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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1219Introduced by Assembly Member WallisFebruary 21, 2025An act to amend Section 17041 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1219, as introduced, Wallis. Personal income tax: rate.The Personal Income Tax Law, in modified conformity with federal income tax law, imposes taxes on taxable income, as provided.This bill, for taxable years beginning on or after January 1, 2025, would revise the income tax rates and taxable income brackets by imposing an income tax rate of 3% instead of 4%, increasing as applicable, on specified taxable income.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17041 of the Revenue and Taxation Code is amended to read:17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $8,650 ........................ 1% of the taxable incomeOver $8,650 but notover $13,650 ........................ $86.50 plus 3% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $236.50 plus 5% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $501.50 plus 7% of the excessover $18,950Over $23,950 ........................ $851.50 plus 8.3% of the excessover $23,950(b) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident, except the head of a household as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (a) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(c) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident for that taxable year, when the resident is the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of the state for the entire taxable year and for all prior taxable years for carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $7,300 ........................ 1% of the taxable incomeOver $7,300 but notover $17,300 ........................ $73 plus 2% of the excessover $7,300Over $17,300 but notover $22,300 ........................ $273 plus 4% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $473 plus 6% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $791 plus 8% of the excessover $27,600Over $32,600 ........................ $1,191 plus 9.3% of the excessover $32,600(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $17,300 ........................ 1% of the taxable incomeOver $17,300 but notover $22,300 ........................ $173 plus 3% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $323 plus 5% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $588 plus 7% of the excessover $27,600Over $32,600 ........................ $938 plus 8.3% of the excessover $32,600(d) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident when the nonresident or part-year resident is the head of a household, as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (c) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(e) There shall be imposed for each taxable year upon the taxable income of every estate, trust, or common trust fund taxes equal to the amount computed under subdivision (a) for an individual having the same amount of taxable income.(f) The tax imposed by this part is not a surtax.(g) (1) Section 1(g) of the Internal Revenue Code, relating to certain unearned income of children taxed as if parents income, shall apply, except as otherwise provided.(2) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code is modified, for purposes of this part, by substituting 1 percent for 10 percent.(h) (1) For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the income tax brackets prescribed in subdivisions (a) and (c). That computation shall be made as follows:(1)(A) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(2)(B) The Franchise Tax Board shall do both of the following:(A)(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) subparagraph (A) and dividing the result by 100.(B)(ii) Multiply the preceding taxable year income tax brackets by the inflation adjustment factor determined in subparagraph (A) clause (i) and round off the resulting products to the nearest one dollar ($1).(2) This subdivision shall not apply to taxable years beginning on or after January 1, 2025, and before January 1, 2026. (i) (1) For purposes of this part, the term taxable income of a nonresident or part-year resident includes each of the following:(A) For any part of the taxable year during which the taxpayer was a resident of this state (as state, as defined by Section 17014), 17014, all items of gross income and all deductions, regardless of source.(B) For any part of the taxable year during which the taxpayer was not a resident of this state, gross income and deductions derived from sources within this state, determined in accordance with Article 9 of Chapter 3 (commencing with Section 17301) and Chapter 11 (commencing with Section 17951).(2) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), the amount of any net operating loss sustained in any taxable year during any part of which the taxpayer was not a resident of this state shall be limited to the sum of the following:(A) The amount of the loss attributable to the part of the taxable year in which the taxpayer was a resident.(B) The amount of the loss which, during the part of the taxable year the taxpayer is not a resident, is attributable to California source income and deductions allowable in arriving at taxable income of a nonresident or part-year resident.(3) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), any carryover items, deferred income, suspended losses, or suspended deductions shall only be includable or allowable to the extent that the carryover item, deferred income, suspended loss, or suspended deduction was derived from sources within this state, calculated as if the nonresident or part-year resident, for the portion of the year he or she they were was a nonresident, had been a nonresident for all prior years.(j) It is the intent of the Legislature to comply with Section 41.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. | |
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| 3 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1219Introduced by Assembly Member WallisFebruary 21, 2025An act to amend Section 17041 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1219, as introduced, Wallis. Personal income tax: rate.The Personal Income Tax Law, in modified conformity with federal income tax law, imposes taxes on taxable income, as provided.This bill, for taxable years beginning on or after January 1, 2025, would revise the income tax rates and taxable income brackets by imposing an income tax rate of 3% instead of 4%, increasing as applicable, on specified taxable income.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO | |
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| 5 | - | Amended IN Assembly April 03, 2025 | |
| 6 | 5 | ||
| 7 | - | Amended IN Assembly April 03, 2025 | |
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| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Assembly Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 1219 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Assembly Member WallisFebruary 21, 2025 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Assembly Member Wallis | |
| 18 | 18 | February 21, 2025 | |
| 19 | 19 | ||
| 20 | 20 | An act to amend Section 17041 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | AB 1219, as | |
| 26 | + | AB 1219, as introduced, Wallis. Personal income tax: rate. | |
| 27 | 27 | ||
| 28 | - | ||
| 28 | + | The Personal Income Tax Law, in modified conformity with federal income tax law, imposes taxes on taxable income, as provided.This bill, for taxable years beginning on or after January 1, 2025, would revise the income tax rates and taxable income brackets by imposing an income tax rate of 3% instead of 4%, increasing as applicable, on specified taxable income.This bill would take effect immediately as a tax levy. | |
| 29 | 29 | ||
| 30 | 30 | The Personal Income Tax Law, in modified conformity with federal income tax law, imposes taxes on taxable income, as provided. | |
| 31 | 31 | ||
| 32 | - | This bill, for taxable years beginning on or after January 1, 2025 | |
| 32 | + | This bill, for taxable years beginning on or after January 1, 2025, would revise the income tax rates and taxable income brackets by imposing an income tax rate of 3% instead of 4%, increasing as applicable, on specified taxable income. | |
| 33 | 33 | ||
| 34 | 34 | This bill would take effect immediately as a tax levy. | |
| 35 | - | ||
| 36 | - | The Personal Income Tax Law, in modified conformity with federal income tax law, imposes taxes on taxable income, as provided. | |
| 37 | - | ||
| 38 | - | ||
| 39 | - | ||
| 40 | - | This bill, for taxable years beginning on or after January 1, 2025, would revise the income tax rates and taxable income brackets by imposing an income tax rate of 3% instead of 4%, increasing as applicable, on specified taxable income. | |
| 41 | - | ||
| 42 | - | ||
| 43 | - | ||
| 44 | - | This bill would take effect immediately as a tax levy. | |
| 45 | - | ||
| 46 | - | ||
| 47 | 35 | ||
| 48 | 36 | ## Digest Key | |
| 49 | 37 | ||
| 50 | 38 | ## Bill Text | |
| 51 | 39 | ||
| 52 | - | The people of the State of California do enact as follows:SECTION 1. Section 17041 of the Revenue and Taxation Code is amended to read:17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, | |
| 40 | + | The people of the State of California do enact as follows:SECTION 1. Section 17041 of the Revenue and Taxation Code is amended to read:17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $8,650 ........................ 1% of the taxable incomeOver $8,650 but notover $13,650 ........................ $86.50 plus 3% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $236.50 plus 5% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $501.50 plus 7% of the excessover $18,950Over $23,950 ........................ $851.50 plus 8.3% of the excessover $23,950(b) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident, except the head of a household as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (a) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(c) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident for that taxable year, when the resident is the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of the state for the entire taxable year and for all prior taxable years for carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $7,300 ........................ 1% of the taxable incomeOver $7,300 but notover $17,300 ........................ $73 plus 2% of the excessover $7,300Over $17,300 but notover $22,300 ........................ $273 plus 4% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $473 plus 6% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $791 plus 8% of the excessover $27,600Over $32,600 ........................ $1,191 plus 9.3% of the excessover $32,600(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $17,300 ........................ 1% of the taxable incomeOver $17,300 but notover $22,300 ........................ $173 plus 3% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $323 plus 5% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $588 plus 7% of the excessover $27,600Over $32,600 ........................ $938 plus 8.3% of the excessover $32,600(d) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident when the nonresident or part-year resident is the head of a household, as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (c) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(e) There shall be imposed for each taxable year upon the taxable income of every estate, trust, or common trust fund taxes equal to the amount computed under subdivision (a) for an individual having the same amount of taxable income.(f) The tax imposed by this part is not a surtax.(g) (1) Section 1(g) of the Internal Revenue Code, relating to certain unearned income of children taxed as if parents income, shall apply, except as otherwise provided.(2) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code is modified, for purposes of this part, by substituting 1 percent for 10 percent.(h) (1) For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the income tax brackets prescribed in subdivisions (a) and (c). That computation shall be made as follows:(1)(A) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(2)(B) The Franchise Tax Board shall do both of the following:(A)(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) subparagraph (A) and dividing the result by 100.(B)(ii) Multiply the preceding taxable year income tax brackets by the inflation adjustment factor determined in subparagraph (A) clause (i) and round off the resulting products to the nearest one dollar ($1).(2) This subdivision shall not apply to taxable years beginning on or after January 1, 2025, and before January 1, 2026. (i) (1) For purposes of this part, the term taxable income of a nonresident or part-year resident includes each of the following:(A) For any part of the taxable year during which the taxpayer was a resident of this state (as state, as defined by Section 17014), 17014, all items of gross income and all deductions, regardless of source.(B) For any part of the taxable year during which the taxpayer was not a resident of this state, gross income and deductions derived from sources within this state, determined in accordance with Article 9 of Chapter 3 (commencing with Section 17301) and Chapter 11 (commencing with Section 17951).(2) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), the amount of any net operating loss sustained in any taxable year during any part of which the taxpayer was not a resident of this state shall be limited to the sum of the following:(A) The amount of the loss attributable to the part of the taxable year in which the taxpayer was a resident.(B) The amount of the loss which, during the part of the taxable year the taxpayer is not a resident, is attributable to California source income and deductions allowable in arriving at taxable income of a nonresident or part-year resident.(3) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), any carryover items, deferred income, suspended losses, or suspended deductions shall only be includable or allowable to the extent that the carryover item, deferred income, suspended loss, or suspended deduction was derived from sources within this state, calculated as if the nonresident or part-year resident, for the portion of the year he or she they were was a nonresident, had been a nonresident for all prior years.(j) It is the intent of the Legislature to comply with Section 41.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. | |
| 53 | 41 | ||
| 54 | 42 | The people of the State of California do enact as follows: | |
| 55 | 43 | ||
| 56 | 44 | ## The people of the State of California do enact as follows: | |
| 57 | 45 | ||
| 58 | - | SECTION 1. Section 17041 of the Revenue and Taxation Code is amended to read:17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, | |
| 46 | + | SECTION 1. Section 17041 of the Revenue and Taxation Code is amended to read:17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $8,650 ........................ 1% of the taxable incomeOver $8,650 but notover $13,650 ........................ $86.50 plus 3% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $236.50 plus 5% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $501.50 plus 7% of the excessover $18,950Over $23,950 ........................ $851.50 plus 8.3% of the excessover $23,950(b) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident, except the head of a household as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (a) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(c) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident for that taxable year, when the resident is the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of the state for the entire taxable year and for all prior taxable years for carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $7,300 ........................ 1% of the taxable incomeOver $7,300 but notover $17,300 ........................ $73 plus 2% of the excessover $7,300Over $17,300 but notover $22,300 ........................ $273 plus 4% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $473 plus 6% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $791 plus 8% of the excessover $27,600Over $32,600 ........................ $1,191 plus 9.3% of the excessover $32,600(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $17,300 ........................ 1% of the taxable incomeOver $17,300 but notover $22,300 ........................ $173 plus 3% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $323 plus 5% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $588 plus 7% of the excessover $27,600Over $32,600 ........................ $938 plus 8.3% of the excessover $32,600(d) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident when the nonresident or part-year resident is the head of a household, as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (c) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(e) There shall be imposed for each taxable year upon the taxable income of every estate, trust, or common trust fund taxes equal to the amount computed under subdivision (a) for an individual having the same amount of taxable income.(f) The tax imposed by this part is not a surtax.(g) (1) Section 1(g) of the Internal Revenue Code, relating to certain unearned income of children taxed as if parents income, shall apply, except as otherwise provided.(2) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code is modified, for purposes of this part, by substituting 1 percent for 10 percent.(h) (1) For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the income tax brackets prescribed in subdivisions (a) and (c). That computation shall be made as follows:(1)(A) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(2)(B) The Franchise Tax Board shall do both of the following:(A)(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) subparagraph (A) and dividing the result by 100.(B)(ii) Multiply the preceding taxable year income tax brackets by the inflation adjustment factor determined in subparagraph (A) clause (i) and round off the resulting products to the nearest one dollar ($1).(2) This subdivision shall not apply to taxable years beginning on or after January 1, 2025, and before January 1, 2026. (i) (1) For purposes of this part, the term taxable income of a nonresident or part-year resident includes each of the following:(A) For any part of the taxable year during which the taxpayer was a resident of this state (as state, as defined by Section 17014), 17014, all items of gross income and all deductions, regardless of source.(B) For any part of the taxable year during which the taxpayer was not a resident of this state, gross income and deductions derived from sources within this state, determined in accordance with Article 9 of Chapter 3 (commencing with Section 17301) and Chapter 11 (commencing with Section 17951).(2) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), the amount of any net operating loss sustained in any taxable year during any part of which the taxpayer was not a resident of this state shall be limited to the sum of the following:(A) The amount of the loss attributable to the part of the taxable year in which the taxpayer was a resident.(B) The amount of the loss which, during the part of the taxable year the taxpayer is not a resident, is attributable to California source income and deductions allowable in arriving at taxable income of a nonresident or part-year resident.(3) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), any carryover items, deferred income, suspended losses, or suspended deductions shall only be includable or allowable to the extent that the carryover item, deferred income, suspended loss, or suspended deduction was derived from sources within this state, calculated as if the nonresident or part-year resident, for the portion of the year he or she they were was a nonresident, had been a nonresident for all prior years.(j) It is the intent of the Legislature to comply with Section 41. | |
| 59 | 47 | ||
| 60 | 48 | SECTION 1. Section 17041 of the Revenue and Taxation Code is amended to read: | |
| 61 | 49 | ||
| 62 | 50 | ### SECTION 1. | |
| 63 | 51 | ||
| 64 | - | 17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, | |
| 52 | + | 17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $8,650 ........................ 1% of the taxable incomeOver $8,650 but notover $13,650 ........................ $86.50 plus 3% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $236.50 plus 5% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $501.50 plus 7% of the excessover $18,950Over $23,950 ........................ $851.50 plus 8.3% of the excessover $23,950(b) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident, except the head of a household as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (a) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(c) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident for that taxable year, when the resident is the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of the state for the entire taxable year and for all prior taxable years for carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $7,300 ........................ 1% of the taxable incomeOver $7,300 but notover $17,300 ........................ $73 plus 2% of the excessover $7,300Over $17,300 but notover $22,300 ........................ $273 plus 4% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $473 plus 6% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $791 plus 8% of the excessover $27,600Over $32,600 ........................ $1,191 plus 9.3% of the excessover $32,600(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $17,300 ........................ 1% of the taxable incomeOver $17,300 but notover $22,300 ........................ $173 plus 3% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $323 plus 5% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $588 plus 7% of the excessover $27,600Over $32,600 ........................ $938 plus 8.3% of the excessover $32,600(d) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident when the nonresident or part-year resident is the head of a household, as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (c) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(e) There shall be imposed for each taxable year upon the taxable income of every estate, trust, or common trust fund taxes equal to the amount computed under subdivision (a) for an individual having the same amount of taxable income.(f) The tax imposed by this part is not a surtax.(g) (1) Section 1(g) of the Internal Revenue Code, relating to certain unearned income of children taxed as if parents income, shall apply, except as otherwise provided.(2) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code is modified, for purposes of this part, by substituting 1 percent for 10 percent.(h) (1) For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the income tax brackets prescribed in subdivisions (a) and (c). That computation shall be made as follows:(1)(A) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(2)(B) The Franchise Tax Board shall do both of the following:(A)(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) subparagraph (A) and dividing the result by 100.(B)(ii) Multiply the preceding taxable year income tax brackets by the inflation adjustment factor determined in subparagraph (A) clause (i) and round off the resulting products to the nearest one dollar ($1).(2) This subdivision shall not apply to taxable years beginning on or after January 1, 2025, and before January 1, 2026. (i) (1) For purposes of this part, the term taxable income of a nonresident or part-year resident includes each of the following:(A) For any part of the taxable year during which the taxpayer was a resident of this state (as state, as defined by Section 17014), 17014, all items of gross income and all deductions, regardless of source.(B) For any part of the taxable year during which the taxpayer was not a resident of this state, gross income and deductions derived from sources within this state, determined in accordance with Article 9 of Chapter 3 (commencing with Section 17301) and Chapter 11 (commencing with Section 17951).(2) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), the amount of any net operating loss sustained in any taxable year during any part of which the taxpayer was not a resident of this state shall be limited to the sum of the following:(A) The amount of the loss attributable to the part of the taxable year in which the taxpayer was a resident.(B) The amount of the loss which, during the part of the taxable year the taxpayer is not a resident, is attributable to California source income and deductions allowable in arriving at taxable income of a nonresident or part-year resident.(3) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), any carryover items, deferred income, suspended losses, or suspended deductions shall only be includable or allowable to the extent that the carryover item, deferred income, suspended loss, or suspended deduction was derived from sources within this state, calculated as if the nonresident or part-year resident, for the portion of the year he or she they were was a nonresident, had been a nonresident for all prior years.(j) It is the intent of the Legislature to comply with Section 41. | |
| 65 | 53 | ||
| 66 | - | 17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, | |
| 54 | + | 17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $8,650 ........................ 1% of the taxable incomeOver $8,650 but notover $13,650 ........................ $86.50 plus 3% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $236.50 plus 5% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $501.50 plus 7% of the excessover $18,950Over $23,950 ........................ $851.50 plus 8.3% of the excessover $23,950(b) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident, except the head of a household as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (a) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(c) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident for that taxable year, when the resident is the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of the state for the entire taxable year and for all prior taxable years for carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $7,300 ........................ 1% of the taxable incomeOver $7,300 but notover $17,300 ........................ $73 plus 2% of the excessover $7,300Over $17,300 but notover $22,300 ........................ $273 plus 4% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $473 plus 6% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $791 plus 8% of the excessover $27,600Over $32,600 ........................ $1,191 plus 9.3% of the excessover $32,600(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $17,300 ........................ 1% of the taxable incomeOver $17,300 but notover $22,300 ........................ $173 plus 3% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $323 plus 5% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $588 plus 7% of the excessover $27,600Over $32,600 ........................ $938 plus 8.3% of the excessover $32,600(d) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident when the nonresident or part-year resident is the head of a household, as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (c) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(e) There shall be imposed for each taxable year upon the taxable income of every estate, trust, or common trust fund taxes equal to the amount computed under subdivision (a) for an individual having the same amount of taxable income.(f) The tax imposed by this part is not a surtax.(g) (1) Section 1(g) of the Internal Revenue Code, relating to certain unearned income of children taxed as if parents income, shall apply, except as otherwise provided.(2) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code is modified, for purposes of this part, by substituting 1 percent for 10 percent.(h) (1) For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the income tax brackets prescribed in subdivisions (a) and (c). That computation shall be made as follows:(1)(A) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(2)(B) The Franchise Tax Board shall do both of the following:(A)(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) subparagraph (A) and dividing the result by 100.(B)(ii) Multiply the preceding taxable year income tax brackets by the inflation adjustment factor determined in subparagraph (A) clause (i) and round off the resulting products to the nearest one dollar ($1).(2) This subdivision shall not apply to taxable years beginning on or after January 1, 2025, and before January 1, 2026. (i) (1) For purposes of this part, the term taxable income of a nonresident or part-year resident includes each of the following:(A) For any part of the taxable year during which the taxpayer was a resident of this state (as state, as defined by Section 17014), 17014, all items of gross income and all deductions, regardless of source.(B) For any part of the taxable year during which the taxpayer was not a resident of this state, gross income and deductions derived from sources within this state, determined in accordance with Article 9 of Chapter 3 (commencing with Section 17301) and Chapter 11 (commencing with Section 17951).(2) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), the amount of any net operating loss sustained in any taxable year during any part of which the taxpayer was not a resident of this state shall be limited to the sum of the following:(A) The amount of the loss attributable to the part of the taxable year in which the taxpayer was a resident.(B) The amount of the loss which, during the part of the taxable year the taxpayer is not a resident, is attributable to California source income and deductions allowable in arriving at taxable income of a nonresident or part-year resident.(3) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), any carryover items, deferred income, suspended losses, or suspended deductions shall only be includable or allowable to the extent that the carryover item, deferred income, suspended loss, or suspended deduction was derived from sources within this state, calculated as if the nonresident or part-year resident, for the portion of the year he or she they were was a nonresident, had been a nonresident for all prior years.(j) It is the intent of the Legislature to comply with Section 41. | |
| 67 | 55 | ||
| 68 | - | 17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, | |
| 56 | + | 17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $3,650 ........................ 1% of the taxable incomeOver $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $8,650 ........................ 1% of the taxable incomeOver $8,650 but notover $13,650 ........................ $86.50 plus 3% of the excessover $8,650Over $13,650 but notover $18,950 ........................ $236.50 plus 5% of the excessover $13,650Over $18,950 but notover $23,950 ........................ $501.50 plus 7% of the excessover $18,950Over $23,950 ........................ $851.50 plus 8.3% of the excessover $23,950(b) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident, except the head of a household as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (a) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(c) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident for that taxable year, when the resident is the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of the state for the entire taxable year and for all prior taxable years for carryover items, deferred income, suspended losses, or suspended deductions:If the taxable income is:The tax is:Not over $7,300 ........................ 1% of the taxable incomeOver $7,300 but notover $17,300 ........................ $73 plus 2% of the excessover $7,300Over $17,300 but notover $22,300 ........................ $273 plus 4% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $473 plus 6% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $791 plus 8% of the excessover $27,600Over $32,600 ........................ $1,191 plus 9.3% of the excessover $32,600(2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage.(3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following:If the taxable income is:The tax is:Not over $17,300 ........................ 1% of the taxable incomeOver $17,300 but notover $22,300 ........................ $173 plus 3% of the excessover $17,300Over $22,300 but notover $27,600 ........................ $323 plus 5% of the excessover $22,300Over $27,600 but notover $32,600 ........................ $588 plus 7% of the excessover $27,600Over $32,600 ........................ $938 plus 8.3% of the excessover $32,600(d) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident when the nonresident or part-year resident is the head of a household, as defined in Section 17042, a tax as calculated in paragraph (2).(2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (c) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income.(e) There shall be imposed for each taxable year upon the taxable income of every estate, trust, or common trust fund taxes equal to the amount computed under subdivision (a) for an individual having the same amount of taxable income.(f) The tax imposed by this part is not a surtax.(g) (1) Section 1(g) of the Internal Revenue Code, relating to certain unearned income of children taxed as if parents income, shall apply, except as otherwise provided.(2) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code is modified, for purposes of this part, by substituting 1 percent for 10 percent.(h) (1) For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the income tax brackets prescribed in subdivisions (a) and (c). That computation shall be made as follows:(1)(A) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year.(2)(B) The Franchise Tax Board shall do both of the following:(A)(i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) subparagraph (A) and dividing the result by 100.(B)(ii) Multiply the preceding taxable year income tax brackets by the inflation adjustment factor determined in subparagraph (A) clause (i) and round off the resulting products to the nearest one dollar ($1).(2) This subdivision shall not apply to taxable years beginning on or after January 1, 2025, and before January 1, 2026. (i) (1) For purposes of this part, the term taxable income of a nonresident or part-year resident includes each of the following:(A) For any part of the taxable year during which the taxpayer was a resident of this state (as state, as defined by Section 17014), 17014, all items of gross income and all deductions, regardless of source.(B) For any part of the taxable year during which the taxpayer was not a resident of this state, gross income and deductions derived from sources within this state, determined in accordance with Article 9 of Chapter 3 (commencing with Section 17301) and Chapter 11 (commencing with Section 17951).(2) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), the amount of any net operating loss sustained in any taxable year during any part of which the taxpayer was not a resident of this state shall be limited to the sum of the following:(A) The amount of the loss attributable to the part of the taxable year in which the taxpayer was a resident.(B) The amount of the loss which, during the part of the taxable year the taxpayer is not a resident, is attributable to California source income and deductions allowable in arriving at taxable income of a nonresident or part-year resident.(3) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), any carryover items, deferred income, suspended losses, or suspended deductions shall only be includable or allowable to the extent that the carryover item, deferred income, suspended loss, or suspended deduction was derived from sources within this state, calculated as if the nonresident or part-year resident, for the portion of the year he or she they were was a nonresident, had been a nonresident for all prior years.(j) It is the intent of the Legislature to comply with Section 41. | |
| 69 | 57 | ||
| 70 | 58 | ||
| 71 | 59 | ||
| 72 | 60 | 17041. (a) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions: | |
| 73 | 61 | ||
| 74 | 62 | If the taxable income is: The tax is: | |
| 75 | 63 | Not over $3,650 ........................ 1% of the taxable income | |
| 76 | 64 | Over $3,650 but notover $8,650 ........................ $36.50 plus 2% of the excessover $3,650 | |
| 77 | 65 | Over $8,650 but notover $13,650 ........................ $136.50 plus 4% of the excessover $8,650 | |
| 78 | 66 | Over $13,650 but notover $18,950 ........................ $336.50 plus 6% of the excessover $13,650 | |
| 79 | 67 | Over $18,950 but notover $23,950 ........................ $654.50 plus 8% of the excessover $18,950 | |
| 80 | 68 | Over $23,950 ........................ $1,054.50 plus 9.3% of the excessover $23,950 | |
| 81 | 69 | ||
| 82 | 70 | If the taxable income is: | |
| 83 | 71 | ||
| 84 | 72 | The tax is: | |
| 85 | 73 | ||
| 86 | 74 | Not over $3,650 ........................ | |
| 87 | 75 | ||
| 88 | 76 | 1% of the taxable income | |
| 89 | 77 | ||
| 90 | 78 | Over $3,650 but not | |
| 91 | 79 | ||
| 92 | 80 | over $8,650 ........................ | |
| 93 | 81 | ||
| 94 | 82 | $36.50 plus 2% of the excessover $3,650 | |
| 95 | 83 | ||
| 96 | 84 | Over $8,650 but not | |
| 97 | 85 | ||
| 98 | 86 | over $13,650 ........................ | |
| 99 | 87 | ||
| 100 | 88 | $136.50 plus 4% of the excessover $8,650 | |
| 101 | 89 | ||
| 102 | 90 | Over $13,650 but not | |
| 103 | 91 | ||
| 104 | 92 | over $18,950 ........................ | |
| 105 | 93 | ||
| 106 | 94 | $336.50 plus 6% of the excessover $13,650 | |
| 107 | 95 | ||
| 108 | 96 | Over $18,950 but not | |
| 109 | 97 | ||
| 110 | 98 | over $23,950 ........................ | |
| 111 | 99 | ||
| 112 | 100 | $654.50 plus 8% of the excessover $18,950 | |
| 113 | 101 | ||
| 114 | 102 | Over $23,950 ........................ | |
| 115 | 103 | ||
| 116 | 104 | $1,054.50 plus 9.3% of the excessover $23,950 | |
| 117 | 105 | ||
| 118 | 106 | (2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage. | |
| 119 | 107 | ||
| 120 | - | (3) For taxable years beginning on or after January 1, 2025 | |
| 108 | + | (3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following: | |
| 121 | 109 | ||
| 122 | 110 | If the taxable income is: The tax is: | |
| 123 | - | Not over $ | |
| 124 | - | Over $ | |
| 125 | - | Over $ | |
| 126 | - | Over $ | |
| 127 | - | Over $ | |
| 111 | + | Not over $8,650 ........................ 1% of the taxable income | |
| 112 | + | Over $8,650 but notover $13,650 ........................ $86.50 plus 3% of the excessover $8,650 | |
| 113 | + | Over $13,650 but notover $18,950 ........................ $236.50 plus 5% of the excessover $13,650 | |
| 114 | + | Over $18,950 but notover $23,950 ........................ $501.50 plus 7% of the excessover $18,950 | |
| 115 | + | Over $23,950 ........................ $851.50 plus 8.3% of the excessover $23,950 | |
| 128 | 116 | ||
| 129 | 117 | If the taxable income is: | |
| 130 | 118 | ||
| 131 | 119 | The tax is: | |
| 132 | 120 | ||
| 133 | - | Not over $ | |
| 121 | + | Not over $8,650 ........................ | |
| 134 | 122 | ||
| 135 | 123 | 1% of the taxable income | |
| 136 | 124 | ||
| 137 | - | Over $ | |
| 125 | + | Over $8,650 but not | |
| 138 | 126 | ||
| 139 | - | over $ | |
| 127 | + | over $13,650 ........................ | |
| 140 | 128 | ||
| 141 | - | $ | |
| 129 | + | $86.50 plus 3% of the excessover $8,650 | |
| 142 | 130 | ||
| 143 | - | Over $ | |
| 131 | + | Over $13,650 but not | |
| 144 | 132 | ||
| 145 | - | over $ | |
| 133 | + | over $18,950 ........................ | |
| 146 | 134 | ||
| 147 | - | $ | |
| 135 | + | $236.50 plus 5% of the excessover $13,650 | |
| 148 | 136 | ||
| 149 | - | Over $ | |
| 137 | + | Over $18,950 but not | |
| 150 | 138 | ||
| 151 | - | over $ | |
| 139 | + | over $23,950 ........................ | |
| 152 | 140 | ||
| 153 | - | $ | |
| 141 | + | $501.50 plus 7% of the excessover $18,950 | |
| 154 | 142 | ||
| 155 | - | Over $ | |
| 143 | + | Over $23,950 ........................ | |
| 156 | 144 | ||
| 157 | - | $ | |
| 145 | + | $851.50 plus 8.3% of the excessover $23,950 | |
| 158 | 146 | ||
| 159 | 147 | (b) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident, except the head of a household as defined in Section 17042, a tax as calculated in paragraph (2). | |
| 160 | 148 | ||
| 161 | 149 | (2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (a) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income. | |
| 162 | 150 | ||
| 163 | 151 | (c) (1) There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident for that taxable year, when the resident is the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of the state for the entire taxable year and for all prior taxable years for carryover items, deferred income, suspended losses, or suspended deductions: | |
| 164 | 152 | ||
| 165 | 153 | If the taxable income is: The tax is: | |
| 166 | 154 | Not over $7,300 ........................ 1% of the taxable income | |
| 167 | 155 | Over $7,300 but notover $17,300 ........................ $73 plus 2% of the excessover $7,300 | |
| 168 | 156 | Over $17,300 but notover $22,300 ........................ $273 plus 4% of the excessover $17,300 | |
| 169 | 157 | Over $22,300 but notover $27,600 ........................ $473 plus 6% of the excessover $22,300 | |
| 170 | 158 | Over $27,600 but notover $32,600 ........................ $791 plus 8% of the excessover $27,600 | |
| 171 | 159 | Over $32,600 ........................ $1,191 plus 9.3% of the excessover $32,600 | |
| 172 | 160 | ||
| 173 | 161 | If the taxable income is: | |
| 174 | 162 | ||
| 175 | 163 | The tax is: | |
| 176 | 164 | ||
| 177 | 165 | Not over $7,300 ........................ | |
| 178 | 166 | ||
| 179 | 167 | 1% of the taxable income | |
| 180 | 168 | ||
| 181 | 169 | Over $7,300 but not | |
| 182 | 170 | ||
| 183 | 171 | over $17,300 ........................ | |
| 184 | 172 | ||
| 185 | 173 | $73 plus 2% of the excessover $7,300 | |
| 186 | 174 | ||
| 187 | 175 | Over $17,300 but not | |
| 188 | 176 | ||
| 189 | 177 | over $22,300 ........................ | |
| 190 | 178 | ||
| 191 | 179 | $273 plus 4% of the excessover $17,300 | |
| 192 | 180 | ||
| 193 | 181 | Over $22,300 but not | |
| 194 | 182 | ||
| 195 | 183 | over $27,600 ........................ | |
| 196 | 184 | ||
| 197 | 185 | $473 plus 6% of the excessover $22,300 | |
| 198 | 186 | ||
| 199 | 187 | Over $27,600 but not | |
| 200 | 188 | ||
| 201 | 189 | over $32,600 ........................ | |
| 202 | 190 | ||
| 203 | 191 | $791 plus 8% of the excessover $27,600 | |
| 204 | 192 | ||
| 205 | 193 | Over $32,600 ........................ | |
| 206 | 194 | ||
| 207 | 195 | $1,191 plus 9.3% of the excessover $32,600 | |
| 208 | 196 | ||
| 209 | 197 | (2) For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage. | |
| 210 | 198 | ||
| 211 | - | (3) For taxable years beginning on or after January 1, 2025 | |
| 199 | + | (3) For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following: | |
| 212 | 200 | ||
| 213 | 201 | If the taxable income is: The tax is: | |
| 214 | - | Not over $ | |
| 215 | - | Over $ | |
| 216 | - | Over $ | |
| 217 | - | Over $ | |
| 218 | - | Over $ | |
| 202 | + | Not over $17,300 ........................ 1% of the taxable income | |
| 203 | + | Over $17,300 but notover $22,300 ........................ $173 plus 3% of the excessover $17,300 | |
| 204 | + | Over $22,300 but notover $27,600 ........................ $323 plus 5% of the excessover $22,300 | |
| 205 | + | Over $27,600 but notover $32,600 ........................ $588 plus 7% of the excessover $27,600 | |
| 206 | + | Over $32,600 ........................ $938 plus 8.3% of the excessover $32,600 | |
| 219 | 207 | ||
| 220 | 208 | If the taxable income is: | |
| 221 | 209 | ||
| 222 | 210 | The tax is: | |
| 223 | 211 | ||
| 224 | - | Not over $ | |
| 212 | + | Not over $17,300 ........................ | |
| 225 | 213 | ||
| 226 | 214 | 1% of the taxable income | |
| 227 | 215 | ||
| 228 | - | Over $ | |
| 216 | + | Over $17,300 but not | |
| 229 | 217 | ||
| 230 | - | over $ | |
| 218 | + | over $22,300 ........................ | |
| 231 | 219 | ||
| 232 | - | $ | |
| 220 | + | $173 plus 3% of the excessover $17,300 | |
| 233 | 221 | ||
| 234 | - | Over $ | |
| 222 | + | Over $22,300 but not | |
| 235 | 223 | ||
| 236 | - | over $ | |
| 224 | + | over $27,600 ........................ | |
| 237 | 225 | ||
| 238 | - | $ | |
| 226 | + | $323 plus 5% of the excessover $22,300 | |
| 239 | 227 | ||
| 240 | - | Over $ | |
| 228 | + | Over $27,600 but not | |
| 241 | 229 | ||
| 242 | - | over $ | |
| 230 | + | over $32,600 ........................ | |
| 243 | 231 | ||
| 244 | - | $ | |
| 232 | + | $588 plus 7% of the excessover $27,600 | |
| 245 | 233 | ||
| 246 | - | Over $ | |
| 234 | + | Over $32,600 ........................ | |
| 247 | 235 | ||
| 248 | - | $ | |
| 236 | + | $938 plus 8.3% of the excessover $32,600 | |
| 249 | 237 | ||
| 250 | 238 | (d) (1) There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident when the nonresident or part-year resident is the head of a household, as defined in Section 17042, a tax as calculated in paragraph (2). | |
| 251 | 239 | ||
| 252 | 240 | (2) The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (c) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income. | |
| 253 | 241 | ||
| 254 | 242 | (e) There shall be imposed for each taxable year upon the taxable income of every estate, trust, or common trust fund taxes equal to the amount computed under subdivision (a) for an individual having the same amount of taxable income. | |
| 255 | 243 | ||
| 256 | 244 | (f) The tax imposed by this part is not a surtax. | |
| 257 | 245 | ||
| 258 | 246 | (g) (1) Section 1(g) of the Internal Revenue Code, relating to certain unearned income of children taxed as if parents income, shall apply, except as otherwise provided. | |
| 259 | 247 | ||
| 260 | 248 | (2) Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code is modified, for purposes of this part, by substituting 1 percent for 10 percent. | |
| 261 | 249 | ||
| 262 | 250 | (h) (1) For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the income tax brackets prescribed in subdivisions (a) and (c). That computation shall be made as follows: | |
| 263 | 251 | ||
| 264 | 252 | (1) | |
| 265 | 253 | ||
| 266 | 254 | ||
| 267 | 255 | ||
| 268 | 256 | (A) The California Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year. | |
| 269 | 257 | ||
| 270 | 258 | (2) | |
| 271 | 259 | ||
| 272 | 260 | ||
| 273 | 261 | ||
| 274 | 262 | (B) The Franchise Tax Board shall do both of the following: | |
| 275 | 263 | ||
| 276 | 264 | (A) | |
| 277 | 265 | ||
| 278 | 266 | ||
| 279 | 267 | ||
| 280 | 268 | (i) Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to paragraph (1) subparagraph (A) and dividing the result by 100. | |
| 281 | 269 | ||
| 282 | 270 | (B) | |
| 283 | 271 | ||
| 284 | 272 | ||
| 285 | 273 | ||
| 286 | 274 | (ii) Multiply the preceding taxable year income tax brackets by the inflation adjustment factor determined in subparagraph (A) clause (i) and round off the resulting products to the nearest one dollar ($1). | |
| 287 | 275 | ||
| 288 | 276 | (2) This subdivision shall not apply to taxable years beginning on or after January 1, 2025, and before January 1, 2026. | |
| 289 | 277 | ||
| 290 | - | (3) For taxable years beginning on or after January 1, 2030, and before January 1, 2031, the proceeding taxable year income tax brackets for purposes of clause (ii) of subparagraph (B) of paragraph (1) shall be what the income tax bracket would have been in that taxable year, including the computation required under this subdivision, if not for the revised brackets specified in paragraph (3) of subdivision (a) or paragraph (3) of subdivision (c), as applicable. | |
| 291 | - | ||
| 292 | 278 | (i) (1) For purposes of this part, the term taxable income of a nonresident or part-year resident includes each of the following: | |
| 293 | 279 | ||
| 294 | 280 | (A) For any part of the taxable year during which the taxpayer was a resident of this state (as state, as defined by Section 17014), 17014, all items of gross income and all deductions, regardless of source. | |
| 295 | 281 | ||
| 296 | 282 | (B) For any part of the taxable year during which the taxpayer was not a resident of this state, gross income and deductions derived from sources within this state, determined in accordance with Article 9 of Chapter 3 (commencing with Section 17301) and Chapter 11 (commencing with Section 17951). | |
| 297 | 283 | ||
| 298 | 284 | (2) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), the amount of any net operating loss sustained in any taxable year during any part of which the taxpayer was not a resident of this state shall be limited to the sum of the following: | |
| 299 | 285 | ||
| 300 | 286 | (A) The amount of the loss attributable to the part of the taxable year in which the taxpayer was a resident. | |
| 301 | 287 | ||
| 302 | 288 | (B) The amount of the loss which, during the part of the taxable year the taxpayer is not a resident, is attributable to California source income and deductions allowable in arriving at taxable income of a nonresident or part-year resident. | |
| 303 | 289 | ||
| 304 | 290 | (3) For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), any carryover items, deferred income, suspended losses, or suspended deductions shall only be includable or allowable to the extent that the carryover item, deferred income, suspended loss, or suspended deduction was derived from sources within this state, calculated as if the nonresident or part-year resident, for the portion of the year he or she they were was a nonresident, had been a nonresident for all prior years. | |
| 305 | 291 | ||
| 306 | 292 | (j) It is the intent of the Legislature to comply with Section 41. | |
| 307 | 293 | ||
| 308 | 294 | 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. | |
| 309 | 295 | ||
| 310 | 296 | 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. | |
| 311 | 297 | ||
| 312 | 298 | 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. | |
| 313 | 299 | ||
| 314 | 300 | ### SEC. 2. | |
| 315 | - | ||
| 316 | - | ||
| 317 | - | ||
| 318 | - | ||
| 319 | - | ||
| 320 | - | (a)(1)There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident, except the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of this state for the entire taxable year and for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions: | |
| 321 | - | ||
| 322 | - | ||
| 323 | - | ||
| 324 | - | If the taxable income is: The tax is: | |
| 325 | - | Not over $3,650 1% of the taxable income | |
| 326 | - | Over $3,650 but notover $8,650 $36.50 plus 2% of the excessover $3,650 | |
| 327 | - | Over $8,650 but notover $13,650 $136.50 plus 4% of the excessover $8,650 | |
| 328 | - | Over $13,650 but notover $18,950 $336.50 plus 6% of the excessover $13,650 | |
| 329 | - | Over $18,950 but notover $23,950 $654.50 plus 8% of the excessover $18,950 | |
| 330 | - | Over $23,950 $1,054.50 plus 9.3% of the excessover $23,950 | |
| 331 | - | ||
| 332 | - | If the taxable income is: | |
| 333 | - | ||
| 334 | - | ||
| 335 | - | ||
| 336 | - | The tax is: | |
| 337 | - | ||
| 338 | - | ||
| 339 | - | ||
| 340 | - | Not over $3,650 | |
| 341 | - | ||
| 342 | - | ||
| 343 | - | ||
| 344 | - | 1% of the taxable income | |
| 345 | - | ||
| 346 | - | ||
| 347 | - | ||
| 348 | - | Over $3,650 but not | |
| 349 | - | ||
| 350 | - | ||
| 351 | - | ||
| 352 | - | over $8,650 | |
| 353 | - | ||
| 354 | - | ||
| 355 | - | ||
| 356 | - | $36.50 plus 2% of the excessover $3,650 | |
| 357 | - | ||
| 358 | - | ||
| 359 | - | ||
| 360 | - | Over $8,650 but not | |
| 361 | - | ||
| 362 | - | ||
| 363 | - | ||
| 364 | - | over $13,650 | |
| 365 | - | ||
| 366 | - | ||
| 367 | - | ||
| 368 | - | $136.50 plus 4% of the excessover $8,650 | |
| 369 | - | ||
| 370 | - | ||
| 371 | - | ||
| 372 | - | Over $13,650 but not | |
| 373 | - | ||
| 374 | - | ||
| 375 | - | ||
| 376 | - | over $18,950 | |
| 377 | - | ||
| 378 | - | ||
| 379 | - | ||
| 380 | - | $336.50 plus 6% of the excessover $13,650 | |
| 381 | - | ||
| 382 | - | ||
| 383 | - | ||
| 384 | - | Over $18,950 but not | |
| 385 | - | ||
| 386 | - | ||
| 387 | - | ||
| 388 | - | over $23,950 | |
| 389 | - | ||
| 390 | - | ||
| 391 | - | ||
| 392 | - | $654.50 plus 8% of the excessover $18,950 | |
| 393 | - | ||
| 394 | - | ||
| 395 | - | ||
| 396 | - | Over $23,950 | |
| 397 | - | ||
| 398 | - | ||
| 399 | - | ||
| 400 | - | $1,054.50 plus 9.3% of the excessover $23,950 | |
| 401 | - | ||
| 402 | - | ||
| 403 | - | ||
| 404 | - | (2)For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage. | |
| 405 | - | ||
| 406 | - | ||
| 407 | - | ||
| 408 | - | (3)For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following: | |
| 409 | - | ||
| 410 | - | ||
| 411 | - | ||
| 412 | - | If the taxable income is: The tax is: | |
| 413 | - | Not over $8,650 1% of the taxable income | |
| 414 | - | Over $8,650 but notover $13,650 $86.50 plus 3% of the excessover $8,650 | |
| 415 | - | Over $13,650 but notover $18,950 $236.50 plus 5% of the excessover $13,650 | |
| 416 | - | Over $18,950 but notover $23,950 $501.50 plus 7% of the excessover $18,950 | |
| 417 | - | Over $23,950 $851.50 plus 8.3% of the excessover $23,950 | |
| 418 | - | ||
| 419 | - | If the taxable income is: | |
| 420 | - | ||
| 421 | - | ||
| 422 | - | ||
| 423 | - | The tax is: | |
| 424 | - | ||
| 425 | - | ||
| 426 | - | ||
| 427 | - | Not over $8,650 | |
| 428 | - | ||
| 429 | - | ||
| 430 | - | ||
| 431 | - | 1% of the taxable income | |
| 432 | - | ||
| 433 | - | ||
| 434 | - | ||
| 435 | - | Over $8,650 but not | |
| 436 | - | ||
| 437 | - | ||
| 438 | - | ||
| 439 | - | over $13,650 | |
| 440 | - | ||
| 441 | - | ||
| 442 | - | ||
| 443 | - | $86.50 plus 3% of the excessover $8,650 | |
| 444 | - | ||
| 445 | - | ||
| 446 | - | ||
| 447 | - | Over $13,650 but not | |
| 448 | - | ||
| 449 | - | ||
| 450 | - | ||
| 451 | - | over $18,950 | |
| 452 | - | ||
| 453 | - | ||
| 454 | - | ||
| 455 | - | $236.50 plus 5% of the excessover $13,650 | |
| 456 | - | ||
| 457 | - | ||
| 458 | - | ||
| 459 | - | Over $18,950 but not | |
| 460 | - | ||
| 461 | - | ||
| 462 | - | ||
| 463 | - | over $23,950 | |
| 464 | - | ||
| 465 | - | ||
| 466 | - | ||
| 467 | - | $501.50 plus 7% of the excessover $18,950 | |
| 468 | - | ||
| 469 | - | ||
| 470 | - | ||
| 471 | - | Over $23,950 | |
| 472 | - | ||
| 473 | - | ||
| 474 | - | ||
| 475 | - | $851.50 plus 8.3% of the excessover $23,950 | |
| 476 | - | ||
| 477 | - | ||
| 478 | - | ||
| 479 | - | (b)(1)There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident, except the head of a household as defined in Section 17042, a tax as calculated in paragraph (2). | |
| 480 | - | ||
| 481 | - | ||
| 482 | - | ||
| 483 | - | (2)The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (a) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income. | |
| 484 | - | ||
| 485 | - | ||
| 486 | - | ||
| 487 | - | (c)(1)There shall be imposed for each taxable year upon the entire taxable income of every resident of this state who is not a part-year resident for that taxable year, when the resident is the head of a household, as defined in Section 17042, taxes in the following amounts and at the following rates upon the amount of taxable income computed for the taxable year as if the resident were a resident of the state for the entire taxable year and for all prior taxable years for carryover items, deferred income, suspended losses, or suspended deductions: | |
| 488 | - | ||
| 489 | - | ||
| 490 | - | ||
| 491 | - | If the taxable income is: The tax is: | |
| 492 | - | Not over $7,300 1% of the taxable income | |
| 493 | - | Over $7,300 but notover $17,300 $73 plus 2% of the excessover $7,300 | |
| 494 | - | Over $17,300 but notover $22,300 $273 plus 4% of the excessover $17,300 | |
| 495 | - | Over $22,300 but notover $27,600 $473 plus 6% of the excessover $22,300 | |
| 496 | - | Over $27,600 but notover $32,600 $791 plus 8% of the excessover $27,600 | |
| 497 | - | Over $32,600 $1,191 plus 9.3% of the excessover $32,600 | |
| 498 | - | ||
| 499 | - | If the taxable income is: | |
| 500 | - | ||
| 501 | - | ||
| 502 | - | ||
| 503 | - | The tax is: | |
| 504 | - | ||
| 505 | - | ||
| 506 | - | ||
| 507 | - | Not over $7,300 | |
| 508 | - | ||
| 509 | - | ||
| 510 | - | ||
| 511 | - | 1% of the taxable income | |
| 512 | - | ||
| 513 | - | ||
| 514 | - | ||
| 515 | - | Over $7,300 but not | |
| 516 | - | ||
| 517 | - | ||
| 518 | - | ||
| 519 | - | over $17,300 | |
| 520 | - | ||
| 521 | - | ||
| 522 | - | ||
| 523 | - | $73 plus 2% of the excessover $7,300 | |
| 524 | - | ||
| 525 | - | ||
| 526 | - | ||
| 527 | - | Over $17,300 but not | |
| 528 | - | ||
| 529 | - | ||
| 530 | - | ||
| 531 | - | over $22,300 | |
| 532 | - | ||
| 533 | - | ||
| 534 | - | ||
| 535 | - | $273 plus 4% of the excessover $17,300 | |
| 536 | - | ||
| 537 | - | ||
| 538 | - | ||
| 539 | - | Over $22,300 but not | |
| 540 | - | ||
| 541 | - | ||
| 542 | - | ||
| 543 | - | over $27,600 | |
| 544 | - | ||
| 545 | - | ||
| 546 | - | ||
| 547 | - | $473 plus 6% of the excessover $22,300 | |
| 548 | - | ||
| 549 | - | ||
| 550 | - | ||
| 551 | - | Over $27,600 but not | |
| 552 | - | ||
| 553 | - | ||
| 554 | - | ||
| 555 | - | over $32,600 | |
| 556 | - | ||
| 557 | - | ||
| 558 | - | ||
| 559 | - | $791 plus 8% of the excessover $27,600 | |
| 560 | - | ||
| 561 | - | ||
| 562 | - | ||
| 563 | - | Over $32,600 | |
| 564 | - | ||
| 565 | - | ||
| 566 | - | ||
| 567 | - | $1,191 plus 9.3% of the excessover $32,600 | |
| 568 | - | ||
| 569 | - | ||
| 570 | - | ||
| 571 | - | (2)For taxable years beginning on or after January 1, 2009, and before January 1, 2011, the percentages specified in the table in paragraph (1) shall be increased by adding 0.25 percent to each percentage. | |
| 572 | - | ||
| 573 | - | ||
| 574 | - | ||
| 575 | - | (3)For taxable years beginning on or after January 1, 2025, the income tax brackets and rates set forth in paragraph (1) shall be replaced with the following: | |
| 576 | - | ||
| 577 | - | ||
| 578 | - | ||
| 579 | - | If the taxable income is: The tax is: | |
| 580 | - | Not over $17,300 1% of the taxable income | |
| 581 | - | Over $17,300 but notover $22,300 $173 plus 3% of the excessover $17,300 | |
| 582 | - | Over $22,300 but notover $27,600 $323 plus 5% of the excessover $22,300 | |
| 583 | - | Over $27,600 but notover $32,600 $588 plus 7% of the excessover $27,600 | |
| 584 | - | Over $32,600 $938 plus 8.3% of the excessover $32,600 | |
| 585 | - | ||
| 586 | - | If the taxable income is: | |
| 587 | - | ||
| 588 | - | ||
| 589 | - | ||
| 590 | - | The tax is: | |
| 591 | - | ||
| 592 | - | ||
| 593 | - | ||
| 594 | - | Not over $17,300 | |
| 595 | - | ||
| 596 | - | ||
| 597 | - | ||
| 598 | - | 1% of the taxable income | |
| 599 | - | ||
| 600 | - | ||
| 601 | - | ||
| 602 | - | Over $17,300 but not | |
| 603 | - | ||
| 604 | - | ||
| 605 | - | ||
| 606 | - | over $22,300 | |
| 607 | - | ||
| 608 | - | ||
| 609 | - | ||
| 610 | - | $173 plus 3% of the excessover $17,300 | |
| 611 | - | ||
| 612 | - | ||
| 613 | - | ||
| 614 | - | Over $22,300 but not | |
| 615 | - | ||
| 616 | - | ||
| 617 | - | ||
| 618 | - | over $27,600 | |
| 619 | - | ||
| 620 | - | ||
| 621 | - | ||
| 622 | - | $323 plus 5% of the excessover $22,300 | |
| 623 | - | ||
| 624 | - | ||
| 625 | - | ||
| 626 | - | Over $27,600 but not | |
| 627 | - | ||
| 628 | - | ||
| 629 | - | ||
| 630 | - | over $32,600 | |
| 631 | - | ||
| 632 | - | ||
| 633 | - | ||
| 634 | - | $588 plus 7% of the excessover $27,600 | |
| 635 | - | ||
| 636 | - | ||
| 637 | - | ||
| 638 | - | Over $32,600 | |
| 639 | - | ||
| 640 | - | ||
| 641 | - | ||
| 642 | - | $938 plus 8.3% of the excessover $32,600 | |
| 643 | - | ||
| 644 | - | ||
| 645 | - | ||
| 646 | - | (d)(1)There shall be imposed for each taxable year upon the taxable income of every nonresident or part-year resident when the nonresident or part-year resident is the head of a household, as defined in Section 17042, a tax as calculated in paragraph (2). | |
| 647 | - | ||
| 648 | - | ||
| 649 | - | ||
| 650 | - | (2)The tax imposed under paragraph (1) shall be calculated by multiplying the taxable income of a nonresident or part-year resident, as defined in subdivision (i), by a rate (expressed as a percentage) equal to the tax computed under subdivision (c) on the entire taxable income of the nonresident or part-year resident as if the nonresident or part-year resident were a resident of this state for the taxable year and as if the nonresident or part-year resident were a resident of this state for all prior taxable years for any carryover items, deferred income, suspended losses, or suspended deductions, divided by the amount of that income. | |
| 651 | - | ||
| 652 | - | ||
| 653 | - | ||
| 654 | - | (e)There shall be imposed for each taxable year upon the taxable income of every estate, trust, or common trust fund taxes equal to the amount computed under subdivision (a) for an individual having the same amount of taxable income. | |
| 655 | - | ||
| 656 | - | ||
| 657 | - | ||
| 658 | - | (f)The tax imposed by this part is not a surtax. | |
| 659 | - | ||
| 660 | - | ||
| 661 | - | ||
| 662 | - | (g)(1)Section 1(g) of the Internal Revenue Code, relating to certain unearned income of children taxed as if parents income, shall apply, except as otherwise provided. | |
| 663 | - | ||
| 664 | - | ||
| 665 | - | ||
| 666 | - | (2)Section 1(g)(7)(B)(ii)(II) of the Internal Revenue Code is modified, for purposes of this part, by substituting 1 percent for 10 percent. | |
| 667 | - | ||
| 668 | - | ||
| 669 | - | ||
| 670 | - | (h)(1)For each taxable year beginning on or after January 1, 1988, the Franchise Tax Board shall recompute the income tax brackets prescribed in subdivisions (a) and (c). That computation shall be made as follows: | |
| 671 | - | ||
| 672 | - | ||
| 673 | - | ||
| 674 | - | (A)The Department of Industrial Relations shall transmit annually to the Franchise Tax Board the percentage change in the California Consumer Price Index for all items from June of the prior calendar year to June of the current calendar year, no later than August 1 of the current calendar year. | |
| 675 | - | ||
| 676 | - | ||
| 677 | - | ||
| 678 | - | (B)The Franchise Tax Board shall do both of the following: | |
| 679 | - | ||
| 680 | - | ||
| 681 | - | ||
| 682 | - | (i)Compute an inflation adjustment factor by adding 100 percent to the percentage change figure that is furnished pursuant to subparagraph (A) and dividing the result by 100. | |
| 683 | - | ||
| 684 | - | ||
| 685 | - | ||
| 686 | - | (ii)Multiply the preceding taxable year income tax brackets by the inflation adjustment factor determined in clause (i) and round off the resulting products to the nearest one dollar ($1). | |
| 687 | - | ||
| 688 | - | ||
| 689 | - | ||
| 690 | - | (2)This subdivision shall not apply to taxable years beginning on or after January 1, 2025, and before January 1, 2026. | |
| 691 | - | ||
| 692 | - | ||
| 693 | - | ||
| 694 | - | (i)(1)For purposes of this part, the term taxable income of a nonresident or part-year resident includes each of the following: | |
| 695 | - | ||
| 696 | - | ||
| 697 | - | ||
| 698 | - | (A)For any part of the taxable year during which the taxpayer was a resident of this state, as defined by Section 17014, all items of gross income and all deductions, regardless of source. | |
| 699 | - | ||
| 700 | - | ||
| 701 | - | ||
| 702 | - | (B)For any part of the taxable year during which the taxpayer was not a resident of this state, gross income and deductions derived from sources within this state, determined in accordance with Article 9 of Chapter 3 (commencing with Section 17301) and Chapter 11 (commencing with Section 17951). | |
| 703 | - | ||
| 704 | - | ||
| 705 | - | ||
| 706 | - | (2)For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), the amount of any net operating loss sustained in any taxable year during any part of which the taxpayer was not a resident of this state shall be limited to the sum of the following: | |
| 707 | - | ||
| 708 | - | ||
| 709 | - | ||
| 710 | - | (A)The amount of the loss attributable to the part of the taxable year in which the taxpayer was a resident. | |
| 711 | - | ||
| 712 | - | ||
| 713 | - | ||
| 714 | - | (B)The amount of the loss which, during the part of the taxable year the taxpayer is not a resident, is attributable to California source income and deductions allowable in arriving at taxable income of a nonresident or part-year resident. | |
| 715 | - | ||
| 716 | - | ||
| 717 | - | ||
| 718 | - | (3)For purposes of computing taxable income of a nonresident or part-year resident under paragraph (1), any carryover items, deferred income, suspended losses, or suspended deductions shall only be includable or allowable to the extent that the carryover item, deferred income, suspended loss, or suspended deduction was derived from sources within this state, calculated as if the nonresident or part-year resident, for the portion of the year they were was a nonresident, had been a nonresident for all prior years. | |
| 719 | - | ||
| 720 | - | ||
| 721 | - | ||
| 722 | - | (j)It is the intent of the Legislature to comply with Section 41. | |
| 723 | - | ||
| 724 | - | ||
| 725 | - | ||
| 726 | - | ||
| 727 | - | ||
| 728 | - | This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |