The 2026-27 Budget: State Mandate—Disclosure Requirements and Deferral of Property Taxation

Feb 19, 2026 - Property owners seeking tax relief under Proposition  19 must file a claim with the county in which the new (replacement) residence is located. After Proposition  19 went into effect, a backlog of claims developed, and some tax bills were sent to property owners that had not been updated to reflect the lower amounts they were entitled to pay under the terms of Proposition  19.
https://lao.ca.gov/Publications/Report/5130

The 2026-27 Budget: CDTFA’s Cannabis and Tobacco Programs

Feb 23, 2026 - As far as we know, Proposition  64 and the Legislature ’s budget actions have not conveyed any intent to use the General Fund to support the Cannabis Tax Program. In contrast, as noted above, Proposition  64 authorizes continuous appropriations from the Cannabis Tax Fund to pay for the Cannabis Tax Program, requiring no action by the Legislature.
https://lao.ca.gov/Publications/Report/5132

The 2025-26 Budget: CDTFA’s Tobacco Programs

Feb 14, 2025 - In this post, we provide information to support the Legislature’s oversight of the Department of Tax and Fee Administration’s (CDTFA’s) tobacco programs. In particular, we offer background information; comments on revenue trends, CDTFA’s enforcement activities, and the AB 3218 budget change proposal (BCP); and questions that budget subcommittees may wish to ask about these issues.
https://lao.ca.gov/Publications/Report/4966

The 2025-26 California Spending Plan: Other Provisions

Oct 16, 2025 - The spending plan includes $169  million for CDFA from Proposition  4, which we discuss in more detail in a separate budget and policy post — The 2025-26 California Spending Plan: Proposition 4. Baseline Ongoing Reductions.
https://lao.ca.gov/Publications/Report/5081/

The 2023-24 Budget: Multiyear Budget Outlook

May 23, 2023 - These formulas include spending on schools and community colleges (under Proposition  98 [1988]), as well as debt payments and reserve deposits (under the rules of Proposition  2  [2014]). If the Legislature adopts the administration ’s revenue estimates —and does not solve the additional budget problem we identify above —we anticipate there will be a revenue shortfall in 2023 ‑24.
https://lao.ca.gov/Publications/Report/4772

Effect of Returning to Historical Estimated Tax Payment Schedule

Feb 27, 2023 - The revenue shift also would have minor effects on Proposition  2 (2014) reserve requirements. Administrative Costs. The Franchise Tax Board estimates that returning estimated payments to four equal payments would result in one-time administrative costs of $151,000 in 2023 ‑24.
https://lao.ca.gov/Publications/Report/4722

The 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - Proposition   63 o f 2004 e stablished a 1  p ercent surcharge (part of the 13. 3  p ercent top PIT rate) on incomes above $ 1  m illion. The proceeds from this surcharge are deposited in the Mental Health Services Fund (MHSF) and used to fund local mental health programs.
https://lao.ca.gov/Publications/Report/4327