BILL ANALYSIS
AB 2564
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2564 (Swanson)
As Amended June 15, 2010
Majority vote
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|ASSEMBLY: |71-0 |(April 29, |SENATE: |28-1 |(August 9, |
| | |2010) | | |2010) |
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Original Committee Reference: BUDGET
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.
The Senate amendments delete the requirement that 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;
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;
AB 2564
Page 2
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; and,
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.
1)Defines "tax expenditure" as a credit, deduction, exclusion,
exemption, or any other tax benefit as provided for by the
state.
AS PASSED BY THE ASSEMBLY , this bill was similar to the version
passed by the Senate except it included the requirement that the
report be made available to members of the Legislature upon
request.
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. The June 15 amendments simply
removed the provision to provide the report to individual
members of the Legislature.
Analysis Prepared by : Mark Ibele / BUDGET / (916) 319-2099
FN: 0005380