BILL NUMBER: AB 2439	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 25, 2012
	AMENDED IN ASSEMBLY  MAY 2, 2012
	AMENDED IN ASSEMBLY  APRIL 11, 2012

INTRODUCED BY   Assembly Member Eng
   (Coauthor: Assembly Member Skinner)

                        FEBRUARY 24, 2012

   An act to add Section 19573 to the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2439, as amended, Eng. Corporation taxes: disclosure.
   The Personal Income Tax Law and the Corporation Tax Law impose
taxes on, or measured by, income. Existing law requires the Franchise
Tax Board to make available as a matter of public record each
calendar year a list of the 250 largest tax delinquencies in excess
of $100,000, and requires the list to include specified information
with respect to each delinquency.
   This bill would  , on and after specified dates,  require
the  Controller   Franchise Tax Board to make
available  , upon  receipt of   request,
 specified  income   corporation  tax
liability and income apportionment information  that the bill
would require to be disclosed by specified corporations
 , to both publish that information and make that information
a matter of public record, as provided. This bill would also require
the Franchise Tax Board to provide the Controller with specified
information  . This bill would also make findings and
declarations regarding the intent of the Legislature.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Publicly traded corporations are required to disclose their
federal and state corporation taxes to the federal Securities and
Exchange Commission through the Form 10-K. State corporation taxes,
however, are aggregated without regard to state, so the information
available at the federal level does not specify corporation taxes of
particular states.
   (b) Recent changes in the state's Corporation Tax Law, which
provide for the elective use of single-sales factor apportionment,
combined with other provisions in this area of tax law, have had
little analysis and scrutiny with regard to their impact on taxpayers
and California.
   (c) Therefore, it is the intent of the Legislature, in adding
Section 19573 to the Revenue and Taxation Code, to supplement federal
tax reporting requirements for those corporations filing a Form 10-K
by adding a single data point that would be  reported to the
Controller and made publicly  available  to the public
upon request  . This single data point would disclose the amount
of specified tax liability of those corporations that are already
required to disclose their federal and aggregate state corporation
taxes.
  SEC. 2.  Section 19573 is added to the Revenue and Taxation Code,
to read:
   19573.  (a) (1)  Each   On and after
September 1, 2014, the Franchise Tax Board shall make available, upon
request, information regarding the tax liability of each 
corporation that is required to file an annual Form 10-K with the
federal Securities and Exchange  Commission shall annually
disclose its amount of   Commission. The information
made available upon request shall be the  tax liability  for
a specified corporation  with respect to the taxes imposed by
Part 11 (commencing with 23001) for the  previous 
taxable year  that closed two years before the request made
pursuant to this subdivision  and whether the corporation made
an election to apportion its income in accordance with Section
25128.5 for  the previous   that  taxable
year  to the Controller within three months of the
corporation's deadline for filing its annual Form 10-K with the
federal Securities and Exchange Commission, in a form and manner as
prescribed by the Controller  .
   (2) On or before  April   September  1,
2013,  the Franchise Tax Board shall make available, upon
request, information regarding the tax liability of  each
corporation that is required to file an annual Form 10-K with the
federal Securities and Exchange  Commission shall disclose
its amount of   Commission. The information made
available upon request shall be the  tax liability with respect
to the taxes imposed by Part 11 (commencing with 23001) for the 2010
and 2011 taxable years and whether the corporation made an election
to apportion its income in accordance with Section 25128.5 for the
2011 taxable year  to the Controller in a form and manner as
prescribed by the Controller  . 
   (b) (1) Notwithstanding any other provision of law, the Controller
shall publish the information disclosed pursuant to subdivision (a)
on the Controller's Internet Web site and shall maintain a record,
available to the public, of that information.  
   (2) 
    (b)  If the tax liability amount is contested or
otherwise under dispute, by either the taxpayer subject to the taxes
imposed pursuant to Part 11 (commencing with Section 23001) or the
Franchise Tax Board, the  Controller shall include that
information on the Controller's Internet Web site and in the
Controller's records. The Franchise Tax Board shall provide the
Controller with the information needed to comply with this paragraph
  Franchise Tax Board shall so indicate in its response
to a request for information regarding the tax liability of a
corporation  . 
   (3) The Controller shall publish the information disclosed
pursuant to subdivision (a) two years after the date the information
is required to be submitted. 
   (c) For purposes of this section, "tax liability" means the amount
of tax owed after the application of any credits and excluding
overpayments, estimated tax payments, withholding, or amounts paid
with an extension of time to file tax return.