California 2019-2020 Regular Session Status: In Committee 1 D cosponsors

SB 37 — Corporation taxes: tax rates.

Last action — Returned to Secretary of Senate pursuant to Joint Rule 56.

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

This bill died with 2019-2020 Regular Session. It reached “In Committee” 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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

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 or after January 1, 2020, revise that rate for corporations with net income subject to taxes under that law of $10,000,000 or more to instead impose a tax rate from 10.84% to 14.84%, or for financial institutions, from 12.84% to 16.84%, based on the compensation ratio, as defined, of the corporation. The bill would increase those new applicable tax rates by a factor of 1.5 for those taxpayers that have a specified decrease in full-time employees employed in the United States as compared to an increase in contracted employees or foreign full-time employees, as described. The bill would deposit the revenues derived from this tax into the General Fund, as specified, and would require those revenues to be used to offset the fiscal impact of any child tax credit and, upon appropriation by the Legislature, to support the expansions or improvements to early childhood programs and other educational programs. The bill would make these tax rates inoperative for taxable years beginning on or after January 1 of any calendar year in which the federal corporation tax rate is 35% or more. 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 bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. Returned to Secretary of Senate pursuant to Joint Rule 56.

  2. Read second time and amended. Re-referred to Com. on RLS.

  3. From committee: Do pass as amended and re-refer to Com. on RLS. (Ayes 4. Noes 2. Page 3099.) (January 15).

  4. Set for hearing January 15.

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

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

  7. Referred to Com. on RLS.

  8. From printer. May be acted upon on or after January 3.

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

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on

Sponsors (1)

  • Skinner

Co-sponsors (1)

Not signed on (120)

120 members have not signed on to this bill.

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"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.

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Votes

Subjects

taxation education
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Frequently asked questions

What does SB 37 do?
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 or after January 1, 2020, revise that rate for corporations with net income subject to taxes under that law of $10,000,000 or more to instead impose a tax rate from 10.84% to 14.84%, or for financial institutions, from 12.84% to 16.84%, based on the compensation ratio, as defined, of the corporation. The bill would increase those new applicable tax rates by a factor of 1.5 for those taxpayers that have a specified decrease in full-time employees employed in the United States as compared to an increase in contracted employees or foreign full-time employees, as described. The bill would deposit the revenues derived from this tax into the General Fund, as specified, and would require those revenues to be used to offset the fiscal impact of any child tax credit and, upon appropriation by the Legislature, to support the expansions or improvements to early childhood programs and other educational programs. The bill would make these tax rates inoperative for taxable years beginning on or after January 1 of any calendar year in which the federal corporation tax rate is 35% or more. 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 bill would take effect immediately as a tax levy.
Who sponsors SB 37?
SB 37 is sponsored by Skinner and Wicks, Buffy (Democratic).
What is the current status of SB 37?
This bill died with 2019-2020 Regular Session. It reached “In Committee” 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 37?
Track SB 37 free on One Click Politics — get push/email alerts when it moves.

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