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Updated:   2026-04-07

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Measure
Authors Gonzalez  
Coauthors: Mark González  
Subject Taxation: tax expenditures: Legislative Analyst’s Office: report and recommendation.
Relating To relating to taxation.
Title An act to add and repeal Section 43 of the Revenue and Taxation Code, relating to taxation.
Last Action Dt 2026-04-06
State Amended Senate
Status In Committee Process
Flags
Vote Req Approp Fiscal Cmte Local Prog Subs Chgs Urgency Tax Levy Active?
Majority No Yes No None No No Y
i
Leginfo Link  
Bill Actions
2026-04-06     From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2026-03-25     Set for hearing April 8.
2026-03-04     Referred to Coms. on REV. & TAX. and G.O.
2026-02-23     From printer. May be acted upon on or after March 23.
2026-02-23     Read first time.
2026-02-20     Introduced. To Com. on RLS. for assignment. To print.
Versions
Amended Senate     2026-04-06
Introduced     2026-02-20
Analyses TBD
Latest Text Bill Full Text
Latest Text Digest

Existing law, including, but not limited to, property tax law, the Sales and Use Tax Law, the Personal Income Tax Law, the Corporation Tax Law, the Motor Vehicle Fuel Tax Law, the law governing the taxation of insurers, the Use Fuel Tax Law, and the Diesel Fuel Tax Law, provides for tax expenditures, including exemptions, deductions, exclusions, and credits against the taxes imposed by those laws.

The bill would require the Legislative Analyst’s Office (LAO), by January 1, 2029, to write and publish a report that comprehensively assesses major tax expenditures, as defined, of the state, and make a recommendation to the Legislature based on the report. In this regard, the bill would require LAO, as part of the comprehensive assessments, to identify any savings that the Legislature can reduce or eliminate from the major tax expenditures, and require them to consider certain criteria when finalizing the report, including the impact on the General Fund.

The bill would require the scope of each comprehensive assessment to include certain specified information, to the extent possible, including a brief description of the beneficiaries of each tax expenditure, as specified.

The bill would require LAO to submit the report to the Senate Committee on Budget and Fiscal Review, the Senate Committee on Revenue and Taxation, the Assembly Committee on Budget, and the Assembly Committee on Revenue and Taxation, as specified, and to publish the report on its internet website. The bill would require the Senate Committee on Revenue and Taxation and the Assembly Committee on Revenue and Taxation, after receipt of the report by the Legislature, to hold a joint public hearing on the report by August 15 of the second year of the legislative session.

The bill would require the recommendation from LAO to the Legislature based on the report to include certain specified information, including the extent to which each major tax expenditure is a cost-effective use of resources compared to other options to address the same purpose, intent, or goal.

The bill would make these provisions inoperative 6 months after the hearing described above, and repeal them the following January. The bill would make findings and declarations relating to these provisions.