Today's Law As Amended


PDF |Add To My Favorites | print page

AB-1253 Personal income taxes: additional tax.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 17044 is added to the Revenue and Taxation Code, to read:

17044.
 (a) For each taxable year beginning on or after January 1, 2020, in addition to any other taxes imposed by this part or the California Constitution, an additional tax shall be imposed as follows:
(1) At the rate of 1 percent on that portion of a taxpayer’s taxable income over the adjusted one-million-dollar ($1,000,000) amount, but not over the adjusted two-million-dollar ($2,000,000) amount.
(2) At the rate of 3 percent on that portion of a taxpayer’s taxable income over the adjusted two-million-dollar ($2,000,000) amount, but not over the adjusted five-million-dollar ($5,000,000) amount.
(3) At the rate of 3.5 percent on that portion of a taxpayer’s taxable income over the adjusted five-million-dollar ($5,000,000) amount.
(b) For purposes of this part and Part 10.2 (commencing with Section 18401) of Division 2, the tax imposed under this section shall be treated as if imposed under Section 17041, including, but not limited to, the application of subdivisions (b) and (e) of Section 17041, except as follows:
(1) Section 17045 shall not apply.
(2) The tax imposed under this section shall apply without any adjustments to the income thresholds specified in subdivision (a) for filing status of the taxpayer.
(c) The adjusted one-million-dollar ($1,000,000) amount, adjusted two-million-dollar ($2,000,000) amount, and adjusted five-million-dollar ($5,000,000) amount specified in subdivision (a) shall be recomputed as provided in subdivision (h) of Section 17041 of the Revenue and Taxation Code for each taxable year beginning on and after January 1, 2021.
(d) For purposes of this section the following definitions shall apply:
(1) “Adjusted one-million-dollar ($1,000,000) amount” means the amount equal to one million one hundred eighty-one thousand four hundred eighty-four dollars ($1,181,484) that is recomputed by the Franchise Tax Board as provided in subdivision (h) of Section 17041 for taxable years beginning on and after January 1, 2020, and before January 1, 2021.
(2) “Adjusted two-million-dollar ($2,000,000) amount” means the amount equal to two times the adjusted one-million-dollar ($1,000,000) amount described in paragraph (1).
(3) “Adjusted five-million-dollar ($5,000,000) amount” means the amount equal to five million nine hundred seven thousand four hundred twenty dollars ($5,907,420) that is recomputed by the Franchise Tax Board as provided in subdivision (h) of Section 17041 for taxable years beginning on and after January 1, 2020, and before January 1, 2021.
SEC. 2.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.