Bill Text: CA SB1272 | 2009-2010 | Regular Session | Amended

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

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Bill Title: Income and corporation taxes: credits: information and

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Vetoed) 2010-09-24 - In Senate. To unfinished business. (Veto) [SB1272 Detail]

Download: California-2009-SB1272-Amended.html

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BILL NUMBER: SB 1272	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 21, 2010
	AMENDED IN SENATE  APRIL 5, 2010

INTRODUCED BY   Senator Wolk
    (   Principal coauthor:   Senator 
 Alquist   ) 

                        FEBRUARY 19, 2010

   An act to add Section 40 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1272, as amended, Wolk. Income and corporation taxes: credits:
information and operative limitations.
   Existing law imposes various taxes and allows specified credits,
deductions, exclusions, and exemptions in computing those taxes.
   This bill would, for taxable years beginning on or after January
1, 2011, require any bill that would authorize a personal income or
corporation tax credit to contain, among other provisions, (1)
specified goals, purposes, and objectives that the tax credit will
achieve, (2) detailed performance indicators to measure whether the
tax credit is meeting those goals, purposes  ,  and
objectives, and (3) a requirement that the tax credit cease to be
operative  5   7  years after its enactment
date, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares the following:
   (a) Government at all levels  enact   enacts
 tax preferences to promote equity among taxpayers and enhance
economic growth in a way that is inexpensive to administer and
 provide   provides  direct benefits to
taxpayers.
   (b) National and state public finance experts recommend that tax
preferences be evaluated alongside direct spending programs, as both
are public initiatives meant to accomplish specified goals.
   (c) Revenue losses attributable to federal tax preferences exceed
any other category of federal spending, including defense, Medicaid
and Medicare, Social Security, debt service, or discretionary
spending.
   (d) California now forgoes more than $41 billion in revenue from
tax preferences, according to the Department of Finance.
   (e) Many current tax preferences contain neither sunset
provisions, nor goals and objectives to measure the performance of
the tax preference.
   (f) Many current tax preferences neither require taxpayers to
submit data demonstrating the tax preference's effectiveness, nor for
state agencies to collect and send data to the Legislature to
evaluate the tax preference.
   (g) The Legislature should apply the same level of review and
performance measure that it applies to spending programs to tax
preference programs, including tax credits.
  SEC. 2.  Section 40 is added to the Revenue and Taxation Code, to
read:
   40.  Notwithstanding any other law, any bill  , introduced on
or after January 1, 2011,  that would  , for taxable
years beginning on or after January 1, 2011,  authorize a
 new  credit against the "net tax," as defined in Section
17039, or against the "tax," as defined in Section 23036, or both,
shall contain all of the following:
   (a) Specific goals, purposes, and objectives that the tax credit
will achieve.
   (b) Detailed performance indicators for the Legislature to use
when measuring whether the tax credit meets the goals, purposes, and
objectives stated in the bill.
   (c) Data collection requirements to enable the Legislature to
determine whether the tax credit is meeting, failing to meet, or
exceeding those specific goals, purposes, and objectives, including
the specific data  , including baseline data,  to be
collected and remitted  in each yea   r the credit is
effective 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.
   (d) A requirement that the tax credit shall cease to be operative
 five  seven  years after its enactment
date, and as of  that date   January 1 of the
year following the end of the operative period  is repealed.