California 2011-2012 Regular Session Status: Enacted

SB 86 — Tax administration: Franchise Tax Board: State Board of Equalization.

Last action — Chaptered by Secretary of State. Chapter 14, Statutes of 2011.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 10, 2011. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) The Sales and Use Tax Law generally provides, for a transaction not subject to sales tax, that every person storing, using, or otherwise consuming in this state tangible personal property purchased from a retailer for storage, use, or other consumption in this state is liable for use tax, and must pay the use tax to the State Board of Equalization, unless that person has paid the use tax to a retailer registered to collect the tax. Existing law authorizes an eligible person to make an irrevocable election to report qualified use tax, as defined, on that person's income tax return. This bill would, for taxable years beginning on or after January 1, 2011, authorize an eligible person, for one or more single nonbusiness purchases of individual items of tangible personal property each with a sales price of less than $1,000, to either report the estimated amount of use tax due based on the person's California adjusted gross income as reflected in the use tax table shown in the accompanying instructions of the acceptable tax return or the actual amount of use tax that was not paid to a registered retailer. This bill would require the Franchise Tax Board to revise the accompanying instructions for the income tax forms to include the use tax table. (2) The Personal Income Tax Law, in modified informality with federal income tax laws, authorizes a refundable credit against the taxes imposed by that law for household and dependent care expenses necessary for gainful employment, as provided. This bill would make that credit nonrefundable. (3) Existing law imposes various duties on the Franchise Tax Board with respect to the imposition of penalties in connection with tax avoidance, and partially conforms to federal income tax laws with respect to the penalties imposed. This bill, in modified conformity with federal income tax laws, would revise the penalties imposed on underpayments, as specified. The bill would also require the Franchise Tax Board to develop and administer a voluntary compliance initiative, as specified, to be conducted during the period from August 1, 2011, to October 31, 2011, inclusive, and to apply to tax liabilities attributable to the use of abusive tax avoidance transactions and unreported income from the use of offshore financial arrangements, as specified, for taxable years beginning before January 1, 2011. The bill would require the Franchise Tax Board to issue forms and instructions, and to publicize the initiative to maximize public awareness and participation. The bill would authorize any taxpayer meeting the requirements to elect to participate in the voluntary compliance initiative, subject to specified requirements and limitations. For a taxpayer who elects to comply, this bill would waive or abate all penalties, including criminal penalties, as a result of the unreported tax liabilities, except as specified. The bill would extend the timeframe in which a notice of a proposed deficiency assessment for an abusive tax avoidance transaction may be mailed to a taxpayer from within 8 to 12 years after the return was filed, for notices mailed on or after August 1, 2011. (4) Existing laws require the Franchise Tax Board to administer specified taxes and collect those taxes from delinquent tax debtors. This bill would require the board, in coordination with financial institutions doing business in this state, to operate a Financial Institution Record Match System utilizing automated data exchanges to the maximum extent feasible in order to allow the board to match its list of delinquent tax debtors with the lists provided by the financial institutions. The bill would authorize the board to disclose specified taxpayer information for purposes of data matching, to institute civil proceedings to enforce specified provisions of the bill, and would impose specified penalties on financial institutions for failure to provide records in connection with the match system, as provided. This bill would provide that the specified use of certain data is a misdemeanor. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (5) This bill would appropriate $1,000 from the General Fund to the State Board of Equalization for administrative operations. (6) The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. Governor Schwarzenegger issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 6, 2010. Governor Brown issued a proclamation on January 20, 2011, declaring and reaffirming that a fiscal emergency exists and stating that his proclamation supersedes the earlier proclamation for purpose of that constitutional provision. This bill would state that it addresses the fiscal emergency declared and reaffirmed by the Governor by proclamation issued on January 20, 2011, pursuant to the California Constitution. (7) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 14, Statutes of 2011.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3:50 p.m.

  4. Assembly amendments concurred in. (Ayes 23. Noes 16. Page 373.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 52. Noes 25. Page 611.) Ordered to the Senate.

  7. (Corrected March 18.)

  8. Read third time and amended. (Page 607.)

  9. Ordered to third reading.

  10. Withdrawn from committee.

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

  12. Referred to Com. on BUDGET.

  13. In Assembly. Read first time. Held at Desk.

  14. Read third time. Passed. (Ayes 22. Noes 2. Page 168.) Ordered to the Assembly.

  15. Read second time. Ordered to third reading.

  16. Ordered to second reading.

  17. Withdrawn from committee.

  18. Referred to Com. on RLS.

  19. From printer. May be acted upon on or after February 10.

  20. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Committee on Budget and Fiscal Review · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 6 voted No

Sponsors (1)

  • Committee on Budget and Fiscal Review

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 86 B. & F. R. Senate Third Reading By BLUMENFIELD

Passed 52 Yea · 25 Nay · 2 Other
Party YeaNayPresentNot Voting
Republican 0200
Unaffiliated 492302
Democratic 3000
Total 522502
% of votes cast 66%32%0%3%
How each member voted (79)
Member Party Vote
Hall — Yea
Eng — Yea
Butler — Yea
Feuer — Yea
Fuentes — Yea
Furutani — Yea
Galgiani — Yea
Gordon — Yea
Carter — Yea
Hayashi — Yea
Hill — Yea
Hueso — Yea
Huffman — Yea
Portantino — Yea
John A. Pérez — Yea
Mitchell — Yea
Blumenfield — Yea
Cedillo — Yea
Chesbro — Yea
Perea — Yea
Skinner — Yea
Torres — Yea
Williams — Yea
Campos — Yea
Bonilla — Yea
Atkins — Yea
Garrick — Nay
Gorell — Not Voting
Fletcher — Nay
Hagman — Nay
Halderman — Nay
Conway — Nay
Harkey — Nay
Jeffries — Nay
Cook — Nay
Donnelly — Nay
Lara — Yea
Mendoza — Yea
Miller — Nay
Monning — Yea
Morrell — Nay
Nielsen — Nay
Norby — Not Voting
Smyth — Nay
Wagner — Nay
Wieckowski — Yea
Achadjian — Nay
Alejo — Yea
Ammiano — Yea
Beall — Yea
Block — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Huber — Yea
Knight — Nay
Logue — Nay
Ma — Yea
Mansoor — Nay
Nestande — Nay
Olsen — Nay
Pan — Yea
Silva — Nay
Solorio — Yea
Swanson — Yea
Valadao — Nay
Davis — Yea
Dickinson — Yea
Gatto — Yea
Yamada — Yea
Bill Berryhill — Nay
Bonnie Lowenthal — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Allen, Benjamin Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay

Official roll call →

Unfinished Supp 1 SB86 Committee on B. & F.R.

Passed 23 Yea · 16 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 211501
Democratic 2000
Republican 0100
Total 231601
% of votes cast 58%40%0%3%
How each member voted (40)
Member Party Vote
Hancock — Yea
Hernandez — Yea
Lieu — Yea
Liu — Yea
Simitian — Yea
Steinberg — Yea
Wolk — Yea
Yee — Yea
Lowenthal — Yea
De León — Yea
Evans — Yea
Negrete McLeod — Yea
Corbett — Yea
Price — Yea
Vargas — Yea
Wright — Yea
Fuller — Nay
Wyland — Nay
Cannella — Nay
Dutton — Nay
Emmerson — Nay
Harman — Nay
Runner — Nay
Rubio — Not Voting
Correa — Nay
Walters — Nay
Alquist — Yea
Anderson — Nay
Blakeslee — Nay
Huff — Nay
Kehoe — Yea
Leno — Yea
Pavley — Yea
DeSaulnier — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
La Malfa — Nay
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

3rd Reading SB86 Committee on B. & F.R.

Passed 22 Yea · 2 Nay · 14 Other
Party YeaNayPresentNot Voting
Unaffiliated 202013
Democratic 2000
Republican 0001
Total 222014
% of votes cast 58%5%0%37%
How each member voted (38)
Member Party Vote
Yee — Yea
Hancock — Yea
Hernandez — Yea
Lowenthal — Yea
De León — Yea
Steinberg — Yea
Wolk — Yea
Wright — Yea
Wyland — Nay
Negrete McLeod — Yea
Rubio — Yea
Evans — Yea
Cannella — Not Voting
Blakeslee — Not Voting
Corbett — Yea
Dutton — Not Voting
Leno — Yea
Price — Not Voting
Walters — Not Voting
Alquist — Yea
Anderson — Nay
Harman — Not Voting
Huff — Not Voting
Kehoe — Yea
Liu — Yea
Pavley — Not Voting
Simitian — Yea
Vargas — Yea
Emmerson — Not Voting
Correa — Yea
DeSaulnier — Yea
Fuller — Not Voting
Beth Gaines — Not Voting
Bill Berryhill — Not Voting
La Malfa — Not Voting
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Not Voting

Official roll call →

Subjects

taxation
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Frequently asked questions

What does SB 86 do?
(1) The Sales and Use Tax Law generally provides, for a transaction not subject to sales tax, that every person storing, using, or otherwise consuming in this state tangible personal property purchased from a retailer for storage, use, or other consumption in this state is liable for use tax, and must pay the use tax to the State Board of Equalization, unless that person has paid the use tax to a retailer registered to collect the tax. Existing law authorizes an eligible person to make an irrevocable election to report qualified use tax, as defined, on that person's income tax return. This bill would, for taxable years beginning on or after January 1, 2011, authorize an eligible person, for one or more single nonbusiness purchases of individual items of tangible personal property each with a sales price of less than $1,000, to either report the estimated amount of use tax due based on the person's California adjusted gross income as reflected in the use tax table shown in the accompanying instructions of the acceptable tax return or the actual amount of use tax that was not paid to a registered retailer. This bill would require the Franchise Tax Board to revise the accompanying instructions for the income tax forms to include the use tax table. (2) The Personal Income Tax Law, in modified informality with federal income tax laws, authorizes a refundable credit against the taxes imposed by that law for household and dependent care expenses necessary for gainful employment, as provided. This bill would make that credit nonrefundable. (3) Existing law imposes various duties on the Franchise Tax Board with respect to the imposition of penalties in connection with tax avoidance, and partially conforms to federal income tax laws with respect to the penalties imposed. This bill, in modified conformity with federal income tax laws, would revise the penalties imposed on underpayments, as specified. The bill would also require the Franchise Tax Board to develop and administer a voluntary compliance initiative, as specified, to be conducted during the period from August 1, 2011, to October 31, 2011, inclusive, and to apply to tax liabilities attributable to the use of abusive tax avoidance transactions and unreported income from the use of offshore financial arrangements, as specified, for taxable years beginning before January 1, 2011. The bill would require the Franchise Tax Board to issue forms and instructions, and to publicize the initiative to maximize public awareness and participation. The bill would authorize any taxpayer meeting the requirements to elect to participate in the voluntary compliance initiative, subject to specified requirements and limitations. For a taxpayer who elects to comply, this bill would waive or abate all penalties, including criminal penalties, as a result of the unreported tax liabilities, except as specified. The bill would extend the timeframe in which a notice of a proposed deficiency assessment for an abusive tax avoidance transaction may be mailed to a taxpayer from within 8 to 12 years after the return was filed, for notices mailed on or after August 1, 2011. (4) Existing laws require the Franchise Tax Board to administer specified taxes and collect those taxes from delinquent tax debtors. This bill would require the board, in coordination with financial institutions doing business in this state, to operate a Financial Institution Record Match System utilizing automated data exchanges to the maximum extent feasible in order to allow the board to match its list of delinquent tax debtors with the lists provided by the financial institutions. The bill would authorize the board to disclose specified taxpayer information for purposes of data matching, to institute civil proceedings to enforce specified provisions of the bill, and would impose specified penalties on financial institutions for failure to provide records in connection with the match system, as provided. This bill would provide that the specified use of certain data is a misdemeanor. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (5) This bill would appropriate $1,000 from the General Fund to the State Board of Equalization for administrative operations. (6) The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. Governor Schwarzenegger issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 6, 2010. Governor Brown issued a proclamation on January 20, 2011, declaring and reaffirming that a fiscal emergency exists and stating that his proclamation supersedes the earlier proclamation for purpose of that constitutional provision. This bill would state that it addresses the fiscal emergency declared and reaffirmed by the Governor by proclamation issued on January 20, 2011, pursuant to the California Constitution. (7) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Who sponsors SB 86?
SB 86 is sponsored by Committee on Budget and Fiscal Review.
What is the current status of SB 86?
This bill has been enacted into law. Introduced January 10, 2011. Enacted.
Where can I track SB 86?
Track SB 86 free on One Click Politics — get push/email alerts when it moves.

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