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
- A Tax Commission for California? How It Can Be Made to Work, California Progress Report, 7/27/08
- California Tax Changes: Math versus Strategy, California Progress Report, 12/5/08
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