BILL NUMBER: AB 2666 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 27, 2010
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member Skinner
FEBRUARY 19, 2010
An act to add Sections 19571 and 19185
19188 to the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2666, as amended, Skinner. Income taxes: Franchise Tax Board:
business credits tax expenditures :
Reporting Transparency in Government Internet Web site.
The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against , deductions,
exclusions, exemptions, and other tax benefits with respect to
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 under the Personal Income Tax Law and the
Corporation Tax Law to submit, under penalty of perjury, to the
Franchise Tax Board specified information, including, among other
things, the amount of tax credits
expenditures claimed by the taxpayer on the return for each
credit tax expenditure authorized under
the Personal Income Tax Law and the Corporation Tax Law
those laws . 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 taxable years beginning January
1, 2010 , 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 State Chief Information Officer to develop on 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
equal to 1% of the credit aggregate
amount of tax expenditures 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: 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): 18401):
(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 expenditures
claimed by the taxpayer on the return for each tax
credit expenditure 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.
(3) A list of occupations, job classifications, and average wages
for the full-time employees, part-time employees, and temporary
employees employed by the taxpayer.
(5)
(4) A certification by the taxpayer, signed under
penalty of perjury, that the information is true and correct and
contains no knowing misrepresentation.
(6)
(5) 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).
(b) For purposes of this section, all of the following shall
apply:
(1) "Full-time employee" means an employee who works an average of
35 hours in a week, or more, calculated monthly.
(2) "Part-time employee" means an employee who works less than an
average of 35 hours in a week calculated monthly.
(3) "Tax expenditure" means a tax expenditure listed in the
California Income Tax Expenditures Report published by the Franchise
Tax Board each year, and any credit, deduction, exclusion, exemption,
or any other tax benefit provided by the state that is enacted after
the report is published and that is not included in the report.
(4) "Temporary employee" means an employee who works fewer than
120 days each year.
(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
taxable years beginning January 1, 2010 .
(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 State Chief
Information Officer shall develop on the Reporting Transparency in
Government Internet Web site a searchable database 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.
SEC. 2. Section 19188 is added to the
Revenue and Taxation Code , to read:
19188. A penalty of one percent of the credit
equal to 1 percent of the aggregate amount of tax
expenditures 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.