April 2019 Articles
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A monthly update on key legislation for Treasurer Ma
529 ScholarShare Tax Deduction on State Income Taxes
Assembly Bill 211, Ian Calderon (D-Whittier) https://a57.asmdc.org/
Provides a state income tax deduction for those who contribute to a California ScholarShare 529 account, not to exceed $5,000 for single taxpayers, or $10,000 for joint filers.
Extension of the Sales Tax Exclusion Program
Senate Bill 162, Cathleen Galgiani (D-Stockton) https://sd05.senate.ca.gov/
Extends authorization of the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to January 1, 2030 for the purpose of providing financial assistance in the form of a sales and use tax exclusion for qualifying projects. Projects include those that promote California-based manufacturing, California-based jobs, advanced manufacturing, reduction of greenhouse gases, or reduction in air and water pollution or energy consumption.
Transfer 529 Funds to CalABLE Account without Penalty
Assembly Bill 736, Jacqui Irwin (D-Thousand Oaks) https://a44.asmdc.org/
Allows individuals with disabilities to transfer their funds from a qualified tuition plan, also known as a 529 account or a ScholarShare Savings Plan, to a CalABLE account without a tax penalty.
Name Translation on Ballot Materials
Assembly Bill 57, Evan Low (D-Silicon Valley) https://a28.asmdc.org/
Standardizes the way names are translated into character-based languages on the California ballot.
Temporary Tax Reductions on Cannabis Cultivation and Excise Taxes
Assembly Bill 286, Rob Bonta (D-Oakland) https://a18.asmdc.org/
Temporarily reduces the state’s cannabis excise tax from 15 percent to 11 percent and suspends the cultivation tax altogether to help the fledgling industry establish itself and undercut black market sales.
California Disaster Relief Insurance
Senate Bill 290, Bill Dodd (D-Napa) https://sd03.senate.ca.gov/
Would authorize the Governor, Insurance Commissioner, and Treasurer to design, negotiate, and if deemed beneficial to state financial interests, to purchase a reinsurance policy to address the fiscal implications for the state in dealing with natural disaster events.
Financial Institutions for Cannabis
Senate Bill 51, Robert M. Hertzberg (D-Van Nuys) https://sd18.senate.ca.gov/
Creates a limited-purpose state charter for privately funded banks to service licensed cannabis businesses with the goal of providing alternative banking opportunities for the cash-only cannabis industry.
Online Retailers Sales Tax: Expansion to Marketplace Facilitators
Governor signed into law April 25, 2019.
Assembly Bill 147, Autumn Burke (D-Marina del Rey) https://a62.asmdc.org/
Extends retailers sales tax to online marketplace facilitators and requires them to collect and remit taxes on behalf of third-party sellers.
Eliminate Sunset Date for Low-Income Housing Tax Credits
Senate Bill 9, Jim Beall (D-San Jose) https://sd15.senate.ca.gov/
Extends a restructuring provision that enables more housing for low-income families through the California ax Credit Allocation Committee (CTCAC).
Tax Deductions on Ordinary Business Expenses for Cannabis Businesses
Assembly Bill 37, Reginald Byron Jones-Sawyer Sr. (D-Los Angeles) https://a59.asmdc.org/
Allows cannabis businesses to receive the same state income tax deductions as regular businesses on ordinary business expenses for each taxable year beginning on and after January 1, 2019.
Expand the Low-Income Housing Tax Credit
Assembly Bill 10, David Chiu (D-San Francisco) https://a17.asmdc.org/
Increases California’s Low Income Housing Tax Credit (LIHTC) by $500 million beginning in 2020 and would allocate to farmworker housing projects $25,000,000 per year of that amount.