Assembly Bill 71 was amended on January 12 to replace its intent language with dozens of pages of substantive amendments, including several major tax increase proposals. This article only examines the tax provisions of AB 71. The bill is jointly authored by Assembly Members Luz Rivas, Richard Bloom, David Chiu, and Buffy Wicks. AB 71 will require a 2/3 vote for passage in both houses of the Legislature.
According to the bill’s author, “AB 71 will generate $2.4 billion annually by closing corporate tax loopholes and restoring historic corporate tax rates to their 1980s level on corporations with $5 million or more in profits. This ongoing funding source gives local governments desperately needed resources to implement programs and action plans that combat homelessness, while ensuring transparency and strong accountability that holds local governments accountable to ensure every dollar is used effectively.”
AB 71 is sponsored by the Bring California Home Coalition including Mayors Eric Garcetti, Libby Schaaf, and Darrell Steinberg; Housing California, Corporation of Supportive Housing, All Home, Brilliant Corners, Episcopal Community Services – San Francisco, HOPICS, John Burton Advocates for Youth, National Alliance to End Homelessness, Non-Profit Housing Association of Northern California, Steinberg Institute, United Way of Greater Los Angeles, etc.
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