How the Gann Limit Affects Californias Monetary Largess?
Currently, it appears history is repeating itself. In 1986-87, the state exceeded the Gann spending limit by about $1.1 billion, and consequently issued rebates in the form of checks to taxpayers. In 1999-00, California is expecting a Gann limit overflow of roughly $1.1 billion, and policymakers’ primary solution for the overage is, again, to issue rebates to taxpayers. The difference between then and now is that refunds are only required when the Gann limit is exceeded in two consecutive years. Several rebate proposals were considered to prevent the Gann limit from officially exceeding its peak next year, including “tax and fee rate reductions” as shown in the chart on page 22. Various types of other “exempt” appropriations have also been contemplated, such as tax incentives, use of gas tax revenues to fund transportation, increased discretionary funding to schools and local government, etc., to further draw down windfall revenues. Rebates v. Tax/Fee Rate Reductions Although the Gann
Related Questions
- As an out-of-state CPA, is there a limit to the number of times I can submit the California Practice Privilege Notification Form as opposed to applying for California licensure?
- Is there a limit to the number of tax returns that can be prepared under the exception referenced in Section 5054 of the California Accountancy Act?
- Whether firms registered with lower monetary limit can participate in tenders of higher value?
