BILL ANALYSIS
AB 2564
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ASSEMBLY THIRD READING
AB 2564 (Swanson)
As Amended April 20, 2010
Majority vote
BUDGET 20-0
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|Ayes:|Blumenfield, Adams, | | |
| |Beall, | | |
| |Bill Berryhill, Brownley, | | |
| |Buchanan, Caballero, | | |
| |Carter, Cook, Evans, | | |
| |Feuer, Fuller, Harkey, | | |
| |Huffman, Jeffries, Jones, | | |
| |Nestande, Ruskin, Silva, | | |
| |Swanson | | |
| | | | |
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SUMMARY : Changes the due date of the existing report from the
Department of Finance regarding state tax expenditures from
September 15th to February 1st each year. Specifically, this
bill :
1)Changes the date of the existing tax expenditure report from
the Department of Finance from September 15th to February 1st.
2)Requires the report be made available to Members of the
Legislature upon request.
EXISTING LAW :
1)Requires the Department of Finance to report to the
Legislature annually, no later than September 15th, on the
following:
a) A comprehensive list of tax expenditures exceeding $5
million in annual cost;
b) The statutory authority for each credit, deduction,
exclusion, exemption, or any other tax benefit;
c) A description of the legislative intent for each tax
expenditure, when available;
AB 2564
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d) The sunset date for each tax expenditure, if applicable;
e) A brief description of the beneficiaries of the tax
expenditure;
f) An estimate or range of estimates for the state and
local revenue loss for the current fiscal year and the two
subsequent fiscal years. As relating to sales and use tax
expenditures, the estimate must include partial year
exemptions and all other tax expenditures when obtained by
the Board of Equalization;
g) Relating to personal income tax expenditures, the number
of taxpayers affected and returns filed for the most recent
tax year for which full year data is available;
h) Relating to corporation tax and sales tax expenditures,
the number of returns filed or business entities affected
for the most recent tax year for which full year data is
available;
i) A listing of any comparable federal tax benefits;
j) A description of any tax expenditure evaluation or
compilation of information completed by any state agency
since the last report made pursuant to this section; and,
aa) Defines "tax expenditure" as a credit, deduction,
exclusion, exemption, or any other tax benefit as provided
for by the state.
FISCAL EFFECT : Minor absorbable costs to provide the report
upon request.
COMMENTS : The report is currently required to be provided no
later than September 15th of each year. Requiring the report to
be submitted by February 1st of each year will provide valuable
information during Budget discussions, allowing discussions
regarding tax expenditures to be spurred when the opportunity is
ideal for Budget adjustments.
Analysis Prepared by : Adam Dondro / BUDGET / (916) 319-2099
AB 2564
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FN: 0003950