BILL NUMBER: AB 189	CHAPTERED  08/30/99

	CHAPTER   249
	FILED WITH SECRETARY OF STATE   AUGUST 30, 1999
	APPROVED BY GOVERNOR   AUGUST 30, 1999
	PASSED THE SENATE   AUGUST 16, 1999
	PASSED THE ASSEMBLY   APRIL 15, 1999

INTRODUCED BY   Assembly Member Ackerman

                        JANUARY 21, 1999

   An act to amend Section 23305.5 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 189, Ackerman.  Bank and corporation taxes:  limited liability
companies.
   The Bank and Corporation Tax Law provides that in the case of a
limited liability company the term "tax" includes a specified tax and
fee.
   This bill would delete an erroneous reference to a limited
liability company classified as a partnership.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 23305.5 of the Revenue and Taxation Code is
amended to read:
   23305.5.  (a) For the purposes of this article, "taxpayer" shall
include any limited liability company, foreign or domestic, that is
organized in this state or registered with the Secretary of State.
   (b) For purposes of this article, in the case of a limited
liability company:
   (1) "Articles of incorporation" shall include a limited liability
company's articles of organization.
   (2) "Tax" shall include the tax and fee imposed by Sections 17941
and 17942, or former Sections 23091 and 23092, respectively.
  SEC. 2.  The changes made to Section 23305.5 of the Revenue and
Taxation Code by this act shall apply to taxable years beginning on
or after January 1, 1997.