Bill Text: CA AB3289 | 2023-2024 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Taxation: tax expenditures: information.

Spectrum: Committee Bill

Status: (Passed) 2024-07-15 - Chaptered by Secretary of State - Chapter 124, Statutes of 2024. [AB3289 Detail]

Download: California-2023-AB3289-Introduced.html

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CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 3289

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Introduced by Committee on Revenue and Taxation

March 19, 2024

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An act to amend Section 41 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST

AB 3289, as introduced, Committee on Revenue and Taxation. Taxation: tax expenditures: information.

Existing law imposes various taxes and allows specified credits, deductions, exclusions, and exemptions in computing those taxes. Existing law also requires any bill, introduced on or after January 1, 2020, that would authorize a new tax expenditure, as defined, to contain, among other provisions, specified goals, purposes, and objectives that the tax expenditure will achieve and detailed performance indicators, including data collection requirements, to measure whether the tax expenditure is meeting those goals, purposes, and objectives.

This bill would exempt a bill that would authorize a new tax expenditure that is a gross income exclusion from the requirement to include detailed performance indicators and data collection requirements to measure whether the tax expenditure is meeting the goals, purposes, and objectives of that tax expenditure, if the Legislature determines there is no available data to collect and report.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 41 of the Revenue and Taxation Code is amended to read:

41.

 (a) (1) Notwithstanding any other law, and except as provided in paragraph (2), any bill, introduced on or after January 1, 2020, that would authorize a new tax expenditure under Part 10 (commencing with Section 17001) of Division 2, Part 11 (commencing with Section 23001) of Division 2, or both, or that would authorize an exemption from the taxes imposed by Part 1 (commencing with Section 6001) of Division 2, shall contain all of the following:

(1)

(A) Specific goals, purposes, and objectives that the tax expenditure will achieve.

(2)

(B) Detailed performance indicators for the Legislature to use when measuring whether the tax expenditure meets the goals, purposes, and objectives stated in the bill.

(3)

(C) Data collection requirements to enable the Legislature to determine whether the tax expenditure is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives. The requirements shall include the specific data and baseline measurements to be collected and remitted in each year the tax expenditure is in effect, in order for the Legislature to measure the change in performance indicators, and the specific taxpayers, state agencies, or other entities required to collect and remit data.

(2) A bill that would authorize a new tax expenditure that is a gross income exclusion shall be exempt from including the information in subparagraphs (B) and (C) of paragraph (1), if the Legislature determines there is no available data to collect and report.

(b) For purposes of this section, “tax expenditure” means a credit, deduction, exclusion, exemption, or any other tax benefit as provided for by the state.

(c) Taxpayer information collected pursuant to this section is subject to Sections 7056.5 and 19542.