Happy New Year – Governor Schwarzenegger Announces Proposed 2009-2010 State Budget

Thanks to Kyla Christoffersen of Cal Chamber for providing the following information.

On December 31st, the Governor announced his 2009-10 proposed budget. You can find a description of the proposed tax increases and revenue raisers, beginning on page 58 of the pdf document.

Download CA Budget Proposal (Dec 31 2008)

Revenue raisers are:

·         Temporary 3-year 1.5?cent increase in the Sales and Use Tax rate (est. to raise $2.35 billion in 2008-09; $7.1 billion in 2009-10)

·         Broaden the Sales and Use Tax base to include certain services – appliance, furniture, and vehicle repair and veterinary services (est. to raise $272 million in 2008-09 and $1.15 billion in 2009-10)

·         Adopt a 9.9?percent Oil Severance Tax (est. to raise $358 million in 2008-08 and $855 million in 2009-10)

·         Increase the Beverage excise tax by a per gallon surtax equivalent to a “nickel?per?drink” (est. to  raise $244 million in 2008-09 and $585 million in 2009-10)

·         Reduce the personal income tax dependent exemption credit to equal the personal exemption credit (est. to raise $1.44 billion in 2009-10)

·         Increase the vehicle registration fees (est. to raise $92 million in 2008-09 and $359 million in 2009-10)

·         Shift Tribal Revenues from Transportation to General Fund.

·         Transfer and borrow balances from special funds.

 

       While these budget proposals are tough to comprehend in the current economic environment, the Governor's proposals are more moderate than many other proposals which have been advanced over the past 12 months. 

       Facing a $40 billion plus budget deficit, the Governor and his staff should be applauded for allowing plenty of lead time to start the budget process since this is such a critical time for all Californians during an unprecedented challenging economic period.

      It will be interesting to see if the legislators can hash out the final budget in a timely and reasonable manner.  

      Read more about how your Califonia tax burden (as well as tax burdens in 40 other states) can be significantly reduced while you are assisting economically challenged communities:

       Download AICPA Tax Rates and Tax Credits

       Download Socially Responsible Tax Planning

       Download CCH LOCATION_BASED_TAX_CREDITS WEBINAR

    

         

 

 

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One Response to “Happy New Year – Governor Schwarzenegger Announces Proposed 2009-2010 State Budget”

  1. Luis Maimoni says:

    I totally agree with:
    There is a clear need for infrastructure investment; however,to maximize the stimulus effect and minimize the taxpayers’ cost of these projects, legislators need to carefully allocate and monitor the underlying construction contracts.
    I just wish I knew a way to make it happen!

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