Report 2015-127 Recommendation Responses
Report 2015-127: Corporate Income Tax Expenditures: The State's Regular Evaluation of Corporate Income Tax Expenditures Would Improve Their Efficiency and Effectiveness (Release Date: April 2016)
Recommendation for Legislative Action
To ensure that the minimum franchise tax exemption is effectively fulfilling its purpose, the Legislature should consider commissioning an evaluation of it to determine if it is effectively encouraging business formation within the State.
Description of Legislative Action
The Legislature did not take action in the 2021-2022 legislative session to address this specific recommendation.
- Legislative Action Current As-of: November 2022
California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken
Description of Legislative Action
As of April 12, 2021, the Legislature has not taken any additional action to address this specific recommendation.
SB 468 (Jackson, 2019) would have required the Legislative Analyst's Office to conduct an analysis of specified tax expenditures before December 1, 2022, that would, in part, describe the economic, social, or any other benefits of the tax expenditure to the State. The bill would have required the LAO to submit a report to the Legislature on its findings. The bill was vetoed by the Governor.
- Legislative Action Current As-of: April 2021
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Vetoed
Description of Legislative Action
SB 468 (Jackson) would require the Legislative Analyst's Office (LAO), prior to December 1, 2022, to conduct an analysis of specified tax expenditures describing, in part, the economic, social, or any other benefits of the tax expenditure to the State. The bill would require the LAO to submit a report to the Legislature on its findings.
- Legislative Action Current As-of: April 2019
California State Auditor's Assessment of Annual Follow-Up Status: Legislation Introduced
Description of Legislative Action
Assembly Bill 1432 (Melendez) would have required the California State University' s Center for California Studies to conduct research on the impact of the minimum franchise tax and annual tax on businesses. This bill failed passage in the Assembly.
- Legislative Action Current As-of: April 2018
California State Auditor's Assessment of 1-Year Status: Legislation Proposed But Not Enacted
Description of Legislative Action
The Legislature has not taken any action to address this specific recommendation.
- Legislative Action Current As-of: April 2018