California Taxpayers Association

12/11/2025

The California wealth tax initiative would jeopardize the state's long-term tax base by encouraging high-earners to leave California, the nonpartisan Legislative Analyst's Office reports, and this "would mean less money for the state’s general budget that supports education, health care, prisons, and other services."

"California billionaires, like all those earning money in the state, currently pay state taxes on their annual income," the report states. "How billionaires respond to a new wealth tax could indirectly reduce their income tax payments. For example, it is likely that some billionaires decide to leave California. The income taxes they currently pay to the state would go away with their departure. The reduction in state revenues from these kinds of responses could be hundreds of millions of dollars or more per year."

The reduction in long-term revenue likely would lead to proposals for broad-based tax increases on all remaining California residents.

This measure would create a one-time tax on California billionaires equal to 5 percent of their net worth (A.G. File No. 25-0024, Amendment #1).

08/26/2025

California state lawmakers proposed increasing taxes and fees by more than $16 billion during the first eight months of the 2025-26 legislative session, the California Tax Foundation reported today.

The foundation’s Tax and Fee Report identifies 71 proposals with higher taxes or fees introduced during this period. The potential cost to taxpayers can be quantified for 20 of the measures, while fiscal estimates for the remaining measures are not yet available.

The new taxes and fees proposed by lawmakers include personal and business income tax increases, a digital advertising tax, a new tax on public transportation tickets for specified sporting events in Los Angeles and Santa Clara counties, and sales tax increases on purchases in the Monterey and San Luis Obispo areas.

https://www.caltax.org/foundation/reports/20250826-Tax-and-Fee-Report.pdf

04/21/2025

"When state lawmakers return from spring break today, they will immediately hold hearings on tax increases that would make our state even less affordable for our neighbors and friends who continue to see the California Dream slip away," CalTax President Robert Gutierrez writes. "... If affordability is still a priority for the legislative session – and it should be – then lawmakers can take the first step and stop these harmful tax proposals."

When state lawmakers return from spring break Monday, they will immediately hold hearings on tax increases that would make our state even less affordable for our neighbors and friends who continue …

04/14/2025

STATE SENATOR PROPOSES MASSIVE NEW STATEWIDE TAX

Vacancy Tax on Properties Would Devastate Already Struggling Business Owners

The California Taxpayers Association (CalTax) and California Business Properties Association (CBPA) are leading a fast-growing statewide coalition in strong opposition to Senate Bill 789 (Menjivar; D-Van Nuys), a just-unveiled proposal that would impose a $5-per-square-foot annual tax on vacant commercial properties. The bill, slated to take effect in 2028, also threatens a steep 75% penalty for reporting errors related to the tax.

“SB 789 would impose an unprecedented tax increase on property owners struggling with commercial vacancies. Approving an untested and onerous tax increase on Californians would continue to signal that California is not interested in truly supporting property owners,” CalTax President Robert Gutierrez said. “By punishing vacant properties with arbitrary taxes, this bill would ultimately drive commercial property values down, tighten local government budgets, and make California even less affordable for families and businesses alike. It’s a short-sighted approach that fails to address the root causes of vacancy.”

Vacancy rates remain elevated across California due to market forces, not property owner neglect, as commercial sectors like retail, office, and industrial work to recover from pandemic-driven disruptions and normal market fluctuation.

Industry leaders warn that SB 789 would further destabilize these already fragile markets, compounding economic uncertainty and undermining local revenues. Under California’s Prop 8 reassessment rules, declining property values from this tax could trigger permanent losses in funding for schools, cities, and essential services.

"California’s commercial property owners are still grappling with the aftermath of the pandemic, rising interest rates, corporate relocations, supply-chain issues, and inflation-driven construction and operational costs," said Matthew Hargrove, President and CEO of CBPA. "SB 789 piles on another punitive burden at exactly the wrong time, discouraging investment and jeopardizing the state’s economic recovery."

The growing coalition opposing SB 789 highlights the failure of similar vacancy taxes in cities like San Francisco, where such measures have not reduced vacancies, have backfired economically, and now face serious legal challenges. The coalition is urging lawmakers to pursue incentive-based solutions that actually promote revitalization and job creation, rather than doubling down on punitive, counterproductive policies.

The Senate Revenue and Taxation Committee is set to hear SB 789 on Wednesday, April 23, 2025, at 9:30 a.m.

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About CalTax: Founded in 1926, the California Taxpayers Association is the state’s oldest and largest organization representing taxpayers, advocating for sound tax policy and efficient government.

About CBPA: The California Business Properties Association represents the commercial, retail, and industrial real estate sector, advocating for responsible policies that promote economic growth and job creation for over 50 years.

03/20/2025

California state lawmakers proposed increasing taxes and fees more than $10.1 billion a year during the first three months of the 2025-26 legislative session, the California Tax Foundation reported today.

https://www.caltax.org/foundation/reports/20250320-Tax-and-Fee-Report.pdf

The foundation’s Tax and Fee Report identifies 36 proposals during this period with higher taxes or fees. The potential cost to taxpayers can be quantified for six of the measures, while fiscal estimates for the remaining measures are not yet available.

The new taxes and fees proposed by lawmakers include charges that would add to consumers’ costs for gasoline, prepaid telephones, emergency flares, public transportation tickets for specified sporting events in Los Angeles, and purchases of many items in the areas of Monterey and San Luis Obispo.

03/04/2025

CalTax President Robert Gutierrez describes state regulations that would impose a $3.5 billion direct cost to businesses, resulting in increased costs of goods and services for California consumers.

The governor and Legislature can intervene and direct the agency to pause any new regulations while establishing a policy that protects jobs and prevents economic harm.

02/27/2025

The California Tax Foundation today released the seventh edition of “California Tax Facts: An Overview of the Golden State’s Tax Structure,” a comprehensive resource designed to provide taxpayers, elected officials, and the media with essential information about the state’s tax system.

The updated publication includes a broad overview of California’s tax landscape, covering various state and local taxes in an accessible format. Featuring easy-to-read charts, graphs, and clear descriptions, the guide serves as a valuable tool for understanding how tax revenue is generated and allocated.

https://www.caltax.org/foundation/reports/2025-Tax-Facts.pdf

02/24/2025

The California Taxpayers Association was formed on this date 99 years ago to create a formal statewide voice for taxpayers, and our Articles of Incorporation were certified by Secretary of State Frank Jordan on March 8, 1926.

10/02/2024

California lawmakers considered increasing taxes and fees more than $208.5 billion a year during the second year of the 2023-24 legislative session, the California Tax Foundation reported today. $8.1 billion in new levies were approved.

The Tax and Fee Report tallies 89 proposals during this period with higher taxes or fees. The potential cost to taxpayers can be quantified for 25 of the measures (the $208.5 billion cumulative total), while fiscal estimates for the remaining measures are uncertain.

https://www.caltax.org/foundation/reports/20241002-Tax-and-Fee-Report.pdf

06/18/2024

During the first five months of 2024, California lawmakers considered increasing annual taxes and fees by more than $196.5 billion, including a package of business tax increases contained in the state budget already approved by lawmakers, the California Tax Foundation reported today.

During the first year of the 2023-24 session, the Legislature and governor approved more than $10.4 billion in higher taxes and fees.

https://www.caltax.org/foundation/reports/20240618-Tax-and-Fee-Report.pdf

05/22/2024

Discussing one part of the governor's proposal to raise business taxes by $18 billion, CalMatters columnist Dan Walters writes:

"In addition to its fiscal impacts, the legislation sets a questionable precedent of retroactively changing tax laws after taxpayers have won appeals. Such ex post facto legislation undermines the integrity of the tax system."

Gavin Newsom has shunned tax increases to cover California's budget deficit, yet his latest proposal contains indirect levies on businesses.

05/10/2024

Statement from California Taxpayers Association President Robert Gutierrez on the May revision of the state budget:

“Taxpayers applaud Governor Newsom for rejecting most tax increases, and we agree that efficiency and accountability should be the focus of the budget. We are concerned, however, that the May Revise would increase the challenges employers face in California by suspending important tax credits and increasing taxes on businesses, including those that have lost money. Additionally, the proposal seeks to generate revenue by reversing a well-reasoned legal opinion on income apportionment. The taxpayer and tax agency had their ‘day in court,’ and the Office of Tax Appeals – created to keep politics and revenue concerns out of the tax appeals process – ruled unanimously in favor of the taxpayer. The OTA’s ruling was correct and should be respected. We look forward to working with the administration and Legislature as they work on a budget that protects taxpayers and makes the government more accountable and affordable for Californians.”