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.
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