Senate Bill 364 - Comprehensive Tax Reform

February 27, 2017

Bill Text


California has a heavy reliance on income tax revenue, which is one of the most volatile revenue sources. In a downturn, this leaves California scrambling to come up with new ways to fund the State. Senate Bill 364 is intended to address this issue by crafting a comprehensive tax system reform for the State.


  1. Address volatility of current tax structure
  2. Restructure the State’s process for tax administration
  3. Budget reform by addressing spending restraint
  4. Conformity with Federal tax system
  5. Create greater transparency in the tax system

Background Documents

  1. House Republicans – A Better Way (2016)
  2. CalFacts – LAO Facts and Figures on California Economy / Revenues (2016)
  3. Tax Foundation State Tax Business Climate Index (2017)
  4. An Analysis of a Consumption Tax for California (2016) – CSU Center for California Studies
  5. Joffe, Marc (2016) – Prop 55, A Gamble the High Rollers will Do Well, Fox & Hounds
  6. 2016 ALEC Rich States Poor States Rankings
  7. Federal Spending in California (2017) LAO Report [7 parts]
    1. How Much Money Does the Federal Government Spend in California?
    2. Comparing Federal Spending Received to Taxes Paid Nationally
    3. Direct Federal Expenditures to Individuals, Private Entities, and Universities
    4. Federal Expenditures to the State Government
    5. Federal Expenditures to Local Governments
    6. Geographic Distribution of Federal Expenditures for Most Major Programs
    7. Methodology and Comparison to Other Studies
  8. California Income Tax Brackets (2016)



Eric Dietz, Legislative Director, 916-651-4037