Comparing Options to Raise and Lower Taxes [Publication Details]

Mar 24, 2026 - Comparing Options to Raise and Lower Taxes [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5170

The 2026-27 Budget: Sales Tax on Prewritten Software [EconTax Blog]

May 16, 2026 - They can access the software remotely, sometimes called “software as a service. ” Sales Tax Applies to Some Sales of Software, But Not Others. Most states ’ sales and use taxes (hereafter, sales taxes) apply mainly to tangible goods.
https://lao.ca.gov/LAOEconTax/Article/Detail/859

The 2026-27 Budget: Sales Tax on Prewritten Software [EconTax Blog]

May 16, 2026 - They can access the software remotely, sometimes called “software as a service. ” Sales Tax Applies to Some Sales of Software, But Not Others. Most states ’ sales and use taxes (hereafter, sales taxes) apply mainly to tangible goods.
https://lao.ca.gov/LAOEconTax/article/Detail/859

Understanding California Corporate Taxation: Apportionment [EconTax Blog]

Aug 11, 2026 - Apportionment Choices Are Tax-Base Design, Not Tax Expenditures. Single Sales Factor can increase taxes for some firms and reduce taxes for others, but it is not best understood as a tax expenditure in the same sense as a credit, deduction, or exemption.
https://lao.ca.gov/LAOEconTax/Article/Detail/866

The 2011 Realignment of Adult Felony Populations: Results and Key Takeaways

Jun 30, 2026 - State Revenues Realigned to Counties Portion of State Sales Tax Revenue Shifted to Counties to Pay for Three Felony Populations. As a part of the 2011 realignment legislation, the state shifted a portion of sales tax revenue to counties to pay for their increased costs associated with managing the three felony populations.
https://lao.ca.gov/Publications/Report/5191

The 2026-27 Budget: Governor’s Sustainable Aviation Fuel Tax Credit Proposal

Feb 24, 2026 - Recommendation Reject Proposed Tax Credit. We recommend the Legislature reject the proposed budget trailer legislation establishing a credit against diesel excise tax revenue for sale of SAF in California.
https://lao.ca.gov/Publications/Report/5139

How Will the Changing Landscape Affect California’s Health Care System?

May 4, 2026 - Under the 1991 realignment formula, a portion of sales tax and vehicle license fee funds are allocated among various subaccounts that support certain county health and social service programs. The Health Subaccount supports county indigent health and public health programs.
https://lao.ca.gov/Publications/Report/5180

Updated "Big Three" Revenue Outlook (August 2026) [EconTax Blog]

Aug 19, 2026 - Our updated forecast anticipates revenues from the state ’s three largest taxes (income, corporation, and sales) will be similar to those assumed in the Budget Act enacted in June. We continue to caution that the stock market appears to be in the midst of a speculative bubble.
https://lao.ca.gov/LAOEconTax/article/Detail/867

Understanding California Corporate Taxation: Net Operating Loss Deductions [EconTax Blog]

Aug 11, 2026 - If a tax loss is increased by a tax preference or a transaction whose tax treatment is disputed, a NOL can preserve that effect and allow it to offset future income. In some cases, the resulting tax loss may not reflect a comparable decline in the business ’s overall economic position.
https://lao.ca.gov/LAOEconTax/Article/Detail/865

The 2026-27 Budget: County Administration and H.R. 1 Implementation [Publication Details]

Mar 5, 2026 - The 2026-27 Budget: County Administration and H.R. 1 Implementation [Publication Details] Description: In this brief, we assess the Governor's proposed funding for county administration of Medi-Cal and CalFresh in response to H.R. 1 and provide related recommendations.
https://lao.ca.gov/Publications/Detail/5149