The 2026-27 Budget: Overview of the Spending Plan

Aug 26, 2026 - Applies Sales Tax to Digital Prewritten Software. Starting January 1, 2027, the budget extends the sales tax to many sales of prewritten software. The administration estimates that this would raise General Fund revenue by $450  million and local sales tax revenue by $560  million in 2026 ‑27, when it would be in effect for half a year.
https://lao.ca.gov/Publications/Report/5197

The 2019-20 May Revision: Sales Tax Exemptions for Diapers and Menstrual Products

May 12, 2019 - Of that, 3.94  percent raises money for the state ’s General Fund, and 2.06  percent raises money the state provides to counties for various local programs. Local governments ’ portion of the sales tax ranges from 1.25  percent to 4.5  percent.
https://lao.ca.gov/Publications/Report/4040

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - (As seen in Step Two above, prior to 2017 ‑18, sales tax growth paid prior year cost increases.) This sales tax payment acceleration will be ongoing. Despite Additional Revenue, Counties Will Face Some Costs.
https://lao.ca.gov/Publications/Report/3694/8

Understanding The State’s Astonishing Cash Position

Sep 16, 2026 - Under the new structure, counties deposit their share of Medi ‑Cal behavioral health costs into the fund; the state forwards that amount to the federal government; and federal reimbursement flows back to counties.
https://lao.ca.gov/Publications/Report/5198

The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - California consumers similarly are limiting spending, with sales of taxable goods flat over the last year. Consumers also continue to report historically low optimism about the economy ’s future. Consistent with these trends, collections from the sales tax and corporation tax (adjusted for recent policy changes) have posted below ‑average growth in recent months.
https://lao.ca.gov/Publications/Report/5091

Understanding $100 Billion in Spending Growth: Causes and Fiscal Implications

Apr 28, 2026 - For example, this could include doing all of the following: (1) raising personal income tax rates by 6 percent (not percentage points) across the board, (2) increasing the corporate tax by 6 percentage points, and (3) raising the sales tax by one cent.
https://lao.ca.gov/Publications/Report/5176

The 2026-27 Budget: Overview of the Spending Plan

Aug 26, 2026 - CDCR = California Department of Corrections and Rehabilitation; FTB = Franchise Tax Board; UIS = unsatisfactory immigration status; Preschool = State Preschool; CDCR = California Department of Corrections and Rehabilitation; DOJ = Department of Justice; and IHSS = In ‑Home Supportive Services.
https://lao.ca.gov/Publications/Report/5197/2

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - Amends Tax Collection Provisions. Requires all the cannabis excise taxes —including the excise taxes on cultivation and retail sales —to be remitted by the cannabis distributor. Clarifies that this tax collection will happen when the product enters the commercial market (after the product complies with quality assurance).
https://lao.ca.gov/Publications/Report/3694/12

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - Consumer spending (measured by inflation ‑adjusted retail sales and taxable sales) has continued to decline throughout  2024. …And Yet Incomes Are Growing Rapidly for High ‑Income Californians. Alongside these downbeat trends, a bright spot has emerged: strong growth in total pay to California workers.
https://lao.ca.gov/Publications/Report/4939

The 2017-18 Budget: California Spending Plan

Oct 18, 2017 - The budget creates a new maintenance ‑of ‑effort (MOE) for counties ’ share of IHSS costs. The new MOE significantly increases counties ’ IHSS costs in 2017 ‑18 relative to 2016 ‑17. The budget provides ongoing state General Fund support and additional realignment revenue (which consists of sales taxes and vehicle license fee revenue) to partially offset this increase.
https://lao.ca.gov/Publications/Report/3694/1