Top Billing

July 2019

A monthly update on key legislation for Treasurer Ma

Sacramento California State Capitol

529 ScholarShare Tax Deduction on State Income Taxes

Assembly Bill 211, Ian Calderon (D-Whittier)

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. (Amended in Appropriations to include salary caps of $75,000 for single taxpayers and $150,000 for joint filers.)

Eliminate Sunset Date for Certification and Bifurcation of Low-Income Housing Tax Credits

Senate Bill 9, Jim Beall (D-San Jose)

Eliminates the sunset date for reauthorization to certificate and bifurcate state Low-Income Housing Tax Credits, and would require the allocation of credits among partners in accordance with the partnership agreement and authorizing the sale of a credit, as described by the bill indefinitely.

Expand the Low-Income Housing Tax Credit

Assembly Bill 10, David Chiu (D-San Francisco)

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.

Financial Institutions for Cannabis

Senate Bill 51, Robert M. Hertzberg (D-Van Nuys)

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.

Name Translation on Ballot Materials

Assembly Bill 57, Evan Low (D-Silicon Valley)

Standardizes the way names are translated into character-based languages on the California ballot.

Tax Deductions on Ordinary Business Expenses for Cannabis Businesses

Assembly Bill 37, Reginald Byron Jones-Sawyer Sr. (D-Los Angeles)

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.

Online Retailers Sales Tax: Expansion to Marketplace Facilitators

Assembly Bill 147, Autumn Burke (D-Marina del Rey)

Extends retailers sales tax to online marketplace facilitators and requires them to collect and remit taxes on behalf of third-party sellers. (Signed into law.)