Report: State Leaders Reach Budget Agreement

A Sacramento newspaper is reporting that the governor and state legislative leaders have crafted a tentative agreement on the state's budget.

The Sacramento Bee is reporting that multiple tax hikes are in the works for residents. Californians should get ready for:

  • Increasing the state's sales tax by 1 cent on the dollar
  • Increasing gasoline taxes by 12 cents per gallon
  • Raising the state's vehicle license fee from 0.65 percent of a vehicle's value to 1.15 percent, with 1 percent going to the general fund and local law enforcement getting 0.15 percent
  • Increasing the personal income tax across the board, either by assessing a surcharge on tax liability or increasing the tax rate

The sales, income and VLF components would be in effect for either two years or five years, depending on whether a companion spending-cap measure passes.

The paper reported that final details are still being hammered out but a vote is expected on Friday.

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