Legislative Update November 2018 Tax News

Assembly Bill (AB) 1817 (Chapter 37, Statutes of 2018) Modify the State Leadership Accountability Act (SLAA)

Among other things, AB 1817 requires state agencies subject to the SLAA, including the Franchise Tax Board (FTB), to expand the required biennial report to now include all identified inadequacies and weaknesses. Additionally, the due date for filing the required plan and schedule for correcting reported inadequacies and weaknesses with the Department of Finance is modified to June 30, subsequent to that report's filing date rather than concurrently.

AB 2096 (Chapter 206, Statutes of 2018) Organ and Tissue Donor Registry Voluntary Tax Contribution Fund

AB 2096 adds the Organ and Tissue Donor Registry Voluntary Tax Contribution Fund to the state personal income tax return.

AB 2184 (Chapter 388, Statutes of 2018) Cities & Counties Accept California Driver's License or ID Number

AB 2184 requires cities to accept a California driver's license or identification number, individual tax identification number, or municipal identification number in lieu of a social security number, in combination with other information as specified, for the issuance a city or county business license.

AB 2400 California Alzheimer's Disease and Related Dementia Research Voluntary Tax Contribution Fund (Chapter 299, Statutes of 2018)

AB 2400 allows the California Alzheimer's Disease and Related Dementia Research Voluntary Tax Contribution Fund to remain on the state personal income tax return until January 1, 2025.

AB 2503 Administrative Dissolution (Chapter 679, Statutes of 2018)

AB 2503 allows administrative dissolution for certain domestic corporations and domestic limited liability companies.

AB 2944 (Chapter 441, Statutes of 2018) Schools Not Prisons Voluntary Tax Contribution Fund

AB 2944 adds the Schools Not Prisons Voluntary Tax Contribution Fund to the state personal income tax return.

AB 3143 (Chapter 597, Statutes of 2018) Tax Preparation Act/CA Tax Education Council Can Enter Agreement with FTB.

AB 3143, among other things, allows the California Tax Education Council to provide reimbursement to FTB for assistance in carrying out enforcement activities consistent with the Tax Preparation Act.

AB 3249 (Chapter 649, Statutes of 2018) Court Ordered Debt/Include Amounts Imposed by Supreme Court & Amounts Due to State Bar.

Among other things, AB 3249 adds amounts imposed by the Supreme Court of the state of California for certain amounts due to the State Bar as a debt type that can be referred to the FTB Court Ordered Debt Collection Program. 

Senate Bill (SB) 274 (Chapter 729, Statutes of 2018) Reporting Federal Changes Imputed to a Partnership under the New Federal Audit Rules.

SB 274 generally requires that a partnership's federal election to either pay taxes resulting from an adjustment or push the adjustment out to its partners must make the same choice for California purposes. Additionally, under SB 274, partnerships are required to report changes or corrections on a federal partnership return to FTB within six months after the date of each final federal determination.

SB 343 (Chapter 887, Statutes of 2018) Carousel Housing Tract Cleanup Income Exclusion.

SB 343 excludes from gross income certain amounts received by taxpayers related to the remediation of the Carousel Housing Tract.

SB 855 (Chapter 52, Statutes of 2018) EITC/Hiring Credit/Tribal Income /California Competes Credit/Disclosure to Cities.

• Expands the California Earned Income Tax Credit by increasing the gross income limitations and revising the age limit of a qualified individual down from 25 years to 18 years of age.
• Extends the sunset date for the New Employment Credit to 2029.
• Extends the sunset date for the California Competes Tax Credit to 2030.
• Excludes earned income that is derived from sources within Indian Country from gross income for an eligible taxpayer.
• Makes permanent the Tax Data Exchange Agreement between FTB and eligible entities.

SB 871 (Chapter 54, Statutes of 2018) CA Motion Picture Credit/Qualified Expenditures and Wages Relating to Original Photography Outside Los Angeles Zone.

SB 871 creates a tax credit for certain costs related to the production of a motion picture in California.

SB 1363 (Chapter 359, Statutes of 2018) National Alliance on Mental Illness California Voluntary Tax Contribution Fund.

SB 1363 adds the National Alliance on Mental Illness California Voluntary Tax Contribution Fund to the state personal income tax return.