Budget Package--AB 425 and Related Trailer Bills

Major Features Revenues Increased revenues of $3.9 billion from tax rate increases, tax expenditure changes, and administrative-related actions. Key tax provisions include an increase in Vehicle License Fee rate from 0.65 percent to 1.5 percent, two-year suspension of net operating loss deductions, and increased taxes on cigarettes of 63 cents per pack (for a total tax of $1.50 per pack).
https://lao.ca.gov/2002/floor_packets/070102_budget_package.html

^[PDF] Budget Package 2002-03

Revenues • Increased revenues of $3.9 billion from tax rate increases, tax expenditure changes, and administrative-related actions. • Key tax provisions include an increase in Vehicle License Fee rate from 0.65 percent to 1.5 percent, two-year suspension of net operating loss deductions, and increased taxes on ciga- rettes of 63 cents per pack (for a total tax of $1.50 per pack). !!!!!
https://lao.ca.gov/2002/floor_packets/070102_budget_package.pdf

HMOs and Rural California

Provide Tax Incentives. There may be tax-related incentives that could be considered provided that they can be structured in a cost efficient manner. For example, tax credits or income exclusions could be provided to medical professionals who decide to practice in a rural area after being licensed.
https://lao.ca.gov/2002/hmos_rural_ca/8-02_hmos_rural_ca.html

2002-03 May Revision

Regarding tax increases, an important quest ion is whether the Governor's proposed changes are preferable to, for example, a reduction in some tax expenditures such as credits, deductions, and exemptions.
https://lao.ca.gov/2002/may_revise/0502_may_revision.html

An Overview of California's Manufacturers' Investment Credit

In addition to the 6  percent tax credit for income tax liabilities discussed above, the tax program provides the following features in lieu of the tax credit: Provides “start-up” businesses the option of claiming a 5  percent sales and use tax (SUT) exemption on equipment purchases.
https://lao.ca.gov/2002/mic/120502_Manufacturers_Investment_Credit.html

California Spending Plan 2002: Chapter 3

Tax Compliance, Enforcement, and Administration The budget agreement approved numerous proposals to increase tax compliance, adopted certain tax enforcement-related provisions, and adjusted downward the interest rate the state pays on tax overpayments.
https://lao.ca.gov/2002/spend_plan_02/0902_spend_plan_chap_3.html

California Spending Plan 2002: Chapter 4

The budget plan also eliminates the proposed expenditure of about $24  million in Proposition  99 cigarette tax revenues to continue a media campaign to persuade the public to quit smoking. Cancer Research.
https://lao.ca.gov/2002/spend_plan_02/0902_spend_plan_chap_4.html

^[PDF] Comments on the Administration’s Spending Limit Proposal

For example, the current exemptions for transportation funding and certain tobacco tax-supported expenditures would remain. Thus, spending in these areas would not be directly affected by the measure.
https://lao.ca.gov/2003/admin_spending_limit/120103_admin_spending_limit_proposal.pdf

^[PDF] The 2003-04 Assembly Budget Bill AB 100 (Oropeza)

The revised plan (1) increases the county share of costs in several programs (primarily CalWORKs, Child Welfare Services, Foster Care, and Mental Health) and (2) provides the counties with commensurate revenues from higher tobacco taxes and the creation of a new 10.3 percent personal income tax bracket. • Accepts Governor’s proposed CalWORKs and SSI/SSP COLA
https://lao.ca.gov/2003/asm_floor/Asm_Floor_Packet_0602203.pdf

An Overview of California's Enterprise Zone Hiring Credit

The EZC may be used to offset the regular tax liability (and effectively t he Alternative Minimum Tax), but not the minimum franchise tax, or the built-in gain tax and excess net passive income tax levied on S corporations.
https://lao.ca.gov/2003/ent_zones/ezones_1203.htm