BILL NUMBER: SB 548 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 24, 2011
INTRODUCED BY Senator Strickland
FEBRUARY 17, 2011
An act to amend Section 17048 of 19011.5
of, and to add Section 17053.76 to, the Revenue and Taxation
Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 548, as amended, Strickland. Income taxes: tax tables.
Personal income taxes: payments: electronic
remittance: credit.
The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law and requires personal income taxpayers
with estimated tax or extension payments in excess of $20,000, or
total tax liability in excess of $80,000, to remit payments to the
Franchise Tax Board by electronic funds transfers, subject to
specified requirements.
This bill would instead make the electronic funds transfer of
those estimated tax payments or extension payments described above
voluntary and would authorize a tax credit in an amount equal to 1%
of the amount of payments that are remitted electronically.
The Personal Income Tax Law imposes specified taxes based upon
gross income, and, among other things, provides for the computation
of taxes in accordance with tax tables prescribed by the Franchise
Tax Board.
This bill would make technical, nonsubstantive changes to those
provisions.
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. Section 17053.76 is added to the
Revenue and Taxation Code , to read:
17053.76. For each taxable year beginning on or after January 1,
2011, there shall be allowed as a credit against the "net tax," as
defined in Section 17039, an amount equal to 1 percent of the amount
of payments during the taxable year that are remitted electronically
pursuant to Section 19011.5.
SEC. 2. Section 19011.5 of the Revenue
and Taxation Code is amended to read:
19011.5. (a) All payments required by an individual under this
part, regardless of the taxable year to which the payments apply,
made on or after January 1, 2009, shall may
be electronically remitted to the Franchise Tax Board in the
form and manner prescribed by the Franchise Tax Board, once any of
the following conditions are met by an individual:
(1) Any installment payment of estimated tax made pursuant to this
part in excess of twenty thousand dollars ($20,000), or any payment
made pursuant to Section 18567 with regard to an extension of time to
file that exceeds twenty thousand dollars ($20,000), for any taxable
year beginning on or after January 1, 2009.
(2) The total tax liability exceeds eighty thousand dollars
($80,000) in any taxable year beginning on or after January 1, 2009.
For purposes of this section, total tax liability shall be the total
tax liability as shown on the original return, after any adjustment
made pursuant to Section 19051.
(b) A taxpayer required to electronically remit payment to the
Franchise Tax Board pursuant to this section may elect to discontinue
making payments electronically where the threshold requirements set
forth in paragraphs (1) and (2) of subdivision (a) were not met for
the preceding taxable year. The election shall be made in a form and
manner prescribed by the Franchise Tax Board.
(c) Any taxpayer required to electronically remit payment pursuant
to this section who makes payment by other means shall pay a penalty
of 1 percent of the amount paid, unless it is shown that the failure
to make payment as required was for reasonable cause and was not the
result of willful neglect.
(d) Any taxpayer required to electronically remit payments
pursuant to this section may request a waiver of those requirements
from the Franchise Tax Board. The Franchise Tax Board may grant a
waiver only if it determines that the particular amounts paid in
excess of the threshold amounts established in this section were not
representative of the taxpayer's tax liability. If the Franchise Tax
Board grants a waiver to a taxpayer, the waiver shall be in writing,
and subsequent electronic remittances shall be required only on those
terms set forth in the written waiver.
(e)
(b) For purposes of this section, Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code shall not apply to any standard, criterion,
procedure, determination, rule, notice, or guideline established or
issued by the Franchise Tax Board pursuant to subdivision (a).
(f)
(c) For purposes of this section, both of the following
shall apply:
(1) "Electronically remit" means to send payment through use of
any of the electronic payment applications provided by the Franchise
Tax Board, including, but not limited to, a pay by phone option, when
made available by the Franchise Tax Board.
(2) "Pay by phone" means a method that allows a taxpayer to
authorize a transfer of funds from a financial institution using
telephonic technology.
(d) The amendments made to this section by the act adding this
subdivision shall apply to taxable years beginning on or after
January 1, 2011.
SECTION 1. Section 17048 of the Revenue and
Taxation Code is amended to read:
17048. (a) In lieu of the tax imposed under Section 17041,
individuals with taxable income of such amounts as prescribed by the
Franchise Tax Board, shall compute their taxes under tax tables
prescribed by the Franchise Tax Board. The tax tables shall reflect
the tax imposed under Section 17041 in income progressions of not
less than one hundred dollars ($100), taking into account the marital
or other status of the individual. For purposes of this part, the
tax imposed by this section shall be treated as tax imposed by
Section 17041.
(b) Subdivision (a) shall not apply to any of the following:
(1) An individual to whom subdivision (b) of Section 17504
(relating to the tax on lump-sum distributions) applies for the
taxable year.
(2) An individual making a return under Section 443(a)(1) of the
Internal Revenue Code for a period of less than 12 months on account
of a change in annual accounting period.
(3) An estate or trust.