Finally: mobility: governor's signing of SB 1405 brings conformity to California.

• Author: Allen, Bruce C.
• Position: CapitolBeat

Legislation SB 1405 (De Leon), which will bring California into conformity with the interstate practice laws of 48 other states, was signed by Gov. Brown Sept. 20.

This long-term goal of CalCPA was accomplished through collaborative efforts of the large accounting firms, the Center for Public Interest Law, the California Board of Accountancy and CaICPA members who spent time in Sacramento meeting with their Legislators.

This consensus legislation represents years of negotiation with all stakeholders and we are pleased with this outcome. With this law, CPAs will have now have an easier time providing many services to their clients living or doing business in California.

Tax Initiatives on the November Ballot

You will have a lot of important decisions to make this election. In addition to voting for the president and your representatives in Congress and the state Legislature, you will be voting on 11 initiatives. These initiatives will have immense political and policy implications that range from considerable tax policy changes to significant government structural reforms to sharp policy changes.

Two of those initiatives, propositions 30 and 38, each make substantial changes to the tax code to raise revenues for the state.

Proposition 30: Temporary Taxes to Fund Education. Guaranteed Local Public Safety Funding This initiative is sponsored by Gov. Brown as a way to add revenue to the state's general fund and offset some of the recent budget cuts. If the proposition passes, it will increase the state sales tax by one-quarter cent for four years: Jan. 1, 2013--Dec. 31, 2016.

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Additionally it would increase the personal income tax (PIT) on high-income earners for seven years, starting Jan. 1, 2012, and ending at the conclusion of the 2018 tax year. Since the PIT increase begins Jan 1, 2012, those affected would face larger payments in the coming months to account for the full 2012 PIT increase.

Figure 1 shows the proposed additional marginal tax rate for the affected tax brackets should Prop. 30 pass.

Figure 1 Proposed Personal Income Tax Increase Under Prop. 30 Single Filer's Joint Filers' Head-of-Househotd Taxable Income Taxable Income Filer's Taxable Income Less than $250,000 Less than $5OO,OOO Less than $340,000 $250,000-$300,000 $5OO,OOO-$6OO,OOO $340,000-$408,000 $300,000-$500,000 $600,000- $4O8,OOO $1,000,000 -$68O,000 More than $500.000 More than More than $1,000,000 $680,000 SingLe Filer's Proposed Additional...