The 2019-20 May Revision: Opportunity Zones

May 11, 2019 - A handful of other states have adopted state tax credits that mirror the federal New Market Tax Credit to encourage investors to shift their New Market Tax Credit investment to those states. To gauge the effect of these state credits, we looked at how New Market Tax Credit investments changed in states after they
https://lao.ca.gov/Publications/Report/4038

Managing California’s Cash [Publication Details]

Sep 3, 2019 - Given that the state's cash position will inevitably change in the future, we suggest the Legislature be cautious about approving additional proposals to make loans from the state's cash resources. Assessing a proposed loan using the criteria in this report may help determine whether its benefits exceed its costs.
https://lao.ca.gov/Publications/Detail/4092

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

May 20, 2020 - This rationale is no longer valid as the state no longer has an estate tax. If the state were to eliminate the provision prospectively for inheritances of people who die after July 1, 2020, we estimate increased PIT revenue of about $120  million in 2020 ‑21, $450  million in 2021 ‑22, and $615  million in 2022 ‑23, with further increases in later years.
https://lao.ca.gov/Publications/Report/4238

California's Geography of Wealth [Publication Details]

Sep 5, 2019 - California's Geography of Wealth [Publication Details] PDF Description: California is the wealthiest state in the nation. Despite this overall prosperity, wealth varies considerably across the state and its residents.
https://lao.ca.gov/Publications/Detail/4093

The 2019-20 May Revision: Sales Tax Exemptions for Diapers and Menstrual Products

May 12, 2019 - California ’s state and local governments charge a sales tax on the retail sale of tangible goods. The average rate is 8.6  percent. Of that, 3.94  percent raises money for the state ’s General Fund, and 2.06  percent raises money the state provides to counties for various local programs.
https://lao.ca.gov/Publications/Report/4040

The 2019-20 Budget: Analysis of Proposed Earned Income Tax Credit Expansion

Mar 6, 2019 - Under the administration ’s current estimates, however, the state EITC (including this expansion) is expected to cost $ 410  m illion in 2018 ‑19. State Provides Funding for Outreach. Many community ‑based organizations and other state and local government agencies (such as school districts and county social services offices) engage in efforts to raise awareness about the state and federal EITC.
https://lao.ca.gov/Publications/Report/3960

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

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