California’s largest income and sales tax breaks would get more scrutiny under a bill approved in the Senate Monday.
S.B. 956 by Sen. Hannah-Beth Jackson (D) would establish a California Tax Expenditure Review Board to examine the goals, beneficiaries, and costs of nine tax breaks that cost the state $8.2 billion a year and have no metrics to measure their effectiveness and no expiration date.
The bill moves to the Assembly after passing the Senate 25-13 and must pass the Assembly by Aug. 31 to reach Gov. Gavin Newsom’s (D) desk. He hasn’t taken a position on this year’s version of the bill.
Sales and use tax exemptions to be examined are:
- Animal life, feed, seeds, plants, fertilizer, drugs and medicines;
- Farm equipment machinery;
- Jet fuel for international flights; and
- Custom computer programs.
For more information: Bloomberg TaxBloomberg tax
by laura mahoney
June 22, 2020