Bill Text: CA AB2439 | 2011-2012 | Regular Session | Amended

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

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Bill Title: Corporation taxes: disclosure.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2012-08-31 - Ordered to inactive file at the request of Senator Leno. [AB2439 Detail]

Download: California-2011-AB2439-Amended.html

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BILL NUMBER: AB 2439	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 20, 2012
	AMENDED IN ASSEMBLY  MAY 25, 2012
	AMENDED IN ASSEMBLY  MAY 2, 2012
	AMENDED IN ASSEMBLY  APRIL 11, 2012

INTRODUCED BY   Assembly Member Eng
   (Coauthor: Assembly Member Skinner)

                        FEBRUARY 24, 2012

   An act to add Section 19573 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2439, as amended, Eng. Corporation taxes: disclosure.
   The Personal Income Tax Law and the Corporation Tax Law impose
taxes on, or measured by, income. Existing law requires the Franchise
Tax Board to make available as a matter of public record each
calendar year a list of the 250 largest tax delinquencies in excess
of $100,000, and requires the list to include specified information
with respect to each delinquency.
   This bill would, on  and after specified dates 
 or before December 1, 2013, and annually thereafter  ,
require  that  the Franchise Tax Board  to make
available, upon request, specified corporation tax liability and
income apportionment information disclosed by specified corporations
  publish a list of the 1,500 largest corporate
taxpayers per taxable year, including each taxpayer's tax liability
and income apportionment information, as provided  . This bill
would also make findings and declarations regarding the intent of the
Legislature.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Publicly traded corporations are required to disclose their
federal and state corporation taxes to the federal Securities and
Exchange Commission through the Form 10-K. State corporation taxes,
however, are aggregated without regard to state, so the information
available at the federal level does not specify corporation taxes of
particular states.
   (b) Recent changes in the state's Corporation Tax Law, which
provide for the elective use of single-sales factor apportionment,
combined with other provisions in this area of tax law, have had
little analysis and scrutiny with regard to their impact on taxpayers
and California.
   (c) Therefore, it is the intent of the Legislature, in adding
Section 19573 to the Revenue and Taxation Code, to supplement federal
tax reporting requirements for those corporations filing a Form 10-K
by  adding a single data point that would be available to
the public upon request. This single data point would disclose the
amount of specified tax liability of those corporations that are
already required to disclose their federal and aggregate state
corporation taxes   requiring the Franchise Tax Board to
publish a list of the 1,500 largest corporate taxpayers filing a
Form 10-K  .
   SEC. 2.    Section 19573 is added to the  
Revenue and Taxation Code   , to read:  
   19573.  (a) (1) (A) Notwithstanding any other law, on or before
December 1, 2013, and each December 1 thereafter, the Franchise Tax
Board shall publish on its Internet Web site a list of the 1,500
largest taxpayers subject to tax under Part 11 (commencing with
Section 23001), as measured by gross receipts, less returns and
allowances, that filed a Form 10-K with the federal Securities and
Exchange Commission for that taxable year. The list shall include the
name and tax liability of each taxpayer and whether the taxpayer
made an election to apportion its income in accordance with Section
25128.5.
   (B) The determination of the taxpayers to be included on a list
shall be based on timely filed original tax returns for the taxable
year at issue. In the case of a taxpayer that is included in a
combined report, the determination to include that taxpayer on a list
shall be based on the gross receipts, less returns and allowances,
of the combined reporting group.
   (2) The list published on or before December 1, 2013, shall
reflect the tax liability, as of October 1, 2013, for the 2010 and
2011 taxable years. Each subsequent annual list shall reflect the tax
liability for the taxable year that closed two years before the
publication of the list.
   (3) For two years after the publication of a list, the Franchise
Tax Board shall, on or before December 1, update that list to reflect
any changes in the tax liability of each taxpayer as of October 1 of
that year.
   (b) For purposes of this section:
   (1) "Tax liability" means the amount of tax owed as a result of
the taxes imposed under Part 11 (commencing with Section 23001),
after the application of any credits and excluding overpayments,
estimated tax payments, withholding, and any other amounts paid.
   (2) "Gross receipts" shall have the same meaning as set forth in
Section 25120.  
  SEC. 2.    Section 19573 is added to the Revenue
and Taxation Code, to read:
   19573.  (a) (1) On and after September 1, 2014, the Franchise Tax
Board shall make available, upon request, information regarding the
tax liability of each corporation that is required to file an annual
Form 10-K with the federal Securities and Exchange Commission. The
information made available upon request shall be the tax liability
for a specified corporation with respect to the taxes imposed by Part
11 (commencing with 23001) for the taxable year that closed two
years before the request made pursuant to this subdivision and
whether the corporation made an election to apportion its income in
accordance with Section 25128.5 for that taxable year.
   (2) On or before September 1, 2013, the Franchise Tax Board shall
make available, upon request, information regarding the tax liability
of each corporation that is required to file an annual Form 10-K
with the federal Securities and Exchange Commission. The information
made available upon request shall be the tax liability with respect
to the taxes imposed by Part 11 (commencing with 23001) for the 2010
and 2011 taxable years and whether the corporation made an election
to apportion its income in accordance with Section 25128.5 for the
2011 taxable year.
   (b) If the tax liability amount is contested or otherwise under
dispute, by either the taxpayer subject to the taxes imposed pursuant
to Part 11 (commencing with Section 23001) or the Franchise Tax
Board, the Franchise Tax Board shall so indicate in its response to a
request for information regarding the tax liability of a
corporation.
   (c) For purposes of this section, "tax liability" means the amount
of tax owed after the application of any credits and excluding
overpayments, estimated tax payments, withholding, or amounts paid
with an extension of time to file tax return.