California Assembly Bill AB2490 Amended / Bill

 BILL NUMBER: AB 2490AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 26, 2016 AMENDED IN ASSEMBLY APRIL 11, 2016 AMENDED IN ASSEMBLY MARCH 17, 2016 INTRODUCED BY Assembly Member Gatto FEBRUARY 19, 2016 An act to add Section 23714 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST AB 2490, as amended, Gatto. Corporation Tax Law: exemption: regulated investment company. Existing law, the Corporation Tax Law, generally conforms to the federal income tax laws that apply to a regulated investment company and further provides that for purposes of the Corporation Tax Law, its "net income" is equal to its "investment company income." Existing law exempts from tax under the Corporation Tax Law, various organizations including credit unions, fraternal societies, social welfare organizations, and labor organizations. This bill would  exempt from tax   provide that  under the Corporation Tax Law, a regulated investment company that is a mutual fund investment management company owned by investors in the mutual funds that it  serves.   serves is not subject to tax. The bill would authorize the Franchise Tax Board to promulgate regulations as necessary or appropriate to carry out this provision.  This bill would take effect immediately as a tax levy. 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 23714 is added to the Revenue and Taxation Code, to read: 23714.  (a)    Notwithstanding any other law, a regulated investment company, as defined in Section 851 of the Internal Revenue Code, relating to definition of regulated investment company, that is a mutual fund investment management company owned by  the  investors  of   in the  mutual  fund   funds  that it  serves.   serves is exempt from the taxes imposed by this part, except as provided in Article 2 (commencing with Section 23731).   (b) The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this section.  SEC. 2. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.