BILL NUMBER: SB 1534	CHAPTERED  09/28/04

	CHAPTER  844
	FILED WITH SECRETARY OF STATE  SEPTEMBER 28, 2004
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2004
	PASSED THE SENATE  AUGUST 24, 2004
	PASSED THE ASSEMBLY  AUGUST 19, 2004
	AMENDED IN ASSEMBLY  JUNE 21, 2004
	AMENDED IN SENATE  MAY 6, 2004

INTRODUCED BY   Senator Johnson

                        FEBRUARY 19, 2004

   An act to add Section 19582.5 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1534, Johnson.  Income tax forms.
   The Personal Income Tax Law, which is administered by the
Franchise Tax Board, imposes taxes upon the taxable income of
specified persons.
   This bill would provide that taxpayers whose total income, as
defined, is less than specified amounts shall have the option of
using Form 540 2EZ, as prepared by the Franchise Tax Board.
   This bill would require the Legislative Analyst, in consultation
with the Franchise Tax Board, to conduct a study and to report to the
Legislature, no later than January 1, 2008, on the impact of the
revised Form 540 2EZ on tax preparation and tax administration.



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


  SECTION 1.  Section 19582.5 is added to the Revenue and Taxation
Code, to read:
   19582.5.  (a) Notwithstanding any other law, a taxpayer filing as
either a single taxpayer or as a head of household whose total income
for the taxable year is one hundred thousand dollars ($100,000) or
less, and taxpayers filing a joint return or a taxpayer filing as a
qualifying widow or widower whose total income is two hundred
thousand dollars ($200,000) or less, shall have the option to use
Form 540 2EZ, or its successor form, as prepared by the Franchise Tax
Board, to reflect the provisions of this section.
   (b) For purposes of this section, "total income" means taxable
wages, dividends, interest, and pension income.
   (c) The Legislative Analyst, in consultation with the Franchise
Tax Board, shall conduct a study on the impact of the revised Form
540 2EZ and shall report to the Legislature, no later than January 1,
2008, on the following:
   (1) The number of filers using the revised Form 540 2EZ.
   (2) The effectiveness of the revised Form 540 2EZ in the
simplification of tax preparation for the taxpayers eligible to use
that form.
   (3) The impact the revised Form 540 2EZ has on the Franchise Tax
Board's administration of the Personal Income Tax Law (Part 10
(commencing with Section 17001)).
  SEC. 2.  It is the intent of the Legislature that this act is only
intended to adjust the income limitations that govern the use of the
Franchise Tax Board Form 540 2EZ, or its successor form.  It is the
intent of the Legislature that Form 540 2EZ, or its successor form,
should only be revised to allow those persons, who, but for the
existing income restrictions on the amount of, and the nature of, the
income received, would otherwise be eligible to use Form 540 2EZ.