CA Tax Policy
Navigate California's tax laws and future reforms.
California Tax Reform
California's Tax Issues and Solutions
- 21st Century Taxation Blog
- Apple Settlement Shows Why California Needs a Sales Tax Overhaul, Bloomberg Tax Insights & Commentary, 11/14/24
- State Tax Law Opportunities to Address Inequality, Joint Venture Silicon Valley Blog, 11/6/24
- 3 Questions to Ask When Congress Wants to Change Your Taxes, Barron's, 3/8/21
- Suggestions for Pandemic State Tax Policy Endurance, Tax Notes State, 12/17/20
- Suggestions for Improved Transparency and Accountability of California Taxes Via Improved Tax and Budget Literacy, January 2020, published in California Tax Lawyer
- Prospects for California Tax Reform, Bloomberg BNA's Tax Management Weekly State Tax Report, 3/22/13
- California's Proposition 26 and IRC Conformity, BNA State Tax Blog Guest Post, 1/22/13
- Tax Reform Possibilities of California's New Super Majority, BNA State Tax Blog guest Post, 12/4/12
- Testimony delivered to CA Committee on Revenue & Taxation and Committee on Accountability and Administrative Review, 2/22/12 hearing on tax expenditures
- Testimonydelivered to CA Assembly Revenue & Taxation Committee hearing on incentives for job creation and innovation, 12/5/11 held at San Jose State
- Testimony submitted to the CA Assembly Revenue & Taxation Committee for the 2/28/11 hearing on the California Use Tax Gap [see updated paper of 2013 here]
- Testimony before CA Assembly Revenue & Taxation Committee on 1/13/2010 for informational hearing on alternatives to the COTCE recommendations (pdf).
- California Tax Problems - short summary (pdf).
- Commission on the 21st Century Economy:
- How to Evaluate the COTCE Proposals, California Progress Report, 9/24/09
- Sane Taxation? , The Press-Enterprise, 10/11/09
- Information on business net receipts tax (BNRT) proposal
- Broadening the CA sales tax (See Sales and Use Tax Issues below)
1. Several Weaknesses Exist: An Introduction to Some of the Problems
See web page or pdf file.
a. Most of these weaknesses can be solved by fixing the tax base - they cannot be solved with a rate increase. A rate increase would make most of these problems worse.
- California Tax Problems - a short summary (web) (pdf)
- Tax Reform Possibilities of California's New Super Majority, BNA State Tax Blog, 12/4/12
- Revamp tax laws to support California spending, San Jose Mercury News 8/20/07
(examples of ways to improve California revenues as one way to address spending needs) - California Tax Changes: Math versus Strategy, California Progress Report, 12/5/08
- Testimony before CA Assembly Revenue & Taxation Committee, 1/13/10
b. Analysis of California's Tax System Using Criteria Established for the 21st Century Economy Commission (pdf) [coming soon]
2. Sales and Use Tax: Issues
a. Tax Base is Too Narrow (web) (pdf) (podcast)
- California Use Tax Exemption for Foreign Purchases Should Be Repealed, State Tax Notes, 6/9/1
- Lower the sales tax - but reform what gets taxed, San Jose Mercury News, 7/24/11
- Testimony before the California 21st Century Economy Commission, at UCLA, 2/12/09
- Taxing Some Services Could Help if It's Fair and Simple, San Jose Mercury News, 6/29/08
- Taxing Digital Products - Let's Also Use the Technology to Modernize Collection, blog 6/23/08
- Testimony before the California Assembly Revenue & Taxation Committee, 4/7/08
- Obstacles to Taxing Services — Are They Insurmountable?, AICPA Corporate Tax Insider, 2/28/08
- California's 20th Century Sales Tax, Los Angeles Times 7/18/07
- Download or pick up: Why is one tax-free?,  San Francisco Chronicle 7/11/07b.
b. Challenges in Collecting the Use Tax & Possible Solutions (web) (pdf)
- Paper presented to legislative and BOE staff, February 2013. Note - Suggestion B of this paper was enacted by AB 1593 (Chapter 563, 10/7/17), effective starting with 2017 Forms 540.
[Similar to testimony (by phone) before the State of Vermont Sales and Use Tax Study Committee, 10/15/12, on State Solutions to Collecting from Remote Sellers.] - Testimony submitted to CA Assembly Revenue & Taxation Committee for 2/28/11 hearing on the California Use Tax Gap
- Use Tax Reality, California Progress Report, 3/23/09
- The Practitioner’s Role in Use Tax Compliance, AICPA Tax Insider, 8/9/07
- California's Use Tax Collection Challenges and Possible Remedies, California Tax Lawyer, Fall 2007
c. Pyramiding Nature of the Tax (web) (pdf)
d. Nexus Uncertainty (web) (pdf)
- Nexus Confusion: Sales and Use Tax, AICPA Corporate Tax Insider, 9/27/07
3. Personal Income Tax Weaknesses
a. The tax is too volatile  (web) (pdf)
- 'Spending problem?' - some of it's hidden in our tax laws, San Francisco Chronicle, 2/10/08
- Know New Taxes (a look at environmental taxes), San Francisco Chronicle, 9/19/07 (one possible partial solution)
b. Complexity due to lack of conformity with federal rules, various special rules and not using simplification techniques  (web) (pdf)
- Too many costly and unnecessary tax breaks (web) (pdf) Testimony delivered to CA Committee on Revenue & Taxation and Committee on Accountability and Administrative Review, 2/23/12 hearing on tax expenditures
- 'Spending problem?' - some of it's hidden in our tax laws, San Francisco Chronicle, 2/10/08
4. Corporate Franchise Tax Issues​
- Conformity with the federal income tax is low (web) (pdf)
- California's tax loopholes that aren't, San Diego Union Tribune, 7/11/08
- Looking for a Better State Business Tax, AICPA Corporate Taxation Insider, 10/29/09
5. Property Taxes Reform Considerations
- Splitting the Roll Real Estate Taxation, 3rd quarter 2004
6. Alternative Taxes
- Know New Taxes (a look at environmental taxes), San Francisco Chronicle, 9/19/07
7. Telecommunications Taxes (2003 policy brief by Prieger, Sexton and Nellen)
- Taxes have not kept up with changes in technology
- State and local simplification is possible through coordination
8. Strategy and Accountability Needed
- Suggestions for Improved Transparency and Accountability of California Taxes Via Improved Tax and Budget Literacy, January 2020, published in California Tax Lawyer
9. Chokeholds on the Tax System (budget restrictions, earmarking, etc.)
- Don't link school spending to oil companies' profits, San Jose Mercury News, 3/21/08