AB 2205: Personal income taxes: deductions: transportation improvement fee.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-03-15
The Personal Income Tax Law allows various deductions in computing the income that is subject to the taxes imposed by that law including, in conformity with federal tax law, a deduction for personal property taxes such as the vehicle license fee.
Existing law imposes a transportation improvement fee under the Vehicle License Fee Law with a fee between $25 and $175 based on vehicle value and with an inflation adjustment, as provided.
This bill would state that to the extent the transportation improvement fee is a personal property tax for federal income tax purposes, it is allowed as a deduction in computing the income subject to taxes pursuant to the Personal Income Tax Law.
The Personal Income Tax Law, in modified conformity with federal income tax law, authorizes a taxpayer to depreciate property, determined by an applicable depreciation method, an applicable recovery period, and an applicable convention.This bill would make nonsubstantive changes to this provision.The Personal Income Tax Law, in modified conformity with federal income tax law, authorizes a taxpayer to depreciate property, determined by an applicable depreciation method, an applicable recovery period, and an applicable convention.
This bill would make nonsubstantive changes to this provision.
To the extent that the transportation improvement fee imposed by Chapter 6 (commencing with Section 11050) of Part 5 is a personal property tax, as defined in Section 164(b)(1) of the Internal Revenue Code, relating to personal property taxes, it is deductible pursuant to subdivision (a) of Section 17201 in the same manner as the vehicle licensee fee imposed by Chapter 2 (commencing with Section 10751) of Part 5.
SECTION 1.Section 17250 of the Revenue and Taxation Code is amended to read:17250.(a)Section 168 of the Internal Revenue Code, relating to accelerated cost recovery system, is modified as follows:(1)Any reference to tax imposed by this chapter in Section 168 of the Internal Revenue Code, relating to accelerated cost recovery system, means net tax, as defined in Section 17039.(2)(A)Section 168(e)(3) of the Internal Revenue Code, relating to classification of certain property, is modified to provide that any grapevine, replaced in a vineyard in California in any taxable year beginning on or after January 1, 1992, as a direct result of a phylloxera infestation in that vineyard, or replaced in a vineyard in California in any taxable year beginning on or after January 1, 1997, as a direct result of Pierces disease in that vineyard, shall be five-year property, rather than 10-year property.(B)Section 168(g)(3) of the Internal Revenue Code, relating to special rules for determining class life, is modified to provide that any grapevine, replaced in a vineyard in California in any taxable year beginning on or after January 1, 1992, as a direct result of a phylloxera infestation in that vineyard, or replaced in a vineyard in California in any taxable year beginning on or after January 1, 1997, as a direct result of Pierces disease in that vineyard, shall have a class life of 10 years.(C)Every taxpayer claiming a depreciation deduction with respect to grapevines as described in this paragraph shall obtain a written certification from an independent state-certified integrated pest management adviser, or a state agricultural commissioner or adviser, that specifies that the replanting was necessary to restore a vineyard infested with phylloxera or Pierces disease. The taxpayer shall retain the certification for future audit purposes.(3)Section 168(j) of the Internal Revenue Code, relating to property on Indian reservations, shall not apply.(4)Section 168(k) of the Internal Revenue Code, relating to special allowance for certain property acquired after December 31, 2007, and before January 1, 2009, shall not apply.(5)Sections 168(b)(3)(G) and 168(b)(3)(H) of the Internal Revenue Code shall not apply.(6)Sections 168(e)(3)(E)(iv), 168(e)(3)(E)(v), and 168(e)(3)(E)(ix) of the Internal Revenue Code shall not apply.(7)Sections 168(e)(6), 168(e)(7), and 168(e)(8) of the Internal Revenue Code, relating to qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property, respectively, shall not apply.(8)Section 168(l) of the Internal Revenue Code, relating to special allowance for cellulosic biofuel plant property, shall not apply.(9)Section 168(m) of the Internal Revenue Code, relating to special allowance for certain reuse and recycling property, shall not apply.(10)Section 168(n) of the Internal Revenue Code, relating to special allowance for qualified disaster assistance property, shall not apply.(11)Section 168(i)(15)(D) of the Internal Revenue Code, relating to termination, is modified by substituting the phrase December 31, 2007 for the phrase December 31, 2009.(12)Section 168(e)(3)(B)(vii) of the Internal Revenue Code shall not apply.(b)Section 169 of the Internal Revenue Code, relating to amortization of pollution control facilities, is modified as follows:(1)The deduction allowed by Section 169 of the Internal Revenue Code, relating to amortization of pollution control facilities, shall be allowed only with respect to facilities located in this state.(2)The state certifying authority, as defined in Section 169(d)(2) of the Internal Revenue Code, means the State Air Resources Board, in the case of air pollution, and the State Water Resources Control Board, in the case of water pollution.(a)Section 168 of the Internal Revenue Code, Code, relating to accelerated cost recovery system, is modified as follows:
(1)Any reference to tax imposed by this chapter in Section 168 of the Internal Revenue Code, relating to accelerated cost recovery system, means net tax, as defined in Section 17039.
(2)(A)Section 168(e)(3) of the Internal Revenue Code, relating to classification of certain property, is modified to provide that any grapevine, replaced in a vineyard in California in any taxable year beginning on or after January 1, 1992, as a direct result of a phylloxera infestation in that vineyard, or replaced in a vineyard in California in any taxable year beginning on or after January 1, 1997, as a direct result of Pierces disease in that vineyard, shall be five-year property, rather than 10-year property.
(B)Section 168(g)(3) of the Internal Revenue Code, Code, relating to special rules for determining class life, is modified to provide that any grapevine, replaced in a vineyard in California in any taxable year beginning on or after January 1, 1992, as a direct result of a phylloxera infestation in that vineyard, or replaced in a vineyard in California in any taxable year beginning on or after January 1, 1997, as a direct result of Pierces disease in that vineyard, shall have a class life of 10 years.
(C)Every taxpayer claiming a depreciation deduction with respect to grapevines as described in this paragraph shall obtain a written certification from an independent state-certified integrated pest management adviser, or a state agricultural commissioner or adviser, that specifies that the replanting was necessary to restore a vineyard infested with phylloxera or Pierces disease. The taxpayer shall retain the certification for future audit purposes.
(3)Section 168(j) of the Internal Revenue Code, relating to property on Indian reservations, shall not apply.
(4)Section 168(k) of the Internal Revenue Code, relating to special allowance for certain property acquired after December 31, 2007, and before January 1, 2009, shall not apply.
(5)Sections 168(b)(3)(G) and 168(b)(3)(H) of the Internal Revenue Code shall not apply.
(6)Sections 168(e)(3)(E)(iv), 168(e)(3)(E)(v), and 168(e)(3)(E)(ix) of the Internal Revenue Code shall not apply.
(7)Sections 168(e)(6), 168(e)(7), and 168(e)(8) of the Internal Revenue Code, relating to qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property, respectively, shall not apply.
(8)Section 168(l) of the Internal Revenue Code, relating to special allowance for cellulosic biofuel plant property, shall not apply.
(9)Section 168(m) of the Internal Revenue Code, relating to special allowance for certain reuse and recycling property, shall not apply.
(10)Section 168(n) of the Internal Revenue Code, relating to special allowance for qualified disaster assistance property, shall not apply.
(11)Section 168(i)(15)(D) of the Internal Revenue Code, relating to termination, is modified by substituting the phrase December 31, 2007 for the phrase December 31, 2009.
(12)Section 168(e)(3)(B)(vii) of the Internal Revenue Code shall not apply.
(b)Section 169 of the Internal Revenue Code, relating to amortization of pollution control facilities, is modified as follows:
(1)The deduction allowed by Section 169 of the Internal Revenue Code, Code, relating to amortization of pollution control facilities, shall be allowed only with respect to facilities located in this state.
(2)The state certifying authority, as defined in Section 169(d)(2) of the Internal Revenue Code, means the State Air Resources Board, in the case of air pollution, and the State Water Resources Control Board, in the case of water pollution.
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Date
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Status
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| Mar 19, 2018 | Re-referred to Com. on TRANS. |
| Mar 15, 2018 | Referred to Coms. on TRANS. and REV. & TAX. |
| Feb 13, 2018 | From printer. May be heard in committee March 15. |
| Feb 12, 2018 | Read first time. To print. |
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