About
The Tax Policy team has a strong tradition of finding regional, state and federal bipartisan policy solutions that recognize the innovation economy by bringing California and the U.S. tax codes up to date. Our top priorities are promoting tax policies that are competitive globally and with other states and creating level playing fields for business sales and use and property taxes.
Team Lead
Past Wins
Comprehensive Federal Tax Reform
The Leadership Group supported comprehensive corporate tax reform, including lowering the corporate income tax rate and moving toward a hybrid/territorial international tax system.
Sales Taxes on Services
Successfully opposed legislation that would have imposed tax on services without an exemption for business inputs. The Leadership Group successfully worked with a broad, statewide coalition of businesses and other business organizations to oppose S.B. 993 (Hertzberg), a bill that proposed to tax services purchased or used by businesses in California. The Senate Governance and Finance Committee held SB 993, declining to vote on the bill Instead, the committee planned to hold several additional hearings on the issue.
Block Harmful Legislation
The Leadership Group has opposed harmful and onerous California tax legislation.
Legislative Activity
In evaluating local and regional tax measures that come before the organization, the Leadership Group will use the following criteria:
- The measure should be for a fixed term and therefore include a built-in sunset (If the measure does not include a sunset, are the reasons for an on-going tax clearly defined?)
- Funds generated by the measure should be used for specific and identifiable purpose(s)
- A consistent dollar amount is applied equally to residential and commercial property parcels
- Measures should be capped at a certain level in consideration of large businesses with many parcels (contiguous parcels for the same business)
- The measure should contain a provision for a citizens’ oversight committee
2019 Legislation
| Category/Title | Bill/Author(s) | Summary | SVLG Position | Status |
| Corporation taxes | S.B. 37 (Skinner) | Corporate tax rate increase | Oppose | In Senate Rules Committee |
| Tax expenditures | S.B. 468 (Jackson) | Repeal tax expenditures amended to have State Board evaluate tax expenditures | Oppose unless amended | Vetoed by Governor Newsom |
| Sales tax | A.B. 784 (Mullin) | Sales tax exemption for EV buses | Support | Signed by Governor Newsom |
| Sales tax | S.B. 522 (Hertzberg) | Sales tax on services | No position | In Senate Rules Committee |
| Sales tax | S.B. 531 (Glazer) | Limit on sales tax rebates to businesses | No position | Vetoed by Governor Newsom |
| Opportunity Zones | S.B. 635 (Hueso) | Partial conformity to federal Opportunity Zone legislation | No position | Held in Senate Governance & Finance Committee |
| Franchise Tax | S.B. 349 (Portantino) | Reduces the minimum franchise tax for some corporations | No position | Vetoed by Governor Newsom |
2018 Legislation
| Category/Title | Bill/Author(s) | Summary | SVLG Position | Status |
| Sales and use taxes: service tax: qualified business | S.B. 993 (Hertzberg) | Sales tax on services | Oppose | Didn't pass |
| Income taxes: investment management services interest: education funding | A.B. 2731 (Gipson) | Increased tax rate on carried interest | Oppose | |
| Middle Class Fiscal Relief Act | ACA 22 (McCarty) | 10% surcharge on net income of corp. | Oppose | Didn't pass |
| Sales and use taxes: exemption: manufacturing and research: useful life: electric power generation | A.B. 600 / S.B. 600 | Definition of "useful life" for tangible property | Support | |
| Taxation | S. B. 567 (Lara) | Decoupling favorable CA law from federal | Oppose | |
| Local government: taxation: prohibition: video streaming services | A.B. 252 (Ridley-Thomas) | Prohibition of tax on streamng services | Support |
Resources
U.S. Congressional Committees
California Government Tax/Organization Contacts
- Board of Equalization
- Franchise Tax Board
- Senate Governance and Finance Committee
- Assembly Revenue & Taxation Committee
- Assessors Association
County Assessor Offices for the Silicon Valley Region
Tax Policy Committee Meetings
Member-only committee meetings: To learn more about joining the committee please contact Dan Kostenbauder at [email protected].
Co-Chairs: Gus Rivera, Intel, John Despotakis, Apple & Diane Matulich, AMD (Co-Chair Emeritus)
Latest Blogs
By Willie L. Brown Jr., Special to CalMatters, April 14, 2020 Many opponents of the…
California is in the midst of an unprecedented economic crisis. Small businesses in California face…
The Silicon Valley Leadership Group is interested in tax issues at the state, local, and…