CA AB1963

Repeals Section 38 of the Revenue and Taxation Code, eliminating an obsolete provision requiring a 2004 Legislative Analyst report.

Requires the Legislative Analyst's Office to submit a report to the Legislature by July 1, 2013 assessing potential changes to state income and sales and use tax laws to reduce revenue volatility.

Directs the report to include proposals for revenue-neutral tax reforms that do not require constitutional amendments, using dynamic revenue modeling where possible.

Requires analysis of reducing individual income taxation and imposing a new tax on services concurrent with reduced sales and use tax rates, including potential credits or exemptions for business-to-business service transactions.

Mandates evaluation of revenue impacts from excluding specific services from taxation, including medical, education, automotive repair, legal, accounting, agriculture, real estate, banking, and investment services.