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

Fixing Unemployment Insurance

Dec 2, 2024 - To ensure revenues match benefits over time, states enacted UI financing systems. These systems are comprised of three elements: (1) a tax rate “schedule” that adjusts up or down to match revenues and benefit costs, (2) a taxable wage base level to which the tax rate applies, and (3) an experience rating factor to ensure employers pay their fair share of UI costs.
https://lao.ca.gov/Publications/Report/4943

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

The 2026-27 Budget: CDTFA’s Cannabis and Tobacco Programs

Feb 23, 2026 - Under the Governor ’s budget proposal for the Cannabis Tax Program, this appropriation would increase to match current program spending. Administration Has Been Spending General Fund on Cannabis Tax Enforcement.
https://lao.ca.gov/Publications/Report/5132

Improving California’s Unemployment Insurance Program

Aug 8, 2022 - Tax rates also go down if few workers become unemployed and get UI payments. (Under this practice, known as “experience rating, ” a business ’ annual tax rate can range from 1.5  percent to 6.2  percent depending on how many prior workers get UI benefits.)
https://lao.ca.gov/Publications/Report/4615

Common Claims About Proposition 13

Sep 19, 2016 - Today, that share is less than two –thirds . Cities and Counties Have More Control Over Sales, Hotel, and Utility Taxes Than Property Taxes. As described in the background, the laws implementing Proposition  13 set cities ’ and counties ’ property taxes based on the rates they had levied prior to Proposition  13.
https://lao.ca.gov/Publications/Report/3497

California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - These concerns have grown as response rates for many surveys have declined substantially over the last decade. For example, the monthly CPS unit nonresponse rate grew from 10  percent in 2013 to 30  percent in 2023.
https://lao.ca.gov/Publications/Report/4878/4

Building Reserves to Prepare for a Recession

Mar 7, 2018 - In addition, in response to the crisis, the state spent $ 1  b illion (roughly $1. 5  b illion in today ’s dollars) on various conservation and rebate programs in the 2001 ‑ 02 b udget. Loma Prieta Earthquake.
https://lao.ca.gov/Publications/Report/3769

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