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AB-1210 Franchise Tax Board: federal tax law changes: report.(2017-2018)

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Date Published: 03/29/2017 09:00 PM
AB1210:v98#DOCUMENT

Amended  IN  Assembly  March 29, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1210


Introduced by Assembly Member Ridley-Thomas

February 17, 2017


An act to amend Section 18409 19522 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 1210, as amended, Ridley-Thomas. Franchise Tax Board: administration. federal tax law changes: report.
Existing law requires the Franchise Tax Board to submit to the Legislature, and to make available to the public, on or before January 10 of each year, a report on all of the changes to the Internal Revenue Code enacted into law in the prior year, as provided. Existing law requires that, in the event that changes to the Internal Revenue Code are enacted into law after September 15 of any year, the Franchise Tax Board submit the report to the Legislature within 120 days after signature by the President of the United States.
This bill would instead require that the report be submitted on or before February 1 of each year and within 140 days after signature by the President of the United States of any law enacting changes to the Internal Revenue Code after September 15 of any year.

Existing law imposes various requirements on the Franchise Tax Board with respect to those taxes collected and administered by the board under the Personal Income Tax Law and the Corporation Tax Law, including a requirement to prescribe regulations providing standards for determining which tax returns shall be filed on magnetic media or in other machine-readable form.

This bill would make a nonsubstantive change to this provision.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 19522 of the Revenue and Taxation Code is amended to read:

19522.
 (a) (1) (A) On or before the 10th 1st of January February each year, the Franchise Tax Board shall submit to the Legislature a report on all changes to the Internal Revenue Code enacted into law in the prior year. To the extent possible, the report shall contain an estimate of the revenue effect of conforming California law to each of those changes.
(B) In the event that changes to the Internal Revenue Code are enacted after September 15 of any year, the report described in subparagraph (A) shall be submitted to the Legislature within 120 140 days after signature by the President of the United States, rather than the 10th 1st of January. February.
(2) The report required by this section shall be made available to the public.
(3) It is the intent of the Legislature that the policy committee of each house of the Legislature hold at least one public hearing on the report required by this section.
(b) For any introduced bill which proposes changes in any of the dates in Section 17024.5, the Franchise Tax Board shall prepare a complete analysis of the bill which describes all changes to state law which will automatically occur by reference to federal law as of the changed date. The Franchise Tax Board shall immediately update and supplement that analysis upon any amendment to the bill. That analysis shall be made available to the public and shall be submitted to the Legislature for publication in the daily journal of each house of the Legislature. The digest of the Legislative Counsel shall indicate that an analysis of the bill shall be prepared by the Franchise Tax Board and printed in the daily journal of each house of the Legislature.

SECTION 1.Section 18409 of the Revenue and Taxation Code is amended to read:
18409.

(a)The Franchise Tax Board shall prescribe regulations that provide standards for determining which returns shall be filed on magnetic media or in other machine-readable form. The Franchise Tax Board may not require returns of any tax imposed by Part 10 (commencing with Section 17001) on estates and trusts to be other than on paper forms supplied by the Franchise Tax Board. In prescribing those regulations, the Franchise Tax Board shall take into account, among other relevant factors, the ability of the taxpayer to comply at a reasonable cost with that filing requirement.

(b)(1)Subdivision (a) is applicable only to taxpayers required to file returns on magnetic media or in other machine-readable form pursuant to Section 6011(e) of the Internal Revenue Code, relating to regulations requiring returns on magnetic media, and the regulations adopted thereto.

(2)For purposes of paragraph (1), the last sentence of Section 6011(e)(2) of the Internal Revenue Code, does not apply.

(3)In addition, the regulations under subdivision (a) shall not require that returns filed on magnetic media or in other machine-readable form contain more information than is required to be included in similar returns filed with the Internal Revenue Service under Section 6011(e) of the Internal Revenue Code and the regulations adopted thereto.

(c)In lieu of the magnetic media or other machine-readable form returns required by this section, a copy of the similar magnetic media or other machine-readable form returns filed with the Internal Revenue Service pursuant to Section 6011(e) of the Internal Revenue Code, and the regulations adopted thereto, may be filed with the Franchise Tax Board.