April 15 is around the corner. You’ve all worked really hard and have earned a break.
For me, this is the time of year where I begin to scour the hundreds of California bills that have been introduced during this legislative session. By the end of April, all fiscal bills must be heard by the fiscal committee in their house of origin, so it gives us a sense of what may be coming.
There are a variety of tax-related bills that have been introduced this year that will likely get a lot of media attention, even if they don’t actually get enacted. And who is to say whether they will or not … at this stage it is way too early to tell. Although if I were a betting gal, I’m thinking that given the condition of the state budget, the increased demands that are going to be put on the state due to federal cutbacks, and the likely presidential campaign of a prominent California political figure, there will likely not be a lot of big tax bills that are enacted this year.
But be that as it may, we are watching the hundreds of tax and related bills that have been introduced, including bills that if enacted would:
- Repeal California’s water’s-edge election for unitary multinational businesses (AB 1790);
- Require rounding up of cash sales to the nearest nickel (in response to the federal government’s decision to stop minting pennies) (AB 1793);
- Provide conformity to several of the TCJA and OBBBA provisions such as qualified tips, overtime, and §529 rollovers to Roth IRAs (AB 2336, AB 2444, SB 984);
- Specifically state that the CalSavers mandate applies to household employers (AB 2607). But wait, why has CalSavers been saying that household employers are covered if a law is necessary to clarify this? and
- Suspend the motor vehicle tax for one year. (AB 2722)
Naturally, while most bills have to have been introduced already if they are to be enacted this year, this doesn’t apply to budget-related bills or tax bills, so who knows what else might be put up for consideration before the end of the legislative session.
Of course, I have my eye on some non-tax related bills that I think are quite interesting as well. These include bills that if enacted would:
- Prohibit businesses from sending text advertising between 9 p.m. and 9 a.m. (hell yes!!!) (AB 1865);
- Repeal daylight savings time … again!!! (SB 1197);
- Require legislative members to take a course on the U.S. and California Constitution … I mean, you do have to take a test to get a driver’s license (SB 1308);
- Declare May 17 as Bruce Lee Day (❤️) (AB 2455); and
- Create state surfing reserves (AB 1938) … after all, we have to support California’s official sport: surfing.
So, while I hope you will be going off for some well-deserved R&R after next Wednesday, know that we at Spidell will be staying on top of all the latest developments to fill you in on when you come back all refreshed and raring to go.
