California 2013-2014 Regular Session Status: Passed Senate

SB 1372 — Corporation taxes: tax rates: publicly held corporations: credits.

Last action — Read third time. Refused passage. (Ayes 18. Noes 17. Page 4953.)

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

This bill died with 2013-2014 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) The Corporation Tax Law imposes taxes according to or measured by net income at a rate of 8.84%, or for financial institutions, at a rate of 10.84%, as specified. This bill would, for taxable years beginning on and after January 1, 2015, revise that rate for taxpayers that are publicly held corporations, as defined, and instead impose a tax rate from 7% to 13%, or for financial institutions, from 9% to 15%, based on the compensation ratio, as defined, of the corporation. This bill would increase the applicable tax rate by 50% for those taxpayers that have a specified decrease in full-time employees employed in the United States as compared to an increase in contracted and foreign full-time employees, as described. (2) Existing law establishes the California Competes Tax Credit Committee, which has specified duties in regard to tax credits for economic development. Existing law establishes the Governor's Office of Business and Economic Development, also known as "GO-Biz," to, among other duties, serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. The Corporation Tax Law allows various credits against the tax imposed by that law. This bill, for taxable years beginning on or after January 1, 2015, would allow a credit to a qualified taxpayer, as defined, in an amount as provided in a written agreement between GO-Biz and the qualified taxpayer, agreed upon by the committee, and based on specified factors, including the number of jobs the qualified taxpayer will create or retain in the state and the amount of investment in the state by the qualified taxpayer. The bill would limit the total amount of the credit available to an amount equal to the amount of revenue generated by the application of the above-referenced tax rates on publicly held corporations. The bill would also impose various duties upon GO-Biz, including the adoption of regulations. (3) This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.

Bill Text

Action History

  1. Read third time. Refused passage. (Ayes 18. Noes 17. Page 4953.)

  2. Read second time. Ordered to third reading.

  3. Ordered to second reading.

  4. Read third time and amended.

  5. Reconsideration granted. (Ayes 36. Noes 0. Page 3667.)

  6. Motion to reconsider made by Senator DeSaulnier.

  7. Read third time. Refused passage. (Ayes 19. Noes 17. Page 3667.)

  8. Read second time. Ordered to third reading.

  9. From committee: Do pass. (Ayes 5. Noes 2. Page 3715.) (May 23).

  10. Set for hearing May 23.

  11. Placed on APPR. suspense file.

  12. Set for hearing May 12.

  13. Read second time and amended. Re-referred to Com. on APPR.

  14. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 2. Page 3257.) (April 24).

  15. From committee with author's amendments. Read second time and amended. Re-referred to Com. on GOV. & F.

  16. Set for hearing April 24.

  17. Re-referred to Com. on GOV. & F.

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

  19. Referred to Com. on RLS.

  20. Read first time.

  21. From printer. May be acted upon on or after March 24.

  22. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

  • DeSaulnier · Primary
  • Hancock · Cosponsor

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on · 2 voted No

Sponsors (1)

  • DeSaulnier

Co-sponsors (1)

  • Hancock

Not signed on (120)

120 members have not signed on to this bill.

Show all 120 →

"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

3rd Reading

Failed 18 Yea · 17 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 161704
Democratic 2001
Total 181705
% of votes cast 45%43%0%13%
How each member voted (40)
Member Party Vote
Hernandez — Yea
Huff — Nay
Leno — Yea
Monning — Yea
Steinberg — Yea
Wyland — Nay
Mitchell — Yea
Lara — Yea
Lieu — Yea
Liu — Yea
Pavley — Yea
Wolk — Yea
Beall — Yea
De León — Yea
Wright — Not Voting
Cannella — Nay
Fuller — Nay
Hill — Nay
Hueso — Yea
Correa — Nay
Anderson — Nay
Block — Nay
Knight — Nay
Morrell — Nay
Nielsen — Nay
Roth — Not Voting
Torres — Nay
Vidak — Nay
Walters — Nay
Corbett — Yea
Evans — Not Voting
DeSaulnier — Yea
Galgiani — Nay
Yee — Not Voting
Hancock — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
Calderon, Lisa Democratic Not Voting
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

3rd Reading

Failed 19 Yea · 17 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 171703
Democratic 2001
Total 191704
% of votes cast 48%43%0%10%
How each member voted (40)
Member Party Vote
Anderson — Nay
Block — Nay
Huff — Nay
Knight — Nay
Lieu — Yea
Nielsen — Nay
Pavley — Yea
Wright — Not Voting
Corbett — Yea
Correa — Nay
Evans — Yea
Cannella — Nay
Hancock — Yea
Mitchell — Yea
De León — Yea
Hernandez — Yea
Hueso — Yea
Beall — Yea
Lara — Yea
Leno — Yea
Liu — Yea
Monning — Yea
Morrell — Nay
Steinberg — Yea
Vidak — Nay
Wolk — Yea
Wyland — Nay
Hill — Nay
Roth — Nay
Torres — Not Voting
Walters — Nay
DeSaulnier — Yea
Fuller — Nay
Galgiani — Nay
Yee — Not Voting
Beth Gaines — Nay
Bill Berryhill — Nay
Calderon, Lisa Democratic Not Voting
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

3rd Reading SB1372 DeSaulnier Reconsider

Passed 36 Yea · 0 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 34003
Democratic 2001
Total 36004
% of votes cast 90%0%0%10%
How each member voted (40)
Member Party Vote
Anderson — Yea
Beall — Yea
Hernandez — Yea
Hill — Yea
Lara — Yea
Liu — Yea
Cannella — Yea
Evans — Yea
Correa — Yea
Mitchell — Yea
Wright — Not Voting
De León — Yea
Wyland — Yea
Corbett — Not Voting
Hancock — Yea
Hueso — Yea
Block — Yea
Knight — Yea
Lieu — Yea
Monning — Yea
Morrell — Yea
Pavley — Yea
Roth — Yea
Steinberg — Yea
Torres — Yea
Vidak — Yea
Walters — Yea
Wolk — Yea
Galgiani — Yea
Huff — Yea
Leno — Yea
Nielsen — Yea
DeSaulnier — Yea
Fuller — Yea
Yee — Not Voting
Beth Gaines — Yea
Bill Berryhill — Yea
Calderon, Lisa Democratic Not Voting
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

Do pass.

Passed 5 Yea · 2 Nay
Party YeaNayPresentNot Voting
Unaffiliated 4200
Democratic 1000
Total 5200
% of votes cast 71%29%0%0%
How each member voted (7)
Member Party Vote
Hill — Yea
De León — Yea
Lara — Yea
Steinberg — Yea
Walters — Nay
Beth Gaines — Nay
Padilla, Stephen C. Democratic Yea

Official roll call →

Subjects

taxation
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Frequently asked questions

What does SB 1372 do?
(1) The Corporation Tax Law imposes taxes according to or measured by net income at a rate of 8.84%, or for financial institutions, at a rate of 10.84%, as specified. This bill would, for taxable years beginning on and after January 1, 2015, revise that rate for taxpayers that are publicly held corporations, as defined, and instead impose a tax rate from 7% to 13%, or for financial institutions, from 9% to 15%, based on the compensation ratio, as defined, of the corporation. This bill would increase the applicable tax rate by 50% for those taxpayers that have a specified decrease in full-time employees employed in the United States as compared to an increase in contracted and foreign full-time employees, as described. (2) Existing law establishes the California Competes Tax Credit Committee, which has specified duties in regard to tax credits for economic development. Existing law establishes the Governor's Office of Business and Economic Development, also known as "GO-Biz," to, among other duties, serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. The Corporation Tax Law allows various credits against the tax imposed by that law. This bill, for taxable years beginning on or after January 1, 2015, would allow a credit to a qualified taxpayer, as defined, in an amount as provided in a written agreement between GO-Biz and the qualified taxpayer, agreed upon by the committee, and based on specified factors, including the number of jobs the qualified taxpayer will create or retain in the state and the amount of investment in the state by the qualified taxpayer. The bill would limit the total amount of the credit available to an amount equal to the amount of revenue generated by the application of the above-referenced tax rates on publicly held corporations. The bill would also impose various duties upon GO-Biz, including the adoption of regulations. (3) This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.
Who sponsors SB 1372?
SB 1372 is sponsored by DeSaulnier and Hancock.
What is the current status of SB 1372?
This bill died with 2013-2014 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 1372?
Track SB 1372 free on One Click Politics — get push/email alerts when it moves.

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