CA SB1445

Establishes legislative findings that California's tax system is outdated and over-reliant on personal income tax from top earners, causing revenue instability that harms essential services.

Creates the Retail Sales Tax on Services Fund in the State Treasury to receive revenues from a proposed modest sales tax on services.

States legislative intent to make three tax code changes: provide tax relief to middle- and low-income Californians, broaden the tax base by imposing sales tax on services (with exemptions for health care, education, child care, rent, interest, and very small businesses), and reduce corporate income tax on small businesses.

Declares that funds in the Services Tax Fund would be appropriated to offset the sales tax on services for middle- and low-income families, stabilize infrastructure and education funding, and support small businesses.

Requires all tax payments under the new chapter to be transmitted to the State Treasurer for deposit into the Retail Sales Tax on Services Fund after deducting refunds and administrative costs.