Bill Text: CA SB972 | 2019-2020 | 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 1-0)

Status: (Vetoed) 2020-09-29 - In Senate. Consideration of Governor's veto pending. [SB972 Detail]

Download: California-2019-SB972-Amended.html

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Amended  IN  Senate  May 29, 2020

Amended  IN  Senate  March 25, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill

No. 972

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Introduced by Senator Skinner

February 11, 2020

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An act to add Sections 19571.5 and 19573 to the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST

SB 972, as amended, Skinner. Corporation taxes: disclosure.

The Corporation Tax Law imposes a corporate franchise tax according to or measured by net income computed at a specified rate upon the basis of the net income for that taxable year, or a corporation income tax at a specified rate upon net income derived from sources within this state for that taxable year, on every corporation, except as provided. Existing law provides that it is a misdemeanor for the Franchise Tax Board or specified state employees to disclose or make known any information in a return, report, or document filed under income tax laws, but authorizes the Franchise Tax Board to disclose this information to specified agencies for specified purposes. Existing law makes any unwarranted disclosure or use of the information by those agencies a misdemeanor.

This bill would, on or before April 1, 2021, and on and before each April 1 thereafter, authorize and require that the Franchise Tax Board provide to the ____ Controller a list of all taxpayers subject to tax under the Corporation Tax Law, with gross receipts of $5,000,000,000 or more, as measured by gross receipts, less returns and allowances, for the taxable year reported on a return in the previous calendar year. The bill would require the list to include the name and tax liability of each taxpayer, the taxable year for which the return is filed, the total gross receipts for that taxable year, and the amount of credits claimed for that taxable year. The bill would require the ____to Controller to post the information provided by the Franchise Tax Board on its internet website by May 1, 2021, and each May 1 thereafter, in a list that includes specified information.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 19571.5 is added to the Revenue and Taxation Code, to read:

19571.5.

 (a) (1) Notwithstanding any other law, on or before April 1, 2021, and on or before each April 1 thereafter, the Franchise Tax Board shall provide to the ____ Controller a list of all taxpayers subject to tax under Part 11 (commencing with Section 23001), with gross receipts of five billion dollars ($5,000,000,000) or more, as measured by gross receipts, less returns and allowances, for the taxable year reported on a return in the previous calendar year. The list shall include the name and tax liability of each taxpayer, the taxable year for which the return is filed, the total gross receipts for that taxable year, and the amount of credits claimed for that taxable year.

(2) 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.

(b) For purposes of this section:

(1) “Credits claimed” means the amount of credits allowed under Part 11 (commencing with Section 23001) that are applied on the return for the taxable year used to offset the tax liability.

(2) “Tax liability” means the amount of tax owed, in a taxable year, as a result of the taxes imposed under Part 11 (commencing with Section 23001), and excluding overpayments, estimated tax payments, withholdings, and any other amounts paid.

(3) “Gross receipts” shall have the same meaning as set forth in Section 25120.

(c) The ____ Controller shall post the information provided by the Franchise Tax Board on its internet website by May 1, 2021, and each May 1 thereafter, in a list that includes all of the following:

(1) The entity’s taxpayer’s name listed on the tax return.

(2) The amount of tax liability of the entity taxpayer for the taxable year reported on a return in the previous calendar year.

(3) The total amount of credits claimed by the entity taxpayer for the taxable year reported on a return in the previous calendar year.

SEC. 2.

 Section 19573 is added to the Revenue and Taxation Code, to read:

19573.

 (a) The Franchise Tax Board may disclose to ____ the Controller identifying information of taxpayers appearing on the list published pursuant to Section 19571.5 for purposes of administering that section.

(b) “Identifying information” means all of the following:

(1) The name of the taxpayer.

(2) The identification number of the taxpayer.

(3) The taxable year for which the return is filed.

(4) The amount of credits claimed, as defined in paragraph (1) of subdivision (b) of Section 19571.5.

(5) The amount of tax liability, as defined in paragraph (2) of subdivision (b) of Section 19571.5.

(6) The total gross receipts for that taxable year, as defined in paragraph (3) of subdivision (b) of Section 19571.5.

(c) Neither the ____, Controller, nor any officer, employee, or agent, or former officer, employee, or agent of the ____, Controller, may disclose or use any information obtained from the Franchise Tax Board pursuant to this section except to administer Section 19571.5.