Key Tax Provisions of California’s 2010-2011 Budget Act


Two years ago, we highlighted the key provisions of California’s 2008–2009 Budget Act, noting how at that time California had set a new record with an 85-day delay before enactment of the 2008-2009 budget.1 This year California set a new record with a triple-digit delay—100 days to be exact —before enactment of the 2010-2011 budget.2 The 2010 Budget Act addresses the $19.9 billion budget deficit identified in the May 2010 Revision3 and it provides a modest reserve of $1.3 billion this year.4

Much like the final compromise budget agreement between the legislature and the governor in 2008, key trailer bills were enacted to implement the main 2010 budget bill. It is in one of these trailer bills where a number of major tax provisions are found. Senate Bill 858 (“SB 858”) was signed by the governor on October 19 and was chaptered into law the same day. SB 858 is an urgency measure, meaning it went into immediate effect when enacted.5 A discussion of the three major tax provisions of the bill is set forth below.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.