BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 318|
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CONSENT
Bill No: AB 318
Author: Skinner (D)
Amended: 1/4/12 in Assembly
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 8-0, 6/13/12
AYES: Wolk, Dutton, DeSaulnier, Fuller, Hernandez, Kehoe,
La Malfa, Liu
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 1/26/12 (Consent) - See last page
for vote
SUBJECT : Franchise Tax Board: administration
SOURCE : Franchise Tax Board
DIGEST : This bill conforms Californias income tax laws
to the federal income tax law regarding the definition of a
legal holiday for tax purposes.
ANALYSIS : Federal law requires calendar year tax filers
to file their taxes by April 15th. If the deadline falls
on a Saturday, Sunday, or legal holiday, returns and
payments may be filed or mailed on the next succeeding day.
"Legal holiday" means a legal holiday in the District of
Columbia or in a state where an Internal Revenue Service
(IRS) office is located.
CONTINUED
AB 318
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State law sets due dates for income tax returns and
payments. The Franchise Tax Board (FTB) is required to
design tax forms that build on federal income tax returns.
In California, taxes are still due on April 15th, resulting
in different state and federal tax filing days in some
years.
This bill expands the definition of a legal holiday to
include legal holidays recognized by the IRS for personal
income and corporate income tax purposes.
Comments
California tax filers are sometimes confused when the FTB's
forms and instructions require taxpayers to use federal tax
return information, but the due date for federal returns is
later than the due date for California returns. To avoid
confusion, the FTB administratively changes the due date
for each affected year to match the IRS's due date.
However, this process is time-consuming and cumbersome,
requiring the FTB's forms staff to get approval from its
internal departments to change the due date each year this
is necessary. By codifying the IRS's definition of a legal
holiday in California's statutes, the FTB will (1) have
statutory authority to automatically change the due date
for each affected tax year, thereby streamlining what is a
multi-step administrative process; and (2) eliminate
taxpayers' confusion when there is a federally recognized
holiday.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/26/12)
Franchise Tax Board (source)
AFSCME
California Taxpayers Association
ASSEMBLY FLOOR : 75-0, 1/26/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
AB 318
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3
Carter, Cedillo, Chesbro, Conway, Cook, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove,
Hagman, Hall, Hayashi, Roger Hern�ndez, Hill, Huber,
Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue,
Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan,
Perea, V. Manuel P�rez, Portantino, Silva, Skinner,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Davis, Gorell, Halderman, Harkey, Smyth
AGB:do 6/26/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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