SB 863: Taxation.

(1)Existing property tax law specifies the date on which a remittance to a taxing agency is deemed to be received depending on the method of delivery, as provided, including for items mailed with an official postmark.

This bill would require, in the absence of any specified dates, the remittance to be deemed received on the date the remittance is received by the county treasurer-tax collector, except as provided.

(2)Existing property tax law authorizes a tax collector to sell property that has become tax defaulted, as provided, and has not been redeemed. Existing law requires the tax collector to sell the property at a public auction to the highest bidder and prohibits the tax collector from accepting an offer less than the minimum price approved, as provided, except that the tax collector may reduce the minimum price if there has been a partial redemption or partial cancellation, as specified.

This bill would also authorize a tax collector to reduce the minimum price where the minimum necessary to redeem is decreased due to the removal or reduction of defaulted taxes resulting from the removal or reduction of a special assessment or a direct charge against the property.

(3)The Transactions and Use Tax Law authorizes various local governmental entities, subject to certain limitations and approval requirements, to levy transactions and use taxes as special taxes in accordance with the procedures and requirements set forth in that law. The Transactions and Use Tax Law prohibits an ordinance adopted under its provisions from becoming operative on other than the first day of a calendar quarter, or prior to the first day of the first calendar quarter, commencing more than 110 days after the adoption of the ordinance.

This bill would instead prohibit an ordinance adopted under the Transactions and Use Tax Law from becoming operative on other than the first day of a calendar quarter, or prior to the first day of the first calendar quarter, commencing more than 110 days after the election on the ordinance proposing the tax.

(4)The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including various motion picture credits, commonly referred to as motion picture credit 1.0, 2.0, 3.0, and 4.0, and the certified studio credit, to be allocated by the California Film Commission in differing amounts equal to specified percentages of the qualified expenditures of a qualified motion picture in this state. Existing law allows a qualified taxpayer, if a motion picture credit exceeds the taxpayers tax liability, to elect to assign a portion of the credit to one or more affiliated corporations for each taxable year in which the credit is allowed, as specified. AB 1138 (Chapter 27 of the Statutes of 2025), effective July 3, 2025, among other things, for purposes of the motion picture credit 3.0 and 4.0 and for purposes of the certified studio credit, expands the definition of a qualified taxpayer to include a single member limited liability company that is disregarded for tax purposes. AB 1138 prohibits a motion picture credit 1.0 and 2.0 or certified studio credit generated by a disregarded single member limited liability company from being ineligible for certain reasons for assignment to a corporation that, directly or indirectly, owns the disregarded single member limited liability company, or to an affiliated corporation of that corporation.

This bill would additionally prohibit a motion picture credit 3.0 generated by a disregarded single member limited liability company from being ineligible for those same reasons for assignment to a corporation that, directly or indirectly, owns the disregarded single member limited liability company, or to an affiliated corporation of that corporation.

(5)The California Constitution provides for the establishment of the State Board of Equalization, which, before July 1, 2017, had primary responsibility for most of the states duties, powers, and responsibilities regarding the administration of taxes and fees. Existing law, on July 1, 2017, transferred to the California Department of Tax and Fee Administration various duties, powers, and responsibilities of the State Board of Equalization, including enforcing specified licensing and tax provisions of the Cigarette and Tobacco Products Tax Law and providing information to the Attorney General relative to a sellers failure or attempt to comply with specified provisions of federal law.

This bill would change references in these provisions of the Cigarette and Tobacco Products Tax Law from the State Board of Equalization or board to the California Department of Tax and Fee Administration or department, as applicable, to reflect the transfer of the boards duties, powers, and responsibilities to the department.