California’s multi-billion dollar budget crisis is the reason behind so many recent taxation issues and proposed legislation. Governor Gray Davis recently proposed in his January 10, 2003 Budget Address, to increase the state sales and use tax rate by 1% and other tax increases to help bridge the state’s fiscal year 2003-2004 budget gap. Other ideas to address the budget deficit include proposals for local tax restructuring. The state is considering expanding the current sales tax base to include services, and adopting reforms to promote collection of use tax on remote sales. Also, rather than the situs of the retailer, the distribution of sales tax revenues on the basis of population would be used to reward localities for building housing, not stores. (California Commission on Tax Policy in the New Economy Meeting, Sacramento, California, February 24, 2003, Ch. 619 (S.B. 1933))