California – Lawmakers Propose Major Taxes And Fees

California Tax  Foundation
Tax Watch Report
Updated Through June 2, 2017

“California lawmakers have proposed more taxes and fees in the first six months of the 2017-18 legislative session than in all of 2015 or 2016. If each proposal became law, the tax burden in California would increase by more than $370 billion per year. To put this in context, all existing taxes and fees currently bring in $179.47 billion.”

“This comes at a time when state revenue continues to grow, and California is nearing its taxing capacity under the Gann Spending Limit. Under the limit, if proceeds of taxes exceed the revenue limit, funds must be divided 50-50 between education and taxpayers (by a reduction in tax rates – the last time California reached the limit, rebates were provided directly to taxpayers, but this refund process is not officially recognized in law). As noted in a March 2 Legislative Analyst’s Office report on the state budget, “If revenues increase in the May Revision or the Legislature approves additional tax levies, the state could find itself on the brink of exceeding the state appropriations limit.” Since the start of the legislative session in December, lawmakers have introduced 2,578 bills and constitutional amendments. This report identifies 90 proposals that increase taxes, fees, assessments or other charges.”

The following are a few of the proposed bills relating to sales and use tax:

  • Groceries, Snacks and Candy Tax ACA 2  AB 274
  • Soda Tax  AB 1003
  • Sales and Use Tax Increase ACA 11
  • San Diego Sales Tax Increase  AB 805
  • Riverside Sales Tax Increase  AB 1189
  • Alameda County Sales Tax Increase  SB 703
  • Tax on Certain Pain Medications  AB 1512
  • San Mateo Sales Tax Increase  AB 1613
  • Alcohol Tax Increase  AB 479
  • Sales Tax on Services  SB 640