Amended
IN
Senate
May 07, 2019 |
Amended
IN
Senate
April 25, 2019 |
Amended
IN
Senate
April 22, 2019 |
Amended
IN
Senate
March 25, 2019 |
Senate Bill | No. 468 |
Introduced by Senator Jackson |
February 21, 2019 |
This bill would repeal all tax expenditures, as defined, on December 31, 2023, not including specified sales and use tax exemptions, any tax expenditures under the Personal Income Tax Law, and the exemption from taxation for specified nonprofit organizations, and would require, if a tax expenditure is amended to remove or extend the repeal date, the act doing so to include specified information related to the efficacy of the tax
expenditure. The bill would also require the Legislative Analyst’s Office to conduct an analysis of, and provide a specified report to the Legislature regarding, these tax expenditures.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of
This bill would take effect immediately as a tax levy.
(a)All tax expenditures shall be repealed on December 31, 2023.
(b)(1)For purposes of this section, “tax expenditure” means a tax expenditure that does not, as of the effective date of the act adding this section, have a repeal or inoperative date, does not include metrics of efficacy reported as a requirement, and for which the annual cost to the state has met or exceed one billion dollars ($1,000,000,000) over the past 10 years.
(2)“Tax expenditure” does not
include:
(A)A tax expenditure that is a sales and use tax exemption pursuant to Sections 6353, 6359, 6369, 6369.1.
(B)A tax expenditure pursuant to Part 10 (commencing with Section 17001) of Division 2.
(C)The tax expenditure pursuant to Section 23701.
(c)If a tax expenditure subject to subdivision (a) is amended to remove or extend the repeal date, the act amending the section shall include all of the following:
(1)Specific goals, purposes, and objectives that the tax expenditure will achieve.
(2)Detailed performance indicators for the Legislature to use when measuring whether the tax expenditure meets the goals, purposes, and objectives stated in the act.
(3)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.
Prior to December 1, 2022, the Legislative Analyst’s Office shall conduct an analysis of each tax expenditure subject to Section 42 and submit a written report, submitted in compliance with Section 9795 of the Government Code, to the Legislature which shall include all of the following:
(a)A description of the legislative intent for each tax expenditure, if the act adding or amending the expenditure contains legislative findings and declaration of that intent, or that legislative intent is otherwise expressed or specified by that act.
(b)A brief description of the beneficiaries of the credit, deduction, exclusion, exemption, or
other tax benefit as provided by state law.
(c)The number of returns filed or business entities affected, as applicable, for the most recent tax year for which full year data is available.
(d)A listing of any comparable federal tax benefit, if any.
(e)A description of any recent prior tax expenditure evaluation or compilation of information completed by any state agency.
(f)The economic, social, or any other benefits of the tax expenditure to the State of California.
(g)Total net General Fund dollars lost, including what impact the shift in resources had on other General Fund programs.
(h)Total Proposition 98 dollars lost, including what impact the shift in resources had on educational programs.
(i)Potential environmental impacts, if any.
(j)A longer term analysis outlining the true beneficiaries versus intended beneficiaries of the tax expenditure and its impact on the business climate and market conditions.
(k)Jobs created by the tax expenditure. For the information required by paragraphs (1) and (2), the data must include demographics on gender, race, ethnicity, and age.
(1)Whether the jobs created were short or long term, as well as the average salary and benefits provided for
the jobs created.
(2)Jobs lost or reduced in areas impacted by the tax expenditure or whether jobs were shifted to other sectors.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.