372 Tax articles


Manufacturing sales tax exemption town hall
 Oct. 24, 2014

All manufacturers are invited to participate in a Board of Equalization Telephone Townhall to discuss California's new Manufacturing Equipment and Research & Development Sales Tax Exemption. All manufacturers are eligible. The Telephone ...
Next round of "California Competes" opens soon
 Sept. 26, 2014

The Governor’s Office of Business and Economic Development (GO-Biz) has announced the availability of the next round of “California Competes” Tax Credits. This income tax credit is available to businesses that want to locate ...
California seeks waiver of UI tax increase
 July 18, 2014

The State of California is seeking a waiver from the United States Department of Labor (USDOL) for an impending unemployment insurance (UI) tax increase that was triggered this year due to our continued federal UI loan debt. Without this waiver, ...
The day has come -- the manufacturing equipment exemption is back!
 July 3, 2014

This week Board of Equalization member George Runner hosted, alongside CMTA, a "tele-townhall" to answer questions about how to take advantage of the manufacturing sales and use tax (SUT) exemption that passed last year and went into ...
Manufacturing benefits noted in debate on aerospace incentives
 July 3, 2014

AB 2389(Steve Fox, D-Palmdale) would provide up to $420 million in job credits for aerospace employment related to the Advanced Strategic Aircraft Project to be funded by the Department of Defense. Passing 72 to 2 out of the State Assembly last ...
2014 best & worst states for business
 May. 23, 2014

The CEO Magazine ICYMI has released the 10th annual survey ranking the nation’s best and worst states for business. 500 CEOs across the U.S. responded to questions about tax, regulation, quality of workforce, and living environment. At the ...
Bad property tax bill gets fixed?
 May. 15, 2014

Under current protections of Proposition 13 passed in 1978, a property re-assessment for tax purposes does not occur until there has been a “change in ownership” (COO) of the property through a single sale of an interest in property ...
Aerospace manufacturing benefit passes committee
 May. 15, 2014

California has a decades-long history in the forefront of aerospace development and manufacturing. The benefits to the state in high-wage jobs and supply chain multiplier effects are massive. Now we have the opportunity to attract important ...
Senate "split roll" bill moves to the assembly
 May. 9, 2014

This week SB 1021 (Lois Wolk, D-Davis) passed the Senate with 21 votes over the objections of business and taxpayer interests. The bill allows school districts to impose unlimited tax increases on property owners through non-uniform parcel taxes. ...
Tele-Townhall on manufacturing related taxes
 May. 9, 2014

Mark your calendar for an upcoming event that may be of interest to you. On Tuesday, July 1, 2014, from 10:00 to 11:00 a.m., Board of Equalization Member George Runner will host a telephone townhall for manufacturers. The event, co-hosted by CMTA, ...
Brown pushes plan for reserve fund
 May. 1, 2014

Governor Brown called a special session to consider a plan to strengthen California’s finances by seizing spikes in revenue to be saved or used to prevent budget cuts during downturns or pay down state debts. While California voters voted to ...
Manufacturing sales & use tax exemption regs clear first hurdle
 April 24, 2014

The Board of Equalization (BOE) Tax Committee has approved for publication the partial sales and use tax (SUT) exemption regulation for purchases of manufacturing and research & development equipment. The final draft of Proposed Regulation ...
No Fooling - CEO pay would determine corporate tax rates
 April 11, 2014

On April 1, SB 1372 (Mark DeSaulnier, D-Concord) was amended to link corporate tax rates to the level of wage disparity between the CEO and the company workers. It would also impose a penalty on corporations that shift employees to foreign ...
Applications for "California Competes" due soon
 April 4, 2014

Applications for the California Competes Tax Credit will be accepted through Monday, April 14. Interested businesses can obtain more information and apply online at this web address: http://www.business.ca.gov/Programs/CaliforniaCompetes.aspx. All ...
Possible relief of timeliness penalties
 March 28, 2014

Two identical bills would provide some tardy taxpayers a relief from timeliness penalties in a similar manner now provided at the federal level. AB 2065 (Jeff Gorell, R-Camarillo) and AB 1777 (Sharon Quirk-Silva, D-Fullerton) allow such relief if ...
GO-Biz workshops on 'California Competes' tax credit
 March 13, 2014

The Governor's Office of Business and Economic Development (GO-Biz) will hold a series of regional workshops on the new California Competes Tax Credit.  Small, medium and large businesses are encouraged to attend the workshop and ...
Final draft of proposed sales tax exemption regulation released
 Feb. 7, 2014

The California Board of Equalization (BOE) has released its final discussion paper on the proposed regulation for the partial sales and use tax exemption for manufacturing and R&D equipment purchases. It can be found here: ...
Questions raised about declining corporate tax revenues
 Jan. 30, 2014

On January 23 Senator Mark Leno (D-San Francisco) chaired the first Senate Budget and Fiscal Review hearing since the Governor unveiled his proposed 2014/15 budget. During question and answer period, Leno asked questions about the current level of ...
Governor's budget is mostly good for California manufacturers and state economy
 Jan. 16, 2014

CMTA issued this supportive statement last week on Governor Jerry Brown's proposed budget.  Gov. Brown provided prudence in his proposal, ensuring that future budgets can also be balanced while the economy continues to ...
CMTA comments on proposed sales tax exemption regulation
 Dec. 30, 2013

CMTA submitted comments to the Board of Equalization (BOE) this week on the revised draft regulation implementing the sales and use tax exemption for manufacturing and research & development equipment purchases. Our comments recommend ...
CMTA opposes increase in federal UI taxes
 Dec. 13, 2013

CMTA joined with several other state and national business organizations urging Congress to reject any budget resolution or end-of-year legislation that proposes an increase in the federal unemployment insurance (UI) tax, also known as ...
GO-Biz workshops on CA Competes Tax Credit
 Dec. 6, 2013

Last July, the Governor’s package for economic development was passed during budget negotiations that established not only the sales tax exemption for manufacturing equipment and a hiring credit, but also the “California Competes Tax ...
GO-Biz workshops on CA Competes Tax Credit
 Dec. 4, 2013

Last July, the Governor’s package for economic development was passed during budget negotiations that established not only the sales tax exemption for manufacturing equipment and a hiring credit, but also the “California Competes Tax ...
Second draft of sales tax exemption regulations released
 Nov. 25, 2013

The second discussion paper on the proposed sales and use tax exemption (STE) regulation has been released by the California Board of Equalization (BOE). The analysis and other general information can be found here ...
Federal UI tax increases for 2013
 Nov. 22, 2013

California employers will experience an increase in their federal unemployment insurance tax (FUTA) next year. This tax has been increasing since 2012 due to California’s outstanding UI debt to the federal government. Generally employers ...
LAO says state fiscal outlook looks "promising"
 Nov. 22, 2013

“The state’s budgetary condition is stronger than at any point in the past decade” says Mac Taylor, the Legislative Analyst in a report released this week. The LAO's Fiscal Outlook—a forecast of California's state ...
California ranks 48th in Tax Foundation's business climate index
 Oct. 31, 2013

The 10th Edition of the 2014 State Business Tax Climate Index has ranked California 48 out of 50 states for its complex, non-neutral taxes accompanied by high rates. The tax climate publication collects data on the 50 states’ tax provisions ...
Sales Tax Exemption proposed regulations released
 Oct. 3, 2013

The California Board of Equalization (BOE) has released its initial discussion paper on the proposed regulation for the state manufacturing sales and use tax exemption that was passed earlier this year. The analysis and other general ...
LAO report: Why have sales taxes grown slower than the economy?
 Aug. 8, 2013

For years, the State Legislature has grappled with the notion of whether to impose a sales tax on services purchased in California. The sales and use tax is the state’s second largest revenue source and a major funding source for local ...
Gov signs economic development initiative
 July 13, 2013

On Thursday, Governor Jerry Brown signed two measures – AB 93and SB 90– to implement his “Economic Development Initiative” that phases out several existing tax incentives and creates a new program to stimulate business ...
CMTA Press Release -- California sends signal to manufacturers: Legislature passes 8-year sales tax exemption on manufacturing equipment
 July 5, 2013

Sacramento, CA -- Today, California's Legislature and the Governor signaled to manufacturers that the state will be a more competitive place to invest over the next eight years by passing an eight-year 4.19 cent sales tax exemption on the ...
Ruling stands in Alameda County parcel tax lawsuit
 June 27, 2013

In a case that may have far reaching statewide effects, the California State Supreme Court has denied the review of an appeal relating to a parcel tax lawsuit filed in Alameda County. Brought forth after Alameda County voters passedMeasure H, ...
Gov proposes new incentives & manufacturing tax credit to replace EZs
 May. 16, 2013

Governor Jerry Brown introduced a business incentives package in the “May Revise” that would essentially eliminate the Enterprise Zone Program as we know it today. According to the Administration, this new proposal seeks to ...
Governor's "May Revise" details
 May. 16, 2013

While revenues have continued on an upward trend in the last few months to the tune of $4.5 billion ahead of expectations, Governor Brown’s May Revise budget proposal released this week takes a modest approach to the trend basing the plan on ...
Speaker releases Democrats budget blueprint
 May. 16, 2013

In anticipation of the release of Governor Brown’s May Budget Revise, last week Assembly Speaker John Perez (D-Los Angeles) revealed what he called the Blueprint for a Responsible Budget on behalf of the Assembly Democrats. The plan ...
Turning tides ...
 April 18, 2013

Recent announcements regarding two controversial issues provide some direction to California businesses as to the Legislature’s economic policy priorities for the current legislative year:Proposition 13According to recent reports, Senate ...
10-year sunset proposed on tax credits
 April 12, 2013

A bill to impose a 10-year sunset on all income and franchise tax credits proposed in legislation on or after January 1, 2014, passed the Senate Governance and Finance Committee this week. SB 365 (Lois Wolk, D-San Francisco) puts the long-term ...
Measures seek lower vote threshold to pass taxes
 Feb. 8, 2013

Several measures have been introduced this year seeking constitutional changes to how local governments pass and levy special taxes for services and projects. For the most part, the handful of constitutional amendments all seek the same goal: ...
Unemployment insurance rate increase expected
 Jan. 31, 2013

Earlier this week, Labor and Workforce Development Secretary Marty Morgenstern called a meeting of Sacramento business associations to begin a dialogue on increasing unemployment insurance (UI) rates for California employers. Because of ...
Court rules budget spot bills unconstitutional
 Jan. 31, 2013

A recent appellate court decision has declared legislative budgetary actions taken by the Legislature last session tied to placeholder bills (aka “spot bills") altering the order of ballot measures to be unconstitutional. The decision ...
Enterprise zone reforms on the horizon
 Jan. 18, 2013

This year promises to be a challenging one for the Enterprise Zone (EZ) program. Both the Administration and the Legislature are proposing sweeping reforms to change and possibly eliminate the program.  Last week, the Department of Housing and ...
Controller releases November cash update
 Dec. 13, 2012

On December 7th, State Controller John Chiang released his monthly report covering California's cash balance, receipts and disbursements. For November 2012 total revenues were $806.8 million below (-10.8 percent) projections contained in the ...
Legislation to implement prop 39 introduced
 Dec. 7, 2012

Earlier this week, Senator Kevin De Leon, D-Los Angeles, announced he will introduce legislation administering and implementing the provisions of last November’s voter approved Proposition 39. Prop 39 eliminated the optional Single Sales ...
Mandatory single sales factor
 Oct. 5, 2012

The Court of Appeal in the case of "Gillette v. FTB" reissued its July 27 decision that found multistate corporations must be offered the opportunity to use the equal-weighted, three factor income apportionment formula so long as ...
Online retailers begin CA sales tax collection
 Sept. 14, 2012

Beginning September 15, a new state law mandating online retailers to collect sales tax from California consumers will become effective. Governor Jerry Brown signed a bill last year requiring online retailers to collect sales tax on California ...
CMTA Opposes Proposition 39
 Aug. 10, 2012

CMTA opposes Prop 39 because it would raise taxes on California employers, hurting jobs and investment.Proponents would have us believe that a lack of a Mandatory Single Sales Factor (MSSF) is a reason jobs and investment are not coming to ...
New bill would link state contracts with tax filing formula
 Aug. 3, 2012

The Sacramento Bee has alerted its readers that California Senator Kevin de Leon (D-Los Angeles) plans to introduce amendments to SB 911 that would prohibit state contracts with multi-state companies that pay state income taxes based on a ...
Appeals Court sides with multistate businesses on taxes
 July 27, 2012

Multistate corporations achieved a significant win this week with the 1st District Court of Appeals unanimously ruling that California must honor a long-standing multistate compact that apportioned corporate taxable income on the basis for three ...
LAO releases Initiative evaluations
 July 27, 2012

The nonpartisan Legislative Analyst Office (LAO) has released its official evaluation of all 11 upcoming November ballot measures.  Each evaluation provides an overview, background information and projects the fiscal effects of each ...
Bill to extend benefits in expired enterprise zones stalls in committee
 July 12, 2012

Unable to overcome Labor’s objections that the program is a bad return on the State’s investment, a bill that would have allowed tax benefits to continue in the two expired enterprise zones failed passage in the Senate Governance and ...
Penalty for claiming tax refund
 June 1, 2012

The Governor’s "May Revise" budget proposal would impose a 20 percent penalty for any excessive amounts in a claim for a tax refund that lacked a reasonable basis. He estimates it would generate $1 million in general fund revenue in ...
Tax disclosure for publicly traded corps on floor
 June 1, 2012

AB 2439 (Mike Eng, D-Monterey Park) passed off the Assembly floor today. The bill requires corporate disclosure of income tax payments. CMTA is opposed. The author intends to gather information on changes to state revenue resulting from the 2011 use ...
Brown releases 'May Revise' budget proposal
 May. 18, 2012

Governor Jerry Brown released his “May Revise” budget proposal this week revealing his state budget deficit estimate to have dramatically increased to $15.7 billion – a $6.5 billion jump from his initial deficit estimate last ...
LAO releases first 'May Revise' evaluation
 May. 18, 2012

A preliminary evaluation conducted by the nonpartisan Legislative Analyst Office (LAO) has found that overall General Fund (GF) projections outlined in the Governor’s “May Revise” are now “fairly similar” to LAO GF ...
Interest relief from BOE under certain circumstances passes first committee
 May. 11, 2012

SB 1420 (Lou Correa, D-Santa Ana) authorizes the Board of Equalization (BOE) to relieve all or a portion of interest imposed, not to exceed $50,000 during a 12-month period, if it is determined that the taxpayer's failure to make a timely payment ...
CMTA testifies to preserve elective tax formula for employers
 May. 11, 2012

On Monday, in the Senate Revenue and Taxation Committee, CMTA's Dorothy Rothrock testified to preserve a critical tax liability election afforded to all California employers.  Rothrock was opposing Speaker John Perez' AB 1500, a bill which will ...
Add another $3 billion to the budget deficit
 May. 4, 2012

Governor Jerry Brown will issue an updated budget for the 2012-2013 fiscal year on May 14th. Known as the “May Revise”, his budget problem is bigger than anticipated when his first budget was issued in January. At that time his estimate ...
Bills to tax services stalled
 April 27, 2012

Two bills proposing a sales tax on services, AB 2540 (Mike Gatto, D-Burbank) and AB 1963 (Alyson Huber, D-El Dorado Hills), were amended yesterday and no longer impose a sales tax on services. CMTA opposed the bills because they would have created a ...
CMTA opposes mandatory single sales factor
 April 20, 2012

CMTA is a member of California Employers Against Higher Taxes, a coalition of companies that employ thousands of middle-class Californians in good-paying jobs. The coalition launched a website about the job-threatening consequences of a proposed $1 ...
Brown: Budget deficit higher than projections
 April 20, 2012

In a recent radio interview, Governor Jerry Brown acknowledged that his initial budget deficit estimate of $9.2 billion may no longer be accurate and that it is most likely higher. During the interview, the Governor touted his compromise ballot ...
State has 6th highest business taxes in nation
 April 20, 2012

The Small Business & Entrepreneurship Council recently released its 2012 Business Tax Index report ranking and detailing states the Council has found to be the best and worst for business in the country.  To determine the ranking, the ...
Runner proposes suspension of gas excise tax
 April 6, 2012

Board of Equalization Member George Runner has proposed a plan suspending the State gasoline tax once gas pump prices reach $4 per gallon.  Runner claims that his plan would save taxpayers an estimated $1.4 billion should gas pump prices reach ...
CMTA members participate in hearing on 'Advanced manufacturing'
 March 23, 2012

On Wednesday, Senators Alex Padilla and Lois Wolk held an informational hearing to understand the definitions and roles of "Advanced manufacturing." The hearing was set up to inform Sen. Padilla's proposed SB 1128, a bill to provide ...
Lowering support for Gov's tax plan
 March 9, 2012

In its lowest public poll reading so far, Governor Jerry Brown's tax plan has support from 52 percent of likely voters, according to a new Public Policy Institute (PPIC) survey.  PPIC found in two earlier polls that Brown's plan to hike taxes ...
Don't miss out on the Small Business Health Care Tax Credit
 March 9, 2012

As the March 15 corporate tax filing deadline approaches, we want to help ensure our small business members are aware they can reduce their federal tax burden if they provide health insurance to their employees. The Small Business Health Care Tax ...
Brown's tax measure in jeopardy
 Feb. 24, 2012

Survey results from a recent poll conducted by supporters of Governor Jerry Brown’s 2012 tax initiative indicated that if all three major tax measures qualify for the November ballot, Brown’s measure could be in serious jeopardy.  ...
Mandatory single sales factor bill introduced
 Feb. 24, 2012

Assembly Speaker John Pérez (D-Los Angeles) has introduced AB 1500 to help pay college tuition for middle class students through increased taxes by requiring most corporate tax filers to use the Single Sales Apportionment Factor (SSF) to ...
Proposition 29, cigarette tax
 Feb. 17, 2012

While many eyes are already focused on the myriad of tax raising initiatives expected to be on the November General Election ballot, Lance Armstrong and his LIVESTRONG Foundation have focused attention on the upcoming June primary election, where a ...
Controller urges legislative action on budget shortfall
 Feb. 10, 2012

In a letter to legislative budget leaders last week, Democratic State Controller John Chiang urged lawmakers to act quickly before California runs out of cash in March. According to Chiang, the cash shortfall is due to $2.6 billion in State ...
PPIC poll a mixed bag for Gov's budget proposals
 Feb. 3, 2012

California voters like Governor Jerry Brown’s idea of making high earners pay more taxes, but otherwise are of mixed minds about solving the State's chronic budget woes, according to the Public Policy Institute of California's latest poll on ...
California's business tax climate - 3rd worst in nation
 Feb. 3, 2012

According to a new report from the Tax Foundation, California's business tax climate is the third worst in the nation next to New Jersey and New York. The Foundation advocates for and evaluates tax systems based on being simple, broad based and ...
CA redevelopment agencies dealt blow by State Supreme Court – expiration set for Feb. 1
 Jan. 20, 2012

On December 29th, the California State Supreme Court decided to uphold the 2011 budget law that dissolved the states redevelopment agencies and voided a separate 2011 budget measure that created a substitute program. The court established strict ...
Governor issues budget executive order
 Dec. 16, 2011

Last week, Governor Jerry Brown issued an Executive Order (EO) that requires the Department of Finance (DOF) to incorporate new common sense program-evaluation methods in to the state’s budgeting process.  In the EO, Brown directs DOF to ...
Oil tax measure cleared
 Dec. 16, 2011

A constitutional amendment creating a new State Bank funded by a 15 percent minimum tax on all oil and gas extracted from California has been cleared for circulation. If passed, the State Bank would be authorized to refinance the state debt and make ...
More ballot initiatives for the 2012 election
 Dec. 2, 2011

Three more initiatives regarding business taxes are being circulated for next year’s general election: single sales factor, a tax overhaul, and budget governance reform. An environmental coalition led by hedge-fund manager Tom Steyer has filed ...
State’s outlook likely to 'trigger' cuts
 Nov. 18, 2011

In the last week, three key state fiscal entities have released financial outlook reports detailing the state’s current revenue situation and providing projections for the upcoming budget year. Democratic Controller John Chiang’s report ...
BOE talks split roll, again
 Nov. 4, 2011

Recently, the Board of Equalization (BOE) met with county assessors and interested parties to discuss issues surrounding the commercial property provisions of Proposition 13. Passed by the voters in 1978, Prop 13 placed a one percent limit on ...
Tax credit 'sunset' and budget reform bills met with Governor veto
 Oct. 21, 2011

Governor Jerry Brown vetoed two bills that would have restricted future tax incentives and overhauled California's budgeting system. SB 508 (Lois Wolk, D-Davis) would have required corporate and individual tax breaks enacted after Jan. 1 to ...
Sales tax exemption program suspended
 Oct. 21, 2011

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) has frozen its grant program that provides companies sales tax breaks when purchasing green manufacturing equipment. Following the aftermath of the Solyndra ...
California revenue picture remains bleak -- triggers looming
 Oct. 14, 2011

With the state legislature out of town and the Governor’s bill signing finished, all eyes are about to shift towards the state’s fiscal condition once again. State officials are awaiting the quarterly tax collection figures which are ...
California's debt weighs heavy on state finances
 Oct. 14, 2011

In a new report, Treasurer Bill Lockyer estimates that California will devote 7.8 percent of its budget to paying off debt this fiscal year, more than twice the share in 2003-04.  Eight years ago, the state devoted 3.4 percent of its general ...
Southern California cities file redevelopment lawsuit
 Oct. 7, 2011

Ten Southern California cities and their redevelopment agencies have filed a lawsuit challenging methods used by state lawmakers in the budget process.  More specifically, the suit alleges that California’s new plan to take $1.7 billion ...
'Amazon tax' compromise signed by Governor
 Sept. 30, 2011

Last Friday, September 23rd, Governor Jerry Brown signed legislation, AB 155 (Charles Calderon, D-Whittier)  that postpones new sales taxes rules that would have affected online purchases in California, granting more time for traditional and ...
California revenues show small gains, still below targets for year
 Sept. 23, 2011

California revenue surpassed budget estimates in August by 2.1 percent, helping offset previous shortfalls as the sluggish economic recovery retards tax collections needed to prevent $4 billion in spending cuts. California collected $134.9 million ...
Last minute play to make 'Single Sales' tax liability mandatory
 Sept. 9, 2011

On Thursday, Governor Brown held a press conference to announce his amended "jobs package".  His new proposal included the same mandatory single sales tax liability as the one in his original plan, reduced the proposed sales tax ...
“Amazon tax” repeal gains momentum, but Legislature fights back
 Sept. 2, 2011

Amazon.com has added another $2.25 million to its effort to overturn a law (ABx1 28, Bob Blumenfield, D-Van Nuys) requiring some online retailers to collect sales tax on purchases made by Californians, bringing the company's total investment in the ...
Governor unveils "California Jobs First Plan"
 Aug. 26, 2011

On Thursday, Governor Jerry Brown offered up a revised tax plan designed to promote job growth, proposing to eliminate the election of corporate tax calculations, while offering new incentives for businesses to grow and hire in California. Under the ...
Enterprise zone reform bill stalled in Assembly committee
 Aug. 26, 2011

On Tuesday, the Assembly Jobs, Economic Development and the Economy Committee failed passage of legislation that would have altered the way the state’s enterprise zone (EZ) program’s hiring credit would be applied to companies that moved ...
State revenue is weaker than expected
 Aug. 19, 2011

California's chronic fiscal problems don’t appear to be over just yet, as recent revenue reports show significantly weaker than expected revenue even before the stock market, a key source of revenue for the state, began sliding in response to ...
LA Mayor calls for Prop 13 reform
 Aug. 19, 2011

Earlier this week, Los Angeles Mayor Antonio Villaraigosa called on Governor Jerry Brown to “be bold” and push for major, controversial changes to the fundamental structure of Proposition 13.  According to Villaraigosa, current ...
Election 2012: Repeal of some budget trailer bills?
 Aug. 12, 2011

The Secretary of State has given opponents of two bills that were approved as part of this year's budget package the okay to begin collecting voter signatures to qualify their repeals for the 2012 ballot. One referendum, filed by Senator Ted Gaines ...
BOE moves forward with regulations for “Amazon Tax”
 Aug. 5, 2011

The California State Board of Equalization (BOE) last week voted to start the process for implementing the state’s new “Amazon tax” law. The new law requires many out-of-state retailers, including online retailer Amazon, to start ...
Steinberg postpones local taxation measure
 July 27, 2011

Senate President Pro Tem Darrell Steinberg, D-Sacramento, recently announced his decision to temporarily postpone his pursuit of a local taxation measure he used earlier this year as a budget bargaining chip.  The measure, originally SB 653 ...
RDAs & cities take case to California Supreme Court
 July 21, 2011

The California Redevelopment Association along with the League of California Cities, the city of San Jose and Union City filed a lawsuit asking the California Supreme Court to issue a stay order by August 15th blocking the implementation of ...
SSF bill amended with additional business incentives
 July 15, 2011

Last week, Senator Kevin de León (D-Los Angeles) introduced amendments to SB 116, a bill that would require corporate taxpayers to utilize the single sales factor (SSF) apportionment formula for purposes of determining corporate tax ...
Sales & use tax rates dropped one percent
 July 8, 2011

On July 1st, California’s sales tax dropped from 8.25 percent to 7.25 percent as legislation from 2009 expired.  Betty Yee (D), a member of the state’s Board of Equalization, said the drop also affects California’s “use ...
2009 VLF increase expires
 July 8, 2011

The beginning of Fiscal Year 2011-2012 on July 1st also marked the sunset of the 2009 vehicle license fee tax increase. The vehicle license fee has now dropped to 0.65% from 1.15%.  Governor Jerry Brown heavily lobbied for the extension of this ...
Majority-vote budget clears California State Legislature
 July 1, 2011

On Tuesday, June 28th, California lawmakers passed a budget and the Governor signed it on Thursday, June 30th.  It wagers that the state’s recovering economy will bring in an extra $4 billion. The $85.9 billion spending package, approved ...
“Trigger list” cuts contingent on state revenues in 2012
 July 1, 2011

One of the key components of the majority vote budget passed Tuesday night, June 28th, is a $4 billion assumption of higher revenues in 2011-12, backed by $2.5 billion in "trigger" cuts in case only some or none of that money ...
Governor signs eight budget trailer bills – More on the way
 July 1, 2011

Governor Jerry Brown signed eight budget-related bills Wednesday, June 29th, including controversial measures to abolish state redevelopment agencies in their existing form and to require online retailers such as Amazon.com to collect sales tax on ...
Opponents to local taxing authority bill get serious
 June 24, 2011

Opponents of a controversial bill to give local governments more power to seek tax increases have preemptively launched a campaign to repeal the measure should it become law. A business-backed coalition called Stop Hidden Taxes has opened a campaign ...
Budget passed – but see article below
 June 17, 2011

On Wednesday, June 15th, the last day to meet the state’s constitutionally required mandate to produce a balanced budget, the state legislature passed California’s first ever majority vote budget.  A balanced budget has eluded ...
Budget vetoed – if you blinked, you probably missed it
 June 17, 2011

Less than 24 hours after the state's first "majority vote" budget passed the California legislature, vetoed it.  In his statement, he claimed it relied on gimmicks and did not address the structural problems in California's ...
Bill to consider costs of obsolete equipment
 June 10, 2011

One of the regulatory reform bills, SB 357 (Bob Dutton, R-Inland Empire), passed its first house last week. It would require departments to include in their cost estimates of regulations the cost to the state in lost revenue as a result of ...
New poll shows mixed support for tax extensions
 June 10, 2011

Governor Jerry Brown enjoys strong support for his Solomon-like approach to closing the state's budget deficit with a mixture of spending cuts and tax extensions that would require voter approval, a new Public Policy Institute of California (PPIC) ...
“Amazon Tax” nexus bills approved in California Assembly
 June 3, 2011

California and others states are constitutionally prevented from compelling out-of-state retailers to collect the tax unless that retailer has an in-state "physical presence". Assemblymembers Charles Calderon (D-Whittier) and Nancy Skinner ...
Local taxing authority legislation breathes new life
 June 3, 2011

As the state legislature’s “house of origin” deadline (June 3) approached, Senate President Pro Tempore Darrell Steinberg (D-Sacramento) moved to keep alive a bill aimed at providing local governments more power to seek taxes as ...
Controller to Legislature: No pay without an on-time budget.
 June 3, 2011

Lawmakers will lose their salaries and per diem payments if they fail to approve a balanced budget by June 15, State Controller John Chiang said this morning, June 3rd. The budget bill the Legislature adopted in March, he said, is insufficient to ...
Legislative Analyst concurs with Governor’s revenue estimates (mostly)
 May. 27, 2011

The nonpartisan Legislative Analyst's Office agreed last week with Governor Jerry Brown's revised assessment of $6.6 billion in state revenues, issuing a "virtually identical" forecast through June 2012.  In a revised budget he ...
Gov's May-Revise budget summary
 May. 20, 2011

Governor Jerry Brown unveiled a revised budget Monday, May 16th, that calls for a $9.3 billion tax extension, coupled with a $2.6 billion cut in spending. The good news is revenues to the state have increased by $6.6 billion. The bad news is ...
CMTA responds to Gov's budget proposal to include sales tax exemption for manufacturing equipment
 May. 20, 2011

CMTA president, Jack Stewart, made the following statement regarding Governor Jerry Brown's revised 2011-2012 state budget:   "Gov. Brown acknowledged today in his May Revision of his state budget proposal that private sector job creation ...
Assembly republicans release budget proposal
 May. 20, 2011

In a highly unusual move just days before the Governor’s release of his May Revise, Legislative Republicans released their own budget plan last week rejecting the Governor’s proposed tax extensions and public safety realignment ...
Legislative Counsel to Governor: “Not so fast my friend….”
 May. 13, 2011

The Legislature's lawyers said in a recent memo that part of Governor Jerry Brown's plan to eliminate redevelopment agencies is unconstitutional because the state cannot reimburse itself with local property taxes. The Legislative Counsel focused on ...
State revenues on the rise
 May. 6, 2011

As of April 22nd, California had collected $40.1 billion in personal income tax revenues for fiscal 2010-11, which is $6.2 billion or 18 percent more than it had collected by the same date last year for fiscal 2009-10. Personal income tax revenues ...
Local taxing authority
 April 29, 2011

Next week the Senate Governance and Finance Committee will hear SB 653 (Darrell Steinberg, Senate President pro Tempore, D-Sacramento) that will grant local governments authorization to impose taxes for local purposes.  More specifically, it ...
Teachers union & Assembly Speaker push for legislative tax vote
 April 21, 2011

The leader of one of California's most prominent public employee unions and a top lawmaker are parting ways with Governor Jerry Brown over his plan to ask voters to back extensions of tax increases that expire this year. The California Teachers ...
State budget negotiations come to a halt
 April 8, 2011

Last week, lawmakers in Sacramento have failed to reach a consensus on how to solve the State’s mounting budget deficit, prompting Governor Jerry Brown to call an end to the current negotiations with minority Republicans. The Governor had ...
Sales tax exemption bill passes committee
 April 1, 2011

Last week, the Senate Governance and Finance Committee passed SB 395 that would exempt the purchase of manufacturing and research equipment from California state sales tax.  The bill’s author, Senate Republican Leader Bob Dutton (R-Rancho ...
Budget and other related initiatives considered
 April 1, 2011

As the window for calling a June election to keep higher tax rates in place narrows, other options for placing taxes on the ballot are now circulating. Routes under consideration include a majority vote play by amending an existing initiative ...
Tax credit webinar
 April 1, 2011

Tap into the value of federal and state tax incentives. Romo Incentives Group, a CMTA associate member, is offering a free webinar on Wednesday, April 20th, 10:00 – 10:50 am (Pacific). They will provide an overview of the most common and ...
Budget update
 March 25, 2011

Last week, the California State Legislature approved the main budget bill, SB 69, but indicated that they would hold onto the legislation until the yet-to-be-determined outcome of revenues is addressed.  However, the two houses sent Governor ...
Assembly/Senate begin budget debate
 March 18, 2011

This week, Senate President pro Tempore Darrell Steinberg (D-Sacramento) and Assembly Speaker John Perez (D-Los Angeles) called for a floor debate and budget vote Wednesday (March 16) night to address the looming $26.6 billion budget deficit. The ...
Budget Update
 March 11, 2011

The Senate and Assembly postponed their votes on the budget that were tentatively scheduled for this week. State Controller John Chiang warned them that he may need to resort to "invasive cash conservation options" before July unless they ...
Governor sets deadline for ballot initiative
 March 3, 2011

Governor Jerry Brown says he can reach a budget deal with the Legislature by March 10, a date that is close to his deadline to put tax extensions on the June ballot.  Brown said he is not yet certain what the absolute deadline to force a June ...
LAO projects lower revenues in out-years
 Feb. 25, 2011

The Legislative Analyst’s Office announced in its recent revenues forecast report that it generally agrees with Governor Jerry Brown’s assumptions regarding how much revenue California will receive over the next 17 months under his ...
Nexus rises again
 Jan. 28, 2011

Two bills were introduced in the Assembly last week aimed at forcing online retailers to collect sales tax on California purchases. Assemblywoman Nancy Skinner (D-Berkley) unveiled AB 153 at a press conference. It is similar to legislation she ...
Mandatory Single Sales Factor
 Jan. 28, 2011

Senator Kevin de Leon (D-Los Angeles) introduced SB 116 last week. It would require all businesses (except those corporations engaged in qualified agriculture, extractive of banking activities) to use the “single sales factor” to source ...
LAO overview of budget proposal
 Jan. 21, 2011

The Legislative Analyst Office (LAO) unveiled their analysis of the Governor’s proposed budget last week stating that the proposal, which includes significant reductions in nearly every area of the state budget and a package of revenue ...
Majority vote tax increase proposal?
 Jan. 21, 2011

Will Governor Brown and the democrat majority-led legislature be able to pass a revenue-raising ballot initiative without the assistance of Republicans?  While constitutional lawyers across the state debate, state leaders are contemplating two ...
Brown releases budget proposal
 Jan. 14, 2011

Governor Brown released his proposed 2011-12 fiscal year budget on January 10th that aims to close California’s estimated $25.4 billion budget deficit over the next 18 months. The continuing shortfall is a result of a variety of factors ...
Governor proposes elimination of key economic programs
 Jan. 14, 2011

The makings of a legal battle over the Governor’s proposed elimination of redevelopment agencies and enterprise zones may be in the works.  State and local governments are arguing that the elimination of these important economic programs ...
Budget news
 Jan. 7, 2011

Governor Jerry Brown will release his budget proposal on Monday, January 10th, that will include significant reductions in state programs and call for tax increases to be put to the voters in a special election. In addition to the usual cuts and ...
Jerry Brown holds budget forum
 Dec. 10, 2010

California Governor-elect Jerry Brown hosted a gathering of state lawmakers Wednesday (Dec. 8th) and warned that the state's budget shortfall over the next 19 months could be larger than expected—$28.1 billion instead of $25.4 ...
Another special session called on the budget
 Dec. 3, 2010

Despite outgoing Governor Schwarzenegger’s call for a special emergency special session to address the current budget year’s multi-billion deficit, legislative leaders of the majority party in both houses will likely ignore it and ...
LAO’s 2011-12 fiscal outlook for California
 Nov. 18, 2010

Last week, the nonpartisan Legislative Analyst’s Office (LAO) released its economic outlook for the 2011-12 fiscal year, suggesting that the state faces a budget deficit of $25.4 billion heading in to the budget year. Their deficit consists of ...
Economy wins – Prop 24 defeated
 Nov. 5, 2010

While there were few bright spots for California employers from Tuesday’s votes, one significant victory was the successful defeat of Proposition 24.  Prop 24, otherwise known as the “Job’s tax” would have repealed ...
Yes on prop. 23 – save jobs, stop the energy tax
 Oct. 25, 2010

We all want to do our part on global warming, but with 2.3 million Californians already unemployed and the state facing a $20 billion budget deficit, protecting jobs and the economy should be our first priority. Proposition 23 is a common sense ...
Budget is over – for now
 Oct. 8, 2010

Nearly 23 hours after the budget floor sessions began in both houses Thursday, the California State Legislature passed a state spending plan. The legislative action, taken 100 days past the start of the state’s current fiscal year, officially ...
“Scarlet Letter” tax reporting bill vetoed
 Oct. 1, 2010

On the final day for action on hundreds of bills, the Governor vetoed AB 2666 (Nancy Skinner, D-Berkeley), a bill which would have required the largest California employers have their confidential tax information on a public, state-controlled ...
More IOUs to be delayed
 Sept. 10, 2010

California leaders closed the week once again without much progress on the budget, thus marking the 11th week of the current fiscal year the state has operated sans a spending plan. For the past several weeks, the State Controller has been warning ...
Budget Update
 Sept. 3, 2010

The final day of the legislative calendar came and went on August 31st as the clock struck midnight and legislative activity ground to a halt without a budget in place, leaving California’s fiscal plan now 79 days overdue and counting. As ...
Tax incentive programs attacked
 Aug. 27, 2010

As the legislature nears the end of session, three bills attacking state tax incentive programs passed legislative hurdles on the floor this week that further threaten to erode California’s already damaged business climate. The Assembly gave ...
State IOUs to start in about two weeks
 Aug. 20, 2010

This week, State Controller John Chiang warned that California will likely begin issuing registered warrants (IOUs) in as little as two weeks due to the state’s ongoing budget impasse. Chiang blames politics for the cash shortage, and urged ...
Controller: revenues down – expenditures up
 Aug. 13, 2010

This week, California State Controller John Chiang released the July 2010 cash receipts report. July’s revenues fell below the Governor’s May Revision estimates for the budget by $91 million.  Personal income tax revenues fell ...
Budget update: To tax or not to tax, that is the question (again)
 Aug. 6, 2010

California legislators returned to the Capitol this week after a month-long break in their districts. There are now four weeks to the end of session.  On Tuesday, Assembly Speaker John Perez (D-Los Angeles) and Senate President Pro Tempore ...
Governor sues Controller over state workers pay in absence of budget
 July 9, 2010

Fresh off a major legal victory on the same issue, Governor Arnold Schwarzenegger's administration filed another lawsuit against the State Controller this week in an effort to force him to pay California government workers only the federal minimum ...
First day of the fiscal year comes and goes without a budget
 July 2, 2010

Welcome to the 2010-11 fiscal year. The July 1st fiscal year “deadline” was met this week with similar ambivalence to the June 15th constitutional deadline by our Legislature. The Conference Committee has been silent since last week, and ...
Dynamic analyses bill rolls to second house
 July 2, 2010

One of CMTA’s top priorities this year is regulatory reform, analysis and oversight. SB 1160 (Bob Dutton, R-Inland Empire), as introduced, required a dynamic economic analysis of regulations, tax and budget proposals. It was amended last month ...
Senate dems unveil government restructuring proposal
 June 24, 2010

On June 21st,The Senate Democrats unveiled their “Multi-Year Government Restructuring Plan” aimed at realigning how and where finances and services are provided in the state. Under the proposal, the state would begin to transfer $3-4 ...
Budget Update: When it rains it pours
 June 11, 2010

It seems as if even the Feds have little interest in helping out California during yet another dreary budget season.  Last week, Congress stripped out provisions of a state aid bill that would have sent $24 billion, mostly to cover healthcare ...
Budget conference committee members named
 June 4, 2010

In an effort to resolve conflicts between the two houses on budget decisions, legislative leadership has announced the makeup of the Budget Conference Committee.  The Committee is expected to begin its work this afternoon and will be comprised ...
State may avoid IOUs this summer
 June 4, 2010

This week, California State Controller John Chiang (D-Los Angeles) released a letter to the Governor and state lawmakers indicating that the state would have enough cash to pay bills through the month of August.  The reserves may help the state ...
Budget Update: Episode II: The Democrats Strike Back
 May. 28, 2010

This week it was the Democrats turn to unveil their nearly $20 billion deficit- and reserve-closing budget package.  In sharp contrast to the Governor’s May Revision, which called for significant cuts, borrowing and no new taxes, Senate ...
Governor's 'May Revise' of budget just announced
 May. 14, 2010

At the time of this publication Governor Arnold Schwarzenegger was submitting his “May Revise” state budget proposal, which forecasts the state of California’s finances and proposes new strategies to balance the budget. Despite ...
Join the Stop Hidden Taxes Coalition
 May. 7, 2010



You can help improve the business climate in California by stopping politicians from using the "Sinclair Paint" loophole to disguise new taxes as "fees." If the Stop Hidden Taxes ballot initiative passes, politicians could ...
Bills want companies taking tax credits to be posted on the internet
 April 16, 2010

As is typical this time of year, there are a myriad of bills racing through the legislative process to beat the deadline to pass their first policy committee.  And once again, legislation aimed at Tax Expenditure Programs maintains a pervasive, ...
Tax conformity bill heads to Governor
 April 9, 2010

After a long, arduous five-year journey, California finds itself now on the precipice of achieving modified conformity between the state and federal tax codes. Both the Senate and Assembly passed SB 401 (Lois Wolk, D-Davis) today, April 8th. It now ...
Targeted tax/fee fails first attempt in Assembly Health Committee
 April 2, 2010

Last week, the Assembly Health Committee considered AB 1694, a bill authored by San Jose Assemblyman Jim Beall (D) which would impose a 5-cent fee on alcoholic beverages to help fund the creation of an Alcohol Related Services Program. After a ...
Mid-term deal reached on state budget
 March 26, 2010

California’s mid-year budget drama finally wrapped up on Monday, as the Legislature and Governor reached a deal that allowed for the passage of a controversial gas tax swap in exchange for two “jobs” tax credit bills aimed at ...
California rated worst state on tax administration
 March 12, 2010

According to the Council on State Taxation’s recently released report, California has the nation’s worst state tax administration practices. California scored a D-minus, the lowest grade of any other state, based on an eight criterion ...
Mid-term budget proposes gas tax swap
 March 5, 2010

The California State Senate and Assembly were back in action this week to consider the final piece of the mid-term budget proposals aimed at closing nearly a quarter of California’s $20 billion deficit. The cornerstone of the proposal sent to ...
Federal 'conformity' bill moves out of Assembly committee
 Feb. 26, 2010

On Wednesday, February 24th, the Assembly Revenue & Taxation Committee considered and passed out on a party-line vote the federal omnibus tax conformity bill. SBx8 32 (Lois Wolk, D-Stockton). The aim of this 108-page bill is to bring ...
Mandatory single sales factor
 Feb. 19, 2010

AB 1935 (Kevin de Leon, D-Los Angeles) would require the singles sales apportionment factor scheduled to be allowed for corporate filers in 2011 to be mandatory for all qualifying taxpayers.  In its current form, the single sales factor was ...
Single sales factor repeal initiative moving forward
 Feb. 5, 2010

The California Teachers Association (CTA) has officially authorized the formation of a committee and will begin signature gathering to qualify their “corporate loophole” measure. The title and summary have already been approved by the ...
Governor's 2010-11 Budget Proposal
 Jan. 8, 2010

With little fanfare and considerable concern amongst all the various constituencies, Governor Schwarzenegger unveiled his 2010-11 budget proposal today, January 8, with his Finance Director, Ana Matosantos. The $82.9 billion proposal is aimed at ...
Legislative analyst projects $21 billion budget deficit
 Nov. 20, 2009

On November 18th, California’s non-partisan Legislative Analyst Mac Taylor released his office’s report detailing a sizeable $21 billion state budget shortfall over the next year and a half.  “California’s Fiscal ...
Gov’s finance director resigns
 Nov. 6, 2009

This past Monday, November 1st, Governor Schwarzenegger’s Director of Finance Mike Genest announced his resignation. Genest’s four years as director marks the second-longest tenure in that role since Ronald Reagan was Governor of the ...
More taxes proposed on oil industry
 Oct. 30, 2009

This week Assemblyman Pedro Nava (D-Santa Barbara) introduced legislation (AB 1 in the Sixth Extraordinary Session) that would place a 10 percent gross value tax on all oil producers in California.  Under the measure, the tax is strictly ...
New initiative introduced to repeal economic stimulus reforms
 Oct. 30, 2009

An initiative filed on October 16, 2009, if passed by voters, would repeal the elective single sales factor provisions enacted in SBx3 15 (Ron Calderon, D-Montebello)and would repeal both the Net Operating Loss (NOL) carryback and the tax credit ...
General fund lowest on record
 Oct. 8, 2009

This week, the Legislative Analyst Office (LAO) released a summary and assessment of the 2009-2010 state spending plan and announced the official 2008-09 revenue numbers. Because the Legislature did not reduce 2008 09 spending as much as the decline ...
Tax commission releases final report
 Oct. 2, 2009

The California Commission on the 21st Century Economy (Tax Commission) released their final recommendations to the Governor and legislature on September 29th at a press conference held with the Governor. Joined by Commission Chairman Parsky and ...
California conformity with federal tax has a flaw
 Sept. 10, 2009

AB 1580 (Charles Calderon, D-Whittier) makes various date and tax law changes in the California Tax Code to conform (with exceptions and modifications) to the federal Internal Revenue Code. The conformity bill, at 113 pages, generally must have ...
Bill would automatically sunset new tax credits
 Sept. 4, 2009

While the mad dash to the finish line in the state legislature continues throughout next week, one bill currently up for consideration is ACA 6 (Charles Calderon, D-Whittier) which if passed, could further devastate California’s business ...
Special session to address Tax Commission findings
 Aug. 6, 2009

Last week, the Governor announced that he would be calling a special "extraordinary" session of the legislature in order to address the findings and recommendations of the Commission on the 21st Century Economy (Tax Commission).  ...
Jerome Horton Appointed to BOE
 July 17, 2009

Governor Arnold Schwarzenegger this week appointed former Assemblyman Jerome Horton to the state Board of Equalization, filling the seat vacated by Dr. Judy Chu, who was sworn in to the United States Congress earlier Thursday.The Board of ...
Labor backed ballot initiative threatens economic reforms
 July 10, 2009

On July 8th, labor-backed interests filed a corporate tax initiative proposal with the Attorney General’s office for official title and summary. Specifically, the measure would repeal the elective single sales factor provision passed in the ...
State to issue IOUs
 July 2, 2009

Despite a whirlwind of activity over the past few days including a variety of negotiations, reported deals, blown up deals and Governor vetoes, the state’s deadline (June 30th) to avoid the issuance of IOU’s went by without a deal. As ...
Budget Update: Budget Conference Committee Adopts Tax increases
 June 17, 2009

The Joint Budget Conference Committee finalized their two-week journey through the Administration's May-Revise budget balancing plan today, but not before bringing forward and passing revenue raising/tax proposals this evening that inspired vigorous ...
California Tax Commission – Business Net Receipts Tax
 June 12, 2009

On June 16th, the California Commission on the 21st Century Economy (i.e. Tax Commission) will hold their next to last public hearing.  They will discuss the merits of a Business Net Receipts Tax (NRT) and review the imposition of such a tax in ...
California budget: May revise - apocalypse, business as usual, or both?
 May. 15, 2009

At a May 19th press conference, the Governor announced his 2009-10 May Budget Revision.  As has been widely reported, state revenues have continued to fall well short of expectations due to the struggling economy.  The Governor articulated ...
Obama Corporate Tax Plan: Leveling the playing field or leveling the players?
 May. 8, 2009

On May 4, the Obama Administration unveiled its proposals for raising approximately $210 billion over 10 years by curbing what it characterizes as corporate "loopholes" that allow companies investing overseas to gain an unfair advantage ...
Enterprise zone bill threatened California economic recovery
 May. 1, 2009

On Wednesday, April 29, 2009, the Assembly Jobs, Economic Development and the Economy Committee considered AB 1139 (John Perez, D-Cathedral City) that would have gutted the California Enterprise Zone (EZ) program by creating new conditions and ...
Ballot measures success uncertain
 May. 1, 2009

On May 19, voters will decide on a handful of measures to address the budget crisis including tax increases and a spending cap.  CMTA is supporting 1A (Spending Cap), 1C (Lottery Securitization), 1D (First 5 Redirection), 1E (Mental Health ...
SB 401 – Broad tax penalty provision threatens legitimate business activity
 April 24, 2009

This week, the Senate Revenue and Taxation Committee passed SB 401, a measure authored by the Committee Chair, Senator Lois Wolk (D-Linden), that would expand the definition of transactions that are subject to the punitive interest penalty of ...
California Commission on the 21st Economy: Prop 13 and Split Roll
 April 17, 2009

California’s "Commission on the 21st Century Economy" held their fourth meeting at the University of Davis last Thursday where the main focus of the day was the third rail of state politics – possible changes in property taxes ...
Promoting California jobs & investment: Research & Development
 April 9, 2009

CMTA is pleased to announce the introduction of  AB 765 (Anna Marie Caballero, D-Salinas and Ira Ruskin, D-Redwood City), a bill CMTA is co-sponsoring with the Technology Association of America.  It conforms the California Research & ...
CMTA sponsors phased-in sales tax exemption bills
 April 3, 2009

With over 20 legislative co-authors and nearly 40 major corporations, business organizations, private trade labor unions and others signed on in support, CMTA has officially introduced its sponsor bills, AB 829 (Anna Marie Caballero, D-Salinas) and ...
Packaging taxes
 March 20, 2009

A number of bills introduced this session purport to reduce litter and the amount of material going to landfill. If passed, they will result in cost increases for a plethora of products being sold in the State.AB 68 (Julia Brownley, D-Santa Monica) ...
Tax commission seeks extension
 March 20, 2009

It appears as if California taxpayers are not the only one’s who would rather not meet a April 15 deadline this year.  During last week’s meeting of the California Commission on the 21st Century Economy, the commissioners decided ...
Budget passes!
 Feb. 20, 2009

The California State Legislature passed a state budget early Thursday morning, February 19th, that addresses the state’s $42 billion deficit.  There was a significant amount of political intrigue, negotiation and horse-trading that went ...
Formation of the Assembly Stimulus, Economic Recovery, and Jobs Task Force
 Feb. 20, 2009

As the California legislature struggled with closing the budget, President Barack Obama signed the American Recovery and Reinvestment Act.  The federal economic stimulus package could result in billions of additional dollars to ...
California state budget update
 Feb. 13, 2009

The Big 5 budget negotiations came to a close this week and emerged with a tentative deal to close the state’s estimated $42 billion dollar deficit.  Specific details of the proposal continue to trickle out of the Capitol as leadership ...
Tax Commission’s second hearing to be held Thursday
 Feb. 11, 2009

The California Commission on the 21st Century Economy (COTCE) will hold its second of four scheduled meetings this Thursday, February 12, at the University of California, Los Angeles Campus.  The agenda for the hearing, which can be viewed here ...
Creating jobs in California – Promoting growth of the middle class
 Feb. 6, 2009

California consistently ranks first in the number of patents, access to capital and start-up companies created, but we are consistently ranked at or near the bottom in every other business metric.  Unfortunately, this indicates that while ...
Creating jobs in California – Repeal corporate understatement penalty
 Jan. 30, 2009

One of the most egregious components of the California State Budget passed last September (2008) is a tax penalty that created a first-in-the-nation strict liability – a 20 percent penalty on corporations that understate their tax liability. ...
Creating jobs in California – R&D credit
 Jan. 23, 2009

As part of the organization’s legislative tax package aimed towards the retention and growth of jobs in 2009, CMTA will be co-sponsoring a bill that, if successful, will conform the Research and Development (R&D) tax credit rate to that of ...
Governor’s tax commission set to begin work
 Jan. 16, 2009

The first meeting of the 12-member Commission on the 21st Century Economy has been set for January 22, 2009 at the University of California, San Diego.  The meeting agenda for this first of four public hearings geared towards revolutionizing ...
Another special session for California’s budget woes
 Dec. 5, 2008

The 2009-2010 legislative session is off and running. Facing an estimated $28 billion revenue shortfall over the next 20 months, California legislators had little time to enjoy their recent election success as they face California’s depressed ...
Economic Recovery Task Force
 Dec. 5, 2008

On the second day of the new legislative session Senate President pro Tempore Darrell Steinberg (D-Sacramento) and Assembly Speaker Karen Bass (D-Los Angeles) announced a cornerstone of their strategy to turn California’s economy around ...
New policies and investments needed for California’s economy
 Nov. 21, 2008

California faces a significant and devastating revenue problem in this reeling economy. The Legislature's nonpartisan fiscal analyst Mac Taylor said last week the state is facing a $27.8 billion shortfall over the next 19 months. With state revenues ...
Republicans pledge to make jobs their top priority
 Nov. 14, 2008

Senate and Assembly Republican leaders say they are united in putting Californians back to work.  As the California Legislature grapples with the current budget deficit and the overall economic crisis of the State, talks are underway to develop ...
Economic stimulus proposed in Special Session budget
 Nov. 7, 2008

In October California suffered a staggering decline in state tax revenues, partly the result of a 50 percent drop-off in capital gains tax receipts. This loss joins the chronic structural deficit and gloomy economic forecasts to create a projected ...
Another special session to address state’s worsening finances
 Oct. 31, 2008

The Governor announced this week that he will call the Legislature to a Special Session to address the state’s fast growing deficit.  Estimates of the shortfall for this year has grown from $3 billion to $10 billion or more as the state ...
New legislative analyst – Mac Taylor
 Oct. 22, 2008

This week, state legislators named a 30year veteran of the Legislative Analysts Office (LAO) to be the Capitol’s new chief legislative analyst.Mac Taylor was selected by the Joint Legislative Budget Committee to succeed the longtime office ...
California budget – $5.8 billion more in business taxes in '09
 Oct. 16, 2008

In light of recent developments indicating that the state’s budgetary challenges are continuing and another special session may be necessary, a large coalition of business community leaders believe it is important for decision-makers to have ...
The give and take (and take and take) of California tax law
 Sept. 26, 2008

With California’s long-overdue budget finally enacted into law, we now have the opportunity to take a step back and evaluate the carnage to the business climate left in its wake.  One of the most significant provisions within the budget ...
Single-payer health care proposal awaits verdict once again
 Sept. 12, 2008

As Governor Arnold Schwarzenegger and the legislature continue to have a stand off on the budget, the fate of hundreds of bills remains unknown.  Among them is SB 840 (Sheila Kuehl, D-Santa Monica) which would establish a government-run, ...
The tax man cometh…again…
 Sept. 12, 2008

Legislation has recently been introduced in California’s ongoing special fiscal emergency legislative session that will likely increase the cost of doing business in the state.  ABx3 30 (Charles Calderon, D-Whittier) would immediately ...
Another business burden in the name of federal conformity
 Aug. 8, 2008

The California State Senate will soon consider AB 1848 (Ma), which would require California businesses to withhold 7% of any payments made to independent contractors.  These payments would have to be remitted to the Franchise Tax Board or the ...
Invest in California? No thanks!
 July 18, 2008

As part of the legislature’s tax increase proposal to eliminate California’s $15.2 billion shortfall, the democrat led budget plan calls for a suspension of the Net Operating Loss (NOL) deduction.  A NOL occurs when certain ...
(More) dismal news for the State
 July 18, 2008

California State Controller John Chiang has announced more bad news regarding the State's current cash situation.  According to the Controller's calculations, California is in the red by $3.9 billion.  Even though the state transferred ...
Democrats propose that businesses pay for state’s budget deficit
 July 11, 2008

The Budget Conference Committee finished reconciling differences between versions of the 2008-09 state fiscal plan drafted by the Assembly and Senate on Tuesday evening, July 9th, on a sharply partisan vote.  Among the tax increase proposals ...
Burdensome income tax withholding bill passes Assembly
 May. 30, 2008

On Wednesday, May 28, the State Assembly passed AB 1848 (Fiona Ma, D-San Francisco) on reconsideration, voting 41 to 33, with 6 abstaining.  AB 1848 would have increased the burden on companies doing business in California by requiring them to ...
To Compete or Not to Compete: Sales Tax Exemption for Manufacturers Needed in California
 May. 9, 2008

For several years, CMTA has been advocating for fair and stable tax treatment for manufacturers doing business in California, pressing the state to allow qualified taxpayers an exemption from the state portion (5 cents per dollar) of the sales tax ...
New talk about service taxes
 May. 2, 2008

As discussions surrounding California's current budget situation become more and more dismal, talks about new service taxes have resurfaced.  Specific services such as movie admissions and health club memberships were mentioned in a letter that ...
Tax credit elimination introduced in the Senate
 April 18, 2008

Legislation has recently been introduced in the Senate that will likely increase the cost of doing business in the state. SB 1484 (Elaine Alquist, D-Santa Clara) would immediately eliminate credits and deductions currently allowed to taxpayers ...
Internet tax
 April 4, 2008

On April 14th the Assembly Revenue and Taxation Committee will hear AB 1956 (Charles Calderon, D-Whittier) which imposes an expansive, unprecedented new internet tax on Californian’s who purchase digital property.   Passage of this ...
Join the "Stop Hidden Taxes" coalition
 March 28, 2008

During the last budget crisis CMTA and CalTAX formed a coalition to fight the imposition of new taxes on businesses disguised as "fees" to fill the budget gap.  Under California law as laid out by the Supreme Court in the "Sinclair ...
Bill seeks to impose tax on digital property
 Feb. 22, 2008

Assemblymember Charles Calderon (D-Whittier) introduced AB 1956, requiring the State Board of Equalization to draft a sales tax regulation that would include digital property in California's definition of taxable tangible personal property.  ...
Local tax incentive disclosure bill
 Jan. 24, 2008

Newly introduced SB 1103 (Gil Cedillo, D-Los Angeles) requires cities, counties, and redevelopment agencies to not only provide specific taxpayer information to the public before approving certain economic development incentives, but also to hold a ...
FTB approves treasury function regulation
 Dec. 6, 2007

The three-member Franchise Tax Board approved a regulatory proposal intended to ease compliance and provide additional clarity for taxpayers.The issue came to a head when the California Supreme Court ruled in the Microsoft and General Motors cases ...
FTB Advisory Board – CMTA company representative needed
 Nov. 2, 2007

The Advisory Board to the Franchise Tax Board is looking to CMTA members to fill an open position. The purpose of the Advisory Board is to provide the Executive Officer with their perspective on the administration of California income tax ...
Over-reach by FTB vetoed
 Oct. 19, 2007

The biggest news on the legislative tax front for many CMTA member companies is the Governor’s veto of AB 1618 (Mike Feuer, D-Los Angeles) which would have repealed the Corporate Interest Expense Deduction.Current law allows taxpayers a ...
Enactment of tax bill sets terrible precedent
 Oct. 12, 2007

Governor Arnold Schwarzenegger has signed AB 198 (authored by the Assembly Budget Committee) which emerged in the final hours of this legislative year as a "gut and amend" measure to limit the rights of taxpayers in pending and future litigation ...
11th hour attack on taxpayer rights
 Sept. 21, 2007

During the final hours of this legislative year, AB 198 (Committee on Budget) was gutted and amended to limit the rights of taxpayers in pending and future litigation over the constitutionality of the state's fees on Limited Liability Corporations ...
Will "pre-texting" bill restrict legitimate investigations?
 Aug. 24, 2007

SB 328 (Ellen Corbett, D-San Leandro) attempts to address concerns regarding identity theft by imposing restrictions on the notion of "pre-texting." Pre-texting is the act of creating and using an invented scenario (the pretext) to persuade a target ...
The economic stimulus package & the state budget
 Aug. 10, 2007

On July 20th, the state Assembly approved the overall state budget and a series of other agreed upon budget related bills. The bills reflected a compromise among the Assembly leadership, including an "Economic Stimulus Package" that was approved in ...
State budget still stuck
 Aug. 3, 2007

On August 1 the Senate voted on the budget that was previously approved by the Assembly, only to fall short by a single vote. Senator Maldonado (R-Santa Maria ) broke ranks with his caucus and provided one of the two votes needed to pass the budget. ...
Major tax reform initiative submitted to AG
 July 20, 2007

A new tax-related initiative was filed on July 16th with the State Attorney General for its title and summary. Proponents refer to it as the "California Flat Tax". In brief, it will repeal the personal income tax, withholding and information ...
Movie industry tax credit arguments are same for manufacturers
 July 13, 2007

This week, the Senate Revenue and Taxation Committee heard testimony on a bill to provide a tax credit for motion picture production. SB 740 (Ronald Calderon, D-Montebello) allows a qualified taxpayer a tax credit for qualified motion picture ...
Tax roundup
 June 1, 2007

While not much passed out of the Assembly Revenue and Taxation Committee’s suspense file on May 21st, some tax-related measures also made it through the Assembly Appropriations Committee: • AB 493 (Ira Ruskin, D-Redwood City) ...
Assembly Rev & Tax Committee Holds "Suspense" Hearing
 May. 25, 2007

This week, the Assembly Revenue and Taxation Committee held its customary "suspense" hearing for first house bills. The suspense file is where tax incentive or tax increase bills are generally sent after each measure has a hearing. This year very ...
Hearing of CMTA’s sales tax exemption
 May. 11, 2007

This week, the Assembly Revenue and Taxation Committee heard testimony on the CMTA-sponsored bill, AB 1152 (Roger Niello, R-Sacramento), which proposes a 5-cent sales tax exemption on the purchases of manufacturing equipment. According to the ...
CMTA-sponsored tax incentive bill set for hearing
 April 20, 2007

On April 30, the Assembly Revenue & Taxation committee will consider the CMTA-sponsored sales tax exemption proposal, AB 1152 (Niello R-Sacramento). Specifically, the proposal would provide a 5-cent sales tax exemption on purchases of ...
Research and Development Tax Credit Workshop
 April 5, 2007

Tuesday, April 10thFrancesco's Restaurant, 8:00am8520 Pardee Dr. (at Hegenberger Rd., Oakland, CA) Join CMTA member, the Tax Projects Group, at a morning breakfast session with nationally recognized speaker, Randy Eickhoff, for an informative and ...
Upcoming R&D tax credit seminars
 March 23, 2007

California currently enjoys a 15 percent Research and Development (R&D) tax credit.  New efforts in the state legislature would improve this credit even further by increasing it to 20 percent (AB 751, Ted Lieu, D-El Segundo) and applying a ...
R&D credit enhancement efforts at both state and federal level
 March 9, 2007

Research and Development (R&D) tax incentives are getting renewed attention and support both in Congress and in the California state legislature. With the federal government making a number of positive changes to the R&D credit in 2006, ...
CMTA sponsors tax incentive bills
 March 2, 2007

CMTA continues to strongly advocate for competitive tax policy for manufacturing and research and development (R&D) investments within California. This session, CMTA is also sponsoring two pieces of legislation: AB 1152 (Roger Niello, ...
Attempt to repeal capital investment incentive program
 Feb. 23, 2007

In 1997, the Legislature created the Capital Investment Incentive Program in an effort to stimulate capital-intensive growth at the regional level.  A new bill, (SB 360, Gloria Negrete McLeod, D-San Bernardino), would end the program.Under the ...
Tax bills focus on healthcare
 Feb. 16, 2007

Both houses of the legislature are holding their first hearings on the Governor's healthcare proposal. An increasing number of tax bills are focusing on healthcare as well, with specific attention to Health Savings Accounts (HSAs). HSAs were created ...
New board of equalization chair
 Feb. 1, 2007

The Board of Equalization (BOE) voted unanimously to name Member Betty Yee (D-District 1) as its Chair. In 2004, Yee was appointed as "acting member" as a result of former Board Member Carole Migden being elected to the State Senate. In November ...
Tax issues so far
 Jan. 19, 2007

With the bill introduction deadline still over a month away (February 23rd), the flow of introduced bills can be described as a trickle, at best. So far, the most notable proposed pieces of tax legislation range from an elimination of the income ...
BOE action reignites how alcohol should be taxed
 Dec. 15, 2006

The Board of Equalization (BOE) voted three to two to take the initial step towards increasing the tax on a specific segment of the alcoholic beverage market. The products at issue are those often sweeter drinks marketed as "flavored malt beverages" ...
New Chairs announced for Revenue & Taxation Committees
 Dec. 8, 2006

Leadership from both houses of the Legislature announced changes in the top posts of the Revenue and Taxation Committees. On the Senate side, Speaker pro Tempore Don Perata (D-Oakland) appointed former Assemblymember, and now Senator, Jenny Oropeza ...
Tax credits: Supreme Court decision invites legislative solution
 Nov. 2, 2006

On August 17th the California Supreme Court ruled in favor of the California Franchise Tax Board (FTB) with regard to the availability of research and development tax credits. Specifically, the court held that the research and development credit can ...
Legislative push next year on clean combustion technologies
 Nov. 2, 2006

When Governor Arnold Schwarzenegger signed into law a bill that removes fossil fuel combustion technologies from the Self-Generation Incentive program (SGIP) – a measure strongly opposed by CMTA and other business groups – he noted that ...
No on 87 - the $4 billion oil tax increase
 Oct. 13, 2006

No on 87- the $4 billion oil tax increase. There's no question we need to advance energy alternatives, but Proposition 87 is not the way to get there. It would increase California oil taxes by $4 billion and create a new state bureaucracy of 50 ...
Governor signs pro-taxpayer bill
 Sept. 29, 2006

The Governor signed AB 2182 (Gene Mullin, D-S. San Francisco), a bill that should lead to the more accurate taxation of non-production computers, semiconductor manufacturing equipment, and biopharmaceutical industry equipment and fixtures. ...
Container tax bill vetoed
 Sept. 22, 2006

In 2005, Senator Alan Lowenthal (D-Long Beach) introduced SB 760 to impose a $60 tax on every container ($30 for every twenty-yard-equivalent unit, with most units being forty yards) that passed in or out of the Long Beach and Los Angeles ...
End of session corporate counsel & tax round-up
 Sept. 1, 2006

Corporate Counsel AB 457 (Fabian Nunez, D-Los Angles) Expansive Price Caps: OPPOSEImposes stiff price caps on a wide range of products and services during periods of "abnormal market disruption" and/or when a state of emergency exists. AB 457 casts ...
Burdensome & punitive tax bill sent to Governor
 Aug. 25, 2006

On August 21st, the Assembly approved AB 675 (Johan Klehs, D-San Leandro) to require corporations in California with assets over $10 million to file with their tax returns a reconciliation between their financial statement's reported income and ...
Hyper-Weighted Sales Factor Bill Considered
 Aug. 11, 2006

The Senate Revenue & Taxation Committee held a lengthy hearing on AB 1037 (Dario Frommer D-Glendale), which seeks to relieve the current taxation penalty whenever a company adds a job or facility within California. Currently, California uses an ...
Corporate tax rate increase on November 7th ballot
 Aug. 4, 2006

In an effort to create a publicly financed campaign system in California at a cost of over $200 million a year, the California Nurses Association and the Foundation for Consumer and Taxpayer Rights (trial lawyers) are sponsoring Proposition 89, the ...
Mid-session tax bills update
 June 30, 2006

In the race to meet the second house policy committee deadline this week, a number of key developments occurred on tax bills of concern to CMTA members. AB 675 (Johan Klehs, D-San Leandro) was approved by the Senate Revenue and Taxation Committee ...
Property tax valuation study bill moving swiftly
 June 16, 2006

The Senate Revenue and Taxation Committee approved AB 2182 (Gene Mullin, D-So. San Francisco) which is sponsored by the Board of Equalization (BOE) and could provide more updated and accurate taxation of certain equipment for the semi-conductor, ...
CMTA sends governor support letter for a sales tax exemption
 June 15, 2006

On June 9, CMTA sent a letter to Governor Arnold Schwarzenegger urging him to include a sales tax exemption on the purchase of manufacturing equipment as a part of the 2006-2007 budget.  California is one of only three states that tax ...
Tax increase bills still alive
 June 2, 2006

With the 2006 primary elections just around the corner and legislators eager to return to their districts, both houses of the legislature worked swiftly through hundreds of bills and concluded their work long before the "house of origin" ...
Tax & corporate counsel appropriations update
 May. 26, 2006

With the impending "House of Origin" deadline on June 2, the Senate and Assembly Appropriations Committees met to swiftly dispense with hundreds of bills that have a fiscal impact and, as a result, were being held on the committee's "suspense file". ...
CMTA sales tax exemption bill advances
 May. 19, 2006

On May 15, the Assembly Revenue and Taxation Committee approved AB 2218 (Alberto Torrico, D-Newark) which is the CMTA-sponsored legislation to establish a state-only 10-year sales tax exemption on manufacturing, high tech, bio-tech and other ...
CMTA sales tax exemption bill gets first hearing
 May. 5, 2006

CMTA is sponsoring AB 2218 (Alberto Torrico, D-Newark) for a 10-year state sales tax exemption on purchases of equipment used in the manufacturing, high tech, biotech, and nanotech industries.  The bill had its first policy hearing this week in ...
Renewed effort for tax agency consolidation
 April 14, 2006

Following a long line of proposals over the years and a previous recommendation from Governor Schwarzenegger's California Performance Review, proponents continue to push for tax agency consolidation of the Board of Equalization (BOE), the Franchise ...
New tax bills: The good, the bad, & the ugly
 March 3, 2006

Last week marked the deadline for introducing new legislation for this session.  The good bills regarding taxes include AB 2016 (Ray Haynes, R-Murrieta) that combines the Franchise Tax Board and the tax responsibilities of the Employment ...
New manufacturing sales tax exemption bills introduced
 Feb. 24, 2006

In 2005, Assemblymember Torrico (D - Newark) carried the CMTA sponsored legislation (AB 1580) to provide manufacturers with a 5-cent sales tax exemption on manufacturing equipment.  AB 1580 died this year because it was held in the Assembly ...
New pro-taxpayer bills introduced
 Feb. 17, 2006

Assemblymember Ted Lieu (D-El Segundo) has introduced two new pieces of legislation aimed at improving California's competitiveness in tax policy:  AB 2032 and AB 2033.   AB 2032 would take California's existing and permanent Research ...
Split roll property tax bill now dead
 Feb. 3, 2006

SB 17 (Martha Escutia, D-Whittier) has long been the legislative vehicle aimed at dramatically increasing corporate property taxes. Although SB 17 has undergone a number of changes, Senator Escutia has been quite clear in her desire to have ...
"Windfall" profits tax bill also dies
 Feb. 3, 2006

AB 673 (Johan Klehs, D-San Leandro) proposed a 2.5 percent windfall profits penalty assessment on petroleum producers and refiners. In this bill, a windfall was considered any profit in excess of the average profit for the previous five years. On ...
Split roll property tax bill has a new twist
 Jan. 27, 2006

In an effort to get SB 17 (Martha Escutia, D-Whittier) out of the Senate and into the Assembly prior to the January 31st deadline and with only a simple majority vote, Senator Escutia has employed the "gut and amend" tactic by removing all ...
Windfall profits tax bill advances - again
 Jan. 20, 2006

As referenced in the previous Legislative Weekly, AB 673 (Johan Klehs, D-San Leandro) proposes a 2.5 percent windfall profits penalty assessment on petroleum producers and refiners. In this bill, a windfall is considered any profit in excess of the ...
Windfall profits tax bill advances
 Jan. 13, 2006

Just days before the first Assembly Revenue & Taxation committee hearing of 2006, Chairman Johan Klehs (D-San Leandro), stripped his bill, AB 673, of its previous contents dealing with "employment conditions" and inserted entirely new language ...
Senate President Pro Tempore to address CMTA membership
 Jan. 6, 2006

Senate President Pro Tempore Don Perata (D-Oakland) will be the featured Keynote Luncheon speaker at this year's CMTA Tax & Budget Symposium on January 17 in Sacramento. On the heals of the Governor's State of the State address and the ...
BOE proposal to increase oil refinery property tax assessments fails
 Dec. 16, 2005

This week the State Board of Equalization (BOE) considered a proposal (Rule 474) by board member Claude Parrish (R-Rancho Palos Verdes) and the Assessor community to treat petroleum refineries very differently from other manufacturing and "heavily ...
"Effectiveness" of tax incentives to be scrutinized again in 2006
 Dec. 8, 2005

With the state's long-term budget projections remaining weak, the issues of accountability and effectiveness will dominate discussions on existing and new tax incentive programs. Over the last several years – whether the focus was extending ...
San Francisco Compromises on Bag Tax
 Nov. 10, 2005

Earlier this year, there was a proposal before the city of San Francisco to charge a 17-cent fee on both plastic and paper grocery bags.  It would have allowed the fee to be placed on any recyclable material without a public meeting although ...
New Chair for Senate Appropriations invited to CMTA Tax & Budget Symposium
 Nov. 10, 2005

In a surprise move, Senate pro Tem, Don Perata (D-Oakland) appointed Senator Kevin Murray (D-Los Angeles) to replace Senator Carole Migden (D-San Francisco) as the powerful Chair of the Senate Appropriations Committee. CMTA congratulates Senator ...
BOE decides MIC case in favor of taxpayer
 Oct. 27, 2005

Earlier this week, the State Board of Equalization (BOE) decided Costco's franchise tax appeal with regard to application of the Manufacturers Investment Credit (MIC), a now expired statute in California. The issue before the BOE was whether or not ...
CMTA Tax and Budget Symposium
 Oct. 21, 2005

January 17, 2006, 9:30am to 3:00pm Library Galleria, Sacramento Legislature Reception follows 5:30pm, Capitol Basement Early registration fee $100 (through December 10) Each year CMTA hosts a discussion by California’s leading ...
Governor vetoes hidden tax measure
 Oct. 14, 2005

The Governor vetoed SB 399 (Martha Escutia, D-Whittier) which was estimated to increase the cost of liability insurance for all consumers by 10 to 12 percent. Specifically, SB 399 would have required that when an individual on Medi-Cal was injured, ...
Governor urged to sign tax bill to conform to federal definition of beer
 Sept. 23, 2005

CMTA is asking the Governor to sign AB 417 (Greg Aghazarian, R-Stockton), which simply provides conformity for California's definition of "beer" to the standard adopted by the federal government. AB 417 includes products marketed as "flavored malt ...
CMTA seeks veto on hidden tax measure
 Sept. 16, 2005

SB 399 (Martha Escutia, D-Whittier) provides the wrong solution to a very legitimate problem in California. The State has a long-standing history of failing to fully fund the Medi-Cal program and numerous county hospitals are struggling ...
County Assessors Seek to Tax Aircraft Software
 July 29, 2005

AB 964 (Horton), a bill that is largely focused on ensuring that aircraft are valued uniformly throughout the state by avoiding duplicative taxation efforts, has another little noticed provision that seeks to specifically capture embedded, or ...
BOE Issue – Taxability of Emission Reduction Credits
 July 22, 2005

The Board of Equalization’s (BOE) Property Tax Committee began the "interested parties" process on July 12 to determine the taxability of emission reduction credits (ERCs), with specific attention on state-assessed electric ...
Pay-Back from Net Operating Loss Budget Deal
 July 15, 2005

Part of the 2002-2003 legislative budget agreement was a two-year suspension on the carry forward of net operating losses (NOLs) provisions in the California tax code.   These tax provisions allowed companies doing business in California, that ...
CMTA & Others Warns of Hidden Taxes in Budget & Bills
 June 3, 2005

On June 1st, CMTA President Jack Stewart joined Larry McCarthy, President of the California Taxpayers’ Association and Allan Zaremberg, President of the California Chamber of Commerce in a press conference to announce the "Stop Hidden ...
Bills to Increase Corporate Taxes on Floors of Both Houses
 May. 27, 2005

A number of onerous tax bills have moved from the Senate and Assembly Appropriations committees to their respective houses for consideration. The bills were approved on strict party-line votes as democrats characterize the majority of the bills as ...
CMTA-sponsored sales tax exemption bill to be heard May 16th
 May. 13, 2005

On Monday May 16th, the Assembly Revenue and Tax Committee will hear AB 1580 (Alberto Torrico, D-Newark), the CMTA-sponsored measure that would provide a 5 cent sales tax exemption on the purchases of manufacturing, research and development assets, ...
Sales Tax for Services
 April 22, 2005

Assemblymember Joe Coto (D-San Jose) has deleted the prior contents of his AB 9 and inserted new language aimed at establishing a sales tax on various services in California. The new revenue would be earmarked for the Education Finance Account, ...
CMTA pushes sales tax exemption to replace now expired MIC
 April 15, 2005

In January 2004, California’s Manufacturing Investment Credit (MIC) expired due to a finding by the Employment Development Department that the total manufacturing jobs had not grown by 100,000 jobs during the MIC’s existence. In 1993 ...
State Tax “Amnesty” Program Closes Today (April 1)
 April 1, 2005

California’s controversial tax amnesty program (that resulted from last year’s state budget) will close today, April 1st.  The amnesty program is for both the State Board of Equalization (BOE) (sales and use tax only) and the ...
Last Chance for “Sinclair” Fix?
 March 25, 2005

CMTA is encouraging businesses to contribute to the "Close the Loophole on Hidden Taxes" campaign to pass a measure to define "tax" and "fee" in order to prevent the Legislature from passing, on a majority vote, taxes labeled as fees, as allowed by ...
Senator Repeats Proposal to Curb Use of Tax Credits
 March 18, 2005

Senator Martha Escutia (D-Whittier) has introduced SB 27 to prohibit corporations from claiming tax credits for a two-year period to the extent they would reduce "net tax" by more than 50%. (Unused credits could presumably be subject to ...
Will Budget Reform Include a Fix for Sinclair?
 March 11, 2005

Various measures to prevent future state budget deficits are competing to be included in the Governor’s reform package. The package of initiatives could appear on a special election ballot later this year. A top contender to be included is a ...
Assembly Hearing on “Repeal of Major Tax Relief”
 March 11, 2005

At the behest of Chairman Johan Klehs (D- San Leandro), the Assembly Revenue and Taxation committee held an informational hearing to explore the "repeal of major tax relief granted through the general fund 1997 through 2004." The hearing ...
CMTA Sales Tax Exemption Bill Introduced
 Feb. 25, 2005

Assemblymember Alberto Torrico (D-Fremont) has introduced AB 1580 which will serve as CMTA’s vehicle to propose a sales tax exemption (STE) on the purchases of new manufacturing and telecommunications equipment. Qualified taxpayers would be ...
CMTA & Coalition Ask Gov to Prevent Taxes Disguised as Fees
 Feb. 18, 2005

On February 17th, a large coalition signed and delivered a letter to Governor Schwarzenegger asking him to make illegal the practice of imposing taxes disguised as fees and to ensure a proper two-thirds vote on these measures. This need for reform ...
Assembly Rev & Tax Chair Releases “Revenue Options”
 Feb. 11, 2005

New Chairman of the Assembly Revenue & Taxation Committee, Johan Klehs (D-San Leandro), held a press conference this week to release a laundry list of "revenue options" or "budget balancers" that, if enacted, would severely ...
National Spending Lobby Disparages Tax Minimization
 Feb. 4, 2005

The Citizens for Tax Justice and the Institute on Taxation and Economic Policy recently released a report disparaging the use of tax credits and economic development incentives, noting that many companies significantly reduce or completely eliminate ...
CMTA Tax, Budget, & Fiscal Reform Symposium Highlights
 Jan. 28, 2005

This year marks the 3rd year of CMTA’s conference on state tax, budget, and fiscal reform issues. It attracted CMTA member companies, the newly appointed Director of Finance Tom Campbell, key legislators, economists and business ...
New Director of Finance to Address CMTA Members
 Jan. 14, 2005

The newly appointed Director of the Department of Finance, Tom Campbell, will be the keynote speaker or lunch at the upcoming CMTA Tax, Budget, and Fiscal Reform Symposium on January 25th in Sacramento. Additionally, the Legislative Analyst, ...
Assembly Revenue & Taxation Committee Restructured
 Jan. 9, 2005

Assembly Speaker Fabian Nunez (D-Los Angeles) has announced new appointments to the Assembly Revenue and Taxation committee. The partisan makeup of this committee remains the same as last year with five democrats and two republicans. The Chair of ...
CMTA Tax Symposium: Panel to Focus on Long Term Structural Reform
 Dec. 17, 2004

The January 25th CMTA Tax Symposium will again fall on the heels of the Governor’s January budget release. This sets the stage for months of budget deliberations. The symposium is also timed to coincide with the Legislative Analyst’s ...
Voters Oppose Establishing State Tax Court
 Dec. 10, 2004

During the last session, AB 2472 (Lois Wolk, D-Davis) and SB 1424 (John Burton, D-San Francisco) proposed a California Tax Court. It would have been composed of a five-member administrative body intended to replace both the Board of Equalization and ...
New Chair of Senate Revenue & Taxation Committee
 Dec. 3, 2004

Senate President pro Tem-elect Don Perata (D-Oakland) has chosen Senator Mike Machado (D-Linden) to serve as chair of the Senate Revenue & Taxation Committee. Senator Machado was elected to the Senate in 2000 after serving three terms in the ...
CMTA Tax Policy Symposium in Sacramento January 25th
 Dec. 3, 2004

On January 25, 2005 CMTA is hosting its 3rd annual Tax Policy Symposium in Sacramento. Each year CMTA hosts a conference to explore the fundamental, long term reforms the state should adopt in order to improve the function of government and support ...
Board of Equalization Seat Up for Grabs
 Nov. 11, 2004

Current Board Member and Chair of the State Board of Equalization (BOE), Carole Migden (D-San Francisco), handily won her quest in the latest election for California State Senate. She will be sworn into office on December 6th, taking the seat ...
Gov. Appoints Former State Senator Director of Finance
 Nov. 4, 2004

Governor Arnold Schwarzenegger today announced the appointment of Tom Campbell as the director of the Department of Finance. "Tom is a brilliant economist with intricate, first-hand knowledge of public and fiscal policy who shares my commitment to ...
CMTA MIC Roundtable in Los Angeles
 Oct. 22, 2004

Marking the 4th regional CMTA Tax Committee roundtable discussion on reinstating the Manufacturers Investment Tax Credit (MIC) or providing a similar incentive, Assemblymember Mark Ridley-Thomas (D) met with CMTA and several member companies in his ...
California Tax Commission Recommendation (Volume II, Chapter 11)
 Oct. 8, 2004

CMTA agrees with the recommendation to consolidate the administrative functions of the state's multiple tax agencies into a single California Tax Commission. It would provide manufacturers greater certainty, predictability, and fairness in the ...
Tax Relief on Manufacturing Equipment Recommendation (Volume IV, Chapter 1, GG 17)
 Oct. 8, 2004

CMTA supports the CPR recommendation to provide a 5 percent sales tax credit for sales tax paid in the previous year on manufacturing and telecommunications equipment. Most states believe it is harmful and inefficient policy to impose tax on the ...
MIC - CMTA Companies Meet with Revenue & Taxation Committee Chair
 Sept. 19, 2004

CMTA recently held two Tax Policy Roundtable discussions with member companies and the Chairman of the Assembly Revenue and Taxation committee, Rudy Bermudez (D- Norwalk). The first of the two events was on September 8th and included CMTA Tax ...
CPR Recommendations on Tax Policy and Agency Consolidation
 Aug. 9, 2004

With CMTA's input, the CPR suggests that "(t)he Governor should work with the Legislature to provide a 5 percent sales tax credit beginning in 2006 for all sales tax paid in the previous year on manufacturing equipment." With the recent ...
CHI Releases 2004 Biomedical Reports
 July 9, 2004

On June 23, 2004, the California Healthcare Institute (CHI) released two reports titled California's Biomedical Industry and Biomedical Manufacturing in California. According to the general report, California's biomedical industry employs more ...
Corporate Tax Return Disclosure Bill Amended
 June 11, 2004

SB 1496 (Gloria Romero, D-Los Angeles) would have required a publicly-traded company claiming a California tax deduction or credit to disclose confidential taxpayer information directly from the entity’s "most recent tax return." The ...
CMTA Lobbies for Manufacturing Tax Incentive
 June 6, 2004

Coinciding with the first day of the Legislature's Budget Conference Committee deliberations, CMTA led a coalition of member companies on a lobby day at the Capitol to present the case that this year's budget should include a tax incentive for ...
Assessors' Revenue Grab Passes Assembly on 2nd Attempt
 May. 28, 2004

With the May 28th "House of Origin" deadline looming, Assemblymember Rebecca Cohn (D-Saratoga) managed to get her AB 1850 approved with 42 votes, one more than the bare minimum needed for passage. This bill imposes significant new ...
Tax Bill Update: Assembly & Senate Appropriations Suspense Hearing
 May. 23, 2004

This week both the Assembly and Senate Appropriations committees met to dispense with the items that were being held by those committees on their respective "suspense files" for bills with significant fiscal impacts. A few highlights are below: ...
Punitive Personal Property Record Retention Mandate Fails on Assembly Floor
 May. 23, 2004

AB 1850 (Cohn D- Saratoga), which imposes significant new penalties on taxpayers for failing to retain certain business records failed passage on the Assembly floor by a vote of 33 to 37. The bill dramatically expands the definition of ...
CMTA President Jack M. Stewart on Governor Schwarzenegger’s “May Revise” Budget Plan
 May. 19, 2004

Sacramento, CA -- Jack M. Stewart, President of the California Manufacturers & Technology Association has the following reaction to Governor Schwarzenegger’s "May Revise" budget plan: "Governor Schwarzenegger’s "May ...
New Bipartisan MIC Bill Emerges in Assembly
 May. 14, 2004

On May 11th Assemblymember Robert Dutton (R-Rancho Cucamonga) presented his AB 1998 in the Assembly Revenue and Taxation Committee. It would reinstate the 6 percent Manufacturers Investment Credit (MIC) on an indefinite basis. Later in the same ...
Corporate Tax Increases: Bill Amended to Repeal Double-Weighted Sales Factor
 May. 7, 2004

SB 1876 (Dede Alpert, D-San Diego) originally proposed to repeal the water’s edge election, but that provision will be amended out of the bill shortly. The bill now would repeal the double-weighting of sales when apportioning corporate income ...
Punitive Record Retention Mandate Bill Fails
 April 23, 2004

This week in the Assembly Revenue and Taxation Committee AB 1850 (Rebecca Cohn, D-Saratoga) failed passage. CMTA opposed this measure which would have required any person owning, claiming, possessing, or controlling property that is used in a trade ...
Newly-Amended Bill Attacks Existing R&D Tax Credit
 April 2, 2004

Senator Martha Escutia (D-Whittier) recently amended her bill, SB 1501, to reduce the amount and effectiveness of the current Research & Development tax credit. SB 1501 now proposes to decrease the R&D credit from the current 15 percent to 10 ...
Bills to Support in Assembly Revenue & Taxation
 March 22, 2004

The Assembly Revenue and Taxation Committee with its new Chair, Assemblymember Rudy Bermudez (D-Norwalk) will hold its first hearing of the year on March 22. While a number of bills are set for this hearing, it appears as if future hearing dates ...
Senator Proposes Curb on Use of Tax Credits
 March 5, 2004

Senator Martha Escutia (D-Whittier) has introduced SB 1354 to prohibit corporations from claiming tax credits this year to the extent they would reduce “net tax” by more than 50%. (Unused credits could presumably be subject to carry-over rules in ...
Taxes
 Feb. 20, 2004

New Assembly Speaker Fabian Nunez (D-Los Angeles) recently surprised many by indicating that higher taxes are not the first option for the Assembly Democratic leadership. “For my folks, this (recall) election was a wake-up call to look at things ...
Tax Incentives for Manufacturers
 Feb. 6, 2004

The bills introduced last year to extend the Manufacturers Investment Tax Credit failed to meet their January deadlines and are dead for the year. However, two bills to give some tax related support to manufacturing have been introduced this ...
Fostering Bio-Tech Growth
 Feb. 6, 2004

The Assembly Select Committee on Biotechnology held an informational hearing this week titled “Jumpstarting California’s Economy by Fostering Biotechnology Growth”. The purpose of the hearing was to discuss the impact of biotechnology on the state’s ...
House of Origin Deadline Stops Many Onerous Tax Proposals
 Jan. 30, 2004

The end of this week marks a legislative deadline requiring all bills to be out of their “house of origin” in order to be considered during the remainder of the 2003-2004 Legislative session. In the tax issues listed below, this deadline and the ...
CMTA Tax Symposium Highlights
 Jan. 23, 2004

This year’s Tax Symposium attracted over 100 registrants, TV and print media, key legislators, the Governor’s fiscal and tax experts, economists and business representatives. The day focused on the tax and fiscal policy choices facing lawmakers, ...
Governor Does End Run Around Legislature
 Dec. 19, 2003

Governor Schwarzenegger plans to exercise emergency powers to pay local governments in California the $2.6 billion they lost when the car tax was recently rescinded. Much of this local money funds police, fire, and public safety services. His action ...
State Fiscal Crisis and Manufacturing Revival: CMTA Tax Symposium, January 20, 2004, Sacramento
 Dec. 19, 2003

Governor Schwarzenegger was successful in his quest to put a $15 billion bond and balanced budget initiative on the March 2004 ballot. If both measures pass, the borrowing of last year will be legitimized and in future boom years the state will ...
Donna Arduin, Director of Finance, to Speak at CMTA's Tax Symposium
 Dec. 19, 2003

Donna Arduin will be participating in the CMTA Tax Symposium on January 20 just after the release of the 2004-05 budget (see article above). Governor Arnold Schwarzenegger chose Arduin, a Republican, to direct his Department of Finance (DOF) ...
Budget Bail-out Bond & Spending Limits Pending
 Dec. 12, 2003

Governor Arnold Schwarzenegger (R) and legislators resumed discussions on possible bond and spending limitation measures to go on the March 2, 2004 ballot. A deadline of Friday, December 5 originally set by Secretary of State Kevin Shelley (D) was ...
Schwarzenegger May Seek Approval for Initiatives
 Nov. 14, 2003

With Governor-elect Schwarzenegger set to take office this Monday, November 17th, many are expecting quick action on a number of fronts. Schwarzenegger may seek the legislature’s approval of two initiative proposals for the upcoming March 2004 ...
Massive Corporate Property Tax Hike Sought by Teacher's Union
 Oct. 31, 2003

With California manufacturers struggling to cope with skyrocketing workers' compensation costs, enormous energy bills, and an impending six percent tax increase on the purchases of their manufacturing equipment, the threat of a targeted property tax ...
Changes to the Franchise Tax Board and Dept. of Finance
 Oct. 17, 2003

The arrival of Governor-elect Schwarzenegger involves changes for the Franchise Tax Board (FTB). According to the FTB website, "The purpose of the Franchise Tax Board is to collect the proper amount of tax revenue, and operate other programs ...
Schwarzenegger Vows to Fight for Taxpayers
 Oct. 10, 2003

Arnold Schwarzenegger acknowledges that California faces some of the highest costs of doing business in the nation. He appears ready to counter that, or at least avoid any more harm to California's tax climate. In clearly acknowledging ...
Governor’s Recently-Signed Budget Already Being Dismantled
 Sept. 26, 2003

In a major blow to the state’s recently enacted budget, a Sacramento judge ruled unconstitutional the plan to borrow roughly $2 billion for state employee pensions. The pension bonds were a component of more than $15 billion in borrowing the ...
SAVE THE DATE: January 20, 2004, Sacramento, Tax Policy for an Economic Recovery Conference
 Sept. 26, 2003

CMTA is hosting a conference to highlight the impact of tax policy on California’s economy, what should and should not be done to balance the state budget, and why the state must focus on growing tax revenues through economic development. Key ...
Tax Issues: Year in Review
 Sept. 18, 2003

The year began with the state's historic budget deficit overshadowing all other policy issues. While the size of the deficit was a matter of dispute, most in the legislature believed that the deficit was a result of insufficient revenues, rather ...
Critical vote on SB 1064 looming
 Sept. 11, 2003

A bill that would dilute taxpayer rights before the state Board of Equalization by changing the required vote threshold for taxpayer victories has surfaced at the last minute. The Income and Corporation Tax Appeals bill (SB 1064 - Burton) requires 3 ...
Lt. Governor Bustamante Proposes Massive Tax Hikes for Manufacturers
 Aug. 22, 2003

This week several of the front-runners in the election to recall Governor Gray Davis released their plans to resolve the state's budget crisis. Lieutenant Governor Cruz Bustamante (D) released one of the most detailed, yet most disturbing plans ...
U.S. Congress Moves Closer to Banning Internet Taxes
 Aug. 12, 2003

From Manufacturing News -- The Internet Tax Moratorium has been permanently extended by the Senate Commerce Committee. The legislation (S-150) mirrors a similar bill (HR-49) approved by the House Judiciary Committee. Industry has lobbied Congress ...
MIC Extension Suffering In Budget Talks
 July 18, 2003

This week the Senate considered a package of spending reductions proposed by the Senate Republicans to cut $2.7 billion from the Democrats' plan. This GOP plan went down on a party line vote, with 13 Republicans voting for it, one abstaining, and ...
Corporate Property Tax Hike Proposal Stalls
 July 14, 2003

ACA 16 (Loni Hancock, D-Berkeley), proposed significant property tax increases for California's business properties. CMTA opposed the bill this week in the Assembly Revenue and Taxation Committee and it, fortunately, did not pass. The author, ...
Budget Potpourri
 July 7, 2003

Pay Raises Considered for Legislators The week began with the citizens committee charged with setting the salaries of the Governor and Legislators deciding unanimously against any pay increases due to the state's dire fiscal outlook. This ...
CMTA Members Meet with Governor Davis on the MIC
 June 13, 2003

CMTA and other business representatives and trade associations charged into the Capitol on June 12 to meet with more than 25 legislative offices to advocate the importance of the Manufacturers Investment Credit (MIC) and ask for an indefinite ...
MIC Advocacy Day
 June 6, 2003

CMTA continues to lobby the extension of the Manufacturers Investment Credit (MIC). On June 11th, CMTA will partner with a number of state and regional business trade associations and their member companies for an advocacy day of targeted ...
Assembly Dems Reject Governor's Budget Proposal
 June 4, 2003

In a move that stunned Assembly Republicans, the Democrat-controlled Assembly Budget Committee approved a budget plan this week that largely ignored Governor Gray Davis’s proposed spending reductions instead proposing to raise billions of new taxes ...
Assembly Panel Approves MIC Extension
 May. 23, 2003

On Monday, May 19th, the Assembly Revenue & Taxation Committee met to dispense with bills that had previously been placed on the committee's "suspense" file. This policy committee and several others within the legislature have established these ...
Governor's May Revise Met with Mixed Reactions: Over $8 Billion in New Taxes
 May. 16, 2003

Governor Davis has released the May Revision to his January budget plan. According to the Governor, a combination of tax increases, borrowing, and spending cuts are necessary to bridge the $38.2 billion budget gap. CMTA is pleased to see the ...
Assembly Tax & Revenue Committee hears AB 1674 (Indefinite Extension of MIC)
 May. 5, 2003

On May 5, 2003, the Assembly Committee on Revenue & Taxation heard AB 1674, (D-Dutra) which would extend the Manufacturers Investment Taxation Credit indefinitely. More importantly, AB 1674 would repeal both the exemption and credit provisions ...
Tobacco Manufacturers Targeted with Sinclair Fees
 April 4, 2003

SB 676 (Deborah Ortiz, D-Sacramento) will be heard in the Senate Health Committee on April 9th. The bill is an attempt to raise revenues from some manufacturers selling products in California under the broadest authority allowed by Sinclair Paint ...
Ballot Initiative To Ease Passage of Tax Increases
 April 4, 2003

The public employee unions want to reduce the vote threshold required to pass tax increases. The sponsor-named "Budget Accountability Act" was submitted to the Attorney General in hopes of seeing it on the March 2004 ballot. While the thrust of the ...
Senate Committee Approves New Alcohol Tax
 March 28, 2003

The Senate Health and Human Services Committee approved two bills opposed by CMTA and authored by Senator Gloria Romero (D-Los Angeles). SBx1 5 and SB 108 both impose an additional 5-cent tax per drink from any wholesaler located within the state ...
California's Corporate Governance Campaign Continues
 March 28, 2003

Last year numerous measures were introduced in the legislature relating to the corporate governance of California companies. State Treasurer Phil Angelides (D) lead the charge to pressure companies that have moved their legal headquarters to ...
CMTA Testifies in Assembly Committee Regarding the State of Manufacturing
 March 14, 2003

On Tuesday, March 11th, the Assembly Committee on Jobs, Economic Development, and the Economy held an informational hearing, "The State of the California Economy: Meeting the Challenges Ahead." CMTA testified as to the importance and value of ...
Senate Revenue & Taxation Committee Holds Hearing on "Tax Expenditures"
 March 14, 2003

This week the Senate Revenue and Taxation Committee held an informational hearing to discuss tax incentives. The term "tax expenditure" was invented in the late 1960s by Professor Stanley Surrey, then Assistant Secretary of the U.S. Treasury, as a ...
Business Properties Targeted for Massive Tax Hikes
 Feb. 28, 2003

On Wednesday, February 27th, State Senator Martha Escutia (D-Whittier) held a press conference on the steps of the Capitol to draw attention to her Split-Roll property tax proposal. Under the guise of "restructuring our tax system", Escutia's SB 17 ...
LAO Analyzes MIC Elimination and Suspension of R&D Tax Credit
 Feb. 21, 2003

On Wednesday, February 19th, the non-partisan Legislative Analyst, Elizabeth Hill, released her annual analysis of the Governor's proposed 2003-2004 budget. In terms of revenue raising options, Hill suggested that the legislature consider the ...
State's Bond Rating Continues to Fall
 Feb. 14, 2003

With a variety of academics and economists calling for temporary tax increases and varying advocacy groups calling for spending reductions, California's two top finance officers, Governor Davis and State Treasurer Phil Angelides, went to New York to ...
Angelides Proposes Tax Increases on State's Businesses
 Feb. 14, 2003

State Treasurer Phil Angelides jumped into the budget fray this week and proposed increases in taxes on business as a way to minimize cuts in funding for education. In a letter to the Governor and legislative leaders, Angelides charged that the ...
CMTA's Tax and Budget Conference A Success
 Feb. 8, 2003

On Tuesday, February 4th, CMTA hosted a conference on tax policies, economic growth, and budget challenges. The one-day conference, "Getting California Working Again", consisted of four panels with key legislators, practitioners, and private sector ...
CMTA Testifies on Manufacturers Investment Credit
 Feb. 6, 2003

The California Manufacturers & Technology Association (CMTA) testified this week before the Assembly Revenue & Taxation Committee in support of an extension of the Manufacturers Investment Credit (MIC). In her testimony, CMTA Vice President for ...
CMTA to Testify on Manufacturers Investment Credit Day Before Association Holds Critical Tax Conference
 Feb. 2, 2003

Media Advisory Sacramento, CA -- The California Manufacturers & Technology Association (CMTA) will testify on the importance of the Manufacturers Investment Credit (MIC) in the Assembly Revenue and Taxation Committee on Monday, February 3, 2003. ...
Senate Committee Holds Hearing on Governor's Tax Increases
 Feb. 2, 2003

The Senate Revenue and Taxation Committee held an informational hearing on Wednesday, January 29th, on the Governor's proposed tax increases -- the first in a series of hearings on various tax issues, including the Manufacturers -- Investment ...
The MIC Matters
 Jan. 17, 2003

In his budget address, Governor Gray Davis declared that extending the manufacturer's investment credit will help ensure an economic recovery and stem the loss of high-wage manufacturing jobs, now 10% of the total industrial workforce in recent ...
More Manufacturing Jobs Lost
 Jan. 17, 2003

The Employment Development Department released California's official December unemployment rate today and, for the 24th consecutive month, the state's manufacturing job base declined. 2,100 manufacturing jobs were lost (seasonally adjusted) in ...
Underground Economy Costing State Billions
 Jan. 17, 2003

According to the Franchise Tax Board, the underground economy in California is costing the state $4 billion a year in lost tax revenue. This at a time when the state is struggling with nearly a $35 billion budget shortfall. It has also been ...
Ackerman Introduces Bill to Continue the MIC
 Jan. 12, 2003

(Leg Press Release) -- Last Thursday, January 9, 2003, Senator Dick Ackerman (R-Tustin) introduced Senate Bill 47. SB 47 will continue the Manufacturers' Investment Tax Credit (MIC) indefinitely. "The manufacturing investment tax credit provides ...
Governor Supports Manufacturer's Investment Credit
 Jan. 10, 2003

Governor Gray Davis used his annual state of the state address to indicate his strong support for ensuring that the manufacturer's investment credit (MIC) remains in law as legislators scramble to bridge a historic gap between revenues and ...
Governor Supports Manufacturer's Investment Credit
 Jan. 10, 2003

Governor Gray Davis used his annual state of the state address to indicate his strong support for ensuring that the manufacturer's investment credit (MIC) remains in law as legislators scramble to bridge a historic gap between revenues and ...
Dutra tasked with raising revenue
 Dec. 20, 2002

Assemblymember John Dutra (D-Fremont) has been assigned the “thankless job” of developing proposals for the right mix of painful state tax hikes to blunt the deficit-driven budget cuts that are in order. While other legislators will be assigned to ...
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