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| 1 | + | Amended IN Senate April 28, 2022 Amended IN Senate March 16, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1293Introduced by Senator BradfordFebruary 18, 2022An act to add and repeal Sections 17053.82 and 23682 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 1293, as amended, Bradford. Income taxation: credits: cannabis: equity applicants and licensees. The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing federal law imposes an income tax upon every corporation, except as specified, and prohibits the allowance of a deduction or credit for any amount paid or incurred during the taxable year in carrying on any trade or business consisting of trafficking in controlled substances, including cannabis.This bill, under both laws, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit to a cannabis equity applicant or licensee, as defined, in an amount equal to the amount of business expenses the equity applicant or licensee could not deduct or claim as a credit for that taxable year under federal law because the amount was disallowed in connection with the trafficking of controlled substances. $10,000.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill would include additional information required for any bill authorizing a new tax expenditure. 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. The Legislature makes the following findings and declarations:(a) The War on Drugs has harmed individuals and communities, particularly communities of color.(b) The Legislature has taken actions to assist individuals and communities harmed by past criminal prohibition related to cannabis as a way of righting past wrongs. And yet, many cannabis businesses owned by equity licensees still struggle to turn a profit and keep their doors open.(c) The challenge is made worse because federal law under Section 280E of Title 26 of the United States Code does not allow deduction or credit for any amount paid or incurred during the taxable year in carrying on a trade or business that consists of trafficking in controlled substances prohibited by federal or state law. The federal Controlled Substances Act, in turn, lists cannabis as a Schedule I controlled substance.(d) It is the intent of the Legislature to help equity licensees obtain a personal income or corporate tax credit that would be equal, or in some proportion, to the normal business expenses that they would otherwise have been able to write off on their federal taxes, but for federal law. Doing so will make the business tax structure more fair for licensees that meet the definition of equity and will support cannabis businesses to succeed. credit.SEC. 2. Section 17053.82 is added to the Revenue and Taxation Code, to read:17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 23682 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. SEC. 3. Section 23682 is added to the Revenue and Taxation Code, to read:23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 17053.82 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed.SEC. 4. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credits will achieve include all of the following:(1)Provide cannabis equity applicants and licensees the ability to claim a credit for ordinary business deductions and credits from taxable income in the same manner that would otherwise be permitted under federal law but for the fact that cannabis is determined to be a controlled substance under federal law.(2)(1) Provide relief for individuals who are low income or who have directly or indirectly been negatively impacted by past cannabis policies.(3)(2) Assist cannabis equity applicants and licensees to stay in business or grow their business.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goals, purposes, and objectives described in subdivision (a) are the number of credits claimed and the total dollar amount of credits claimed.(c) (1)The Franchise Tax Board shall analyze the performance indicators in subdivision (b) for each taxable year and shall report its findings, on or before July 31, 2023, and annually thereafter, in compliance with Section 9795 of the Government Code, to the Legislature.(2) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 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. | |
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| 3 | + | Amended IN Senate April 28, 2022 Amended IN Senate March 16, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1293Introduced by Senator BradfordFebruary 18, 2022An act to add and repeal Sections 17053.82 and 23682 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 1293, as amended, Bradford. Income taxation: credits: cannabis: equity applicants and licensees. The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing federal law imposes an income tax upon every corporation, except as specified, and prohibits the allowance of a deduction or credit for any amount paid or incurred during the taxable year in carrying on any trade or business consisting of trafficking in controlled substances, including cannabis.This bill, under both laws, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit to a cannabis equity applicant or licensee, as defined, in an amount equal to the amount of business expenses the equity applicant or licensee could not deduct or claim as a credit for that taxable year under federal law because the amount was disallowed in connection with the trafficking of controlled substances. $10,000.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Senate April 28, 2022 Amended IN Senate March 16, 2022 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly June 22, 2022 | |
| 8 | 7 | Amended IN Senate April 28, 2022 | |
| 9 | 8 | Amended IN Senate March 16, 2022 | |
| 10 | 9 | ||
| 11 | 10 | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION | |
| 12 | 11 | ||
| 13 | 12 | Senate Bill | |
| 14 | 13 | ||
| 15 | 14 | No. 1293 | |
| 16 | 15 | ||
| 17 | 16 | Introduced by Senator BradfordFebruary 18, 2022 | |
| 18 | 17 | ||
| 19 | 18 | Introduced by Senator Bradford | |
| 20 | 19 | February 18, 2022 | |
| 21 | 20 | ||
| 22 | 21 | An act to add and repeal Sections 17053.82 and 23682 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 23 | 22 | ||
| 24 | 23 | LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 24 | ||
| 26 | 25 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 27 | 26 | ||
| 28 | 27 | SB 1293, as amended, Bradford. Income taxation: credits: cannabis: equity applicants and licensees. | |
| 29 | 28 | ||
| 30 | - | The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing federal law imposes an income tax upon every corporation, except as specified, and prohibits the allowance of a deduction or credit for any amount paid or incurred during the taxable year in carrying on any trade or business consisting of trafficking in controlled substances, including cannabis.This bill, under both laws, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit to a cannabis equity applicant or licensee, as defined, | |
| 29 | + | The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing federal law imposes an income tax upon every corporation, except as specified, and prohibits the allowance of a deduction or credit for any amount paid or incurred during the taxable year in carrying on any trade or business consisting of trafficking in controlled substances, including cannabis.This bill, under both laws, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit to a cannabis equity applicant or licensee, as defined, in an amount equal to the amount of business expenses the equity applicant or licensee could not deduct or claim as a credit for that taxable year under federal law because the amount was disallowed in connection with the trafficking of controlled substances. $10,000.Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy. | |
| 31 | 30 | ||
| 32 | 31 | The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. | |
| 33 | 32 | ||
| 34 | 33 | The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. | |
| 35 | 34 | ||
| 36 | 35 | Existing federal law imposes an income tax upon every corporation, except as specified, and prohibits the allowance of a deduction or credit for any amount paid or incurred during the taxable year in carrying on any trade or business consisting of trafficking in controlled substances, including cannabis. | |
| 37 | 36 | ||
| 38 | - | This bill, under both laws, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit to a cannabis equity applicant or licensee, as defined, | |
| 37 | + | This bill, under both laws, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit to a cannabis equity applicant or licensee, as defined, in an amount equal to the amount of business expenses the equity applicant or licensee could not deduct or claim as a credit for that taxable year under federal law because the amount was disallowed in connection with the trafficking of controlled substances. $10,000. | |
| 39 | 38 | ||
| 40 | 39 | Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. | |
| 41 | 40 | ||
| 42 | 41 | This bill would include additional information required for any bill authorizing a new tax expenditure. | |
| 43 | 42 | ||
| 44 | 43 | This bill would take effect immediately as a tax levy. | |
| 45 | 44 | ||
| 46 | 45 | ## Digest Key | |
| 47 | 46 | ||
| 48 | 47 | ## Bill Text | |
| 49 | 48 | ||
| 50 | - | The people of the State of California do enact as follows:SECTION 1. The Legislature makes the following findings and declarations:(a) The War on Drugs has harmed individuals and communities, particularly communities of color.(b) The Legislature has taken actions to assist individuals and communities harmed by past criminal prohibition related to cannabis as a way of righting past wrongs. And yet, many cannabis businesses owned by equity licensees still struggle to turn a profit and keep their doors open.(c) The challenge is made worse because federal law under Section 280E of Title 26 of the United States Code does not allow deduction or credit for any amount paid or incurred during the taxable year in carrying on a trade or business that consists of trafficking in controlled substances prohibited by federal or state law. The federal Controlled Substances Act, in turn, lists cannabis as a Schedule I controlled substance.(d) It is the intent of the Legislature to help equity licensees obtain a personal income or corporate tax credit.SEC. 2. Section 17053.82 is added to the Revenue and Taxation Code, to read:17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 49 | + | The people of the State of California do enact as follows:SECTION 1. The Legislature makes the following findings and declarations:(a) The War on Drugs has harmed individuals and communities, particularly communities of color.(b) The Legislature has taken actions to assist individuals and communities harmed by past criminal prohibition related to cannabis as a way of righting past wrongs. And yet, many cannabis businesses owned by equity licensees still struggle to turn a profit and keep their doors open.(c) The challenge is made worse because federal law under Section 280E of Title 26 of the United States Code does not allow deduction or credit for any amount paid or incurred during the taxable year in carrying on a trade or business that consists of trafficking in controlled substances prohibited by federal or state law. The federal Controlled Substances Act, in turn, lists cannabis as a Schedule I controlled substance.(d) It is the intent of the Legislature to help equity licensees obtain a personal income or corporate tax credit that would be equal, or in some proportion, to the normal business expenses that they would otherwise have been able to write off on their federal taxes, but for federal law. Doing so will make the business tax structure more fair for licensees that meet the definition of equity and will support cannabis businesses to succeed. credit.SEC. 2. Section 17053.82 is added to the Revenue and Taxation Code, to read:17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 23682 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. SEC. 3. Section 23682 is added to the Revenue and Taxation Code, to read:23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 17053.82 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed.SEC. 4. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credits will achieve include all of the following:(1)Provide cannabis equity applicants and licensees the ability to claim a credit for ordinary business deductions and credits from taxable income in the same manner that would otherwise be permitted under federal law but for the fact that cannabis is determined to be a controlled substance under federal law.(2)(1) Provide relief for individuals who are low income or who have directly or indirectly been negatively impacted by past cannabis policies.(3)(2) Assist cannabis equity applicants and licensees to stay in business or grow their business.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goals, purposes, and objectives described in subdivision (a) are the number of credits claimed and the total dollar amount of credits claimed.(c) (1)The Franchise Tax Board shall analyze the performance indicators in subdivision (b) for each taxable year and shall report its findings, on or before July 31, 2023, and annually thereafter, in compliance with Section 9795 of the Government Code, to the Legislature.(2) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 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. | |
| 51 | 50 | ||
| 52 | 51 | The people of the State of California do enact as follows: | |
| 53 | 52 | ||
| 54 | 53 | ## The people of the State of California do enact as follows: | |
| 55 | 54 | ||
| 56 | - | SECTION 1. The Legislature makes the following findings and declarations:(a) The War on Drugs has harmed individuals and communities, particularly communities of color.(b) The Legislature has taken actions to assist individuals and communities harmed by past criminal prohibition related to cannabis as a way of righting past wrongs. And yet, many cannabis businesses owned by equity licensees still struggle to turn a profit and keep their doors open.(c) The challenge is made worse because federal law under Section 280E of Title 26 of the United States Code does not allow deduction or credit for any amount paid or incurred during the taxable year in carrying on a trade or business that consists of trafficking in controlled substances prohibited by federal or state law. The federal Controlled Substances Act, in turn, lists cannabis as a Schedule I controlled substance.(d) It is the intent of the Legislature to help equity licensees obtain a personal income or corporate tax credit. | |
| 55 | + | SECTION 1. The Legislature makes the following findings and declarations:(a) The War on Drugs has harmed individuals and communities, particularly communities of color.(b) The Legislature has taken actions to assist individuals and communities harmed by past criminal prohibition related to cannabis as a way of righting past wrongs. And yet, many cannabis businesses owned by equity licensees still struggle to turn a profit and keep their doors open.(c) The challenge is made worse because federal law under Section 280E of Title 26 of the United States Code does not allow deduction or credit for any amount paid or incurred during the taxable year in carrying on a trade or business that consists of trafficking in controlled substances prohibited by federal or state law. The federal Controlled Substances Act, in turn, lists cannabis as a Schedule I controlled substance.(d) It is the intent of the Legislature to help equity licensees obtain a personal income or corporate tax credit that would be equal, or in some proportion, to the normal business expenses that they would otherwise have been able to write off on their federal taxes, but for federal law. Doing so will make the business tax structure more fair for licensees that meet the definition of equity and will support cannabis businesses to succeed. credit. | |
| 57 | 56 | ||
| 58 | - | SECTION 1. The Legislature makes the following findings and declarations:(a) The War on Drugs has harmed individuals and communities, particularly communities of color.(b) The Legislature has taken actions to assist individuals and communities harmed by past criminal prohibition related to cannabis as a way of righting past wrongs. And yet, many cannabis businesses owned by equity licensees still struggle to turn a profit and keep their doors open.(c) The challenge is made worse because federal law under Section 280E of Title 26 of the United States Code does not allow deduction or credit for any amount paid or incurred during the taxable year in carrying on a trade or business that consists of trafficking in controlled substances prohibited by federal or state law. The federal Controlled Substances Act, in turn, lists cannabis as a Schedule I controlled substance.(d) It is the intent of the Legislature to help equity licensees obtain a personal income or corporate tax credit. | |
| 57 | + | SECTION 1. The Legislature makes the following findings and declarations:(a) The War on Drugs has harmed individuals and communities, particularly communities of color.(b) The Legislature has taken actions to assist individuals and communities harmed by past criminal prohibition related to cannabis as a way of righting past wrongs. And yet, many cannabis businesses owned by equity licensees still struggle to turn a profit and keep their doors open.(c) The challenge is made worse because federal law under Section 280E of Title 26 of the United States Code does not allow deduction or credit for any amount paid or incurred during the taxable year in carrying on a trade or business that consists of trafficking in controlled substances prohibited by federal or state law. The federal Controlled Substances Act, in turn, lists cannabis as a Schedule I controlled substance.(d) It is the intent of the Legislature to help equity licensees obtain a personal income or corporate tax credit that would be equal, or in some proportion, to the normal business expenses that they would otherwise have been able to write off on their federal taxes, but for federal law. Doing so will make the business tax structure more fair for licensees that meet the definition of equity and will support cannabis businesses to succeed. credit. | |
| 59 | 58 | ||
| 60 | 59 | SECTION 1. The Legislature makes the following findings and declarations: | |
| 61 | 60 | ||
| 62 | 61 | ### SECTION 1. | |
| 63 | 62 | ||
| 64 | 63 | (a) The War on Drugs has harmed individuals and communities, particularly communities of color. | |
| 65 | 64 | ||
| 66 | 65 | (b) The Legislature has taken actions to assist individuals and communities harmed by past criminal prohibition related to cannabis as a way of righting past wrongs. And yet, many cannabis businesses owned by equity licensees still struggle to turn a profit and keep their doors open. | |
| 67 | 66 | ||
| 68 | 67 | (c) The challenge is made worse because federal law under Section 280E of Title 26 of the United States Code does not allow deduction or credit for any amount paid or incurred during the taxable year in carrying on a trade or business that consists of trafficking in controlled substances prohibited by federal or state law. The federal Controlled Substances Act, in turn, lists cannabis as a Schedule I controlled substance. | |
| 69 | 68 | ||
| 70 | - | (d) It is the intent of the Legislature to help equity licensees obtain a personal income or corporate tax credit. | |
| 69 | + | (d) It is the intent of the Legislature to help equity licensees obtain a personal income or corporate tax credit that would be equal, or in some proportion, to the normal business expenses that they would otherwise have been able to write off on their federal taxes, but for federal law. Doing so will make the business tax structure more fair for licensees that meet the definition of equity and will support cannabis businesses to succeed. credit. | |
| 71 | 70 | ||
| 72 | - | SEC. 2. Section 17053.82 is added to the Revenue and Taxation Code, to read:17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 71 | + | SEC. 2. Section 17053.82 is added to the Revenue and Taxation Code, to read:17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 23682 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 73 | 72 | ||
| 74 | 73 | SEC. 2. Section 17053.82 is added to the Revenue and Taxation Code, to read: | |
| 75 | 74 | ||
| 76 | 75 | ### SEC. 2. | |
| 77 | 76 | ||
| 78 | - | 17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 77 | + | 17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 23682 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 79 | 78 | ||
| 80 | - | 17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 79 | + | 17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 23682 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 81 | 80 | ||
| 82 | - | 17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 81 | + | 17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 23682 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 83 | 82 | ||
| 84 | 83 | ||
| 85 | 84 | ||
| 86 | - | 17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000). | |
| 85 | + | 17053.82. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the net tax, as defined in Section 17039, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000). | |
| 87 | 86 | ||
| 88 | - | (b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 87 | + | (b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code. | |
| 89 | 88 | ||
| 90 | - | (c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of | |
| 89 | + | (c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section. | |
| 91 | 90 | ||
| 92 | 91 | (d) In the case where the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted. | |
| 93 | 92 | ||
| 94 | 93 | (e) This section and Section 23682 shall be known and may be cited as the Cannabis Equity Tax Credit. | |
| 95 | 94 | ||
| 96 | 95 | (f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 97 | 96 | ||
| 98 | - | SEC. 3. Section 23682 is added to the Revenue and Taxation Code, to read:23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 97 | + | SEC. 3. Section 23682 is added to the Revenue and Taxation Code, to read:23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 17053.82 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 99 | 98 | ||
| 100 | 99 | SEC. 3. Section 23682 is added to the Revenue and Taxation Code, to read: | |
| 101 | 100 | ||
| 102 | 101 | ### SEC. 3. | |
| 103 | 102 | ||
| 104 | - | 23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 103 | + | 23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 17053.82 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 105 | 104 | ||
| 106 | - | 23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 105 | + | 23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 17053.82 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 107 | 106 | ||
| 108 | - | 23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 107 | + | 23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000).(b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code.(c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section.(d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted.(e) This section and Section 17053.82 shall be known and may be cited as the Cannabis Equity Tax Credit.(f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 109 | 108 | ||
| 110 | 109 | ||
| 111 | 110 | ||
| 112 | - | 23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to ten thousand dollars ($10,000). | |
| 111 | + | 23682. (a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed a credit against the tax, as defined in Section 23036, to a qualified taxpayer in an amount equal to the amount of business expenses of the taxpayers trade or business that the taxpayer could not deduct or claim as a credit for that taxable year under federal income taxes because the amount was disallowed by Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs. ten thousand dollars ($10,000). | |
| 113 | 112 | ||
| 114 | - | (b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of | |
| 113 | + | (b) For purposes of this section, qualified taxpayer means an equity applicant or licensee as defined in subdivision (c) of Section 26249 of the Business and Professions Code. | |
| 115 | 114 | ||
| 116 | - | (c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of | |
| 115 | + | (c) On January 1, 2023, and annually thereafter, the Department of Cannabis Control shall provide the Franchise Tax Board with a list of equity applicants and licensees, as defined in subdivision (c) of Section 26249 of the Business and Professions Code, for the purposes of administering this section. | |
| 117 | 116 | ||
| 118 | 117 | (d) In the case where the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted. | |
| 119 | 118 | ||
| 120 | 119 | (e) This section and Section 17053.82 shall be known and may be cited as the Cannabis Equity Tax Credit. | |
| 121 | 120 | ||
| 122 | 121 | (f) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. | |
| 123 | 122 | ||
| 124 | - | SEC. 4. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credits will achieve include all of the following:(1) Provide relief for individuals who are low income or who have directly or indirectly been negatively impacted by past cannabis policies.(2) Assist cannabis equity applicants and licensees to stay in business or grow their business.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goals, purposes, and objectives described in subdivision (a) are the number of credits claimed and the total dollar amount of credits claimed.(c) (1)The Franchise Tax Board shall analyze the performance indicators in subdivision (b) for each taxable year and shall report its findings, | |
| 123 | + | SEC. 4. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credits will achieve include all of the following:(1)Provide cannabis equity applicants and licensees the ability to claim a credit for ordinary business deductions and credits from taxable income in the same manner that would otherwise be permitted under federal law but for the fact that cannabis is determined to be a controlled substance under federal law.(2)(1) Provide relief for individuals who are low income or who have directly or indirectly been negatively impacted by past cannabis policies.(3)(2) Assist cannabis equity applicants and licensees to stay in business or grow their business.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goals, purposes, and objectives described in subdivision (a) are the number of credits claimed and the total dollar amount of credits claimed.(c) (1)The Franchise Tax Board shall analyze the performance indicators in subdivision (b) for each taxable year and shall report its findings, on or before July 31, 2023, and annually thereafter, in compliance with Section 9795 of the Government Code, to the Legislature.(2) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code. | |
| 125 | 124 | ||
| 126 | - | SEC. 4. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credits will achieve include all of the following:(1) Provide relief for individuals who are low income or who have directly or indirectly been negatively impacted by past cannabis policies.(2) Assist cannabis equity applicants and licensees to stay in business or grow their business.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goals, purposes, and objectives described in subdivision (a) are the number of credits claimed and the total dollar amount of credits claimed.(c) (1)The Franchise Tax Board shall analyze the performance indicators in subdivision (b) for each taxable year and shall report its findings, | |
| 125 | + | SEC. 4. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credits will achieve include all of the following:(1)Provide cannabis equity applicants and licensees the ability to claim a credit for ordinary business deductions and credits from taxable income in the same manner that would otherwise be permitted under federal law but for the fact that cannabis is determined to be a controlled substance under federal law.(2)(1) Provide relief for individuals who are low income or who have directly or indirectly been negatively impacted by past cannabis policies.(3)(2) Assist cannabis equity applicants and licensees to stay in business or grow their business.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goals, purposes, and objectives described in subdivision (a) are the number of credits claimed and the total dollar amount of credits claimed.(c) (1)The Franchise Tax Board shall analyze the performance indicators in subdivision (b) for each taxable year and shall report its findings, on or before July 31, 2023, and annually thereafter, in compliance with Section 9795 of the Government Code, to the Legislature.(2) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code. | |
| 127 | 126 | ||
| 128 | 127 | SEC. 4. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following: | |
| 129 | 128 | ||
| 130 | 129 | ### SEC. 4. | |
| 131 | 130 | ||
| 132 | 131 | (a) The specific goals, purposes, and objectives that the credits will achieve include all of the following: | |
| 133 | 132 | ||
| 133 | + | (1)Provide cannabis equity applicants and licensees the ability to claim a credit for ordinary business deductions and credits from taxable income in the same manner that would otherwise be permitted under federal law but for the fact that cannabis is determined to be a controlled substance under federal law. | |
| 134 | + | ||
| 135 | + | ||
| 136 | + | ||
| 137 | + | (2) | |
| 138 | + | ||
| 139 | + | ||
| 140 | + | ||
| 134 | 141 | (1) Provide relief for individuals who are low income or who have directly or indirectly been negatively impacted by past cannabis policies. | |
| 142 | + | ||
| 143 | + | (3) | |
| 144 | + | ||
| 145 | + | ||
| 135 | 146 | ||
| 136 | 147 | (2) Assist cannabis equity applicants and licensees to stay in business or grow their business. | |
| 137 | 148 | ||
| 138 | 149 | (b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goals, purposes, and objectives described in subdivision (a) are the number of credits claimed and the total dollar amount of credits claimed. | |
| 139 | 150 | ||
| 140 | - | (c) (1)The Franchise Tax Board shall analyze the performance indicators in subdivision (b) for each taxable year and shall report its findings, | |
| 151 | + | (c) (1)The Franchise Tax Board shall analyze the performance indicators in subdivision (b) for each taxable year and shall report its findings, on or before July 31, 2023, and annually thereafter, in compliance with Section 9795 of the Government Code, to the Legislature. | |
| 141 | 152 | ||
| 142 | 153 | (2) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code. | |
| 143 | 154 | ||
| 144 | 155 | 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. | |
| 145 | 156 | ||
| 146 | 157 | 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. | |
| 147 | 158 | ||
| 148 | 159 | 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. | |
| 149 | 160 | ||
| 150 | 161 | ### SEC. 5. |