California 2021-2022 Regular Session Status: In Committee 2 D cosponsors

SB 104 — Elective tax: partnership: "S" corporation: credit.

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 2021-2022 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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 Personal Income Tax Law, in modified conformity with federal law, generally imposes a tax on the income of residents in the state, as specified, and allows various credits against the taxes imposed by that law. The Personal Income Tax Law also imposes an annual tax on every limited partnership, limited liability partnership, and limited liability company doing business in this state, as specified, in an amount equal to the minimum franchise tax. The Corporation Tax Law imposes an annual tax on "S" corporations at a rate of 1.5% of its net income, or if greater, the minimum franchise tax, as specified. Existing law requires any bill introduced on or after January 1, 2020, authorizing certain tax expenditures, as defined, to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would authorize a partnership or "S" corporation that meets certain other requirements to elect to pay an elective tax at a rate based on its net income, as specified, for the taxable year. The bill would authorize the Franchise Tax Board to adopt regulations to implement the elective tax and exempt those regulations from the rulemaking provisions of the Administrative Procedure Act. The bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would allow a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of an entity that elects to pay the elective tax authorized by the bill, in an amount equal to a specified percentage of the partner's, shareholder's, or member's pro rata share or distributive share, as applicable, of income subject to the elective tax paid by the entity. The bill would also provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.

Bill Text

Action History

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

  2. May 20 hearing: Held in committee and under submission.

  3. Set for hearing May 20.

  4. April 19 hearing: Placed on APPR suspense file.

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

  6. Set for hearing April 19.

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

  8. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 632.) (March 25).

  9. Set for hearing March 25.

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

  11. Referred to Com. on GOV. & F.

  12. Read first time.

  13. From printer. May be acted upon on or after February 5.

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

Sponsors

Sponsorship breakdown

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1 sponsors · 4 co-sponsors · 117 not signed on

Sponsors (1)

Co-sponsors (4)

Not signed on (117)

117 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.

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

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 1000
Unaffiliated 5000
Republican 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Kamlager — Yea
Bates — Yea
Bradford — Yea
Wieckowski — Yea
Portantino — Yea
Laird, John Democratic Yea
Jones, Brian W. Republican Yea

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Subjects

taxation
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Frequently asked questions

What does SB 104 do?
The Personal Income Tax Law, in modified conformity with federal law, generally imposes a tax on the income of residents in the state, as specified, and allows various credits against the taxes imposed by that law. The Personal Income Tax Law also imposes an annual tax on every limited partnership, limited liability partnership, and limited liability company doing business in this state, as specified, in an amount equal to the minimum franchise tax. The Corporation Tax Law imposes an annual tax on "S" corporations at a rate of 1.5% of its net income, or if greater, the minimum franchise tax, as specified. Existing law requires any bill introduced on or after January 1, 2020, authorizing certain tax expenditures, as defined, to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would authorize a partnership or "S" corporation that meets certain other requirements to elect to pay an elective tax at a rate based on its net income, as specified, for the taxable year. The bill would authorize the Franchise Tax Board to adopt regulations to implement the elective tax and exempt those regulations from the rulemaking provisions of the Administrative Procedure Act. The bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would allow a credit against the personal income tax to a taxpayer, other than a partnership, that is a partner, shareholder, or member of an entity that elects to pay the elective tax authorized by the bill, in an amount equal to a specified percentage of the partner's, shareholder's, or member's pro rata share or distributive share, as applicable, of income subject to the elective tax paid by the entity. The bill would also provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.
Who sponsors SB 104?
SB 104 is sponsored by McGuire, Mike (Democratic), Caballero, Anna M. (Democratic), Burke, Chiu, and Mayes.
What is the current status of SB 104?
This bill died with 2021-2022 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 104?
Track SB 104 free on One Click Politics — get push/email alerts when it moves.

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