California lawmakers have proposed more taxes and fees in the first half of the 2017-18 legislative session than in all of 2015 or 2016. If each proposal became law, the tax burden in California would increase by more than $373 billion per year. To put this in context, all revenue in the 2017-18 State Budget is expected to bring in $178.4 billion.
These tax and fee proposals have been introduced at a time when revenue continues to grow, and California is nearing its taxing capacity under the Gann Spending Limit. Under the limit, if proceeds of taxes exceed the revenue limit, funds must be divided 50-50 between education and taxpayers (by a reduction in tax rates – the last time California reached the limit, rebates were provided directly to taxpayers, but this refund process is not officially recognized in law). As noted in a March 2 Legislative Analyst’s Office report on the state budget, “If revenues increase … or the Legislature approves additional tax levies, the state could find itself on the brink of exceeding the state appropriations limit.”
With the first year of the 2017-18 legislative session closed, this report identifies the cumulative amount of higher taxes, fees, assessments, and charges that lawmakers supported through votes or as authors/coauthors.
Since the start of session in December, lawmakers have introduced 2,584 bills and constitutional amendments. This report identifies 89 proposals that increase taxes, fees, assessments or other charges.
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