summary
Introduced
In Committee
Crossed Over
Passed
Dead
Introduced Session
2011-2012 Regular Session
Bill Summary
An act to add Sections 70024 and 70025 to the Education Code, and to amend Sections 23101 and 25128 of, to amend and repeal Section 25128.5 of, to amend, repeal, and add Section 25136 of, and to add Sections 25128.7 and 25136.1 to, the Revenue and Taxation Code, relating to education, and declaring the urgency thereof, to take effect immediately.
AI Summary
This bill makes several changes to California's tax laws, primarily concerning how corporations' business income is apportioned for tax purposes, and establishes a Middle Class Scholarship Fund. Key provisions include shifting from a three-factor apportionment formula (property, payroll, and sales) to a single sales factor for most businesses starting in 2012, meaning a company's tax liability in California will be based solely on its sales within the state. It also introduces an election for businesses to use a three-factor formula (property, payroll, and twice the sales factor) if it results in a lower tax liability, and allows for a special apportionment rule for certain telecommunications companies. Additionally, the bill mandates reporting by the Franchise Tax Board to the Department of Finance regarding estimated revenue increases resulting from these tax changes, with a portion of these revenues, after deducting $90 million annually for forest fire prevention costs, to be deposited into the newly established Middle Class Scholarship Fund to increase the affordability of higher education. The bill is declared an urgency statute, meaning it takes effect immediately, to provide financial aid to students for the upcoming academic year.
Committee Categories
Budget and Finance
Sponsors (59)
Julia Brownley (D)*,
Mark DeSaulnier (D)*,
Jared Huffman (D)*,
Alan Lowenthal (D)*,
Norma Torres (D)*,
Luis Alejo (D),
Michael Allen (D),
Elaine Alquist (D),
Tom Ammiano (D),
Toni Atkins (D),
Jim Beall (D),
Marty Block (D),
Robert Blumenfield (D),
Susan Bonilla (D),
Steve Bradford (D),
Joan Buchanan (D),
Betsy Butler (D),
Charles Calderon (D),
Nora Campos (D),
Wilmer Carter (D),
Wesley Chesbro (D),
Ellen Corbett (D),
Mike Davis (D),
Kevin de León (D),
Roger Dickinson (D),
Mike Eng (D),
Mike Feuer (D),
Paul Fong (D),
Felipe Fuentes (D),
Warren Furutani (D),
Cathleen Galgiani (D),
Mike Gatto (D),
Richard Gordon (D),
Isadore Hall (D),
Loni Hancock (D),
Mary Hayashi (D),
Roger Hernandez (D),
Jerry Hill (D),
Alyson Huber (D),
Ben Hueso (D),
Ricardo Lara (D),
Bonnie Lowenthal (D),
Fiona Ma (D),
Holly Mitchell (D),
William Monning (D),
Richard Pan (D),
Fran Pavley (D),
Henry Perea (D),
John Perez (D),
V. Manuel Pérez (D),
Anthony Portantino (D),
Curren Price (D),
Nancy Skinner (D),
Jose Solorio (D),
Sandré Swanson (D),
Bob Wieckowski (D),
Das Williams (D),
Mariko Yamada (D),
Leland Yee (D),
Last Action
Withdrawn from committee. Ordered to third reading. (Ayes 24. Noes 11. Page 5122.) Read third time. Urgency clause refused adoption. (Ayes 22. Noes 15. Page 5122.) (on 09/01/2012)
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