Anthony Portantino
- Democratic
- Senator
- District 25
Author
Existing law, the Small Business Relief Act, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, authorizes a partnership or "S" corporation that meets certain other requirements to elect to pay an elective tax at a rate based on its net income, as specified, for the taxable year. The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of an entity that elects to pay the elective tax authorized by the Small Business Relief Act, in an amount equal to a specified percentage of the partner's, shareholder's, or member's pro rata share or distributive share, as applicable, of income subject to the elective tax paid by the entity. The Personal Income Tax Law provides a credit against the taxes imposed by that law, not to exceed the net tax, as defined, payable under that law, to residents for specified taxes paid to another state on income derived from sources within that state. This bill would, for taxable years beginning on or after January 1, 2022, and before January 1, 2026, increase the maximum credit allowed to residents for specified taxes paid to another state by the amount by which their net tax, as defined, is decreased by the credit allowed to a partner, shareholder, or member of an entity that elects to pay the elective tax authorized by the Small Business Relief Act. This bill would also make a nonsubstantive change to the Small Business Relief Act. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would state that the requirement for additional information in a bill authorizing a new tax expenditure does not apply in this case. This bill would take effect immediately as a tax levy.
Approved by the Governor.
Chaptered by Secretary of State. Chapter 705, Statutes of 2022.
Enrolled and presented to the Governor at 3 p.m.
Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5412.) Ordered to engrossing and enrolling.
In Senate. Concurrence in Assembly amendments pending.
Read third time. Passed. Ordered to the Senate.
From committee: Do pass. (Ayes 9. Noes 0.) (August 30).
Ordered to third reading.
Re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 77.2.
Read third time and amended.
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 16. Noes 0.) (August 11).
August 3 set for first hearing. Placed on suspense file.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (June 21). Re-referred to Com. on APPR.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 38. Noes 0. Page 3983.) Ordered to the Assembly.
Ordered to special consent calendar.
Read second time. Ordered to third reading.
Read second time and amended. Ordered to second reading.
From committee: Do pass as amended. (Ayes 7. Noes 0. Page 3771.) (May 19).
Set for hearing May 19.
April 4 hearing: Placed on APPR suspense file.
Set for hearing April 4.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0. Page 3060.) (March 9). Re-referred to Com. on APPR.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED.
Set for hearing March 9.
Art. IV. Sec. 8(a) of the Constitution dispensed with.
Joint Rule 55 suspended. (Ayes 31. Noes 6. Page 2880.)
(Ayes 31. Noes 6.)
From printer. May be acted upon on or after February 18.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB851 | HTML |
| 01/18/22 - Introduced | |
| 02/23/22 - Amended Senate | |
| 05/19/22 - Amended Senate | |
| 08/25/22 - Amended Assembly | |
| 09/07/22 - Enrolled | |
| 09/28/22 - Chaptered |
| Document | Format |
|---|---|
| 03/07/22- Senate Education | |
| 03/31/22- Senate Appropriations | |
| 05/19/22- Senate Appropriations | |
| 05/21/22- Sen. Floor Analyses | |
| 06/20/22- Assembly Higher Education | |
| 08/01/22- Assembly Appropriations | |
| 08/17/22- ASSEMBLY FLOOR ANALYSIS | |
| 08/29/22- Assembly Revenue and Taxation | |
| 08/31/22- ASSEMBLY FLOOR ANALYSIS | |
| 08/31/22- Sen. Floor Analyses |
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