Supplements E&F: California Tax Policy and the Internet

Telephone and Internet activities are routed through a com plex system of microwave transmissions, fiber optics, satellites, and cables which make the tasks associated with identifying the direct costs associated with a particular tr ansmission financially prohibitive.
https://lao.ca.gov/2000/013100_inet_tax/013100_internet_sup3.html

Supplement D: California Tax Policy and the Internet

This approach has generally met with limited success, although it may be s uccessful in narrow situations involving holding companies and “dot-com” subsidiaries. Economic Presence Theory. This theory of nexus is based on the regular and systematic direction of business efforts to a state where it has no physical presence.
https://lao.ca.gov/2000/013100_inet_tax/013100_internet_sup2.html

Oversight of certain public benefit artificial intelligence (AI) companies. [Ballot]

Jan 20, 2026 - The commission would regulate a narrow category of large AI companies —referred to as “public benefit AI companies ” —that meet specified thresholds related to computational expenditures, California nexus, and public benefit or nonprofit status.
https://lao.ca.gov/BallotAnalysis/Initiative/2025-033

LAO 2004 Budget Analysis: Office of Criminal Justice Planning Elimination: Update

Nexus Between Program and Receiving Department. Second, the plan should demonstrate a nexus between the programs being transferred from OCJP and the programs currently being administered by the receiving agency.
https://lao.ca.gov/analysis_2004/crim_justice/cj_05_cc_ocjp_anl04.htm

^[PDF] California's Tax Gap

MTC Nexus Program. This program sends MTC member states leads from other states regarding firms who may have nexus in more than one state. The BOE reports that the program has been only marginally successful in generating high quality leads that result in generating additional revenue. !
https://lao.ca.gov/handouts/revtax/2005/Californias_Tax_Gap_030105.pdf

^[PDF] Use Tax on Remote Sales

. „ Substantial Nexus. In Complete Auto Transit v. Brady (1977), the Supreme Court of the United States (SCOTUS) established a multipart test to determine whether a state tax unduly burdens interstate commerce.
https://lao.ca.gov/handouts/state_admin/2018/Use-Tax-101518.pdf

The 2012-13 Budget: Cap-and-Trade Auction Revenues

As indicated above, any use of revenues (whether to initiate new programs or offset the costs of existing programs) will be subject to the Sinclair nexus test and, thus, must be used to mitigate GHG emissions.
https://lao.ca.gov/analysis/2012/resources/cap-and-trade-auction-revenues-021612.aspx

^[PDF] The 2012-13 Budget: Cap-and-Trade Auction Revenues

As indicated above, any use of revenues (whether to initiate new programs or offset the costs of existing programs) will be subject to the Sinclair nexus test and, thus, must be used to mitigate GHG emissions.
https://lao.ca.gov/analysis/2012/resources/cap-and-trade-auction-revenues-021612.pdf

LAO 2003-04 Budget Analysis: Education, University of California (6440)

The Governor's proposal leaves many of the smaller programs such as the Community Education and Resource Center Initiative and UC Nexus with a few hundred thousand dollars. The university was unable to provide any d etail on how these types of programs would absorb these reductions.
https://lao.ca.gov/analysis_2003/education/hied_07_6440_anl03.htm

^[PDF] Overview of Proposals to Address Transportation Challenges

Absent that, it could minimize legal risk by targeting cap-and-trade revenues to transportation projects that have a closer nexus to greenhouse gas emission reductions.  Simplify Distribution of Funds.
https://lao.ca.gov/handouts/transportation/2015/Transportation-Challenges-101615.pdf