Bill Text: CA AB1984 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income taxes: net operating losses: carrybacks: overpayments: estimated tax.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-05-23 - In committee: Set, second hearing. Held under submission. [AB1984 Detail]

Download: California-2013-AB1984-Amended.html

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BILL NUMBER: AB 1984	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 1, 2014

INTRODUCED BY   Assembly Member Harkey

                        FEBRUARY 19, 2014

   An act to amend Section  6051 of   19362 of,
and to add Sections 19022 and 19367 to,  the Revenue and
Taxation Code, relating to taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1984, as amended, Harkey.  Sales and use taxes.
  Income taxes: net operating losses: carrybacks:
overpayments: estimated tax.  
   The Personal Income Tax Law and the Corporation Tax Law, in
modified conformity to federal law, allow taxpayers to utilize net
operating losses and carryovers and carrybacks of those losses for
purposes of offsetting their tax liabilities. Existing law allows net
operating losses attributable to taxable years beginning on or after
January 1, 2013, to be carrybacks to each of the preceding 2 taxable
years, as provided. Federal income tax law includes procedures that
allow a taxpayer with net operating loss carrybacks to obtain a
tentative refund of taxes paid in prior tax years by filing a
tentative carryback adjustment application and allow a corporation to
apply to extend the time for payment of taxes for the immediately
preceding taxable year.  
   This bill would conform to those federal provisions.  
   Existing law provides for the establishment of the Franchise Tax
Board and prescribes its various powers and duties regarding the
administration of state personal income taxes and corporation
franchise and income taxes, including an authorization to prescribe
regulations providing for the crediting against the estimated tax of
the amount determined to be an overpayment of tax for a preceding
taxable year.  
   This bill would require the Franchise Tax Board to prescribe the
above-described regulations on or before January 1, 2016. 

   A provision of the Sales and Use Tax Law imposes a state sales tax
at a rate of 43/4% of the gross receipts of the retail sale of
tangible personal property in the state.  
   This bill would make technical, nonsubstantive changes to that
provision. 
   Vote: majority. Appropriation: no. Fiscal committee: no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 19022 is added to the 
 Revenue and Taxation Code   , to read:  
   19022.  (a) Section 6164 of the Internal Revenue Code, relating to
extension of time for payment of taxes by corporations expecting
carrybacks shall apply.
   (b) (1) Section 6164 of the Internal Revenue Code is modified by
substituting the phrase "Secretary or the Franchise Tax Board" for
the word "Secretary" in each place it appears.
   (2) Section 6164(a) of the Internal Revenue Code, relating to in
general, is modified by substituting the phrase "Part 11 (commencing
with Section 23001)" in lieu of the phrase "subtitle A".
   (3) Section 6164(b) of the Internal Revenue Code, relating to
contents of statement, is modified by substituting the phrase
"Section 24416.20" in lieu of the phrase "section 172(b)".
   (4) Section 6164(d)(2) of the Internal Revenue Code is modified by
substituting the phrase "Section 19367" in lieu of the phrase
"section 6411".
   (5) Section 6164(h) of the Internal Revenue Code, relating to
jeopardy, is modified as follows:
   (A) By substituting the phrase "he or the Franchise Tax Board" for
the word "he" in each place it appears.
   (B) By substituting the phrase "him or the Franchise Tax Board"
for the word "him" in each place it appears. 
   SEC. 2.    Section 19362 of the   Revenue
and Taxation Code   is amended to read: 
   19362.   (a)     The   On
or before January 1, 2016, the  Franchise Tax Board  is
authorized to   shall  prescribe regulations
providing for the crediting against the estimated tax for any taxable
year of the amount determined by the taxpayer or the Franchise Tax
Board to be an overpayment of the tax for a preceding taxable year.
   SEC. 3.    Section 19367 is added to the  
Revenue and Taxation Code   , to read:  
   19367.  (a) Section 6411 of the Internal Revenue Code, relating to
tentative carryback and refund adjustments, shall apply only to an
application for a tentative carryback adjustment of the tax for a
prior taxable years affected by a net operating loss carryback.
   (b) (1) Section 6411 of the Internal Revenue Code is modified by
substituting the phrase "Secretary or the Franchise Tax Board" for
the word "Secretary" in each place it appears.
   (2) Section 6411(a) of the Internal Revenue Code, relating to
application for adjustment, is modified as follows:
   (A) By substituting the phrase "Section 24416.20" in lieu of the
phrase "section 172(b)".
   (B) By substituting the phrase "Section 18621" in lieu of the
phrase "section 6065".
   (3) Section 6411(b) of the Internal Revenue Code, relating to
allowance of adjustments, is modified by substituting the phrase
"Section 19022" in lieu of the phrase "section 6164".  
  SECTION 1.    Section 6051 of the Revenue and
Taxation Code is amended to read:
   6051.  For the privilege of selling tangible personal property at
retail a tax is hereby imposed upon all retailers at the rate of 43/4
percent of the gross receipts of any retailer from the sale of all
tangible personal property sold at retail in this state.