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

Dec 17, 2019 - Based on these tax rates, a casual observer might conclude that the combined tax rate on retail cannabis sales is 19.5  percent. However, due to the interaction between the sales tax and the local cannabis tax, the combined tax rate is roughly 20.5  percent.
https://lao.ca.gov/Publications/Report/4124

Comparing Taxes on Cannabis to Taxes on Other Products in California

Dec 17, 2019 - In particular, the state tax on distilled spirits has one rate that applies to most drinks and a second rate (double the standard rate) for the most potent drinks. Federal taxes on beer and spirits tax the output of larger brewers and distilleries more heavily than the output of smaller producers.
https://lao.ca.gov/Publications/Report/4123

How High? Adjusting California’s Cannabis Taxes

Dec 17, 2019 - Set Rate to Match Policy Goals We recommend that the Legislature set the tax rate to match its policy goals. Below, we provide specific recommendations for each type of tax. Setting Tax Rates for Recommended Tax Types.
https://lao.ca.gov/Publications/Report/4125

The 2026-27 Budget: California Competes Extension

Mar 18, 2026 - Agreements that are less than five years old have not reached the end of their initial agreement period and thus have lower recapture rates (shown in the shaded grey area). High Recapture Rate Can be Seen as a Feature … On one hand, high recapture rates can be seen as not a significant issue, and even a sign that the program is working as
https://lao.ca.gov/Publications/Report/5162

Local Sales Tax Rebates in 2023-24

Sep 16, 2025 - California ’s sales tax rates vary across cities and counties, ranging from 7.25  percent to 11.25  percent. One percentage point of this rate, known as the Bradley-Burns tax, goes to local governments —primarily cities —for general purposes.
https://lao.ca.gov/Publications/Report/5074

Fixing Unemployment Insurance

Dec 2, 2024 - Redesign Employer Tax Rates Using Standard Rate and Reserve ‑Building Rate. Following federal guidelines, we recommend the state adopt a simple, robust UI tax structure comprised of a standard tax rate and a reserve ‑building tax rate.
https://lao.ca.gov/Publications/Report/4943

The 2025-26 Budget: CDTFA’s Tobacco Programs

Feb 14, 2025 - As noted above, one explanation for the growing citation rate and seizure rate is that CDTFA is targeting its inspections more efficiently. Another possibility, however, is that the underlying rate of compliance has declined.
https://lao.ca.gov/Publications/Report/4966

Updating the California Necessities Index

Aug 14, 2025 - Alternatively, the legislature could decide to retire the concept of the CNI, instead setting benefit rates based on other broader inflation measures calculated for Californians. We consider the most common price indices specific to California: the California Consumer Price Index for Urban Consumers (CA CPI ‑U) and the California Consumer Price Index for Wage and Clerical Workers (CA CPI ‑W).
https://lao.ca.gov/Publications/Report/5065

Updating the California Necessities Index [Publication Details]

Aug 14, 2025 - Recent changes were made to the publication of statistics required to calculate the California Necessities Index, which is used to adjust certain benefit rates and cost-of-living adjustments. In this brief, we provide details on the changes and evaluate alternatives for the index that require only currently available data and conform to the original intent of the index.
https://lao.ca.gov/Publications/Detail/5065

California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - In the second approach, we use CPS data from 2002 through 2023 to track the how the rate of low-wage work changes over time for cohorts of workers born in the same year. Limitations of Survey-Based Estimates.
https://lao.ca.gov/Publications/Report/4878/2