Newsom Signs McNerney’s Bill to Make Tax Filing Easier

Filing tax returns is about to become easier in California, especially for taxpayers with small businesses, thanks to a new law, SB 711, by Sen. Jerry McNerney, D-Pleasanton, that Gov. Gavin Newsom signed today.

SB 711 makes it easier for California taxpayers to file their taxes by aligning numerous state tax requirements with federal requirements for the first time in a decade.

“Filing taxes can be overly complicated and confusing, especially when state and federal tax laws treat the same issues in different or opposite ways,” said Sen. McNerney, D-Pleasanton, who is chair of the Senate Revenue and Taxation Committee. “With the governor’s signing of SB 711, filing taxes in California is now easier, especially for taxpayers with small businesses.”

SB 711, which won overwhelming approval in the state Legislature, takes effect immediately. 

California has not enacted a comprehensive tax conformity law, aligning state tax law with federal law, since 2015. As a result, there are now more than 1,000 substantive differences between federal and state tax law.

SB 711 is a consensus measure and implements tax policy changes that are fiscally responsible and avoid policy disputes. The bill advances the state’s tax conformity date to Jan. 1, 2025, so it does not conform to any changes from the federal mega bill recently enacted by Congress.

The numerous tax conformity changes in SB 711 include making it easier to file taxes for those with IRA retirement plans, for first responders’ retirement and disability payments, and for divorced couples. The tax changes made by SB 711 are also expected to result in a modest increase in state revenues.

SB 711 was the product of years of painstaking work by the Senate Revenue and Taxation Committee.

Sen. Jerry McNerney’s 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.