CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 978Introduced by Assembly Member Petrie-NorrisFebruary 21, 2019 An act to amend Section 18001 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 978, as introduced, Petrie-Norris. Personal income taxes: credit for taxes paid.The Personal Income Tax Law allows a credit against the net tax imposed by that law to residents for net income taxes paid to another state on income derived from sources within that state. This bill would provide that the determination of whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 18001 of the Revenue and Taxation Code is amended to read:18001. (a) Subject to the following conditions, residents shall be allowed a credit against the net tax (as defined by Section 17039) for net income taxes imposed by and paid to another state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income taxable under this part:(1) The credit shall be allowed only for taxes paid to the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income derived from sources within that state which is taxable under its laws irrespective of the residence or domicile of the recipient.This paragraph shall not apply to residents to whom subdivision (b) of Section 17014 applies.(2) The credit shall not be allowed if the other state allows residents of this state a credit against the taxes imposed by that state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) for net tax (as defined by Section 17039) paid or payable under this part.(3) The credit shall not exceed the proportion of the net tax (as defined by Section 17039) payable under this part as the income subject to tax in the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) and also taxable under this part bears to the taxpayers entire income upon which the net tax (as defined by Section 17039) is imposed by this part.(4) No credit shall be allowed under this section for any tax imposed by Section 17062.(b) For purposes of this section, the section: (1) The amount of net income taxes paid to another state shall include the taxpayers pro rata share of any taxes on, or according to, or measured by, income or profits paid or accrued, which were paid by an S corporation, as provided by Section 18006.(2) Whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.(c) For purposes of this section, income derived from sources within that state shall be determined by applying the nonresident sourcing rules for determining income from sources within this state, as specified in Chapter 11 (commencing with Section 17951), and the regulations thereunder.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 978Introduced by Assembly Member Petrie-NorrisFebruary 21, 2019 An act to amend Section 18001 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 978, as introduced, Petrie-Norris. Personal income taxes: credit for taxes paid.The Personal Income Tax Law allows a credit against the net tax imposed by that law to residents for net income taxes paid to another state on income derived from sources within that state. This bill would provide that the determination of whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 978
Introduced by Assembly Member Petrie-NorrisFebruary 21, 2019
Introduced by Assembly Member Petrie-Norris
February 21, 2019
An act to amend Section 18001 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 978, as introduced, Petrie-Norris. Personal income taxes: credit for taxes paid.
The Personal Income Tax Law allows a credit against the net tax imposed by that law to residents for net income taxes paid to another state on income derived from sources within that state. This bill would provide that the determination of whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.This bill would take effect immediately as a tax levy.
The Personal Income Tax Law allows a credit against the net tax imposed by that law to residents for net income taxes paid to another state on income derived from sources within that state.
This bill would provide that the determination of whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.
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. Section 18001 of the Revenue and Taxation Code is amended to read:18001. (a) Subject to the following conditions, residents shall be allowed a credit against the net tax (as defined by Section 17039) for net income taxes imposed by and paid to another state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income taxable under this part:(1) The credit shall be allowed only for taxes paid to the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income derived from sources within that state which is taxable under its laws irrespective of the residence or domicile of the recipient.This paragraph shall not apply to residents to whom subdivision (b) of Section 17014 applies.(2) The credit shall not be allowed if the other state allows residents of this state a credit against the taxes imposed by that state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) for net tax (as defined by Section 17039) paid or payable under this part.(3) The credit shall not exceed the proportion of the net tax (as defined by Section 17039) payable under this part as the income subject to tax in the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) and also taxable under this part bears to the taxpayers entire income upon which the net tax (as defined by Section 17039) is imposed by this part.(4) No credit shall be allowed under this section for any tax imposed by Section 17062.(b) For purposes of this section, the section: (1) The amount of net income taxes paid to another state shall include the taxpayers pro rata share of any taxes on, or according to, or measured by, income or profits paid or accrued, which were paid by an S corporation, as provided by Section 18006.(2) Whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.(c) For purposes of this section, income derived from sources within that state shall be determined by applying the nonresident sourcing rules for determining income from sources within this state, as specified in Chapter 11 (commencing with Section 17951), and the regulations thereunder.SEC. 2. 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. Section 18001 of the Revenue and Taxation Code is amended to read:18001. (a) Subject to the following conditions, residents shall be allowed a credit against the net tax (as defined by Section 17039) for net income taxes imposed by and paid to another state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income taxable under this part:(1) The credit shall be allowed only for taxes paid to the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income derived from sources within that state which is taxable under its laws irrespective of the residence or domicile of the recipient.This paragraph shall not apply to residents to whom subdivision (b) of Section 17014 applies.(2) The credit shall not be allowed if the other state allows residents of this state a credit against the taxes imposed by that state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) for net tax (as defined by Section 17039) paid or payable under this part.(3) The credit shall not exceed the proportion of the net tax (as defined by Section 17039) payable under this part as the income subject to tax in the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) and also taxable under this part bears to the taxpayers entire income upon which the net tax (as defined by Section 17039) is imposed by this part.(4) No credit shall be allowed under this section for any tax imposed by Section 17062.(b) For purposes of this section, the section: (1) The amount of net income taxes paid to another state shall include the taxpayers pro rata share of any taxes on, or according to, or measured by, income or profits paid or accrued, which were paid by an S corporation, as provided by Section 18006.(2) Whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.(c) For purposes of this section, income derived from sources within that state shall be determined by applying the nonresident sourcing rules for determining income from sources within this state, as specified in Chapter 11 (commencing with Section 17951), and the regulations thereunder.
SECTION 1. Section 18001 of the Revenue and Taxation Code is amended to read:
### SECTION 1.
18001. (a) Subject to the following conditions, residents shall be allowed a credit against the net tax (as defined by Section 17039) for net income taxes imposed by and paid to another state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income taxable under this part:(1) The credit shall be allowed only for taxes paid to the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income derived from sources within that state which is taxable under its laws irrespective of the residence or domicile of the recipient.This paragraph shall not apply to residents to whom subdivision (b) of Section 17014 applies.(2) The credit shall not be allowed if the other state allows residents of this state a credit against the taxes imposed by that state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) for net tax (as defined by Section 17039) paid or payable under this part.(3) The credit shall not exceed the proportion of the net tax (as defined by Section 17039) payable under this part as the income subject to tax in the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) and also taxable under this part bears to the taxpayers entire income upon which the net tax (as defined by Section 17039) is imposed by this part.(4) No credit shall be allowed under this section for any tax imposed by Section 17062.(b) For purposes of this section, the section: (1) The amount of net income taxes paid to another state shall include the taxpayers pro rata share of any taxes on, or according to, or measured by, income or profits paid or accrued, which were paid by an S corporation, as provided by Section 18006.(2) Whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.(c) For purposes of this section, income derived from sources within that state shall be determined by applying the nonresident sourcing rules for determining income from sources within this state, as specified in Chapter 11 (commencing with Section 17951), and the regulations thereunder.
18001. (a) Subject to the following conditions, residents shall be allowed a credit against the net tax (as defined by Section 17039) for net income taxes imposed by and paid to another state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income taxable under this part:(1) The credit shall be allowed only for taxes paid to the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income derived from sources within that state which is taxable under its laws irrespective of the residence or domicile of the recipient.This paragraph shall not apply to residents to whom subdivision (b) of Section 17014 applies.(2) The credit shall not be allowed if the other state allows residents of this state a credit against the taxes imposed by that state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) for net tax (as defined by Section 17039) paid or payable under this part.(3) The credit shall not exceed the proportion of the net tax (as defined by Section 17039) payable under this part as the income subject to tax in the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) and also taxable under this part bears to the taxpayers entire income upon which the net tax (as defined by Section 17039) is imposed by this part.(4) No credit shall be allowed under this section for any tax imposed by Section 17062.(b) For purposes of this section, the section: (1) The amount of net income taxes paid to another state shall include the taxpayers pro rata share of any taxes on, or according to, or measured by, income or profits paid or accrued, which were paid by an S corporation, as provided by Section 18006.(2) Whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.(c) For purposes of this section, income derived from sources within that state shall be determined by applying the nonresident sourcing rules for determining income from sources within this state, as specified in Chapter 11 (commencing with Section 17951), and the regulations thereunder.
18001. (a) Subject to the following conditions, residents shall be allowed a credit against the net tax (as defined by Section 17039) for net income taxes imposed by and paid to another state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income taxable under this part:(1) The credit shall be allowed only for taxes paid to the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income derived from sources within that state which is taxable under its laws irrespective of the residence or domicile of the recipient.This paragraph shall not apply to residents to whom subdivision (b) of Section 17014 applies.(2) The credit shall not be allowed if the other state allows residents of this state a credit against the taxes imposed by that state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) for net tax (as defined by Section 17039) paid or payable under this part.(3) The credit shall not exceed the proportion of the net tax (as defined by Section 17039) payable under this part as the income subject to tax in the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) and also taxable under this part bears to the taxpayers entire income upon which the net tax (as defined by Section 17039) is imposed by this part.(4) No credit shall be allowed under this section for any tax imposed by Section 17062.(b) For purposes of this section, the section: (1) The amount of net income taxes paid to another state shall include the taxpayers pro rata share of any taxes on, or according to, or measured by, income or profits paid or accrued, which were paid by an S corporation, as provided by Section 18006.(2) Whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.(c) For purposes of this section, income derived from sources within that state shall be determined by applying the nonresident sourcing rules for determining income from sources within this state, as specified in Chapter 11 (commencing with Section 17951), and the regulations thereunder.
18001. (a) Subject to the following conditions, residents shall be allowed a credit against the net tax (as defined by Section 17039) for net income taxes imposed by and paid to another state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income taxable under this part:
(1) The credit shall be allowed only for taxes paid to the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) on income derived from sources within that state which is taxable under its laws irrespective of the residence or domicile of the recipient.
This paragraph shall not apply to residents to whom subdivision (b) of Section 17014 applies.
(2) The credit shall not be allowed if the other state allows residents of this state a credit against the taxes imposed by that state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) for net tax (as defined by Section 17039) paid or payable under this part.
(3) The credit shall not exceed the proportion of the net tax (as defined by Section 17039) payable under this part as the income subject to tax in the other state (not including any preference, alternative, or minimum tax comparable to the tax imposed by Section 17062) and also taxable under this part bears to the taxpayers entire income upon which the net tax (as defined by Section 17039) is imposed by this part.
(4) No credit shall be allowed under this section for any tax imposed by Section 17062.
(b) For purposes of this section, the section:
(1) The amount of net income taxes paid to another state shall include the taxpayers pro rata share of any taxes on, or according to, or measured by, income or profits paid or accrued, which were paid by an S corporation, as provided by Section 18006.
(2) Whether taxes paid to another state are net income taxes shall be determined by reference to the actual method used to calculate the taxes paid by the taxpayer and without regard to the method used by other taxpayers.
(c) For purposes of this section, income derived from sources within that state shall be determined by applying the nonresident sourcing rules for determining income from sources within this state, as specified in Chapter 11 (commencing with Section 17951), and the regulations thereunder.
SEC. 2. 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. 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. 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.