September 1, 1985 - Recognizing the importance of assuring that highway costs are financed in an equitable manner, the Legislature adopted Resolution Chapter 119, Statutes of 1982 (ACR 112). This resolution requested that the Legislative Analyst's Office (1) develop information which can be used by the Legislature to determine the most cost-effective method for assessing weight fees on farm vehicles, and (2) report its findings to the Legislature. This report responds to the Legislature's request contained in ACR 112.
June 21, 1996 - An Analysis of the Low-Emission Vehicle Tax Credit Program
June 17, 1998 - The VLF is a fee on the ownership of a registered vehicle that provides nearly $4 billion in annual revenues. This report is intended to answer a number of questions related to the VLF.
May 2, 2006 - In 2004, California temporarily extended, from 90 days to one year, the time that recently purchased vessels, vehicles, and aircraft must be kept out of California in order to avoid the state’s use tax. This report looks at the economic and fiscal impacts of the law change. We find that (1) the law change has resulted in a sharp reduction in out-of-state usage exemptions and an increase in sales and use tax revenues, and (2) the negative economic impacts arising from the measure do not appear to be particularly large.
April 15, 2024 - Published in accordance with Chapter 353 of 2022 (AB 2622, Mullin), which directs our office to review the effectiveness of a partial sales tax exemption for zero-emission buses.
May 20, 2020 - The May Revision includes a number of revenue-related proposals. This post describes these proposals and offers our initial comments and recommendations. We also offer alternative revenue options that the Legislature could consider.
September 17, 2020 - The state has experienced reductions in gasoline and other tax revenues that support California's transportation system. This post discusses these declines and the potential effects on major state transportation programs.
May 6, 2015 -
California’s state and local governments levy a tax on retail sales of tangible goods. This report begins with an overview of California’s sales and use tax. It then provides more detail about which transactions are subject to this tax, the variation in tax rates across the state, the distribution of revenue among state and local governments, and revenue growth over the last few decades.
(5/12/15: Correction made to expiry date of manufacturing equipment exemption.)
(5/12/15: Correction made to difference in sales tax for gasoline.)