CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 259Introduced by Assembly Member DaviesJanuary 15, 2021 An act to add and repeal Section 23632 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 259, as introduced, Davies. Protecting Our Restaurants Tax Credit.The Corporation Tax Law allows various credits against the tax imposed by that law. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.This bill would allow a credit under the Corporation Tax Law for taxable years beginning on or after January 1, 2020, but before January 1, 2022, to a qualified taxpayer, as defined, in an amount equal to 50% of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license, as defined, during that taxable year. The bill would include additional information required for any bill authorizing a new income tax credit. The bill would also make related findings and declarations.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. This act shall be known, and may be cited, as the Protecting Our Restaurants Tax Credit.SEC. 2. The Legislature finds and declares both of the following:(a) Restaurants have faced a significant financial burden as a result of local ordinances closing businesses due to the COVID-19 pandemic.(b) Financial assistance must be provided to reduce the number of restaurants that must permanently close because of a lack of profit and wages earned as a result of fewer customers.SEC. 3. Section 23632 is added to the Revenue and Taxation Code, to read:23632. (a) For taxable years beginning on or after January 1, 2020, but before January 1, 2022, there shall be allowed a credit against the tax, as defined by Section 23036, an amount equal to 50 percent of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license during that taxable year.(b) For purposes of this section, both of the following definitions apply:(1) Alcohol license means a Type 41 or Type 47 license, as described in paragraphs (31) and (37), respectively, of subdivision (b) of Section 23320 of the Business and Professions Code.(2) Qualified taxpayer means an establishment that has received an alcohol license.(c) This credit shall be in lieu of any other deduction that the qualified taxpayer may otherwise claim pursuant to this part with respect to the costs paid or incurred by a taxpayer for an alcohol license or permit fee.(d) This section shall remain in effect only until December 1, 2022, and as of that date is repealed.SEC. 4. For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to 23632 of the Revenue and Taxation Code as added and repealed by this act (hereafter the credit), the Legislature finds and declares as follows:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To relieve part of the significant financial burden that restaurants have faced as a result of local ordinances closing businesses due to the COVID-19 pandemic.(2) To reduce the number of restaurants that must permanently close because of a lack of profit and wages earned due to fewer customers.(b) Detailed performance indicators for the Legislature to use in determining whether the credit meets those goals, purposes, and objectives shall be the number of taxpayers receiving the credit.(c) The Legislative Analyst shall collaborate with the Franchise Tax Board to review the effectiveness of the credit and shall publish its findings by December 1, 2023. The review shall include, but is not limited to, an analysis of the demand for the credit and the economic impact of the credit.(d) The data collection requirements for determining whether the credit is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives are as follows:(1) To assist the Legislature in determining whether the credit meets the goals, purposes, and objectives specified in subdivision (a), and in carrying out their duties under subdivision (c), the Legislative Analyst may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any data requested by the Legislative Analyst pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.SEC. 5. 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 20212022 REGULAR SESSION Assembly Bill No. 259Introduced by Assembly Member DaviesJanuary 15, 2021 An act to add and repeal Section 23632 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 259, as introduced, Davies. Protecting Our Restaurants Tax Credit.The Corporation Tax Law allows various credits against the tax imposed by that law. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.This bill would allow a credit under the Corporation Tax Law for taxable years beginning on or after January 1, 2020, but before January 1, 2022, to a qualified taxpayer, as defined, in an amount equal to 50% of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license, as defined, during that taxable year. The bill would include additional information required for any bill authorizing a new income tax credit. The bill would also make related findings and declarations.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 259
Introduced by Assembly Member DaviesJanuary 15, 2021
Introduced by Assembly Member Davies
January 15, 2021
An act to add and repeal Section 23632 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 259, as introduced, Davies. Protecting Our Restaurants Tax Credit.
The Corporation Tax Law allows various credits against the tax imposed by that law. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.This bill would allow a credit under the Corporation Tax Law for taxable years beginning on or after January 1, 2020, but before January 1, 2022, to a qualified taxpayer, as defined, in an amount equal to 50% of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license, as defined, during that taxable year. The bill would include additional information required for any bill authorizing a new income tax credit. The bill would also make related findings and declarations.This bill would take effect immediately as a tax levy.
The Corporation Tax Law allows various credits against the tax imposed by that law. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill would allow a credit under the Corporation Tax Law for taxable years beginning on or after January 1, 2020, but before January 1, 2022, to a qualified taxpayer, as defined, in an amount equal to 50% of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license, as defined, during that taxable year. The bill would include additional information required for any bill authorizing a new income tax credit. The bill would also make related findings and declarations.
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. This act shall be known, and may be cited, as the Protecting Our Restaurants Tax Credit.SEC. 2. The Legislature finds and declares both of the following:(a) Restaurants have faced a significant financial burden as a result of local ordinances closing businesses due to the COVID-19 pandemic.(b) Financial assistance must be provided to reduce the number of restaurants that must permanently close because of a lack of profit and wages earned as a result of fewer customers.SEC. 3. Section 23632 is added to the Revenue and Taxation Code, to read:23632. (a) For taxable years beginning on or after January 1, 2020, but before January 1, 2022, there shall be allowed a credit against the tax, as defined by Section 23036, an amount equal to 50 percent of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license during that taxable year.(b) For purposes of this section, both of the following definitions apply:(1) Alcohol license means a Type 41 or Type 47 license, as described in paragraphs (31) and (37), respectively, of subdivision (b) of Section 23320 of the Business and Professions Code.(2) Qualified taxpayer means an establishment that has received an alcohol license.(c) This credit shall be in lieu of any other deduction that the qualified taxpayer may otherwise claim pursuant to this part with respect to the costs paid or incurred by a taxpayer for an alcohol license or permit fee.(d) This section shall remain in effect only until December 1, 2022, and as of that date is repealed.SEC. 4. For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to 23632 of the Revenue and Taxation Code as added and repealed by this act (hereafter the credit), the Legislature finds and declares as follows:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To relieve part of the significant financial burden that restaurants have faced as a result of local ordinances closing businesses due to the COVID-19 pandemic.(2) To reduce the number of restaurants that must permanently close because of a lack of profit and wages earned due to fewer customers.(b) Detailed performance indicators for the Legislature to use in determining whether the credit meets those goals, purposes, and objectives shall be the number of taxpayers receiving the credit.(c) The Legislative Analyst shall collaborate with the Franchise Tax Board to review the effectiveness of the credit and shall publish its findings by December 1, 2023. The review shall include, but is not limited to, an analysis of the demand for the credit and the economic impact of the credit.(d) The data collection requirements for determining whether the credit is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives are as follows:(1) To assist the Legislature in determining whether the credit meets the goals, purposes, and objectives specified in subdivision (a), and in carrying out their duties under subdivision (c), the Legislative Analyst may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any data requested by the Legislative Analyst pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.SEC. 5. 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. This act shall be known, and may be cited, as the Protecting Our Restaurants Tax Credit.
SECTION 1. This act shall be known, and may be cited, as the Protecting Our Restaurants Tax Credit.
SECTION 1. This act shall be known, and may be cited, as the Protecting Our Restaurants Tax Credit.
### SECTION 1.
SEC. 2. The Legislature finds and declares both of the following:(a) Restaurants have faced a significant financial burden as a result of local ordinances closing businesses due to the COVID-19 pandemic.(b) Financial assistance must be provided to reduce the number of restaurants that must permanently close because of a lack of profit and wages earned as a result of fewer customers.
SEC. 2. The Legislature finds and declares both of the following:(a) Restaurants have faced a significant financial burden as a result of local ordinances closing businesses due to the COVID-19 pandemic.(b) Financial assistance must be provided to reduce the number of restaurants that must permanently close because of a lack of profit and wages earned as a result of fewer customers.
SEC. 2. The Legislature finds and declares both of the following:
### SEC. 2.
(a) Restaurants have faced a significant financial burden as a result of local ordinances closing businesses due to the COVID-19 pandemic.
(b) Financial assistance must be provided to reduce the number of restaurants that must permanently close because of a lack of profit and wages earned as a result of fewer customers.
SEC. 3. Section 23632 is added to the Revenue and Taxation Code, to read:23632. (a) For taxable years beginning on or after January 1, 2020, but before January 1, 2022, there shall be allowed a credit against the tax, as defined by Section 23036, an amount equal to 50 percent of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license during that taxable year.(b) For purposes of this section, both of the following definitions apply:(1) Alcohol license means a Type 41 or Type 47 license, as described in paragraphs (31) and (37), respectively, of subdivision (b) of Section 23320 of the Business and Professions Code.(2) Qualified taxpayer means an establishment that has received an alcohol license.(c) This credit shall be in lieu of any other deduction that the qualified taxpayer may otherwise claim pursuant to this part with respect to the costs paid or incurred by a taxpayer for an alcohol license or permit fee.(d) This section shall remain in effect only until December 1, 2022, and as of that date is repealed.
SEC. 3. Section 23632 is added to the Revenue and Taxation Code, to read:
### SEC. 3.
23632. (a) For taxable years beginning on or after January 1, 2020, but before January 1, 2022, there shall be allowed a credit against the tax, as defined by Section 23036, an amount equal to 50 percent of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license during that taxable year.(b) For purposes of this section, both of the following definitions apply:(1) Alcohol license means a Type 41 or Type 47 license, as described in paragraphs (31) and (37), respectively, of subdivision (b) of Section 23320 of the Business and Professions Code.(2) Qualified taxpayer means an establishment that has received an alcohol license.(c) This credit shall be in lieu of any other deduction that the qualified taxpayer may otherwise claim pursuant to this part with respect to the costs paid or incurred by a taxpayer for an alcohol license or permit fee.(d) This section shall remain in effect only until December 1, 2022, and as of that date is repealed.
23632. (a) For taxable years beginning on or after January 1, 2020, but before January 1, 2022, there shall be allowed a credit against the tax, as defined by Section 23036, an amount equal to 50 percent of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license during that taxable year.(b) For purposes of this section, both of the following definitions apply:(1) Alcohol license means a Type 41 or Type 47 license, as described in paragraphs (31) and (37), respectively, of subdivision (b) of Section 23320 of the Business and Professions Code.(2) Qualified taxpayer means an establishment that has received an alcohol license.(c) This credit shall be in lieu of any other deduction that the qualified taxpayer may otherwise claim pursuant to this part with respect to the costs paid or incurred by a taxpayer for an alcohol license or permit fee.(d) This section shall remain in effect only until December 1, 2022, and as of that date is repealed.
23632. (a) For taxable years beginning on or after January 1, 2020, but before January 1, 2022, there shall be allowed a credit against the tax, as defined by Section 23036, an amount equal to 50 percent of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license during that taxable year.(b) For purposes of this section, both of the following definitions apply:(1) Alcohol license means a Type 41 or Type 47 license, as described in paragraphs (31) and (37), respectively, of subdivision (b) of Section 23320 of the Business and Professions Code.(2) Qualified taxpayer means an establishment that has received an alcohol license.(c) This credit shall be in lieu of any other deduction that the qualified taxpayer may otherwise claim pursuant to this part with respect to the costs paid or incurred by a taxpayer for an alcohol license or permit fee.(d) This section shall remain in effect only until December 1, 2022, and as of that date is repealed.
23632. (a) For taxable years beginning on or after January 1, 2020, but before January 1, 2022, there shall be allowed a credit against the tax, as defined by Section 23036, an amount equal to 50 percent of the annual fee paid or incurred by an owner or operator of the qualified taxpayer for an alcohol license during that taxable year.
(b) For purposes of this section, both of the following definitions apply:
(1) Alcohol license means a Type 41 or Type 47 license, as described in paragraphs (31) and (37), respectively, of subdivision (b) of Section 23320 of the Business and Professions Code.
(2) Qualified taxpayer means an establishment that has received an alcohol license.
(c) This credit shall be in lieu of any other deduction that the qualified taxpayer may otherwise claim pursuant to this part with respect to the costs paid or incurred by a taxpayer for an alcohol license or permit fee.
(d) This section shall remain in effect only until December 1, 2022, and as of that date is repealed.
SEC. 4. For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to 23632 of the Revenue and Taxation Code as added and repealed by this act (hereafter the credit), the Legislature finds and declares as follows:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To relieve part of the significant financial burden that restaurants have faced as a result of local ordinances closing businesses due to the COVID-19 pandemic.(2) To reduce the number of restaurants that must permanently close because of a lack of profit and wages earned due to fewer customers.(b) Detailed performance indicators for the Legislature to use in determining whether the credit meets those goals, purposes, and objectives shall be the number of taxpayers receiving the credit.(c) The Legislative Analyst shall collaborate with the Franchise Tax Board to review the effectiveness of the credit and shall publish its findings by December 1, 2023. The review shall include, but is not limited to, an analysis of the demand for the credit and the economic impact of the credit.(d) The data collection requirements for determining whether the credit is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives are as follows:(1) To assist the Legislature in determining whether the credit meets the goals, purposes, and objectives specified in subdivision (a), and in carrying out their duties under subdivision (c), the Legislative Analyst may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any data requested by the Legislative Analyst pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
SEC. 4. For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to 23632 of the Revenue and Taxation Code as added and repealed by this act (hereafter the credit), the Legislature finds and declares as follows:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To relieve part of the significant financial burden that restaurants have faced as a result of local ordinances closing businesses due to the COVID-19 pandemic.(2) To reduce the number of restaurants that must permanently close because of a lack of profit and wages earned due to fewer customers.(b) Detailed performance indicators for the Legislature to use in determining whether the credit meets those goals, purposes, and objectives shall be the number of taxpayers receiving the credit.(c) The Legislative Analyst shall collaborate with the Franchise Tax Board to review the effectiveness of the credit and shall publish its findings by December 1, 2023. The review shall include, but is not limited to, an analysis of the demand for the credit and the economic impact of the credit.(d) The data collection requirements for determining whether the credit is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives are as follows:(1) To assist the Legislature in determining whether the credit meets the goals, purposes, and objectives specified in subdivision (a), and in carrying out their duties under subdivision (c), the Legislative Analyst may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any data requested by the Legislative Analyst pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
SEC. 4. For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to 23632 of the Revenue and Taxation Code as added and repealed by this act (hereafter the credit), the Legislature finds and declares as follows:
### SEC. 4.
(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:
(1) To relieve part of the significant financial burden that restaurants have faced as a result of local ordinances closing businesses due to the COVID-19 pandemic.
(2) To reduce the number of restaurants that must permanently close because of a lack of profit and wages earned due to fewer customers.
(b) Detailed performance indicators for the Legislature to use in determining whether the credit meets those goals, purposes, and objectives shall be the number of taxpayers receiving the credit.
(c) The Legislative Analyst shall collaborate with the Franchise Tax Board to review the effectiveness of the credit and shall publish its findings by December 1, 2023. The review shall include, but is not limited to, an analysis of the demand for the credit and the economic impact of the credit.
(d) The data collection requirements for determining whether the credit is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives are as follows:
(1) To assist the Legislature in determining whether the credit meets the goals, purposes, and objectives specified in subdivision (a), and in carrying out their duties under subdivision (c), the Legislative Analyst may request information from the Franchise Tax Board.
(2) (A) The Franchise Tax Board shall provide any data requested by the Legislative Analyst pursuant to this subdivision.
(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 5. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
### SEC. 5.