BILL NUMBER: AB 2114	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 1, 2008
	AMENDED IN ASSEMBLY  APRIL 28, 2008

INTRODUCED BY   Assembly Members Villines and Ma

                        FEBRUARY 20, 2008

   An act relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2114, as amended, Villines. The Corporation Tax Law: allocation
and apportionment.
   The Corporation Tax Law imposes taxes measured by income and, in
the case of a business with income derived from, or attributable to,
sources both within and without this state, apportions the income
between this state and other states and foreign countries in
accordance with a specified 4-factor formula, except as otherwise
provided.
   This bill would  declare the Legislature's intent to enact
legislation that would, for purposes of apportionment of income in
computing income taxes of apportioning trades or businesses, modify
the sales factor in a manner to retain and attract businesses to, and
create jobs in, California   require the Department of
Finance to conduct a study to determine the impact of a change in
current law, addressing the apportionment of income in computing the
corporate income taxes of trades or businesses,   that would
modify the sales factor in a manner best suited to retaining and
attracting businesses to, and creating new jobs in, California 
.
   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.    The Department of Finance shall conduct
a study to determine the impact of a change in current law,
addressing the apportionment of income in computing the corporate
income taxes of trades or businesses, that would modify the sales
factor in a manner best suited to retaining and attracting businesses
to, and creating new jobs in, California.  
  SECTION 1.    The Legislature declares its intent
to enact legislation that would, for purposes of apportionment of
income in computing income taxes of apportioning trades or
businesses, modify the sales factor in a manner to retain and attract
businesses to, and create jobs in, California.