Below are a few major tax bills we are following that will be considered today on the Suspense Files.

SB 1017 (Evans) Oil and gas severance tax

Would establish the California Higher Education Endowment Corporation (CHEEC) in state government. The bill would establish an oversight board to govern the CHEEC, and would require that board to appoint the chief executive officer of the CHEEC. The bill would require the CHEEC to annually allocate the moneys in the continuously appropriated California Higher Education Fund, which would be created by the bill, first to the Controller, and second to the California Community Colleges, the California State University, the University of California, the Department of Parks and Recreation, and to the California Health and Human Services Agency, in specified proportions and for expenditure as provided. — OPPOSE

SB 1372 (DeSaulnier) Publicly-traded corporate tax rates

Would, for taxable years beginning on and after January 1, 2015, revise that rate for taxpayers that are publicly held corporations, as defined, and instead impose an applicable tax rate from 7% to 13%, or for financial institutions, from 9% to 15%, based on the compensation ratio, as defined, of the corporation. This bill would increase the applicable tax rate by 50% for those taxpayers that have a specified decrease in full-time employees employed in the United States as compared to an increase in contracted and foreign full-time employees, as described. This bill contains other related provisions and other existing laws.  — OPPOSE

AB 1564 (V.Perez) R&D tax credit

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including a credit for a percentage of specified research expenses. This bill would increase that percentage by 3% each taxable year for 5 taxable years and then return to the current rate. — SUPPORT

AB 1777 (Quirk-Silva) Timeliness penalty abatement

Would require the Franchise Tax Board, upon request of a qualified taxpayer, as defined , to abate a failure-to-file or failure-to-pay timeliness penalty when specified circumstances are met, including where the qualified taxpayer has paid, or is in a current arrangement to pay, all tax currently due and the Franchise Tax Board has not imposed a timeliness penalty in the year of the request or prior 4 years.  — MONITOR

AB 1984 (Harkey) NOL carrybacks

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. This bill would conform to those federal provisions – SUPPORT.

AB 2109 (Daly) Parcel taxes report

Current law requires the Controller to compile and publish reports of the financial transactions of each county, city, and special district within this state, together with any other matter he or she deems of public interest. This bill would additionally require the Controller to include specified information in those local government financial transaction reports relating to the imposition of locally assessed parcel taxes, including, among other things, the type and rate of a parcel tax and the number of parcels subject to or exempt from the parcel tax. — SUPPORT

AB 2372 (Ammiano) Change of ownership –

Current property tax law defines “affiliated group” to mean one or more chains of corporations connected through stock ownership with a common parent corporation if certain conditions are met, including, among others, that the common parent corporation owns, directly, 100% of the voting stock of at least one of the other corporations. This bill would lower the percentage of voting stock of at least one of the other corporations required to be directly owned by the common parent corporation from 100% to 90%. – MON/SUPP – Working with Chair of Rev & Tax on New Amendments

AB 2415 (Ting) Property tax agents

Would, commencing September 1, 2015, prohibit a property tax agent, defined as any individual who is employed, under contract, or otherwise receives compensation, from communicating directly with any county official for the purpose of influencing official action relating to the establishment of a taxable value for any property subject to taxation, and from representing a taxpayer before a county official, without first being registered and issued a registration number by the Secretary of State. This bill contains other related provisions. — MON/OPP

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