Mark DeSaulnier
- Democratic
Author
(1) The Corporation Tax Law imposes taxes according to or measured by net income at a rate of 8.84%, or for financial institutions, at a rate of 10.84%, as specified. This bill 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 a 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. (2) Existing law establishes the California Competes Tax Credit Committee, which has specified duties in regard to tax credits for economic development. Existing law establishes the Governor's Office of Business and Economic Development, also known as "GO-Biz," to, among other duties, serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. The Corporation Tax Law allows various credits against the tax imposed by that law. This bill, for taxable years beginning on or after January 1, 2015, would allow a credit to a qualified taxpayer, as defined, in an amount as provided in a written agreement between GO-Biz and the qualified taxpayer, agreed upon by the committee, and based on specified factors, including the number of jobs the qualified taxpayer will create or retain in the state and the amount of investment in the state by the qualified taxpayer. The bill would limit the total amount of the credit available to an amount equal to the amount of revenue generated by the application of the above-referenced tax rates on publicly held corporations. The bill would also impose various duties upon GO-Biz, including the adoption of regulations. (3) This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.
Read third time. Refused passage. (Ayes 18. Noes 17. Page 4953.)
Read second time. Ordered to third reading.
Ordered to second reading.
Read third time and amended.
Motion to reconsider made by Senator DeSaulnier.
Reconsideration granted. (Ayes 36. Noes 0. Page 3667.)
Read third time. Refused passage. (Ayes 19. Noes 17. Page 3667.)
From committee: Do pass. (Ayes 5. Noes 2. Page 3715.) (May 23).
Read second time. Ordered to third reading.
Set for hearing May 23.
Placed on APPR. suspense file.
Set for hearing May 12.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 2. Page 3257.) (April 24).
From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F.
Set for hearing April 24.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
Read first time.
From printer. May be acted upon on or after March 24.
Introduced. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB1372 | HTML |
| 02/21/14 - Introduced | |
| 04/01/14 - Amended Senate | |
| 04/21/14 - Amended Senate | |
| 04/29/14 - Amended Senate | |
| 08/21/14 - Amended Senate |
| Document | Format |
|---|---|
| No related documents. |
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