Report 2015-127 Recommendation Responses
Report 2015-127: Corporate Income Tax Expenditures: The State's Regular Evaluation of Corporate Income Tax Expenditures Would Improve Their Efficiency and Effectiveness (Release Date: April 2016)
Recommendation for Legislative Action
To increase oversight of existing and future tax expenditures through the use of best practices, the Legislature should consider enacting a joint legislative rule requiring specific goals, purposes, and objectives as well as detailed performance indicators for all tax expenditure types, including elections and exemptions.
Description of Legislative Action
AB 263 (Chapter 743, Statutes of 2019) requires each bill enacting a new tax expenditure under both the Personal Income Tax and Corporate Tax laws to describe the goals, purposes, and objectives for authorizing such an expenditure, and to specify detailed performance indicators intended to measure the effectiveness of the expenditure. This statute defines a tax expenditure as a credit, deduction, exclusion, exemption, or any other tax benefit as provided for by the State, and only applies to tax expenditures enacted by bills introduced on or after January 1, 2020.
- Legislative Action Current As-of: April 2020
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Enacted
Description of Legislative Action
AB 263 (Burke) would require each bill enacting a new tax expenditure under both the Personal Income Tax and Corporate Tax laws to describe the goals, purposes, and objectives for authorizing such an expenditure, and to specify detailed performance indicators intended to measure the effectiveness of the expenditure. This bill would define a tax expenditure as a credit, deduction, exclusion, exemption, or any other tax benefit as provided for by the State, and would only apply to tax expenditures enacted by bills introduced on or after January 1, 2020.
- Legislative Action Current As-of: April 2019
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Introduced
Description of Legislative Action
Legislation has not been introduced to address this specific recommendation.
- Legislative Action Current As-of: April 2018