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Governor Pulls Out Veto Pen To Nix Tax Break Bill Package

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Sacramento, CA – Arguing that it would cost the state over $300 million through the next fiscal year, the Governor has vetoed seven bills.

The package of bills nixed by the Governor Jerry Brown Tuesday he described as supporting new tax breaks or expanding on existing ones. The Governor explained that his decision was key to both maintaining the state’s fiscal stability and budget in balance.

Brown stated, “As I said last year, tax breaks are the same as new spending – they both cost the General Fund money. As such, they must be considered during budget deliberations so that all spending proposals are weighed against each other at the same time. This is even more important when the state’s budget remains precariously balanced. Therefore, I cannot sign these measures.”

Among the legislation Brown refused to enact are AB 717 and AB 1561, which would have ended the California sales tax on diapers and feminine hygiene products; SB 907 that sought to provide mortgage debt forgiveness for homeowners through tax relief; AB 2728, allowing tax credits for a variety of community development-related investments; and AB 2127, providing tax breaks on certain motor vehicle fuels. Two more, SB 898 and AB 724 would have respectively excluded from state sales taxes animal blood sold by nonprofit animal blood banks for animal medical treatments and items purchased by certain museums solely for display purposes.