Senate Bill 1106 (Senate Revenue And Taxation Committee), as enacted on October 3, 1997, made the following changes to California law:
SUBJECT: Court-Ordered Debt Collection, Information Reporting, Operative Date, Financial Corporation Offsets, Apportioning Reference Correction, Interest on Overpayment, Reference Correction, Redundant Reference, SB 38 Clean-up, California Qualified Stock Options, Zone NOL Carryover, Half Month Periods
Section 30 of the Business and Professions Code is amended.
This act corrects a reference to the Revenue and Taxation Code (R&TC) to reflect the renumbering of Section 19276 to Section 19528 in prior legislation. This is a technical correction and is reflective of current law. (Related Section - 1666.5 of the Insurance Code)
Section 1666.5 of the Insurance Code is amended.
This act corrects a reference to R&TC to reflect the renumbering of Section 19276 to Section 19528 in prior legislation. This is a technical correction and is reflective of current law. (Related Section - 30 of the Business and Professions Code)
Section 1203.1d of the Penal Code is amended.
This act treats court-ordered debts collected by the FTB consistently with installment payments made by an offender with respect to priorities of payments. (Related Sections - 19280, 19282, 19283, 19532)
Section 17053.49 of the Revenue and Taxation Code is amended.
This act removes the phrase "and as further amended" from the reference to the Standard Industrial Classification (SIC) Manual. This provision is consistent with SB 38 (Stats. 1996, Ch. 954) and applies to taxable years beginning on or after January 1, 1996. (Related Section 23649)
Section 17062 of the Revenue and Taxation Code is amended.
This act clarifies the definition of "qualified taxpayer" by defining "aggregate gross receipts, less returns and allowances," "gross receipts less returns and allowances" and "proportionate interest." The amendments also modified the AMT rules regarding California Qualified Stock Options (CQSOs) by requiring the difference between the stock's fair market value when it was purchased and the option price to be an item of adjustment. Thus, re-enacting the provisions of AB 3194 "chaptered out" by SB 38. The changes made by this act to Section 17062 were "chaptered out" by SB 1233 (Stats. 1997, Ch. 612).
Section 17220 of the Revenue and Taxation Code is amended.
This act removes an unnecessary and redundant reference to Section 23097. This is a technical correction and is reflective of current law.
Section 17276.2 of the Revenue and Taxation Code is amended.
This act specifies that, in the case of an expired enterprise zone or Los Angeles Revitalization Zone (LARZ), the zone shall be deemed to remain in existence for purposes of computing the allowable NOL deduction. This provision shall apply to taxable years beginning on or after January 1, 1997. (Related Section - 24416.2)
Section 17502 of the Revenue and Taxation Code is amended.
This act clarifies the law relating to CQSOs by requiring corporations desiring to issue a CQSO to designate the option as a CQSO at the time the option is granted. This is a clarifying correction and is reflective of current law. (Related Section -17062)
Section 17570 of the Revenue and Taxation Code is amended.
This act changes the first taxable year of the five-year taxable or income year period for making required mark-to-market adjustments from the first year beginning on or after January 1, 1998, to the first year beginning on or after January 1, 1997. This provision is consistent with SB 38 (Stats. 1996, Ch. 954) and applies to taxable years beginning on or after January 1, 1996. (Related Section - 24710)
Section 17935 of the Revenue and Taxation Code is amended.
This act removes the provision of the section that provided relief from taxes and fees if the limited partnership was commencing business and did no business in California during its first taxable year and that taxable year was 15 days or less. (This provision was moved to Section 17936.) In addition, an unnecessary reference to "certificate of dissolution" was removed. This provision applies to taxable years beginning on or after January 1, 1997. (Related Sections - 17036 and 23114)
Section 17936 to the Revenue and Taxation Code is amended.
This act mirrors the statutory provisions for limited liability companies (LLCs) and limited liability partnerships (LLPs), thereby providing relief from the taxes and fees if the limited partnership, whether commencing or dissolving, did no business in California during its taxable year and that taxable year was 15 days or less. This provision applies to taxable years beginning on or after January 1, 1997. (Related Sections - 17035 and 23114)
Section 18633 of the Revenue and Taxation Code is amended.
This act provides that the department may prescribe the extent to which partner information must be included with the partnership return. This provision allows the department some discretion in determining the information that is needed, thus giving the department more latitude to consider the taxpayer's reporting burden when determining the extent of reporting partner information. This provision applies to returns filed on or after January 1, 1998.
Section 18633.5 of the Revenue and Taxation Code is amended.
This act provides that the department may prescribe the extent to which information must be included with the return (in the same manner as Section 18633) for consistency between requirements for like taxpayers. This provision applies to returns filed on or after January 1, 1998.
Section 19021 of the Revenue and Taxation Code is amended.
This act removes an obsolete reference to the credit allowable by Section 23184. This provision applies to income years beginning on or after January 1, 1998. However, Section 23184 has been inoperative since 1980.
Section 19024 of the Revenue and Taxation Code is amended.
This act removes an obsolete reference to the offset allowable by Section 23184. This provision applies to income years beginning on or after January 1, 1998. However, Section 23184 has been inoperative since 1980.
Section 19141.6 of the Revenue and Taxation Code is amended.
This act removes an obsolete reference to Section 18634. In addition, minor technical changes were made to delete commas and add section references for Subpart F of Part III of the Internal Revenue Code. This provision is operative on January 1, 1998. However, since Section 18634 was repealed, the penalty under Section 19141.6 for failure to comply with the requirements of Section 18634 has never been imposed.
The heading of Article 6 of Chapter 5 of Part 10.2 of Division 2 of the Revenue and Taxation Code is amended.
This act renumbers "Article 6" to "Article 5.5."
Section 19280 of the Revenue and Taxation Code is amended.
This act allows the state or counties to refer to FTB for collection court-ordered fees, assessments and other amounts, in addition to "fines, state or local penalties, forfeitures, restitution "tution orders." Department of Corrections or any other governmental entity authorized individual to FTB for collection, but only if the authorized governmental entity voluntarily agrees to refer the debt to FTB for collection and agrees to other administrative duties relating to account referrals and collection distributions.
This act also includes a change to allow taxpayers five additional calendar days to pay an amount due without accruing additional interest (15 calendar days instead of the current 10 calendar days) made by AB 713 (Stats. 1997, Ch. X). This change was made to prevent this act from chaptering out AB 713.
Section 19282 of the Revenue and Taxation Code is amended.
This act increases the Court-Ordered Debt (COD) collection program cost cap from 5% of collections to an amount not to exceed 15% of collections.
Section 19283 of the Revenue and Taxation Code is amended.
This act extends the COD collection program by three years (until January 1, 2002).
Section 19340 of the Revenue and Taxation Code is amended.
This act reflects that when an overpayment is credited against any amount due, any interest on that overpayment also will be credited against any amount due. The act also included a reference to "this part," which is the AFITL. This provision is operative January 1, 1998.
Section 19532 of the Revenue and Taxation Code is amended.
This act renumbers the section (relating to COD) to "Section 19533" and specifies that voluntary payments made by an obligated parent for a child support delinquency is not applied pursuant to the normal collection hierarchy but is applied solely to the child support delinquency for which the voluntary payment is made.
Section 23114 to the Revenue and Taxation Code is added.
This act mirrors the statutory provisions for limited liability companies (LLCs) and limited liability partnerships (LLPs), thereby providing relief from the taxes and fees if a corporation, whether commencing or dissolving, did no business in California during its income year and that income year was 15 days or less. This provision applies to income years beginning on or after January 1, 1997. (Related Sections - 17935 and 17936)
Section 23183.1 of the Revenue and Taxation Code is amended.
This act deletes obsolete references and provisions relating to Section 23184.
Section 23183.2 of the Revenue and Taxation Code is amended.
This act deletes obsolete references and provisions relating to Section 23184.
Sections 23184, 23184.5, 23185, 23185a and 23185b of the Revenue and Taxation Code are repealed.
This act repeals these sections as obsolete since the only tax that may be assessed against financial institutions is the in-lieu bank rate.
Section 23221 of the Revenue and Taxation Code is amended.
This act modifies the definition of "qualified new corporation" to include corporations that have exactly $1 million in gross receipts, less returns an allowances and to clarify that the 50% stock test applies.
This act does not require any reports by the department to the Legislature.