A Key Interaction Between Sales Taxes and Other Taxes on Cannabis Retailers

Dec 17, 2019 - Certain State and Local Taxes Apply to Cannabis Sales Tax. California ’s state and local governments levy a sales and use tax (hereafter, sales tax) on retail sales of tangible goods. The rate varies across the state, ranging from 7.25  percent to 10.5  percent, with a statewide average of 8.6  percent.
https://lao.ca.gov/Publications/Report/4124

The 2020-21 Budget: Taxation of E-Cigarettes

Feb 24, 2020 - Potential state and federal policy changes —such as a state flavor ban or further FDA restrictions on e ‑ cigarettes —could have large effects on e ‑cigarette sales in California. Consumer Response to Tax.
https://lao.ca.gov/Publications/Report/4171

The 2020-21 Budget: Expanding the Minimum Franchise Tax Exemption

Mar 23, 2020 - Conclusion Two decades ago, the Legislature adopted an exemption from the state ’s minimum franchise tax for corporations in their first year of business with the stated intent to provide financial assistance to small businesses.
https://lao.ca.gov/Publications/Report/4207

The 2020-21 Spending Plan: Tax Changes

Oct 5, 2020 - Businesses may earn credits if they take actions the state wants to encourage, such as spending money on research and development. Tax credits reduce a business ’s tax bill directly, on a dollar-for-dollar basis.
https://lao.ca.gov/Publications/Report/4270

The 2019-20 Budget: California Spending Plan—Conformity

Oct 17, 2019 - The budget package changes state law so that corporations are required to make the same choice about the purchase for state tax purposes as they elected to do for federal t ax purposes. The change to state law ends the ability for some corporations to treat the purchase as an asset purchase for federal tax purposes, for example, and as a qualified stock purchase for state tax purposes.
https://lao.ca.gov/Publications/Report/4100

Assessing Recent Changes to California Competes

Mar 30, 2020 - Prior to 2018, GO ‑Biz awarded about 35  p ercent of the total number of tax credit agreements —about 15  p ercent of the dollar value —to businesses in the non ‑tradable sector of the state ’s economy.
https://lao.ca.gov/Publications/Report/4213

The 2019-20 Budget: California Spending Plan—Expands Earned Income Tax Credit (EITC)

Oct 17, 2019 - The 2019 ‑20 budget package modifies and expands the state EITC in three ways. (For more information about the first state EITC, see our report, The 2015‑16 Budget: California Spending Plan. ) The administration estimates these changes will reduce tax revenue in 2019‑20 by $600 million.
https://lao.ca.gov/Publications/Report/4099

The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - A handful of other states have adopted state tax credits that mirror the federal New Market Tax Credit to encourage investors to shift their New Market Tax Credit investment to those states. To gauge the effect of these state credits, we looked at how New Market Tax Credit investments changed in states after they
https://lao.ca.gov/Publications/Report/4038

Managing California’s Cash [Publication Details]

Sep 3, 2019 - Given that the state's cash position will inevitably change in the future, we suggest the Legislature be cautious about approving additional proposals to make loans from the state's cash resources. Assessing a proposed loan using the criteria in this report may help determine whether its benefits exceed its costs.
https://lao.ca.gov/Publications/Detail/4092

How High? Adjusting California’s Cannabis Taxes

Dec 17, 2019 - If this experience is a guide, the Legislature might want to think carefully about the timing of any changes to the state ’s cannabis tax structure and rates. On one hand, the sooner the Legislature changes the state ’s cannabis taxes, the sooner the state will realize any benefits associated with those changes.
https://lao.ca.gov/Publications/Report/4125