CSTC works closely with a Legislative Consultant to keep an eye on important bills that would affect taxpayers and small business owners.

NEWS AND UPDATES IN BRIEF

  • The Legislature formally reconvened on January 4, beginning the first of a two-year session
  • Nearly one-third of legislators are new – providing ample tax education opportunities
  • A handful of bills were introduced to exclude from state taxes any student debt relief provided by federal law

READING THIS REPORT
All new bills must be introduced by February 17. Often, legislators have ideas about what they want, but those ideas are not enough for a comprehensive bill. So ‘placeholder’ or ‘spot’ bills are introduced prior to February 17, allowing the author to hold his or her spot (or place) while they determine the bill language. Placeholder bills have a general topic, which can change. Additionally, many tax-related bills would, if signed into law, take effect immediately rather than on January 1, 2024. And some require a 2/3, rather than a majority, vote to pass.


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BILLS OF INTEREST | TAX FOCUS

AB 14 (Davies) | Income tax: childcare savings and investment accounts. A placeholder bill with the intent to enact legislation establishing tax-preferred savings and investment accounts for childcare expenses. 
Status: Recently introduced

AB 17 (Alanis) | Personal Income Tax Law. A placeholder bill intending to reduce income tax rates for middle- and low-income taxpayers.
Status: Recently introduced

AB 26 (Mike Fong) | Personal Income Tax Law: exclusion: federal student loan debt relief plan. Excludes from a person’s gross income any amount of qualified student loan debt discharged under the federal student loan debt relief plan. This bill only become operatives upon the enactment of legislation that would conform to federal law.
Status: Recently introduced

AB 59 (Gallagher) |Taxation: renter’s credit. Changes the income eligibility for the Renters’ Tax Credit to allow more taxpayers to qualify.
Status: Recently introduced

AB 84 (Ward) | Property tax: welfare exemption: affordable housing. Modifies welfare exemption requirements for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities.
Status: Recently introduced

AB 259 (Lee) | Wealth Tax: False Claims Act. Establishes the Wealth Tax Advisory Council; imposes an annual tax at a rate of 1.5% of a resident’s “worldwide net worth” in excess of $1,000,000,000, or in excess of $500,000,000 in the case of a married taxpayer filing separately; allows the taxation of former residents who relocated to other states; any related provisions. A similar bill failed.
Status: Recently introduced

Related media: California Assemblymember Again Tries to Tax the Rich; California lawmakers to consider new wealth tax — and it could follow those moving to Texas; Another effort to tax ‘extreme wealth’ in California is launched in Legislature.

ACA 3 (Lee) | Wealth tax: appropriation limits. A proposed state constitutional amendment allowing for the tax contemplated in AB 259. Requires a 2/3 vote, as does AB 259.
Status: Recently introduced

HR 8 (Pietrie-Norris) | Relative to Enrolled Agents’ Day. An Assembly Resolution recognizing February 15, 2023, as Enrolled Agents' Day to commemorate the contributions of professional enrolled agents for over 50 years to California taxpayers.
Status: Recently introduced

SB 1 (Glazer) | Personal Income Tax Law: exclusions: student loan forgiveness. Exclude from gross income any student loan amount waived, canceled, or otherwise forgiven by the United States Department of Education pursuant to a specified federal student debt relief plan.
Status: Referred to the Government and Finance Committee

Related media: Bill Exempts Student Loan Forgiveness From Income Taxes

SB 25 (Skinner) | Personal Income Tax Law: exclusion: student loan debt. Excludes from state income taxes any relief received from federal student loan debt relief programs since Jan. 1, 2021.
Status: Referred to the Government and Finance Committee

SB 49 (Becker) | A placeholder bill related to providing tax incentives for the construction of solar canopies over large parking lots.
Status: Recently introduced

Related media: Turning Parking Lots into Clean Energy Power Plants 

SB 53 (Portantino) | Income taxes: tax credits: motion picture credit. A placeholder bill related to the film industry.
Status: Recently introduced

SB 82 (Seyarto) | Property taxation: disabled veterans’ exemption: eligibility letters. Seeks to make it easier to verify a service-connected disability for property tax purposes by allowing digital letters.
Status: Recently introduced

SB 93 (Nguyen) | Taxation. A placeholder bill related to taxes.
Status: Recently introduced

SB 96 (Portantino) | Sales and Use Tax Law: live events: historic event venues. A placeholder bill that would expand the state sales and use tax exemption to transactions during live events at California historic event venues.
Status: Recently introduced

SB 230 (Seyarto) | Income tax: deduction: employers: health savings accounts. Would allow a deduction for a taxpayer with 50 or fewer employees that makes an employer contribution to a health savings account.
Status: Recently introduced 

BILLS OF INTEREST | SMALL BUSINESS FOCUS

AB 258 (Reyes) | Economic development: small businesses. A placeholder bill intended to create and promote a portal where small businesses can easily search for grant, procurement, and other financial opportunities to grow their businesses.
Status: Recently introduced