Amended
IN
Senate
January 05, 2016 |
Amended
IN
Senate
August 31, 2015 |
Amended
IN
Senate
July 16, 2015 |
Amended
IN
Senate
June 29, 2015 |
Amended
IN
Senate
June 03, 2015 |
Amended
IN
Senate
May 05, 2015 |
Introduced by Senator Hill |
February 27, 2015 |
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including gas corporations.
The Corporation Tax Law allows various deductions in computing the income that is subject to the taxes imposed by those laws, and in modified conformity with federal law, allows a deduction for ordinary and necessary expenses carrying on a trade or business. Existing law provides that no deduction is allowed for any fine or similar penalty paid to a government for the violation of any law.
For the taxable year beginning on January 1, 2015, this bill would not allow a deduction under
the Corporation Tax Law for expenses or expenditures by a gas corporation that the Public Utilities Commission identified in a decision to penalize the gas corporation for a natural gas safety violation. For any taxable year for which those expenses or expenditures are paid or incurred, the bill would require
a gas corporation to provide with the return a certification, under penalty of perjury, that none of those expenses or expenditures were taken into account, directly or indirectly, in determining the amount of income of the gas corporation, or any other related taxpayer, that is subject to tax under the Corporation Tax Law, for that taxable year. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.
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.
This bill would declare that it is to take effect immediately as an urgency statute.
(b)Except when a sign is in place prohibiting a turn, a driver, after stopping as required by subdivision (a), facing a steady circular red signal, may turn right, or turn left from a one-way street onto a one-way street. A
The Legislature finds and declares both of the following:
(a)A fine or similar penalty paid at the direction of the government, where the government has determined the fine or similar penalty to be punitive, is not an ordinary and necessary business expense and, therefore, no deduction shall be allowed for any fine or similar penalty paid at the direction of the government for the violation of any law.
(b)Subdivision (a) does not constitute a change in, but is declaratory of, existing law.
(a)For the taxable year beginning January 1, 2015, no deduction shall be allowed for any amount paid or incurred by a gas corporation, as defined in Section 222 of the Public Utilities Code, for expenses or expenditures identified by the Public Utilities Commission in
a decision to penalize the gas corporation for a natural gas safety violation, including any of the following:
(1)Future gas infrastructure improvements related to transmission pipeline safety to be paid for by shareholders of the gas corporation.
(2)Bill credits for the gas ratepayers of the gas corporation.
(3)The implementation of pipeline safety remedies and reimbursement of the
Public Utilities Commission for its costs incurred in investigating and enforcing violations of law relating to the public safety by the gas corporation.
(b)For any taxable year for which expenses or expenditures identified in subdivision (a) are paid or incurred, the gas corporation shall provide with the return, for that taxable year, a certification, under penalty of perjury, that none of those expenses or expenditures were taken into
account, directly or indirectly, in determining the amount of income of
the gas corporation, or any other related taxpayer, that is
subject to tax under this part, for that taxable year.
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.
This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order for the provisions of this act to be applicable to the current tax year and to better ensure the effectiveness of decisions of the Public Utilities Commission protecting the public safety, it is necessary that this act take effect
immediately.