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AB-2690 Employment Development Department: Franchise Tax Board: report: payroll charge.(2017-2018)

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Date Published: 03/23/2018 04:00 AM
AB2690:v98#DOCUMENT

Amended  IN  Assembly  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 2690


Introduced by Assembly Member Burke

February 15, 2018


An act to amend Section 17026 of the Revenue and Taxation Code, relating to taxation. add and repeal Section 330 of the Unemployment Insurance Code, relating to payroll.


LEGISLATIVE COUNSEL'S DIGEST


AB 2690, as amended, Burke. Personal Income Tax. Employment Development Department: Franchise Tax Board: report: payroll charge.
Existing law requires the Employment Development Department within the Labor and Workforce Development Agency to administer various programs, including the state unemployment and disability compensation programs, and perform duties relating to income tax withholding. Existing law creates the Franchise Tax Board, which administers and collects income taxes.
This bill would require the Employment Development Department and the Franchise Tax Board to develop a written report, by July 1, 2019, to be submitted to the Legislature with recommendations for the enactment of a voluntary payroll charge imposed on employers.

The Personal Income Tax Law imposes taxes on taxable income, as provided. That law specifies that it applies to the taxable income of taxpayers received or accrued on or after January 1, 1935.

This bill would make nonsubstantive changes to that provision of the Personal Income Tax Law.

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

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


SECTION 1.

 Section 330 is added to the Unemployment Insurance Code, to read:

330.
 (a) The Employment Development Department and the Franchise Tax Board shall develop a written report, by July 1, 2019, to be submitted to the Legislature with recommendations for the enactment of a voluntary payroll charge imposed on employers.
(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2023.

SECTION 1.Section 17026 of the Revenue and Taxation Code is amended to read:
17026.

The provisions of this part apply to the taxable income of taxpayers received or accrued on or after January 1, 1935.