Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1173

Introduced by Assembly Member Bocanegra

February 22, 2013

An act to begin delete amend Section 23002 of end delete begin insert add Section 17508.2 to end insert the Revenue and Taxation Code, relating to taxation begin insert , to take effect immediately, tax levy end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 1173, as amended, Bocanegra. begin delete Corporation taxes. end delete begin insert Personal 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 delete no end delete begin insert yes end insert . State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 17508.2 is added to the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

begin insert 17508.2. end insert   

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

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

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

end insert

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

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

end insert

begin delete

SECTION 1.  

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

23002.  

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

end delete