Bill > SB1349

This bill requires the Legislative Analyst's Office (LAO), a non-partisan state agency, to conduct a comprehensive assessment of California's major tax expenditures by January 1, 2029, and to provide recommendations to the Legislature. Tax expenditures are defined as provisions in tax law, such as exemptions, deductions, or credits, that reduce the amount of tax a person or business owes, effectively acting as government spending. The LAO's report will identify potential savings by reducing or limiting these major tax expenditures, considering factors like their impact on the state's General Fund (the state's main operating budget) and their cost-effectiveness compared to other policy options. The assessment will also detail who benefits from each tax expenditure, its impact on jobs, wages, the economy, and the environment, and compare it to similar federal tax benefits. After the report is submitted to legislative committees and published online, the Senate and Assembly Committees on Revenue and Taxation will hold a joint public hearing on it. The provisions of this bill will become inoperative six months after this hearing and will be repealed the following January.

Budget and Finance, Government Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB1349