Taxation.

The California Senate Committee on Budget and Fiscal Review has introduced comprehensive tax legislation that transforms several key areas of state tax policy, from vehicle sales reporting to film industry incentives. The measure makes significant changes to tax administration, credit programs, and revenue collection mechanisms while providing targeted relief for specific taxpayer groups.

The legislation overhauls vehicle sales tax reporting by allowing applications filed with the Department of Motor Vehicles to serve as tax returns, while exempting high-volume dealers in good standing from certain payment requirements. For dealers selling over 1,000 vehicles annually, this creates a streamlined compliance pathway that reduces administrative burden while maintaining oversight.

In a major expansion of California's film and television tax credit program, the bill increases available credits from $330 million to $750 million annually and introduces refundability provisions. Productions can now receive cash refunds for unused credits over a five-year period, enhancing the program's value for attracting and retaining entertainment industry projects. The legislation also strengthens diversity reporting requirements and establishes a Career Pathways Training program funded by production fees.

The measure provides targeted tax relief by excluding up to $20,000 in military retirement pay and survivor benefit payments from state income tax through 2030. It also excludes wildfire settlement payments and compensation related to the Chiquita Canyon landfill event from gross income calculations, while ensuring these payments don't affect eligibility for means-tested benefit programs.

For historic property rehabilitation, the bill modifies credit allocation procedures to prioritize affordable housing projects when annual set-asides go unused. It also clarifies local tax authority in Sonoma County and revises the Marketplace Facilitator Act to encompass additional electronic waste recycling fees.

The legislation renames and expands California's firearm excise tax framework to explicitly cover out-of-state retailers conducting business in California. It increases the cap on tax administration costs from 15% to 20% of collected amounts, providing additional resources for implementation while maintaining fiscal oversight.

These changes take effect immediately as part of the state's budget implementation process, with various provisions phasing in through 2025. The measure includes standard protections regarding severability and state mandate reimbursement requirements.