CA SB 131
Title: Taxation.
Author: Senate Budget and Fiscal Review Committee
Summary
SB 131, as amended, Committee on Budget and Fiscal Review. Taxation. (1) Existing law requires the Controller to state an account with persons that receive funds or property belonging to the state and fail to properly render account thereof to the state, and persons that fail to pay to the State Treasury any money belonging to the state. Existing law requires the Controller to offset delinquent accounts against personal income tax refunds that have been certified by the Franchise Tax Board, subject to a specified priority. Existing law, for taxable years beginning on or after January 1, 2024, prohibit the Controller from offsetting delinquent accounts against the personal income tax refunds of an individual who received the earned income tax credit or the young child tax credit for the taxable year, except as specified.This bill would additionally prohibit the Controller from offsetting delinquent accounts against the personal income tax refunds of an individual who received the foster youth tax credit.(2) Existing law requires the Department of Finance to report annually, no later than September 15, to the Legislature with regard to tax expenditures, as defined. Existing law requires the report to include specified information, including, for personal income tax expenditures, the number of taxpayers affected and returns filed, as applicable, for the most recent tax year for which full year data is available.Commencing August 1, 2023, this bill would instead require the report to be provided to the Legislature no later than November 1 of each year and would change the contents of the report by instead requiring, for personal income tax expenditures and for the most recent tax year for which full year data is available, the number of taxpayers affected and returns filed, categorized by taxpayers’ income levels, as applicable, and the cost to the state resulting from these personal income tax expenditures, categorized by the taxpayers’ income levels, for which data is readily available.(3) Existing law, the Personal Income Tax Law, in partial conformity with federal income tax law, imposes a tax on the taxable income of estates or of any kind of property held in trust. That law provides the taxable income of an estate or trust is computed in the same manner as in the case of an individual, except as provided, and the tax is paid by the fiduciary of the trust or estate. Existing law provides that, where the grantor or another person is treated as the owner of any portion of the trust, known as a “grantor trust,” then items of income, deductions, and credits against tax of the trust are included in computing the taxable income and credits of the grantor or other owner.This bill, for taxable years beginning on or after January 1, 2023, would include the income of an incomplete gift nongrantor trust, as defined, in the gross income of the grantor to the extent the income of the trust would be taken into account in computing the grantor’s taxable income if the trust were treated as a grantor trust. The bill would provide that these provisions do not apply where certain conditions are met, including an irrevocable election made by the fiduciary to be taxed as a resident nongrantor trust, as provided.(4) The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.This bill would, for taxable years beginning on or after January 1, 2020, and before January 1, 2028, provide exclusions from gross income for any qualified taxpayer, as defined, for amounts received in settlements associated with either the 2019 Kincade Fire in the County of Sonoma, or the 2020 Zogg Fire in the Counties of Tehama and Shasta, as provided.(5) The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including
Status
Enrolled and presented to the Governor at 4:45 p.m.
Bill Documents
CA SB 131 - 06/26/23 - Amended Assembly
06/26/23 - CA SB 131 (06/26/23 - Amended Assembly)
CA SB 131 - 01/18/23 - Introduced
01/18/23 - CA SB 131 (01/18/23 - Introduced)