Title: Authorizes Evaluation of Tax Expenditures
Title: Authorizes Evaluation of Tax Expenditures
Vote to concur with house amendments and pass a bill that authorizes an evaluation of state tax expenditures.
Establishes the California Tax Expenditure Review Board as an independent advisory body to comprehensively assess major tax expenditures and make recommendations to the legislature (Sec. 2).
Authorizes the board to establish advisory committees involving members of the public (Sec. 2).
Defines “major tax expenditure” as a tax expenditure that meets all of the following criteria (Sec. 2):
The amount of revenue lost from the tax expenditure is equal to or greater than $1 billion in total over the preceding 10 fiscal years, and, as of January 1, 2020, does not have a repeal or inoperative date, or a requirement to report any metrics of efficacy;
Is not a sales and use tax exemption pursuant to Section 6353, 6359, 6369, or 6369.1;
Is not allowed only against personal income tax imposed under Part 10 of Division 2;
Is not authorized by Chapter 4 of Part 11 of Division 2;
Is not allowed as a deduction under Section 17201 by conformity to Section 170 of the Internal Revenue Code (IRC) or Section 24357; and
Is not excluded as income under the following:
Section 17131 by conformity to Section 1010 of the IRC, as modified by Section 17132.5;
Section 17081 by conformity to Section 72 of the IRC, as modified by 17085;
Section 24302; and
Section 24305.
Authorizes the legislature to request that the Regents of the University of California, through a new or existing research center, to perform a comprehensive assessment of major tax expenditures, including, but not limited to (Sec. 3):
A description of the beneficiaries of the tax expenditure;
Total General Fund dollars lost due to the tax expenditure;
The economic, social, environmental, or any other impact of the tax expenditure to the state using metrics deemed appropriate by the University of California; and
Options for modifying the tax expenditure to improve its efficacy or to reduce its costs to the General Fund.
Requires the board, within 5 business days after receiving this assessment, to post it on its internet website (Sec. 3).
Requires the board, no earlier than 14 days and no later than 2 months following the posting of the assessment online, to meet in public to vote on making a recommendation to the legislature concerning the major tax expenditure (Sec. 3).
Requires the board, by January 1, 2022, to provide a report to the legislature including all of its recommendations concerning major tax expenditures (Sec. 3).
Title: Authorizes Evaluation of Tax Expenditures
Vote to pass an amended bill that authorizes an evaluation of state tax expenditures.
Establishes the California Tax Expenditure Review Board as an independent advisory body to comprehensively assess major tax expenditures and make recommendations to the legislature (Sec. 2).
Authorizes the board to establish advisory committees involving members of the public (Sec. 2).
Defines “major tax expenditure” as a tax expenditure that meets all of the following criteria (Sec. 2):
The amount of revenue lost from the tax expenditure is equal to or greater than $1 billion in total over the preceding 10 fiscal years, and, as of January 1, 2020, does not have a repeal or inoperative date, or a requirement to report any metrics of efficacy;
Is not a sales and use tax exemption pursuant to Section 6353, 6359, 6369, or 6369.1;
Is not allowed only against personal income tax imposed under Part 10 of Division 2;
Is not authorized by Chapter 4 of Part 11 of Division 2;
Is not allowed as a deduction under Section 17201 by conformity to Section 170 of the Internal Revenue Code (IRC) or Section 24357; and
Is not excluded as income under the following:
Section 17131 by conformity to Section 1010 of the IRC, as modified by Section 17132.5;
Section 17081 by conformity to Section 72 of the IRC, as modified by 17085;
Section 24302; and
Section 24305.
Authorizes the legislature to request that the Regents of the University of California, through a new or existing research center, to perform a comprehensive assessment of major tax expenditures, including, but not limited to (Sec. 3):
A description of the beneficiaries of the tax expenditure;
Total General Fund dollars lost due to the tax expenditure;
The economic, social, environmental, or any other impact of the tax expenditure to the state using metrics deemed appropriate by the University of California; and
Options for modifying the tax expenditure to improve its efficacy or to reduce its costs to the General Fund.
Requires the board, within 5 business days after receiving this assessment, to post it on its internet website (Sec. 3).
Requires the board, no earlier than 14 days and no later than 2 months following the posting of the assessment online, to meet in public to vote on making a recommendation to the legislature concerning the major tax expenditure (Sec. 3).
Requires the board, by January 1, 2022, to provide a report to the legislature including all of its recommendations concerning major tax expenditures (Sec. 3).
Title: Authorizes Evaluation of Tax Expenditures
Title: Authorizes Evaluation of Tax Expenditures