AB 664

Bill Subjects

Abstract

The Corporation Tax Law imposes, among other taxes, taxes according to or measured by the net income of the taxpayer for the taxable year at specified rates, but not less than the minimum franchise tax of $800, as specified. Existing law imposes an annual minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law also imposes an annual tax in an amount equal to the minimum franchise tax on specified entities doing business in this state, as specified. Existing law imposes interest and penalties for failing to timely pay the tax due under those laws. This bill would, for taxable years beginning on or after January 1, 2020, suspend the payment requirement of the taxes imposed under the Corporation Tax Law and the annual tax for small businesses, as defined, until the state of emergency declared by the Governor on March 4, 2020, related to the COVID-19 virus, has ended. The bill would also suspend the accrual of any penalties or interest related to the payment of those taxes for the specified taxable years for small businesses. This bill would declare that it is to take effect immediately as an urgency statute.