BILL NUMBER: AB 2666 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member Skinner
FEBRUARY 19, 2010
An act to amend Section 19546.5 of the Revenue and
Taxation Code, relating to taxation. An act to add
Sections 19571 and 19185 to the Revenue and Taxation Code, relating
to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2666, as amended, Skinner. Income taxes: Franchise Tax Board:
administration confidentiality. business
credits: Reporting Transparency in Government Internet Web site.
The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against the taxes imposed by those laws, including
business credits, as defined.
This bill would require a taxpayer doing business in this state
that claims any tax expenditure in the form of a business credit to
submit, under penalty of perjury, to the Franchise Tax Board
specified information, including, among other things, the amount of
tax credits claimed by the taxpayer on the return for each credit
authorized under the Personal Income Tax Law and the Corporation Tax
Law. By requiring taxpayers to submit this information under penalty
of perjury, this bill would expand the circumstances under which a
person may be convicted of the crime of perjury and thereby impose a
state-mandated local program.
This bill would require the board to annually compile the
information received, commencing with information based on the 2010
taxable year, and would require, beginning on March 30, 2012, and
each March 30th thereafter, the board to submit the information to
the State Chief Information Officer for publication on the Reporting
Transparency in Government Internet Web site. This bill would require
the Reporting Transparency in Government Internet Web site to
include a searchable database of that information, as specified.
This bill would also impose a penalty of 1% of the credit claimed
for each failure to file the required information, as specified.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Existing law authorizes a person who has or had access to any
return or return information to disclose that information to a
committee, member, clerk, officer, or employee, as prescribed, if the
person believes that information may relate to possible board
misconduct, maladministration, or taxpayer abuse.
This bill would make a technical, nonsubstantive change in this
provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19571 is added to the
Revenue and Taxation Code , to read:
19571. (a) Notwithstanding any other law, a taxpayer doing
business in this state that claims any tax expenditure in the form of
a business credit shall submit to the Franchise Tax Board the
following information annually when filing the annual return required
under Part 10.2 (commencing with Section 18410):
(1) The number of full-time employees, as defined, part-time
employees, and temporary employees employed by the taxpayer in this
state.
(2) The amount of tax credits claimed by the taxpayer on the
return for each tax credit authorized under Part 10 (commencing with
Section 17001) or Part 11 (commencing with Section 23001).
(3) The number of full-time jobs, part-time jobs, and temporary
jobs created by the tax credit.
(4) A list of occupations, job classifications, and expected
average wages for the full-time jobs, part-time jobs, and temporary
jobs created by the tax credit.
(5) A certification by the taxpayer, signed under penalty of
perjury, that the information is true and correct and contains no
knowing misrepresentation.
(6) The taxpayer's office mailing address and office telephone
number.
(b) For purposes of this section, a "business credit" means any
credit against "net tax," as defined in Section 17039, or any credit
against the "tax," as defined in Section 23036, allowed under Part 10
(commencing with Section 17001) or Part 11 (commencing with Section
23001), other than credits allowed under the following sections:
(1) Section 17052.6 (relating to household and dependent care).
(2) Sections 17052.17 and 23617 (relating to employer's child care
assistance).
(3) Section 23617.5 (relating to employer's credit for
contribution to care plan).
(4) Section 17052.18 (relating to qualified dependent care plan).
(5) Section 17052.25 (relating to adoption costs).
(6) Section 17053.5 (relating to renters' tax credit).
(7) Sections 17053.30 and 23630 (relating to donations of
conservation land).
(8) Sections 17053.42 and 23642 (relating to disabled access
expenditures).
(9) Section 17054 (relating to personal, dependent, blind and
senior exemptions).
(10) Section 17054.5 (relating to joint custody head of
household).
(11) Section 17054.7 (relating to senior head of household).
(12) Section 17055 (relating to non-resident pro ration of
exemption credits).
(13) Section 17061 (relating to refunds pursuant to the
Unemployment Insurance Code).
(c) (1) Notwithstanding any other law, including Section 6254.21
of the Government Code, the Franchise Tax Board shall annually
compile the information received pursuant to this section, commencing
with information based on the 2010 taxable year.
(2) Beginning on March 30, 2012, and each March 30th thereafter,
the Franchise Tax Board shall submit the information to the State
Chief Information Officer for publication on the Reporting
Transparency in Government Internet Web site.
(d) The Reporting Transparency in Government Internet Web site
shall include a database searchable by company name, amount of tax
expenditure, or any other criteria necessary to increase public
awareness of the amount and scope of tax expenditures for businesses
in this state.
SEC. 2. Section 19185 is added to the
Revenue and Taxation Code , to read:
19185. A penalty of one percent of the credit claimed shall be
imposed for each failure to file the required information under
subdivision (a) of Section 19571, unless it is shown that the failure
is due to reasonable cause and not due to willful neglect.
SEC. 3. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 19546.5 of the Revenue and
Taxation Code is amended to read:
19546.5. A person who otherwise has or had access to any return
or return information may disclose the return or return information
to a committee appointed by the Assembly or Senate, or both, or any
member, clerk, or other officer or employee thereof, if the person
believes the return or return information may relate to possible
board misconduct, maladministration, or taxpayer abuse.