BILL NUMBER: AB 2666 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 28, 2010
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 19188
Section 19571 to the Revenue and Taxation Code, relating to
taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2666, as amended, Skinner. Income taxes: Franchise Tax Board:
tax expenditures: Reporting Transparency in Government Internet Web
site.
The Personal Income Tax Law and the Corporation Tax Law authorize
various credits, deductions, exclusions, exemptions, and other tax
benefits with respect to the taxes imposed by those laws.
This bill would require a taxpayer doing business in this state
that claims any tax expenditure 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 expenditures claimed by the taxpayer on the
return for each tax expenditure authorized under 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 , for each taxable year on and after January
1, 2010, require the board Franchise
Tax Board to annually compile the
information received, commencing with information
based on taxable years beginning January 1, 2010, on
any expenditure claimed
and reported by a taxpayer that is a publicly traded company,
and would require, beginning on March 30, 2012, and each
by March 30th 30 of each
year 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 a searchable database of
that information, as specified.
This bill would also impose a penalty equal to 1% of the 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 no .
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 shall submit
to the Franchise Tax Board the following information annually when
filing the annual return required under Part 10.2 (commencing with
Section 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 expenditures claimed by the taxpayer on the
return for each tax expenditure authorized under Part 10 (commencing
with Section 17001) or Part 11 (commencing with Section 23001).
19571. (a) For each taxable year beginning on or
after January 1, 2010, the Franchise Tax Board shall compile
information on any tax expenditure, authorized under Part 10
(commencing with Section 17001) or Part 11 (commencing with Section
23001), that is claimed and reported by a taxpayer that is a publicly
traded company on the annual return required under Part 10.2
(commencing with Section 18401).
(b) "Publicly traded company" means a company with securities that
are either listed or admitted to trading on a national or foreign
exchange, or is the subject of two-way quotations, such as both bid
and asked prices, that is regularly published by one or more
broker-dealers in the National Daily Quotation Service or a similar
service.
(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.
(4) A certification by the taxpayer, signed under penalty of
perjury, that the information is true and correct and contains no
knowing misrepresentation.
(5) The taxpayer's office mailing address and office telephone
number.
(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 taxable years beginning January 1, 2010.
(2)
(c) Beginning on March 30, 2012, and each
March 30th by March 30 of each year thereafter,
the Franchise Tax Board shall submit the information
tax expenditure information compiled pursuant to
subdivision (a) to the State Chief Information Officer for
publication on the Reporting Transparency in Government Internet Web
site.
(d) The 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 and the amount of tax
expenditures claimed, to increase public awareness of the
amount and scope of tax expenditures for businesses in this state.
SEC. 2. Section 19188 is added to the Revenue
and Taxation Code, to read:
19188. A penalty 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.
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