The California Constitution generally limits the maximum rate of ad valorem tax on real property to 1% of the full cash value of the property and defines "full cash value" for these purposes as the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. Pursuant to constitutional authorization, existing property tax law excludes from the definition of "newly constructed" for these purposes the construction or addition of any active solar energy system, as defined, through the 2025–26 fiscal year. Under existing property tax law, this exclusion remains in effect only until there is a subsequent change in ownership, but an active solar energy system that qualifies for the exclusion before January 1, 2027, continues to receive the exclusion until there is a subsequent change in ownership. Existing law repeals these exclusion provisions on January 1, 2027. This bill would make a technical change to the existing active solar energy system exclusion by instead making the repeal date of January 1, 2027, the date the exclusion becomes inoperative. This bill would incorporate additional changes to Section 73 of the Revenue and Taxation Code proposed by AB 1516 to be operative only if this bill and AB 1516 are enacted and this bill is enacted last.
The Cigarette and Tobacco Products Licensing Act of 2003 requires the California Department of Tax and Fee Administration to administer a statewide program to license manufacturers, distributers, and retailers of cigarettes and tobacco products. The act requires a retailer to have in place and maintain a license to engage in the sale of cigarettes or tobacco products. The act requires a $265 fee to be submitted with the application for the license. Existing law requires every retailer to file an application for renewal of the license accompanied by a $265 fee per retail location. This bill would make conforming changes to the provisions describing the application process for the license described above and recast that license as a retailer license. The bill would require each application for a retailer license filed on or after July 1, 2026, to be accompanied by a fee of $450 per retail location. The bill would increase the fee for renewal of a retailer license to $450 for renewal applications filed on or after July 1, 2026. The bill would authorize the department to adjust application and renewal fees applicable after July 1, 2026, to an amount not exceeding $600 per retail location to maintain the Cigarette and Tobacco Products Compliance Fund at a level that is no more than necessary to cover the reasonable costs of the department to administer the act. The act requires a retailer who sells tobacco products that are exempt from taxation under the Cigarette and Tobacco Products Tax Law to pay a fee of $265 for the issuance or renewal of a license. This bill would recast that license as a retailer license and make other conforming changes. The bill would require each application for a retailer license filed on or after July 1, 2026, to be accompanied by a fee of $450 per retail location. The bill would increase the fee for renewal of a retailer license to $450 for renewal applications filed on or after July 1, 2026. The bill would authorize the department to adjust application and renewal fees applicable after July 1, 2026, to an amount not exceeding $600 per retail location to maintain the Cigarette and Tobacco Products Compliance Fund at a level that is no more than necessary to cover the reasonable costs of the department to administer the act. This bill would require the Legislative Analyst, on or before December 1, 2027, and again on or before December 1, 2029, to prepare and submit reports to the Legislature on the tobacco retailer enforcement landscape, including enforcement of California's flavor, youth access, taxation, and licensing laws. The bill would require specified state agencies to cooperate with the Legislative Analyst in the preparation and production of the report. The bill would repeal those reporting requirements on January 1, 2034. Chapter 849 of the Statutes of 2024 (AB 3218) revised the Cigarette and Tobacco Products Licensing Act of 2003 by, among other things, authorizing the department or a law enforcement agency to seize illegal flavored tobacco products or tobacco product flavor enhancers that a wholesaler or retailer possesses, stores, owns, or sold, as specified. Existing law further requires the department to impose on the wholesaler or retailer a specified civil penalty per individual package of flavored tobacco product or tobacco product flavor enhancer. Existing law defines "package" for purposes of the penalty provision applicable to retailers. This bill would define "flavored tobacco product" and "tobacco product flavor enhancer" for these purposes and would add the same definition of "package" for purposes of the penalty provision applicable to wholesalers. Chapter 462 of the Statutes of 2024 (SB 1230) , among other things, added a provision to the Cigarette and Tobacco Products Licensing Act of 2003 similar to the above-described provision relating to the seizure of a retailer's products added by AB 3218. Specifically, SB 1230 authorizes the department to seize illegal flavored tobacco products or tobacco product flavor enhancers if the department discovers that a retailer sells, offers for sale, or possesses with the intent to sell or offer for sale, those products, and deems the seized products as forfeited. This bill would repeal the above-described provision added by SB 1230. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.
Existing sales and use tax laws, among other things, impose a tax on retailers measured by the gross receipts from their sales of tangible personal property sold at retail in this state. The Sales and Use Tax Law makes certain sellers of tangible personal property consumers, and not retailers, of the tangible personal property they sell, including, until January 1, 2026, an all-volunteer fire department, as defined, if the profits are used solely and exclusively in furtherance of the purposes of the all-volunteer fire department, as prescribed. This bill would extend the sunset described above until January 1, 2031. 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. The bill also would include additional information required for any bill authorizing a new tax expenditure. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws. Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions. This bill would provide that, notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made and the state shall not reimburse any local agencies for sales and use tax revenues lost by them pursuant to this bill. This bill would take effect immediately as a tax levy.
Existing law requires the Secretary for Environmental Protection to adopt regulations and implement a unified hazardous waste and hazardous materials management regulatory program. A city or local agency that meets specified requirements is authorized to apply to the secretary to implement the unified program, and every county is required to apply to the secretary to be certified to implement the unified program as a Certified Unified Program Agency (CUPA) . Existing law establishes the Rural CUPA Reimbursement Account in the General Fund, and requires the Secretary for Environmental Protection to allocate funds to counties with populations of less than 150,000 persons for which a CUPA has not been certified on or before January 1, 2000, and in which the unified program has been implemented by a CUPA designated by the secretary, as specified, in amounts not to exceed designated percentages of budgeted costs. This bill, contingent on an appropriation for its purposes, would make every county with a population of less than 150,000 persons eligible for these funds without regard to the date of certification or the qualification regarding CUPA implementation of the unified program.
Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The California Alternative Energy and Advanced Transportation Financing Authority Act establishes the California Alternative Energy and Advanced Transportation Financing Authority. The act authorizes, until January 1, 2026, the authority to provide financial assistance to a participating party by authorizing exclusions from sales and use tax for certain projects, including those that promote California-based manufacturing, California-based jobs, advanced manufacturing, the reduction of greenhouse gases, or a reduction in air and water pollution or energy consumption. The Sales and Use Tax Law, for the purposes of the taxes imposed pursuant to that law, until January 1, 2026, excludes the lease or transfer of title of tangible personal property constituting one of those projects to any contractor for use in the performance of a construction contract for a participating party that will use that property as an integral part of the approved project. This bill would extend to January 1, 2028, the authorization to provide financial assistance in the form of a sales and use tax exclusion for projects approved by the authority. The bill would add electrical generation facilities using nuclear fusion technology to the types of projects qualifying for this sales and use tax exclusion. The bill would, on and after January 1, 2026, for an applicant that, together with its parent corporation and subsidiaries, employs 500 or more employees, prohibit the authority from approving a project unless the applicant certifies that the applicant and its subcontractors will comply with certain labor requirements. The bill would make other conforming changes. This bill would take effect immediately as a tax levy.
The Use Fuel Tax Law imposes a state excise tax at specified rates, generally $0.18 per gallon, on the use of fuel, as defined, and establishes various exemptions from those taxes, including an exemption for any transit district, transit authority, or city owning and operating a local transit system, as provided. This bill would additionally apply this exemption to a county that owns and operates a local transit system, as provided. The California Constitution provides for the establishment of the State Board of Equalization, which, before July 1, 2017, had primary responsibility for most of the state's duties, powers, and responsibilities regarding the administration of taxes and fees. Existing law, on July 1, 2017, transferred to the California Department of Tax and Fee Administration various duties, powers, and responsibilities of the State Board of Equalization, including administration of the Use Fuel Tax Law, as specified. This bill would change references in the Use Fuel Tax Law provisions described above from the "State Board of Equalization" to the "California Department of Tax and Fee Administration" to reflect the transfer of the board's duties, powers, and responsibilities to the department. The Diesel Fuel Tax Law imposes taxes at a specified rate with respect to the distribution or delivery of each gallon of diesel fuel, and establishes various exemptions from those taxes, including an exemption for an exempt bus operation that consists of, among other things, a transit district, transit authority, or city owning and operating a local transit system, as provided. This bill would additionally apply this exemption to a county that owns and operates a local transit system, as provided. This bill would take effect immediately as a tax levy, but its operative date would depend on its effective date.
Existing law requires the Department of General Services to ensure that all claims that have been approved by the department, and for which there exists no legally available appropriation, are submitted for legislative approval at least once each calendar year. This bill would appropriate $672 to the Department of General Services, as specified, for the payment of claims accepted by the Government Claims Program. This bill would declare that it is to take effect immediately as an urgency statute.
Existing law, the Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Existing federal law authorizes an applicable entity, as defined, to receive a refund for specified environmental credits against the taxes imposed under federal law and excludes a refund payment made pursuant to that law from gross income. Existing federal law also authorizes an eligible taxpayer, as defined, to transfer the value of that refundable credit and exempts from gross income payment received by the transferor as consideration for the transfer. Existing federal law prohibits the transferee from deducting the amount paid as consideration for the transfer. This bill, in conformity with federal law, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would exclude from gross income a refund payment made for the specified federal environmental credits described above and any payment received by a transferor as consideration for a transfer, as provided. The bill would also prohibit a transferee from deducting the amount paid as consideration for the transfer, in conformity with federal law. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives 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.
Existing law, until January 1, 2028, authorizes the establishment of a Green Empowerment Zone for the Northern Waterfront area of the County of Contra Costa for the purpose of building upon the comparative advantage provided by the regional concentration of highly skilled energy industry workers by prioritizing access to tax incentives, grants, and loan programs, among other incentives. Existing law authorizes the Green Empowerment Zone to be composed of 9 specified cities and the County of Contra Costa, upon adoption of a resolution by the city or county, and provides for the Green Empowerment Zone to be governed by a board of directors comprised of representatives from 7 stakeholder groups, as specified. This bill would extend the authorization for the Green Empowerment Zone to January 1, 2040, and would authorize the expansion of the Green Empowerment Zone to include 4 additional cities, including the Cities of El Cerrito, Pinole, Richmond, and San Pablo, upon adoption of a resolution by each city. The bill would make changes to the stakeholder groups who serve on the board of directors, including increasing the number of stakeholder groups to 8 by adding a category for 7 directors who live or work in the Green Empowerment Zone and who represent environmental or environmental justice organizations or interests.The bill would also provide a process for a legislative body of a city or county included within the Green Empowerment Zone to remove the land within its jurisdiction from the empowerment zone. Existing law requires a board chair and 2 deputy chairs to be selected by majority vote of the board of directors to serve 2-year terms. Existing law authorizes an individual to serve as chair or deputy chair more than once, but prohibits an individual from serving consecutive terms. This bill, instead, would authorize an individual selected to serve a 2-year term to be re-selected by a majority vote of the board of directors for up to three additional terms. Existing law requires the board to appoint a steering committee, and required the steering committee, on or before January 1, 2023, to develop metrics to be reported to the Legislature and state departments and agencies to gauge the progress of the Green Empowerment Zone, as specified. Existing law requires the Green Empowerment Zone to annually post information on those metrics on its internet website, as specified. This bill would change the name of the steering committee to the executive committee and would prescribe the membership of the executive committee. The bill would eliminate the deadline for the executive committee to develop and report the metrics described above, but would require the Green Empowerment Zone, commencing July 1, 2026, and annually thereafter, to post information on those metrics on its internet website, as specified. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Contra Costa. This bill would declare that it is to take effect immediately as an urgency statute.
Existing law, the California Child Day Care Facilities Act, provides for the licensure and regulation of daycare centers and family daycare homes by the State Department of Social Services. Under existing law, the use of a home as a small or large family daycare home is considered a residential use of property and a use by right for the purposes of all local ordinances, including zoning ordinances, and a local jurisdiction is prohibited from imposing a business license, fee, or tax for the privilege of operating a small or large family daycare home. Existing law also exempts small and large family daycare homes from the provisions of the California Environmental Quality Act. This bill would similarly require a daycare center, as defined, when colocated with multifamily housing, to be considered a residential use of property and a use by right, as defined. The bill would similarly prohibit a local jurisdiction from imposing a charge, tax, or fee for a business license, equivalent instrument, or permit for the privilege of operating a daycare center that is colocated with multifamily housing. 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.
