California legislation · 2025-2026 Regular Session
California SB1349: Taxation: tax expenditures: Legislative Analyst’s Office: assessment, report, and recommendation.
Status: Chaptered, September 20, 2026
What the bill says
An act to add and repeal Section 43 of the Revenue and Taxation Code, relating to taxation. taxation Taxation: tax expenditures: Legislative Analyst’s Office: assessment, report, and recommendation. Existing law, including, but not limited to, property tax law, the Sales and Use Tax Law, the Personal Income Tax Law, the Corporation Tax Law, the Motor Vehicle Fuel Tax Law, the law governing the taxation of insurers, the Use Fuel Tax Law, and the Diesel Fuel Tax Law, provides for tax expenditures, including exemptions, deductions, exclusions, and credits against the taxes imposed by those laws…
From the chaptered text, September 20, 2026:
An act to add and repeal Section 43 of the Revenue and Taxation Code, relating to taxation. taxation Taxation: tax expenditures: Legislative Analyst’s Office: assessment, report, and recommendation. Existing law, including, but not limited to, property tax law, the Sales and Use Tax Law, the Personal Income Tax Law, the Corporation Tax Law, the Motor Vehicle Fuel Tax Law, the law governing the taxation of insurers, the Use Fuel Tax Law, and the Diesel Fuel Tax Law, provides for tax expenditures, including exemptions, deductions, exclusions, and credits against the taxes imposed by those laws. The bill would require the Legislative Analyst’s Office (LAO) to comprehensively assess the major tax expenditures, as defined, of the state, write and publish a report on each major tax expenditure, and make a recommendation to the Legislature based on each report. In this regard, the bill would require LAO, as part of the comprehensive assessments, to identify any savings that the Legislature can realize by reducing or limiting the major tax expenditures, and require them to consider certain criteria when finalizing each report, including the extent to which the major tax expenditure is a cost-effective use of resources compared to other options to address the same purpose, intent, or goal. The bill would require LAO to complete and publish on its internet website its first …