California’s Low-Wage Workers and Minimum Wage

Mar 11, 2024 - They find that the quantile selection model developed by Arellano and Bonhomme (2017) noticeably outperforms the conventional weighting approach in this context. Accordingly, as described below, our wage percentile estimates are b ased on the Arellano and Bonhomme (2017) approach.
https://lao.ca.gov/Publications/Report/4878/4

The 2023-24 Budget: California's Film Tax Credit

Feb 28, 2023 - From 2017  to 2021, around $500  million in credits ($275  million from Program  2.0) have been claimed against corporation taxes. Over the same time period, around $300  million in credits were claimed against the sales tax.
https://lao.ca.gov/Publications/Report/4713

Assessing Recent Changes to California Competes

Mar 30, 2020 - For general information about the administration of California Competes, please refer to our October 2017 Review of the California Competes Tax Credit report. California Competes Cost $57   Million in 2018.
https://lao.ca.gov/Publications/Report/4213

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

May 20, 2020 - In 2017, federal law changed to allow filers to deduct interest on only $750,000 of mortgage debt plus up to $100,000 of home equity debt used to improve the property. The change applies to loans made after December 15, 2017.
https://lao.ca.gov/Publications/Report/4238

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

Mar 23, 2020 - Figure  3 shows that financial companies own 55  p ercent —nearly $ 18  t rillion in 2017 —of the total assets owned by all LLCs and partnerships. Governor’s Proposal Extend the First ‑Year Minimum Franchise Tax Exemption to Noncorporate Businesses.
https://lao.ca.gov/Publications/Report/4207

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

Mar 20, 2020 - CDTFA audited roughly 2  percent of accounts in 2017 and 2018 —well short of the 3 percent requirement. The International Fuel Tax Association plans to review California ’s compliance with the agreement in 2021.
https://lao.ca.gov/Publications/Report/4205

The 2022-23 Budget: Fuel Price and Other Fiscal Relief Options

May 12, 2022 - Figure  1 illustrates these trends, displaying the percentage increase in prices for items in the Los  Angeles metro area from January 2017 through March  2022. While prices in general have increased, the price of motor fuels and electricity have grown even more significantly when compared to other items, as highlighted in the figure.
https://lao.ca.gov/Publications/Report/4597

The 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - Prior to the 2017 federal tax changes, there was no upper limit on the amount of state and local taxes a filer could deduct. New Proposed Federal Rule Excludes Entity ‑Level Taxes From $10,000 Limit.
https://lao.ca.gov/Publications/Report/4327

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

Jan 13, 2020 - This is because they attribute the pattern to partnerships, which are taxed under the personal income tax, changing to corporations in response to 2017 federal tax changes. This assumption is plausible, but there currently is limited evidence to support it.
https://lao.ca.gov/Publications/Report/4135