Newsom signs three laws affecting California taxes, retirement, and contractor licenses

California Governor Gavin Newsom has signed three new pieces of legislation that will alter regulations concerning local taxation, public employee retirement benefits, and contractor licensing.

The laws, SB 762, SB 939, and SB 1165, were enacted on August 17. SB 762 grants specific jurisdictions the authority to implement transaction and use taxes that may surpass the current statewide limit. This measure could provide local governments with additional revenue streams.

SB 939 focuses on public employees, particularly those contributing to the California Public Employees' Retirement System (CalPERS). This law revises rules regarding service credits, which can affect retirement calculations and benefits for public sector workers starting in 2028.

Additionally, SB 1165 addresses the licensing requirements for contractors. It updates the existing framework to account for certain tax obligations, aiming to ensure compliance and potentially streamline processes for businesses operating within the state's construction industry.