California Assembly Bill AB545

California 2021-2022 Regular Session

• Introduced: 2/10/21
• Refer: 2/18/21
• Report Pass: 4/19/21
• Refer: 4/20/21
• Report Pass: 5/3/21
• Refer: 5/5/21
• Refer: 5/19/21
• Report Pass: 5/20/21
• Engrossed: 6/1/21
• Refer: 6/2/21
• Refer: 6/9/21
• Refer: 6/16/21
• Report Pass: 6/28/21
• Refer: 6/29/21
• Report Pass: 7/14/21
• Refer: 7/14/21
• Refer: 8/16/21

Caption

University of California: major tax expenditures: research.

Impact

If enacted, AB 545 could substantially influence how tax expenditures are evaluated and assessed in California. It requires the Franchise Tax Board and the California Department of Tax and Fee Administration to supply readily available taxpayer information to facilitate this study. This could lead to a more informed approach to tax policy, particularly regarding efficiency and effectiveness, and may foster recommendations for changes to optimize California's tax expenditures and their impacts on the General Fund.

Summary

Assembly Bill 545, introduced by Assembly Member Quirk, focuses on requesting the Regents of the University of California to conduct a comprehensive assessment of major tax expenditures within California's tax code. This bill aims to explore the legislative intent behind these expenditures, identify their beneficiaries, analyze the number of affected returns or businesses, and assess the overall cost and effectiveness of these tax incentives, which have been traditionally used to achieve specific economic and policy goals.

Sentiment

The sentiment surrounding AB 545 appears to be generally positive among those advocating for enhanced oversight and accountability of tax expenditures. Supporters believe that rigorous evaluation could reveal inefficiencies and areas for improvement in the current tax structure. However, potential detractors could express concerns about the feasibility and resources necessary for such an extensive assessment, as well as the implications of sharing taxpayer data.

Contention

A notable point of contention within AB 545 lies in the fact that it expands the scope of a crime by making unauthorized use or sharing of taxpayer information a misdemeanor. This raises concerns among privacy advocates regarding the security of sensitive information. Additionally, as the bill requests that findings be submitted to the Legislature by early 2024, there are questions about the bill's long-term impact and whether the insights gained can indeed lead to actionable reforms in tax policy.