The California Constitution generally limits the maximum rate of ad valorem tax on real property to 1% of the full cash value of the property and defines "full cash value" for these purposes as the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment. Pursuant to constitutional authorization, existing property tax law excludes from the definition of "newly constructed" for these purposes the construction or addition of any active solar energy system, as defined, through the 2025–26 fiscal year, including the construction of an active solar energy system incorporated by the owner-builder in the initial construction of a new building that the owner-builder does not intend to occupy or use. This bill would extend, for lien dates commencing on or after January 1, 2027, and before January 1, 2031, the above-described exclusion for the addition of customer-sited, active solar energy systems with a system size of less than or equal to 10 kilowatts and for customer-sited, active solar energy systems that are sited on the property of a public entity customer. The bill would require that, for active solar energy systems sited on the property of a public entity customer, tax savings be utilized to maintain the affordability of, or to reduce the cost of, future lease agreements. The bill would limit the exclusion for active solar energy systems incorporated by the owner-builder to buildings where the initial construction permit for the new building is dated before January 1, 2027. The bill would make conforming changes. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program. Existing law requires bills authorizing a new tax expenditure, as defined, to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for bills authorizing a new tax expenditure. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. This bill would take effect immediately as a tax levy.
Existing law authorizes various local governmental entities, subject to certain limitations and approval requirements, to levy a transactions and use tax for general purposes, in accordance with the procedures and requirements set forth in the Transactions and Use Tax Law, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in the county not exceed 2%. This bill would authorize, until January 1, 2045, the Contra Costa Transportation Authority to impose a transactions and use tax for the support of countywide transportation programs at a rate of no more than 1% that would, in combination with other transactions and use taxes, exceed the above-described combined rate limit of 2%, if the ordinance proposing the tax is approved by the voters, subject to applicable voter approval requirements, as specified. The bill would provide that a transactions and use tax rate imposed pursuant to the bill will not be considered for purposes of that combined rate limit described above. This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Contra Costa.
Existing law provides for the establishment of the Santa Cruz Metropolitan Transit District, with specified powers and duties related to the operation of public transit services serving the County of Santa Cruz. Existing law, among other things, authorizes the board of directors of the district to impose transactions and use taxes in accordance with the Transactions and Use Tax Law by an ordinance approved by the electors voting on the measure at a special election called by the board of directors for that purpose. This bill would also authorize those special taxes to be imposed by a qualified voter initiative. The bill would require the special election for a tax measure proposed by the board of directors or a qualified voter initiative to be consolidated with a statewide general election by the board of supervisors of the County of Santa Cruz and would require the tax measure to be submitted to the voters in accordance with specified elections provisions. The bill would also require the county elections official for the County of Santa Cruz to serve as the elections official of the district for purposes of administering the ballot measure process and any election for purposes of specified provisions of law. To the extent that the bill would impose additional duties on a county elections official, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. This bill would declare that it is to take effect immediately as an urgency statute.
The Personal Income Tax Law allows various credits against the tax imposed by that law. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would allow credits against the tax imposed by the Personal Income Tax Law for taxable years beginning on or after January 1, 2027, and before January 1, 2032, to a qualified taxpayer for qualified costs relating to qualified home hardening, as defined, and for qualified costs relating to qualified vegetation management, as defined, in specified amounts, not to exceed an aggregate amount of $50,000,000 per taxable year. This bill would require a qualified taxpayer to reserve a credit for qualified costs relating to qualified home hardening or qualified vegetation management to be eligible for the above-described credits and provide all necessary information for this purpose, as specified. This bill also would include additional information required for any bill authorizing a new income tax credit and would require the Legislative Analyst's Office to prepare a written report regarding the credits, as provided. This bill would take effect immediately as a tax levy.
Existing law establishes the California Community Colleges, under the administration of the Board of Governors of the California Community Colleges, as one of the segments of public postsecondary education in this state. Existing law establishes community college districts throughout the state, and authorizes these districts to provide instruction at the community college campuses they operate and maintain. This bill would prohibit, commencing with the 2027–28 fiscal year, a community college district's annual unrestricted general fund balance, as specified, for a fiscal year from exceeding 50% of its unrestricted general fund expenditures for that year, unless the community college district meets specified conditions. The bill would prohibit a community college district from transferring unrestricted general funds to another fund if the receiving fund has an existing balance of 33% or more of the community college district's unrestricted general fund expenditures for that fiscal year or if the transfer would cause the receiving fund to have a balance of 33% or more of the community college district's unrestricted general fund expenditures for that fiscal year. For a community college district that violates the above-described prohibitions, the bill would require the community college district to distribute the amount of the annual unrestricted general fund balance that exceeds 50% to nonsupervisory and nonmanagement employees of the community college district, as provided. To the extent that the bill would impose new duties on community college districts, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state of, or on the storage, use, or other consumption in this state of, tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption for the sale of, or the storage, use, or consumption of, farm equipment and machinery, and the parts thereof, purchased for use by a qualified person to be used primarily in producing and harvesting agricultural products. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws. Existing law excludes the tax exemption described above from being incorporated into certain local taxes pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law. This bill would, until January 1, 2032, delete that provision. Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions. This bill would make an appropriation from the General Fund to the Controller to make the reimbursements to counties and cities. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific purposes that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
Existing law regulates the investment of public funds by local agencies, as defined. Existing law authorizes the legislative body of a local agency, as specified, that has money in a sinking fund or in its treasury not required for immediate needs to invest the money as it deems wise or expedient in certain securities and financial instruments. Among other things, existing law authorizes investment in commercial paper issued by entities meeting one of 2 sets of specified requirements and in United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by specified development banks if certain conditions are met. Existing law prohibits investment in securities that could result in zero-interest accrual unless issued by the United States government in the event, and for the duration, of a period of negative market interest rates. Existing law removes that exception on January 1, 2031. This bill would revise and recast the provisions regulating investment of public funds by local agencies, including, among other things, additionally authorizing investment in commercial paper issued by an entity organized as a federally or state-chartered bank or a federally or state-licensed branch of a foreign bank and in senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the Inter-American Investment Corporation. The bill would remove the January 1, 2031, sunset date for investments in United States-issued securities in a period of negative market interest rates, thereby extending that exception indefinitely. Existing law imposes various limits on local government investment in commercial paper. Specifically, existing law imposes a separate maximum percent investment limit for local agencies that are a county, city and county, the City of Los Angeles, or other local agency that pools investments with other local agencies that do not share the same governing body. Existing law sets those limits at 40% of total investments, with no more than 10% in commercial paper from any one issuer. For the remaining local agencies, and until January 1, 2031, existing law imposes a maximum of 25% for local agencies with less than $100,000,000 in total investment assets and at 40% for those agencies with $100,000,000 or more in investment assets. Beginning January 1, 2031, the limit is reduced to 25% for those local agencies with $100,000,000 or more in investment assets. This bill would revise and recast these provisions and would remove the January 1, 2031, reduction in the maximum investment for the above-described local agencies with $100,000,000 or more in investment assets. Existing law makes the treasurer of a local agency responsible for the safekeeping of money and authorizes them to enter into a contract with a depository, as specified. Existing law requires the depository and the depository agent to secure the deposits in eligible securities. Existing law defines eligible securities for this purpose to include, among other things, letters of credit issued by the Federal Home Loan Bank of San Francisco, as specified. This bill would make various nonsubstantive changes to those provisions and, for a county, city and county, or local agency that pools money in deposits or investments with other agencies, would additionally authorize an eligible bank headquartered outside of the state to submit letters of credit drawn on its regional federal home loan bank. This bill would make additional nonsubstantive changes, including, among other things, to update cross-references.
Existing law requires the Public Utilities Commission to establish the Rural and Urban Regional Broadband Consortia Grant Account in the California Advanced Services Fund and makes the moneys in the account available for grants to eligible consortia to facilitate the deployment of broadband services by assisting infrastructure applicants in the project development or grant application process. Existing law requires each consortium to conduct an annual audit of its expenditures for programs funded pursuant to those provisions and to submit to the commission an annual report that includes specified information. This bill would instead require moneys in the Rural and Urban Regional Broadband Consortia Account to be available for grants to eligible consortia primarily to facilitate the deployment of broadband services by assisting infrastructure applicants in the project development or grant application process. In facilitating the deployment of broadband services, the bill would authorize the consortia to undertake activities that promote broadband adoption within specified areas, including all infrastructure project areas that received California Advanced Services Fund grants on or after January 1, 2020, as specified, neighborhoods and communities identified by jurisdictions receiving local agency technical assistance grants, or areas where construction of infrastructure deployment and upgrade investments are made pursuant to public benefit agreements by parties to corporate consolidations approved by the commission. The bill would require the commission to allocate sufficient funds to the account to provide multi-year grants to eligible consortia to engage and regularly convene specified representatives and to implement an approved regional work plan consistent with a standardized scope of work determined by the commission, which would be required to include specified strategies and infrastructure-related activities, as provided. The bill would require the annual base funding grant per consortium to be no less than $200,000, plus an increased amount based on the number of unserved and underserved locations, unconnected households, and the number of low-income households in the region, as provided. The bill would delete the requirement for each consortium to conduct an annual audit and would revise the information required to be included in the annual report to the commission, as specified. The bill would authorize the commission to engage experienced nonprofit organizations through an open, competitive process to assist the commission and support the consortia, as provided. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the above provisions would be part of the act and a violation of a commission action implementing this bill's requirements would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law establishes the California College Promise, under the administration of the Chancellor of the California Community Colleges, to provide funding, upon appropriation by the Legislature, to each community college meeting prescribed requirements. Existing law authorizes a community college to use that funding to waive some or all of the fees for 2 academic years for first-time community college students and returning community college students, as defined, who are enrolled in 12 or more semester units or the equivalent, or less for students certified as "full time," as specified, and who complete and submit either a Free Application for Federal Student Aid or a California Dream Act application, except that a student who has previously earned a degree or certificate from a postsecondary educational institution is not eligible for this fee waiver. This bill would prohibit a certificate awarded to a student by a postsecondary educational institution as part of a course sequence leading to an associate degree from making the student ineligible for that fee waiver.
(1) Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law generally provides that the taxes are due and payable to the California Department of Tax and Fee Administration (CDTFA) quarterly on or before the last day of the month next succeeding each quarterly period and requires, for purposes of sales tax, a return to be filed by a seller that contains, among other information, the gross receipts of the seller during the preceding reporting period. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws. Existing law, with respect to specified vehicles sold at retail on and after January 1, 2021, by a licensed dealer, except a new motor vehicle dealer, requires the dealer to pay the applicable sales tax, or use tax pursuant to the Transactions and Use Tax Law, to the Department of Motor Vehicles (DMV) acting for and on behalf of CDTFA within 30 days from the date of the sale. Existing law authorizes the CDTFA to exempt a licensed dealer from the requirement to pay the applicable taxes to the DMV if specified requirements are met, and authorizes the CDTFA to revoke that exemption if it notifies the licensed dealer of the failure to satisfy those requirements, as provided. This bill would authorize the CDTFA to reinstate the above-described exemption where specified requirements are met, and would require the CDTFA to notify the licensed dealer that the exemption is reinstated, as provided. The bill would also make nonsubstantive changes to the exemption provisions. (2) Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act) , encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a qualified ABLE program established and maintained by a state, as specified. Existing law establishes the Qualified ABLE Program, administered by the California ABLE Act Board, in this state for purposes of implementing the federal ABLE Act. That law, among other things, authorizes the contributions to an ABLE account during the taxable year if specified requirements are met. The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. Those laws, for taxable years beginning on or after January 1, 2016, conform to the exclusions from gross income provided under federal income tax law provisions relating to the ABLE Act, as those exclusions read in specified federal law prior to the One Big Beautiful Bill Act. This bill would also conform, for taxable years beginning on or after January 1, 2026, state tax law to those changes relating to qualified ABLE programs made by the One Big Beautiful Bill Act. The bill would also make conforming changes relating to the requirements for making contributions to an ABLE account.
