AB 1345: Franchise Tax Board: administration: report.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-04-03
Existing law requires the Franchise Tax Board to annually perform a systematic identification of areas of recurrent taxpayer noncompliance and to report its findings to the Legislature on December 1 of each year.
This bill would instead require the Franchise Tax Board to report its findings on December 31 of each year.
The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state and sets fourth definitions of terms used in that law.This bill would make nonsubstantive changes to that provision.The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state and sets fourth definitions of terms used in that law.
This bill would make nonsubstantive changes to that provision.
(a)The board shall perform annually a systematic identification of areas of recurrent taxpayer noncompliance and shall report its findings to the Legislature on December 1 31 of each year.
(b)As part of the identification process described in subdivision (a), the board shall do both of the following:
(1)Compile and analyze sample data from its audit process, including, but not limited to, all of the following:
(A)The statute or regulation violated by the taxpayer.
(B)The amount of tax involved.
(C)The industry or business engaged in by the taxpayer.
(D)The number of years covered in the audit period.
(E)Whether professional tax preparation assistance was utilized by the taxpayer.
(F)Whether income tax or bank and corporation tax returns were filed by the taxpayer.
(2)Conduct an annual hearing before the board itself where industry representatives and individual taxpayers are allowed to present their proposals on changes to the Personal Income Tax Law or the Corporation Tax Law which may further facilitate achievement of the legislative findings.
(c)The board shall include in its report recommendations for improving taxpayer compliance and uniform administration, including, but not limited to, all of the following:
(1)Changes in statute or board regulations.
(2)Improvement of training of board personnel.
(3)Improvement of taxpayer communication and education.
(4)Increased enforcement capabilities.
(d)The board shall include in its report a summary of cases where relief was granted pursuant to subdivision (c) of Section 21004, including the nature of the error or delay, and the steps taken by the board to remedy systemic issues that caused the error or delay.
SECTION 1.Section 6002 of the Revenue and Taxation Code is amended to read:6002.Except where the context otherwise requires, the definitions contained in this chapter govern the construction of this part.Except where the context otherwise requires, the definitions given contained in this chapter govern the construction of this part.
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Date
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Status
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| Jun 1, 2017 | Referred to Com. on RLS. |
| May 18, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 18, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1621.) |
| May 15, 2017 | Read second time. Ordered to Consent Calendar. |
| May 11, 2017 | From committee: Do pass. To Consent Calendar. (Ayes 9. Noes 0.) (May 8). |
| Apr 4, 2017 | Re-referred to Com. on REV. & TAX. |
| Apr 3, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended. |
| Mar 30, 2017 | Referred to Com. on REV. & TAX. |
| Feb 19, 2017 | From printer. May be heard in committee March 21. |
| Feb 17, 2017 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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| May 18, 2017 | AB 1345 RIDLEY-THOMAS Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
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| May 8, 2017 | Do pass. To Consent Calendar. | Assembly Standing Committee on Revenue and Taxation |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
Date of Hearing: May 8, 2017
ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
Sebastian Ridley-Thomas, Chair
ABPCA Bill Id:AB 1345 (
Author:Ridley-Thomas) – As Amended Ver:April 3, 2017
Majority vote.
SUBJECT: Franchise Tax Board: administration: report
SUMMARY: Extends the due date by which the Franchise Tax Board (FTB) must submit the Taxpayer Bill of Rights Annual Report to the Legislature. Specifically, this bill requires the FTB to report its annual findings identifying areas of recurrent taxpayer noncompliance to the Legislature on December 31 (instead of December 1) of each year.
EXISTING LAW:
- Requires the FTB to perform annually a systematic identification of areas of recurrent taxpayer noncompliance and report its findings to the Legislature on December 1 of each year.
- Requires the FTB to do both of the following in identifying issues for the report:
- Compile and analyze sample data from its audit process, including, but not limited to, all of the following:
- The statute or regulation violated by the taxpayer;
- The amount of tax involved;
- The industry or business engaged in by the taxpayer;
- The number of years covered in the audit period;
- Whether professional tax preparation assistance was utilized by the taxpayer; and,
- Whether income tax or bank and corporation tax returns were filed by the taxpayer; and,
- Conduct an annual hearing where industry representatives and individual taxpayers may present their proposals on changes to the Personal Income Tax Law or the Corporation Tax Law which may further facilitate achievement of the findings.
- Requires the FTB to include recommendations for improving taxpayer compliance and uniform administration in the report, including, but not limited to, all of the following:
- Changes in statute or regulations;
- Improvement of training of FTB personnel;
- Improvement of taxpayer communication and education; and,
- Increased enforcement capabilities.
- Requires the FTB to include a summary of cases in the report where relief was granted to taxpayers because of errors or delays caused by the FTB, including the nature of the error or delay, and the steps taken by the FTB to remedy systemic issues that caused the error or delay.
FISCAL EFFECT: The FTB states that this bill would not impact state tax revenues.
COMMENTS: The Katz-Harris Taxpayers' Bill of Rights Act requires the FTB to annually perform a systematic identification of areas of recurrent taxpayer noncompliance and report its findings to the Legislature each year. This report, known as the Taxpayer Bill of Rights Annual Report, is required to contain recommendations for improving taxpayer compliance and a summary of cases where penalty, interest, and fee relief was granted as part of the Taxpayers' Rights Advocate relief program. This bill would move the due date of the report from December 1 to December 31 of each year, allowing the FTB more time to prepare the report.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by: Irene Ho / REV. & TAX. / (916) 319-2098
Bill Author
Bill Co-Author(s):