California Assembly Bill AB2230 Amended / Bill

 BILL NUMBER: AB 2230AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 5, 2010 INTRODUCED BY Assembly Member Charles Calderon FEBRUARY 18, 2010 An act to  amend Section 18639 of   add Section 19196 to  the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST AB 2230, as amended, Charles Calderon.  Franchise and income tax law: information returns.   Franchise Tax Board: administration: list: publicly traded corporations.   Existing income and corporation tax laws require the Franchise Tax Board to annually list the 250 largest tax delinquencies in excess of $100,000.   This bill would require the board to make available as a matter of public record and post on its Internet Web site by March 31, 2011, and annually thereafter, a list of the 100 largest publicly traded corporations, based on gross receipts, filing tax returns for a taxable year and with tax expenditures, as specified.   Existing law requires every person, who either makes payments of exempt-interest dividends, as specified, or receives payments of interest exempt from tax, as specified, as a nominee and makes payments to any person with respect to the interest received, to file an information return as prescribed by the Franchise Tax Board and to furnish a statement to each person named in the return.   This bill would make a technical, nonsubstantive change to that provision.  Vote: majority. Appropriation: no. Fiscal committee:  no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 19196 is added to the   Revenue and Taxation Code   , to read:   19196. (a) Notwithstanding any other provision of law, the Franchise Tax Board shall make available as a matter of public record and post on its Internet Web site by March 31, 2011, and annually thereafter, a list of the 100 largest publicly traded corporations, based on gross receipts, filing tax returns for a taxable year and with tax expenditures. The list shall commence with tax returns filed for taxable years beginning on or after January 1, 2008. (b) Each annual list as described in subdivision (a) shall include the following information for each corporation: (1) The name of the corporation. (2) The California corporation number. (3) The address of the principal office. (4) The aggregate amount of tax expenditures. (5) The effective tax rate. (c) For purposes of this section, the following definitions shall apply: (1) "Effective tax rate" means an amount, expressed as a percentage, determined by dividing the amount of taxes paid by a taxpayer for a taxable year by an amount equal to the sum of the following: (A) The taxable income of the taxpayer for the taxable year. (B) The tax expenditures of the taxpayer that were deducted by the taxpayer in arriving at the taxable income of the taxpayer for the taxable year. (2) "Tax expenditure" means tax expenditures as detailed in the California Income Tax Expenditures, Compendium of Individual Provisions Report, compiled by the Franchise Tax Board.   SECTION 1.   Section 18639 of the Revenue and Taxation Code is amended to read: 18639. (a) (1) In addition to those reports required under paragraph (8) of subdivision (c) of Section 18631, information returns shall be required, at the time and in the form and manner and to the extent that the Franchise Tax Board may prescribe, from both of the following: (A) Every person who makes payments of exempt-interest dividends, as described in Section 852(b)(5) of the Internal Revenue Code, that are not exempt-interest dividends, as described in Section 17145 of the Revenue and Taxation Code, aggregating ten dollars ($10) or more to any person, other than to any person described in paragraph (2), during any calendar year. (B) Every person who receives payments of interest as a nominee and who makes payments aggregating ten dollars ($10) or more during any calendar year to any other person, other than to any person described in paragraph (2), with respect to the interest so received. For purposes of this paragraph, "interest" is limited to interest on any obligation if the interest is exempt from tax under Section 103 (a) of the Internal Revenue Code or if the interest is exempt from tax, without regard to the identity of the holder, under any other provision of Title 26 of the United States Code, but which is not exempt from income tax under Part 10 (commencing with Section 17001). (2) For purposes of this subdivision, a person shall not be required to make a report pursuant to paragraph (1) if the person receiving the payment is any of the following: (A) A corporation. (B) An organization exempt from taxation under Section 23701 or an individual retirement plan. (C) The United States or any wholly owned agency or instrumentality thereof. (D) A state, the District of Columbia, a possession of the United States, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing. (E) A foreign government, a political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing. (F) An international organization or any wholly owned agency or instrumentality thereof. (G) A foreign central bank of issue. (H) A dealer in securities or commodities required to register under the laws of the United States or a state, the District of Columbia, or possession of the United States. (I) A real estate investment trust, as defined in Section 856 of the Internal Revenue Code. (J) An investment company, as defined in Section 80a-3 of the United States Code, registered at all times during the taxable year under the Investment Company Act of 1940. (K) A common trust fund, as defined in Section 17671. (L) Any trust that is exempt from tax under Section 664(c) of the Internal Revenue Code. (b) Every person required to make a return under this section shall also furnish a statement to each person whose name is set forth in the return, as required to do so by the Internal Revenue Code.