Amended IN Assembly May 23, 2019 Amended IN Assembly April 01, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 136Introduced by Assembly Member Quirk-SilvaDecember 05, 2018An act to add Section 17275.4 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 136, as amended, Quirk-Silva. Personal Income Tax Law: deductions: charitable contributions. contributions: business expenses.The Personal Income Tax Law, in specified conformity to federal income tax laws, allows a charitable contribution deduction and a deduction for certain business expenses in computing tax liability.This bill, for taxable years beginning on or after January 1, 2014, would disallow a charitable contribution deduction for contributions made to a postsecondary institution or to the Key Worldwide Foundation Foundation, and a deduction for certain business expenses related to a payment to the Edge College and Career Network, LLC, by taxpayers who meet specified conditions, including that they are named in a any of several specified criminal complaint. complaints. The bill would also state the Legislatures intent to alert the Franchise Tax Board to certain unlawful deductions and would urge the Franchise Tax Board to investigate the unlawful activity and make deficiency assessments as provided by law.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.This bill would take effect immediately as a tax levy.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. It is the intent of the Legislature to alert the Franchise Tax Board to unlawful deductions that were taken in connection with contributions and payments made to the Key Worldwide Foundation and the Edge College and Career Network, LLC. In addition to those unlawful deductions taken by individuals on their personal income tax returns, there may have been unlawful deductions taken by corporations on their corporate income tax returns. The Legislature urges the Franchise Tax Board to investigate this unlawful activity and to make deficiency assessments as provided by law.SECTION 1.SEC. 2. Section 17275.4 is added to the Revenue and Taxation Code, to read:17275.4. (a) For taxable years beginning on or after January 1, 2014, a deduction for a charitable contribution to an educational organization that is a postsecondary institution or to the Key Worldwide Foundation, pursuant to Section 170 of the Internal Revenue Code, relating to charitable, etc., contributions and gifts, and a deduction for a business expense related to a payment to the Edge College and Career Network, LLC, pursuant to Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall not be allowed to a taxpayer who meets both all of the following conditions:(a)(1) They are named charged as a defendant in Criminal Complaint #19-Cr-10081, any of the following criminal complaints filed in the United States District Court for the District of Massachusetts. Massachusetts:(A) Criminal Complaint #19-CR-10081-IT.(B) Criminal Complaint #19-CR-10078-RWZ.(C) Criminal Complaint #19-CR-10075-MLW.(D) Criminal Complaint #19-CR-10074-NMG.(E) Criminal Complaint #19-cr-10079-RWZ.(F) Criminal Complaint #1:19-cr-10117.(G) Criminal Complaint #1:19-cr-10115.(H) Criminal Complaint #19-cr-10131.(I) Criminal Complaint #1:19-cr-10116.(J) Criminal Complaint #1-19-cr-10080.(b)(2) There is a final determination of their guilt with regard to a violation of any offense of Title 18 of the United States Code arising out of that criminal complaint.(3) There is a finding that they took the deduction unlawfully pursuant to the final determination of guilt described in paragraph (2), or pursuant to a determination by the Franchise Tax Board.(b) For purposes of this section, final determination of guilt means that the defendant has been convicted by verdict of a jury, accepted and recorded by the court, by a finding of the court in a case where a jury has been waived, or by a plea of guilty, and that the defendant has exhausted all appellate remedies.SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
Amended IN Assembly May 23, 2019 Amended IN Assembly April 01, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 136Introduced by Assembly Member Quirk-SilvaDecember 05, 2018An act to add Section 17275.4 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 136, as amended, Quirk-Silva. Personal Income Tax Law: deductions: charitable contributions. contributions: business expenses.The Personal Income Tax Law, in specified conformity to federal income tax laws, allows a charitable contribution deduction and a deduction for certain business expenses in computing tax liability.This bill, for taxable years beginning on or after January 1, 2014, would disallow a charitable contribution deduction for contributions made to a postsecondary institution or to the Key Worldwide Foundation Foundation, and a deduction for certain business expenses related to a payment to the Edge College and Career Network, LLC, by taxpayers who meet specified conditions, including that they are named in a any of several specified criminal complaint. complaints. The bill would also state the Legislatures intent to alert the Franchise Tax Board to certain unlawful deductions and would urge the Franchise Tax Board to investigate the unlawful activity and make deficiency assessments as provided by law.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.This bill would take effect immediately as a tax levy.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly May 23, 2019 Amended IN Assembly April 01, 2019
Amended IN Assembly May 23, 2019
Amended IN Assembly April 01, 2019
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 136
Introduced by Assembly Member Quirk-SilvaDecember 05, 2018
Introduced by Assembly Member Quirk-Silva
December 05, 2018
An act to add Section 17275.4 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 136, as amended, Quirk-Silva. Personal Income Tax Law: deductions: charitable contributions. contributions: business expenses.
The Personal Income Tax Law, in specified conformity to federal income tax laws, allows a charitable contribution deduction and a deduction for certain business expenses in computing tax liability.This bill, for taxable years beginning on or after January 1, 2014, would disallow a charitable contribution deduction for contributions made to a postsecondary institution or to the Key Worldwide Foundation Foundation, and a deduction for certain business expenses related to a payment to the Edge College and Career Network, LLC, by taxpayers who meet specified conditions, including that they are named in a any of several specified criminal complaint. complaints. The bill would also state the Legislatures intent to alert the Franchise Tax Board to certain unlawful deductions and would urge the Franchise Tax Board to investigate the unlawful activity and make deficiency assessments as provided by law.This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.This bill would take effect immediately as a tax levy.
The Personal Income Tax Law, in specified conformity to federal income tax laws, allows a charitable contribution deduction and a deduction for certain business expenses in computing tax liability.
This bill, for taxable years beginning on or after January 1, 2014, would disallow a charitable contribution deduction for contributions made to a postsecondary institution or to the Key Worldwide Foundation Foundation, and a deduction for certain business expenses related to a payment to the Edge College and Career Network, LLC, by taxpayers who meet specified conditions, including that they are named in a any of several specified criminal complaint. complaints. The bill would also state the Legislatures intent to alert the Franchise Tax Board to certain unlawful deductions and would urge the Franchise Tax Board to investigate the unlawful activity and make deficiency assessments as provided by law.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. It is the intent of the Legislature to alert the Franchise Tax Board to unlawful deductions that were taken in connection with contributions and payments made to the Key Worldwide Foundation and the Edge College and Career Network, LLC. In addition to those unlawful deductions taken by individuals on their personal income tax returns, there may have been unlawful deductions taken by corporations on their corporate income tax returns. The Legislature urges the Franchise Tax Board to investigate this unlawful activity and to make deficiency assessments as provided by law.SECTION 1.SEC. 2. Section 17275.4 is added to the Revenue and Taxation Code, to read:17275.4. (a) For taxable years beginning on or after January 1, 2014, a deduction for a charitable contribution to an educational organization that is a postsecondary institution or to the Key Worldwide Foundation, pursuant to Section 170 of the Internal Revenue Code, relating to charitable, etc., contributions and gifts, and a deduction for a business expense related to a payment to the Edge College and Career Network, LLC, pursuant to Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall not be allowed to a taxpayer who meets both all of the following conditions:(a)(1) They are named charged as a defendant in Criminal Complaint #19-Cr-10081, any of the following criminal complaints filed in the United States District Court for the District of Massachusetts. Massachusetts:(A) Criminal Complaint #19-CR-10081-IT.(B) Criminal Complaint #19-CR-10078-RWZ.(C) Criminal Complaint #19-CR-10075-MLW.(D) Criminal Complaint #19-CR-10074-NMG.(E) Criminal Complaint #19-cr-10079-RWZ.(F) Criminal Complaint #1:19-cr-10117.(G) Criminal Complaint #1:19-cr-10115.(H) Criminal Complaint #19-cr-10131.(I) Criminal Complaint #1:19-cr-10116.(J) Criminal Complaint #1-19-cr-10080.(b)(2) There is a final determination of their guilt with regard to a violation of any offense of Title 18 of the United States Code arising out of that criminal complaint.(3) There is a finding that they took the deduction unlawfully pursuant to the final determination of guilt described in paragraph (2), or pursuant to a determination by the Franchise Tax Board.(b) For purposes of this section, final determination of guilt means that the defendant has been convicted by verdict of a jury, accepted and recorded by the court, by a finding of the court in a case where a jury has been waived, or by a plea of guilty, and that the defendant has exhausted all appellate remedies.SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. It is the intent of the Legislature to alert the Franchise Tax Board to unlawful deductions that were taken in connection with contributions and payments made to the Key Worldwide Foundation and the Edge College and Career Network, LLC. In addition to those unlawful deductions taken by individuals on their personal income tax returns, there may have been unlawful deductions taken by corporations on their corporate income tax returns. The Legislature urges the Franchise Tax Board to investigate this unlawful activity and to make deficiency assessments as provided by law.
SECTION 1. It is the intent of the Legislature to alert the Franchise Tax Board to unlawful deductions that were taken in connection with contributions and payments made to the Key Worldwide Foundation and the Edge College and Career Network, LLC. In addition to those unlawful deductions taken by individuals on their personal income tax returns, there may have been unlawful deductions taken by corporations on their corporate income tax returns. The Legislature urges the Franchise Tax Board to investigate this unlawful activity and to make deficiency assessments as provided by law.
SECTION 1. It is the intent of the Legislature to alert the Franchise Tax Board to unlawful deductions that were taken in connection with contributions and payments made to the Key Worldwide Foundation and the Edge College and Career Network, LLC. In addition to those unlawful deductions taken by individuals on their personal income tax returns, there may have been unlawful deductions taken by corporations on their corporate income tax returns. The Legislature urges the Franchise Tax Board to investigate this unlawful activity and to make deficiency assessments as provided by law.
### SECTION 1.
SECTION 1.SEC. 2. Section 17275.4 is added to the Revenue and Taxation Code, to read:17275.4. (a) For taxable years beginning on or after January 1, 2014, a deduction for a charitable contribution to an educational organization that is a postsecondary institution or to the Key Worldwide Foundation, pursuant to Section 170 of the Internal Revenue Code, relating to charitable, etc., contributions and gifts, and a deduction for a business expense related to a payment to the Edge College and Career Network, LLC, pursuant to Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall not be allowed to a taxpayer who meets both all of the following conditions:(a)(1) They are named charged as a defendant in Criminal Complaint #19-Cr-10081, any of the following criminal complaints filed in the United States District Court for the District of Massachusetts. Massachusetts:(A) Criminal Complaint #19-CR-10081-IT.(B) Criminal Complaint #19-CR-10078-RWZ.(C) Criminal Complaint #19-CR-10075-MLW.(D) Criminal Complaint #19-CR-10074-NMG.(E) Criminal Complaint #19-cr-10079-RWZ.(F) Criminal Complaint #1:19-cr-10117.(G) Criminal Complaint #1:19-cr-10115.(H) Criminal Complaint #19-cr-10131.(I) Criminal Complaint #1:19-cr-10116.(J) Criminal Complaint #1-19-cr-10080.(b)(2) There is a final determination of their guilt with regard to a violation of any offense of Title 18 of the United States Code arising out of that criminal complaint.(3) There is a finding that they took the deduction unlawfully pursuant to the final determination of guilt described in paragraph (2), or pursuant to a determination by the Franchise Tax Board.(b) For purposes of this section, final determination of guilt means that the defendant has been convicted by verdict of a jury, accepted and recorded by the court, by a finding of the court in a case where a jury has been waived, or by a plea of guilty, and that the defendant has exhausted all appellate remedies.
SECTION 1.SEC. 2. Section 17275.4 is added to the Revenue and Taxation Code, to read:
### SECTION 1.SEC. 2.
17275.4. (a) For taxable years beginning on or after January 1, 2014, a deduction for a charitable contribution to an educational organization that is a postsecondary institution or to the Key Worldwide Foundation, pursuant to Section 170 of the Internal Revenue Code, relating to charitable, etc., contributions and gifts, and a deduction for a business expense related to a payment to the Edge College and Career Network, LLC, pursuant to Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall not be allowed to a taxpayer who meets both all of the following conditions:(a)(1) They are named charged as a defendant in Criminal Complaint #19-Cr-10081, any of the following criminal complaints filed in the United States District Court for the District of Massachusetts. Massachusetts:(A) Criminal Complaint #19-CR-10081-IT.(B) Criminal Complaint #19-CR-10078-RWZ.(C) Criminal Complaint #19-CR-10075-MLW.(D) Criminal Complaint #19-CR-10074-NMG.(E) Criminal Complaint #19-cr-10079-RWZ.(F) Criminal Complaint #1:19-cr-10117.(G) Criminal Complaint #1:19-cr-10115.(H) Criminal Complaint #19-cr-10131.(I) Criminal Complaint #1:19-cr-10116.(J) Criminal Complaint #1-19-cr-10080.(b)(2) There is a final determination of their guilt with regard to a violation of any offense of Title 18 of the United States Code arising out of that criminal complaint.(3) There is a finding that they took the deduction unlawfully pursuant to the final determination of guilt described in paragraph (2), or pursuant to a determination by the Franchise Tax Board.(b) For purposes of this section, final determination of guilt means that the defendant has been convicted by verdict of a jury, accepted and recorded by the court, by a finding of the court in a case where a jury has been waived, or by a plea of guilty, and that the defendant has exhausted all appellate remedies.
17275.4. (a) For taxable years beginning on or after January 1, 2014, a deduction for a charitable contribution to an educational organization that is a postsecondary institution or to the Key Worldwide Foundation, pursuant to Section 170 of the Internal Revenue Code, relating to charitable, etc., contributions and gifts, and a deduction for a business expense related to a payment to the Edge College and Career Network, LLC, pursuant to Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall not be allowed to a taxpayer who meets both all of the following conditions:(a)(1) They are named charged as a defendant in Criminal Complaint #19-Cr-10081, any of the following criminal complaints filed in the United States District Court for the District of Massachusetts. Massachusetts:(A) Criminal Complaint #19-CR-10081-IT.(B) Criminal Complaint #19-CR-10078-RWZ.(C) Criminal Complaint #19-CR-10075-MLW.(D) Criminal Complaint #19-CR-10074-NMG.(E) Criminal Complaint #19-cr-10079-RWZ.(F) Criminal Complaint #1:19-cr-10117.(G) Criminal Complaint #1:19-cr-10115.(H) Criminal Complaint #19-cr-10131.(I) Criminal Complaint #1:19-cr-10116.(J) Criminal Complaint #1-19-cr-10080.(b)(2) There is a final determination of their guilt with regard to a violation of any offense of Title 18 of the United States Code arising out of that criminal complaint.(3) There is a finding that they took the deduction unlawfully pursuant to the final determination of guilt described in paragraph (2), or pursuant to a determination by the Franchise Tax Board.(b) For purposes of this section, final determination of guilt means that the defendant has been convicted by verdict of a jury, accepted and recorded by the court, by a finding of the court in a case where a jury has been waived, or by a plea of guilty, and that the defendant has exhausted all appellate remedies.
17275.4. (a) For taxable years beginning on or after January 1, 2014, a deduction for a charitable contribution to an educational organization that is a postsecondary institution or to the Key Worldwide Foundation, pursuant to Section 170 of the Internal Revenue Code, relating to charitable, etc., contributions and gifts, and a deduction for a business expense related to a payment to the Edge College and Career Network, LLC, pursuant to Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall not be allowed to a taxpayer who meets both all of the following conditions:(a)(1) They are named charged as a defendant in Criminal Complaint #19-Cr-10081, any of the following criminal complaints filed in the United States District Court for the District of Massachusetts. Massachusetts:(A) Criminal Complaint #19-CR-10081-IT.(B) Criminal Complaint #19-CR-10078-RWZ.(C) Criminal Complaint #19-CR-10075-MLW.(D) Criminal Complaint #19-CR-10074-NMG.(E) Criminal Complaint #19-cr-10079-RWZ.(F) Criminal Complaint #1:19-cr-10117.(G) Criminal Complaint #1:19-cr-10115.(H) Criminal Complaint #19-cr-10131.(I) Criminal Complaint #1:19-cr-10116.(J) Criminal Complaint #1-19-cr-10080.(b)(2) There is a final determination of their guilt with regard to a violation of any offense of Title 18 of the United States Code arising out of that criminal complaint.(3) There is a finding that they took the deduction unlawfully pursuant to the final determination of guilt described in paragraph (2), or pursuant to a determination by the Franchise Tax Board.(b) For purposes of this section, final determination of guilt means that the defendant has been convicted by verdict of a jury, accepted and recorded by the court, by a finding of the court in a case where a jury has been waived, or by a plea of guilty, and that the defendant has exhausted all appellate remedies.
17275.4. (a) For taxable years beginning on or after January 1, 2014, a deduction for a charitable contribution to an educational organization that is a postsecondary institution or to the Key Worldwide Foundation, pursuant to Section 170 of the Internal Revenue Code, relating to charitable, etc., contributions and gifts, and a deduction for a business expense related to a payment to the Edge College and Career Network, LLC, pursuant to Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall not be allowed to a taxpayer who meets both all of the following conditions:
(a)
(1) They are named charged as a defendant in Criminal Complaint #19-Cr-10081, any of the following criminal complaints filed in the United States District Court for the District of Massachusetts. Massachusetts:
(A) Criminal Complaint #19-CR-10081-IT.
(B) Criminal Complaint #19-CR-10078-RWZ.
(C) Criminal Complaint #19-CR-10075-MLW.
(D) Criminal Complaint #19-CR-10074-NMG.
(E) Criminal Complaint #19-cr-10079-RWZ.
(F) Criminal Complaint #1:19-cr-10117.
(G) Criminal Complaint #1:19-cr-10115.
(H) Criminal Complaint #19-cr-10131.
(I) Criminal Complaint #1:19-cr-10116.
(J) Criminal Complaint #1-19-cr-10080.
(b)
(2) There is a final determination of their guilt with regard to a violation of any offense of Title 18 of the United States Code arising out of that criminal complaint.
(3) There is a finding that they took the deduction unlawfully pursuant to the final determination of guilt described in paragraph (2), or pursuant to a determination by the Franchise Tax Board.
(b) For purposes of this section, final determination of guilt means that the defendant has been convicted by verdict of a jury, accepted and recorded by the court, by a finding of the court in a case where a jury has been waived, or by a plea of guilty, and that the defendant has exhausted all appellate remedies.
SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 2.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
### SEC. 2.SEC. 3.