Bill Text: CA AB167 | 2023-2024 | Regular Session | Amended
Bill Title: Taxation.
Spectrum: Committee Bill
Status: (Engrossed) 2024-07-01 - Re-referred to Com. on B. & F.R. [AB167 Detail]
Download: California-2023-AB167-Amended.html
Amended
IN
Senate
June 08, 2024 |
Amended
IN
Assembly
February 01, 2023 |
Introduced by Committee on Budget (Assembly Members |
January 09, 2023 |
LEGISLATIVE COUNSEL'S DIGEST
This bill would express the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2023.
Digest Key
Vote:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 11340.9 of the Government Code is amended to read:11340.9.
This chapter does not apply to any of the following:SEC. 2.
Section 25299.81 of the Health and Safety Code is amended to read:25299.81.
(a) Except as provided in subdivisions (b) and (c), this chapter shall remain in effect only until January 1, 2036, and as of that date is repealed.(5)
(6)
(7)
SEC. 3.
Section 42882 of the Public Resources Code is repealed.In carrying out this chapter, the board may solicit and use any and all expertise available in other state agencies, including, but not limited to, the State Board of Equalization, and, where an existing state agency performs functions of a similar nature to the board’s functions, the board may contract with, or cooperate with that agency in carrying out this chapter. If the board contracts with the State Board of Equalization to collect the fee imposed in Section 42885, the State Board of Equalization may collect that fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code).
SEC. 4.
Section 42885 of the Public Resources Code, as amended by Section 20 of Chapter 355 of the Statutes of 2022, is amended to read:42885.
(a) For purposes of this section, “California tire fee” means the fee imposed pursuant to this section.SEC. 5.
Section 42885 of the Public Resources Code, as amended by Section 21 of Chapter 355 of the Statutes of 2022, is amended to read:42885.
(a) For purposes of this section, “California tire fee” means the fee imposed pursuant to this section.SEC. 6.
Section 42886.1 of the Public Resources Code is amended to read:42886.1.
(a) TheSEC. 7.
Section 42889 of the Public Resources Code, as amended by Section 22 of Chapter 355 of the Statutes of 2022, is amended to read:(1) (2)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) of Section 42885. (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)42889.
(a) All revenues, interest, and penalties derived from the California Tire Fee, less refunds and reimbursement to the California Department of Tax and Fee Administration for expenses incurred in the administration and collection of the fee imposed by this article, shall be deposited as follows:(a)Of the moneys collected pursuant to Section 42885, an An amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by in the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in Section 42885 is imposed.(b) used deposited in the California Tire Recycling Management Fund to fund the waste tire program, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes: (c)
SEC. 8.
Section 42889 of the Public Resources Code, as amended by Section 23 of Chapter 355 of the Statutes of 2022, is amended to read:(a)Of the moneys collected pursuant to Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in Section 42885 is imposed.
(b)The remaining moneys collected pursuant
42889.
(a) All revenues, interest, and penalties derived from the California tire fee, less refunds and reimbursement to(2)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) of Section 42885.
(3)
(4)
(5)
(6)To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.
(7)To assist in developing markets and new technologies for used tires and waste tires. The department’s expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.
(8)To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).
(9)To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).
(10)To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.
(11)
(12)
(c)
SEC. 9.
Section 6055 of the Revenue and Taxation Code is amended to read:6055.
(a) (1) A retailer is relieved from liability for sales tax that became due and payable, insofar as the measure of the tax is represented by accounts that have been found to be worthless and charged off for income tax purposes by the retailer or, if the retailer is not required to file income tax returns, charged off in accordance with generally accepted accounting principles. A retailer that has previously paid the tax may, under rules and regulations prescribed by theSEC. 10.
Section 6055 is added to the Revenue and Taxation Code, to read:6055.
(a) A retailer is relieved from liability for sales tax that became due and payable, insofar as the measure of the tax is represented by accounts that have been found to be worthless and charged off for income tax purposes by the retailer or, if the retailer is not required to file income tax returns, charged off in accordance with generally accepted accounting principles. A retailer that has previously paid the tax may, under rules and regulations prescribed by the department, take as a deduction the amount found worthless and charged off by the retailer. If these accounts are thereafter in whole or in part collected by the retailer, the amount collected shall be included in the first return filed after the collection and the tax shall be paid with the return.SEC. 11.
Section 6203.5 of the Revenue and Taxation Code is amended to read:6203.5.
(a) (1) A retailer is relieved from liability to collect use tax that became due and payable, insofar as the measure of the tax is represented by accounts that have been found to be worthless and charged off for income tax purposes by the retailer or, if the retailer is not required to file income tax returns, charged off in accordance with generally accepted accounting principles. A retailer that has previously paid the amount of the tax may, under rules and regulations prescribed by theSEC. 12.
Section 6203.5 is added to the Revenue and Taxation Code, to read:6203.5.
(a) A retailer is relieved from liability to collect use tax that became due and payable, insofar as the measure of the tax is represented by accounts that have been found to be worthless and charged off for income tax purposes by the retailer or, if the retailer is not required to file income tax returns, charged off in accordance with generally accepted accounting principles. A retailer that has previously paid the amount of the tax may, under rules and regulations prescribed by the department, take as a deduction the amount found worthless and charged off by the retailer. If these accounts are thereafter in whole or in part collected by the retailer, the amount collected shall be included in the first return filed after the collection and the amount of the tax shall be paid with the return.SEC. 13.
Section 6902.5 of the Revenue and Taxation Code is amended to read:6902.5.
(a) For the purposes of this section:(g)
(h)
(i)
(j)
(k)
SEC. 14.
Section 7103 of the Revenue and Taxation Code is amended to read:7103.
(a) For purposes of this section:(2)
(h)On or before January 1, 2027, and annually thereafter, a city or county that receives money from the fund shall deliver a report to the department regarding how that money is being used.
(i)
(j)
SEC. 15.
Section 17039.4 is added to the Revenue and Taxation Code, to read:17039.4.
(a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2024, and before January 1, 2027, the total of all business credits otherwise allowable under any provision of Chapter 2 (commencing with Section 17041), including the carryover of any business credit under a former provision of that chapter, for the taxable year shall not reduce the “net tax,” as defined in Section 17039, by more than five million dollars ($5,000,000).SEC. 16.
Section 17052.1 of the Revenue and Taxation Code is amended to read:17052.1.
(a) (1) For each taxable year beginning on or after January 1, 2019, there shall be allowed against the “net tax,” as defined by Section 17039, a young child tax credit to a qualified taxpayer, in an amount as determined under paragraph (2).SEC. 17.
Section 17052.2 of the Revenue and Taxation Code is amended to read:17052.2.
(a) (1) For each taxable year beginning on or after January 1, 2022, there shall be allowed against the “net tax,” as defined by Section 17039, a foster youth tax credit to a qualified taxpayer, in an amount as determined under paragraph (2).SEC. 18.
Section 17052.8 of the Revenue and Taxation Code is amended to read:17052.8.
For each taxable year beginning on or after January 1, 1996, and before January 1, 2024, there shall be allowed as a credit against the “net tax” (as defined by Section 17039) an amount determined as follows:SEC. 19.
Section 17209 of the Revenue and Taxation Code is amended to read:17209.
(a) For each taxable year beginning on or after January 1, 2020, and before January 1,SEC. 20.
Section 17260 of the Revenue and Taxation Code is amended to read:17260.
(a) No deduction, other than depreciation, shall be allowed for expenditures for tertiary injectants as provided by Section 193 of the Internal Revenue Code.SEC. 21.
Section 17275.5 of the Revenue and Taxation Code is amended to read:17275.5.
(a) No deduction shall be denied under Section 170(f)(8) of the Internal Revenue Code, relating to substantiation requirement for certain contributions, upon a showing that the requirements in Section 170(f)(8) of the Internal Revenue Code have been met with respect to that contribution for federal purposes.SEC. 22.
Section 17275.6 is added to the Revenue and Taxation Code, to read:17275.6.
(a) For contributions made on or after January 1, 2024, the amendments made by Section 605(a)(1) of Public Law 117-328 adding paragraph (7) to Section 170(h) of the Internal Revenue Code, relating to limitation on deduction for qualified conservation contributions made by passthrough entities, shall apply, except as otherwise provided.SEC. 23.
Section 17276.24 is added to the Revenue and Taxation Code, to read:17276.24.
(a) Notwithstanding Sections 17276, 17276.1, 17276.4, 17276.7, and 17276.22, Sections 17276.2, 17276.5, and 17276.6, as those sections read on November 29, 2014, Section 17276.20, as that section read on December 31, 2015, and Section 172 of the Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2024, and before January 1, 2027.SEC. 24.
Section 17681 of the Revenue and Taxation Code is amended to read:17681.
(a) Subchapter I of Chapter 1 of Subtitle A of the Internal Revenue Code, relating to natural resources, shall apply, except as otherwise provided.SEC. 25.
Section 17681.3 of the Revenue and Taxation Code is repealed.The amendments made to Section 613A(d)(4) of the Internal Revenue Code, relating to certain refiners excluded, by Section 1328 of the Energy Tax Incentives Act of 2005 (Title XIII of the Energy Policy Act of 2005, Public Law 109-58), shall not apply.
SEC. 26.
Section 17681.6 of the Revenue and Taxation Code is repealed.Section 613A(c)(6)(H) of the Internal Revenue Code, relating to temporary suspension of taxable income limit with respect to marginal production, shall not apply.
SEC. 27.
Section 18416.5 of the Revenue and Taxation Code is amended to read:18416.5.
(a) The Franchise Tax Board may, by regulation, implement an alternative communication method that would allow the Franchise Tax Board, at the request of the taxpayer or the taxpayer’s authorized representative, to provide notification to the taxpayer in a preferred electronic communication method designated by the taxpayer that a notice, statement, bill, or other communication required or authorized under Part 10 (commencing with Section 17001), this part, or Part 11 (commencing with Section 23001) is available for viewing in the taxpayer’s limited access secure folder on the Franchise Tax Board’s(c)This section shall cease to be operative with respect to a notice, statement, bill, protest, or other communication between the Franchise Tax Board and a taxpayer on or after January 1, 2025, and is, as of that date, repealed. The repeal of this section shall not be interpreted or applied to invalidate any notice, statement, bill, protest, or other communication between the Franchise Tax Board and a taxpayer prior to that date using the alternative communication method authorized by this section prior to its repeal.
(d)
SEC. 28.
Section 18572 of the Revenue and Taxation Code is amended to read:18572.
(a) Section 7508A of the Internal Revenue Code, relating to postponement of certain tax-related deadlines, shall apply, except as otherwise provided.SEC. 29.
Section 19164 of the Revenue and Taxation Code is amended to read:19164.
(a) (1) (A) An accuracy-related penalty shall be imposed under this part and shall be determined in accordance with Section 6662 of the Internal Revenue Code, relating to imposition of accuracy-related penalty on underpayments, except as otherwise provided.(b)
(c)
(d)
(e)
(f)
(g)
(h)
SEC. 30.
Section 19187 of the Revenue and Taxation Code is amended to read:19187.
(a) The Franchise Tax Board shall include with each notice imposing a penalty under this part information that contains the name of the penalty, the section of this part under which the penalty is imposed, and a description of the computation of the penalty. Upon the request of the taxpayer, the Franchise Tax Board shall also provide a computation of the penalty imposed.(B)
(C)
SEC. 31.
Section 19378 of the Revenue and Taxation Code is amended to read:19378.
(a) The Franchise Tax Board shall determine the amount of the contracting costs incurred under Section 19377 and notify the Controller of that amount which shall be transferred from the Personal Income Tax Fund or the Corporation Tax Fund to the Delinquent Tax Collection Fund, which is hereby created.SEC. 32.
Section 23036 of the Revenue and Taxation Code is amended to read:23036.
(a) (1) The term “tax” includes any of the following:SEC. 33.
Section 23036.4 is added to the Revenue and Taxation Code, to read:23036.4.
(a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2024, and before January 1, 2027, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the “tax,” as defined in Section 23036, by more than five million dollars ($5,000,000).SEC. 34.
Section 23604 of the Revenue and Taxation Code is amended to read:23604.
For each taxable year beginning on or after January 1, 1996, and before January 1, 2024, there shall be allowed as a credit against the “tax” (as defined by Section 23036) an amount determined as follows:SEC. 35.
Section 24357 of the Revenue and Taxation Code is amended to read:24357.
(a) There shall be allowed as a deduction any charitableSEC. 36.
Section 24416.24 is added to the Revenue and Taxation Code, to read:24416.24.
(a) Notwithstanding Sections 24416, 24416.1, 24416.4, 24416.7, and 24416.22, former Sections 24416.2, 24416.5, 24416.6, and 24416.20, and Section 172 of the Internal Revenue Code, a net operating loss deduction shall not be allowed for any taxable year beginning on or after January 1, 2024, and before January 1, 2027.SEC. 37.
Section 24423 of the Revenue and Taxation Code is repealed.(a)Notwithstanding Section 24422, regulations shall be prescribed by the Franchise Tax Board under this part corresponding to the regulations which granted the option to deduct as expenses intangible drilling and development costs in the case of oil and gas wells and which were recognized and approved by the Congress in House Concurrent Resolution 50, Seventy-ninth Congress.
(b)The provisions of Section 263(i) of the Internal Revenue Code, relating to special rules for intangible drilling and development costs incurred outside the
United States, shall apply to costs paid or incurred after December 31, 1986.
SEC. 38.
Section 24831 of the Revenue and Taxation Code is amended to read:24831.
(a) Subchapter I of Chapter 1 of Subtitle A of the Internal Revenue Code, relating to natural resources, shall apply, except as otherwise provided.SEC. 39.
Section 24831.3 of the Revenue and Taxation Code is repealed.The amendments made to Section 613A(d)(4) of the Internal Revenue Code, relating to certain refiners excluded, by Section 1328 of the Energy Tax Incentives Act of 2005 (Title XIII of the Energy Policy Act of 2005) (Public Law 109-58) shall not apply.
SEC. 40.
Section 24831.6 of the Revenue and Taxation Code is repealed.Section 613A(c)(6)(H) of the Internal Revenue Code, relating to temporary suspension of taxable income limit with respect to marginal production, shall not apply.
SEC. 41.
Section 25128.9 is added to the Revenue and Taxation Code, to read:25128.9.
(a) The Legislature finds and declares all of the following:SEC. 42.
Section 50108 of the Revenue and Taxation Code is amended to read:50108.
(a) The fee imposed pursuant to Sections 25299.41 and 25299.43 of the Health and Safety Code shall be administered and collected by the California Department of Tax and Fee Administration in accordance with this part.SEC. 43.
Section 8163 of the Welfare and Institutions Code is amended to read:8163.
Notwithstanding any other law, the state may contract with a third-party vendor for services relating to the distribution of payments made pursuant to this chapter in the form and manner best determined to expedite payment and mitigate fraud. A contract for services entered into pursuant to this section may include terms and conditions that are in the state’s best interest, but shall include an expiration date on each form of payment issued of no later than April 30, 2026, and a requirement that any unexpended or unclaimed balance of the payments issued shall, upon expiration, be returned to theSEC. 44.
It is the intent of the Legislature to hereby supersede or overrule, as applicable, the State Board of Equalization’s Memorandum Opinion “In the Matter of the Claim for Refund Under the Sales and Use Tax Law of WFS Financial, Inc.” (December 14, 2000).SEC. 45.
It is the intent of the Legislature to enact legislation to do the following:SEC. 46.
The provisions of this act are severable. If any provision of this act or the application thereof to any person or circumstance is held invalid, that invalidity shall not affect other provisions or applications of the act that can be given effect without the invalid provision or application.SEC. 47.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.SEC. 48.
This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.It is the intent of the Legislature to enact statutory changes, relating to the Budget Act of 2023.