California Tax Budget Trailer Bill Review – California Globe

On August 26, Meeting Invoice 158 by the Meeting Committee on Funds was gutted-and-amended to cope with tax aid. The invoice would amend Sections 17053.71, 17131.8, 23628, and 24308.6 of, add Part 17053.75 to, and repeal and add Part 19551.3 of, the Income and Taxation Code, amend Part 8161 of the Welfare and Establishments Code, and repeal Part 26 of Chapter 264 of the Statutes of 2020.

Part 1 of the invoice would amend Income and Taxation Code Part 17053.71 to make a technical correction.

Part 2 of the invoice would add Income and Taxation Code Part 17053.75 to offer, for taxable years starting January 1, 2024, a tax credit score in higher quantity of (1) for dues paid that taxable yr by the certified taxpayers by the employees’ tax credit score adjustment issue, or (2) for the quantity equal to dues paid in that taxable yr by the certified taxpayer as much as $100.

It’s the intent of the Legislature that the employees’ tax credit score adjustment issue and the utmost greenback quantity allowed is to be set to restrict the annual income loss to not more than $400 million. The invoice would outline the next phrases: “bona fide labor group,” “dues,” and “certified taxpayer.”

This credit score is in lieu of some other credit score or deduction that the certified taxpayer could also be allowed for these quantities. If the credit score exceeds the tax legal responsibility, then the surplus is credited in opposition to different quantities due and the steadiness refunded to the certified taxpayer if monies are appropriated by the Legislature for that goal.

To adjust to Part 41 necessities, there are legislative findings and declarations relating to the aim of the credit score allowed, which is to assist people with the price of being a member of a union. There are efficiency indicators for the Legislature to make use of, and a requirement that the FTB present an annual report back to the Legislature containing specified info.

Part 3 of the invoice would amend Income and Taxation Code Part 17131.8 to make clear that amendments made earlier this yr are operative for taxable years starting on or after January 1, 2019.

Part 4 of the invoice would repeal Income and Taxation Code Part 19551.3 require the trade of knowledge between the Division of Well being Care Providers and the Franchise Tax Board.

Part 5 of the invoice would add Income and Taxation Part 19551.3 to require the Division of Social Providers and the Division of Well being Care Providers to trade information with the Franchise Tax Board for people who could qualify for the California Earned Revenue Tax Credit score. The info is to stay confidential and solely be used for specified functions.

The DSS and DHCS should yearly present to the FTB the outcomes and findings of outreach carried out to measure whether or not the outreach achieves its meant goal of accelerating the variety of claims for the federal earned earnings tax credit score, the California earned earnings tax credit score, and different state and federal antipoverty tax credit. Required info is specified.

Part 6 of the invoice would amend Income and Taxation Code Part 23628 to make a technical correction.

Part 7 of the invoice would amend Income and Taxation Code Part 24308.6 to make clear that amendments made earlier this yr are operative for taxable years starting on or after January 1, 2019.

Part 8 of the invoice would amend Welfare and Establishments Code Part 8161 to substitute the Franchise Tax Board for the Controller for making a one-time fee to every certified recipient.

Part 9 of the invoice would repeal Part 26 of Chapter 64 from 2020. Part 10 of the invoice would applicable $20,000 to the FTB for administering the info sharing provisions of this act.

Part 11 of the invoice incorporates legislative findings and declarations that the applying of the exclusion from gross earnings for mortgage quantities forgiven pursuant to the federal PPP Extension Act of 2021 to taxable years starting on or after January 1, 2019, as offered by this act, serves the general public goal of securing the monetary situation of companies that had been harmed by the COVID-19 pandemic, and doesn’t represent a present of public funds.

Part 12 of the invoice gives that no reimbursement to an area company or college district is required by this act. Part 13 of the invoice gives that this invoice is said to the Funds Invoice and can take impact instantly.