BILL NUMBER: SB 568	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Hollingsworth

                        FEBRUARY 27, 2009

   An act to add Sections 17041.7 and 23151.7 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 568, as introduced, Hollingsworth. Income and corporation
taxes: capital gains.
   The Personal Income Tax Law and the Corporation Tax Law provide
that gain or loss upon the disposition of a capital asset is
determined by reference to the adjusted basis of that asset.
   This bill would, for taxable years beginning on or after January
1, 2009, allow a taxpayer to elect to pay a tax on the sale or
disposition of any capital asset, as defined, that results in a net
capital gain, as defined, in an amount equal to 2% of the total net
capital gain, as provided.
   This bill would take effect immediately as a tax levy.
   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.  Section 17041.7 is added to the Revenue and Taxation
Code, to read:
   17041.7.  (a) For each taxable year beginning on or after January
1, 2009, in the case of the sale or exchange of any capital asset, as
defined in Section 1221 of the Internal Revenue Code, a taxpayer may
elect to pay a tax in an amount equal to 2 percent of any net
capital gain, as defined in paragraph (11) of Section 1222 of the
Internal Revenue Code.
   (b) Any tax on net capital gain paid by an electing taxpayer
pursuant to this section shall be in lieu of any other tax that would
otherwise be imposed on the net capital gain by this part.
  SEC. 2.  Section 23151.7 is added to the Revenue and Taxation Code,
to read:
   23151.7.  (a) For each taxable year beginning on or after January
1, 2009, the sale or exchange of any capital asset, as defined in
Section 1221 of the Internal Revenue Code, a taxpayer may elect to
pay a tax in an amount equal to 2 percent of any net capital gain, as
defined in paragraph (11) of Section 1222 of the Internal Revenue
Code.
   (b) Any tax on capital gain paid by an electing taxpayer pursuant
to this section shall be in lieu of any other tax that would
otherwise be imposed on the capital gain by this part.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.