California Senate Bill SB1086 Latest Draft

 BILL NUMBER: SB 1086AMENDED BILL TEXT AMENDED IN SENATE APRIL 7, 2010 INTRODUCED BY Senator Florez FEBRUARY 17, 2010 An act to add Section 19567 to the Revenue and Taxation Code, relating to the Franchise Tax Board. LEGISLATIVE COUNSEL'S DIGEST SB 1086, as amended, Florez. Franchise Tax Board: tax expenditure reporting. Existing law authorizes the Franchise Tax Board, as part of its administrative duties with respect to the collection of taxes, to furnish specified taxpayer information. Existing law generally provides that all taxpayer information obtained by the board is to remain confidential. Existing law provides exceptions to this general requirement. This bill would, notwithstanding existing law, require the Franchise Tax Board to annually compile  specified  information relating to a  taxpayer   business entity, as defined,  receiving credits of $1,000  or more   ,  allowed from corporate tax expenditures  , as provided  . The bill would require the board to include the information  in the California Income Tax Expenditure Report and   on  the state transparency Internet Web site. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 19567 is added to the Revenue and Taxation Code, to read: 19567. (a) For purposes of this section, "corporate tax expenditure" means any exemption, credit, or deduction allowed under Part 11 (commencing with Section 23001) or otherwise available to a  corporation.   business entity. For purposes of this section, "business entity" means a corporation, limited liability company, partnership, association, joint venture, or public-private partnership.  (b) Notwithstanding any provision of law, the Franchise Tax Board shall annually compile all of the following information, commencing with information based on the 2010 taxable year  , which shall be included in the Department of Finance California Income Tax Expenditure Report  : (1) The name, mailing address, and California corporation number  of any taxpayer   when applicable of any business entity  receiving credits of one thousand dollars ($1,000)  or more  allowed from corporate tax expenditures. (2) The amount claimed by each  taxpayer   business entity  for the corporate tax expenditure.  (3) No individual or joint family taxpayer information shall be disclosed. For passthrough entities such as "S" corporations and limited liability companies owned by individuals, the information shall be reported at the level of the passthrough entity. If the passthrough entity is owned by a business entity or multiple business entities, then the information shall be reported at the level of that business entity or those business entities.  (c) The information collected by the Franchise Tax Board pursuant to subdivision (b) shall be included in  a timely manner on  the state Reporting Transparency in Government Internet Web site. (1) The information shall be  searchable by corporation   compiled on a credit-by-credit basis and searchable by business entity  name, corporation number  when available  , expenditure type, and key word. (2) Each report on the state Reporting Transparency in Government Internet Web site shall include all of the following information: (A) The  corporation's   business   entity's  name. (B) The California corporation number  , when applicable  . (C) The  expenditure granted   name of the tax credit claimed  .  (D) The amount of the tax credit claimed.   (D)   (E)  A description of the initial justification for the expenditure. (3) All data shall be available for download by the public  on the state Reporting Transparency in Government Internet Web site  in Excel or comparable  spreadsheet  format.