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Major taxes and fees introduced by California lawmakers. TAX WATCH June 2, 2015
Estimated Annual Cost to Taxpayers:
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Major taxes and fees introduced by California lawmakers.
TAXWATCH
June 2, 2015
Estimated Annual Cost to Taxpayers:
Page 2
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TAX WATCH
California lawmakers have introduced 39 bills that cumulatively would cost taxpayers more than $132 billion annually in higher taxes and fees.
$132 Billion
In the current legislative session, California lawmakers have proposed tax and fee increases totaling more than $132 billion per year. This comes at a time when revenue has surged past
last year’s General Fund collections by more than $10 billion. Additionally, new programs (such as the cap-and-trade program) are expected to generate Special Fund revenue of more than $3 billion next year.
Since the start of the legislative session in December, lawmakers have introduced 2,571 bills. CalTax identified 39 bills that would increase taxes, fees, assessments or other charges, and found:
The single largest tax proposal – SB 8 (Hertzberg) – would • cost taxpayers an estimated $122.63 billion annually, according to an analysis by the State Board of Equalization. The remaining proposals would increase taxpayer costs by more than $10.34 billion.
The estimated impact on taxpayers was not quantifiable for • 17 bills.
Of the 39 bills, 25 were introduced by members of the • Assembly, and 14 by members of the Senate.
Of the 39 bills, five were introduced by legislators who were • first elected in November 2014.
The five most costly tax proposals:
Sales Tax on Services – $122.63 Billion. SB 8 1. (Hertzberg) extends the sales and use tax to include services, which currently are not taxed. The bill’s author has stated his intent to exempt from taxation healthcare and education services, and “very small businesses with $100,000 gross sales” or less.
Higher Taxes for Roads and Highways – $3.5 Billion. SB 2. 16 (Beall) increases various transportation-related taxes and fees (including the car tax and gas tax) to provide additional funding for roads, highways and other transportation infrastructure.
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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Chart Title
Services Tax Transportation Targeted Tax Sales Tax Property Related Tax Income Tax
TAX WATCH
Tax-Like “Fee” on Soda – $3.3 Billion. AB 1357 3. (Bloom) imposes a tax-like “fee” on every person, manufacturer, and wholesale dealer who receives, stores, manufacturers, bottles or distributes sugar-sweetened beverages, at a rate of 2 cents per fluid ounce.
Tobacco Tax Increase – $1.3 Billion. SB 591 4. (Pan) imposes an additional $2 tax on every pack of cigarettes.
Sales Tax Increase for Los Angeles County MTA – $800 Million. 5. AB 338 (Roger Hernández) and SB 767 (de León) authorize the Los Angeles County Metropolitan Transportation Authority (MTA) to impose a transactions (sales) and use tax at a rate of 0.5 percent, in addition to the MTA’s existing 0.5 percent tax, subject to the adoption of an expenditure plan and voter approval.
Methodology
CalTax searched every bill introduced or amended between December 1, 2014 and May 29, 2015, for tax- and fee-related provisions. Under Proposition 26, a tax is defined as any levy or exaction that results in a taxpayer paying a higher tax, including any unreasonable or excessive fee. This report includes any bill that imposes or authorizes higher taxes or tax-like “fees,” as well as any bill that increases a regulatory and license fee, user charge, or other cost charged for receiving a specific government service or benefit. Legislation imposing fines, penalties and other costs associated with violating state or local laws have been excluded. This report also excludes legislation that would generate less than $5 million in net revenue.
Our report also notes whether a proposal is no longer active due to legislative procedural rules, or if a lawmaker has amended the bill to remove the proposed tax or fee. Budget trailer bills were not included in the report, as none were in print at the time of our review.
Revenue estimates were taken from legislative committee and floor analyses, and analyses from the state tax agencies. When an estimate had not been prepared for a bill, CalTax used recent data from prior legislative or agency analyses of similar legislation. For estimates providing a revenue range, the lowest figure was used to calculate a revenue total. Also, duplicative bills imposing identical taxes or fees were included in this report, but were counted only once for purposes of calculating a revenue total.
Major Tax and Fee Proposals by Subject Area
Services Tax, $122.63 Billion
Other, $10.34 Billion
Transportation,$3.5 Billion
Property-Related,
$522.8 Million
Sales and Use,$854.07 Million
Targeted Taxes,$5.14 Billion
Income Tax,$320 Million
Estimated Annual Cost to Taxpayers:
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TAX WATCHBill Estimated Annual
Cost to Taxpayers Status
Sales Tax on Services – SB 8 (Hertzberg) $122.63 Billion
Higher Taxes for Roads and Highways – SB 16 (Beall) $3.5 Billion
Tax-Like “Fee” on Soda – AB 1357 (Bloom)** $3.3 Billion
Tobacco Tax Increase – SB 591 $1.3 Billion
Potential L.A. County MTA Sales Tax Increase – AB 338 (Roger Hernández) and SB 767 (de León)*** $800 Million
Corporate Tax Increase – SB 684 (Hancock) $320 Million
Real Estate Documents Tax – AB 1335 (Atkins) $300 Million – $500 Million or More*
Tax on Marijuana – AB 26 (Jones-Sawyer), AB 34 (Bonta), AB 266 (Cooley), and SB 643 (McGuire)*** $200 Million or More*
Tax on Insurance Policies – AB 1203 (Jones-Sawyer) $200 Million
Healthcare Provider Tax – AB 1434 (McCarty) $150 Million
Beverage Container Fee Increase – SB 732 (Pan) $60 Million – $80 Million*
Sales and Use Tax Rate Limit – AB 464 (Mullin)** Tens of Millions of Dollars to Several Billion Dollars*
Online Gambling Registration Fee – AB 9 (Gatto) and AB 167 (Jones-Sawyer) $34 Million to $51 Million*
Key
* The estimate for this bill contains a range. For purposes of calculating a revenue total for the report, the lowest figure in the range was used.
** No revenue estimate was prepared for this bill. The estimate for this bill came from legislative or tax agency analysis on a similar bill for a prior session of the Legislature.
*** Similar or identical versions of this bill were introduced. For purposes of calculating a revenue total, the revenue effect was counted only once.
This legislation is active and moving through the Legislature.
The bill has been placed on a committee’s suspense file and could be acted upon at a later date.
The bill is effectively “dead” because: 1) the tax/fee provisions of the bill have been amended out of the current version of the bill; 2) the bill failed a deadline, but could be brought back if legislative rules are suspended or waived, or if other action is taken; 3) the author has made the bill a “two-year” bill and could bring the bill up for a vote next year; or 4) the bill was rejected by a house of the Legislature or legislative committee, but could be revived upon reconsideration.
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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Bill Estimated Annual Cost to Taxpayers Status
Tire Recycling Fee Expansion – AB 1239 (Gordon) $41.9 Million
Heavy Equipment In-Lieu Tax – SB 480 (Pan) $22.8 Million
Tax on Hazardous Waste Transported by Surface Carriers – AB 102 (Rodriguez) $10 Million
Fireworks Fee – SB 677 (Mendoza) $7 Million
Medical Marijuana Permit Fee Increase – AB 243 (Wood) $6 Million
Craft Beer Event Permit Fee – AB 776 (Cooper) Estimate Unavailable
Court Reporting Fee Increase – AB 804 (Roger Hernández) Estimate Unavailable
Solid Waste Disposal Fee Increase – AB 1063 (Williams) Estimate Unavailable
Isla Vista Utility Users’ Tax – AB 3 (Williams) Estimate Unavailable
Regional Center Parental Fee Increase – AB 564 (Eggman) Estimate Unavailable
Mobile Home Gas-Line Fee – AB 682 (Williams) Estimate Unavailable
Tax on Public Safety Officers’ Benefit and Relief Associations – AB 1072 (Daly) Estimate Unavailable
Financial Service Provider Fee – AB 1341 (Brown) Estimate Unavailable
Disability Access Fee Extension – AB 1342 (Steinorth) Estimate Unavailable
TAX WATCH
Key
* The estimate for this bill contains a range. For purposes of calculating a revenue total for the report, the lowest figure in the range was used.
** No revenue estimate was prepared for this bill. The estimate for this bill came from legislative or tax agency analysis on a similar bill for a prior session of the Legislature.
*** Similar or identical versions of this bill were introduced. For purposes of calculating a revenue total, the revenue effect was counted only once.
This legislation is active and moving through the Legislature.
The bill has been placed on a committee’s suspense file and could be acted upon at a later date.
The bill is effectively “dead” because: 1) the tax/fee provisions of the bill have been amended out of the current version of the bill; 2) the bill failed a deadline, but could be brought back if legislative rules are suspended or waived, or if other action is taken; 3) the author has made the bill a “two-year” bill and could bring the bill up for a vote next year; or 4) the bill was rejected by a house of the Legislature or legislative committee, but could be revived upon reconsideration.
Estimated Annual Cost to Taxpayers:
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TAX WATCHBill Estimated Annual
Cost to Taxpayers Status
Fee on Independent Expenditure Committees – AB 1494 (Levine) Estimate Unavailable
Potential for Higher Local Transportation Taxes – ACA 4 (Frazier) Estimate Unavailable
Medi-Cal Application Fee – SB 299 (Monning) Estimate Unavailable
Expansion of Hotel Taxes– SB 593 (McGuire) Estimate Unavailable
Tax on Municipal Bond Interest – SB 710 (Galgiani) Estimate Unavailable
Law Library Fee Increase – SB 711 (Wolk) Estimate Unavailable
Potential for Higher Local Taxes – SCA 5 (Hancock) Estimate Unavailable
Key
* The estimate for this bill contains a range. For purposes of calculating a revenue total for the report, the lowest figure in the range was used.
** No revenue estimate was prepared for this bill. The estimate for this bill came from legislative or tax agency analysis on a similar bill for a prior session of the Legislature.
*** Similar or identical versions of this bill were introduced. For purposes of calculating a revenue total, the revenue effect was counted only once.
This legislation is active and moving through the Legislature.
The bill has been placed on a committee’s suspense file and could be acted upon at a later date.
The bill is effectively “dead” because: 1) the tax/fee provisions of the bill have been amended out of the current version of the bill; 2) the bill failed a deadline, but could be brought back if legislative rules are suspended or waived, or if other action is taken; 3) the author has made the bill a “two-year” bill and could bring the bill up for a vote next year; or 4) the bill was rejected by a house of the Legislature or legislative committee, but could be revived upon reconsideration.
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Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 3Isla Vista Utility Users’ Tax
ASSEMBLYMAN DAS WILLIAMS
AB 3 (Williams) establishes the Isla Vista Community Services District and authorizes the district to impose a utility users’ tax. Historically, the UUT has been a revenue source reserved for cities and counties. If the district is established and imposes the tax, it would be the only special district to impose a UUT.
Status: Active
Version Reviewed: Amended – May 5, 2015
Legislative Vote Needed for Approval: Majority
Assembly District 37 (Santa Barbara)
State Capitol, Room 4005 Sacramento, CA 95814
(916) 319-2037
http://asmdc.org/members/a37/Unavailable
Estimated Annual Cost to Taxpayers:
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AB 9Online Gambling Fee
ASSEMBLYMAN MIKE GATTO
AB 9 (Gatto) provides a broad outline for authorizing intrastate Internet poker that includes a 10-year licensing program requiring a one-time license deposit of $5 million, which will be credited against quarterly regulatory fees. Among other things, the bill also establishes a gambling enforcement fund to pay for enforcement of the provisions of the bill and requires an annual report to the Legislature from the Department of Justice, the Franchise Tax Board, and the state treasurer on the state’s efforts to meet the policy goal of the legalization of Internet poker.
Status: Active
Version Reviewed: Introduced – December 1, 2014
Legislative Vote Needed for Approval: Two-Thirds
$51 Million
Assembly District 43 (Burbank)
State Capitol, Room 3152Sacramento, CA 95814
(916) 319-2043
http://asmdc.org/members/a43
Source: Franchise Tax Board
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 26Tax on MarijuanaAB 26 (Jones-Sawyer) establishes the Medical Cannabis Regulation and Control Act, for the purposes of regulating medical marijuana industries. Among other things, the bill authorizes the board of supervisors of a county to impose a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling or distributing medical marijuana or marijuana products, including a sales tax at any rate specified by the board, subject to voter approval.
Status: Dead – Failed deadline pursuant to Rule 61(a)(2).
Version Reviewed: Introduced – December 1, 2014
Legislative Vote Needed for Approval: Majority
The Legislative Analyst’s Office has estimated that similar statewide ballot initiatives would increase state and local revenue by up to several hundred million dollars.
ASSEMBLYMAN REGINALD B. JONES-SAWYER, SR.
Assembly District 59 (Los Angeles)
State Capitol, Room 4126Sacramento, CA 95814
(916) 319-2059
http://asmdc.org/members/a59
Estimated Annual Cost to Taxpayers:
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AB 34Tax on Marijuana
ASSEMBLYMAN ROB BONTA
AB 34 (Bonta) establishes the Medical Cannabis Regulation and Control Act, for the purposes of regulating medical marijuana industries. Among other things, the bill authorizes the board of supervisors of a county to impose a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling or distributing medical marijuana or marijuana products, including a sales tax at any rate specified by the board, subject to voter approval.
Status: Active
Version Reviewed: Amended – May 20, 2015
Legislative Vote Needed for Approval: Majority
The Legislative Analyst’s Office has estimated that similar statewide ballot initiatives would increase state and local revenue by up to several hundred million dollars.
Assembly District 18 (Oakland)
State Capitol, Room 6005Sacramento, CA 95814
(916) 319-2018
http://asmdc.org/members/a18
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 102
$10 Million
Tax on Hazardous Waste Transported by Surface Carriers
ASSEMBLYMAN FREDDIE RODRIGUEZ
AB 102 (Rodriguez) establishes a schedule of “fees,” the amount of which is determined by the director of the Office of Emergency Services, assessed on the owners of hazardous waste at the time it is transported by rail or surface transportation. The purpose of the “fees” is to fund response programs to hazardous waste spills.
Status: Dead – Failed deadline pursuant to Rule 61(a)(2).
Version Reviewed: Amended – March 26, 2015
Legislative Vote Needed for Approval: Majority
Assembly District 52 (Chino)
State Capitol, Room 6025Sacramento, CA 95814
(916) 319-2052
http://www.asmdc.org/members/a52/
Source: Department of Finance
Estimated Annual Cost to Taxpayers:
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AB 167Online Gambling Fee
ASSEMBLYMAN REGINALD B. JONES-SAWYER, SR.
AB 167 (Jones-Sawyer) provides a broad outline for authorizing intrastate Internet poker that includes a four-year licensing program requiring a one-time license deposit of $10 million, which would be credited against quarterly regulatory fees. Among other things, the bill also establishes a gambling enforcement fund to fund enforcement of the provisions of the bill.
Status: Active
Version Reviewed: Introduced – January 22, 2015
Legislative Vote Needed for Approval: Two-Thirds
$34 Million
Assembly District 59 (Los Angeles)
State Capitol, Room 4126Sacramento, CA 95814
(916) 319-2059
http://asmdc.org/members/a59
Source: Franchise Tax Board
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 243Medical Marijuana Permit Fee
ASSEMBLYMAN JIM WOOD
AB 243 (Wood) authorizes a city, including the city and county of San Francisco, or a state agency to charge a permit fee to regulate the cultivation of marijuana. Additionally, the bill requires a designated state agency or local government to charge a fee to cover the reasonable costs of issuing identification tags, monitoring, tracking, and inspecting plants, and for enforcing specified requirements.
Status: Active
Version Reviewed: Amended – April 22, 2015
Legislative Vote Needed for Approval: Majority
$6 Million
Assembly District 2 (Santa Rosa)
State Capitol, Room 5164Sacramento, CA 95814
(916) 319-2002
http://asmdc.org/members/a02/
Source: Assembly Appropriations Committee
Estimated Annual Cost to Taxpayers:
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AB 266Tax on Marijuana
ASSEMBLYMAN KEN COOLEY
AB 266 (Cooley) establishes a statewide medical marijuana regulatory scheme, including provisions authorizing county boards of supervisors to impose, by ordinance and voter approval, a non-uniform, multilevel tax on cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling or distributing marijuana, which may include a transactions (sales) and use tax imposed solely on marijuana at any rate (not subject to the 2 percent statutory limit), and authorizing unspecified licensing fees.
Status: Active
Version Reviewed: Amended – May 11, 2015
Legislative Vote Needed for Approval: Majority
The Legislative Analyst’s Office has estimated that similar statewide ballot initiatives would increase state and local revenue by up to several hundred million dollars.
Assembly District 8 (Rancho Cordova)
State Capitol, Room 3146Sacramento, CA 95814
(916) 319-2008
http://asmdc.org/members/a08
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 338Potential Los Angeles County MTA Sales Tax Increase
ASSEMBLYMAN ROGER HERNáNDEZ
AB 338 (Roger Hernández) authorizes the Los Angeles County Metropolitan Transportation Authority (MTA) to impose a transactions (sales) and use tax at a rate of 0.5 percent, in addition to the MTA’s existing 0.5 percent tax, for 30 years; and allocates 20 percent of revenue collected from the tax to bus operations, and 5 percent to rail operations.
Status: Active
Version Reviewed: Amended – April 13, 2015
Legislative Vote Needed for Approval: Majority
$800 Million
Assembly District 48 (West Covina)
State Capitol, Room 5016Sacramento, CA 95814
(916) 319-2048
http://asmdc.org/members/a48
Source: State Board of Equalization
Estimated Annual Cost to Taxpayers:
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AB 464Sales and Use Tax Rate Limit Increase
ASSEMBLYMAN KEVIN MULLIN
AB 464 (Mullin) increases the maximum allowable combined city and county (and certain authorized special districts) sales tax rate from 2 percent to 3 percent, bringing the maximum state and local combined sales and use tax to 10.5 percent. If AB 338 or SB 767, along with AB 464, are approved, the highest maximum state and local sales tax in California would be 11.5 percent.
Status: Active
Version Reviewed: Amended – April 6, 2015
Legislative Vote Needed for Approval: Majority
While an official estimate was not prepared by the State Board of Equalization, this bill could potentially cost taxpayers anywhere from tens of millions of dollars annually up to several billion dollars annually.
Assembly District 22 (San Mateo)
State Capitol, Room 3160Sacramento, CA 95814
(916) 319-2022
http://asmdc.org/members/a22
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 564Regional Center Parental Fee
ASSEMBLYWOMAN SUSAN TALAMANTES EGGMAN
AB 564 (Eggman) authorizes the director of the Department of Developmental Services to adjust the “parental fees” charged for services received through regional centers that help individuals with developmental disabilities, and their families. The fee would be adjusted for the parents’ income level and the number of people living in the family home.
Status: Active
Version Reviewed: Amended – May 6, 2015
Legislative Vote Needed for Approval: Majority
Unavailable
Assembly District 13 (Stockton)
State Capitol, Room 3173Sacramento, CA 95814
(916) 319-2013
http://asmdc.org/members/a13
Estimated Annual Cost to Taxpayers:
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AB 682Mobile Home Gas Fee
ASSEMBLYMAN DAS WILLIAMS
AB 682 (Williams) authorizes the Public Utilities Commission to impose a reasonable hourly “technical service fee” to inspect alterations or conversions of gas lines into a mobile home.
Status: Active
Version Reviewed: Amended – May 13, 2015
Legislative Vote Needed for Approval: Majority
Unavailable
Assembly District 37 (Santa Barbara)
State Capitol, Room 4005 Sacramento, CA 95814
(916) 319-2037
http://asmdc.org/members/a37/
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 776Craft Beer Event Fee
ASSEMBLYMAN JIM COOPER
AB 776 (Cooper) authorizes the Department of Alcoholic Beverage Control to allow beer manufacturers to hold sales events on their property upon paying an event permit fee of $110, and an event authorization fee of no more than $25 per each approved event.
Status: Active
Version Reviewed: Amended – April 15, 2015
Legislative Vote Needed for Approval: Majority
Unavailable
Assembly District 9 (Elk Grove)
State Capitol, Room 5158Sacramento, CA 95814
(916) 319-2009
http://asmdc.org/members/a09
Estimated Annual Cost to Taxpayers:
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AB 804Court Reporting FeeAB 804 (Roger Hernández) authorizes the Court Reporters Board of California to impose a fee of up to $40 to establish minimum approved continuing education requirements when renewing a shorthand reporter’s certificate.
Status: Active
Version Reviewed: Amended – March 23, 2015
Legislative Vote Needed for Approval: Majority
This bill will not impose significant costs on taxpayers, according to the Assembly Appropriations Committee analysis.
ASSEMBLYMAN ROGER HERNáNDEZ
Assembly District 48 (West Covina)
State Capitol, Room 5016Sacramento, CA 95814
(916) 319-2048
http://asmdc.org/members/a48
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 1063Solid Waste Fee IncreaseAB 1063 (Williams) increases the fee charged to dispose of solid waste from the current maximum of $1.40 per ton, specifying that any additional amount shall be used for the reasonable regulatory costs incurred by the Department of Resources Recycling and Recovery. These provisions were amended out of the bill on April 20, and the bill now directs CalRecycle to develop a plan for modifying the fee and to submit a report to the Legislature.
Status: Active
Version Reviewed: Amended – April 20, 2015
Legislative Vote Needed for Approval: Majority
The costs of this proposal are unavailable, as CalRecycle would be provided additional authorization to increase this fee. Currently, the fee generates more than $40 million annually.
ASSEMBLYMAN DAS WILLIAMS
Assembly District 37 (Santa Barbara)
State Capitol, Room 4005 Sacramento, CA 95814
(916) 319-2037
http://asmdc.org/members/a37/
Estimated Annual Cost to Taxpayers:
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AB 1072Tax on Public Safety Relief and Benefit Associations
ASSEMBLYMAN TOM DALY
AB 1072 (Daly) enacts new provisions governing public safety benefit and relief associations and imposes additional annual tax of $350 on top of the existing $590 filing fee for the application to receive an operation certificate. Amendments to the bill on April 28, 2015, deleted the tax provisions.
Status: Dead – Tax provisions were amended out of the bill.
Version Reviewed: Amended – April 13, 2015
Legislative Vote Needed for Approval: Majority
Unavailable
Assembly District 69 (Anaheim)
State Capitol, Room 3126Sacramento, CA 95814
(916) 319-2069
http://asmdc.org/members/a69/
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 1203Fire Tax on Insurance PoliciesAB 1203 (Jones-Sawyer) repeals the State Responsibility Area “fire prevention fee” (also known as the fire tax), which funds rural areas serviced by the California Department of Forestry & Fire Protection (CalFire), and instead imposes a tax-like “surcharge” on commercial, residential, and multi-peril insurance policies issued or renewed on or after January 1, 2016. The new surcharge is earmarked to fund the Governor’s Office of Emergency Services, CalFire, the California Military Department and local fire protection districts for disaster preparedness and response.
Status: Dead – Author will not be moving bill. Joint Rule 62(a) Suspended.
Version Reviewed: Amended – April 6, 2015
Legislative Vote Needed for Approval: Two-Thirds
$200 Million
ASSEMBLYMAN REGINALD BYRON JONES-SAWYER, SR.
Assembly District 59 (South Los Angeles)
State Capitol, Room 4126Sacramento, CA 95814
(916) 319-2059
http://asmdc.org/members/a59/
Source: Assembly Natural Resources Committee analysis of AB 468 of 2013 (amended 4/8/2013)
Estimated Annual Cost to Taxpayers:
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AB 1239Tire Recycling Fee ExpansionAB 1239 (Gordon) requires a waste tire generator to pay a fee not to exceed $1.25 per new tire sold, to pay for costs incurred by the Department of Resources Recycling and Recovery to issue licenses and administer the department’s regulatory program.
Status: Active
Version Reviewed: Amended – May 5, 2015
Legislative Vote Needed for Approval: Majority
$41.9 Million
ASSEMBLYMAN RICHARD S. GORDON
Assembly District 24 (Los Altos)
State Capitol, Room 3013Sacramento, CA 95814
(916) 319-2024
http://asmdc.org/members/a24
Source: State Board of Equalization
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 1335Real Estate Documents Tax
ASSEMBLY SPEAKER TONI ATKINS
AB 1335 (Atkins) imposes a $75 tax on most recorded real estate documents to fund affordable housing and other housing-related programs. The tax would be capped at $225 per single transaction.
Status: Active
Version Reviewed: Amended – May 14, 2015
Legislative Vote Needed for Approval: Two-Thirds
$300 Million to $500 Million
Assembly District 78 (San Diego)
State Capitol, Room 219Sacramento, CA 95814
(916) 319-2078
http://asmdc.org/speaker/
Source: Assembly Appropriations Committee
Estimated Annual Cost to Taxpayers:
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AB 1341Financial Service Provider Fee
ASSEMBLYWOMAN CHERYL BROWN
AB 1341 (Brown) increases the minimum fee imposed for a license under the Check Sellers, Bill Payers and Proraters Law from $150 to $1,000, and increases the fee under the California Finance Lenders Law from $250 to $800.
Status: Dead – Failed Deadline pursuant to Rule 61(a)(2).
Version Reviewed: Introduced – February 27, 2015
Legislative Vote Needed for Approval: Majority
Unavailable
Assembly District 47 (San Bernardino)
State Capitol, Room 2136Sacramento, CA 95814
(916) 319-2047
http://asmdc.org/members/a47
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 1342Disability Access Fee
ASSEMBLYMAN MARC STEINORTH
AB 1342 (Steinorth) extends a $1 fee paid by applicants for a local business license or equivalent permit. Absent an extension, the fee will sunset December 31, 2018. The fee will be allocated to local governments and to the Disability Access and Education Revolving Fund.
Status: Active
Version Reviewed: Amended – April 28, 2015
Legislative Vote Needed for Approval: Two-Thirds
Unavailable
Assembly District 40 (Rancho Cucamonga)
State Capitol, Room 2111Sacramento, CA 95814
(916) 319-2040
http://ad40.asmrc.org/
Estimated Annual Cost to Taxpayers:
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AB 1357Tax-Like “Fee” on Soda
ASSEMBLYMAN RICHARD BLOOM
AB 1357 (Bloom) imposes a tax-like “fee” on every person, manufacturer, and wholesale dealer who receives, stores, manufacturers, bottles or distributes sugar-sweetened beverages, at a rate of 2 cents per fluid ounce. The State Board of Equalization would be responsible for administering the tax and registering feepayers, and funds would be allocated to a special account to finance statewide diabetes and childhood obesity treatment programs and grants.
Status: Dead – Failed passage. Reconsideration granted.
Version Reviewed: Amended – April 29, 2015
Legislative Vote Needed for Approval: Two-Thirds
$3.3 Billion
Assembly District 50 (Santa Monica)
State Capitol, Room 2003Sacramento, CA 95814
(916) 319-2050
http://asmdc.org/members/a50
Source: State Board of Equalization analysis of SB 622 (DeSaulnier) of 2013
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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AB 1434Healthcare Tax Change
ASSEMBLYMAN KEVIN McCARTY
AB 1434 (McCarty) modifies state law to require all preferred provider organizations (PPOs) to pay the insurance gross premiums tax, rather than the corporate franchise/income tax. A fact sheet prepared by the author’s office estimates that the bill would result in a tax increase of approximately $150 million annually.
Status: Dead – Failed Deadline pursuant to Rule 61(a)(2).
Version Reviewed: Amended – April 20, 2015
Legislative Vote Needed for Approval: Majority
$150 Million
Assembly District 7 (Sacramento)
State Capitol, Room 2160Sacramento, CA 95814
(916) 319-2007
http://asmdc.org/members/a07/
Source: Office of Assemblyman Kevin McCarty
Estimated Annual Cost to Taxpayers:
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AB 1494Fee on Independent Expenditure Committees
ASSEMBLYMAN MARC LEVINE
AB 1494 (Levine) imposes an annual reporting fee on political activity, as follows: $100 for a committee spending up to $100,000; $1,000 for a committee spending up to $250,000; $2,000 for a committee spending up to $500,000; $10,000 for a committee spending up to $1 million; and $50,000 for a committee spending $10 million or more. Funds would be placed into the Civic Engagement Fund, to fund efforts to increase voter participation.
Status: Inactive – Held without recommendation.
Version Reviewed: Amended – April 22, 2015
Legislative Vote Needed for Approval: Two-Thirds
Unavailable
Assembly District 10 (Santa Rosa)
State Capitol, Room 2141Sacramento, CA 95814
(916) 319-2010
http://asmdc.org/members/a10
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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ACA 4Potential for Higher Local Taxes
ASSEMBLYMAN JIM FRAZIER
ACA 4 (Frazier) amends the state constitution to allow cities, counties, and special districts to impose special taxes (including sales taxes and parcel taxes) to fund local transportation projects with a vote of 55 percent of the electorate. Currently, two-thirds of voters must approve local special taxes.
Status: Active
Version Reviewed: Introduced – February 27, 2015
Legislative Vote Needed for Approval: Two-Thirds
While an estimate could not be identified for purposes of this report, ACA 4 could cost taxpayers billions of dollars annually.
Assembly District 11 (Fairfield)
State Capitol, Room 3091Sacramento, CA 95814
(916) 319-2011
http://asmdc.org/members/a11/
Estimated Annual Cost to Taxpayers:
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SB 8
$122.6 Billion
Sales Tax on Services
SENATOR ROBERT M. HERTZBERG
SB 8 (Hertzberg) imposes a sales and use tax and excise tax on services at an unspecified rate, effective January 1 of an unspecified year. The tax would be imposed upon sellers of taxable services, while the excise tax is on the buyer of services. Both would be imposed independently of each other. There are no exemptions, and “services” are not defined. While the bill does not specify a rate, the State Board of Equalization estimates that expanding the existing sales tax to untaxed services would generate an additional $122.63 billion in state and local revenue (this figure would be lower if the bill lowers the existing sales tax rate).
Status: Dead – Failed Deadline pursuant to Rule 61(a)(3).
Version Reviewed: Amended – February 10, 2015
Legislative Vote Needed for Approval: Majority
Senate District 18 (Van Nuys)
State Capitol, Room 4038Sacramento, CA 95814
(916) 651-4018
http://sd18.senate.ca.gov
Source: State Board of Equalization
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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SB 16Taxes for Roads and Highways
SENATOR JIM BEALL
SB 16 (Beall) increases the fuel tax 10 cents per gallon; increases the diesel fuel tax 12 cents per gallon; increases the “Vehicle License Fee” 0.07 percent; imposes an additional $35 “registration fee” for motor vehicles; imposes an additional $100 “registration fee” for zero-emission motor vehicles; and deposits revenue into a new transportation fund. The bill also sets aside 5 percent of revenue to support counties that pass sales tax measures to fund transportation projects after July 1, 2015. Redirects vehicle weight fee revenue to road projects.
Status: Active
Version Reviewed: Amended – May 13, 2015
Legislative Vote Needed for Approval: Two-Thirds
Senate District 15 (San Jose)
State Capitol, Room 5066Sacramento, CA 95814
(916) 651-4015
http://sd15.senate.ca.gov $3.5 BillionSource: Senate Transportation and Housing Committee
Estimated Annual Cost to Taxpayers:
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SB 299Medi-Cal Application Fee
SENATOR WILLIAM MONNING
SB 299 (Monning) specifies that the Department of Health Care Services is required to charge an application fee when an applicant applies for continued enrollment in the Medi-Cal program.
Status: Active
Version Reviewed: Amended – May 18, 2015
Legislative Vote Needed for Approval: Two-Thirds
Unavailable
Senate District 17 (Carmel)
State Capitol, Room 313Sacramento, CA 95814
(916) 651-4017
http://sd17.senate.ca.gov/
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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SB 480Heavy Equipment In-Lieu Tax
SENATOR RICHARD PAN
SB 480 (Pan) imposes a 0.75 percent tax on the rental price of qualified heavy equipment in lieu of a business personal property tax, to be administered by the State Board of Equalization beginning July 1, 2016. The measure includes provisions to backfill the loss of revenue to counties from the revenue generated from the in-lieu tax.
Status: Inactive – Held in committee and under submission.
Version Reviewed: Amended – April 29, 2015
Legislative Vote Needed for Approval: Two-Thirds
$22.8 Million
Senate District 6 (Sacramento)
State Capitol, Room 4070Sacramento, CA 95814
(916) 651-4006
http://senate.ca.gov/sd06
Source: State Board of Equalization
Estimated Annual Cost to Taxpayers:
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SB 591
$1.3 Billion
Tobacco Tax IncreaseSB 591 (Pan) imposes an additional $2 tax on every pack of cigarettes purchased in California. The bill becomes effective only upon passage of AB 1396, which specifies how the additional revenue will be allocated.
Status: Active
Version Reviewed: Amended – April 16, 2015
Legislative Vote Needed for Approval: Two-Thirds
SENATOR RICHARD PAN
Senate District 6 (Sacramento)
State Capitol, Room 4070Sacramento, CA 95814
(916) 651-4006
http://senate.ca.gov/sd06
Source: State Board of Equalization
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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Expansion of Hotel TaxesSB 593 (McGuire) authorizes a local government to require an operator of a hosting platform (including Airbnb, Craigslist, HomeAway, VRBO and others) used to book residential rentals to collect and remit hotel taxes. Under existing law, property owners must collect and remit hotel taxes. In fiscal year 2011-12, hotel taxes generated more than $1.5 billion for local governments – this bill likely would increase tax collections.
Status: Active
Version Reviewed: Amended – May 6, 2015
Legislative Vote Needed for Approval: Majority
Supporters of the bill noted that if hotel taxes were collected and remitted by one in 10 rentals that previously did not collect and remit, the bill would generate $150 million.
SENATOR MIKE McGUIRE
Senate District 2 (Santa Rosa)
State Capitol, Room 5064Sacramento, CA 95814
(916) 651-4002
http://sd02.senate.ca.gov/
SB 593
Estimated Annual Cost to Taxpayers:
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Tax on MarijuanaSB 643 (McGuire) enacts the Medical Marijuana and Public Safety and Environmental Protection Act for purposes of regulating the cultivation, sale, dispensing, etc., of medical marijuana. Among other things, the measure authorizes local governments, by ordinance, to impose a tax of any rate on the cultivation, processing, sale, etc., of medical marijuana.
Status: Active
Version Reviewed: Amended – May 6, 2015
Legislative Vote Needed for Approval: Majority
The Legislative Analyst’s Office has estimated that similar statewide ballot initiatives would increase state and local revenue by up to several hundred million dollars.
SB 643
SENATOR MIKE McGUIRE
Senate District 2 (Santa Rosa)
State Capitol, Room 5064Sacramento, CA 95814
(916) 651-4002
http://sd02.senate.ca.gov/
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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SB 677Tax-Like “Fee” on Fireworks
SENATOR TONY MENDOZA
SB 677 (Mendoza) imposes a tax-like “fee” on fireworks. The bill authorizes the Office of the State Fire Marshal and local governments to impose a “fee” to recover the costs associated with the seizure and disposal of illegal fireworks. The “fee” would be charged by a local government to each applicant receiving a fireworks sales permit, and the revenue would fund reasonable regulatory costs, educational campaigns regarding the safe use of fireworks, and fire operation and suppression activities.
Status: Inactive – Two-Year Bill
Version Reviewed: Amended – April 6, 2015
Legislative Vote Needed for Approval: Majority
State and local governments currently spend approximately $7 million annually to dispose of illegal fireworks. This bill would allow state and local governments to recover these costs with the proposed “fee.”
Senate District 32 (Montebello)
State Capitol, Room 5061Sacramento, CA 95814
(916) 651-4032
http://sd32.senate.ca.gov/
Estimated Annual Cost to Taxpayers:
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SB 684Corporate Tax Increase
SENATOR LONI HANCOCK
SB 684 (Hancock) imposes higher corporate tax rates on publicly held corporations that pay their chief operating officer or highest paid employee more than 100 times the corporation’s median salary for all workers. The bill imposes a corporate tax rate ranging from 7 percent to 13 percent (9 percent to 15 percent for financial institutions) based on a “compensation ratio,” and increases the tax rate by 50 percent for taxpayers that have a specified decrease in full-time employees in the United States while increasing the number of contracted and foreign full-time employees.
Status: Active
Version Reviewed: Introduced – February 27, 2015
Legislative Vote Needed for Approval: Two-Thirds
$320 Million
Senate District 9 (Oakland)
State Capitol, Room 2082Sacramento, CA 95814
(916) 651-4009
http://sd09.senate.ca.gov/
Source: Senate Floor Analysis of SB 1372 (Hancock) of 2014
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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SB 710Tax on Local Bond Interest
SENATOR CATHLEEN GALGIANI
SB 710 (Galgiani) authorizes a joint powers authority to issue bonds if proposed projects and their financing meet certain conditions; and eliminates the income exclusion for this local bond interest, taking California out of conformity with federal law and longstanding state tax policy.
Status: Active
Version Reviewed: Amended – May 28, 2015
Legislative Vote Needed for Approval: Two-Thirds
Unavailable
Senate District 5 (Stockton)
State Capitol, Room 2059Sacramento, CA 95814
(916) 651-4005
http://sd05.senate.ca.gov/
Estimated Annual Cost to Taxpayers:
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SB 711Law Library Fee Increase
SENATOR LOIS WOLK
SB 711 (Wolk) authorizes the Board of Law Library Trustees to impose a fee for electronic delivery, other delivery services, educational programs, special events, and provision of supplies or food services.
Status: Active
Version Reviewed: Introduced – February 27, 2015
Legislative Vote Needed for Approval: Majority
Unavailable
Senate District 3 (Davis)
State Capitol, Room 5114Sacramento, CA 95814
(916) 651-4003
http://sd03.senate.ca.gov/
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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SB 732Beverage Container FeeSB 732 (Pan) deletes provisions of law prohibiting the Department of Resources Recycling and Recovery (CalRecycle) from imposing a fee on beverage containers made of polyethylene terephthalate (PET). Currently, CalRecycle imposes the California Redemption Value fee, which provides consumers with an incentive to recycle certain beverage containers.
Status: Dead – Failed Deadline pursuant to Rule 61(a)(2).
Version Reviewed: Amended – April 6, 2015
Legislative Vote Needed for Approval: Majority
$60 Million to $80 Million
SENATOR RICHARD PAN
Senate District 6 (Sacramento)
State Capitol, Room 4070Sacramento, CA 95814
(916) 651-4006
http://senate.ca.gov/sd06
Source: Senate Environmental Quality Committee
Estimated Annual Cost to Taxpayers:
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SB 767Potential Los Angeles County MTA Sales Tax Increase
SENATE PRESIDENT PRO TEM KEVIN DE LEÓN
SB 767 (de León) authorizes the Los Angeles County Metropolitan Transportation Authority (MTA) to impose a transactions and use tax at a rate of 0.5 percent, in addition to the MTA’s existing 0.5 percent tax, subject to the adoption of an expenditure plan and voter approval. The bill also exempts this transactions and use tax from the 2 percent combined rate limit on all transactions and use taxes imposed in any county.
Status: Active
Version Reviewed: Introduced – February 27, 2015
Legislative Vote Needed for Approval: Majority
Assembly District 24 (Los Angeles)
State Capitol, Room 205Sacramento, CA 95814
(916) 651-4024
http://sd24.senate.ca.gov/ $800 MillionSource: State Board of Equalization
Estimated Annual Cost to Taxpayers: Estimated Annual Cost to Taxpayers:
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SCA 5Potential for Higher Local TaxesSCA 5 (Hancock) amends the state constitution to reduce the vote threshold for all local taxes (except ad valorem taxes on real property, and transactions taxes on the sale of real property) from two-thirds to 55 percent. If this measure is approved by the Legislature, it must be approved by the voters in a statewide election to become effective.
Status: Active
Version Reviewed: Introduced – March 26, 2015
Legislative Vote Needed for Approval: Two-Thirds
While an estimate could not be identified for purposes of this report, SCA 5 could cost taxpayers billions of dollars annually.
SENATOR LONI HANCOCK
Senate District 9 (Oakland)
State Capitol, Room 2082Sacramento, CA 95814
(916) 651-4009
http://sd09.senate.ca.gov/
