AB 1984,
as amended, Harkey. begin deleteSales and use taxes. end deletebegin insertIncome taxes: net operating losses: carrybacks: overpayments: estimated tax.end insert
The Personal Income Tax Law and the Corporation Tax Law, in modified conformity to federal law, allow taxpayers to utilize net operating losses and carryovers and carrybacks of those losses for purposes of offsetting their tax liabilities. Existing law allows net operating losses attributable to taxable years beginning on or after January 1, 2013, to be carrybacks to each of the preceding 2 taxable years, as provided. Federal income tax law includes procedures that allow a taxpayer with net operating loss carrybacks to obtain a tentative refund of taxes paid in prior tax years by filing a tentative carryback adjustment application and allow a corporation to apply to extend the time for payment of taxes for the immediately preceding taxable year.
end insertbegin insertThis bill would conform to those federal provisions.
end insertbegin insertExisting law provides for the establishment of the Franchise Tax Board and prescribes its various powers and duties regarding the administration of state personal income taxes and corporation franchise and income taxes, including an authorization to prescribe regulations providing for the crediting against the estimated tax of the amount determined to be an overpayment of tax for a preceding taxable year.
end insertbegin insertThis bill would require the Franchise Tax Board to prescribe the above-described regulations on or before January 1, 2016.
end insertA provision of the Sales and Use Tax Law imposes a state sales tax at a rate of 43⁄4% of the gross receipts of the retail sale of tangible personal property in the state.
end deleteThis bill would make technical, nonsubstantive changes to that provision.
end deleteVote: majority.
Appropriation: no.
Fiscal committee: begin deleteno end deletebegin insertyesend insert.
State-mandated local program: no.
The people of the State of California do enact as follows:
begin insertSection 19022 is added to the end insertbegin insertRevenue and
2Taxation Codeend insertbegin insert, to read:end insert
(a) Section 6164 of the Internal Revenue Code, relating
4to extension of time for payment of taxes by corporations expecting
5carrybacks shall apply.
6(b) (1) Section 6164 of the Internal Revenue Code is modified
7by substituting the phrase “Secretary or the Franchise Tax Board”
8for the word “Secretary” in each place it appears.
9(2) Section 6164(a) of the Internal Revenue Code, relating to
10in general, is modified by substituting the phrase “Part 11
11(commencing with Section 23001)” in lieu of the phrase “subtitle
12A”.
13(3) Section 6164(b) of the Internal Revenue Code, relating to
14contents of
statement, is modified by substituting the phrase
15“Section 24416.20” in lieu of the phrase “section 172(b)”.
16(4) Section 6164(d)(2) of the Internal Revenue Code is modified
17by substituting the phrase “Section 19367” in lieu of the phrase
18“section 6411”.
19(5) Section 6164(h) of the Internal Revenue Code, relating to
20jeopardy, is modified as follows:
21(A) By substituting the phrase “he or the Franchise Tax Board”
22for the word “he” in each place it appears.
23(B) By substituting the phrase “him or the Franchise Tax
24Board” for the word “him” in each place it appears.
begin insertSection 19362 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
26amended to read:end insert
begin insert(a)end insertbegin insert end insertbegin deleteThe end deletebegin insertOn or before January 1, 2016, the end insertFranchise
28Tax Boardbegin delete is authorized toend deletebegin insert shallend insert prescribe regulations providing
P3 1for the crediting against the estimated tax for any taxable year of
2the amount determined by the taxpayer or the Franchise Tax Board
3to be an overpayment of the tax for a preceding
taxable year.
begin insertSection 19367 is added to the end insertbegin insertRevenue and Taxation
5Codeend insertbegin insert, to read:end insert
(a) Section 6411 of the Internal Revenue Code, relating
7to tentative carryback and refund adjustments, shall apply only to
8an application for a tentative carryback adjustment of the tax for
9a prior taxable years affected by a net operating loss carryback.
10(b) (1) Section 6411 of the Internal Revenue Code is modified
11by substituting the phrase “Secretary or the Franchise Tax Board”
12for the word “Secretary” in each place it appears.
13(2) Section 6411(a) of the Internal Revenue Code, relating to
14application for adjustment, is modified as follows:
15(A) By substituting the phrase “Section 24416.20”
in lieu of
16the phrase “section 172(b)”.
17(B) By substituting the phrase “Section 18621” in lieu of the
18phrase “section 6065”.
19(3) Section 6411(b) of the Internal Revenue Code, relating to
20allowance of adjustments, is modified by substituting the phrase
21“Section 19022” in lieu of the phrase “section 6164”.
Section 6051 of the Revenue and Taxation Code
23 is amended to read:
For the privilege of selling tangible personal property at
25retail a tax is hereby imposed upon all retailers
at the rate of 43⁄4
26 percent of the gross receipts of any retailer from the sale of all
27tangible personal property sold at retail in this state.
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