The 2021-22 Budget: Business Tax Incentives

Jan 28, 2021 - These requirements make participation more costly, but they have led to greater transparency than the state typically provides regarding the use of tax expenditures. Benefits Occur Gradually. Historically, the usage rate of exclusions has peaked one to two years after the participant receives the award.
https://lao.ca.gov/Publications/Report/4327

Evaluation of a Tax Exemption for Zero-Emission Buses

Apr 15, 2024 - As such, ongoing General Fund commitments —including tax expenditures —should clear a very high bar of need. For example, it could make sense to limit these commitments to proven ways of (1)  addressing critical health and safety issues or (2)  preventing serious deterioration of core state responsibilities.
https://lao.ca.gov/Publications/Report/4890

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

May 20, 2020 - LAO Alternatives Eliminating or Modifying Other Tax Expenditures Worth Consideration. In addition to the business tax provisions put forward by the Governor, we suggest the Legislature —should it wish to pursue revenue solutions —consider alternative revenue options.
https://lao.ca.gov/Publications/Report/4238

An Initial Look at Effects of the COVID-19 Pandemic on Local Government Fiscal Condition

May 12, 2021 - Significant Reliance on Sales Tax Revenue. Many cities rely on sales tax revenue as a major revenue source for their budget. In the case of the 24 c ities most reliant on sales tax (the top 5 p ercent), sales and use tax collections in 2018 ‑ 19 c onstituted between 31 p ercent and 70 p ercent of total local revenues.
https://lao.ca.gov/Publications/Report/4428

Assessing Recent Changes to California Competes

Mar 30, 2020 - Periodically reviewing tax expenditures such as California Competes is important because, like direct state expenditures, they have budgetary costs. Such reviews can help policymakers assess whether a tax expenditure is effective and merits continued financial support from the taxpayers.
https://lao.ca.gov/Publications/Report/4213

The 2025-26 Budget: Natural Resources and Agriculture Discretionary Spending Proposals

Feb 18, 2025 - As we discuss in our January 2025 report, The 2025‑26 Budget: Overview of the Governor’s Budget , the Governor proposes $2.2 billion in actions that would create capacity in the General Fund to support $570 million of discretionary proposals (including the three proposals discussed in this brief), $150 million of tax expenditures, and a larger discretionary reserve than the state typically plans.
https://lao.ca.gov/Publications/Report/4967

Annual Report on Tax Exemptions for Medicinal Cannabis [Publication Details]

Jun 24, 2025 - Annual Report on Tax Exemptions for Medicinal Cannabis [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5059

Annual Report on Tax Exemptions for Medicinal Cannabis

Jun 24, 2025 - Annual Report on Tax Exemptions for Medicinal Cannabis June 24, 2025 Annual Report on Tax Exemptions for Medicinal Cannabis Statutory Data Reporting Requirement. Chapter  837 of 2019 (SB  34, Wiener) established new tax exemptions for donations of medicinal cannabis.
https://lao.ca.gov/Publications/Report/5059

The 2024-25 Budget: Property Tax Postponement Program [EconTax Blog]

Feb 29, 2024 - Administrative Costs Are a Large Share of Program Expenditures. Administrative costs in 2022-23 were about $2.6 million —or nearly $2,000 per program participant. State administrative costs as a share of program expenditures are very high —projected to be over 30 percent of overall program spending and over 50 percent of revenue in 2024-25.
https://lao.ca.gov/LAOEconTax/Article/Detail/800

The 2025-26 Budget: Update on Implementation of New Firearm and Ammunition Tax

Feb 19, 2025 - Chapter  231 directed the Director of the Department of Finance to transfer $2.4  million from the General Fund to CDTFA as a loan to implement this new tax. Chapter  231 also requires that the loan be repaid with collected excise tax revenues, prior to any of the expenditures from the new GVPSS Fund. 2024-25 Budget Package Specified One-Time Allowable Use of California Department of Education (CDE) 2025-26 Allocation.
https://lao.ca.gov/Publications/Report/4970