Government Finance and Operations 05/24/2013
Senate Suspense File
SB 1 (Steinberg) – Support
As Amended on May 2, 2013
SB 1, by Senate President Pro Tem Darrell Steinberg, which would create a structure for continuing economic development activities consistent with the state’s sustainable development goals. It would prohibit a county or city that had a redevelopment area from forming a Sustainable Communities Investment Authority pursuant to the bill until all of the former redevelopment agency’s debts are fully paid.
The foundation of CSAC’s support is allowing counties a clear option whether or not to financially participate in tax increment financing for economic development purposes. We believe an approach that encourages collaboration between counties and cities will best serve Californians. This approach would not only allow counties appropriate control over their own general funds, but necessitates discussions about what kinds of development benefits the community as a whole.
The Senate Appropriations Committee passed SB 1 on Thursday, May 23. It now moves to the Senate Floor.
Assembly Suspense File
AB 576 (V. Manuel Pérez) – Support
As Amended on May 1, 2013
AB 576, by Assembly Member V. Manuel Pérez, would create a strike force to combat criminal tax evasion.
AB 576 would target those individuals and businesses that avoid registering and paying taxes. In becoming part of the underground economy, businesses avoid regulations that keep consumers and employees safe, and they avoid paying local, state, and federal taxes that pay for the infrastructure and safety nets that keep the economy running and the community healthy. In doing so, they gain an unfair advantage and at the same time shift a proportionately greater civil burden onto the businesses and individuals that follow the law. This type of criminal activity cuts across the silos of state government, and a collaborative enforcement team is the appropriate way to combat it.
The Assembly Appropriations Committee passed AB 576 on Friday, May 24. It now moves to the Assembly Floor.
AB 781 (Bocanegra) – Support
As Amended on April 18, 2013
AB 781, by Assembly Member Raul Bocanegra, would create a crime for selling, buying, installing, or possessing software that falsifies electronic cash register data. Such software is designed so that the retailer charges the customer the sales tax and then keeps it by hiding true sales amounts.
The Assembly Appropriations Committee passed AB 781 on Friday, May 24. It now moves to the Assembly Floor.
AB 1322 (Patterson) – Support
As Amended on May 1, 2013
Assembly Bill 1322, by Assembly Member Jim Patterson, would restore the Senior Citizens’ Property Tax Postponement Program in a manner that would create a financially sustainable program. Regrettably, the state’s Senior Citizens’ Property Tax Postponement Program was eliminated in the February 2009 budget agreement.
The Legislature eventually approved a program that allowed counties to voluntarily provide the program locally; however, that program failed to authorize counties to establish a priority lien as security for repayment. As a result, to our knowledge, only one county has opted to provide the program locally. AB 1322 instead provides a fiscally sustainable mechanism to reestablish the program on a statewide basis.
The Assembly Appropriations Committee held AB 1322 in committee on Friday, May 24. The bill is dead for the year.
AB 1326 (Gorell) – Oppose Unless Amended
As Amended on April 29, 2013
AB 1326, by Assembly Member Jeff Gorell, would exempt equipment for manufacturing unmanned aerial vehicles from sales and use taxes. It fails to reimburse local agencies for the resulting revenue loss.
If favoring these purchases is an issue of statewide concern, as passing this bill would indicate, then the state should use statewide revenues to reimburse counties and other local agencies for their losses, as provided by statute. Alternatively, the bill could exempt the local portions of the tax from the special treatment the bill would confer.
The Assembly Appropriations Committee held AB 1326 in committee on Friday, May 24. The bill is dead for the year.