AB 1580 — Taxation: federal conformity.

Summary

Under the Personal Income Tax Law and the Corporation Tax Law, various provisions of the federal Internal Revenue Code, as enacted as of a specified date, are referenced in various sections of the Revenue and Taxation Code. Those laws provide that for taxable years beginning on or after January 1, 2005, the specified date of those referenced Internal Revenue Code sections is January 1, 2005, unless otherwise specifically provided. Existing law requires, for any introduced bill that proposes changes in any of those dates, that the Franchise Tax Board prepare a complete analysis of the bill that describes all changes to state law that will automatically occur by reference to federal law as of the changed date. It further requires the Franchise Tax Board to immediately update and supplement that analysis upon any amendment to the bill, and requires that analysis be made available to the public and be submitted to the Legislature for publication in the daily journal of each house of the Legislature. This bill would change the specified date of those referenced Internal Revenue Code sections to January 1, 2009, for taxable years beginning on or after January 1, 2009, and thereby would make numerous substantive changes to both the Personal Income Tax Law and the Corporation Tax Law with respect to those areas of preexisting conformity that are subject to changes under federal laws enacted after January 1, 2005, and that have not been, or are not being, excepted or modified. This bill would make certain other changes in federal income tax laws applicable, with specified exceptions and modifications, and make specified supplemental, technical, or clarifying changes for purposes of the Personal Income Tax Law or the Corporation Tax Law, or both, with respect to, among other things, the tax treatment of qualifying income of publically traded partnerships certain disaster mitigation payments, depreciation of electric transmission property and natural gas gathering lines, nuclear decommissioning cost provisions, a small refiner exception to oil depletion deduction, recapture rules for amortizable Section 197 intangibles, amortization of expenses incurred in creating or acquiring music or music copyrights, treatment of certain self-created musical works and qualified retirement income, funding for self-employed defined benefit pension plans and for multiemployer defined benefit pension plans, withdrawals from retirement plans for individuals called to active duty, waiver of an early withdrawal penalty tax on certain distributions of pension plans for public safety employees, allowance of additional IRA payments in certain bankruptcy cases, inflation indexing of gross income limitations on certain retirement savings incentives, treatment of death benefits from corporate-owned life insurance, exemption of income from leveraged real estate held by church plans, gratuitous transfer for benefits of employees, exclusion from gross income with respect to a specified tragic event, discharge of qualified principal residence indebtedness, penalties for bad checks, penalty for understatement of taxpayer's liability by a tax preparer, frivolous tax submissions, exclusion of gain from sale of principal residence by certain employees of the intelligence community, sale of property by judicial officers, excise tax on UBTI of charitable remainder trusts, certain listed and reportable transactions provisions, the taxation of certain settlement funds, the active business requirement, loans to qualified continuing care facilities, exception from suspension rules, and specified federal acts. This bill would also increase the age of children whose unearned income is taxed as if a parent's income, would require a penalty to be imposed for a claim or credit made for an excessive amount, would increase the penalty for willful failure to file specified returns, and would revise, in modified conformity with the federal income tax laws, various provisions applicable to tax-exempt organizations. This bill would also specify various dates on which specified provisions apply, make findings and declarations that certain provisions are declaratory of existing law, specify the intent and operation in the application of provisions conforming to various federal acts, repeal obsolete provisions, and declare that the retroactive application of specified provisions serves public purposes, as defined. This bill would incorporate changes made by AB 692 and SB 401 that would become operative if AB 692, SB 401, or both bills are enacted and this bill is enacted after AB 692, SB 401, or both bills. This bill would take effect immediately as a tax levy.

Bill Text

• Enrolled 09/23/09 - Enrolled Current pdf September 23, 2009
• Amended 09/01/09 - Amended Senate pdf September 01, 2009
• Amended 08/18/09 - Amended Senate pdf August 18, 2009
• Amended 06/26/09 - Amended Senate pdf June 26, 2009
• Amended 05/14/09 - Amended Assembly pdf May 14, 2009
• Introduced 03/26/09 - Introduced pdf March 26, 2009
• AB1580 View text html

Action History

1. January 14, 2010

   Consideration of Governor's veto stricken from file.

2. October 26, 2009

   Consideration of Governor's veto pending.

3. October 11, 2009

   Vetoed by Governor.

4. September 28, 2009

   Enrolled and to the Governor at 4 p.m.

5. September 10, 2009

   Senate amendments concurred in. To enrollment. (Ayes 44. Noes 30. Page 3304.)

6. September 09, 2009

   From committee: With recommendation: That Senate amendments be concurred in. (Ayes 10. Noes 5.) (September 9).

7. September 09, 2009

   From committee: With recommendation: That Senate amendments be concurred in, and re-refer to Com. on APPR. Re-referred. (Ayes 6. Noes 2.) (September 9).

8. September 09, 2009

   Joint Rule 62(a), file notice waived. (Ayes 49. Noes 27. Page 3171.)

9. September 09, 2009

   Re-referred to Coms. on REV. & TAX. and APPR. pursuant to Asssembly Rule 77.2.

10. September 08, 2009

    In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 10 pursuant to Assembly Rule 77.

11. September 04, 2009

    Read third time, passed, and to Assembly. (Ayes 22. Noes 17. Page 2209.)

12. September 01, 2009

    Read second time and amended. Ordered to third reading.

13. August 31, 2009

    From committee: Amend, and do pass as amended. (Ayes 8. Noes 5.) (August 27).

14. August 25, 2009

    From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 5. Noes 2.) (August 24).

15. August 18, 2009

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.

16. July 08, 2009

    In committee: Referred to REV. & TAX. suspense file.

17. June 26, 2009

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.

18. June 11, 2009

    Referred to Com. on REV. & TAX.

19. May 28, 2009

    In Senate. Read first time. To Com. on RLS. for assignment.

20. May 28, 2009

    Read third time, passed, and to Senate. (Ayes 76. Noes 0. Page 1769.)

21. May 26, 2009

    Read second time. To Consent Calendar.

22. May 21, 2009

    From committee: Do pass. To Consent Calendar. (May 20).

23. May 18, 2009

    Re-referred to Com. on APPR.

24. May 14, 2009

    From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended.

25. April 28, 2009

    From committee: Do pass, and re-refer to Com. on APPR. with recommendation: To Consent Calendar. Re-referred. (Ayes 8. Noes 0.) (April 27).

26. April 02, 2009

    Referred to Com. on REV. & TAX.

27. March 27, 2009

    From printer. May be heard in committee April 26.

28. March 26, 2009

    Read first time. To print.

Sponsors

• Lisa Calderon · Primary

Votes

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