The 2020-21 Spending Plan: Tax Changes

Oct 5, 2020 - Prior law exempted new corporations from the minimum franchise tax in their first year of business. The budget package expands this exemption to LLCs and certain partnerships in their first year. This expanded exemption expire s in 2024.
https://lao.ca.gov/Publications/Report/4270

An Update on California’s Cash Management Situation

Aug 31, 2020 - Meanwhile, the state ’s 2020-21 budget package took steps to begin payment deferrals to schools at the end of 2019-20. As a result, payments to schools in June of 2020 were only $300  million, compared to $6  billion anticipated earlier this year.
https://lao.ca.gov/Publications/Report/4266

The 2020-21 May Revision: Revenue Proposals in the 2020-21 May Revision

May 20, 2020 - Corporations sometimes earn more credits in a year than they can use and are allowed to carry those credits forward to use in a future year. Under current law, motion picture production tax credits expire after six years.
https://lao.ca.gov/Publications/Report/4238

Assessing Recent Changes to California Competes [Publication Details]

Mar 30, 2020 - Next, we describe the effects of these changes on the program in 2018‑19, the first year of their implementation. We then assess how the changes have affected the administration of the California Competes program and consider whether it is more or less effective than before.
https://lao.ca.gov/Publications/Detail/4213

Assessing Recent Changes to California Competes

Mar 30, 2020 - A prior requirement that 25  p ercent of the credits be reserved for small businesses —defined as having under $ 2  m illion in annual revenue —was eliminated. Chapter  52 also reduced the total amount of new credits that GO ‑Biz may allocate in any fiscal year, from $ 200  m illion to $ 180  m illion.
https://lao.ca.gov/Publications/Report/4213

The 2020-21 Budget: Expanding the Minimum Franchise Tax Exemption

Mar 23, 2020 - About 25  p ercent of new companies do not file a timely corporate tax return in their first year of business. We are concerned that the exemption itself may be confusing new companies that might infer that they are not required to file a tax return because they are exempt from the minimum franchise tax in their first year.
https://lao.ca.gov/Publications/Report/4207

The 2020-21 Budget: California Department of Tax and Fee Administration (CDTFA)

Mar 20, 2020 - With these resources, CDTFA could perform 660 audits per year, but we estimate that IFTA will require the department to perform roughly 750 audits per year by 2021. We estimate that CDTFA would need three additional ATAs (at a cost of roughly $570,000 per year) to increase its audit capacity to 750 per year.
https://lao.ca.gov/Publications/Report/4205

The 2020-21 Budget: Taxation of E-Cigarettes

Feb 24, 2020 - A second, less common type of pack contains 25 c igarettes and requires a $3. 59 t ax stamp. As a result, the vendor needs to produce just two denominations of stamps, and taxpayers can comply with the tax by affixing just one stamp to each pack.
https://lao.ca.gov/Publications/Report/4171

The 2020-21 Budget: Overview of the Governor's Budget [Publication Details]

Jan 13, 2020 - The Governor allocates most of the surplus toward one-time purposes, including maintaining a positive year-end balance in the state’s discretionary reserve. Under the administration’s estimates, total reserves would reach $20.5 billion at the end of 2020-21—this represents a $1.7 billion increase from the 2019-20 enacted level.
https://lao.ca.gov/Publications/Detail/4135

The 2020-21 Budget: Overview of the Governor's Budget

Jan 13, 2020 - Most notably, the Governor provides a combined $ 900  m illion for six programs aimed at improving school employee training, recruitment, and retention. The budget also provides $ 600  m illion for two new grant programs: (1) $ 300  m illion for grants to help low ‑performing schools and districts improve their performance and (2) $ 300  m illion for
https://lao.ca.gov/Publications/Report/4135