Ventura County Taxpayers Association — 2026 New CA Laws

NEW CALIFORNIA LAWS FOR 2026

Affordability for Ventura County residents will be the focus of most people’s attention this year. Although we have identified no new countywide taxes or major local sales tax changes for 2026, many of the new laws impose mandates that raise living costs without direct taxpayer approval.

Several new state laws and adjustments take effect in 2026 that will impact your wallet—through higher costs, increased business expenses (often passed to consumers), or direct taxpayer-funded programs.

The Ventura County Taxpayers Association (VCTA) is committed to promoting wise use of public funds and opposing unnecessary burdens on residents and businesses. While Sacramento introduced no significant new statewide taxes, hidden costs from mandates and extensions could raise prices and strain household budgets.

Of the hundreds of new laws that affect everything from tortillas to AI chatbots, here are the key changes effective January 1, 2026, with direct or indirect impacts on Ventura County taxpayers’ wallets:

• Minimum Wage Rise: The state minimum wage increases to $16.90 per hour (from $16.50). Exempt employee salary threshold rises to $70,304 annually.

• Higher payroll costs for businesses may lead to increased prices for goods/services and potential job impacts.

• Higher wages contribute to broader inflation in labor-intensive sectors such as retail, agriculture, and hospitality—key sectors in Ventura County.

Hidden Gas and Energy Costs

• Cap-and-Trade Extension (AB 1207): Program extended to 2046, potentially adding up to 43 cents per gallon at the pump through carbon allowances.

• Directly raises fuel costs for commuters, farmers, truck drivers, and businesses in our county.

• Complete Plastic Bag Ban (SB 1053): All plastic film bags banned at grocery/check-out; only recycled paper bags allowed (stores may charge 10-25 cents each).

• New Battery-Embedded Waste Recycling Fee: Fee on products with embedded batteries (e.g., electronics, tools, toys, greeting cards) to fund recycling.

• New Carryout Bag Fee: Additional statewide fee on bags at retail.

Business and Tax Compliance Changes

• Pass-Through Entity (PTE) Tax Extension (SB 132): Extended to 2030 with expanded eligibility.

• Qualifying partnerships, S corporations, and LLCs can choose to pay a 9.3% tax on their net income at the business level. This gives owners a credit on their personal income taxes and helps bypass the federal SALT deduction cap. Starting in 2026, if June 15 prepayments are late or underpaid, the election is still allowed but the credit is reduced by 12.5% of the shortfall.

• Intangible Asset Sales Rules: New Franchise Tax Board guidelines for apportioning income from intangibles.

• These new rules could change which businesses in California have to pay more taxes. Money from selling or licensing intangible assets (like stock, partnerships, goodwill, or patents) will now be taxed in California if the customer uses the asset here. The rules include detailed steps, like checking contracts or records, and special guidelines for selling a business. This may increase or shift taxes for companies that do business in more than one state.

Other Statewide Laws

• Overdraft Fee Caps (SB 1075): Credit unions limited to $14 per overdraft/NSF fee (aligns with banks). Reduces banking costs for consumers facing overdrafts.

• Insulin Co-Pay Cap (SB 40): Large health plans cap at $35 for a 30-day supply; state CalRx insulin at $11/pen (max $55/five-pack). Lowers out-of-pocket healthcare costs for diabetics.

• Vehicle Purchase Protections (SB 766, AB 1374): Allows 3-day returns on used vehicles (with a restocking fee); requires complete price disclosure and a total estimate including taxes/fees for rentals. Reduces surprise costs for buyers.

• Parking Ticket Relief (AB 1299): Reduces/waives fines for homelessness or hardship and allows payment plans. Lowers financial burdens for low-income drivers.

• Self-Storage Fee Disclosure (SB 709): Requires disclosure of promotional rates, potential changes, and maximum fees in the first 12 months. Prevents surprise rent hikes for storage users.

• Home Improvement Contract Cancellation (AB 1327): Allows property owners to cancel by email/phone. Eases exiting bad contracts, potentially stopping unwanted services.

• Rental Appliance Requirements (AB 628): Landlords must provide working stoves and refrigerators (or allow tenant-provided appliances); repair recalled appliances. May increase landlord costs, potentially raising rents; benefits tenants with included appliances.

• Tenant Eviction Protection (AB 246): Prevents eviction for rent non-payment due to delayed/terminated Social Security.

• Rideshare Insurance Reduction (SB 371): Lowers minimum coverage for underinsured drivers from $1M to $300K per incident. May reduce premiums for rideshare companies, potentially lowering fares but increasing risk for passengers and drivers.

• Immigrant Youth Legal Aid (AB 1261): State will fund legal counsel for deportation cases if the federal government doesn’t, up to $77M cost. Taxpayers are funding the aid, potentially increasing indirect tax pressure for public services.

• Insurer Coverage for Home Loss (SB 495): Requires 60% of personal property limit (up to $350K) for total loss. Improves financial recovery for insured homeowners post-disaster.

Ventura County-Specific Laws

• Medi-Cal Eligibility Changes: Reinstate asset limits ($130K per individual + $65K per additional member, exemptions for home/vehicle); undocumented adults limited to restricted coverage. May reduce county healthcare spending (taxpayer savings) but increase out-of-pocket costs for affected residents. Applies to new applicants immediately, and existing customers at renewal.

• Overnight Parking/Camping Ban Near Farmland: Prohibits on 280+ county roads in unincorporated areas; $250K taxpayer cost for signs/outreach. Enforcement via sheriff (fines up to $1K or jail); protects agriculture but adds enforcement expenses, potentially affecting local budgets/taxes.

Potential Future Tax Threat in 2026

• Billionaire Net Worth Tax Initiative: Proposal for a one-time 5% tax on net worth over $1B (as of Jan. 1, 2026), potentially on the November 2026 ballot. If passed, it could drive high earners out of state, taking their tax revenue with them, reducing future funds for local services.

Assessing the Impact of New Tax Proposals in the 2026 Election on Ventura County

2026 is an election year, and we are working with various agencies throughout the County to assess new potential tax increases and proposed bond measures that will be on the November ballot. We remain steadfast in providing Ventura County taxpayers with a comprehensive voter guide for the election.

Join the Club and get involved!

About the Ventura County Taxpayers Association (VCTA)

Formed in 1954, The Ventura County Taxpayers Association is a 501(c)4 nonprofit organization dedicated to a non-partisan, fact-finding mission, emphasizing issues that affect Ventura County. We inform taxpayers, promote the wise use of public funds, oppose waste, advise public officials regarding issues of concern to taxpayers and recommend positions that will best serve the taxpayers’ interests. Our number one goal is to promote the wise use of public money and to oppose waste.

Ventura County Taxpayers Association

PO Box 3878

Ventura, CA 93006

info@vcta.org | vcta.org