Legislative Democrats and Governor Newsom agreed to a deal on a record-breaking $262.6 billion state budget for the fiscal year that started July 1. The budget was fueled by a $76 billion state surplus and $27 billion in federal aid.
While the budget includes hundreds of new spending proposals, it does not repeal taxes that were raised on employers last year based on an anticipated budget deficit that never happened. It also does not pay down the state’s unemployment insurance debt, leaving businesses to shoulder the costs created by the pandemic and the state’s inability to prevent more than $30 billion from being stolen from the system.
Instead of supporting businesses still struggling to recover from the pandemic, government has created countless new programs, proposals, and promises that require long-term spending that could disappear in a future economic downturn. And what will happen then? The Legislature's favorite solution to any problem – tax increases.
We need to be doing everything we can to help hardworking California families by saving businesses, protecting jobs, and reducing taxes.
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The Board has been meeting remotely since March 2020, and I was happy to learn that we will resume in-person meetings this October. We are also exploring whether we can add technology that will allow an option for remote participation.
We also had our monthly discussion about the implementation of Proposition 19, which passed last November and expanded the law that allows certain homeowners to transfer their base year value when they move to a new primary residence and significantly changed the exclusion for intergenerational transfers.
We approved a staff request to amend Proposed Property Tax Rule 462.520, relating to Proposition 19 and intergenerational transfers of property, based on feedback received after the BOE voted to pursue the proposed rule. The vote authorizes staff to post the proposed amendment for a 15-day period and continue the rulemaking process.
Next, the Board unanimously approved staff moving forward on a report outlining options the BOE could consider to provide relief to taxpayers affected by COVID-19. The report will include recommendations and any possible options to extend property tax deadlines – including property tax rule changes, legislative changes, and constitutional amendments.
Finally, in an effort to encourage affordable housing, the Board has directed staff to prepare a white paper focusing on the BOE’s role in administering the welfare exemption (the exemption for property used exclusively for charitable, hospital, scientific, or religious purposes, and owned or held in trust by nonprofit organizations operating for those purposes). Staff is gathering data to analyze whether there are constraints in the system that can be addressed and will present their findings to the Board this month or in August.
We are proud as a Board to continue meeting our constitutional duties using various virtual platforms and remain committed to our mission to serve Californians through fair, effective, and efficient tax administration in support of state and local governments.
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California voters passed Proposition 19 last November and the measure is now fully effective. Although the implementation timeline was tight, Board Members have been working closely with BOE staff, County Assessors, and the Legislature to get as much clarification on the measure as possible.
My staff continues to monitor two bills making their way through the state Legislature:
Senate Bill 539 (Hertzberg), which will help clarify many vague and inconsistent provisions of the law, passed the Senate with a vote of 37-0 and passed the Assembly Revenue and Taxation Committee on July 5, 2021. It will now be heard in the Assembly Appropriations Committee.
Senate Bill 668 (Bates), which will delay the implementation date of the intergenerational transfer exclusion provisions to February 16, 2023, giving officials more time to clarify ambiguities in the new law, is in the Senate Governance and Finance Committee awaiting a further hearing date.
While these bills make their way through the legislative process, BOE staff will continue updating its Proposition 19 guidance. These updates can be found on my website.
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Let's Help Businesses Thrive in a Post-COVID World |
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The following is an excerpt from my latest opinion piece commenting on helping businesses thrive as we find our way out of the pandemic.
Is California’s economy recovering from COVID or not? Recent jobs numbers don’t help answer that question. In May, California added nearly 105,000 jobs, the fourth straight month adding more than 100,000. That is certainly strong job growth by historic state standards. But California has gained back only about 52-percent of the jobs lost since the start of the pandemic, far below the national average of 66-percent.
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Another Gas Tax Goes Into Effect |
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As you may already know if you visited the pump, another gas tax increase went into effect on July 1.
In 2017, I voted against Senate Bill 1, the Road Repair and Accountability Act, which raised the gas tax by 12 cents per gallon that year and allowed for another 5.6 cent increase in 2019 and 3.2 cent increase in 2020. Now, it’s gone up another 0.6 cents to keep up with inflation, coming in at 51.1 cents total – the highest gas taxes in the nation! It doesn’t have to be this way. Providing modern, safe infrastructure should be a basic tenet of state government. We need to make transportation a priority in the state budget and stop nickel and diming hardworking taxpayers.
I joined NewsRadio KFBK to discuss the issue. Listen here.
I also visited Fox 40 News in-studio. You can view that interview here. |
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I had a great time at the 59th Annual Sacramento Taxpayers Association dinner! I gave the invocation and enjoyed visiting with my fellow low-tax advocates. I appreciate all the work they are doing to keep taxes fair, easy to understand and to administer.
Top photo: Board Member Gaines with Bruce Lee, President of the Sacramento Taxpayers Association.
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I'm a proud graduate of Leadership Sacramento class of 1987, and it was a thrill to be back with this year's class welcoming them on Government Day. Leadership Sacramento is a program of the Sacramento Metro Chamber Foundation that develops community-minded business and civic leaders of tomorrow. This year-long interactive program provides a behind-the-scenes view of the issues that impact the region’s economy. I shared my story of becoming civically engaged and hopefully provided some inspiration for this great group of California leaders! |
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As a Board Member, my number one priority is to advocate for taxpayers. I believe hardworking Californians deserve to have someone working on their behalf to streamline and promote efficiency in state government.
Should you need assistance with tax-related problems or have questions, visit my website for information on how to contact my office or email me directly anytime.
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