On July 29, 2009, Governor Schwarzenegger issued Executive Order S-15-09 stating he will call a special session in September 2009 to consider the recommendations made by the Commission on the 21st Century Economy ("Commission") to improve California's state tax system.
The Executive Order discusses how California's tax revenues have experienced large fluctuations over the past decade making it difficult to fund the operations of the government. Therefore, the tax system needs to be updated for the new economy and the next century.
According to the Executive Order, on or before September 20, 2009, the Commission shall deliver a report to the Governor and to the Legislature with recommendations to change laws to achieve the following goals:
- Establish 21st century tax structure that fits with state's 21st century economy;
- Stabilize state revenues and reduce volatility;
- Promote the long-term economic prosperity of the state and its citizens;
- Improve California's ability to successfully compete with other states and nations for jobs and investments;
- Reflect principles of sound tax policy including simplicity, competitiveness, efficiency, predictability, stability and ease of compliance and administration;
- Ensure that tax structure is fair and equitable.
As reported earlier, the Commission is considering a business net receipts tax as one of the possible tax reforms (For details, see http://www.accountingweb.com/item/107820)
Click on the following link to access the Executive Order: