at any amount without limit. Revenue would be earmarked for the construction, improvement and maintenance of local streets.
AB 1546 (Simitian) San Mateo County Car Tax Increase of $4.Authorizes the San Mateo County Association of Governments to impose a $4 car tax, for management of traffic congestion and storm water pollution.
AB 0694 (Levine) Use Tax Increase on Vehicles, Vessels and Aircraft: Eliminate Non-Tax Presumption for 90-Day Out of State Use.Seeks to impose a use tax on all vehicles, airplanes or boats purchased by California residents (by repealing the three months out-of-state use presumption). For other than California residents, a plane, boat or vehicle would be subject to use tax on an out-of-state purchase if it is subject to registration or property tax within 12 months or is used in this state more than one-half time during the first 12 months.
ABX1 004 (Wesson) Vehicle License Fee Increase from .65% to 2%: Wesson.Triggers an increase in the vehicle license fee (VLF) from .65 percent to 2.0 percent – if the Director of Finance determines there is insufficient funds to reimburse local government for the reduction of the VLF.
Vehicle License Fee Increase from .65% to 2.0%: Ca. Federation of Teachers.The California Federation of Teachers has suggested six revenue-raising measure, including: Higher car taxes, by restoring the vehicle license fee to 2 percent.
Vehicle Registration Fee Increase by $7.Governor's January 2003 proposal to: Increase annual vehicle registration fees by $7. This includes a $3 increase in the basic registration fee ($41 million) and $2 increases in each of two California Highway Patrol vehicle registration surcharges ($54 million).
ABX1 003 (Leslie) VLF Tax Increase for Drunk Drivers.Increases the vehicle license fee for drunken drivers from .65 percent to 2 percent, for five years.
AB 0019 (Leslie) VLF Tax Increase for Drunken Drivers.Increases the vehicle license fee (“car tax”) for persons convicted of drunken driving from .65 percent of value to 2 percent of value for a period of five years.
Majority Vote for Legislative Tax Increases: Public Employee Unions.The California Federation of Teachers has suggested six revenue-raising measure, including: Emasculation of Proposition 13 by allowing the Legislature to raise taxes by majority votes of the Senate and Assembly. Also, the union wants the Legislature to be able to pass a budget bill by majority vote.
ACA 014 (Steinberg) Majority Vote for Special Taxes for Infrastructure.Reduces the voter-approval requirement for special taxes to fund qualified local infrastructure from two-thirds to a majority. The infrastructure must be part of a infrastructure plan, developed in conjunction with a citizens advisory committee. Qualified infrastructure is general infrastructure, conservation of agricultural land, emergency shelters and housing, and neighborhood improvement. At least 25 percent of the revenue must be used for each of the latter three categories.
ACA 0011 (Levine) Majority Vote Local Taxes and Bonds.Changes the voter-approval requirement for local bonds from a two-thirds vote to a majority vote.
SCA 0011 (Alarcon) Majority Voter Approval for Special Taxes and Bonds for Infrastructure.Reduces the voter approval requirement for local special taxes for infrastructure from two-thirds to a majority. It also reduces the voter-approval requirements for local general obligation bonds for infrastructure.
ACA 0009 (Levine) Majority Voter Approval Requirements for Special Tax Increases: Two-Thirds for General Taxes.Changes voter approval requirements for special taxes from two-thirds approval to majority approval. Conversely, the proposal sets the voter approval requirement for a general tax at two-thirds, rather than a majority.
SCA 0002 (Torlakson) Reduces Local Vote for Sales Tax Increases for Transporation and Smart Growth to Majority.Reduces the voter-approval requirement for special (earmarked) local sales taxes for transportation purposes and “smart growth” purposes (whatever that is) from two-thirds to a majority.
ACA 0004 (Simitian) Reduces Vote Requirement for School Parcel Taxes to 55 Percent.Reduces the voter approval requirement for parcel property taxes levied by school districts from two-thirds to 55 percent.
ACA 0001 (Longville) Reduces Vote to Pass State Budget to Majority .Changes the vote requirement to pass the state budget from two-thirds to a majority.
ACA 0010 (Harman) Repeals Voter Approval of Local Water Run-Off Fees.Excludes fees for storm and urban water runoff from requirements for voter approval.
