The 2018-19 Budget: California’s New Tax Departments

Apr 4, 2018 - Tax Administration and Appeals Under the New Laws Laws Transferred BOE ’s Statutory Duties to New Departments. In June 2017, the Legislature passed and the Governor signed A B  102 . This law created two new departments —CDTFA and OTA —and transferred all of BOE ’s statutorily assigned duties to these new departments.
https://lao.ca.gov/Publications/Report/3796

The 2018-19 Budget: California’s New Tax Departments [Publication Details]

Apr 4, 2018 - In 2017, the Legislature passed two laws that made major changes to tax administration and appeals in California. Prior to these laws, the Board of Equalization (BOE) had administrative and appeals responsibilities for many taxes and fees.
https://lao.ca.gov/Publications/Detail/3796

The 2018-19 Budget: California Hiring Tax Credits

Mar 15, 2018 - The proposed credit would clarify that —when city, county, and state minimum wages differ —the applicable minimum wage is whichever is highest. No Annual Certification. Unlike with the existing credit, the proposal would not require the taxpayer to submit a certification of employment to FTB every year.
https://lao.ca.gov/Publications/Report/3784

Building Reserves to Prepare for a Recession

Mar 7, 2018 - Passed by voters in 2004, Proposition   58 r equired the state to make an annual transfer into the BSA. These required deposits were to gradually increase from 1  p ercent of General Fund revenues in 2006 ‑ 07 t o 3  p ercent in 2008 ‑09 and every year thereafter.
https://lao.ca.gov/Publications/Report/3769

The 2018-19 Budget: California Competes Proposal

Feb 21, 2018 - To increase awareness of the program, GO-Biz has held workshops in more than 100 cities over the past three years. While this outreach may have increased awareness of the program and the number of applicants, the demand for this program from small business has remained relatively low.
https://lao.ca.gov/Publications/Report/3759

The Property Tax Inheritance Exclusion

Oct 9, 2017 - Local governments in California —cities , counties, schools, and special districts —levy property taxes on property owners based on the value of their property. Property taxes are a major revenue source for local governments, raising nearly $60  billion annually.
https://lao.ca.gov/Publications/Report/3706

The Property Tax Inheritance Exclusion [Publication Details]

Oct 9, 2017 - When a property changes hands the taxes paid for the property often increase substantially. This is not true for most inherited property. Three decades ago, the Legislature and voters decided inherited property should not be reassessed when transferred. This has been a consequential decision. Many have benefited from the tax savings this policy affords.
https://lao.ca.gov/Publications/Detail/3706

Volatility of California’s Personal Income Tax Structure

Sep 28, 2017 - Moreover, transfer payments tend to rise during recessions when other categories of income decline, so they serve to smooth out aggregate income from one year to the next. Why Do Graduated Rates and Other Provisions Make the PIT More Volatile?
https://lao.ca.gov/Publications/Report/3703

How Will Aging Baby Boomers Affect Future Property Tax Revenues?

Jun 20, 2017 - In general, when a home is transferred to a new owner, its taxable value is reset to its purchase price. California voters, however, passed Proposition  58 in 1986, which amended the California Constitution to exempt transfers between parents and children (and later grandparents and grandchildren under certain circumstances under Proposition  193 [1996]) from revaluation.
https://lao.ca.gov/Publications/Report/3693

How Will Aging Baby Boomers Affect Future Property Tax Revenues? [Publication Details]

Jun 20, 2017 - In the coming years, more and more aging homeowners likely will look to sell their homes. This surge in sales should boost local government property tax collections. These potential property tax gains are likely to be offset by an increase in the transfer of homes from parents to children which, unlike most home sales, does not trigger higher tax payments.
https://lao.ca.gov/Publications/Detail/3693