Existing law allows an individual taxpayer to contribute amounts in excess of their personal income tax liability for the support of specified funds and accounts, including, among others, to the California Cancer Research Voluntary Tax Contribution Fund. This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2034, would allow an individual to designate on their tax return that a specified amount in excess of their tax liability be transferred to the continuously appropriated California Spinal Cord Injury Research Voluntary Tax Contribution Fund, which would be created by this bill. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund. By establishing a new continuously appropriated fund, this bill would make an appropriation. The bill would repeal its provisions on December 1, 2034, except as specified.
Existing property tax law, pursuant to constitutional authorization, provides for a "welfare exemption" for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. That law provides a partial welfare exemption in the case of residential rental property used for lower income households, as specified, calculated as that percentage of the value of the property that is equal to the percentage that the number of units serving lower income households represents of the total number of residential units. This bill would, for lien dates commencing on or after January 1, 2027, and before January 1, 2030, provide a partial welfare exemption in the case of certain residential rental property used for low- and moderate-income households. The partial exemption would be equal to the value of the units serving low- and moderate-income households, as defined. The bill would require an owner to make specified certifications relating to the use of the property. The bill would apply the exemption described above for a period of 15 years from the date of the initial filing of the exemption, as specified. By expanding the duties of local tax officials, and by expanding the crime of perjury, the bill would impose a state-mandated local program. This bill would declare that the above provisions are severable. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would state that it is the intent of the Legislature to apply those requirements to the above-described exemption and would set forth specified information relating to those requirements. This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Alameda and Sacramento and the City and County of San Francisco. This bill would incorporate additional changes to Section 214 of the Revenue and Taxation Code proposed by AB 2089 to be operative only if this bill and AB 2089 are enacted and this bill is enacted last. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. This bill would take effect immediately as a tax levy.
Existing law prohibits a local agency from entering into any form of agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law to any person for any purpose when the agreement results in a reduction in the amount of revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in the absence of the agreement, would be received by another local agency and the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency. Existing law also requires a local agency entering into an agreement that results in a reduction of the amount of revenue under the Bradley-Burns Uniform Local Sales and Use Tax Law that, in the absence of the agreement, would be received by another local agency to take certain actions with respect to that agreement, including posting the proposed agreement on its internet website for at least 30 days prior to ratification or approval of that agreement by its governing body. This bill would prohibit a person from paying compensation to a consultant with respect to a specific tax sharing agreement, as defined, that exceeds the lower of 5% of the total tax revenues shared pursuant to the tax sharing agreement and $250,000. The bill would define a tax sharing agreement for this purpose to mean any agreement that would result, directly or indirectly, in the payment, transfer, diversion, or rebate of any tax revenue resulting from the imposition of a sales and use tax under the Bradley-Burns Uniform Local Sales and Use Tax Law to any person for any purpose. The bill would exclude from these provisions agreements between a local agency and a member of the agency's staff directly employed by the jurisdiction or technical consultants providing noncompensated advisory services. The bill would apply these provisions only to agreements entered into on and after January 1, 2027. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.
The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define "gross income" as income from whatever source derived, except as specifically excluded, and provide various exclusions from gross income. This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, provide an exclusion from gross income for any qualified taxpayer, as defined, for amounts received for costs and losses associated with the 2026 Garden Grove chemical leak, as provided. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
Under existing tax law, once a tax liability becomes due and payable, as defined, a statutory lien arises for that amount upon all real and personal property belonging to that taxpayer. Existing law establishes a statute of limitations on collections of those liabilities to limit the collection period to 20 years beginning from the date that the latest tax liability for a taxable year or the date any other liability that is not associated with a taxable year becomes due and payable, and thereafter extinguishes that liability. Existing law defines "tax liability" as a liability imposed under the Personal Income Tax Law, the Corporation Tax Law, or the laws related to the administration of franchise and income tax laws, including any additions to tax, interest, penalties, fees, and any other amounts relating to the imposed liability. This bill would redefine "tax liability" to exclude interest, penalties, costs, or fees, except a specified fee on limited liability companies, relating to the assessment of tax, any other amounts relating to the imposed liability, and any additions to tax. The bill would require the collection period for interest, penalties, costs, or fees that may accrue with a particular tax liability to lapse at the same time as the related tax liability.
