BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1580
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

            AB 1580 (Committee on Revenue and Taxation) - As Amended:  May  
                                      14, 2009 

          Policy Committee:                              Revenue and  
          Taxation     Vote:                            8-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill cleans up several tax-related provisions of  ABX3 3  
          (Evans), Chapter 18, Third Extraordinary Session/2009, and SBX3  
          15 (Calderon), Chapter 17, Third Extraordinary Session/2009.  
          Specifically, the bill:  

          1)Clarifies the operative date for provisions relating to the  
            temporarily reduced amount of the dependent exemption credit.

          2)Requires the Franchise Tax Board to apply wage withholding  
            toward a taxpayer's estimated tax payment obligation using the  
            recently modified percentages.  

          3)Corrects an erroneous cross-reference in the Revenue and  
            Taxation Code relating to a penalty for the underpayment of  
            estimated tax. 

          4)Clarifies that an annual election to use the single sales  
            factor apportionment formula may be made by an apportioning  
            trade or business only for taxable years beginning on or after  
            January 1, 2011.  

          FISCAL EFFECT  

          FTB estimates that the bill will have no material effect on  
          either administrative costs or tax revenues.

           COMMENTS  

           Purpose  . This bill is intended to clarify and resolve several  








                                                                  AB 1580
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          issues that have emerged relating to implementation of recently  
          enacted budget trailer bills. 


           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081