Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1173

Introduced by Assembly Member Bocanegra

February 22, 2013

An act tobegin delete amend Section 23002 ofend deletebegin insert add Section 17508.2 toend insert the Revenue and Taxation Code, relating to taxationbegin insert, to take effect immediately, tax levyend insert.


AB 1173, as amended, Bocanegra. begin deleteCorporation taxes. end deletebegin insertPersonal income taxes: nonqualified deferred compensation plan.end insert

begin insert

The Personal Income Tax Law conforms to the federal income tax law that includes in gross income the compensation from nonqualified deferred compensation plans that fail to meet specified requirements. These laws require the amount of tax imposed to be increased by the amount of interest at the underpayment rate, as specified, and 20% of the compensation that is required to be included in gross income.

end insert
begin insert

This bill would substitute 5% in lieu of 20%.

end insert
begin insert

This bill would take effect immediately as a tax levy.

end insert
begin delete

The Corporation Tax Law specifies that its provisions are applicable to specified taxes.

end delete
begin delete

This bill would make technical, nonsubstantive changes to those specification provisions.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 17508.2 is added to the end insertbegin insertRevenue and
2Taxation Code
end insert
begin insert, to read:end insert

begin insert

begin insert17508.2.end insert  

Section 409A of the Internal Revenue Code is modified
4as follows:

5(a) By substituting the phrase “five percent” in lieu of the phrase
6“20 percent” in Section 409A(a)(1)(B)(i)(II) of the Internal
7Revenue Code.

8(b) By substituting the phrase “five percent” in lieu of the phrase
9“20 percent” in Section 409A(b)(5)(A)(ii) of the Internal Revenue

end insert
11begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

This act provides for a tax levy within the meaning of
12Article IV of the Constitution and shall go into immediate effect.

end insert
begin delete13


Section 23002 of the Revenue and Taxation Code
14 is amended to read:



Except where otherwise expressly provided, all
16provisions of this part are applicable to the taxes imposed
17respectively under Chapter 2 (commencing with Section 23101),
18Chapter 2.5 (commencing with Section 23400), or Chapter 3
19(commencing with Section 23501), or to the predecessor acts of
20this part, the Bank and Corporation Franchise Tax Act, or the
21Corporation Income Tax Act, respectively.

end delete