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

Mar 23, 2020 - Conclusion Two decades ago, the Legislature adopted an exemption from the state ’s minimum franchise tax for corporations in their first year of business with the stated intent to provide financial assistance to small businesses.
https://lao.ca.gov/Publications/Report/4207

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

Mar 20, 2020 - (CDTFA ’s field operations include audit and compliance activities based in field offices around the state.) We commend the administration for identifying resources that CDTFA does not need and proposing budget reductions accordingly.
https://lao.ca.gov/Publications/Report/4205

The 2020-21 Budget: Taxation of E-Cigarettes

Feb 24, 2020 - Potential state and federal policy changes —such as a state flavor ban or further FDA restrictions on e ‑ cigarettes —could have large effects on e ‑cigarette sales in California. Consumer Response to Tax.
https://lao.ca.gov/Publications/Report/4171

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

Jan 13, 2020 - The Governor allocates this amount among three uses: ( 1)  c ontinuing to implement the state ’s plan to prefund retiree health benefits, ( 2)  r epaying a 2017 ‑ 18 l oan from the state ’s cash resources that supported a supplemental pension payment in that year, and ( 3)  a supplemental pension payment to the state ’s teacher retirement system.
https://lao.ca.gov/Publications/Report/4135

Comparing Taxes on Cannabis to Taxes on Other Products in California

Dec 17, 2019 - Cannabis Subject to Various State and Local Excise Taxes. As shown in Figure  1, California ’s state and local governments levy a variety of excise taxes on cannabis, including: State Cultivation Tax.
https://lao.ca.gov/Publications/Report/4123

A Key Interaction Between Sales Taxes and Other Taxes on Cannabis Retailers

Dec 17, 2019 - Certain State and Local Taxes Apply to Cannabis Sales Tax. California ’s state and local governments levy a sales and use tax (hereafter, sales tax) on retail sales of tangible goods. The rate varies across the state, ranging from 7.25  percent to 10.5  percent, with a statewide average of 8.6  percent.
https://lao.ca.gov/Publications/Report/4124

Comparing Taxes on Cannabis to Taxes on Other Products in California [Publication Details]

Dec 17, 2019 - California’s state and local governments generally tax cannabis—including medical cannabis—more heavily than other medicines. In some instances, however, exemptions can make tax rates on medical cannabis comparable to tax rates on other medicines.
https://lao.ca.gov/Publications/Detail/4123

How High? Adjusting California’s Cannabis Taxes

Dec 17, 2019 - If this experience is a guide, the Legislature might want to think carefully about the timing of any changes to the state ’s cannabis tax structure and rates. On one hand, the sooner the Legislature changes the state ’s cannabis taxes, the sooner the state will realize any benefits associated with those changes.
https://lao.ca.gov/Publications/Report/4125

The 2019-20 Budget: California Spending Plan—Expands Earned Income Tax Credit (EITC) [Publication Details]

Oct 17, 2019 - This post describes the 2019-20 budget actions to expand the state earned income tax credit (EITC).
https://lao.ca.gov/Publications/Detail/4099

The 2019-20 Budget: California Spending Plan—Conformity [Publication Details]

Oct 17, 2019 - This post describes the 2019-20 budget actions changing state individual and business tax provisions (partial tax conformity).
https://lao.ca.gov/Publications/Detail/4100