California Assembly Bill AB2666 Amended / Bill

 BILL NUMBER: AB 2666AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 27, 2010 AMENDED IN ASSEMBLY APRIL 8, 2010 INTRODUCED BY Assembly Member Skinner FEBRUARY 19, 2010 An act to add Sections 19571 and  19185   19188  to the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST AB 2666, as amended, Skinner. Income taxes: Franchise Tax Board:  business credits   tax expenditures  : Reporting Transparency in Government Internet Web site. The Personal Income Tax Law and the Corporation Tax Law authorize various credits  against   , deductions, exclusions, exemptions, and other tax benefits with respect to  the taxes imposed by those laws  , including business credits, as defined  . This bill would require a taxpayer doing business in this state that claims any tax expenditure  in the form of a business credit   under the Personal Income Tax Law and the Corporation Tax Law  to submit, under penalty of perjury, to the Franchise Tax Board specified information, including, among other things, the amount of tax  credits   expenditures  claimed by the taxpayer on the return for each  credit   tax expenditure  authorized under  the Personal Income Tax Law and the Corporation Tax Law   those laws  . By requiring taxpayers to submit this information under penalty of perjury, this bill would expand the circumstances under which a person may be convicted of the crime of perjury and thereby impose a state-mandated local program. This bill would require the board to annually compile the information received, commencing with information based on  the 2010 taxable year   taxable years beginning January 1, 2010  , and would require, beginning on March 30, 2012, and each March 30th thereafter, the board to submit the information to the State Chief Information Officer for publication on the Reporting Transparency in Government Internet Web site. This bill would require the  State Chief Information Officer to develop on the  Reporting Transparency in Government Internet Web site  to include  a searchable database of that information, as specified. This bill would also impose a penalty  of   equal to  1% of the  credit   aggregate amount of tax expenditures  claimed for each failure to file the required information, as specified. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 19571 is added to the Revenue and Taxation Code, to read: 19571. (a) Notwithstanding any other law, a taxpayer doing business in this state that claims any tax expenditure  in the form of a business credit  shall submit to the Franchise Tax Board the following information annually when filing the annual return required under Part 10.2 (commencing with Section 18410):   18401):  (1) The number of full-time employees, as defined, part-time employees, and temporary employees employed by the taxpayer in this state. (2) The amount of tax  credits   expenditures  claimed by the taxpayer on the return for each tax  credit   expenditure  authorized under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001).  (3) The number of full-time jobs, part-time jobs, and temporary jobs created by the tax credit.   (4) A list of occupations, job classifications, and expected average wages for the full-time jobs, part-time jobs, and temporary jobs created by the tax credit.   (3) A list of occupations, job classifications, and average wages for the full-time employees, part-time employees, and temporary employees employed by the taxpayer.   (5)   (4)  A certification by the taxpayer, signed under penalty of perjury, that the information is true and correct and contains no knowing misrepresentation.  (6)   (5)  The taxpayer's office mailing address and office telephone number.  (b) For purposes of this section, a "business credit" means any credit against "net tax," as defined in Section 17039, or any credit against the "tax," as defined in Section 23036, allowed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001), other than credits allowed under the following sections:   (1) Section 17052.6 (relating to household and dependent care).   (2) Sections 17052.17 and 23617 (relating to employer's child care assistance).   (3) Section 23617.5 (relating to employer's credit for contribution to care plan).   (4) Section 17052.18 (relating to qualified dependent care plan).   (5) Section 17052.25 (relating to adoption costs).   (6) Section 17053.5 (relating to renters' tax credit).   (7) Sections 17053.30 and 23630 (relating to donations of conservation land).   (8) Sections 17053.42 and 23642 (relating to disabled access expenditures).   (9) Section 17054 (relating to personal, dependent, blind and senior exemptions).   (10) Section 17054.5 (relating to joint custody head of household).   (11) Section 17054.7 (relating to senior head of household).   (12) Section 17055 (relating to non-resident pro ration of exemption credits).   (13) Section 17061 (relating to refunds pursuant to the Unemployment Insurance Code).   (b) For purposes of this section, all of the following shall apply:   (1) "Full-time employee" means an employee who works an average of 35 hours in a week, or more, calculated monthly.   (2) "Part-time employee" means an employee who works less than an average of 35 hours in a week calculated monthly.   (3) "Tax expenditure" means a tax expenditure listed in the California Income Tax Expenditures Report published by the Franchise Tax Board each year, and any credit, deduction, exclusion, exemption, or any other tax benefit provided by the state that is enacted after the report is published and that is not included in the report.   (4) "Temporary employee" means an employee who works fewer than 120 days each year.  (c) (1) Notwithstanding any other law, including Section 6254.21 of the Government Code, the Franchise Tax Board shall annually compile the information received pursuant to this section, commencing with information based on  the 2010 taxable year   taxable years beginning January 1, 2010  . (2) Beginning on March 30, 2012, and each March 30th thereafter, the Franchise Tax Board shall submit the information to the State Chief Information Officer for publication on the Reporting Transparency in Government Internet Web site. (d) The  Reporting Transparency in Government Internet Web site shall include a database searchable   State Chief Information Officer shall develop on the Reporting Transparency in Government Internet Web site a searchable database  by company name, amount of tax expenditure, or any other criteria necessary to increase public awareness of the amount and scope of tax expenditures for businesses in this state.  SEC. 2.   Section 19185 is added to the Revenue and Taxation Code, to read: 19185.   SEC. 2.   Section 19188 is added to the   Revenue and Taxation Code   , to read:   19188.  A penalty  of one percent of the credit   equal to 1 percent of the aggregate amount of tax expenditures  claimed shall be imposed for each failure to file the required information under subdivision (a) of Section 19571, unless it is shown that the failure is due to reasonable cause and not due to willful neglect. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.