State government: fiscal affairs.

Existing law requires the Department of Finance to report annually to the Legislature with regard to tax expenditures, as defined. Existing law requires the report to include specified information. This bill would require the report to include, if available, anticipated revenue loss, as specified. At the time of the submission of the Governor's Budget to the Legislature, existing law requires the Director of Finance to submit to the Legislature total recommended state General Fund expenditures and estimated state General Fund revenues, as specified. This bill would require the report to include, for each tax expenditure exceeding $5,000,000 in annual cost, an estimate of the loss of revenue due to the tax expenditure in the upcoming fiscal year. The bill would also require the State Board of Equalization and the Franchise Tax Board to submit to the Department of Finance and the Legislature, on or before December 1 of each calendar year, a report on the fiscal and tax effect of tax expenditures from sales and use tax, personal income tax, and corporation tax that have an annual revenue loss of at least $5,000,000, as specified.