§ 13305
375 words·~2 min read·
/ca/government-code/13305A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)The department shall provide an annual report to the Legislature on tax expenditures by no later than November 1 of each year. The report shall include each of the following:
(1)A comprehensive list of tax expenditures exceeding five million dollars ($5,000,000) in annual cost.
(2)The statutory authority for each credit, deduction, exclusion, exemption, or any other tax benefit as provided by state law.
(3)A description of the legislative intent for each tax expenditure, if the act adding or amending the expenditure contains legislative findings and declarations of that intent, or that legislative intent is otherwise expressed or specified by that act.
(4)The sunset date of each credit, deduction, exclusion, exemption, or any other tax benefit as provided by state law, if applicable.
(5)A brief description of the beneficiaries of the credit, deduction, exclusion, exemption, or other tax benefit as provided by state law.
(6)An estimate or range of estimates for the state and local revenue loss for the current fiscal year and the two subsequent fiscal years. For sales and use tax expenditures, this would include partial year exemptions and all other tax expenditures when the California Department of Tax and Fee Administration or the State Board of Equalization has obtained that information.
(7)For personal income tax expenditures and for the most recent tax year for which full year data is available, the number of taxpayers affected and returns filed, categorized by taxpayers’ income levels, as applicable, and the cost to the state resulting from these personal income tax expenditures, categorized by the taxpayers’ income levels, for which data is readily available.
(8)For corporation tax and sales and use tax expenditures, the number of returns filed or business entities affected, as applicable, for the most recent tax year for which full year data is available.
(9)A listing of any comparable federal tax benefit, if any.
(10)A description of any tax expenditure evaluation or compilation of information completed by any state agency since the last report made under this section.
(b)For purposes of this section, “tax expenditure” means a credit, deduction, exclusion, exemption, or any other tax benefit as provided for by the state.
(c)This section shall become operative on August 1, 2023.