Higher Taxes And Fees On The Docket

Monday, April 15, 2013

The voters approved Proposition 30 in November believing that it would be the catalyst to balance the books and eliminate the need for more of the taxpayers’ money. However, many in the Legislature perceive Prop. 30’s passage as a green light to increase taxes and fees even more. Here is a comprehensive list of Senate and Assembly bills that either increase taxes or lower vote thresholds as of April 9, 2013. Please note that this is a living, breathing list. The number of bills could increase and/or decrease as we progress through the legislative session.

Senate Bills

SB 241 (Evans)
Imposes a 9.9% oil severance tax on the gross value of each barrel of oil severed in California.

SB 323 (Lara)
Eliminates a non-profit organization’s (such as Boy Scouts) tax exempt status for groups that discriminates on the basis of gender identity, race, sexual orientation, nationality, religion, or religious affiliation.

SB 391 (DeSaulnier)
Imposes a new $75 tax on every real estate instrument, paper, or notice requirement. Funds raised would go to support affordable housing programs.

SB 622 (Monning)
Imposes a one-cent per fluid ounce tax on sweetened beverages to fund childhood obesity prevention activities and programs.

SB 782 (DeSaulnier)
Requires sexually oriented businesses where alcohol is served to charge customers a $10 per visit fee to fund programs associated with the treatment or prevention of sexual assault.

SCA 3 (Leno)
Reduces the local vote requirement to pass a special tax from two-thirds to 55% to fund schools districts, community colleges districts, and county offices of education.

SCA 4 (Liu) and SCA 8 (Corbett)
Reduces the local vote requirement to pass a special tax from two-thirds to 55% to fund local transportation projects.

SCA 7 (Wolk)
Reduces the local vote requirement for the imposition, extension or increase of a special tax by a city, county, city and county, or special district two-thirds to 55% to fund public libraries.

SCA 9 (Corbett)
Reduces the local vote requirement for the imposition, extension or increase of a special tax from two-thirds to 55% to fund local community and economic development public projects by local governments.

SCA 11 (Hancock)
Reduces the local voterequirement from two-thirds to 55% to impose, extend, or increase a special tax or parcel tax by a city, county, or special district for general local government purposes.

Other Senate Measures

SB 33 (Wolk)
Eliminates the requirement for voter approval for the creation, adoption, and financing of an infrastructure finance district (IFD), and instead allows a specified legislative body to create the district, adopt the plan, and issue the bonds only by resolution. It also expands the types of projects that may be financed by an IFD.

SB 628 (Beall)
While not a direct tax increase, this measure would eliminate the requirement of voter approval for the adoption of an infrastructure financing plan, the creation of an infrastructure financing district, and the issuance of bonds with respect to a transit priority project.

Assembly Bills

AB 59 (Bonta)
Split Roll Parcel Tax. Specifies that the provisions requiring uniform application of taxes shall not be construed as limiting a school district from assessing taxes in accordance with rational classifications among taxpayers or types of property within the school district.

AB 187 (Bonta)
Imposes a tax upon retailers for the privilege of selling ammunition at the rate of 10% of the gross receipts of any retailer from the sale of ammunition sold at retail in this state on or after January 1, 2014. It would also impose a comparable excise tax on the storage, use, or other consumption in this state of ammunition purchased from a retailer for the storage, use, or other consumption in this state.

AB 188 (Ammiano)
Redefines a change in ownership, requiring more frequent reassessments of property owned by commercial entities. This bill would require the reassessment of property to occur at market value when cumulatively, 100% of ownership interests transfer in a rolling three-year period. It changes the definition of a “single transaction” to include the cumulative transactions in a three-year period.

AB 210 (Wieckowski)
Extends the authority of the County of Alameda and authorizes the County of Contra Costa, to impose the transactions and use tax for countywide transportation programs Until December 31, 2020 conditioned upon prior voter approval. Abrogates the holding in Borikas v. Alameda Unified School District.

AB 760 (Dickinson)
Imposes a tax upon retailers for the privilege of selling ammunition, as defined, at the rate of $0.05 per item of ammunition sold at retail in this state on or after January 1, 2014. It would also impose a complementary excise tax on the storage, use, or other consumption in this state of ammunition purchased from a retailer for storage, use, or other consumption in this state.

AB 769 (Skinner)
Disallows the use of net operating loss carrybacks by individual and corporate taxpayers.

AB 1055 (Pan)
Imposes, a tax on lessees, of qualified heavy equipmentfor the privilege of leasing or renting qualified heavy equipment in this state at the rate of 1.25% of the gross receipts on and after January 1, 2014. This tax would be in lieu of any personal property tax on qualified heavy equipment.

ACA 3 (Campos)
Reduces the local voterequirement from two-thirds to 55% to impose, extend, or increase a special tax by a city, county, or special district to provide supplemental funding for police, fire, emergency response or sheriff services.

ACA 8 (Blumenfield)
Authorizes the issuance of bonded indebtedness for funding the construction of local public safety buildings with a 55% vote.

Other Assembly Measures

AB 243 (Dickinson)
Creates Infrastructure and Revitalization Financing Districts (IRFD) and reduces the two-thirds vote requirement to form an IRFD and issue bonds to 55%.

AB 690 (Campos)
Renames IFDs as Jobs and Infrastructure Financing Districts (JIDs), after a 55% voter-approval to create a JID. (The bill requires a job creation plan that ensures that for every $1 million invested, 10 full-time prevailing wage jobs must be created.)