California ~ Multiple Taxes: Governor Vetoes Budget Bill

California Gov. Jerry Brown has vetoed the budget passed by the General Assembly on June 15 that would have

— increased the local sales and use tax rate by one percent by ending the revenue exchange period that was enacted in 2004 in which local sales and uses were increased in conjunction with a transfer of property tax from local government to schools;

— increased vehicle registration fees by approximately $12; and

— transferred revenues from a variety of funds.

The California General Assembly was unable to get the requisite two-thirds vote necessary to extend the temporary sales and use tax rate increase, vehicle license fee increase, and personal income surcharge; make the single sales factor optional election mandatory; or implement the other tax changes proposed in the governor’s May budget revised proposal (TAXDAY, 2011/05/19, S.11). The governor contends that the budget presented is not a “balanced solution,” continues big deficits in the future, increases debt, contains “legally questionable maneuvers, costly borrowing and unrealistic savings,” and is not financeable.

S.B. 69 and A.B. 98 Veto Message, California Gov. Jerry Brown’s Office, June 16, 2011

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Wolters Kluwer Tax and Accounting

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