BILL NUMBER: AB 2230 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Charles Calderon
FEBRUARY 18, 2010
An act to amend Section 18639 of add
Section 19196 to the Revenue and Taxation Code, relating to
taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2230, as amended, Charles Calderon. Franchise and
income tax law: information returns. Franchise Tax
Board: administration: list: publicly traded corporations.
Existing income and corporation tax laws require the Franchise Tax
Board to annually list the 250 largest tax delinquencies in excess
of $100,000.
This bill would require the board to make available as a matter of
public record and post on its Internet Web site by March 31, 2011,
and annually thereafter, a list of the 100 largest publicly traded
corporations, based on gross receipts, filing tax returns for a
taxable year and with tax expenditures, as specified.
Existing law requires every person, who either makes payments of
exempt-interest dividends, as specified, or receives payments of
interest exempt from tax, as specified, as a nominee and makes
payments to any person with respect to the interest received, to file
an information return as prescribed by the Franchise Tax Board and
to furnish a statement to each person named in the return.
This bill would make a technical, nonsubstantive change to that
provision.
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 19196 is added to the
Revenue and Taxation Code , to read:
19196. (a) Notwithstanding any other provision of law, the
Franchise Tax Board shall make available as a matter of public record
and post on its Internet Web site by March 31, 2011, and annually
thereafter, a list of the 100 largest publicly traded corporations,
based on gross receipts, filing tax returns for a taxable year and
with tax expenditures. The list shall commence with tax returns filed
for taxable years beginning on or after January 1, 2008.
(b) Each annual list as described in subdivision (a) shall include
the following information for each corporation:
(1) The name of the corporation.
(2) The California corporation number.
(3) The address of the principal office.
(4) The aggregate amount of tax expenditures.
(5) The effective tax rate.
(c) For purposes of this section, the following definitions shall
apply:
(1) "Effective tax rate" means an amount, expressed as a
percentage, determined by dividing the amount of taxes paid by a
taxpayer for a taxable year by an amount equal to the sum of the
following:
(A) The taxable income of the taxpayer for the taxable year.
(B) The tax expenditures of the taxpayer that were deducted by the
taxpayer in arriving at the taxable income of the taxpayer for the
taxable year.
(2) "Tax expenditure" means tax expenditures as detailed in the
California Income Tax Expenditures, Compendium of Individual
Provisions Report, compiled by the Franchise Tax Board.
SECTION 1. Section 18639 of the Revenue and
Taxation Code is amended to read:
18639. (a) (1) In addition to those reports required under
paragraph (8) of subdivision (c) of Section 18631, information
returns shall be required, at the time and in the form and manner and
to the extent that the Franchise Tax Board may prescribe, from both
of the following:
(A) Every person who makes payments of exempt-interest dividends,
as described in Section 852(b)(5) of the Internal Revenue Code, that
are not exempt-interest dividends, as described in Section 17145 of
the Revenue and Taxation Code, aggregating ten dollars ($10) or more
to any person, other than to any person described in paragraph (2),
during any calendar year.
(B) Every person who receives payments of interest as a nominee
and who makes payments aggregating ten dollars ($10) or more during
any calendar year to any other person, other than to any person
described in paragraph (2), with respect to the interest so received.
For purposes of this paragraph, "interest" is limited to interest on
any obligation if the interest is exempt from tax under Section 103
(a) of the Internal Revenue Code or if the interest is exempt from
tax, without regard to the identity of the holder, under any other
provision of Title 26 of the United States Code, but which is not
exempt from income tax under Part 10 (commencing with Section 17001).
(2) For purposes of this subdivision, a person shall not be
required to make a report pursuant to paragraph (1) if the person
receiving the payment is any of the following:
(A) A corporation.
(B) An organization exempt from taxation under Section 23701 or an
individual retirement plan.
(C) The United States or any wholly owned agency or
instrumentality thereof.
(D) A state, the District of Columbia, a possession of the United
States, any political subdivision of any of the foregoing, or any
wholly owned agency or instrumentality of any one or more of the
foregoing.
(E) A foreign government, a political subdivision of a foreign
government, or any wholly owned agency or instrumentality of any one
or more of the foregoing.
(F) An international organization or any wholly owned agency or
instrumentality thereof.
(G) A foreign central bank of issue.
(H) A dealer in securities or commodities required to register
under the laws of the United States or a state, the District of
Columbia, or possession of the United States.
(I) A real estate investment trust, as defined in Section 856 of
the Internal Revenue Code.
(J) An investment company, as defined in Section 80a-3 of the
United States Code, registered at all times during the taxable year
under the Investment Company Act of 1940.
(K) A common trust fund, as defined in Section 17671.
(L) Any trust that is exempt from tax under Section 664(c) of the
Internal Revenue Code.
(b) Every person required to make a return under this section
shall also furnish a statement to each person whose name is set forth
in the return, as required to do so by the Internal Revenue Code.