Revenue and Taxation Code — Part 12 | RTC — United States — California law | Esheria

Revenue and Taxation Code

Part 12 of 36 · provisions 2,201–2,400

This section says the act is known as the Revenue and Taxation Code.

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Starting in the 1995–96 fiscal year, county-assessed property rights or interests must be placed in a separate countywide tax rate area, and the tax rate is calculated using the rates from Section 100. This section suspends a specified California constitutional subparagraph for the 2009–10 fiscal year. This section requires the county auditor to reduce certain 2009–10 property tax apportionments, transfer the reduction amounts to a county fund, and report the calculations. It also lets the Director of Finance grant limited hardship relief, requires later state reimbursement, and allows mandamus if reimbursement is not made on time. This section sets how certain railroad property tax value and revenues must be allocated among tax rate areas, counties, school entities, and related jurisdictions. Supplemental property tax revenues for 1985–86 and later years must be apportioned using the current year’s property tax apportionment factors.

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Provisions of Revenue and Taxation Code

Showing 200 of 7,200

  1. 2216.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 1. Definitions [2201 - 2216] ( Article 1 added by Stats. 1973, Ch. 358. )

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    Certain county free libraries, county fire protection areas, and county road districts are treated as “special districts” for this chapter.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 1. Definitions [2201 - 2216] ( Article 1 added by Stats. 1973, Ch. 358. ) ## 2216. County free libraries established pursuant to Chapter 2 (commencing with Section 27151) of Division 20 of the Education Code; areas receiving county fire protection services pursuant to Section 25643 of the Government Code; and county road districts established pursuant to Chapter 7 (commencing with Section 1550) of Division 2 of the Streets and Highways Code, shall be considered “special districts” for all purposes of this chapter. (Added by Stats. 1973, Ch. 358.)
  2. 222.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

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    Certain personal property used for zoo operations or horticultural display on publicly owned land is exempt from taxation if owned by a nonprofit zoological society meeting Section 214 requirements.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 222. Personal property used exclusively in the operation of a zoo or for purposes of horticultural display on publicly owned land which is owned by a nonprofit zoological society meeting all the requirements of Section 214 shall be exempt from taxation. (Repealed and added by Stats. 1973, Ch. 4.)
  3. 222.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

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    For Section 214, the phrase “property used exclusively for religious, hospital, scientific or charitable purposes” includes certain possessory interests in publicly owned land used exclusively for a zoo or for horticultural display by a qualifying zoological society.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 222.5. As used in Section 214, “property used exclusively for religious, hospital, scientific or charitable purposes” shall include possessory interests in publicly owned land, used exclusively for the operation of a zoo or for purposes of horticultural display by a zoological society meeting all the requirements of Section 214. (Added by Stats. 1973, Ch. 72.)
  4. 2227.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    The Department of Finance must annually send each city and county a population-change estimate, generally by May 1 (May 7 for 2021).

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2227. (a) (1) Annually, the Department of Finance shall transmit to each city and each county an estimate of the percentage change in the population of the city or the county. The estimates shall indicate the percentage change in the resident population, excluding the population in state mental and correctional facilities and in federal correctional and federal military installations, of each city and each county between January 1 of the prior year and January 1 of the current year. Except as provided in paragraph (2), those statements shall be transmitted by May 1. (2) For the 2021 calendar year, the statement required by paragraph (1) shall be transmitted by May 7. (b) The Department of Finance may request data from any local agency to be used to prepare the population estimate required by this section. If any local agency fails to supply the requested data, the department is not required to provide an estimate for that agency, but may do so using the method deemed most appropriate by the department. (Amended by Stats. 2021, Ch. 8, Sec. 3. (SB 88) Effective February 23, 2021.)
  5. 2228.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    Special districts’ population-change percentage is determined under specified location rules, and the Department of Finance can request local data, must set weighting rules, must prepare a special estimate if requested, and the district must reimburse the actual cost.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2228. (a) The annual percentage change in population for special districts shall be the percentage changes established pursuant to Section 2227 and this section: (1) If a special district is located entirely within a city, the annual percentage change in population for the district shall be that established for the city pursuant to Section 2227. (2) If a special district is located entirely within the unincorporated area of a county, the annual percentage change in population for the district shall be that established for the county or the unincorporated area of the county. (3) If a special district is located within a single county or within more than one city or any combination of cities and unincorporated areas within a single county, the annual percentage change in population for the district shall be that established for the county or the weighted average of the percentage change of each city and the unincorporated area. (4) If a special district is located within more than one county, the annual percentage change in population for the district shall be the weighted average of the percentage change of each county or city or unincorporated area within the district or any combination, provided that the areas selected are mutually exclusive. (b) The Department of Finance may request data from any local jurisdiction to be used to prepare the percentage change in population required by this section. The Department of Finance shall determine the weights to be used in establishing weighted averages. (c) If the governing body of a special district determines that the percentage change in population in subdivision (a) will not be accurate for the district, it may, before June 1, request the Department of Finance to prepare a special population change estimate for the district. The department shall comply with the request before September 1, and the estimate prepared by the department shall be used to determine population change for purposes of this chapter. The district shall reimburse the department for the actual cost of preparing the estimate. (Amended by Stats. 1984, Ch. 193, Sec. 112.)
  6. 2228.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    The Department of Finance must send each community college district an annual estimate of adult population change by May 15, and it may request local data to prepare the estimate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2228.1. (a) Annually, the Department of Finance shall transmit to each community college district an estimate of its annual percentage change in adult population. Such estimates shall indicate the percentage change in the resident population within the geographic boundaries of the district consistent with the geographic boundaries used to determine the assessed valuation for the current and budget fiscal years excluding the population in state and federal correctional institutions and all full-time enrollment associated with four-year educational institutions with an enrollment of 3,000 or more and persons residing in military barracks of each district between January 1 of the prior year and January 1 of the current year if possible, or between the fall school census week of the prior fiscal year and the fall school census week of the current year. Such statements shall be transmitted by May 15. The Department of Finance may request data from any local agency to be used to prepare the population estimate required by this section. If any local agency fails to supply the requested data, the department is not required to provide an estimate for the school district affected, but may do so using the method deemed most appropriate by the department after first notifying the community college district. (b) If the total population of a district as currently delineated was within 15 percent of the total population of one or more cities or counties or city and county each of whose population is 50 percent or more within the district as of the most recent federal special or decennial census or local census carried out under the Department of Finance supervision covering the area in question, it may apply to the Department of Finance for a special estimate of the percentage change in total population of the corresponding area for the past year. The department will prepare the estimate in accordance with the data and methods used pursuant to Section 2227 of the Revenue and Taxation Code and the district may use the estimate in lieu of the estimate prepared under subdivision (a) of this section. (Amended by Stats. 1977, Ch. 915.)
  7. 2229.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    The state must reimburse certain post-1973 property tax classifications or exemptions, and county auditors, the Controller, and the Legislative Analyst have related filing, payment, review, and reporting duties.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2229. (a) Any classification or exemption of property for purposes of ad valorem property taxation enacted by the Legislature after January 1, 1973, shall be reimbursed by the state for the 1973–1974 fiscal year and for each fiscal year thereafter. (b) For purposes of this section the actual loss of revenue does not include potential revenue from property of a type which was not being assessed and taxed on January 1, 1973. (c) Upon appropriation of reimbursement funds by the Legislature, each county auditor shall file a claim with the Controller on or before September 30 for reimbursement of the tax loss attributable to the exemption. The Controller shall pay on or before December 30 of each year one-half of the amount claimed and shall pay the other one-half on or before April 30. The Controller may audit, or may request the State Board of Equalization to audit, any of these claims or payments. This section does not apply to classes of property affected by Sections 988, 1152, 5303, and subdivision (c) of Section 227. (d) The Legislative Analyst shall review any classification or exemption of property to which this section is applicable and shall report to the Legislature on the general economic effects thereof. This report shall be submitted at least one year prior to the date on which the classification or exemption is scheduled to terminate. (e) Any claim alleging that the reimbursement requirements of this section have not been complied with shall be presented directly to the Legislature and Sections 905.2 and 945.4 of the Government Code shall not apply thereto. (Amended by Stats. 1994, Ch. 229, Sec. 3. Effective January 1, 1995.)
  8. 223.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

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    Certain fruit trees, nut trees, and grapevines are exempt from taxation if they are held on the lien date for later planting in orchard or vineyard form and are planted during the assessment year.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 223. Fruit trees, nut trees, and grapevines of a grower, which are personal property, held on the lien date for subsequent planting in orchard or vineyard form and are planted during the assessment year by the grower shall be exempt from taxation. This section does not apply to plant nurseries. (Amended by Stats. 1968, Ch. 236.)
  9. 2230.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    The state must reimburse cities and counties for certain revenue losses from qualifying sales or use tax exemptions, and the Director of Finance must estimate those losses.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2230. The state shall annually reimburse cities and counties for the net loss of revenue from each statute enacted after January 1, 1973, which provides for a sales or use tax exemption. The reimbursement shall be made, when funds have been appropriated by the Legislature, as follows: (a) Twenty percent of the local net loss shall be distributed to the counties in the same ratio as the total amount of sales and use taxes collected in each county is to the whole. This amount of money shall be deposited by the board of supervisors in the local transportation fund established pursuant to Section 29530 of the Government Code. These moneys shall become part of the local transportation fund and shall be appropriated in the same manner and for the same purposes specified in Section 29531 of the Government Code. (b) Eighty percent of the local net loss shall be distributed to cities and counties in the same ratio as provided in Section 30462 for the distribution of moneys from the Cigarette Tax Fund. The distribution of reimbursement moneys pursuant to this section shall be made at the same time and in the same manner as provided in Section 30462 for the distribution of moneys from the Cigarette Tax Fund. For purposes of this section the Director of Finance shall estimate the annual net loss of revenue to local agencies. In the case of legislative bills which provide for a sales or use tax exemption, the Director of Finance shall prepare an estimate of the annual net loss of revenue to local agencies during the initial fiscal year in which the bill becomes effective. An appropriation consistent with such estimate shall be included in the bill. In subsequent fiscal years an appropriation to reimburse local agencies as required by this section shall be included in the State Budget. The amount included each year in the State Budget shall be changed by the estimated percentage change from the prior year, in the amount of revenue distributed to cities and counties pursuant to Part 1.5 (commencing with Section 7200) of Division 2. For purposes of this section the net loss of revenue does not include (i) potential revenue from the sale or use of property of a type which was not being taxed on January 1, 1973, or (ii) the amount which would have been deducted by the Board of Equalization pursuant to Section 7204.3 for the cost of administering local sales and use tax ordinances. In lieu of distributing reimbursement revenue as provided in this section, any statute exempting property from sales or use tax may provide an alternative procedure for such distribution. Any claim alleging that the reimbursement requirements of this section have not been complied with shall be presented directly to the Legislature and the provisions of Sections 905.2 and 945.4 of the Government Code shall not apply thereto. (Amended by Stats. 1977, Ch. 309.)
  10. 2230.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    The Department of Finance must review certain statutes and executive orders each calendar year and include reimbursement amounts in each Budget Bill.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2230.5. Notwithstanding the provisions of Sections 2229 and 2230, prior to the end of each calendar year, commencing with the 1978 calendar year, the Department of Finance shall review all statutes enacted and executive orders issued during such calendar year which contain provisions relating to Sections 2229 and 2230. The department shall cause to be included in each Budget Bill the amount necessary to provide for reimbursement to local agencies and school districts for the net property tax revenue losses and for reimbursement to cities and counties for the net revenue losses caused by any sales or use tax exemption. (Added by Stats. 1977, Ch. 1135.)
  11. 2232.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    Local agencies and school districts may use funds received under this chapter for any public purpose.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2232. Any funds received by a local agency or school district pursuant to the provisions of this chapter may be used for any public purpose. (Amended by Stats. 1980, Ch. 1256, Sec. 9.)
  12. 2233.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    The Director of Finance must include a budget appropriation for certain statutes when the combined fiscal effect is significant. Claims under Sections 2229 and 2231 generally cannot be made or paid unless they exceed $200, with a limited combined-claim option for counties or county superintendents of schools.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2233. (a) The Director of Finance shall include in the Governor’s Budget an appropriation for a statute which has an otherwise minimal fiscal effect on local agencies or school districts if the director determines that the fiscal effect of the statute and other related statutes is, in the aggregate, significant. (b) No claim shall be made pursuant to Sections 2229 and 2231, nor shall any payment be made on claims submitted pursuant to Sections 2229 and 2231, unless such claims exceed two hundred dollars ($200), provided that a county superintendent of schools or county may submit a combined claim on behalf of direct service districts or special districts within their county if the combined claim exceeds two hundred dollars ($200) even if the individual direct service or special district’s claims do not each exceed two hundred dollars ($200). The county superintendent of schools or county shall determine if the submission of such combined claim is economically feasible and shall be responsible for disbursing such funds to each direct service or special district. Such combined claims may be filed only when the superintendent of schools or county is the fiscal agent for such districts. All subsequent claims based upon the same mandate shall only be filed in such combined form. (Amended by Stats. 1982, Ch. 1638, Sec. 5. Effective October 1, 1982.)
  13. 2235.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    Claims for direct and indirect costs under Sections 2229 and 2231 must be filed in the manner prescribed by the State Controller.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2235. Claims for direct and indirect costs filed pursuant to Sections 2229 and 2231 shall be filed in the manner prescribed by the State Controller. (Added by renumbering Section 2234 (as amended by Stats. 1975, Ch. 105) by Stats. 1977, Ch. 309.)
  14. 2237.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

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    Local agencies must report certain property tax levies above the constitutional limit to the Controller each year, and the report must be filed within 90 days after the fiscal year ends.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2237.2. (a) Annually, no later than 90 days following the end of the fiscal year, each local agency (as defined in Section 95) shall report to the Controller any ad valorem property tax levied by or on behalf of the local agency for the current fiscal year at a rate which is in excess of the limitation prescribed by subdivision (a) of Section 1 of Article XIII A of the Constitution. For purposes of this section, ad valorem property taxes levied by the county or by a special district governed by the board of supervisors at a rate in excess of the limitation prescribed in subdivision (a) of Section 1 of Article XIII A of the Constitution shall be reported by the county auditor. (b) The information to be reported pursuant to this section shall be provided on a form to be specified by the Controller and shall include all of the following information: (1) A description of the local obligation or indebtedness for which the tax is levied. (2) The reason for the exemption from the limitation prescribed by subdivision (a) of Section 1 of Article XIII A of the Constitution. (3) The date of the election authorizing each tax levy, the results of the election, and a copy of the ballot measure, if the levy was authorized by election. (4) The tax rate and the total revenues expected to be generated in the fiscal year. (5) Actual revenues, if any, generated from the levy in the prior fiscal year and actual expenditures, if any, made in the prior year for the local obligation or indebtedness for which the tax was levied. (6) Any other information relating to the levy of property tax at a rate in excess of the limitation prescribed by subdivision (a) of Section 1 of Article XIII A which the Controller deems relevant. (c) With respect to ad valorem property tax levies in excess of the rate limitation prescribed in subdivision (a) of Section 1 of Article XIII A of the Constitution which have been authorized by the voters but not collected during the fiscal year, each local agency shall report the information specified in paragraphs (1), (2), and (3) of subdivision (b). (d) The official of each local agency responsible for submitting the report required by this section shall certify that the information submitted is, to the best of his or her knowledge, true and accurate. (e) The Controller shall require that any property tax levied at a rate in excess of the limit prescribed by subdivision (a) of Section 1 of Article XIII A of the Constitution be reported in the manner specified in this section. (f) For purposes of this section, an “ad valorem property tax” shall be any tax or assessment imposed on the basis of the value of the real property, including any special ad valorem assessment. (Added by Stats. 1982, Ch. 45, Sec. 2.)
  15. 2237.4.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    If a local agency misses the October 1 annual filing deadline for a required report, the Controller and county auditor must reduce the payment to that jurisdiction in the next fiscal year.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2237.4. If a local agency fails to file by October 1 each year a report required by Section 2237.2, the Controller and the county auditor in the succeeding fiscal year shall reduce the payment they are required to make to such jurisdiction based on claims filed pursuant to Section 16113 of the Government Code. The reduction shall be 10 percent of the prior year’s payment or five thousand dollars ($5,000), whichever is less. (Added by Stats. 1982, Ch. 45, Sec. 4.)
  16. 2237.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    The county auditor may add certain prior-year secured-roll indebtedness rates to the 1-percent rate when computing unsecured tax roll rates, subject to the stated constitutional exception.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 2. General Provisions [2227 - 2237.5] ( Article 2 added by Stats. 1973, Ch. 358. ) ## 2237.5. For the 1979–80 fiscal year and thereafter, except as provided by subdivision (b) of Section 12 of Article XIII of the Constitution, for purposes of computing tax rates on the unsecured tax roll, the county auditor may add to the 1-percent rate the rate levied on the prior year’s secured tax roll for indebtedness approved by the voters prior to July 1, 1978, and bonded indebtedness for the acquisition or improvement of real property approved by two-thirds of the voters on or after June 4, 1986, as described in subdivision (b) of Section 1 of Article XIII A of the California Constitution. (Amended by Stats. 1986, Ch. 1457, Sec. 22.5.)
  17. 224.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Certain personal effects, household furnishings, and pets are exempt from taxation.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 224. The personal effects, household furnishings, and pets of any person shall be exempt from taxation. The phrase “personal effects, household furnishings, and pets” does not include boats, aircraft, vehicles, or personalty held or used in connection with a trade, profession or business or pets so held or used. For purposes of this section, “pets” mean and include any animals held for noncommercial purposes and not as an investment. (Amended by Stats. 1974, Ch. 311.)
  18. 2240.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. )

    Verify source ↗

    Revenues used to reimburse local agencies and school districts under sections 2229 or 2230 must be determined and appropriated under this article.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. ) ## 2240. Revenues to reimburse local agencies and school districts pursuant to the provisions of Section 2229 or 2230 shall be determined and appropriated as provided in this article. (Amended by Stats. 1986, Ch. 879, Sec. 29.)
  19. 2241.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. )

    Verify source ↗

    When a bill is introduced or amended, the Legislative Counsel must decide whether state reimbursement is required for local agencies or school districts and state the decision and basis in the bill digest.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. ) ## 2241. When a bill is introduced in the Legislature, and each time a bill is amended, the Legislative Counsel shall determine whether the bill requires state reimbursement to local agencies or school districts pursuant to Section 2229 or 2230. The Legislative Counsel shall make this determination known in the digest of the bill and shall describe in the digest the basis for this determination. In making any determination required by this section the Legislative Counsel shall disregard any provision in a bill which would make inoperative the reimbursement requirements of Section 2229 or 2230, and shall make his or her determination irrespective of any provision to that effect. (Amended by Stats. 1986, Ch. 879, Sec. 30.)
  20. 2242.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. )

    Verify source ↗

    When the Legislative Counsel finds a bill would require state reimbursement to a local agency or school district, the Department of Finance must prepare reimbursement estimates before the relevant legislative hearing.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. ) ## 2242. Whenever the Legislative Counsel determines that a bill will require state reimbursement to a local agency or a school district as provided in Section 2229 or 2230, the Department of Finance shall prepare estimates of the amount of reimbursement which will be required. The estimates shall be prepared for the respective committees of each house of the Legislature which consider taxation measures and appropriation measures and shall be prepared prior to any hearing on such a bill by any such committee. (Amended by Stats. 1986, Ch. 879, Sec. 31.)
  21. 2243.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. )

    Verify source ↗

    The Section 2242 estimate must cover the first fiscal year of a bill’s operation, and if the bill does not take effect on July 1, it must also cover the next full fiscal year.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. ) ## 2243. The estimate required by Section 2242 shall be the amount estimated to be required during the first fiscal year of a bill’s operation in order to reimburse local agencies and school districts, pursuant to Section 2229 or 2230, for lost revenue mandated by the bill. In the event that the operative date of such a bill does not begin on July 1, the estimate shall also include the amount estimated to be required for reimbursement for the next following full fiscal year. (Amended by Stats. 1986, Ch. 879, Sec. 32.)
  22. 2244.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. )

    Verify source ↗

    If a floor amendment makes a bill reimbursable under Sections 2229 or 2230, the Legislative Counsel must immediately notify the Speaker of the Assembly and the President of the Senate, and the notice must be published in each house’s journal.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. ) ## 2244. In the event that a bill is amended on the floor of either house, whether by adoption of the report of a conference committee or otherwise, in such a manner as to require reimbursement pursuant to Section 2229 or 2230, the Legislative Counsel shall immediately inform, respectively, the Speaker of the Assembly and the President of the Senate of this fact. The notification from the Legislative Counsel shall be published in the journal of the respective houses of the Legislature. (Amended by Stats. 1986, Ch. 879, Sec. 33.)
  23. 2246.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. )

    Verify source ↗

    The Director of Finance must include an appropriation in the Governor’s Budget when the specified statutes are expected to raise local detention and probation costs above a 1% threshold, using written requests from affected local agencies and fiscal data.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 3. Method of Providing Reimbursement Revenue for Costs Mandated by State [2240 - 2246.2] ( Article 3 added by Stats. 1975, Ch. 486. ) ## 2246.2. The Director of Finance shall include in the Governor’s Budget an appropriation for statutes identified pursuant to Section 2246 which increase the penalty for a crime or infraction if the director determines that the statutes would increase the total detention and probation costs to local agencies by more than 1 percent of the actual statewide detention and probation costs incurred in the preceding fiscal year, as compiled by the Controller pursuant to Section 12463 of the Government Code. The director shall rely on written requests from affected local agencies, supported by fiscal data. Any funds so appropriated shall be used to reimburse only one-half of the costs incurred by local agencies in excess of the amounts determined to be 1 percent of the actual detention and probation costs to local agencies in the preceding fiscal year. Funds shall be appropriated to the Controller for allocation and disbursement to local agencies. (Added by Stats. 1982, Ch. 1638, Sec. 6. Effective October 1, 1982.)
  24. 225.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Some trailers and dollies with the required Vehicle Code identification plate are exempt from personal property taxation.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 225. (a) A trailer, semitrailer, logging dolly, pole or pipe dolly, or trailer bus, that has a valid identification plate issued to it pursuant to Section 5014.1 of the Vehicle Code, or any auxiliary dolly or tow dolly is exempt from personal property taxation. (b) The exemption provided for in subdivision (a) does not apply to a logging dolly that is used exclusively off-highway. (Amended by Stats. 2001, Ch. 826, Sec. 2. Effective January 1, 2002.)
  25. 225.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    This section defines two types of facilities for Section 214: educational television stations and noncommercial educational FM broadcast stations.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 225.5. (a) For purposes of Section 214 an educational television station is any facility, which does not accept advertising for a consideration and which transmits television programs by wires, lines, radio waves, waveguides, coaxial cable, microwave transmitters or other electronic or mechanical means or any combination thereof, if the corporation, fund or foundation owning such station receives at least twenty-five (25) percent of its operating expenses by means of contributions from the general public or dues from members. (b) For purposes of Section 214 a noncommercial educational FM broadcast station is any facility licensed and operating pursuant to subpart (C) (commencing with Section 73.501) of Part 73 of Title 47 of the Code of Federal Regulations. (Added by Stats. 1966, 1st Ex. Sess., Ch. 121.)
  26. 226.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Qualified computer equipment is exempt from taxation.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 226. (a) Personal property consisting of qualified computer equipment shall be exempt from taxation. (b) For purposes of this section: (1) “Qualified computer equipment” means all computer equipment of the San Diego Supercomputer Center located on the campus of the University of California, San Diego. (2) “Computer equipment” includes, but is not limited to, any supercomputer and all peripheral computer and other equipment related to the system of which the supercomputer is the principal component and all other equipment that becomes a part of that supercomputer system. (Added by Stats. 1988, Ch. 1559, Sec. 1. Effective September 30, 1988. Applicable form July 1, 1988, by Sec. 4 of Ch. 1559.)
  27. 2260.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    Local agencies must determine maximum property tax rates under this article and leave listed levies out of that calculation.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2260. The maximum property tax rates for local agencies shall be those established pursuant to the provisions of this article or of Article 6, 7 or 8 of this chapter (commencing with Section 2201) and shall exclude the following from the determination thereof: (1) any property tax rate levied to pay the cost of interest and redemption charges on bonded or other indebtedness which was authorized prior to the effective date of this section, together with any reserve or sinking funds required in connection therewith; (2) any property tax rate levied to pay the cost of interest and redemption charges on bonded or other indebtedness which was authorized after the effective date of this section by the voters of such agency, together with any reserve or sinking funds required in connection therewith; (3) any property tax rate levied to pay the cost of interest charges on notes of a local agency issued in anticipation of bonds, if such bonds were authorized prior to the effective date of this section or were authorized by the voters of such agency after the effective date of this section, and if the principal amount of any such notes is payable only from proceeds of the sale of such bonds; (4) any property tax rate levied to pay the cost of interest and redemption charges on refunding bonds or on bonds issued pursuant to Section 53541 of the Government Code or Section 71960 of the Water Code, together with any reserve or sinking funds required in connection therewith; (5) any property tax rate levied to pay the cost of retirement and pension benefits or plans which are being provided pursuant to provisions of a city or county charter or which have been specifically approved by the voters of a local agency; (6) any property tax rate levied to pay the cost of payments or contributions which are required to be made to a special fund by specific provision of a city or county charter; (7) any property tax rate levied pursuant to a city charter procedure ordinance for the purpose of paying principal and interest on assessment bonds or for the purpose of paying annual costs of maintenance and operation of improvements financed pursuant to city charter procedure, when the levy is made in relation to benefits derived and not in accordance with the last equalized city or county assessment roll; and (8) any property tax rate levied on behalf of a county superintendent of schools. (Amended by Stats. 1975, Ch. 486.)
  28. 2260.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    When comparing property tax rates across years with different assessment ratios or tax-rate methods, the rates and ratios must be adjusted under Section 135.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2260.5. For the purpose of establishing maximum property tax rates, whenever there is a comparison of rates between two or more years that have different assessment ratios or methods of expressing the tax rate, the rates and ratios shall be adjusted as provided in Section 135. (Added by Stats. 1978, Ch. 1207.)
  29. 2261.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A county’s maximum property tax rate for general purposes is capped by the combined countywide rates from either the 1971–1972 or 1972–1973 fiscal year, as chosen by the board of supervisors.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2261. The maximum property tax rate which may be levied by any county for general purposes shall be the combination of all countywide property tax rates which were levied for general county purposes in either the 1971–1972 or the 1972–1973 fiscal year, at the option of the board of supervisors. (Added by Stats. 1973, Ch. 358.)
  30. 2261.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    Certain counties may set a maximum property tax rate for specified unincorporated areas.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2261.1. (a) Any county which was providing structural fire protection services in unincorporated areas of the county during the 1971–1972 or the 1972–1973 fiscal years and which did not levy a property tax for such services as provided in Section 25643 of the Government Code, may establish a maximum property tax rate for such areas as provided in this section. The maximum property tax rate for such areas shall be determined in the manner provided in subdivisions (b) and (c) of Section 2264. (b) Whenever a maximum property tax rate has been established for an unincorporated area as provided in subdivision (a), such unincorporated area shall be a “special district”, as provided in Section 2216, for all purposes of this chapter. (Repealed and added by Stats. 1975, Ch. 486.)
  31. 2261.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    If a county board of supervisors adopts the specified Education Code provisions and transfers certain auditor duties to the county superintendent of schools, the county’s maximum property tax rate must be reduced.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2261.2. Whenever a county board of supervisors adopts the provisions of Sections 42649 and 85265.5 of the Education Code and thereby transfers certain duties of the county auditor to the county superintendent of schools as provided therein, the maximum tax rate of the county shall, commencing with the fiscal year following the effective date of such transfer, be decreased by an amount which, if levied in such fiscal year, would produce annual revenues equivalent to the expenditures from the county general fund used to provide such services of the county auditor in the fiscal year immediately prior to the date of the transfer of functions to the county superintendent of schools. (Added by Stats. 1977, Ch. 533.)
  32. 2262.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    This section limits the maximum property tax rate a city may levy.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2262. The maximum property tax rate which may be levied by any city shall be: (1) For general law cities, the aggregate of all citywide property tax rates which were levied for general city purposes in either the 1971–1972 or the 1972–1973 fiscal year, at the option of the city council; provided that if the aggregate of such property tax rates was less than one dollar ($1) in both the 1971–1972 and the 1972–1973 fiscal years, the maximum property tax rate for such cities shall be one dollar ($1). In addition, any property tax rate authorized by the voters of a city as provided in Section 43068 of the Government Code which was not levied as part of the aggregate of citywide taxes in the fiscal year selected by the city council pursuant to this subdivision may also be levied. (2) For charter cities, the maximum rate, or rates, specified in the charter; provided that any rate in excess of such maximum rate which is authorized by Section 43072 of the Government Code or by Section 35 of Chapter 1 of the Statutes of 1968 (First Extraordinary Session) and which was levied during either the 1971–1972 or the 1972–1973 fiscal year may continue to be levied. If no maximum rate is specified in the charter, or if a maximum rate is specified but such rate is applicable only to a portion of the purposes for which such city is levying an ad valorem property tax, the maximum rate shall be the rate levied by the city for either the 1971–1972 or the 1972–1973 fiscal year, at the option of the city council. In addition, if the voters of a charter city, pursuant to provisions of the charter or of general law, have authorized an additional rate, such augmented rate shall be the maximum property tax rate. (Amended by Stats. 1977, Ch. 309.)
  33. 2262.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

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    A city-formed local agency or district may raise its maximum property tax rate in the affected territory if it has taken over county service area services and the county service area no longer taxes that territory.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2262.2. A local agency or district formed by a city after the effective date of this chapter to take over and perform services theretofore provided by a county service area for the same territory, may adjust, or cause to be adjusted, upwards, its maximum property tax rate in that territory by an amount equal to the tax rate previously levied, or which could have been levied, by the county service area (including any additional levies permitted by Section 2280), had it continued to provide those services for the territory provided that the county service area is no longer empowered to tax or does not tax the territory covered by the city’s local agency or district. (Added by Stats. 1978, Ch. 291.)
  34. 2263.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    For special districts formed before January 1, 1972, this section sets the maximum property tax rate that may be levied, using the enabling statute, prior fiscal-year levies, or an authorized additional rate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2263. The maximum property tax rate which may be levied by, or on behalf of, a special district formed prior to January 1, 1972, shall be: (1) The maximum property tax rate authorized by the enabling statute under which the district is organized; provided that any rate in excess of such maximum rate which is authorized by Section 35 of Chapter 1 of the Statutes of 1968 (First Extraordinary Session) and which was levied during either the 1971–1972 or the 1972–1973 fiscal year may continue to be levied. (2) If no such maximum property tax rate is provided by statute, or if a maximum property tax rate is provided but such rate is applicable only to a portion of the purposes for which such district is levying an ad valorem property tax, the maximum rate shall be the rate levied by, or on behalf of, the district for either the 1971–1972 or the 1972–1973 fiscal year, at the option of the governing body of the district. If a district operates on a calendar year, the maximum rate which may be levied pursuant to this subdivision shall be that levied in either calendar 1972 or calendar 1973, at the option of the governing body of the district. (3) In addition, if the voters of a district, pursuant to provisions of the enabling statute under which the district is organized, have authorized an additional rate, such augmented rate shall be the maximum property tax rate. (Amended by Stats. 1977, Ch. 309.)
  35. 2263.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    This section lets certain special districts ask county supervisors or the local agency formation commission to set a maximum property tax rate when Section 2263 does not allow one to be established.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2263.1. This section shall apply only to special districts formed between January 1, 1972, and the effective date of this section. (a) For special districts the governing body of which is separately and directly elected by the qualified voters of the district, in the event that a maximum property tax rate cannot be established for such district pursuant to the provisions of Section 2263, the governing body may, by resolution, apply to the board of supervisors of the county in which the district, or the major portion of the assessed value thereof, is located to determine the maximum tax rate. Upon receipt of such a resolution the board of supervisors shall, by resolution, determine the maximum tax rate for the district. Such rate shall be sufficient to permit the district to provide the programs and services for which it was formed. (b) For special districts the governing body of which is a city council, a board of supervisors or is appointed to office, in the event that a maximum tax rate cannot be established for such district pursuant to the provisions of Section 2263, the governing body may, by resolution, apply to the local agency formation commission in the county in which the district is located to determine the maximum tax rate. Upon receipt of such a resolution the local agency formation commission shall hold a hearing and shall determine the maximum tax rate for the district. Such rate shall be sufficient to permit the district to provide the programs and services for which it was formed. Procedures for holding such a hearing and making such a determination shall follow, as nearly as is practicable, the procedures provided in the District Reorganization Act (Division 1 (commencing with Section 56000) of Title 6 of the Government Code) for hearing and determination by a local agency formation commission. (Added by Stats. 1973, Ch. 358.)
  36. 2263.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A special district’s formation is not effective for property tax purposes unless the district’s voters establish a maximum property tax rate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2263.2. After the effective date of this section the formation of a special district shall not be effective for property tax purposes unless a maximum property tax rate has been established by the voters of the district pursuant to the provisions of Article 6 (commencing with Section 2285) provided, however, that the maximum property tax rate for a maintenance district formed pursuant to the Improvement Act of 1911 or the Municipal Improvement Act of 1913 may be established prior to or concurrently with the formation of such district by any petition or by supplemental written consent executed by property owners holding at least 60 percent in area of the land to be benefited. The procedures for such petition or supplemental written consent shall follow the procedures provided in the Majority Protest Act of 1931. (Added by Stats. 1973, Ch. 358.)
  37. 2263.4.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A harbor district’s property tax rate is capped at the greater of specified historic rates or a stated assessed-valuation rate, with an extra voter-authorized rate controlling if applicable.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2263.4. Notwithstanding paragraph (2) of Section 2263, the maximum property tax rate which may be levied by, or on behalf of, a harbor district shall be the greater of three cents ($0.03) per one hundred dollars ($100) of assessed valuation or the rate levied by, or on behalf of, the district for either the 1971–1972 or the 1972–1973 fiscal year, at the option of the governing body of the district. If a district operates on a calendar year, the maximum rate which may be levied pursuant to this subdivision shall be the greater of three cents ($0.03) per one hundred dollars ($100) of assessed valuation or that levied in either calendar 1972 or calendar 1973, at the option of the governing body of the district. Beginning in the 1981–82 fiscal year, the maximum property tax rate which may be levied shall be the greater of 75/10,000 of 1 percent of assessed valuation or the rate levied by, or on behalf of, the district for either the 1971–72 or the 1972–73 fiscal year, at the option of the governing body of the district. If a district operates on a calendar year, the maximum rate which may be levied pursuant to this section shall be greater of 75/10,000 of 1 percent of assessed valuation or that levied in either calendar year 1972 or calendar year 1973, at the option of the governing body of the district. In addition, if the voters of a district, pursuant to provisions of the enabling statute under which the district is organized, have authorized an additional rate, such augmented rate shall be the maximum property tax rate. (Amended by Stats. 1980, Ch. 1208, Sec. 82.)
  38. 2264.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    This section sets how the maximum property tax rate is determined for certain special districts.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2264. In the event that a local agency elects to follow the provisions of Part 3.5 (commencing with Section 2131) of this division, for levying a property tax rate in certain special districts, the maximum property tax rate for such districts shall be determined as provided in this section. For all purposes of this chapter, such maximum property tax rate shall be applied to the total assessed value within such district. In such situations the actual property tax rate for such a district shall be levied in each county in which the district is situated as provided in Part 3.5 without regard to the limitations provided elsewhere in this article. (a) If a maximum property tax rate is provided in the enabling statute under which the district is organized, the maximum property tax rate for the district shall be the rate provided by statute. (b) If no maximum property tax rate is provided by statute, the maximum property tax rate for such a district shall be the rate determined by dividing the receivable property tax revenue of the district by the total assessed value within the district. The governing body of a district may elect, at its option, to use either the 1971–1972 or the 1972–1973 fiscal year as the basis for determining the maximum property tax rate pursuant to this subdivision. (c) As used in this section: (1) “Receivable property tax revenue” means the amount of revenue from ad valorem property taxation which a district would have received in any fiscal year if the district’s ad valorem property taxes for such year had been collected for all taxable property within the district, without regard to delinquencies, penalties or other modifications or adjustments. (2) “Total assessed value within the district” means all assessed value in each county in which the district is located which is subject to ad valorem property taxation by, or on behalf of, such district; plus the assessed value in each such county which is attributable to the homeowners’ property tax exemption and to the business inventory property tax exemption and which otherwise would have been subject to ad valorem property taxation by, or on behalf of, such district. (Added by Stats. 1973, Ch. 358.)
  39. 2265.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    Voters of a local agency may set a maximum property tax rate for the agency under Article 6.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2265. In lieu of the maximum property tax rates established by other provisions of this article, the voters of a local agency may establish a maximum property tax rate for such agency pursuant to the provisions of Article 6 (commencing with Section 2285). (Added by Stats. 1973, Ch. 358.)
  40. 2266.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    This section sets an alternate formula for the maximum property tax rate a local agency may levy or have levied on its behalf.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2266. This section shall provide an alternate procedure to the other provisions of this chapter for establishing maximum property tax rates. The maximum property tax rate which may be levied by, or on behalf of, a local agency shall be a rate equivalent to the following: (1) The maximum property tax rate which could have been levied for such agency pursuant to any provision of this chapter for the prior fiscal year, plus (2) A property tax rate, not less than zero, on the secured roll which would produce an amount of property tax revenue equal to the following: (a) The amount of property tax revenue which would be received by such agency in the current fiscal year by levying the rate identified in subparagraph (1) of this paragraph against the agency’s total assessed value for the current fiscal year, subtracted from (b) The amount of property tax revenue which would be received by such agency in the current fiscal year if its property tax revenue from the prior year were to change by a percentage equal to the following: the percentage change in the population of the agency (as determined pursuant to Section 2227 or 2228) plus the percentage change in the cost of living (as determined pursuant to Section 2212) which is applicable to the agency. As used in this section “property tax revenue from the prior year” means the revenue which would have been received by a local agency in the prior fiscal year by levying the maximum property tax rate authorized by this chapter against the total assessed value for such year. As used in this section “total assessed value” means all assessed value subject to ad valorem property taxation by a local agency plus assessed value attributable to the homeowners’ property tax exemption and to the business inventory property tax exemption. Any property tax rate established pursuant to this section shall be the maximum property tax rate for a local agency until such rate is subsequently changed or adjusted pursuant to the provisions of this section or other provisions of this chapter. (Amended by Stats. 1977, Ch. 309.)
  41. 2266.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A special district that uses ad valorem property taxation without full cash value on the assessment roll is not covered by Section 2266, and this section provides an alternate way to calculate its maximum property tax rate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2266.1. In the event that a special district employs a system of ad volorem property taxation in which the district assessment roll is not based upon the full cash value of the assessed property, the provisions of Section 2266 shall not apply to such district, and this section shall provide an alternate procedure to the other provisions of this article for establishing the maximum property tax rate of such district. The maximum property tax rate which may be levied by, or on behalf of, a special district subject to the provisions of this section shall be a rate equivalent to the following: (1) The rate established for such special district pursuant to the provisions of Section 2263, plus (2) A rate obtained by multiplying the rate determined pursuant to subdivision (1) by the percentage change in the total assessed value of property within the district as shown on the current equalized secured assessment roll of the county, and the total assessed value of property within the district as shown on the equalized secured assessment roll of the county for the 1972–1973 fiscal year. As used in the section, “total assessed value” shall have the same meaning as in Section 2266. (Added by Stats. 1973, Ch. 358.)
  42. 2266.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    For Section 2266, “property tax revenue” includes certain state distributions made to local government under the Timber Yield Tax Law.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2266.2. As used in Section 2266, “property tax revenue” includes revenue distributed in the prior fiscal year to local government by the state pursuant to the Timber Yield Tax Law (Part 18.5 (commencing with Section 38101), Division 2). (Added by Stats. 1976, Ch. 176.)
  43. 2266.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    This section creates an alternate method for setting maximum property tax rates. If a chartered city transfers property assessment and tax collection to its county, the city’s maximum tax rate for the first fiscal year after the transfer is based on the prior year’s rate multiplied by a factor set by the State Board of Equalization.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2266.5. This section shall provide an alternate procedure to the other provisions of this article for establishing maximum property tax rates. In the event that a chartered city assesses property and collects taxes and transfers such functions to the county in which such city is located, the maximum tax rate for such city in the first fiscal year in which the transfer is effective shall be determined by multiplying the city’s maximum tax rate for the preceding fiscal year by the same factor established by the State Board of Equalization to determine the public utility roll supplied to the city for such preceding fiscal year. (Added by Stats. 1975, Ch. 631.)
  44. 2267.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    If a local agency’s property tax rate was wrongly determined in 1971-1972 or 1972-1973, the maximum property tax rate for that agency is the rate that would have applied without the error or omission.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 4. Maximum Property Tax Rates [2260 - 2267] ( Article 4 added by Stats. 1973, Ch. 358. ) ## 2267. In the event that an error or omission occurred in determining the property tax rate which was levied by, or on behalf of, a local agency in either the 1971–1972 fiscal year or the 1972–1973 fiscal year, the maximum property tax rate for such agency for purposes of this chapter shall be the property tax rate which would have been levied, in either such fiscal year, if such error or omission had not occurred. (Added by Stats. 1973, Ch. 358.)
  45. 227.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    A documented vessel is assessed at 4% of full cash value only if it is used exclusively for certain listed fishing, research, or passenger-fishing activities.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 227. A documented vessel, as defined in Section 130, shall be assessed at 4 percent of its full cash value only if the vessel is engaged or employed exclusively in any of the following: (a) In the taking and possession of fish or other living resource of the sea for commercial purposes. (b) In instruction or research studies as an oceanographic research vessel. (c) In carrying or transporting seven or more people for hire for commercial passenger fishing purposes and holds a current certificate of inspection issued by the United States Coast Guard. A vessel shall not be deemed to be engaged or employed in activities other than the carrying or transporting of seven or more persons for hire for commercial passenger fishing purposes by reason of that vessel being used occasionally for dive, tour, or whale watching purposes. For purposes of this subdivision, “occasionally” means 15 percent or less of the total operating time logged for the immediately preceding assessment year. (Amended by Stats. 2000, Ch. 647, Sec. 4. Effective January 1, 2001.)
  46. 2270.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may impose an additional property tax rate to cover specified debt, pension, and special-fund costs, subject to a charter-based exception for some cities and counties.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2270. A local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter (commencing with Section 2201) to pay the cost of: (1) interest and redemption charges on bonded or other indebtedness authorized prior to the effective date of this section, together with any reserve or sinking funds required in connection therewith; (2) interest and redemption charges on bonded or other indebtedness authorized after the effective date of this section by the voters of such agency, together with any reserve or sinking funds required in connection therewith; (3) interest charges on notes of a local agency issued in anticipation of bonds, if such bonds were authorized prior to the effective date of this section or were authorized by the voters of such agency after the effective date of this section, and if the principal amount of any such notes is payable only from proceeds of the sale of such bonds; (4) interest and redemption charges on refunding bonds or on bonds issued pursuant to Section 53541 of the Government Code or Section 71960 of the Water Code, together with any reserve or sinking funds required in connection therewith; (5) retirement and pension benefits or plans which are being provided pursuant to provisions of a city or county charter or which have been specifically approved by the voters of a local agency; and (6) payments or contributions which are required to be made to a special fund by specific provision of a city or county charter; provided, however, that this subdivision shall not apply to any city or county whose charter contains a provision permitting the governing body to suspend or defer such payments or contributions upon making a finding that statutory limitations on ad valorem property taxation limit the ability of the city or county to make such payments or contributions. (Amended by Stats. 1975, Ch. 486.)
  47. 2271.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may add a property tax rate for certain unfunded mandated costs, and the Controller can audit that rate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2271. A local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter (commencing with Section 2201) to pay costs mandated by the federal government or costs mandated by the courts or costs mandated by initiative enactment, which are not funded by federal or state government. The Controller may audit any rate imposed under this section and any data related to the establishment thereof. If the Controller determines that such rate exceeds a rate which would be necessary to meet the federally mandated, initiative-mandated or court-mandated costs, or if the Controller determines that such rate has been levied to pay any cost mandated by a court which has resulted from litigation entered into in order to avoid the property tax rate limits established by this chapter, or if the Controller determines that a local agency has erroneously concluded that it is subject to costs mandated by the courts or costs mandated by the federal government, he shall immediately notify the local agency of such determination, and the local agency shall reduce its property tax rate by an appropriate amount for the next succeeding fiscal year. In the event that a local agency fails to make such a reduction in its property tax rate, the Controller shall request the Attorney General to bring an action under Chapter 2 (commencing with Section 1084) of Title 1 of Part 3 of the Code of Civil Procedure to force a reduction in the rate. (Amended by Stats. 1977, Ch. 309.)
  48. 2271.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may keep collecting an additional property tax, but not if a final court order upholds the mandate’s reversal, repeal, stay, or invalidation.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2271.1. An additional property tax heretofore or hereafter levied pursuant to the provisions of Section 2271 shall not be invalidated and may continue to be levied to meet recurring costs resulting from any program or activity undertaken or implemented by a local agency in order to comply with a mandate by the federal government, by initiative enactment or the courts, notwithstanding the reversal, repeal, stay, or invalidation of such mandate, if the reversal, repeal, stay, or invalidation of the mandate occurred or occurs after the local agency has made such additional levy to satisfy continuing contractual obligations entered into in order to undertake, implement or continue the mandated program or activity. The additional rate shall not continue to be levied if the reversal, repeal, stay, or invalidation of the mandate is upheld by a final court order. (Amended by Stats. 1975, Ch. 486.)
  49. 2271.15.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may keep a pre-1976 additional property tax levy in place to cover certain mandated costs, even if the related FLSA amendments or regulations were later repealed, stayed, or invalidated.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2271.15. Notwithstanding the provisions of Section 2271.1, an additional levy made prior to January 1, 1976, pursuant to the provisions of Section 2271 to pay costs mandated by the 1974 amendments to the Fair Labor Standards Act, or regulations issued pursuant thereto, shall not be invalidated and may continue to be made to meet recurring costs resulting from any program or activity undertaken or implemented by a local agency in order to comply with such amendments or regulations, notwithstanding the repeal, stay or invalidation of such amendments or regulations, if the repeal, stay or invalidation of such amendments or regulations occurs or occurred after the local agency has made such additional levy or has incurred continuing obligations in order to implement the mandated program or activity. (Added by Stats. 1976, Ch. 586.)
  50. 2271.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    The Controller must issue and revise advisory guidelines, as needed, to help local agencies decide when an additional property tax rate may be levied under Section 2271.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2271.2. The Controller shall issue, and shall revise, as needed, advisory guidelines to assist local agencies in determining when an additional property tax rate may be levied pursuant to Section 2271. (Amended by Stats. 1977, Ch. 309.)
  51. 2272.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may levy, or have levied for it, an additional property tax rate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2272. A local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter (commencing with Section 2201) for the purpose of complying with Sections 5302.5, 6467, 6468, 8809, and 10206 of the Streets and Highways Code or with Section 43240 of the Government Code or with Article 1 (commencing with Section 13371) of Chapter 7.5 of Division 6 of the Public Utilities Code. (Added by Stats. 1973, Ch. 358.)
  52. 2273.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may add a property tax rate above the usual maximum for certain older contracts, but it cannot do so after the contract ends unless a narrow replacement-contract condition is met.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2273. (a) A local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter (commencing with Section 2201) for the purpose of meeting the costs of written contractual obligations, leases and agreements, including determinations made pursuant to the Meyers-Milias-Brown Act (Chapter 10 (commencing with Section 3500) of Division 4 of Title 1 of the Government Code), which were entered into, or authorized by the governing body or by the voters of such agency, prior to January 1, 1973, if: (1) The local agency incurred no costs or budgeted no expenditures under the contractual obligation or agreement during the 1972–1973 fiscal year but will incur such costs in subsequent fiscal years, or (2) The local agency did incur costs pursuant to the contractual obligation or agreement in the 1972–1973 fiscal year, but in subsequent fiscal years such costs increase in an amount which exceeds either the growth rate in the local agency’s assessed value or its growth rate in population and cost of living as determined pursuant to Section 2212 and Sections 2227 or 2228. (b) The additional rate which may be levied to meet costs described in paragraph (1) of subdivision (a) shall be that rate in each fiscal year which produces the amount of revenue needed to meet the actual annual costs of the contract or obligation. (c) The additional rate which may be levied in each fiscal year to meet costs described in paragraph (2) of subdivision (a) shall be that rate which produces an amount of revenue equal to the difference between (i) the cost of the contract for the current year and (ii) the adjusted base year cost of the contract. Such adjusted base year cost shall be determined as follows: (i) for the 1973–1974 fiscal year, the actual cost of the contract in the 1972–1973 fiscal year shall be multiplied by either the percentage increase in population and the cost of living or the percentage increase in assessed value which is applicable to the local agency, whichever is greater. The product of such multiplication plus the actual cost of the contract during the 1972–1973 fiscal year shall be the adjusted base cost of the contract; (ii) for each subsequent fiscal year, the adjusted base year cost of the contract of the prior year shall be multiplied by either the percentage increase in the cost of living and population or the percentage increase in assessed value which is applicable to the local agency, whichever is greater. The product of such multiplication plus the adjusted base year cost of the contract in the prior fiscal year shall be the adjusted base cost of the contract in the current year. For the 1981–82 fiscal year, the assessed value for the 1980–81 fiscal year shall be multiplied by four prior to calculating the percentage increase in assessed value. (d) No local agency may levy an additional rate as provided in this section after the termination of the contractual obligation or agreement described in subdivision (a); provided that a local agency may continue to levy an additional rate equal to the rate levied for the entire last year of such a contract or agreement if (i) the local agency enters a new contractual obligation which provides for substantially similar kinds of services or goods as the terminated contract, and (ii) the new contractual obligation concerns personal services, consumable goods or personal property and does not in any manner involve real property as defined in Section 104. The additional property tax rate authorized by this section shall apply (i) to contractual obligations arising from the exercise of options and (ii) to contractual obligations arising from contingent promises. Except as specifically provided by this section, the additional property tax rate authorized by this section does not apply to contractual obligations incurred by mutual agreement of the contracting parties after January 1, 1973. (Amended by Stats. 1980, Ch. 1208, Sec. 83.)
  53. 2273.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    Section 2273 applies to certain contracts or leases signed after January 1, 1973 if a local agency took qualifying formal action before that date.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2273.1. The provisions of Section 2273 shall apply to a contract or lease signed after January 1, 1973, if a local agency, in anticipation of such contract, shall have taken formal action prior to January 1, 1973, to implement one or more projects to be acquired or constructed pursuant to such contract. “Formal action to implement any one or more projects” means: (a) The incurring of a liability for a substantial portion of an architectural or engineering contract relating to the project; or (b) The acquisition of land or improvements for the project. (Added by Stats. 1973, Ch. 358.)
  54. 2273.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may levy an additional property tax rate to make contract or lease payments, if the statute’s conditions are met.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2273.2. If, prior to January 1, 1973, a local agency was a party to any contract or lease, the terms of which provide (1) that the local agency shall make payments to the federal government, the State of California or any other local agency and (2) that the governing body of such local agency shall, whenever necessary, levy an ad valorem property tax sufficient to provide for all payments under the contract or lease in a timely manner, such local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter (commencing with Section 2201) for the purpose of making such payments as are required by such contract or lease; provided, that, the provisions of this section shall apply to a contract or lease signed after January 1, 1973, which contains the terms stated in (1) and (2) above if the terms of such contract or lease are designed to prevent an increase in the burden on the taxpayers of the local agency by means of providing for a reduction in payments under a contract or lease signed before January 1, 1973, to which this section is applicable, in amounts at least equal to the payments required under the contract or lease signed after January 1, 1973. (Amended by Stats. 1974, Ch. 1261.)
  55. 2274.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may levy an extra property tax rate in an emergency or general disaster, but only with a two-thirds vote and only for one year.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2274. (a) In the event of an emergency which constitutes a danger to the public health, safety or welfare, or of a general disaster, which requires a local agency to incur additional costs which cannot be met under the maximum property tax rates provided by this chapter (commencing with Section 2201), a local agency may levy, or have levied on its behalf, an additional rate which will produce 1 percent of the amount produced by its maximum property tax rate. Such a rate shall be authorized by a two-thirds vote of the governing body and shall be levied for one year only. In the event that the property tax rate has been set when an additional rate is authorized pursuant to this subdivision, such additional rate may be levied in the next following fiscal year. (b) If the additional rate authorized by subdivision (a) is not sufficient to meet the costs incurred as a result of the emergency or general disaster, a local agency may, by resolution, request the Controller to authorize an additional amount of ad valorem property taxation in excess of that authorized pursuant to subdivision (a). The local agency shall, upon request of the Controller, provide the Controller with such facts and evidence as will enable him to authorize an additional amount pursuant to the provisions of this subdivision. Upon receipt of the resolution requesting the authorization of an additional amount, the Controller shall hold a public hearing within the jurisdiction of the local agency or as near thereto as is practicable. At the conclusion of the hearing he shall authorize an additional amount if he makes the following findings: (1) An emergency or general disaster does exist the costs of which cannot be met under the agency’s maximum property tax rate and under the additional tax rate provided in subdivision (a). (2) Such costs are the responsibility of the local agency and cannot be met from revenue sources other than the property tax. (3) Such costs are not within the immediate control of the local agency but are due rather to general economic, environmental, or social conditions, or any of them, or acts of God. Environmental conditions shall include orders of the State Water Resources Control Board or regional water quality control boards. (4) The emergency or general disaster endangers public health, safety or welfare. The additional amount authorized pursuant to this subdivision may be raised during a single fiscal year or, at the discretion of the local agency, a portion of such amount may be raised in each of several fiscal years. In any fiscal year a local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter which will be sufficient to produce the amount authorized pursuant to this subdivision, or the portion thereof which the local agency has determined will be raised in such fiscal year. (Amended by Stats. 1974, Ch. 457.)
  56. 2275.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may levy an extra property tax rate for certain emergency-related debt costs.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2275. A local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter (commencing with Section 2201) to pay the cost of interest and redemption charges, together with any reserve or sinking funds required in connection therewith, on any note or other evidence of indebtedness which such agency is authorized by statute to issue in the event of emergencies involving major damage to, and destruction of, such agency’s works or facilities. Such rate shall be levied without regard to the provisions of Section 2274. (Added by Stats. 1973, Ch. 358.)
  57. 2276.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A qualifying local agency may levy an additional property tax rate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2276. A local agency to which Section 2267 is applicable, may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to Section 2267 for the purpose of repaying any indebtedness which was incurred in order to pay the operating costs of such agency during the fiscal years in which an error or omission occurred in determining the property tax rate for such agency. (Added by Stats. 1973, Ch. 358.)
  58. 2277.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may levy an additional property tax rate to pay the actual cost of holding an election.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2277. A local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter (commencing with Section 2201) for the purpose of paying the actual cost of holding an election pursuant to the provisions of Article 6 (commencing with Section 2285). (Added by Stats. 1973, Ch. 358.)
  59. 2278.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

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    A local agency may levy an additional property tax rate to pay or collect certain fees, assessments, charges, or obligations tied to a governmental reorganization.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2278. In the event that a local agency is required to pay or is authorized to collect any fees, assessments, charges or obligations as a term or condition of a “governmental reorganization,” as such term is defined in Section 2295, the local agency may levy, or have levied on its behalf, a rate, in addition to the maximum property tax rate established pursuant to this chapter, for the purpose of paying or collecting the actual amount of such fees, assessments, charges, or obligations. (Added by Stats. 1973, Ch. 358.)
  60. 2279.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

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    A local agency may levy an additional property tax rate for specified interest and redemption charges tied to amounts borrowed under Government Code Section 54902.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2279.1. A local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter for interest and redemption charges on amounts borrowed pursuant to Section 54902.1 of the Government Code. (Added by renumbering Section 2279 by Stats. 1979, Ch. 516.)
  61. 228.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

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    A vessel worth $400 or less is exempt from taxation if it is used or held for noncommercial purposes, subject to listed exceptions.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 228. (a) A vessel with a market value of four hundred dollars ($400) or less shall be free from taxation. This section shall only apply to vessels used or held for noncommercial purposes and shall not apply to lifeboats or other vessels used in conjunction with operations of vessels with a market value of more than four hundred dollars ($400). This section shall not apply to more than one vessel owned, claimed, possessed, or controlled by an assessee on the lien date. (b) For purposes of this section, “vessel” includes every description of watercraft used or capable of being used as a means of transportation on water, except vessels described in paragraphs (1) and (2) of subdivision (c) of Section 651 of the Harbors and Navigation Code. (c) For purposes of this section, “vessel” includes all equipment, including mode of power, and furnishings that are normally required aboard the vessel during the accomplishment of the functions for which the vessel is being utilized. (Amended by Stats. 1983, Ch. 1281, Sec. 11. Effective September 30, 1983.)
  62. 2280.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

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    A qualifying special district may levy an extra property tax rate to cover extraordinary electricity costs for street lighting, and must follow the section’s calculation steps.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2280. A special district may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter in order to pay the extraordinary costs of purchasing electricity for use for street lighting which was in operating condition in the 1972–73 fiscal year. This section shall apply only to special districts that were in existence on January 1, 1976, and which have as their sole and exclusive purpose the provision of street lighting services. Such additional rate shall be determined in the following manner: (1) The special district shall determine the actual cost of electricity used for street lighting purposes during the 1972–73 fiscal year. (2) The special district shall then determine the property tax rate which, applied to such district’s assessed valuation in the 1972–73 fiscal year, would have produced an amount of revenue equivalent to the costs determined pursuant to subdivision (1). (3) Annually, the special district shall determine whether the property tax rate determined pursuant to subdivision (2) would be increased if such rate were adjusted as provided in Section 2266. If such property tax rate would be increased, it shall be adjusted in the manner provided in Section 2266. (4) The property tax rate determined pursuant to subdivision (2), as such rate may have been adjusted pursuant to subdivision (3), shall then be applied to the district’s assessed valuation for the current fiscal year. The resulting amount shall represent the cost of electricity for street lighting purposes which shall be funded, during the current fiscal year, out of such district’s maximum property tax rate. (5) The amount determined pursuant to subdivision (4) shall be subtracted from the actual cost to the district for the current fiscal year of electricity for street lighting which was in operating condition in the 1972–73 fiscal year. The amount resulting from such subtraction shall represent such district’s extraordinary cost of purchasing electricity for street lighting purposes and the special district may levy such additional property tax rate as may be necessary to produce an amount of revenue equivalent to such extraordinary costs. If the amount resulting from such subtraction is a negative amount, the special district shall reduce its property tax rate as may be necessary to produce an amount of revenue which, when deducted from the actual cost to the district for the current fiscal year of electricity for street lighting, will not result in a negative balance. (Added by Stats. 1976, Ch. 461.)
  63. 2280.01.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    A local agency may levy an additional property tax rate if the voters approve it, and the proposal must state the maximum rate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2280.01. (a) A local agency may levy, or have levied on its behalf, a rate in addition to the maximum property tax rate established pursuant to this chapter for purposes authorized by this section. (b) In the event that a local agency desires to levy a property tax rate for a specified purpose, it shall submit a proposal to levy such a tax to the qualified voters thereof for approval. The proposal shall specify the maximum rate to be levied. (c) An election held pursuant to this section shall be called, held and conducted in the same manner as required by Article 6 (commencing with Section 2285). (d) In the event that the qualified voters of a local agency approve an additional property tax rate as provided in this section, such tax rate may be levied for the purpose specified in the ballot proposition. (e) Once the purpose for which the additional property tax rate was authorized has been accomplished, the additional rate shall terminate. (f) The proposal may specify a date on which the special property tax rate shall terminate. (Added by renumbering Section 2280 by Stats. 1979, Ch. 516.)
  64. 2280.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. )

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    A city may levy an additional property tax rate, or have it levied for it, to comply with Section 43073 of the Government Code.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 5. Additional Property Tax Rates [2270 - 2280.1] ( Article 5 added by Stats. 1973, Ch. 358. ) ## 2280.1. A city may levy, or have levied on its behalf, a rate in addition to the maximum tax rate established pursuant to this chapter in order to comply with the provisions of Section 43073 of the Government Code. (Added by Stats. 1977, Ch. 309.)
  65. 2285.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. )

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    This section defines who counts as a qualified voter for a local agency election, and who may cast a landowner vote in certain cases.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. ) ## 2285. For the purposes of this article, the term “qualified voter of the local agency” means a voter who meets the specific qualifications, if any, set forth for voters of that local agency for other purposes. If no such specific qualifications exist, the term means a registered voter, as defined in the Elections Code, residing within the area within which the election will be held; if there are no registered voters within that area, the term means a landowner, in which case each landowner shall have one vote. If such landowner is a partnership, joint tenancy or tenancy in common, the vote to which such landowner is entitled may be cast by any of the partners, joint tenants or tenants in common; provided that only one such vote shall be cast on behalf of the landowner. If such landowner is a corporation, the vote to which such corporation is entitled may be cast by any officer of such corporation who is empowered to act on behalf of the corporation. As used in this section “landowner” means any person or corporation shown on the last equalized assessment roll as the owner of land; provided that where such person or corporation is no longer the owner, the term shall mean any person or corporation entitled to be shown as the owner on the next assessment roll. (Amended by Stats. 1977, Ch. 309.)
  66. 2286.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. )

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    Local agencies formed after this chapter’s effective date generally cannot levy a property tax rate unless a maximum rate has been approved. A governing body that wants to change a preexisting agency’s maximum rate must call a special election, and approval requires a majority vote of qualified voters.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. ) ## 2286. (a) No local agency formed after the effective date of this chapter shall levy, or have levied on its behalf, any property tax rate, except an additional property tax rate authorized pursuant to Article 5 (commencing with Section 2270) of this chapter, unless a maximum property tax rate has been approved for such agency. If an election is held on the formation of a local agency, the maximum property tax rate for such agency shall be included in describing the local agency on the ballot in the formation question. (b) In the event that a local agency which was in existence on the effective date of this chapter desires to change its maximum property tax rate, the governing body of such agency shall call a special election, pursuant to the provisions of this article, to approve a new maximum property tax rate for the agency. (c) No maximum property tax rate described in subdivision (a) or (b) shall be approved except by a majority vote of the qualified voters of that local agency voting on the issue. (d) Subdivisions (a), (b) and (c) of this section shall not apply to an improvement district formed prior to, or after, the effective date of this chapter for the purpose of levying an ad valorem tax as defined in Section 2202 of the Revenue and Taxation Code for the purpose of apportioning the costs of facilities and services made available by a local agency, so long as the total property tax rate within such improvement district does not exceed the maximum rate which could be levied upon the property therein by a local agency without regard to the existence of such improvement district. (e) Subdivisions (a), (b) and (c) shall not apply to an improvement district formed for the purpose of issuing bonds if the issuance of such bonds has been approved by the electorate of such improvement district. (Amended by Stats. 1977, Ch. 1136.)
  67. 2287.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. )

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    If a local agency is formed without an election, consents to a maximum property tax rate may be submitted at formation or within 30 days, and the rate is approved after all consents are received.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. ) ## 2287.5. Whenever a local agency is formed without an election, there may be submitted to the agency declaring the formation, at the time of formation or within 30 days thereafter, consents to maximum property tax rate from all of the qualified voters of the local agency and, upon receipt of all consents, the maximum tax rate shall be declared approved by the agency declaring formation. All consents to maximum tax rate shall be on forms provided by the agency declaring formation and shall contain substantially the language that would appear on the ballot if a maximum property tax rate election were to be held. Each consent shall show the name and address of the qualified voter, whose signature must be notarized. All consents shall be for the same maximum property tax rate. The county clerk shall verify the signatures on all consents and that the consents constitute all of the qualified voters in the local agency prior to a declaration of approval of the maximum property tax rate. (Added by Stats. 1978, Ch. 45.)
  68. 2288.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. )

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    This section sets the procedure for certain local maximum property tax rate elections and assigns the county elections official to run them.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. ) ## 2288. A maximum property tax rate election held by a local agency formed under a law that does not provide a procedure for elections shall be conducted by the county elections official, as follows: (a) The election shall be held not less than 74 days nor more than 120 days following the call of the election by the governing body of the local agency. The call of the election shall specify whether the election shall be by mailed ballots or not. (b) Not less than 15 days nor more than 30 days before the election, the county elections official shall compile the index of voters eligible to vote in the election as of the 30th day preceding the election, establish the election board, precinct boards, and precincts, as needed, and mail out the ballots or sample ballots. (c) Except as provided herein, an election subject to this section shall be called, conducted, and canvassed as provided in the Elections Code for the calling, conducting, and canvassing of general elections. (d) The local agency shall reimburse the county in full for the services performed by the county clerk upon presentation of a bill to the local agency. (e) If the governing body of a local agency authorizes the use of mailed ballots pursuant to Section 2287, the procedure to be used in mailing and canvassing the ballots shall be the procedure prescribed in Chapter 1 (commencing with Section 3000) of Division 3 and in Chapter 1 (commencing with Section 15000) of Division 15 of the Elections Code for the mailing and canvassing of vote by mail ballots. However, a ballot shall be mailed to each qualified voter and an application for a ballot shall not be required. (Amended by Stats. 2007, Ch. 508, Sec. 122. Effective January 1, 2008.)
  69. 2289.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. )

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    Elections to approve maximum property tax rates should be consolidated with other elections when possible. If they are not consolidated, the governing body calling the election must explain why in the election resolution.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 6. Tax Rate Limit Elections [2285 - 2289] ( Article 6 added by Stats. 1973, Ch. 358. ) ## 2289. Whenever possible, elections to approve maximum property tax rates shall be consolidated with other elections. In the event that an election to approve a maximum property tax rate is not consolidated with another election, the governing body calling the election shall state, in the resolution calling the election, the reasons why such consolidation is impracticable. (Added by Stats. 1973, Ch. 358.)
  70. 229.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

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    Floating homes are assessed like real property.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 229. (a) A floating home shall be assessed in the same manner as real property. (b) For purposes of determining the valuation of floating homes pursuant to this section, the procedures set forth in Section 110.1 shall apply, except that: (1) The 1979 lien date shall be substituted for the 1975 lien date. (2) The 1979–80 assessment roll shall be substituted for the 1975–76 assessment roll. (3) The date January 1, 1983, shall be substituted for the dates June 30, 1980, and June 30, 1981. (c) “Floating home” means a floating structure which is all of the following: (1) It is designed and built to be used, or is modified to be used, as a stationary waterborne residential dwelling. (2) It has no mode of power of its own. (3) It is dependent for utilities upon a continuous utility linkage to a source originating on shore. (4) It has a permanent continuous hookup to a shoreside sewage system. “Floating home” does not include a vessel. This section does not affect existing law regarding residential use of tide and submerged lands. (Amended by Stats. 1985, Ch. 1467, Sec. 36. Effective October 2, 1985.)
  71. 2295.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    This section defines “governmental reorganization” for this article.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. ) ## 2295. As used in this article “governmental reorganization” means any formation of, annexation to, detachment from, consolidation of, dissolution of, or other territorial adjustment in the boundaries of, a local agency. “Governmental reorganization” includes those boundary adjustments of local agencies which are not subject to the provisions of Chapter 6.6 (commencing with Section 54773) of Part 1, Division 2, Title 5 or of Division 1 (commencing with Section 56000) of Title 6 of the Government Code, as well as those boundary adjustments of local agencies which are subject to such provisions of the Government Code. (Added by Stats. 1973, Ch. 358.)
  72. 2296.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    If a governmental reorganization changes a local agency’s boundaries, the maximum property tax rate is set under this article, except where Section 2263.2 applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. ) ## 2296. Except as provided in Section 2263.2, whenever a governmental reorganization occurs, the maximum property tax rate for any local agency whose boundaries are changed by such reorganization shall be determined as provided in this article. (Added by Stats. 1973, Ch. 358.)
  73. 2297.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    If a local agency changes boundaries or takes on a new program or service because of a governmental reorganization, its maximum property tax rate stays the same as the rate set before the reorganization.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. ) ## 2297. In the event that the boundaries of a local agency are altered by a governmental reorganization, or that a local agency becomes responsible, as a result of a governmental reorganization, for providing a program or service it has not heretofore provided, the maximum property tax rate for such an agency, after the reorganization has occurred, shall continue to be the maximum property tax rate which had been established, pursuant to the provisions of this article or of Article 4, for such agency prior to the reorganization. (Amended by Stats. 1974, Ch. 1085.)
  74. 2298.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    If a governmental reorganization makes it necessary or desirable for a local agency to exceed the maximum property tax rate in Section 2297, the agency’s governing body must call an election to set a new maximum rate.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. ) ## 2298. In the event that a governmental reorganization makes it necessary or desirable for a local agency to exceed the maximum property tax rate provided in Section 2297, the governing body of such agency shall call an election pursuant to the provisions of Article 6 to establish a new maximum property tax rate for such agency. Such an election may be consolidated with any election which may be called on the proposed governmental reorganization. (Added by Stats. 1973, Ch. 358.)
  75. 2299.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    If an election is needed to approve a governmental reorganization, the ballot pamphlet’s impartial analysis must state the maximum property tax rate that would apply if the reorganization is approved.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 7. Governmental Reorganization: Effect on Maximum Property Tax Rates [2295 - 2299] ( Article 7 added by Stats. 1973, Ch. 358. ) ## 2299. In the event than an election is required in order to approve and effectuate a governmental reorganization, the impartial analysis of the governmental reorganization prepared for the ballot pamphlet shall indicate the maximum property tax rate which will be applicable in the event the governmental reorganization is approved. (Added by Stats. 1973, Ch. 358.)
  76. 23.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. )

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    This section defines “assessee” as the person to whom property or a tax is assessed.

    ## Revenue and Taxation Code - RTC ## GENERAL PROVISIONS ( General Provisions enacted by Stats. 1939, Ch. 154. ) ## 23. “Assessee” means the person to whom property or a tax is assessed. (Enacted by Stats. 1939, Ch. 154.)
  77. 230.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Wooden vessels of historical significance, and personal property used in their operation, are exempt from taxation if the stated nonprofit, use, revenue, and affidavit conditions are met.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 230. (a) With regard to taxes that attach as a lien on or after January 1, 2001, wooden vessels of historical significance, and all personal property thereon used in their operation, are exempt from taxation. This exemption applies if all of the following conditions are satisfied: (1) The owner and operator is a nonprofit organization that has qualified for exemption under either Section 23701d of this code or under Section 501(c)(3) of the Internal Revenue Code. (2) No part of the net earnings of the owner inures to the benefit of any private shareholder or individual. (3) The vessel is used primarily as, or as a part of, a maritime museum that is regularly open to the public. (4) Income from fundraising use and use for charter activities does not exceed 40 percent of operating revenues of the vessel, and all net earnings are used to further the exempt activity of the museum. (b) When claiming an exemption pursuant to this section, a claiming organization shall give all information required and answer all questions in an affidavit, to be furnished by the assessor, that is signed by the claimant under penalty of perjury. The assessor may require other proof of the facts stated in the affidavit before allowing the exemption. A claimant for an exemption pursuant to this section is subject to Sections 255 and 260. (c) For purposes of this section, the following definitions apply: (1) “Wooden vessel of historical significance” means any wooden vessel that is a refurbished original, wooden inland waters vessel of 47 feet or larger, built in California during or prior to 1910, that continuously thereafter has remained in California waters, and that has been designated a California State Historical Landmark. (2) “Regularly open to the public” means that the museum was open to the public not less than 20 hours per week for not less than 35 weeks of the 12-month period immediately preceding the lien date for the year for which the exemption is claimed. (Added by Stats. 2000, Ch. 601, Sec. 2. Effective September 24, 2000.)
  78. 23001.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 1. General Provisions [23001 - 23004] ( Article 1 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This part may be cited as the Corporation Tax Law.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 1. General Provisions [23001 - 23004] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23001. This part is known and may be cited as the Corporation Tax Law. (Amended by Stats. 2001, Ch. 543, Sec. 22. Effective January 1, 2002.)
  79. 23002.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 1. General Provisions [23001 - 23004] ( Article 1 added by Stats. 1949, Ch. 557. )

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    This section says the provisions of this part apply unless another provision expressly says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 1. General Provisions [23001 - 23004] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23002. Except where otherwise expressly provided, all of the provisions of this part are applicable to the taxes imposed respectively under Chapter 2 (commencing with Section 23101), Chapter 2.5 (commencing with Section 23400), or Chapter 3 (commencing with Section 23501), or to the predecessor acts of this part, the Bank and Corporation Franchise Tax Act or the Corporation Income Tax Act, respectively. (Amended by Stats. 1993, Ch. 877, Sec. 31. Effective October 6, 1993.)
  80. 23003.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 1. General Provisions [23001 - 23004] ( Article 1 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section explains what numbered references mean when this part cites a division, part, chapter, or article without extra identification.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 1. General Provisions [23001 - 23004] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23003. A reference made in this part by number without further identification: (a) To a division, is a reference to that division of this code. (b) To a part, is a reference to that part in this division. (c) To a chapter, is a reference to that chapter in which it is made. (d) To an article, is a reference to that article in the chapter in which it is made. (Added by Stats. 1949, Ch. 557.)
  81. 23004.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 1. General Provisions [23001 - 23004] ( Article 1 added by Stats. 1949, Ch. 557. )

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    When this part refers to Franchise Tax Board regulations, the Franchise Tax Board is authorized to make rules and regulations on that subject matter.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 1. General Provisions [23001 - 23004] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23004. Whenever this part refers to “regulations of the Franchise Tax Board,” or makes similar reference, the reference authorizes the Franchise Tax Board to make rules and regulations as to the subject matter concerning which the reference is made. (Amended by Stats. 1951, Ch. 374.)
  82. 23030.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Chapter definitions govern how this part is interpreted, unless the context requires otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23030. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part. (Added by Stats. 1949, Ch. 557.)
  83. 23031.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section defines “Franchise Tax Board” and “Board.”

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23031. “Franchise Tax Board” means the Franchise Tax Board described in Part 10 (commencing with Section 15700) of Division 3 of Title 2 of the Government Code. “Board” means the State Board of Equalization. (Amended by Stats. 1984, Ch. 193, Sec. 116.)
  84. 23032.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    “Fiscal year” means an accounting period of 12 months or less ending on the last day of any month other than December.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23032. “Fiscal year” means an accounting period of twelve months or less ending on the last day of any month other than December. (Added by Stats. 1949, Ch. 557.)
  85. 23033.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    The terms “paid or incurred” and “paid or accrued” must be interpreted according to the accounting method used to compute net income.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23033. “Paid or incurred” and “paid or accrued” shall be construed according to the method of accounting upon the basis of which net income is computed. (Added by Stats. 1949, Ch. 557.)
  86. 23034.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    For this code section, “State” includes the District of Columbia and the U.S. possessions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23034. “State” includes the District of Columbia, and the possessions of the United States. (Amended by Stats. 1961, Ch. 485.)
  87. 23035.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section defines “Counsel for the Franchise Tax Board” as attorneys appointed or employed by the Franchise Tax Board who serve with the Attorney General’s approval and supervision.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23035. “Counsel for the Franchise Tax Board” means attorney or attorneys appointed or employed by the Franchise Tax Board and acting subject to the approval and under the supervision of the Attorney General. (Amended by Stats. 1951, Ch. 71.)
  88. 23036.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section defines what counts as “tax” for corporation tax purposes and sets rules for how credits are applied, limited, and carried over.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23036. (a) (1) The term “tax” includes any of the following: (A) The tax imposed under Chapter 2 (commencing with Section 23101). (B) The tax imposed under Chapter 3 (commencing with Section 23501). (C) The tax on unrelated business taxable income, imposed under Section 23731. (D) The tax on “S” corporations imposed under Section 23802. (2) The term “tax” does not include any amount imposed under paragraph (1) of subdivision (e) of Section 24667 or paragraph (2) of subdivision (f) of Section 24667. (b) For purposes of Article 5 (commencing with Section 18661) of Chapter 2, Article 3 (commencing with Section 19031) of Chapter 4, Article 6 (commencing with Section 19101) of Chapter 4, and Chapter 7 (commencing with Section 19501) of Part 10.2, and, for purposes of Sections 18601, 19001, and 19005, the term “tax” also includes all of the following: (1) The tax on limited partnerships, imposed under Section 17935, the tax on limited liability companies, imposed under Section 17941, and the tax on registered limited liability partnerships and foreign limited liability partnerships imposed under Section 17948. (2) The alternative minimum tax imposed under Chapter 2.5 (commencing with Section 23400). (3) The tax on built-in gains of “S” corporations, imposed under Section 23809. (4) The tax on excess passive investment income of “S” corporations, imposed under Section 23811. (c) Notwithstanding any other provision of this part, credits are allowed against the “tax” in the following order: (1) Credits that do not contain carryover provisions. (2) Credits that, when the credit exceeds the “tax,” allow the excess to be carried over to offset the “tax” in succeeding taxable years, except for those credits that are allowed to reduce the “tax” below the tentative minimum tax, as defined by Section 23455. The order of credits within this paragraph shall be determined by the Franchise Tax Board. (3) The minimum tax credit allowed by Section 23453. (4) Credits that are allowed to reduce the “tax” below the tentative minimum tax, as defined by Section 23455, except the credit described in paragraph (5). (5) For taxable years beginning on or after January 1, 2025, the credit allowed by Section 23698.1. (6) For taxable years beginning on or after January 1, 2027, the credit allowed by Section 23036.5. (7) Credits for taxes withheld under Section 18662. (d) Notwithstanding any other provision of this part, each of the following applies: (1) A credit may not reduce the “tax” below the tentative minimum tax (as defined by paragraph (1) of subdivision (a) of Section 23455), except the following credits: (A) The credit allowed by former Section 23601 (relating to solar energy). (B) The credit allowed by former Section 23601.4 (relating to solar energy). (C) The credit allowed by former Section 23601.5 (relating to solar energy). (D) The credit allowed by Section 23609 (relating to research expenditures). (E) The credit allowed by former Section 23609.5 (relating to clinical testing expenses). (F) The credit allowed by Section 23610.5 (relating to low-income housing). (G) The credit allowed by former Section 23612 (relating to sales and use tax credit). (H) The credit allowed by Section 23612.2 (relating to enterprise zone sales or use tax credit). (I) The credit allowed by former Section 23612.6 (relating to Los Angeles Revitalization Zone sales tax credit). (J) The credit allowed by former Section 23622 (relating to enterprise zone hiring credit). (K) The credit allowed by Section 23622.7 (relating to enterprise zone hiring credit). (L) The credit allowed by former Section 23623 (relating to program area hiring credit). (M) The credit allowed by former Section 23623.5 (relating to Los Angeles Revitalization Zone hiring credit). (N) The credit allowed by former Section 23625 (relating to Los Angeles Revitalization Zone hiring credit). (O) The credit allowed by Section 23633 (relating to targeted tax area sales or use tax credit). (P) The credit allowed by Section 23634 (relating to targeted tax area hiring credit). (Q) The credit allowed by former Section 23649 (relating to qualified property). (R) For taxable years beginning on or after January 1, 2011, the credit allowed by Section 23685 (relating to qualified motion pictures). (S) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23689 (relating to GO-Biz California Competes Credit). (T) For taxable years beginning on or after January 1, 2016, the credit allowed by Section 23695 (relating to qualified motion pictures). (U) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23686 (relating to the College Access Tax Credit Fund). (V) For taxable years beginning on or after January 1, 2017, the credit allowed by Section 23687 (relating to the College Access Tax Credit Fund). (W) For taxable years beginning on or after January 1, 2020, and before January 1, 2031, the credit allowed by Section 23636 (relating to the new advanced strategic aircraft credit). (X) For taxable years beginning on or after January 1, 2020, the credit allowed by Section 23698 (relating to the California Motion Picture and Television Production Credit). (Y) For taxable years beginning on or after January 1, 2025, the credit allowed by Section 23698.1 (relating to the California Motion Picture and Television Production Credit). (Z) For taxable years beginning on or after January 1, 2027, the credit allowed by Section 23036.5. (AA) For taxable years beginning on or after January 1, 2026, and before January 1, 2036, the credit allowed by Section 23640 (relating to eligible transmission projects). (2) A credit against the tax may not reduce the minimum franchise tax imposed under Chapter 2 (commencing with Section 23101). (e) Any credit which is partially or totally denied under subdivision (d) is allowed to be carried over to reduce the “tax” in the following year, and succeeding years if necessary, if the provisions relating to that credit include a provision to allow a carryover of the unused portion of that credit. (f) Unless otherwise provided, any remaining carryover from a credit that has been repealed or made inoperative is allowed to be carried over under the provisions of that section as it read immediately prior to being repealed or becoming inoperative. (g) Unless otherwise provided, if two or more taxpayers share in costs that would be eligible for a tax credit allowed under this part, each taxpayer is eligible to receive the tax credit in proportion to their respective share of the costs paid or incurred. (h) Unless otherwise provided, in the case of an “S” corporation, any credit allowed by this part is computed at the “S” corporation level, and any limitation on the expenses qualifying for the credit or limitation upon the amount of the credit applies to the “S” corporation and to each shareholder. (i) (1) With respect to any taxpayer that directly or indirectly owns an interest in a business entity that is disregarded for tax purposes pursuant to Section 23038 and any regulations thereunder, the amount of any credit or credit carryforward allowable for any taxable year attributable to the disregarded business entity is limited in accordance with paragraphs (2) and (3). (2) The amount of any credit otherwise allowed under this part, including any credit carryover from prior years, that may be applied to reduce the taxpayer’s “tax,” as defined in subdivision (a), for the taxable year is limited to an amount equal to the excess of the taxpayer’s regular tax (as defined in Section 23455), determined by including income attributable to the disregarded business entity that generated the credit or credit carryover, over the taxpayer’s regular tax (as defined in Section 23455), determined by excluding the income attributable to that disregarded business entity. A credit is not allowed if the taxpayer’s regular tax (as defined in Section 23455), determined by including the income attributable to the disregarded business entity is less than the taxpayer’s regular tax (as defined in Section 23455), determined by excluding the income attributable to the disregarded business entity. (3) If the amount of a credit allowed pursuant to the section establishing the credit exceeds the amount allowable under this subdivision in any taxable year, the excess amount may be carried over to subsequent taxable years pursuant to subdivisions (d), (e), and (f). (j) (1) Unless otherwise specifically provided, in the case of a taxpayer that is a partner or shareholder of an eligible pass-thru entity described in paragraph (2), any credit passed through to the taxpayer in the taxpayer’s first taxable year beginning on or after the date the credit is no longer operative may be claimed by the taxpayer in that taxable year, notwithstanding the repeal of the statute authorizing the credit prior to the close of that taxable year. (2) For purposes of this subdivision, “eligible pass-thru entity” means any partnership or “S” corporation that files its return on a fiscal year basis pursuant to Section 18566, and that is entitled to a credit pursuant to this part for the taxable year that begins during the last year a credit is operative. (3) This subdivision applies to credits that become inoperative on or after the operative date of the act adding this subdivision. (k) The amendments made to this section by Chapter 56 of the Statutes of 2023 shall apply as follows: (1) The amendments to subdivision (c) shall be operative for taxable years beginning on or after January 1, 2025. (2) The amendments to subparagraph (X) of paragraph (1) of subdivision (d) shall be operative for taxable years beginning on or after January 1, 2020. (3) The amendments to subparagraph (Y) of paragraph (1) of subdivision (d) shall be operative for taxable years beginning on or after January 1, 2025. (Amended by Stats. 2025, Ch. 119, Sec. 65. (SB 254) Effective September 19, 2025.)
  89. 23036.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    A natural heritage tax credit may reduce tax below tentative minimum tax, but only after the Section 23453 credit is allowed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23036.1. Notwithstanding Section 23036 or any other provision in this part to the contrary, the credit allowed by Section 23630 (relating to natural heritage) may reduce the “tax” below the tentative minimum tax, as defined by paragraph (1) of subdivision (a) of Section 23455, but only after allowance of the credit allowed by Section 23453. (Added by Stats. 2000, Ch. 113, Sec. 4. Effective July 10, 2000.)
  90. 23036.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    For certain taxable years, this section limits credits so they cannot reduce tax below 50% of the pre-credit tax amount, with some exceptions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23036.2. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, for each taxable year beginning on or after January 1, 2008, and before January 1, 2010, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the “tax” (as defined in Section 23036) below the applicable amount. (b) This section shall not apply to the credit allowed by Section 23623 (relating to full time employment hiring credit). (c) For purposes of this section, the “applicable amount” shall be equal to 50 percent of the “tax” (as defined in Section 23036) before application of any credits. (d) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part. (e) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit (or any portion thereof) was not allowed. (f) The provisions of this section shall not apply to a taxpayer with income subject to tax under this part of less than $500,000 for the taxable year. (Amended by Stats. 2009, 3rd Ex. Sess., Ch. 17, Sec. 6. Effective February 20, 2009.)
  91. 23036.3.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section caps certain corporation tax credits at $5 million for specified taxpayers and taxable years, with exceptions for certain elections and low-income housing credit.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23036.3. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604) including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the “tax,” as defined in Section 23036, by more than five million dollars ($5,000,000). (b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2020, and before January 1, 2022, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of “tax,” as defined in Section 23036, of all members of the combined report by more than five-million-dollars ($5,000,000). (c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 23685, 23695, or 23698 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five million dollar ($5,000,000) limitation set forth in subdivision (a) or (b). (d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing). (e) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part. (f) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed. (g) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (h) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2022. (Amended by Stats. 2022, Ch. 3, Sec. 16. (SB 113) Effective February 9, 2022.)
  92. 23036.4.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section limits how much certain tax credits can reduce tax to $5 million per taxable year, with exceptions for specified elections and credits.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23036.4. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2024, and before January 1, 2030, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the “tax,” as defined in Section 23036, by more than five million dollars ($5,000,000). (b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2024, and before January 1, 2030, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23604), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of “tax,” as defined in Section 23036, of all members of the combined report by more than five million dollars ($5,000,000). (c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, or 23698.1 against qualified sales and use tax, as defined in Section 6902.5, are not included in the five million dollar ($5,000,000) limitation set forth in subdivision (a) or (b). (d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing). (e) Any annual refundable credit amount included in an election pursuant to Section 23036.5 is not included in the limitation set forth in subdivision (a) or (b). (f) Notwithstanding the operative date in subdivision (a), for taxable years beginning on or after January 1, 2027, if an election is made pursuant to subdivision (k) of Section 23698.1, both the credit allowed against the “tax” under clause (i) of subparagraph (A) of paragraph (3) of subdivision (k) of Section 23698.1 and the annual refundable amount calculated under subdivision (k) of Section 23698.1 shall not be included in the limitation set forth in subdivisions (a) and (b). (g) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part. (h) The carryover period for any credit that is not allowed due to the application of this section shall be increased by the number of taxable years the credit or any portion thereof was not allowed. (i) For taxpayers that make the election under subdivision (k) of Section 23698.1, any amount of refundable credits pursuant to that subdivision over the five-million-dollar ($5,000,000) limitation under this section shall be allowed in the first taxable year beginning on or after January 1, 2027. (j) If a taxpayer makes the election under both Section 23036.5 and subdivision (k) of Section 23698.1 with respect to the credit amount under Section 23698.1, the total amount of credit allowed pursuant to both elections shall not exceed the credit amount allowed under subdivision (a) of Section 23698.1. (k) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (l) The amendments made to this section by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2027. (Amended by Stats. 2026, Ch. 23, Sec. 30. (SB 122) Effective June 29, 2026. Operative as prescribed by its own provisions.)
  93. 23036.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    Taxpayers may elect a refundable credit for taxable years 2024 through 2029, and the credit is then applied, with excess amounts refunded or credited as specified.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23036.5. (a) (1) For taxable years beginning on or after January 1, 2024, and before January 1, 2030, a taxpayer may make an election to receive an annual refundable credit amount of qualified credits for each taxable year to be allowed pursuant to paragraph (2). (2) In each taxable year of the refundable period, the annual refundable credit amount shall be allowed as a credit against the “tax” computed under this part for the taxable year, and the excess, if any, shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account to the taxpayer. (b) For purposes of this section, the following definitions shall apply: (1) “Annual refundable credit amount” means 20 percent of the credit amount for the taxable year. (2) (A) “Credit amount” means the amount of the qualified credits that would have otherwise been available to reduce net tax in the taxable year of the election but for the limitation under Section 23036.4. (B) In the case of a pass-thru entity, the “credit amount” refers to the pro rata share or distributive share of the credit passed through to the partner or shareholder of the qualified taxpayer. For purposes of this subparagraph, the term “pass-thru entity” means any partnership, “S” corporation, or limited liability company treated as a partnership. (C) In the case of an assigned credit, the “credit amount” refers to the credit amount that was assigned to the taxpayer. (D) In the case of taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, the “credit amount” refers to the credit amount of all members of the combined report. (3) “Qualified credits” means the credits subject to the limitation under Section 23036.4. (4) “Refundable period” means the first five consecutive taxable years beginning the third taxable year after the taxable year that the taxpayer makes an election under this section. (c) No portion of the annual refundable credit amount can be assigned to another taxpayer. (d) The following shall apply for purposes of the election pursuant to this section: (1) The taxpayer may make an election for each taxable year beginning on or after January 1, 2024, and before January 1, 2030. (2) Each election shall be irrevocable and shall be made on an original, timely filed return required under Part 10.2 (commencing with Section 18401) for the taxable year that the election is made in the form and manner as prescribed by the Franchise Tax Board. (e) (1) Any adjustment of an annual refundable credit amount shall be treated as a mathematical error appearing on the return. This includes, but is not limited to, all of the following: (A) A valid election as required under this section was not made. (B) The Franchise Tax Board determines that credit amount overstatements in any taxable year resulted in an overstatement in any carryover amount or an overstatement of any refundable credit amount. (C) The Franchise Tax Board determines that the credit amount was overstated as a result of any subsequent adjustment in the amount of net tax, including, but not limited to, an audit adjustment or claim for refund. (2) Any amount of tax due resulting from such disallowance may be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. (f) (1) The Franchise Tax Board may prescribe regulations necessary or appropriate to carry out the purposes of this section. (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section. (g) This section shall remain in effect only until December 1, 2037, and as of that date is repealed. (Amended by Stats. 2026, Ch. 23, Sec. 31. (SB 122) Effective June 29, 2026. Repealed as of December 1, 2037, by its own provisions.)
  94. 23036.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section limits how much certain corporation tax credits can reduce tax, starting for taxable years on or after January 1, 2030.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23036.6. (a) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers not required to be included in a combined report under Section 25101 or 25110, or taxpayers not authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2030, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23608), including the carryover of any credit under a former provision of that chapter, for the taxable year shall not reduce the “tax,” as defined in Section 23036, by more than 70 percent or five million dollars ($5,000,000), whichever is greater. (b) Notwithstanding any provision of this part or Part 10.2 (commencing with Section 18401) to the contrary, except as provided in subdivision (d), for taxpayers required to be included in a combined report under Section 25101 or 25110, or taxpayers authorized to be included in a combined report under Section 25101.15, for each taxable year beginning on or after January 1, 2030, the total of all credits otherwise allowable under any provision of Chapter 3.5 (commencing with Section 23608), including the carryover of any credit under a former provision of that chapter, by all members of the combined report shall not reduce the aggregate amount of “tax,” as defined in Section 23036, of all members of the combined report by more than 70 percent or five million dollars ($5,000,000), whichever is greater. (c) Any amounts included in an election pursuant to Section 6902.5, relating to an irrevocable election to apply credit amounts under Section 17053.85, 17053.95, 17053.98, 17053.98.1, 23685, 23695, 23698, or 23698.1 against qualified sales and use tax, as defined in Section 6902.5, are not included in the limitation set forth in subdivision (a) or (b). (d) The limitation under subdivision (a) or (b) shall not apply to the credit allowed by Section 23610.5 (relating to credit for low-income housing). (e) Any annual refundable credit amount included in an election pursuant to Section 23036.5 is not included in the limitation set forth in subdivision (a) or (b). (f) If an election is made pursuant to subdivision (k) of Section 23698.1, both the credit allowed against the “tax” under clause (i) of subparagraph (A) of paragraph (3) of subdivision (k) of Section 23698.1 and the annual refundable amount calculated under subdivision (k) of Section 23698.1 shall not be included in the limitation set forth in subdivisions (a) and (b) of this section. (g) The amount of any credit otherwise allowable for the taxable year under Section 23036 that is not allowed due to the application of this section shall remain a credit carryover amount under this part. (h) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (Added by Stats. 2026, Ch. 23, Sec. 32. (SB 122) Effective June 29, 2026.)
  95. 23037.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    “Taxpayer” means a person subject to the corporation tax chapters named in this section.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23037. “Taxpayer” means any person subject to the tax imposed under Chapter 2 (commencing with Section 23101), Chapter 2.5 (commencing with Section 23400), or Chapter 3 (commencing with Section 23501). (Amended by Stats. 1997, Ch. 605, Sec. 46. Effective January 1, 1998.)
  96. 23038.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “corporation” for California tax purposes and lists several entities it includes, with exceptions and special rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23038. (a) “Corporation” includes every corporation except corporations expressly exempt from the tax by this part or the Constitution of this state. (b) (1) For the purposes of the tax imposed under Chapter 3 (commencing with Section 23501), “corporation” also includes associations (including nonprofit associations that perform services, borrow money or own property), other than banking associations, and Massachusetts or business trusts. For the purposes of this part, a Massachusetts or business trust includes every business organization consisting essentially of an arrangement whereby property is conveyed to one, or more than one, trustee for purposes other than the mere conservation of assets, collecting and disbursing of fixed or periodic income, or the securing of an obligation. This paragraph shall apply for income or taxable years beginning before January 1, 1997. (2) (A) For the purposes of the tax imposed under Chapter 3 (commencing with Section 23501), “corporation” also includes associations (other than banking associations but including nonprofit associations that perform services, borrow money or own property), business trusts, and other business entities classified as associations. (B) (i) For purposes of the preceding subparagraph, the classification of a business entity (including a business trust) as an association taxable as a corporation (under Chapter 3 (commencing with Section 23501)) shall be determined under regulations of the Franchise Tax Board, that shall be consistent with federal regulations as in effect May 1, 2014, that classify a business entity as a partnership or an association taxable as a corporation or disregard the separate existence of certain business entities for tax purposes. (ii) The classification of an eligible business entity as a partnership or an association taxable as a corporation for purposes of this part, Part 10 (commencing with Section 17001), and Part 10.2 (commencing with Section 18401) shall be the same as the classification of the entity for federal tax purposes. (iii) If the separate existence of an eligible business entity is disregarded for federal tax purposes, the separate existence of that business entity shall be disregarded for purposes of this part, Part 10 (commencing with Section 17001), and Part 10.2 (commencing with Section 18401), other than Section 17941 (relating to the tax of a limited liability company), Section 17942 (relating to the fee of a limited liability company), Section 18633.5 (relating to the return of a limited liability company), and Sections 17039 and 23036 (relating to tax credits). (C) Notwithstanding clauses (ii) and (iii) of subparagraph (B), an eligible business entity that, for any income year beginning within the 60-month period preceding January 1, 1997, was properly classified as an association taxable as a corporation for California tax purposes shall continue to be an association taxable as a corporation until it elects, under regulations issued pursuant to subparagraph (B), to be classified or disregarded the same as the entity is classified or disregarded for federal tax purposes. The preceding sentence shall not apply to any entity that, during the 60-month period preceding January 1, 1997, was not doing business in this state, did not derive income from sources within this state, and had no owner who was a resident of this state. (D) This paragraph shall apply for income or taxable years beginning on and after January 1, 1997. (c) In addition to the above, for purposes of the tax imposed under Chapter 2 (commencing with Section 23101) for the purpose of exercising its franchise within this state, “corporation” also includes any limited liability company that is classified as an association for California tax purposes. (d) “Corporation” includes any “corporation” operated by any receiver, liquidator, referee, trustee or other officers or agents appointed by any court, or an assignee for the benefit of creditors. “Corporation” includes any professional corporation incorporated pursuant to Part 4 (commencing with Section 13400) of Division 3 of Title 1 of the Corporations Code. (e) Notwithstanding the above, “corporation” also includes a trust organized and operated exclusively for purposes contained in Section 23701d. (f) No provision of the act adding this subdivision shall be construed to alter existing law with respect to the civil liability of a limited liability company or its members. (Amended by Stats. 2014, Ch. 325, Sec. 2. (AB 1143) Effective September 15, 2014.)
  97. 23038.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section generally applies IRC Section 7704 to publicly traded partnerships, but creates special rules for an electing 1987 partnership and imposes a 1% tax on its gross income.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23038.5. (a) Section 7704 of the Internal Revenue Code, relating to certain publicly traded partnerships treated as corporations, shall apply, except as otherwise provided. (b) (1) Section 7704(a) of the Internal Revenue Code shall not apply to an electing 1987 partnership. (2) For purposes of this subdivision, the term “electing 1987 partnership” means any publicly traded partnership if all of the following apply: (A) The partnership is an existing partnership (as defined in Section 10211(c)(2) of the Revenue Reconciliation Act of 1987). (B) Section 7704(a) of the Internal Revenue Code has not applied (and without regard to Section 7704(c)(1) of the Internal Revenue Code would not have applied) to that partnership for all prior taxable years beginning after December 31, 1987, and before January 1, 1998. (C) (i) The partnership has made the election under Section 7704(g)(2)(C) of the Internal Revenue Code for federal tax purposes. (ii) The election for federal tax purposes described in clause (i) shall be treated as a binding election and a separate election for state tax purposes shall not be allowed under paragraph (3) of subdivision (e) of Section 23051.5. (iii) The election for federal tax purposes described in clause (i) shall be treated as a binding consent to the application of the tax imposed under paragraph (3) and a separate election for state tax purposes shall not be allowed under paragraph (3) of subdivision (e) of Section 23051.5. (D) A partnership that, but for this subparagraph, would be treated as an electing 1987 partnership shall cease to be so treated (and the election under subparagraph (C) shall cease to be in effect) as of the first day after December 31, 1997, that the partnership is no longer treated as an electing 1987 partnership for federal tax purposes (and the election under Section 7704(g)(2)(C) of the Internal Revenue Code ceases to be in effect for federal tax purposes). (3) (A) There is hereby imposed for each taxable year beginning on or after January 1, 1998, on the gross income of each electing 1987 partnership a tax equal to 1 percent of that partnership’s gross income from all sources reportable to this state, taking into account Section 25101 and any election under Section 25110, attributable to the active conduct of trades and businesses by the partnership. (B) The tax shall be due and payable on the date the return of the partnership is required to be filed under Section 18633 and shall be paid by the partnership. The tax shall be paid, collected, and refunded in the same manner as other taxes imposed by this part on corporations, and shall be subject to interest and applicable penalties. Section 19147 shall be applied to the partnership with respect to the tax imposed by this paragraph in the same manner as if references in that section to the taxable income were references to gross income referred to in subparagraph (A). (C) For purposes of this paragraph, if a partnership is a partner in another partnership, the gross income referred to in subparagraph (A) shall include the partnership’s distributive share of the gross income of the other partnership from all sources reportable to this state, taking into account Section 25101 and any election under Section 25110, attributable to the active conduct of trades and businesses of that other partnership. A similar rule shall apply in the case of lower-tiered partnerships. (D) The tax imposed by this paragraph shall be treated as imposed by this part other than for purposes of determining the amount of any credit allowable under this part. (4) The provisions of this subdivision shall apply to the taxable year for which the election described in clause (i) of subparagraph (C) of paragraph (2) is made for federal purposes and all subsequent taxable years unless revoked by the partnership for federal purposes. Any revocation made for federal purposes shall be treated as a binding revocation under this part, but, once so revoked, may not be reinstated and a separate revocation for state purposes shall not be allowed under paragraph (3) of subdivision (e) of Section 23051.5. (c) The amendment made to this section by the act adding this subdivision shall apply to taxable years beginning on or after January 1, 1998. (Amended by Stats. 2002, Ch. 35, Sec. 34. Effective May 8, 2002.)
  98. 23039.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “bank” to include national banking associations and certain banks run by court-appointed or creditor-related officers.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23039. “Bank” includes national banking associations. “Bank” includes any “bank” operated by any receiver, liquidator, referee, trustee or other officers or agents appointed by any court, or an assignee for the benefit of creditors. (Amended by Stats. 1953, Ch. 134.)
  99. 23040.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Income derived from sources within this State includes income from property located here and from activities carried on here, even if the activities are in intrastate, interstate, or foreign commerce.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23040. Income derived from or attributable to sources within this State includes income from tangible or intangible property located or having a situs in this State and income from any activities carried on in this State, regardless of whether carried on in intrastate, interstate or foreign commerce. (Added by Stats. 1949, Ch. 557.)
  100. 23040.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section excludes certain investment-related income from California-source income for qualifying corporations and explains when those exclusions do not apply.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23040.1. (a) Notwithstanding Sections 23040 and 25101, income derived from or attributable to sources within this state shall not include: (1) The distributive share of interest, dividends, and gains from the sale or exchange of qualifying investment securities derived by a corporation that is a partner in a partnership that qualifies as an investment partnership under Section 17955, whether or not the partnership has a usual place of business in this state, if the income from the partnership is the corporation’s only income derived from or attributable to sources within this state. (2) Income, gain, or loss from stocks or securities received by an alien corporation whose sole activities in this state involve trading in those stocks or securities for the corporation’s own account within the meaning of Section 864(b)(2)(A)(ii) of the Internal Revenue Code, whether the trading is done by the corporation or its employees or through a resident broker, commission agent, custodian, or other agent, and whether or not any employee or agent has discretionary authority to make decisions in effecting the transactions. This paragraph does not apply to a dealer in stocks or securities. (b) (1) Paragraph (1) of subdivision (a) shall not apply to a corporation that participates in the management of the investment activities of the investment partnership or that is engaged in a unitary business with another corporation or partnership that participates in the management of the investment activities of the partnership or has income derived from or attributable to sources within this state other than income described in paragraph (1) of subdivision (a). (2) Paragraph (2) of subdivision (a) does not apply to an alien corporation that itself has, or that is engaged in a unitary business with another corporation that has, income derived from or attributable to sources within this state other than income described in paragraph (2) of subdivision (a). (c) An alien corporation (other than a dealer in stocks or securities) trading in stocks or securities for its own account, as described in paragraph (2) of subdivision (a), is not doing business in this state for purposes of Chapter 2 of this part. (d) For purposes of this section: (1) “Alien corporation” means a corporation organized under the laws of a country, or any political subdivision thereof, other than the United States. (2) “Dealer in stocks or securities” means a dealer in stocks or securities for purposes of Section 864(b)(2)(A)(ii) of the Internal Revenue Code. (3) “Investment partnership” means a partnership that meets both of the following requirements: (A) No less than 90 percent of the partnership’s cost of its total assets consist of qualifying investment securities, deposits at banks or other financial institutions, and office space and equipment reasonably necessary to carry on its activities as an investment partnership. (B) No less than 90 percent of its gross income consists of interest, dividends, and gains from the sale or exchange of qualifying investment securities. (4) (A) “Qualifying investment securities” include all of the following: (i) Common stock, including preferred or debt securities convertible into common stock, and preferred stock. (ii) Bonds, debentures, and other debt securities. (iii) Foreign and domestic currency deposits or equivalents and securities convertible into foreign securities. (iv) Mortgage- or asset-backed securities secured by federal, state, or local governmental agencies. (v) Repurchase agreements and loan participations. (vi) Foreign currency exchange contracts and forward and futures contracts on foreign currencies. (vii) Stock and bond index securities and futures contracts, and other similar financial securities and futures contracts on those securities. (viii) Options for the purchase or sale of any of the securities, currencies, contracts, or financial instruments described in clauses (i) to (vii), inclusive. (ix) Regulated futures contracts. (B) “Qualifying investment securities” does not include an interest in a partnership unless that partnership is itself an investment partnership. (5) “Stocks or securities” has the same meaning as applies to that phrase as used in Section 864(b)(2)(A)(ii) of the Internal Revenue Code. (e) The amendments made to this section by the act adding this subdivision shall apply to taxable years beginning on or after January 1, 1999. (Amended by Stats. 2001, Ch. 543, Sec. 23. Effective January 1, 2002.)
  101. 23041.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “taxable year” for corporation tax purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23041. “Taxable year” means: (a) For the purposes of the tax imposed under Chapter 2 (commencing with Section 23101), the calendar year, or the fiscal year for which the tax is payable. (b) For the purposes of the tax imposed under Chapter 1.5 (commencing with Section 23081), Chapter 3 (commencing with Section 23501), or Chapter 4 (commencing with Section 23701), the calendar year or the fiscal year upon the basis of which the net income is computed. (c) For purposes of the tax imposed under Chapter 2.5 (commencing with Section 23400), (1) in the case of a taxpayer subject to the tax imposed under Chapter 2 (commencing with Section 23101), the calendar year or the fiscal year for which the tax is payable and (2) in the case of a taxpayer subject to the tax imposed under Chapter 3 (commencing with Section 23501) or Chapter 4 (commencing with Section 23701), the calendar or fiscal year upon the basis of which the net income is computed. (d) For the purpose of the taxes imposed under this part, a period of 12 months or less. (e) When referring to a calendar or fiscal year beginning before January 1, 2000, upon the basis of which the net income is computed, the term “taxable year” shall mean “income year,” as defined in subdivision (a) of Section 23042. (Amended by Stats. 2003, Ch. 633, Sec. 6. Effective September 30, 2003.)
  102. 23042.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “income year” for corporation tax provisions, with different meanings depending on the chapter and taxable year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23042. (a) For taxable years beginning prior to January 1, 2000, and the first taxable year beginning on or after January 1, 2000, “income year” means: (1) For the purposes of the tax imposed under Chapter 2 (commencing with Section 23101), the calendar year or the fiscal year upon the basis of which the net income is computed. “Income year” means, for the purposes of the tax imposed under Chapter 2 (commencing with Section 23101), in the case of a return made for a fractional part of a year, the period for which such return is made. (2) For the purposes of the tax imposed under Chapter 1.5 (commencing with Section 23081), Chapter 3 (commencing with Section 23501), or Chapter 4 (commencing with Section 23701), wherever “income year” is used throughout this part, it means “taxable year” as that term is defined in Section 23041 for the purposes of the tax imposed under Chapter 1.5 (commencing with Section 23081), Chapter 3 (commencing with Section 23501), or Chapter 4 (commencing with Section 23701). (3) For purposes of the tax imposed under Chapter 2.5 (commencing with Section 23400), the same as defined in subdivision (a) with respect to a taxpayer subject to the tax imposed under Chapter 2 (commencing with Section 23101) and the same as defined in subdivision (b) with respect to a taxpayer subject to the tax imposed under Chapter 3 (commencing with Section 23501) or Chapter 4 (commencing with Section 23701). (b) For taxable years (other than the first taxable year) beginning on or after January 1, 2000, the term “income year” shall have the same meaning as the term “taxable year” (as defined by Section 23041). (Amended by Stats. 2000, Ch. 862, Sec. 42. Effective January 1, 2001.)
  103. 23043.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    For corporation tax purposes, the gain or loss on property is determined under Internal Revenue Code Section 7701(g), unless another provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23043.5. For purposes of this part, in determining the amount of gain or loss (or deemed gain or loss) with respect to any property, Section 7701(g) of the Internal Revenue Code, relating to nonrecourse indebtedness, applies, except as otherwise provided. (Amended by Stats. 2003, Ch. 185, Sec. 34. Effective January 1, 2004.)
  104. 23044.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “international banking facility.”

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23044. “International banking facility” means a facility represented by a set of asset and liability accounts segregated on the books and records of a commercial bank, the principal office of which is located in this state, and which is incorporated and doing business under the laws of the United States or of this state, a United States branch or agency of a foreign bank, an Edge corporation organized under Section 25 (a) of the Federal Reserve Act, 12 United States Code 611-631, or an Agreement corporation having an agreement or undertaking with the Board of Governors of the Federal Reserve System under Section 25 of the Federal Reserve Act, 12 United States Code 601-604 (a), that includes only international banking facility time deposits (as defined in subsection (a)(2) of Section 204.8 of Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the Federal Reserve System), and international banking facility extensions of credit (as defined in subsection (a)(3) of Section 204.8 of Regulation D). (Added by Stats. 1981, Ch. 825, Sec. 2. Effective September 26, 1981. Applicable to income years ending on or after December 3, 1981, by Sec. 6 of Ch. 825.)
  105. 23045.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section says certain Internal Revenue Code definitions apply for this part, but there is an exception where otherwise provided. It also says the 2006 amendment to IRC Section 7702B does not apply.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23045. For purposes of this part: (a) Section 7702 of the Internal Revenue Code, relating to life insurance contract defined, shall apply, except as otherwise provided. (b) Section 7702A of the Internal Revenue Code, relating to modified endowment contract defined, shall apply, except as otherwise provided. (c) (1) Section 7702B of the Internal Revenue Code, relating to treatment of qualified long-term care insurance, shall apply, except as otherwise provided. (2) The amendments made by Section 844 of the Pension Protection Act of 2006 (Public Law 109-280) to Section 7702B of the Internal Revenue Code shall not apply. (Amended by Stats. 2010, Ch. 14, Sec. 55. (SB 401) Effective January 1, 2011.)
  106. 23045.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “substituted basis property” for this part by linking it to the meaning in Internal Revenue Code Section 7701(a)(42).

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23045.1. For purposes of this part, the term “substituted basis property” has the same meaning given that term by Section 7701(a)(42) of the Internal Revenue Code. (Added by Stats. 1987, Ch. 1139, Sec. 8. Effective September 25, 1987. Applicable to income years beginning on or after January 1, 1987, by Sec. 241 of Ch. 1139.)
  107. 23045.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “transferred basis property” for this part by referring to Internal Revenue Code Section 7701(a)(43), with one substitution.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23045.2. For purposes of this part, the term “transferred basis property” has the same meaning given that term by Section 7701(a)(43) of the Internal Revenue Code, except that reference to Subtitle A shall instead be a reference to this part. (Added by Stats. 1987, Ch. 1139, Sec. 9. Effective September 25, 1987. Applicable to income years beginning on or after January 1, 1987, by Sec. 241 of Ch. 1139.)
  108. 23045.3.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    For this part, “exchanged basis property” means what Section 7701(a)(44) of the Internal Revenue Code means, with one substitution: any reference to Subtitle A is treated as a reference to this part.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23045.3. For purposes of this part, the term “exchanged basis property” has the same meaning given that term by Section 7701(a)(44) of the Internal Revenue Code, except that reference to Subtitle A shall instead be a reference to this part. (Added by Stats. 1987, Ch. 1139, Sec. 10. Effective September 25, 1987. Applicable to income years beginning on or after January 1, 1987, by Sec. 241 of Ch. 1139.)
  109. 23045.4.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “nonrecognition transaction” for this part by linking it to the Internal Revenue Code definition, with one substitution for Subtitle A.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23045.4. For purposes of this part, the term “nonrecognition transaction” has the same meaning given that term by Section 7701(a)(45) of the Internal Revenue Code, except that reference to Subtitle A shall instead be a reference to this part. (Added by Stats. 1987, Ch. 1139, Sec. 11. Effective September 25, 1987. Applicable to income years beginning on or after January 1, 1987, by Sec. 241 of Ch. 1139.)
  110. 23045.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “domestic building and loan association” for this part by linking it to the meaning in the Internal Revenue Code.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23045.5. For purposes of this part, the term “domestic building and loan association” has the same meaning given that term by Section 7701(a)(19) of the Internal Revenue Code. (Added by Stats. 1987, Ch. 1139, Sec. 12. Effective September 25, 1987. Applicable to income years beginning on or after January 1, 1987, by Sec. 241 of Ch. 1139.)
  111. 23045.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    For this part, employee status is determined under the referenced Labor Code article, and a federal tax code definition of “employee” also applies, unless another rule says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23045.6. (a) For the purposes of this part, except as otherwise provided, the determination of whether an individual is an employee shall be governed by of Article 1.5 (commencing with Section 2775) of Chapter 2 of Division 3 of the Labor Code. (b) Section 7701(a)(20) of the Internal Revenue Code, relating to the definition of “employee,” shall apply, except as otherwise provided. (Amended by Stats. 2020, Ch. 38, Sec. 6. (AB 2257) Effective September 4, 2020.)
  112. 23046.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section says Internal Revenue Code section 7701(a)(46) applies, unless another provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23046. Section 7701(a)(46) of the Internal Revenue Code, relating to determination of whether there is a collective bargaining agreement, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 34. Effective October 6, 1993.)
  113. 23046.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section makes Internal Revenue Code section 7701(n) apply here, except where otherwise provided, and changes the wording so “this part” replaces “this title.”

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23046.5. (a) Section 7701(n) of the Internal Revenue Code, relating to convention or association of churches, shall apply, except as otherwise provided. (b) The phrase “this part” shall be substituted for “this title” in Section 7701(n) of the Internal Revenue Code. (Added by Stats. 2010, Ch. 14, Sec. 56. (SB 401) Effective January 1, 2011.)
  114. 23047.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Section 7701(e) of the Internal Revenue Code applies to certain service contracts, unless another provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23047. Section 7701(e) of the Internal Revenue Code, relating to treatment of certain contracts for providing services, etc., shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 35. Effective October 6, 1993.)
  115. 23048.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Taxable mortgage pools must be defined and treated under Internal Revenue Code section 7701(i), unless this section says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23048. Taxable mortgage pools shall be defined and treated in accordance with Section 7701(i) of the Internal Revenue Code, except as otherwise provided. (Added by Stats. 1987, Ch. 1139, Sec. 13. Effective September 25, 1987. Applicable to income years beginning on or after January 1, 1987, by Sec. 241 of Ch. 1139.)
  116. 23049.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Section 7701(h) of the Internal Revenue Code applies to motor vehicle operating leases, unless another provision says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23049. Section 7701(h) of the Internal Revenue Code, relating to motor vehicle operating leases, shall apply, except as otherwise provided. (Amended by Stats. 1993, Ch. 877, Sec. 36. Effective October 6, 1993.)
  117. 23049.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Section 64 of the Internal Revenue Code, about ordinary income, applies here.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23049.1. Section 64 of the Internal Revenue Code, relating to the definition of ordinary income, shall apply. (Added by Stats. 1991, Ch. 117, Sec. 43. Effective July 16, 1991.)
  118. 23049.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Section 65 of the Internal Revenue Code on the definition of ordinary loss applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23049.2. Section 65 of the Internal Revenue Code, relating to the definition of ordinary loss, shall apply. (Added by Stats. 1991, Ch. 117, Sec. 44. Effective July 16, 1991.)
  119. 23050.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section says that definitions other than general definitions are found in the chapter they apply to.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23050. Definitions, other than general definitions, are set forth in the chapter to which specifically applicable. (Added by Stats. 1949, Ch. 557.)
  120. 23051.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section defines “Bank and Corporation Tax Law of 1954.”

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23051. The term “Bank and Corporation Tax Law of 1954,” means Part 11 of Division 2 of the Revenue and Taxation Code as enacted by Statutes 1949, Chapter 557, and as subsequently amended, including all amendments enacted prior to December 31, 1954. (Added by Stats. 1955, Ch. 938.)
  121. 23051.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section explains how California’s corporation tax law uses federal tax law references, and it sets rules for elections, filings, and some excluded federal provisions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23051.5. (a) (1) Unless otherwise specifically provided, the terms “Internal Revenue Code,” “Internal Revenue Code of 1954,” or “Internal Revenue Code of 1986,” for purposes of this part, mean Title 26 of the United States Code, including all amendments thereto, as enacted on the specified date for the applicable taxable year as defined in paragraph (1) of subdivision (a) of Section 17024.5. (2) (A) Unless otherwise specifically provided, for federal laws enacted on or after January 1, 1987, and on or before the specified date for the taxable year, uncodified provisions that relate to provisions of the Internal Revenue Code that are incorporated for purposes of this part, shall be applicable to the same taxable years as the incorporated provisions. (B) In the case where Section 901 of the Economic Growth and Tax Relief Act of 2001 (Public Law 107-16) applies to any provision of the Internal Revenue Code that is incorporated for purposes of this part, Section 901 of the Economic Growth and Tax Relief Act of 2001 (Public Law 107-16) shall apply for purposes of this part in the same manner and to the same taxable years as it applies for federal income tax purposes. (3) Subtitle G (Tax Technical Corrections) and Part I of Subtitle H (Repeal of Expired or Obsolete Provisions) of the Revenue Reconciliation Act of 1990 (Public Law 101-508) modified numerous provisions of the Internal Revenue Code and provisions of prior federal acts, some of which are incorporated by reference into this part. Unless otherwise provided, the provisions described in the preceding sentence, to the extent that they modify provisions that are incorporated into this part, are declaratory of existing law and shall be applied in the same manner and for the same periods as specified in the Revenue Reconciliation Act of 1990. (b) Unless otherwise specifically provided, when applying the Internal Revenue Code for purposes of this part, a reference to any of the following is not applicable for purposes of this part: (1) Domestic International Sales Corporations (DISC), as defined in Section 992(a) of the Internal Revenue Code. (2) Foreign Sales Corporations (FSC), as defined in Section 922(a) of the Internal Revenue Code. (3) A personal holding company, as defined in Section 542 of the Internal Revenue Code. (4) A foreign personal holding company, as defined in Section 552 of the Internal Revenue Code. (5) A foreign investment company, as defined in Section 1246(b) of the Internal Revenue Code. (6) A foreign trust as defined in Section 679 of the Internal Revenue Code. (7) Foreign income taxes and foreign income tax credits. (8) Federal tax credits and carryovers of federal tax credits. (c) (1) The provisions contained in Sections 41 to 44, inclusive, and Section 172 of the Tax Reform Act of 1984 (Public Law 98-369), relating to treatment of debt instruments, is not applicable for taxable years beginning before January 1, 1987. (2) The provisions contained in Public Law 99-121, relating to the treatment of debt instruments, is not applicable for taxable years beginning before January 1, 1987. (3) For taxable years beginning on and after January 1, 1987, the provisions referred to by paragraphs (1) and (2) shall be applicable for purposes of this part in the same manner and with respect to the same obligations as the federal provisions, except as otherwise provided in this part. (d) When applying the Internal Revenue Code for purposes of this part, regulations promulgated in final form or issued as temporary regulations by “the secretary” shall be applicable as regulations issued under this part to the extent that they do not conflict with this part or with regulations issued by the Franchise Tax Board. (e) Whenever this part allows a taxpayer to make an election, the following rules shall apply: (1) A proper election filed with the Internal Revenue Service in accordance with the Internal Revenue Code or regulations issued by “the secretary” shall be deemed to be a proper election for purposes of this part, unless otherwise expressly provided in this part or in regulations issued by the Franchise Tax Board. (2) A copy of that election shall be furnished to the Franchise Tax Board upon request. (3) (A) Except as provided in subparagraph (B), in order to obtain treatment other than that elected for federal purposes, a separate election shall be filed with the Franchise Tax Board at the time and in the manner that may be required by the Franchise Tax Board. (B) (i) If a taxpayer makes a proper election for federal income tax purposes prior to the time that taxpayer becomes subject to the tax imposed under this part or Part 10 (commencing with Section 17001), that taxpayer is deemed to have made the same election for purposes of the tax imposed by this part, Part 10 (commencing with Section 17001), and Part 10.2 (commencing with Section 18401), as applicable, and that taxpayer may not make a separate election for California tax purposes unless that separate election is expressly authorized by this part, Part 10 (commencing with Section 17001), or Part 10.2 (commencing with Section 18401), or by regulations issued by the Franchise Tax Board. (ii) If a taxpayer has not made a proper election for federal income tax purposes prior to the time that taxpayer becomes subject to tax under this part or Part 10 (commencing with Section 17001), that taxpayer may not make a separate California election for purposes of this part, Part 10 (commencing with Section 17001), or Part 10.2 (commencing with Section 18401), unless that separate election is expressly authorized by this part, Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or by regulations issued by the Franchise Tax Board. (iii) This subparagraph applies only to the extent that the provisions of the Internal Revenue Code or regulations issued by “the secretary” authorizing an election for federal income tax purposes apply for purposes of this part, Part 10 (commencing with Section 17001), or Part 10.2 (commencing with Section 18401). (f) Whenever this part allows or requires a taxpayer to file an application or seek consent, the rules set forth in subdivision (e) shall apply to that application or consent. (g) When applying the Internal Revenue Code for purposes of determining the statute of limitations under this part, any reference to a period of three years shall be modified to read four years for purposes of this part. (h) When applying, for purposes of this part, any section of the Internal Revenue Code or any applicable regulation thereunder, all of the following shall apply: (1) For purposes of Chapter 2 (commencing with Section 23101), Chapter 2.5 (commencing with Section 23400), and Chapter 3 (commencing with Section 23501), the term “taxable income” shall mean “net income.” (2) For purposes of Article 2 (commencing with Section 23731) of Chapter 4, the term “taxable income” shall mean “unrelated business taxable income,” as defined by Section 23732. (3) Any reference to “subtitle,” “Chapter 1,” or “chapter” shall mean this part. (4) The provisions of Section 7806 of the Internal Revenue Code, relating to construction of title, shall apply. (5) Any provision of the Internal Revenue Code that becomes operative on or after the specified date for that taxable year shall become operative on the same date for purposes of this part. (6) Any provision of the Internal Revenue Code that becomes inoperative on or after the specified date for that taxable year shall become inoperative on the same date for purposes of this part. (7) Due account shall be made for differences in federal and state terminology, effective dates, substitution of “Franchise Tax Board” for “secretary” when appropriate, and other obvious differences. (8) Any provision of the Internal Revenue Code that refers to a “corporation” shall, when applicable for purposes of this part, include a “bank,” as defined by Section 23039. (9) Except as otherwise provided, any reference to Section 501 of the Internal Revenue Code shall be interpreted to also refer to Section 23701. (i) Any reference to a specific provision of the Internal Revenue Code shall include modifications of that provision, if any, in this part. (Amended by Stats. 2010, Ch. 14, Sec. 57. (SB 401) Effective January 1, 2011.)
  122. 23051.7.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section protects certain taxpayer carryovers and sets how basis is calculated for property acquired before January 1, 1987.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23051.7. (a) The enactment of the act adding this section to the code shall not deprive any taxpayer of any carryover of a credit, excess contribution, or loss to which that taxpayer was entitled under this part, including all amendments enacted prior to January 1, 1987. (b) The carryover of the credit, excess contribution, or loss shall be allowed to be carried forward under the act adding this section to the code for the same period of time as the taxpayer would have been entitled to carry that item forward under prior law. (c) For purposes of applying the provisions of the act adding this section to the code, the basis or recomputed basis of any asset acquired prior to January 1, 1987, shall be determined under the law at the time the asset was acquired and any adjustments to basis shall be computed as follows: (1) Any adjustments to basis for income years beginning prior to January 1, 1987, shall be computed under applicable provisions of this part, including all amendments enacted prior to January 1, 1987; and (2) Any adjustments to basis for taxable years beginning on or after January 1, 1987, shall be computed under the applicable provisions of the act adding this section to the code. (d) For income years beginning on or after January 1, 1987, and before January 1, 1988, references in this part to “alternative minimum tax” shall be deemed to be references to the “tax on preference income.” (Amended by Stats. 2001, Ch. 543, Sec. 24. Effective January 1, 2002.)
  123. 23052.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    If a code provision is substantially the same as an existing statutory provision on the same subject, it is treated as a restatement and continuation, not a new enactment.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23052. The provisions of this code insofar as they are substantially the same as existing statutory provisions relating to the same subject matter shall be construed as restatements and continuations thereof, and not as new enactments. (Added by Stats. 1955, Ch. 938.)
  124. 23053.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    Repealing a provision of the Bank and Corporation Tax Law does not disturb earlier acts, accrued rights, or civil suits already started, and existing rights and liabilities continue to be enforceable.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23053. The repeal of any provision of the Bank and Corporation Tax Law shall not affect any act done or any right accruing or accrued, or any suit or proceeding had or commenced in any civil cause, before such repeal; but all rights and liabilities under such law shall continue, and may be enforced in the same manner, as if such repeal had not been made. (Amended by Stats. 1991, Ch. 117, Sec. 46. Effective July 16, 1991.)
  125. 23054.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    If a referenced provision is not applicable to the period, the reference is treated as a reference to the corresponding provision of the other law that is applicable.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23054. For the purpose of applying the Bank and Corporation Tax Law of 1954 or the Bank and Corporation Tax Law as herein enacted to any period, any reference in either such law to another provision of the Bank and Corporation Tax Law of 1954 or the Bank and Corporation Tax Law as herein enacted which is not then applicable to such period shall be deemed a reference to the corresponding provision of the other law which is then applicable to such period. (Added by Stats. 1955, Ch. 938.)
  126. 23055.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section says that, when a provision of this part refers to applying the part to a prior period, it is treated as referring to the corresponding corporation tax provision that applied to that earlier period, when appropriate and consistent with the provision’s purpose.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23055. Any provision of this part which refers to the application of any portion of this part to a prior period (or which depends upon the application to a prior period of any portion of this part) shall, when appropriate and consistent with the purpose of such provision, be deemed to refer to (or depend upon the application of) the corresponding provision of Part 11 of Division 2 of the Revenue and Taxation Code or of any other corporation tax laws as were applicable to the prior period. (Amended by Stats. 2001, Ch. 543, Sec. 25. Effective January 1, 2002.)
  127. 23056.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    Section 23056 says code headings do not control the meaning or scope of the statutory text.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23056. Division, part, chapter, article, section and subsection headings contained herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning, or intent of the provisions of this code. (Added by Stats. 1955, Ch. 938.)
  128. 23057.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    If a separable part of this part is found unconstitutional, the rest still applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23057. If any chapter, article, section, subsection, clause, sentence or phrase of this part which is reasonably separable from the remaining portions of this part, or the application thereof to any person, taxpayer or circumstance, is for any reason determined unconstitutional, such determination shall not affect the remainder of this part, nor, will the application of any such provision to other persons, taxpayers or circumstances, be affected thereby. (Added by Stats. 1955, Ch. 938.)
  129. 23058.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section sets when new acts affecting tax rules apply, depending on what the act changes and when it takes effect.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23058. Unless otherwise specifically provided therein, the provisions of any act: (a) That affect the imposition or computation of tax, penalties, or the allowance of credits against the tax, shall be applied to taxable years beginning on or after January 1 of the year in which the act takes effect. (b) That otherwise affect the provisions of this part shall be applied on and after the date the act takes effect. (Amended by Stats. 2000, Ch. 862, Sec. 44. Effective January 1, 2001.)
  130. 23059.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    A notice may be given by first-class mail with postage prepaid, unless this part says otherwise.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23059. Unless expressly otherwise provided in this part, any notice may be given by first-class mail postage prepaid. (Added by Stats. 1972, Ch. 1237.)
  131. 23060.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. )

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    This section lists other laws and code provisions related to this part of the corporation tax law.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 1. General Provisions and Definitions [23001 - 23060] ( Chapter 1 added by Stats. 1949, Ch. 557. ) ## ARTICLE 2. Definitions [23030 - 23060] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23060. Provisions in other codes or General Law Statutes that are related to this part include all of the following: (a) Chapter 20.6 (commencing with Section 9891) of Division 3 of the Business and Professions Code, relating to tax preparers. (b) Sections 1502, 2204 to 2206, inclusive, 6210, 6810, 8210, and 8810 of the Corporations Code, relating to the corporation officer statement penalty. (c) Section 2104 of the Corporations Code, that prevents the application of any provision of this part against any foreign lending institution whose activities in this state are limited to those described in subdivision (d) of Section 191 of the Corporations Code. (d) Sections 15700 to 15702.1, inclusive, of the Government Code, relating to the Franchise Tax Board. (e) Part 10 (commencing with Section 17001), relating to the Personal Income Tax Law. (f) Part 10.2 (commencing with Section 18401), relating to the Administration of Franchise and Income Taxes. (g) Part 10.7 (commencing with Section 21001), relating to the Taxpayers’ Bill of Rights. (h) Part 18 (commencing with Section 38001), relating to the Multistate Tax Compact. (Amended by Stats. 2006, Ch. 538, Sec. 625. Effective January 1, 2007.)
  132. 231.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

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    Property owned by a nonprofit corporation and leased to, and used only by, government is exempt from taxation if the listed conditions are met.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 231. (a) Property that is owned by a nonprofit corporation and leased to, and used exclusively by, government for its interest and benefit shall be exempt from taxation within the meaning of “charitable purposes” in subdivision (b) of Section 4 and Section 5 of Article XIII of the California Constitution if: (1) All of the provisions of Section 214 are complied with, except paragraph (6) of subdivision (a). For purposes of paragraph (6) of subdivision (a) of Section 214, irrevocable dedication to charitable purpose shall be deemed to exist if the lease provides that the property shall be transferred in fee to the entity of government leasing the same upon the sooner of either the liquidation, dissolution, or abandonment of the owner or at the time the last rental payment is made under the provisions of the lease. (2) All of the provisions of Section 254.5 relating to owners are complied with, commencing during calendar year 1969. (3) All of the provisions of Section 214.01 are complied with by March 15, 1970. (b) As used in this section “property” means: (1) Any building or structure of a kind or nature which is uniquely of a governmental character and includes, but is not limited to, the following: (A) City halls. (B) Courthouses. (C) Administration buildings. (D) Police stations, jails, or detention facilities. (E) Fire stations. (F) Parks, playgrounds, or golf courses. (G) Hospitals. (H) Water systems and waste water facilities. (I) Toll bridges. (2) Any other property required for the use and occupation of the buildings and leased to government. (3) Any possessory interest of the nonprofit corporation in property and in the land upon which the property was constructed and so much of the surrounding land that is required for the use and occupation of the property. (4) Any building and its equipment in the course of construction on or after the first Monday of March, 1954, together with the land on which it is located as may be required for the use and occupation of the building when the building and equipment is being constructed for the sole purpose of being leased to government to lessen its burden. “Uniquely of a governmental character” means the property, except hospitals, water systems, waste water facilities, golf courses, and toll bridges, is not intended to produce income or revenue in the form of rents or admission, user or service fees, or charges. (c) As used in this section “property” does not include any possessory interest of any person or organization not exempt from taxation. (d) As used in this section “nonprofit corporation” means a community chest, fund, foundation or corporation, not conducted for profit, and no part of the net earnings of which inures to the benefit of any private shareholder or individual and that nonprofit corporation is organized and operated for the sole purpose of leasing property to government and to lessen the burden of government and, in fact, only leases property to government. That nonprofit corporation shall qualify as an exempt organization either under Section 23701f or 23701u of this code or Section 501(c)(4) of the Internal Revenue Code of 1986. This subdivision is not intended to enlarge the “welfare exemption” to apply to organizations qualified under Section 501(c)(4) of the Internal Revenue Code of 1986 but not otherwise qualified for the “welfare exemption” under this section. Nonprofit corporations that meet the tests of this subdivision are deemed to be organized and operated for charitable purposes. (e) As used in this section “government” means the State of California, a city, city and county, county, public corporation, and a hospital district. (f) The exemption provided for in this section shall be deemed to be within the “welfare exemption” for purposes of Section 251. (g) For leases first entered into by and between government and a nonprofit corporation on or after January 1, 1969, all requirements of this section shall be met for the property and the nonprofit corporation to qualify for the exemption provided by this section. (h) For leases first entered into by and between government and a nonprofit corporation on or before December 31, 1968, all requirements of this section shall be met except that the last unnumbered paragraph of subdivision (b) shall not apply and for the purposes of subdivision (b)(1) the list of real property qualifying for this exemption includes community recreation buildings or facilities, golf courses, airports, water, sewer and drainage facilities, music centers and their related facilities, and public parking incidental to and in connection with one of the buildings or structures set forth in this section. (i) Property exempt under this section shall be located within the boundaries of the entity of government leasing the same. (j) Where the construction has commenced on or after January 1, 1969, improvements shall be advertised and put to competitive bid to qualify for the exemption provided by this section. (k) For purposes of subdivision (d), a nonprofit corporation shall not be deemed to be qualified as an exempt organization unless the organization files with the assessor a valid organizational clearance certificate issued pursuant to Section 254.6. (Amended by Stats. 2003, Ch. 471, Sec. 12. Effective January 1, 2004.)
  133. 23101.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. )

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    This section defines “doing business” and sets when a taxpayer is treated as doing business in California based on sales, property, payroll, or being organized or commercially domiciled in the state.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23101. (a) “Doing business” means actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. (b) For taxable years beginning on or after January 1, 2011, a taxpayer is doing business in this state for a taxable year if any of the following conditions has been satisfied: (1) The taxpayer is organized or commercially domiciled in this state. (2) Sales, as defined in subdivision (e) or (f) of Section 25120 as applicable for the taxable year, of the taxpayer in this state exceed the lesser of five hundred thousand dollars ($500,000) or 25 percent of the taxpayer’s total sales. For purposes of this paragraph, sales of the taxpayer include sales by an agent or independent contractor of the taxpayer. For purposes of this paragraph, sales in this state shall be determined using the rules for assigning sales under Sections 25135 and 25136 and the regulations thereunder, as modified by regulations under Section 25137. (3) The real property and tangible personal property of the taxpayer in this state exceed the lesser of fifty thousand dollars ($50,000) or 25 percent of the taxpayer’s total real property and tangible personal property. The value of real and tangible personal property and the determination of whether property is in this state shall be determined using the rules contained in Sections 25129 to 25131, inclusive, and the regulations thereunder, as modified by regulation under Section 25137. (4) The amount paid in this state by the taxpayer for compensation, as defined in subdivision (c) of Section 25120, exceeds the lesser of fifty thousand dollars ($50,000) or 25 percent of the total compensation paid by the taxpayer. Compensation in this state shall be determined using the rules for assigning payroll contained in Section 25133 and the regulations thereunder, as modified by regulations under Section 25137. (c) (1) The Franchise Tax Board shall annually revise the amounts in paragraphs (2), (3), and (4) of subdivision (b) in accordance with subdivision (h) of Section 17041. (2) For purposes of the adjustment required by paragraph (1), subdivision (h) of Section 17041 shall be applied by substituting “2012” in lieu of “1988.” (d) The sales, property, and payroll of the taxpayer include the taxpayer’s pro rata or distributive share of pass-through entities. For purposes of this subdivision, “pass-through entities” means a partnership or an “S” corporation. (Amended November 6, 2012, by initiative Proposition 39, Sec. 3.)
  134. 23101.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    The Franchise Tax Board may decide a corporation is not doing business in California, or not deriving California-source income for this chapter, if the corporation’s in-state activities are limited to specified purchasing or school-attendance activities.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23101.5. (a) The Franchise Tax Board may determine that a corporation is not doing business in this state for purposes of this chapter or deriving income from sources within this state for purposes of Chapter 3 (commencing with Section 23501) if its only activities within this state are either or both of the following: (1) The purchase of personal property or services solely for its own use or use by its affiliate outside this state if: (A) The corporation does not have more than 100 employees in this state, whose duties are limited to solicitation, negotiation, liaison, monitoring, auditing, and inspecting the personal property or services acquired, or providing technical advice with respect to its requirements, and (B) The corporation does not have more than 200 employees in this state, whose duties are limited to solicitation, negotiation, liaison, monitoring, auditing, and inspecting the personal property or services acquired, or providing technical advice with respect to its requirements, and the personal property or services purchased by the corporation or its affiliate are used for the construction or modification of a physical plant or facility located outside the state, and (C) The combined number of employees in this state pursuant to subparagraphs (A) and (B) does not exceed 200. (2) The presence of employees in this state only for the purpose of attending a public or private school, college, or university. (b) A corporation may petition the Franchise Tax Board for a determination in accord with procedures established by the Franchise Tax Board. The filing of that petition shall be deemed a waiver of the confidentiality provisions of Section 19542 with respect to the facts alleged in the petition and any additional evidence produced with respect to those facts. (c) If the determination is made, it shall remain in force for five years as long as the corporation continues to meet the above criteria. However, with respect to corporations meeting the above criteria on or before January 1, 1978, the determination shall remain in force indefinitely so long as the corporation continues to meet the above criteria. (d) The corporation shall annually confirm with the Franchise Tax Board within two months and 15 days after the close of its fiscal year, in the manner as the Franchise Tax Board may prescribe, that the facts relevant to the granting of the determination then in effect remain unchanged or shall state and explain any changes that have occurred since the preceding report was filed. (e) Where a corporation applying for or relying on the determination is engaged in a unitary business, the limitation of 100 or 200 employees, as applicable, that is specified in paragraph (1) of subdivision (a) shall apply to the aggregation of all corporations within the unitary group. (f) Each taxpayer that sells property or services to a corporation with more than 100 employees in this state, with respect to which the determination has been made, shall file annually with the Franchise Tax Board, in the manner as the Franchise Tax Board may prescribe, a report identifying the number of its employees within this state directly attributable to the construction or modification of a physical plant or facility located outside the state. (g) This section shall become operative on January 1, 1994. (Repealed (in Sec. 37.2) and added by Stats. 1993, Ch. 877, Sec. 37.5. Effective October 6, 1993. Section operative January 1, 1994, by its own provisions.)
  135. 23102.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A corporation that only holds stock or bonds, does not trade those securities, and only receives and disburses dividends or interest is not treated as doing business in this State for this chapter.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23102. Any corporation holding or organized to hold stock or bonds of any other corporation or corporations, and not trading in stock or bonds or other securities held, and engaging in no activities other than the receipt and disbursement of dividends from stock or interest from bonds, is not a corporation doing business in this State for the purposes of this chapter. (Amended by Stats. 1951, Ch. 72.)
  136. 23104.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A corporation is not treated as doing business in the state for this part if it is not incorporated in the state, only does convention and trade show activities, does those activities for 7 or fewer days in the taxable year, and earns no more than $10,000 of gross income reportable to the state from them.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23104. (a) For purposes of this part only, any corporation that is not incorporated under the laws of this state and whose sole activity in this state is engaging in convention and trade show activities, as described in Section 513(d)(3)(A) of the Internal Revenue Code, for seven or fewer calendar days, or any portion thereof, during the taxable year and that does not derive more than ten thousand dollars ($10,000) of gross income reportable to this state from those activities during that taxable year is not a corporation doing business in this state. (b) For purposes of this section, the determination of gross income reportable to this state of a taxpayer shall be made by including the gross income reportable to this state of each member of the “commonly controlled group” (as defined by Section 25105) of which the taxpayer is a member. (Amended by Stats. 2000, Ch. 862, Sec. 45. Effective January 1, 2001.)
  137. 23113.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    The tax under this chapter still applies even if the taxpayer’s taxable year is 12 months or less.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23113. The tax imposed under this chapter shall attach whether a taxpayer has a taxable year of twelve months or less. (Added by Stats. 1949, Ch. 557.)
  138. 23114.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A corporation is not subject to the chapter’s taxes if it did no business in the state during the taxable year and that taxable year was 15 days or less.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 1. Definitions and General Provisions [23101 - 23114] ( Article 1 added by Stats. 1949, Ch. 557. ) ## 23114. (a) A corporation shall not be subject to the taxes imposed by this chapter if the corporation did no business in this state during the taxable year and the taxable year was 15 days or less. (b) The period of time for which a corporation is not subject to taxes imposed by this chapter as provided in subdivision (a) may not be considered a taxable year for purposes of subdivision (e) or paragraph (1) of subdivision (f) of Section 23153. (Amended by Stats. 2003, Ch. 455, Sec. 7. Effective January 1, 2004.)
  139. 23151.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Most corporations doing business in California must pay an annual franchise tax to the state based on net income, with different rates applying by taxable period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23151. (a) With the exception of banks and financial corporations, every corporation doing business within the limits of this state and not expressly exempted from taxation by the provisions of the Constitution of this state or by this part, shall annually pay to the state, for the privilege of exercising its corporate franchises within this state, a tax according to or measured by its net income, to be computed at the rate of 7.6 percent upon the basis of its net income for the next preceding income year, or if greater, the minimum tax specified in Section 23153. (b) For calendar or fiscal years ending after June 30, 1973, the rate of tax shall be 9 percent instead of 7.6 percent as provided by subdivision (a). (c) For calendar or fiscal years ending in 1980 to 1986, inclusive, the rate of tax shall be 9.6 percent. (d) For calendar or fiscal years ending in 1987 to 1996, inclusive, and for any income year beginning before January 1, 1997, the tax rate shall be 9.3 percent. (e) For any income year beginning on or after January 1, 1997, and before the income year identified in subparagraph (A) of paragraph (1) of subdivision (f), the tax rate shall be 8.84 percent. The change in rate provided in this subdivision shall be made without proration otherwise required by Section 24251. (f) (1) For the first taxable year beginning on or after January 1, 2000, the tax imposed under this section shall be the sum of both of the following: (A) A tax according to or measured by net income, to be computed at the rate of 8.84 percent upon the basis of the net income for the next preceding income year, but not less than the minimum tax specified in Section 23153. (B) A tax according to or measured by net income, to be computed at the rate of 8.84 percent upon the basis of the net income for the first taxable year beginning on or after January 1, 2000, but not less than the minimum tax specified in Section 23153. (2) Except as provided in paragraph (1), for taxable years beginning on or after January 1, 2000, the tax imposed under this section shall be a tax according to or measured by net income, to be computed at the rate of 8.84 percent upon the basis of the net income for that taxable year, but not less than the minimum tax specified in Section 23153. (Amended by Stats. 2015, Ch. 303, Sec. 484. (AB 731) Effective January 1, 2016.)
  140. 23151.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Most corporations doing business in the state must pay an annual tax to the state, subject to listed exceptions and timing rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23151.1. Notwithstanding Section 23151, every corporation (except banks and financial corporations) doing business within the limits of this state and not exempted from taxation by the provisions of the Constitution of this state or by this part, shall annually pay to the state for the privilege of exercising its corporate franchises within this state, a tax determined as follows: (a) With respect to corporations, other than those described in subdivision (b), which commence doing business within the state after December 31, 1971, and before January 1, 2000, the tax for the taxable year of commencement, whether or not for 12 full months, shall be the minimum franchise tax prescribed in Section 23153. (b) If after December 31, 1972, a corporation commences to do business and ceases doing business in the same taxable year, the tax for that taxable year shall be according to or measured by its net income for the year, to be computed at the rate prescribed in Section 23151. (c) (1) With respect to taxable years beginning after December 31, 1972, and before January 1, 2000, other than the year of commencement described in subdivision (a) or (b) or the year of cessation described in subdivision (d), the tax for that taxable year shall be according to or measured by its net income for the next preceding taxable year, to be computed at the rate prescribed in Section 23151. (2) With respect to taxable years beginning on or after January 1, 2000, (other than the first taxable year beginning on or after that date), the tax for the taxable year (including the taxable year of commencement and the taxable year of cessation) shall be according to or measured by its net income for the taxable year to be computed at the rate prescribed in Section 23151. (d) With respect to corporations which cease doing business in a taxable year beginning after December 31, 1972, and before January 1, 2000, other than those described in subdivision (b), the tax for the taxable year of cessation shall be: (1) According to or measured by its net income for the next preceding taxable year, to be computed at the rate prescribed in Section 23151, plus (2) According to or measured by its net income for the taxable year during which the corporation ceased doing business, to be computed at the rate prescribed in Section 23151. (e) In any event, the tax for any taxable year shall not be less than the minimum tax provided for in Section 23153 for that taxable year. (Amended by Stats. 2000, Ch. 862, Sec. 48. Effective January 1, 2001.)
  141. 23151.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A dissolving or withdrawing corporation generally must pay tax for its dissolution or withdrawal year, measured by its net income, with exceptions for banks, financial corporations, and already-counted income.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23151.2. Notwithstanding Section 23151, every corporation (except banks and financial corporations) not exempted from taxation by the provisions of the Constitution of this state or by this part which dissolves or withdraws, shall pay a tax for its taxable year of dissolution or withdrawal according to or measured by its net income for the taxable year in which it ceased doing business, unless that income has previously been included in the measure of tax for any taxable year, to be computed at the rate prescribed in Section 23151 for its taxable year of dissolution or withdrawal. In any event, the tax for the taxable year of its dissolution or withdrawal shall not be less than the minimum tax provided for in Section 23153 for that taxable year. (Amended by Stats. 2000, Ch. 862, Sec. 49. Effective January 1, 2001.)
  142. 23153.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Most corporations in subdivision (b) must pay California a minimum franchise tax, generally $800 annually, with some reduced-rate and exemption rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23153. (a) Every corporation described in subdivision (b) shall be subject to the minimum franchise tax specified in subdivision (d) from the earlier of the date of incorporation, qualification, or commencing to do business within this state, until the effective date of dissolution or withdrawal as provided in Section 23331 or, if later, the date the corporation ceases to do business within the limits of this state. (b) Unless expressly exempted by this part or the California Constitution, subdivision (a) shall apply to each of the following: (1) Every corporation that is incorporated under the laws of this state. (2) Every corporation that is qualified to transact intrastate business in this state pursuant to Chapter 21 (commencing with Section 2100) of Division 1 of Title 1 of the Corporations Code. (3) Every corporation that is doing business in this state. (c) The following entities are not subject to the minimum franchise tax specified in this section: (1) Credit unions. (2) Nonprofit cooperative associations organized pursuant to Chapter 1 (commencing with Section 54001) of Division 20 of the Food and Agricultural Code that have been issued the certificate of the board of supervisors prepared pursuant to Section 54042 of the Food and Agricultural Code. The association shall be exempt from the minimum franchise tax for five consecutive taxable years, commencing with the first taxable year for which the certificate is issued pursuant to subdivision (b) of Section 54042 of the Food and Agricultural Code. This paragraph only applies to nonprofit cooperative associations organized on or after January 1, 1994. (d) (1) Except as provided in paragraph (2), paragraph (1) of subdivision (f) of Section 23151, paragraph (1) of subdivision (f) of Section 23181, and paragraph (1) of subdivision (c) of Section 23183, corporations subject to the minimum franchise tax shall pay annually to the state a minimum franchise tax of eight hundred dollars ($800). (2) The minimum franchise tax shall be twenty-five dollars ($25) for each of the following: (A) A corporation formed under the laws of this state whose principal business when formed was gold mining, which is inactive and has not done business within the limits of the state since 1950. (B) A corporation formed under the laws of this state whose principal business when formed was quicksilver mining, which is inactive and has not done business within the limits of the state since 1971, or has been inactive for a period of 24 consecutive months or more. (3) For purposes of paragraph (2), a corporation shall not be considered to have done business if it engages in business other than mining. (e) Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 1999, and before January 1, 2000, every “qualified new corporation” shall pay annually to the state a minimum franchise tax of five hundred dollars ($500) for the second taxable year. This subdivision shall apply to any corporation that is a qualified new corporation and is incorporated on or after January 1, 1999, and before January 1, 2000. (1) The determination of the gross receipts of a corporation, for purposes of this subdivision, shall be made by including the gross receipts of each member of the commonly controlled group, as defined in Section 25105, of which the corporation is a member. (2) “Gross receipts, less returns and allowances reportable to this state,” means the sum of the gross receipts from the production of business income, as defined in subdivision (a) of Section 25120, and the gross receipts from the production of nonbusiness income, as defined in subdivision (d) of Section 25120. (3) “Qualified new corporation” means a corporation that is incorporated under the laws of this state or has qualified to transact intrastate business in this state, that begins business operations at or after the time of its incorporation and that reasonably estimates that it will have gross receipts, less returns and allowances, reportable to this state for the taxable year of one million dollars ($1,000,000) or less. “Qualified new corporation” does not include any corporation that began business operations as a sole proprietorship, a partnership, or any other form of business entity prior to its incorporation. This subdivision shall not apply to any corporation that reorganizes solely for the purpose of reducing its minimum franchise tax. (4) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, or to the formation of any subsidiary corporation, to the extent applicable. (5) For any taxable year beginning on or after January 1, 1999, and before January 1, 2000, if a corporation has qualified to pay five hundred dollars ($500) for the second taxable year under this subdivision, but in its second taxable year, the corporation’s gross receipts, as determined under paragraphs (1) and (2), exceed one million dollars ($1,000,000), an additional tax in the amount equal to three hundred dollars ($300) for the second taxable year shall be due and payable by the corporation on the due date of its return, without regard to extension, for that year. (f) (1) Notwithstanding subdivision (a), every corporation that incorporates or qualifies to do business in this state on or after January 1, 2000, shall not be subject to the minimum franchise tax for its first taxable year. (2) This subdivision shall not apply to limited partnerships, as defined in Section 17935, limited liability companies, as defined in Section 17941, limited liability partnerships, as described in Section 17948, charitable organizations, as described in Section 23703, regulated investment companies, as defined in Section 851 of the Internal Revenue Code, real estate investment trusts, as defined in Section 856 of the Internal Revenue Code, real estate mortgage investment conduits, as defined in Section 860D of the Internal Revenue Code, and qualified Subchapter S subsidiaries, as defined in Section 1361(b)(3) of the Internal Revenue Code, to the extent applicable. (3) This subdivision shall not apply to any corporation that reorganizes solely for the purpose of avoiding payment of its minimum franchise tax. (g) Notwithstanding subdivision (a), a domestic corporation, as defined in Section 167 of the Corporations Code, that files a certificate of dissolution in the office of the Secretary of State pursuant to subdivision (b) of Section 1905 of the Corporations Code, prior to its amendment by the act amending this subdivision, and that does not thereafter do business shall not be subject to the minimum franchise tax for taxable years beginning on or after the date of that filing. (h) The minimum franchise tax imposed by paragraph (1) of subdivision (d) shall not be increased by the Legislature by more than 10 percent during any calendar year. (i) (1) Notwithstanding subdivision (a), for taxable years beginning on or after January 1, 2020, a corporation that is a small business solely owned by a deployed member of the United States Armed Forces shall not be subject to the minimum franchise tax for any taxable year the owner is deployed and the corporation operates at a loss or ceases operation. (2) The Franchise Tax Board may promulgate regulations as necessary or appropriate to carry out the purposes of this subdivision, including a definition for “ceases operation.” (3) For the purposes of this subdivision, all of the following definitions apply: (A) “Deployed” means being called to active duty or active service during a period when a Presidential Executive order specifies that the United States is engaged in combat or homeland defense. “Deployed” does not include either of the following: (i) Temporary duty for the sole purpose of training or processing. (ii) A permanent change of station. (B) “Operates at a loss” means negative net income as defined in Section 24341. (C) “Small business” means a corporation with total income from all sources derived from, or attributable to, the state of two hundred fifty thousand dollars ($250,000) or less. (4) This subdivision shall become inoperative for taxable years beginning on or after January 1, 2030. (Amended by Stats. 2019, Ch. 421, Sec. 2. (AB 308) Effective October 2, 2019.)
  143. 23154.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    The board must annually assess certain real property interests created by special franchises at actual value, and intangible assets or rights generally cannot increase that value.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23154. The tax imposed under this chapter is in lieu of all ad valorem taxes and assessments of every kind and nature upon the general corporate franchises of the corporations taxable under this chapter but is not in lieu of any taxes or assessments upon real property interests not otherwise exempted from taxation or assessment, that are created by special franchises owned, held, or used by those corporations. All those real property interests, not otherwise exempted from taxation or assessment that are created by those special franchises shall be assessed annually by the board, at their actual value, in the same manner as is provided for the assessment of other property to be assessed by that board under Section 19 of Article XIII of the California Constitution, and shall be subject to taxation to the same extent and in the same manner as other property assessed under that constitutional provision by the board. For purposes of assessing a real property interest pursuant to the preceding sentence, the value of intangible assets or rights shall not enhance or be reflected in the value of that real property interest, except that the real property interest may be assessed and valued by assuming the presence of intangible assets and rights necessary to put the real property interest to beneficial or productive use. (Amended by Stats. 1995, Ch. 498, Sec. 17. Effective January 1, 1996.)
  144. 23155.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    If taxes, interest, or penalties were assessed, paid, or collected under the wrong subdivision of Section 23151.1, they are treated as having been handled under the correct subdivision from the original date.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23155. In the event that taxes, interest and penalties have been or shall be assessed against, paid by or collected from a taxpayer under a subdivision of Section 23151.1, which assessment, payment or collection should have been made under a different subdivision, such taxes, interest and penalties shall be considered as having been assessed, paid or collected under such different subdivision as of the date or dates they were made. (Added by Stats. 1977, Ch. 552.)
  145. 23156.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    The Franchise Tax Board must abate certain unpaid taxes, interest, and penalties for a qualified nonprofit corporation that requests abatement and certifies it was not doing business, if the corporation also stops all business operations and dissolves within 12 months.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 2. Tax on General Corporations [23151 - 23156] ( Article 2 added by Stats. 1949, Ch. 557. ) ## 23156. (a) The Franchise Tax Board shall abate, upon written request by a qualified nonprofit corporation, unpaid qualified taxes, interest, and penalties for the taxable years in which the qualified nonprofit corporation certifies, under penalty of perjury, that it was not doing business, within the meaning of subdivision (a) of Section 23101. (b) For purposes of this section: (1) “Qualified nonprofit corporation” means a nonprofit corporation identified in Section 5059, 5060, or 5061 of the Corporations Code or a foreign nonprofit corporation, as defined in Section 5053 of the Corporations Code that has qualified to transact intrastate business in this state and that satisfies any of the following conditions: (A) Was operating and previously obtained tax-exempt status with the Franchise Tax Board, but had its tax-exempt status revoked under subdivision (a) of Section 23777. (B) Was operating and previously obtained tax-exempt status with the Internal Revenue Service, but had its tax-exempt status revoked under Section 6033(j) of the Internal Revenue Code. (C) Was never doing business, within the meaning of subdivision (a) of Section 23101, in this state at any time after the time of its incorporation in this state. (2) “Qualified taxes, interest, and penalties” means tax imposed under Section 23153 and associated interest and penalties, and any penalties imposed under Section 19141. “Qualified taxes, interest, and penalties” does not include tax imposed under Section 23501 or 23731, or associated interest or penalties. (c) The qualified corporation must establish that it has ceased all business operations at the time of filing the request for abatement under this section. (d) (1) The abatement of unpaid qualified tax, interest, and penalties is conditioned on the dissolution of the qualified corporation within 12 months from the date of filing the request for abatement under this section. (2) If the qualified corporation is not dissolved within 12 months from the date of filing the request for abatement or restarts business operations at any time after requesting abatement under this section, the abatement of qualified tax, interest, and penalties under this section shall be canceled and the qualified taxes, interest, and penalties subject to that abatement shall be treated as if the abatement never occurred. (e) The Franchise Tax Board shall prescribe any rules and regulations that may be necessary or appropriate to implement this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (Amended by Stats. 2016, Ch. 86, Sec. 291. (SB 1171) Effective January 1, 2017.)
  146. 23181.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Banks doing business in the state must pay an annual tax based on net income, with special rules for banks that start and stop in the same year and a minimum-tax rule beginning with income years ending in 1980.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. ) ## 23181. (a) Except as otherwise provided herein, an annual tax is hereby imposed upon every bank doing business within the limits of this state according to or measured by its net income, upon the basis of its net income for the next preceding income year at the rate provided under Section 23186. (b) If a bank commences to do business and ceases doing business in the same taxable year, the tax for such taxable year shall be according to or measured by its net income for such year, at the rate provided under Section 23186. (c) With respect to a bank, other than a bank described in subdivision (b), which ceases doing business after December 31, 1972, the tax for the taxable year of cessation shall be: (1) According to or measured by its net income for the next preceding income year, to be computed at the rate prescribed in Section 23186, plus (2) According to or measured by its net income for the income year during which the bank ceased doing business, to be computed at the rate prescribed in Section 23186. (d) In the case of a bank which ceased doing business before January 1, 1973, but dissolves or withdraws on such date or thereafter, the tax for the taxable year of dissolution or withdrawal shall be according to or measured by its net income for the income year during which the bank ceased doing business, unless such income has previously been included in the measure of tax for any taxable year, to be computed at the rate prescribed under Section 23186 for the taxable year of dissolution or withdrawal. (e) Commencing with income years ending in 1980, every bank shall pay to the state a minimum tax (determined in accordance with Section 23153) or the measured tax imposed on its income, whichever is greater. (f) (1) For the first taxable year beginning on or after January 1, 2000, the tax imposed under this section shall be the sum of both of the following: (A) A tax according to or measured by net income, to be computed at the rate provided under Section 23186 upon the basis of the net income for the next preceding income year, but not less than the minimum tax specified in Section 23153. (B) A tax according to or measured by net income, to be computed at the rate provided under Section 23186 upon the basis of the net income for the first taxable year beginning on or after January 1, 2000, but not less than the minimum tax specified in Section 23153. (2) Except as provided in paragraph (1), for taxable years beginning on or after January 1, 2000, the tax imposed under this section shall be a tax according to or measured by net income, to be computed at the rate provided under Section 23186 upon the basis of the net income for that taxable year, but not less than the minimum tax specified in Section 23153. (Amended by Stats. 2000, Ch. 862, Sec. 51. Effective January 1, 2001.)
  147. 23182.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Banks and financial corporations are taxed under this part in place of most other state, county, and municipal taxes and licenses, subject to listed exceptions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. ) ## 23182. The tax imposed under this part upon banks and financial corporations is in lieu of all other taxes and licenses, state, county and municipal, upon the said banks and financial corporations except taxes upon their real property, local utility user taxes, sales and use taxes, state energy resources surcharge, state emergency telephone users surcharge, and motor vehicle and other vehicle registration license fees and any other tax or license fee imposed by the state upon vehicles, motor vehicles or the operation thereof. The changes in this section made by the 1979–80 Legislature with respect to sales and use taxes apply to taxable years beginning on and after January 1, 1980, and the remaining changes apply to taxable years beginning on and after January 1, 1981. (Amended by Stats. 2001, Ch. 543, Sec. 27. Effective January 1, 2002.)
  148. 23183.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Financial corporations doing business in California are subject to an annual tax under this section, with different calculation rules depending on the taxable year.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. ) ## 23183. (a) For taxable years beginning before January 1, 2000, an annual tax is hereby imposed upon every financial corporation doing business within the limits of this state and taxable under the provisions of Section 27 of Article XIII of the Constitution of this state, for the privilege of exercising its corporate franchises within this state, according to or measured by its net income, upon the basis of its net income for the next preceding income year at the rate provided under Section 23186. (b) For purposes of this article, the term “financial corporation” does not include any corporation, including a wholly owned subsidiary of a bank or bank holding company, if the principal business activity of such entity consists of leasing tangible personal property. (c) (1) For the first taxable year beginning on or after January 1, 2000, the tax imposed under this section shall be the sum of both of the following: (A) A tax according to or measured by net income, to be computed at the rate provided under Section 23186 upon the basis of the net income for the next preceding income year, but not less than the minimum tax specified in Section 23153. (B) A tax according to or measured by net income, to be computed at the rate provided under Section 23186 upon the basis of the net income for the first taxable year beginning on or after January 1, 2000, but not less than the minimum tax specified in Section 23153. (2) Except as provided in paragraph (1), for taxable years beginning on or after January 1, 2000, the tax imposed under this section shall be a tax according to or measured by net income, to be computed at the rate provided under Section 23186 upon the basis of the net income for that taxable year, but not less than the minimum tax specified in Section 23153. (Amended by Stats. 2000, Ch. 862, Sec. 52. Effective January 1, 2001.)
  149. 23183.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Financial corporations doing business in the state must pay an annual tax to the state unless they are exempt.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. ) ## 23183.1. Notwithstanding Section 23183, every financial corporation doing business within the limits of this state and not exempted from taxation by the Constitution of this state or by this part, shall annually pay to the state for the privilege of exercising its corporate franchises within this state, a tax determined as follows: (a) If a financial corporation commences to do business and ceases doing business in the same taxable year, the tax for that taxable year shall be according to or measured by its net income for that year, at the rate provided under Section 23186. (b) (1) With respect to taxable years beginning before January 1, 2000, other than the year of commencement described in subdivision (a) or the year of cessation described in subdivision (c), a tax according to or measured by its net income, to be computed at the rate prescribed in Section 23186 upon the basis of its net income for the next preceding income year. (2) With respect to taxable years beginning on or after January 1, 2000 (other than the first taxable year beginning on or after that date), the tax for the taxable year (including the taxable year of commencement and the taxable year of cessation) shall be a tax according to or measured by its net income, to be computed at the rate prescribed in Section 23186 upon the basis of its net income for the taxable year. (c) With respect to financial corporations, which cease doing business in a taxable year beginning before January 1, 2000, other than those described in subdivision (a), the tax for the taxable year of cessation shall be: (1) According to or measured by its net income for the next preceding income year to be computed at the rate prescribed in Section 23186, plus (2) According to or measured by its net income for the income year during which the financial corporation ceased doing business, to be computed at the rate prescribed in Section 23186. (Amended by Stats. 2000, Ch. 862, Sec. 53. Effective January 1, 2001.)
  150. 23183.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A qualifying financial corporation that dissolves or withdraws must pay tax for that year based on its net income, using the rate in Section 23186.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. ) ## 23183.2. Notwithstanding Section 23183, every financial corporation not exempted from taxation by the provisions of the Constitution of this state or by this part which dissolves or withdraws, shall pay a tax for its taxable year of dissolution or withdrawal according to or measured by its net income for the taxable year in which it ceased doing business, to be computed at the rate prescribed in Section 23186 for its taxable year of dissolution or withdrawal, unless the income has previously been included in the measure of tax for any taxable year. (Amended by Stats. 2000, Ch. 862, Sec. 54. Effective January 1, 2001.)
  151. 23186.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Banks and financial corporations are taxed at the Section 23151 rate plus 2 percent for taxable years ending on or after December 31, 1995.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. ) ## 23186. For taxable years ending on or after December 31, 1995, the rate of tax on banks and financial corporations shall be the rate of tax specified in Section 23151, plus 2 percent. (Amended by Stats. 2000, Ch. 862, Sec. 55. Effective January 1, 2001.)
  152. 23187.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    On a taxpayer’s request, the county, city, or other local tax-collecting officer must provide an official receipt for real and personal property taxes paid.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. ) ## 23187. Upon the request of a taxpayer under this chapter, the tax-collecting officer of a county, city, or other political subdivision of this State, shall furnish an official receipt for real and personal property taxes paid to him setting forth a description of such property, the assessed valuation thereof, the rate of tax, the amount of taxes paid, and the beginning and ending of the year for which the taxes are paid. (Added by Stats. 1949, Ch. 557.)
  153. 23188.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    If taxes, interest, or penalties were assessed, paid, or collected under the wrong subdivision of Sections 23181 or 23183.1, they are treated as having been handled under the correct subdivision from the date they were made.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3. Tax on Banks and Financial Corporations [23181 - 23188] ( Article 3 added by Stats. 1949, Ch. 557. ) ## 23188. In the event that taxes, interest, or penalties have been or shall be assessed against, paid by, or collected from a taxpayer under a subdivision of Section 23181 or 23183.1, which assessment, payment, or collection should have been made under a different subdivision of those sections, the taxes, interest, or penalties shall be considered as having been assessed, paid, or collected under that different subdivision as of the date or dates they were made. (Amended by Stats. 2000, Ch. 415, Sec. 3. Effective January 1, 2001.)
  154. 232.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. )

    Verify source ↗

    Cargo containers used mainly to transport cargo by vessel in ocean commerce are exempt from property tax, except cargo-carrying vehicles covered by Vehicle Code registration rules.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 2. ASSESSMENT [201 - 1367] ( Part 2 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 1. Taxation Base [201 - 287] ( Chapter 1 enacted by Stats. 1939, Ch. 154. ) ## ARTICLE 1. Taxable and Exempt Property [201 - 242] ( Article 1 enacted by Stats. 1939, Ch. 154. ) ## 232. All cargo containers principally used for the transportation of cargo by vessels in ocean commerce shall be exempt from property taxation. Any tax exemption created by this section shall not apply to a cargo-carrying vehicle subject to the registration provisions of Section 4000 of the Vehicle Code. The term “container” means a receptacle: (a) Of a permanent character and accordingly strong enough to be suitable for repeated use; (b) Specially designed to facilitate the carriage of goods, by one or more modes of transport, one of which shall be by vessels, without intermediate reloading; (c) Fitted with devices permitting its ready handling, particularly its transfer from one mode of transport to another; (d) So designed to be easy to fill and empty; and (e) Having a cubic displacement of 1,000 cubic feet or more. (Added by Stats. 1974, Ch. 1405. Note: Termination clause in Stats. 1979, Ch. 5, Sec. 3, was deleted by Stats. 1980, Ch. 1115.)
  155. 23201.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3.5. Credit for Prepaid Tax [23201 - 23204] ( Article 3.5 added by Stats. 1971, Ch. 1304. )

    Verify source ↗

    Certain taxpayers may claim a credit against tax when they dissolve or withdraw, but they cannot count the same credit twice.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3.5. Credit for Prepaid Tax [23201 - 23204] ( Article 3.5 added by Stats. 1971, Ch. 1304. ) ## 23201. (a) In the case of a taxpayer whose tax for the first taxable year was computed under Sections 23222 to 23224, inclusive (or corresponding sections of prior laws), there shall be allowed as a credit against the tax for the taxable year of dissolution or withdrawal, the excess of the tax paid over the minimum tax for the first taxable year which constituted a full 12 months of doing business in this state and whose income has been included in the measure of tax of a succeeding taxable year. (b) Any credit previously allowed under this section or for a year in which the taxpayer ceased doing business shall not be allowed again in computing a credit under this section. (Amended by Stats. 1977, Ch. 552.)
  156. 23202.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3.5. Credit for Prepaid Tax [23201 - 23204] ( Article 3.5 added by Stats. 1971, Ch. 1304. )

    Verify source ↗

    A qualifying taxpayer may claim a prepaid tax credit in a reorganization-related dissolution or withdrawal year, and the credit is added to any Section 23201 credit, but the same credit cannot be counted twice.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3.5. Credit for Prepaid Tax [23201 - 23204] ( Article 3.5 added by Stats. 1971, Ch. 1304. ) ## 23202. (a) In the case of a taxpayer who has been a transferee in a reorganization to which Sections 23251 to 23254, inclusive, or corresponding sections of prior laws, were applicable, there shall be allowed as a credit for the taxable year of dissolution or withdrawal, the excess of the tax paid over the minimum tax paid by prior transferors or by the transferee as a transferor under Sections 23222 to 23224, inclusive, or corresponding sections of prior laws, for the first taxable year of the transferors that constituted a full 12 months of doing business and whose income has been included in the measure of tax of a succeeding taxable year. (b) The credit allowable under this section shall be in addition to any credit that may be allowable to the taxpayer under Section 23201. However, any credit previously allowed under Section 23201, under this section, or for a year in which the taxpayer or transferor ceased doing business, shall not be allowed again in computing a credit under this section. (Amended by Stats. 2006, Ch. 538, Sec. 626. Effective January 1, 2007.)
  157. 23203.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3.5. Credit for Prepaid Tax [23201 - 23204] ( Article 3.5 added by Stats. 1971, Ch. 1304. )

    Verify source ↗

    A taxpayer may claim the credit only by submitting evidence to the Franchise Tax Board showing the amount of tax paid and the tax the credit relates to.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3.5. Credit for Prepaid Tax [23201 - 23204] ( Article 3.5 added by Stats. 1971, Ch. 1304. ) ## 23203. The credits provided by Sections 23201 and 23202 shall be allowable only upon submission by the taxpayer of evidence establishing to the satisfaction of the Franchise Tax Board the amount of the tax paid pursuant to Sections 23222 to 23224, inclusive (or corresponding sections of prior laws), and with respect to which the credit is claimed. (Added by Stats. 1971, Ch. 1304.)
  158. 23204.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3.5. Credit for Prepaid Tax [23201 - 23204] ( Article 3.5 added by Stats. 1971, Ch. 1304. )

    Verify source ↗

    A taxpayer must file a claim before the deadline to get this article’s credit; otherwise the credit cannot be allowed. A taxpayer suspended for four continuous years starting on or after January 1, 1975 is also barred from the credit.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 3.5. Credit for Prepaid Tax [23201 - 23204] ( Article 3.5 added by Stats. 1971, Ch. 1304. ) ## 23204. (a) No credit under this article shall be allowed or made after four years from the last day prescribed for filing the return for the taxable year of dissolution or withdrawal, or within the periods prescribed under Article 1 of Chapter 22, whichever period expires the latest, unless before the expiration of such period a claim therefor is filed by the taxpayer. (b) Notwithstanding the provisions of Section 23204(a), no credit under this article shall be allowed or made to a taxpayer which has been suspended for a period of four continuous years beginning on or after January 1, 1975. (Amended by Stats. 1977, Ch. 552.)
  159. 23221.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Credit unions covered by this section must prepay a $25 tax when filing with the Secretary of State, unless exempt or waived.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. ) ## 23221. (a) Any credit union that incorporates under the laws of this state or qualifies to transact intrastate business in this state shall thereupon prepay a tax of twenty-five dollars ($25) as provided in Section 23153. The prepayment shall be made to the Secretary of State with the filing of the articles of incorporation or the statement and designation by a foreign corporation. The Secretary of State shall transmit the amount of the prepayment to the Franchise Tax Board. The Franchise Tax Board shall certify to the Secretary of State on an individual or class basis those domestic or foreign corporations that are exempt from prepayment or for which prepayment to the Secretary of State is waived. (b) This section shall become operative and apply beginning on or after January 1, 2001. (Repealed (in Sec. 2) and added by Stats. 1999, Ch. 64, Sec. 3. Effective July 6, 1999. Section operative January 1, 2001, by its own provisions.)
  160. 23222.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A taxpayer that begins doing business in the state during its first taxable year must file the first-year return on time and follow special rules for the second and third taxable years, including a prepayment in some short-year cases.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. ) ## 23222. (a) If a taxpayer commences to do business in this state during its first taxable year its tax for that year shall be adjusted upon the basis of the net income received during that taxable year, at the rate applicable to that year, a credit being allowed for the prepayment of the minimum tax. The return for the first taxable year, which shall be filed within 2 months and 15 days after the close of that year, shall also be the basis for the tax of said taxpayer for its second taxable year, if its first taxable year is a period of 12 months. In every case in which the first taxable year of a taxpayer constitutes a period of less than 12 months, or in which a taxpayer does business for a period of less than 12 months during its first taxable year, said taxpayer shall pay as a prepayment of the tax for its second taxable year a tax based on the income for the first taxable year computed under the law and at the rate applicable to the second taxable year, the same to be due and payable at the same times and in the same manner as if that amount were the entire amount of its tax for that year; and upon the filing of its tax return within 2 months and 15 days after the close of the second taxable year it shall pay a tax for said year, at the rate applicable to that year, based upon its net income received during that year, allowing a credit for the prepayment; but in no event, except as provided in Section 23332, shall the tax for the second taxable year be less than the amount of the prepayment for that year, and said return for its second taxable year shall also be the basis for the tax of said taxpayer for its third taxable year, if the second taxable year constitutes a period of 12 months. (b) The provisions of subdivision (a) shall be applicable only if a taxpayer commenced doing business in this state before January 1, 1972. (Amended by Stats. 1971, 1st Ex. Sess., Ch. 1.)
  161. 23222a

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section says how to measure tax for a commencing taxpayer when the second or later taxable year is a short period, and it sets a minimum tax floor.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. ) ## 23222a. In every case in which the second or succeeding taxable years of a commencing taxpayer constitute a period of less than 12 months or in which the taxpayer does business for a period of less than 12 months during its second or succeeding taxable years, the tax for such year or years shall be measured by the income of that period or periods subject to the continuation of the prepayment procedure outlined in Section 23222. In no event shall the income of any period or periods herein described be used as the measure of the tax for the succeeding taxable year, other than the prepayment, until the last short period is succeeded by a taxable period of 12 months, in which case the income of the last short period shall, if greater than the income of the 12-month period, constitute the measure of the tax for such 12-month period. Thereafter the procedure outlined in Section 23222, in respect of the second and third taxable years, shall apply and the taxpayer shall not be subject to the provisions of this section. In the event that a taxpayer is dissolved or withdraws from this state while subject to the provisions of this section, its tax for the year of dissolution or withdrawal shall be measured by its net income for such year. However, in no event shall the tax be less than the minimum tax provided by Section 23153. The provisions of this section shall be applicable only if a taxpayer commenced doing business in this state before January 1, 1972. (Amended by Stats. 1971, 1st Ex. Sess., Ch. 1.)
  162. 23223.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A taxpayer that first begins doing business in California in a taxable year other than its incorporation or qualification year must compute tax for that year and the next year under Section 23222, and may receive a credit for tax payable under Section 23153.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. ) ## 23223. (a) When any taxpayer commences to do business in this state for the first time in any taxable year other than the year of incorporation or qualification, its tax for that taxable year and for the succeeding taxable year shall be computed in accordance with the provisions of Section 23222 relative to first and second taxable years, a credit being allowed for any tax payable under Section 23153 for the year in which it commences to do business. (b) The provisions of subdivision (a) shall be applicable only if a taxpayer commenced doing business in this state before January 1, 1972. (Amended by Stats. 1971, 1st Ex. Sess., Ch. 1.)
  163. 23224.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A qualifying corporation that starts doing business in the state must follow a special tax schedule and file its returns by a specified deadline.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. ) ## 23224. (a) Notwithstanding the provisions of Section 23222 and Section 23223, if a corporation, which has been subject to the provisions of Chapter 3 commences to do business in this state, its tax shall be computed as follows: (1) Such corporation shall pay a tax under Chapter 3 for the whole of the year it commences to do such business; (2) Such corporation shall, for the taxable year succeeding the year it commences to do business in this state, pay a tax under this chapter measured by its income for that taxable year; (3) Such corporation shall, for its third taxable year, pay a tax, under this chapter, measured by its income for its second taxable year; (4) Notwithstanding any other provisions of this part, such corporation shall file its return for such second and third taxable years on or before the 15th day of the third month following the close of its second taxable year. (b) The provisions of subdivision (a) shall be applicable only if a taxpayer commenced doing business in this state before January 1, 1972. (Amended by Stats. 1971, 1st Ex. Sess., Ch. 1.)
  164. 23224.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A corporation covered by Chapter 3 that starts doing business in the state after December 31, 1971 must pay Chapter 3 tax for the entire taxable year it begins business.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. ) ## 23224.5. (a) After December 31, 1971, if a corporation which has been subject to the provisions of Chapter 3 commences to do business in this state, such corporation shall pay a tax under Chapter 3 for the whole of the taxable year it commences to do such business. (b) For the purposes of Sections 23151.1 and 23183.1, the first taxable year subsequent to the taxable year the corporation commences to do such business (as described in subdivision (a)) shall be treated as the taxable year of commencement. (Amended by Stats. 1977, Ch. 552.)
  165. 23225.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. )

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    Any adjusted tax amount that exceeds the prepayment for the taxable year is due and payable under the payment rules in Article 2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. ) ## 23225. The adjusted tax, as provided in Sections 23222 to 23224.5, inclusive, for any taxable year in excess of the prepayment for that year, shall be due and payable as provided in Article 2 (commencing with Section 18601) of Chapter 2 of Part 10.2. (Amended by Stats. 1993, Ch. 31, Sec. 34. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  166. 23226.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. )

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    The Franchise Tax Board may distribute or apportion deferred income, or related deductions, when needed to prevent tax avoidance or clearly reflect the taxpayer’s income.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 4. Commencing Corporations [23221 - 23226] ( Article 4 added by Stats. 1949, Ch. 557. ) ## 23226. In the case of the taxpayer taxable in the manner provided in Sections 23222 to 23224.5, inclusive, reporting income from any source on a deferred basis, the Franchise Tax Board is authorized to distribute or apportion such income, or deductions applicable thereto, if it determines that such distribution or apportionment is necessary in order to prevent avoidance of taxes or clearly to reflect the income of the taxpayer. (Amended by Stats. 1977, Ch. 552.)
  167. 2325.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 9. Reporting Tax Levies [2325 - 2326] ( Article 9 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    Each local agency must report its property tax rate to the Controller within 15 days after the rate is fixed, using a form the Controller specifies.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 9. Reporting Tax Levies [2325 - 2326] ( Article 9 added by Stats. 1973, Ch. 358. ) ## 2325. Annually, no later than 15 days after the property tax rate for a local agency has been fixed, each local agency shall report to the Controller, on a form to be specified by the Controller, the property tax rate levied by, or on behalf of, the agency for the current fiscal year. That information shall show the amount of the rate, if any, levied pursuant to Sections 2260, 2261, 2262, 2263, 2263.1, 2263.2, 2264, 2265, 2266, 2266.1, 2267, 2270, 2271, 2272, 2273, 2274, 2275, 2276, 2277, 2278, 2279 and 2280. That information shall also show any property tax rate authorized or levied pursuant to the provisions of Article 6 (commencing with Section 2285), Article 7 (commencing with Section 2295), and Article 8 (commencing with Section 2305). Information with respect to any rate levied pursuant to Section 2270 shall also indicate the rate levied to pay interest and redemption charges on bonded indebtedness, the rate levied to pay the cost of retirement and pension benefits and the rate levied to make payments to special funds as required by charter. The Controller shall, by regulation, require any tax rate exempt from rate limitations imposed by this chapter to be reported in the manner specified by this section. (Amended by Stats. 1983, Ch. 1281, Sec. 22. Effective September 30, 1983.)
  168. 2325.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 9. Reporting Tax Levies [2325 - 2326] ( Article 9 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    If the Controller finds an error in a property tax rate, the Controller must notify the local agency, and the local agency must reduce the rate for the next fiscal year.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 9. Reporting Tax Levies [2325 - 2326] ( Article 9 added by Stats. 1973, Ch. 358. ) ## 2325.1. In the event that the Controller determines that an error has occurred in establishing a property tax rate levied pursuant to any provision of this chapter, he shall immediately notify the local agency of such error and the local agency shall reduce its property tax rate by an appropriate amount for the next succeeding fiscal year. In the event that a local agency fails to make such a reduction in its property tax rate, the Controller shall request the Attorney General to bring an action under Chapter 2 (commencing with Section 1084) of Title 1 of Part 3 of the Code of Civil Procedure to force a reduction in the rate. (Amended by Stats. 1977, Ch. 309.)
  169. 23251.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 5. Reorganized Corporations [23251 - 23253] ( Article 5 added by Stats. 1949, Ch. 557. )

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    This section says “reorganization” means the same thing as in Section 368 of the Internal Revenue Code.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 5. Reorganized Corporations [23251 - 23253] ( Article 5 added by Stats. 1949, Ch. 557. ) ## 23251. The term “reorganization,” as used in this chapter, shall have the same meaning as that term is defined in Section 368 of the Internal Revenue Code. (Amended by Stats. 1984, Ch. 938, Sec. 26.2. Effective September 7, 1984.)
  170. 23253.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 5. Reorganized Corporations [23251 - 23253] ( Article 5 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Section 381(b) of the Internal Revenue Code applies when deciding when the taxable year closes, and if that creates a short period year, the transferor’s short year tax is computed under the listed California provisions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 5. Reorganized Corporations [23251 - 23253] ( Article 5 added by Stats. 1949, Ch. 557. ) ## 23253. Section 381(b) of the Internal Revenue Code, relating to operating rules, shall apply in determining the close of the taxable year. If a short period year is required by use of Section 381(b) of the Internal Revenue Code, the transferor’s short year tax shall be computed using the provisions of Section 23151.1 for general corporations or Section 23181 for banks and financial corporations. (Amended by Stats. 2000, Ch. 862, Sec. 56. Effective January 1, 2001.)
  171. 2326.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 9. Reporting Tax Levies [2325 - 2326] ( Article 9 added by Stats. 1973, Ch. 358. )

    Verify source ↗

    If a local agency does not file the Section 2325 report by October 15, the Controller must reduce the next fiscal year’s payment to that agency.

    ## Revenue and Taxation Code - RTC ## DIVISION 1. PROPERTY TAXATION [50 - 5911] ( Division 1 enacted by Stats. 1939, Ch. 154. ) ## PART 4. LEVY OF TAX [2151 - 2326] ( Part 4 enacted by Stats. 1939, Ch. 154. ) ## CHAPTER 3. Reimbursement for Costs Mandated by the State [2201 - 2326] ( Heading of Chapter 3 amended by Stats. 1980, Ch. 1256, Sec. 1.7. ) ## ARTICLE 9. Reporting Tax Levies [2325 - 2326] ( Article 9 added by Stats. 1973, Ch. 358. ) ## 2326. If a local agency fails to file the report required by Section 2325 by October 15, the Controller, in the succeeding fiscal year, shall reduce by 10 percent or five thousand dollars ($5,000), whichever is less, the payment he is required to make to such agency based on claims filed pursuant to Section 16113 of the Government Code. (Added by Stats. 1973, Ch. 358.)
  172. 23281.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 6. Corporations Resuming Business [23281 - 23282] ( Article 6 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    If a taxpayer resumes doing business after stopping, the tax for that year is calculated under the section’s rules and must be paid when due.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 6. Corporations Resuming Business [23281 - 23282] ( Article 6 added by Stats. 1949, Ch. 557. ) ## 23281. (a) (1) When a taxpayer ceases to do business within the state during any taxable year and does not dissolve or withdraw from the state during that year, and does not resume doing business during the succeeding taxable year, its tax for the taxable year in which it resumes doing business prior to January 1, 2000, shall be the greater of the following: (A) The tax computed upon the basis of the net income of the income year in which it ceased doing business, except where the income has already been included in the measure of a tax imposed by this chapter. (B) The minimum tax prescribed in Section 23153. (2) When a taxpayer ceases to do business within the state during any taxable year and does not dissolve or withdraw from the state during that year, and does not resume doing business during the succeeding taxable year, its tax for the taxable year in which it resumes doing business, on or after January 1, 2000, shall be according to or measured by its net income for the taxable year in which it resumes doing business. (b) The tax shall be due and payable at the time the corporation resumes doing business, or on or before the due date of the return for its taxable year, whichever is later. All the provisions of this part relating to delinquent taxes shall be applicable to the tax if it is not paid on or before its due date. (c) This section does not apply to a corporation that became subject to Chapter 3 (commencing with Section 23501) after it discontinued doing business in this state (see Section 23224.5). (d) The amendments made to this section by the act adding this subdivision shall apply to taxable years beginning on or after January 1, 2016. (Amended by Stats. 2016, Ch. 348, Sec. 4. (AB 1775) Effective January 1, 2017.)
  173. 23282.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 6. Corporations Resuming Business [23281 - 23282] ( Article 6 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A taxpayer that revives after a suspension or forfeiture must calculate its tax under the stated revivor rules and may have to prepay the minimum tax before a certificate of revivor is issued.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 6. Corporations Resuming Business [23281 - 23282] ( Article 6 added by Stats. 1949, Ch. 557. ) ## 23282. (a) The tax imposed upon any taxpayer which has suffered the suspension or forfeiture provided in Section 23301, and which revives in any taxable year other than the taxable year in which suspension or forfeiture occurred, shall be computed in the same manner as provided in Sections 23222 to 23224, inclusive, relative to the computation of taxes upon taxpayers commencing to do business for the first time after incorporation or qualification. In addition to the taxes, penalties, and interest specified in Section 23305, such taxpayer shall prepay a tax in an amount equal to the minimum tax provided for in Section 23153 as a condition precedent to the issuance of a certificate of revivor. (b) After December 31, 1971, and before January 1, 2000, the tax imposed upon any taxpayer which has suffered the suspension or forfeiture provided in Section 23301, and which revives in any taxable year other than the taxable year in which suspension or forfeiture occurred, shall be— (1) In the case of a taxpayer which was doing business in the year next preceding the year in which revivor took place, computed upon the basis of the net income for that next preceding income year, (2) In the case of a taxpayer which resumed doing business in the year of revivor, computed upon the basis of the net income for the year in which it ceased doing business, unless such income is or has otherwise been subject to tax, (3) In the case of a taxpayer which first commences to do business in the year of revivor, the minimum tax provided in Section 23153, (4) In no event less than the minimum tax provided in Section 23153. In addition to the taxes, penalties, and interest specified in Section 23305, such taxpayer shall prepay the minimum tax imposed by this subdivision as a condition precedent to the issuance of a certificate of revivor. (c) After December 31, 1999, the tax imposed upon any taxpayer that has suffered the suspension or forfeiture provided in Section 23301, and that revives in any taxable year other than the taxable year in which suspension or forfeiture occurred, shall be computed upon the basis of the net income for the taxable year in which it revives, but in no event less than the minimum tax provided in Section 23153. (Amended by Stats. 2000, Ch. 862, Sec. 58. Effective January 1, 2001.)
  174. 23301.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A taxpayer’s powers, rights, and privileges may be suspended or forfeited if certain taxes, penalties, interest, or liabilities are not paid by the stated deadlines, except for exempt-status filing or related article amendments.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23301. Except for the purposes of filing an application for exempt status or amending the articles of incorporation or organization as necessary either to perfect that application or to set forth a new name, the powers, rights, and privileges of a domestic taxpayer may be suspended, and the exercise of the powers, rights, and privileges of a foreign taxpayer in this state may be forfeited, if any of the following conditions occur: (a) If any tax, penalty, or interest, or any portion thereof, that is due and payable under Chapter 4 (commencing with Section 19001) of Part 10.2, or under this part, either at the time the return is required to be filed or on or before the 15th day of the 9th month following the close of the taxable year, is not paid on or before 6 p.m. on the last day of the 12th month after the close of the taxable year. (b) If any tax, penalty, or interest, or any portion thereof, due and payable under Chapter 4 (commencing with Section 19001) of Part 10.2, or under this part, upon notice and demand from the Franchise Tax Board, is not paid on or before 6 p.m. on the last day of the 11th month following the due date of the tax. (c) If any liability, or any portion thereof, which is due and payable under Article 7 (commencing with Section 19131) of Chapter 4 of Part 10.2, is not paid on or before 6 p.m. on the last day of the 11th month following the date that the tax liability is due and payable. (Amended by Stats. 2024, Ch. 80, Sec. 121. (SB 1525) Effective January 1, 2025.)
  175. 23301.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    If a taxpayer does not file a tax return required by this part, the state may suspend a domestic taxpayer’s powers, rights, and privileges and may forfeit a foreign taxpayer’s powers, rights, and privileges in this state, except for specified exempt-status filing and related amendment purposes.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23301.5. Except for the purposes of filing an application for exempt status or amending the articles of incorporation or organization as necessary either to perfect that application or to set forth a new name, the powers, rights, and privileges of a domestic taxpayer may be suspended, and the exercise of the powers, rights, and privileges of a foreign taxpayer in this state may be forfeited, if a taxpayer fails to file a tax return required by this part. (Amended by Stats. 2023, Ch. 209, Sec. 3. (AB 1765) Effective January 1, 2024.)
  176. 23301.6.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    These sections apply to a foreign taxpayer only if the taxpayer is qualified or registered to do business in California.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23301.6. Sections 23301, 23301.5, and 23775 shall apply to a foreign taxpayer only if the taxpayer is qualified or registered to do business in California. A taxpayer that is required under Section 2105 or 17708.02 of the Corporations Code to qualify or register to do business shall not be deemed to have qualified or registered to do business for purposes of this article unless the taxpayer has in fact qualified or registered with the Secretary of State. (Amended by Stats. 2023, Ch. 209, Sec. 4. (AB 1765) Effective January 1, 2024.)
  177. 23302.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    This section says when a taxpayer’s suspension or forfeiture becomes effective, requires notice-related steps, and bars the taxpayer from selling, transferring, or exchanging California real property during the suspension or forfeiture period.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23302. (a) Forfeiture or suspension of a taxpayer’s powers, rights, and privileges pursuant to Section 23301, 23301.5, or 23775 shall occur and become effective only as expressly provided in this section in conjunction with Section 21020, which requires notice prior to the suspension of a taxpayer’s powers, rights, and privileges. (b) The notice requirements of Section 21020 shall also apply to any forfeiture of a taxpayer’s powers, rights, and privileges pursuant to Section 23301, 23301.5, or 23775 and to any voidability pursuant to subdivision (d) of Section 23304.1. (c) The Franchise Tax Board shall transmit the names of taxpayers to the Secretary of State as to which the suspension or forfeiture provisions of Section 23301, 23301.5, or 23775 are or become applicable, and the suspension or forfeiture therein provided for shall thereupon become effective. The certificate of the Secretary of State shall be prima facie evidence of the suspension or forfeiture. (d) If a taxpayer’s powers, rights, and privileges are forfeited or suspended pursuant to Section 23301, 23301.5, or 23775, without limiting any other consequences of such forfeiture or suspension, the taxpayer shall not be entitled to sell, transfer, or exchange real property in California during the period of forfeiture or suspension. (Amended by Stats. 2023, Ch. 209, Sec. 5. (AB 1765) Effective January 1, 2024.)
  178. 23303.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A taxpayer that does business or earns income while suspended or forfeited remains subject to tax under this chapter.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23303. Notwithstanding the provisions of Section 23301 or 23301.5, any taxpayer that transacts business or receives income within the period of its suspension or forfeiture shall be subject to tax under the provisions of this chapter. (Amended by Stats. 2023, Ch. 209, Sec. 6. (AB 1765) Effective January 1, 2024.)
  179. 23304.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    Certain contracts made in California by a suspended taxpayer or by a noncompliant taxpayer can be voidable by the other contracting party.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23304.1. (a) Every contract made in this state by a taxpayer during the time that the taxpayer’s powers, rights, and privileges are suspended or forfeited pursuant to Section 23301, 23301.5, or 23775 shall, subject to Section 23304.5, be voidable at the request of any party to the contract other than the taxpayer. (b) If a foreign taxpayer that neither is qualified to do business nor has an account number from the Franchise Tax Board, fails to file a tax return required under this part, any contract made in this state by that taxpayer during the applicable period specified in subdivision (c) shall, subject to Section 23304.5, be voidable at the request of any party to the contract other than the taxpayer. (c) (1) For purposes of subdivision (b), the applicable period shall be the period beginning on January 1, 1991, or the first day of the taxable year for which the taxpayer has failed to file a return, whichever is later, and ending on the earlier of the date the taxpayer qualified to do business in this state or the date the taxpayer obtained an account number from the Franchise Tax Board. (2) With regard to a limited liability company, the applicable period shall be the period beginning on January 1, 2014, or the first day of the taxable year for which the taxpayer has failed to file a return, whichever is later, and ending on the earlier of the date the taxpayer qualified to do business in this state or on the date the taxpayer obtained an account number from the Franchise Tax Board. (d) If a taxpayer fails to file a tax return required under this part, to pay any tax or other amount owing to the Franchise Tax Board under this part or to file any statement or return required under Section 23772 or 23774, within 60 days after the Franchise Tax Board mails a written demand therefor, any contract made in this state by the taxpayer during the period beginning at the end of the 60-day demand period and ending on the date relief is granted under Section 23305.1, or the date the taxpayer qualifies to do business in this state, whichever is earlier, shall be voidable at the request of any party to the contract other than the taxpayer. This subdivision shall apply only to a taxpayer if the taxpayer has an account number from the Franchise Tax Board, but has not qualified to do business under the Corporations Code. In the case of a taxpayer that has not complied with the 60-day demand, the taxpayer’s name, Franchise Tax Board account number, date of the demand, date of the first day after the end of the 60-day demand period, and the fact that the taxpayer did not within that period pay the tax or other amount or file the statement or return, as the case may be, shall be a matter of public record. (Amended by Stats. 2014, Ch. 325, Sec. 3. (AB 1143) Effective September 15, 2014.)
  180. 23304.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A party may exercise the right to declare a contract voidable only in a lawsuit in a court of competent jurisdiction, and the court must order rescission only with the stated protections for the taxpayer.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23304.5. A party that has the right to declare a contract to be voidable pursuant to Section 23304.1 may exercise that right only in a lawsuit brought by either party with respect to the contract in a court of competent jurisdiction and the rights of the parties to the contract shall not be affected by Section 23304. 1 except to the extent expressly provided by a final judgment of the court, which judgment shall not be issued unless the taxpayer is allowed a reasonable opportunity to cure the voidability under Section 23305.1. If the court finds that the contract is voidable under Section 23304.1, the court shall order the contract to be rescinded. However, in no event shall the court order rescission of a taxpayer’s contract unless the taxpayer receives full restitution of the benefits provided by the taxpayer under the contract. (Added by Stats. 1990, Ch. 926, Sec. 8.)
  181. 23305.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A taxpayer with a suspension or forfeiture may be restored if it applies in writing, files required returns, pays amounts due, and the Franchise Tax Board issues a certificate of revivor.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23305. Any taxpayer which has suffered the suspension or forfeiture provided for in Section 23301 or 23301.5 may be relieved therefrom upon making application therefor in writing to the Franchise Tax Board and upon the filing of all tax returns required under this part, and the payment of the tax, additions to tax, penalties, interest, and any other amounts for nonpayment of which the suspension or forfeiture occurred, together with all other taxes, additions to tax, penalties, interest, and any other amounts due under this part, and upon the issuance by the Franchise Tax Board of a certificate of revivor. Application for the certificate on behalf of any taxpayer which has suffered suspension or forfeiture may be made by any stockholder or creditor, by a majority of the surviving trustees or directors thereof, by an officer, or by any other person who has interest in the relief from suspension or forfeiture. (Amended by Stats. 1991, Ch. 1082, Sec. 6. Applicable to income years beginning on or after January 1, 1991, by Sec. 12 of Ch. 1082.)
  182. 23305.1.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

    Verify source ↗

    A taxpayer may ask the Franchise Tax Board for relief from contract voidability, but must file the application in the prescribed form, state the requested relief period, file required returns, and pay amounts owed and any required penalty unless a voluntary disclosure agreement exception applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23305.1. (a) A taxpayer may make application to the Franchise Tax Board for relief from the voidability provisions of Section 23304.1. To be relieved from voidability, the taxpayer shall do all of the following: (1) Provide the Franchise Tax Board with an application for relief from contract voidability in a form and manner prescribed by the Franchise Tax Board. (2) Include on the application the period for which relief is requested in accordance with subdivision (b). (3) File any tax returns required to be filed under this part with the Franchise Tax Board, including returns for the period for which relief is requested. (4) Pay any tax, additions to tax, penalties, interest, and any other amounts owing to the Franchise Tax Board, including any liability attributable to the period for which relief is requested. (5) Pay any penalty imposed under subdivision (b) for the period for which relief is requested. (6) In the case of a taxpayer that applies for and enters into an approved voluntary disclosure agreement in accordance with Article 8 (commencing with Section 19191) of Chapter 4 of Part 10.2, for purposes of this section, the taxpayer shall be considered to have met the requirements of paragraphs (3), (4), and (5) if the taxpayer fulfills to the satisfaction of the Franchise Tax Board all the specifications of the voluntary disclosure agreement within the meaning of paragraph (2) of subdivision (d) of Section 19191 and if the Franchise Tax Board has not found that any of the circumstances described in Section 19194 has rendered the voluntary disclosure agreement null and void. (b) (1) Except as provided in paragraph (2), both of the following shall apply: (A) The period for which relief is requested shall begin on the date that one of the taxpayer’s taxable years begins and ends on the date that relief is granted. (B) The Franchise Tax Board shall assess a daily penalty equal to one hundred dollars ($100) for each day of the period for which relief from voidability is granted, but not to exceed a total penalty equal to the amount of the tax for the period for which relief is requested. (2) If an application for relief from voidability is filed for a period in which an application for revivor has been filed and the certificate of revivor has been issued, all of the following shall apply: (A) The period for which relief is requested shall begin on the date the taxpayer’s powers, rights, and privileges had been suspended or forfeited and ends on the date relief is granted. (B) The Franchise Tax Board shall assess a daily penalty equal to one hundred dollars ($100) for each day of the period for which relief from voidability is granted, but not to exceed a total penalty equal to that amount of the tax that would be imposed under Sections 17941 and 17942 or Section 23151 and, except as provided in subparagraph (C), that penalty shall be equal to no less than the amount of the minimum tax provided under Section 17941 or 23153 for the period for which relief is requested. (C) In the case of an exempt organization or trust subject to Article 2 (commencing with Section 23731) of Chapter 4 (the tax on unrelated business taxable income), the daily penalty provided in subparagraph (B) shall not exceed a total penalty equal to the amount of tax imposed upon its unrelated business taxable income for the period for which relief is requested. (3) Any penalty imposed under this subdivision shall, subject to Section 23305.2, be due and payable on demand by the Franchise Tax Board. (c) (1) Upon satisfaction of the conditions specified in subdivision (a), including through the application of Section 23305.2, the following shall apply: (A) All contracts entered into during the period for which relief is granted that have not been rescinded by a final court order pursuant to Section 23304.5 may be enforced in the same manner and to the same extent, with regard to both the parties to the contract and any third parties, as if the contract had never been voidable. (B) Any sale, transfer, or exchange of real property in California during the period for which relief is granted and which the taxpayer at that time was not entitled to sell, transfer, or exchange by reason of subdivision (d) of Section 23302 and which has not been rescinded by a final court order pursuant to Section 23304.5, shall be as valid as if the taxpayer had not been subject to subdivision (d) of Section 23302 at the time of the sale, transfer, or exchange. (2) Upon being granted relief from voidability, the Franchise Tax Board shall certify that relief to the taxpayer in a form and manner as prescribed by the Franchise Tax Board. The certificate shall be issued or mailed to the taxpayer, or as directed by the taxpayer, and shall indicate the period for which relief is granted. (d) The fact that a certificate of relief from voidability was issued pursuant to this section and the information contained on that certificate shall be subject to public disclosure. The certificate shall be prima facie evidence of the relief from voidability for contracts entered into during the period of relief stated on the certificate and the certificate may be recorded in the office of the county recorder of any county of this state. (e) Subject to limitations set forth in Section 17 of Chapter 926 of the Statutes of 1990, a taxpayer that received a certificate of revivor between January 1, 1990, and January 1, 1991, may apply for relief from voidability under this section. (Amended by Stats. 2023, Ch. 209, Sec. 7. (AB 1765) Effective January 1, 2024.)
  183. 23305.2.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

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    The Franchise Tax Board must issue revivor or voidability-relief certificates if the taxpayer gives acceptable security instead of paying the liability first, and it must tell the applicant what security or liability terms are required.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23305.2. Notwithstanding Sections 23305 and 23305.1 that require a taxpayer to pay any liability to the Franchise Tax Board as a condition to revivor or relief from voidability, the Franchise Tax Board shall issue a certificate of revivor under Section 23305, or of relief from voidability under Section 23305.1, if the taxpayer provides the Franchise Tax Board with an assumption of liability, or a bond, deposit, or other security for taxpayer’s liability, that is acceptable to the Franchise Tax Board. The Franchise Tax Board shall notify the person filing the application for revivor or relief from voidability of the amount of the bond, deposit, or other security, or of the terms of an assumption of liability, that must be furnished as a condition of the revivor or the relief from voidability. Obtaining revivor or voidability relief by securing the debt pursuant to this section shall not constitute an admission of liability by the taxpayer, nor relieve the taxpayer or any individual or corporation from liability for any taxes, additions to tax, penalties, or interest imposed by this part. A taxpayer that provides an assumption of liability or a bond, deposit, or other security to obtain revivor or relief from voidability may, notwithstanding Section 23305 or 23305.1, file any returns required under those sections within a reasonable time after relief is granted by the Franchise Tax Board. (Amended by Stats. 1997, Ch. 605, Sec. 68. Effective January 1, 1998.)
  184. 23305.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

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    This section defines “taxpayer,” and clarifies that certain LLC-related terms include LLC organization documents and certain taxes and fees.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23305.5. For purposes of this article: (a) “Taxpayer” means either: (1) A corporation subject to tax under this chapter. (2) A business entity organized under a statute or law, under a state or a federally recognized Indian tribe, under another jurisdiction, if the statute or law describes or refers to the entity as a limited liability company or if regulations of the Franchise Tax Board identify a business entity organized under the laws of a foreign country as a limited liability company. (b) With regard to a limited liability company: (1) “Articles of incorporation” shall include a limited liability company’s articles of organization. (2) “Tax” shall include the tax and fee imposed by Sections 17941 and 17942, or former Sections 23091 and 23092, respectively. (Amended by Stats. 2014, Ch. 325, Sec. 4. (AB 1143) Effective September 15, 2014.)
  185. 23305a

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

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    Before issuing a certificate of revivor, the Franchise Tax Board must get a required endorsement from the Secretary of State; once issued, the named taxpayer is reinstated.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23305a. Before the certificate of revivor is issued by the Franchise Tax Board, it shall obtain from the Secretary of State an endorsement upon the application of the fact that the name of the taxpayer then meets the requirements of subdivision (b) of Section 201 or subdivision (b) of Section 17701.08 of the Corporations Code in the case of a domestic taxpayer or of subdivision (b) of Section 2106 or Section 17708.05 of the Corporations Code in the case of a foreign taxpayer that has qualified to do business. The reference to amendment of the articles of incorporation to set forth a new name contained in Sections 23301, 23301.5, and 23775 includes in the case of a foreign taxpayer the filing of an amended statement and designation to set forth its new name or to set forth an assumed name under subdivision (b) of Section 2106 or Section 17708.05 of the Corporations Code. Upon the issuance of the certificate by the Franchise Tax Board the taxpayer therein named shall become reinstated but the reinstatement shall be without prejudice to any action, defense, or right which has accrued by reason of the original suspension or forfeiture, except that contracts which were voidable pursuant to Section 23304.1, but which have not been rescinded pursuant to Section 23304.5, may have that voidability cured in accordance with Section 23305.1. The certificate of revivor shall be prima facie evidence of the reinstatement and the certificate may be recorded in the office of the county recorder of any county of this state. (Amended by Stats. 2024, Ch. 80, Sec. 122. (SB 1525) Effective January 1, 2025.)
  186. 23305b

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

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    The Franchise Tax Board may revive a taxpayer to good standing without full payment if it believes that will improve collection of the amount due.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23305b. Notwithstanding Section 23305, the Franchise Tax Board may revive a taxpayer to good standing without full payment of the taxes, penalties, and interest due if it determines that the revivor will improve the prospects for collection of the full amount due. This revivor may be limited as to time or may limit the functions the revived taxpayer can perform, or both. The taxpayer’s powers, rights, and privileges may again be suspended or forfeited if the Franchise Tax Board determines that the prospects for collection of the full amount due have not been improved by the revivor of the taxpayer. (Amended by Stats. 2023, Ch. 209, Sec. 9. (AB 1765) Effective January 1, 2024.)
  187. 23305c

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

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    When a certificate of revivor is issued, the Franchise Tax Board must send the revived taxpayer’s name and entity number to the Secretary of State, and related revivor information becomes public record.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23305c. (a) Upon issuance of the certificate of revivor, the Franchise Tax Board shall transmit to the Secretary of State the revived taxpayer’s name and its entity number. (b) The taxpayer’s name and number, the fact that the taxpayer’s powers, rights, and privileges have been revived and the effective date of the revivor shall be a matter of public record. (c) If the Franchise Tax Board determines that a suspension or forfeiture was in error by the Franchise Tax Board, the Franchise Tax Board shall, in connection with the revivor, indicate that the taxpayer is “restored.” The status of the restored taxpayer shall be retroactive to the date of suspension or forfeiture as if there had been no suspension or forfeiture. (d) If the Franchise Tax Board determines that the mailing of the 60-day demand notice referred to in subdivision (d) of Section 23304.1 was in error or that the Franchise Tax Board’s original determination as to compliance with the 60-day demand notice was in error, the Franchise Tax Board’s revised conclusions also shall be part of the public record referred to in that subdivision. (Amended by Stats. 2023, Ch. 209, Sec. 10. (AB 1765) Effective January 1, 2024.)
  188. 23305d

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

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    A Franchise Tax Board certificate about a suspended or forfeited taxpayer can serve as prima facie evidence of the stated facts.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23305d. A certificate of suspension or forfeiture from the Franchise Tax Board setting forth that the suspended or forfeited taxpayer has been notified of its liability for tax or requirement to file a return under this part and that the tax has not been paid or the return has not been filed, shall constitute prima facie evidence of the facts. (Added by renumbering Section 23572 by Stats. 1990, Ch. 926, Sec. 16.)
  189. 23305e

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

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    The Franchise Tax Board may issue letters of good standing for a charge based on its reasonable costs, and the fees must be handled under Section 19604.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23305e. (a) The Franchise Tax Board may provide letters of good standing, verifying a taxpayer’s status for doing business in California, at a charge reflecting the reasonable costs to the department of responding to these requests. (b) Fees received under this section shall be handled in accordance with Section 19604. (Amended by Stats. 2023, Ch. 209, Sec. 11. (AB 1765) Effective January 1, 2024.)
  190. 23310.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

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    The Franchise Tax Board may abate certain unpaid qualified taxes, interest, and penalties for a qualified entity if the entity requests abatement in writing and certifies it has stopped doing business and has no remaining business assets.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23310. (a) The Franchise Tax Board may abate, upon written request by a qualified entity, unpaid qualified taxes, interest, and penalties for the taxable years in which the qualified entity certifies, under penalty of perjury, that it was not doing business, within the meaning of subdivision (a) of Section 23101, has ceased doing business, and does not have any remaining assets in the business. (b) For purposes of this section: (1) “Qualified entity” means a domestic corporation subject to Division 1 (commencing with Section 100) of Title 1 of the Corporations Code or a domestic limited liability company subject to Title 2.6 (commencing with Section 17701.01) of the Corporations Code that satisfies either of the following conditions: (A) Was never doing business, within the meaning of subdivision (a) of Section 23101, in this state at any time after the time of its incorporation in this state. (B) Was previously doing business, within the meaning of subdivision (a) of Section 23101, and has filed all returns required under Section 18601, 18633, or 18633.5 for the tax years prior to cessation of doing business. (2) “Qualified taxes, interest, and penalties” means tax imposed under Section 17941 or 23153, and associated interest and penalties, and any penalties imposed under Section 19141. “Qualified taxes, interest, and penalties” does not include tax imposed under Section 17942, 23501, or 23731, or associated interest or penalties, and does not include additional tax, penalties, or interest resulting from a final or pending state or federal audit. (c) In no instance shall the taxes abated pursuant to subdivision (a) exceed the minimum or annual tax imposed under Section 17941 or 23153. (d) A qualified entity shall establish that it has ceased all business operations and has no remaining assets at the time of filing the request for abatement pursuant to this section. (e) The abatement of unpaid qualified tax, interest, and penalties pursuant to this section is conditioned on the dissolution of a corporation or the cancellation of a limited liability company of the qualified entity with the Secretary of State prior to the abatement. (f) (1) The Franchise Tax Board may prescribe any regulations that may be necessary or appropriate to implement the purposes of this section. (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section. (Added by Stats. 2018, Ch. 679, Sec. 3. (AB 2503) Effective January 1, 2019.)
  191. 23311.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. )

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    If a qualified entity that was dissolved or canceled keeps doing business or has undisclosed assets, the previously abated tax, interest, and penalties become immediately due, and an added penalty applies.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 7. Suspension and Revivor [23301 - 23311] ( Article 7 added by Stats. 1949, Ch. 557. ) ## 23311. (a) If a qualified entity, as defined by Section 23310, has been dissolved or canceled as described by Section 23310, but continues to do business within the meaning of subdivision (a) of Section 23101, or has any remaining assets which were not disclosed by the qualified entity at the time of request for abatement under Section 23310, the total tax, interest, and penalties that were abated pursuant to Section 23310 shall be immediately due and payable. In addition, a penalty in an amount equal to 50 percent of the total tax abated pursuant to Section 23310, plus accrued interest payable pursuant to Section 19101 on that amount for the period or periods beginning on the last date prescribed by law for the payment of that tax, determined without regard to extensions, and ending on the date the tax was abated, shall be imposed. (b) The penalty imposed by this section is in addition to any other penalty imposed under Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401) and Part 11 (commencing with Section 23001). (c) Article 3 (commencing with Section 19031) of Chapter 4 of Part 10.2, relating to deficiency assessments, shall not apply with respect to the assessment or collection of any penalty imposed by subdivision (a) or to previously abated tax, interest, and penalties that are due and payable pursuant to this section. (Added by Stats. 2018, Ch. 679, Sec. 4. (AB 2503) Effective January 1, 2019.)
  192. 23331.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. )

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    This section defines when dissolution or withdrawal becomes effective and requires the Secretary of State to recommend certified-mail filing for required documents and to provide a filing response within 21 days of receipt.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. ) ## 23331. (a) For the purposes of this article, the effective date of dissolution of a corporation is the date on which the certified copy of the court decree, judgment, or order declaring the corporation duly wound up and dissolved is filed in the office of the Secretary of State or the date on which the certificate of winding up, if necessary, and the certificate of dissolution are filed in the office of the Secretary of State. For the purposes of this article, the effective date of withdrawal of a foreign corporation is the date on which the certificate of withdrawal is filed in the office of the Secretary of State. (b) The Secretary of State shall, through an information program and by forms and instructions provided to taxpayers, recommend that all documents required by this article to be filed with the Secretary of State be sent, if mailed, by certified mail with return receipt requested. The Secretary of State shall also provide the taxpayers a filing response within 21 days of receipt. (Amended by Stats. 2022, Ch. 617, Sec. 131. (SB 1202) Effective January 1, 2023.)
  193. 23332.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. )

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    Dissolving or withdrawing taxpayers pay tax only for the months before the effective date, with a minimum tax still due, and a corporation can avoid the minimum franchise tax if it files a timely final return, stops doing business, and files the required dissolution, surrender, or cancellation document on time.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. ) ## 23332. (a) Except in the case of a taxpayer subject to the provisions of Section 23222a, any taxpayer which is dissolved or withdraws from the state during any taxable year shall pay a tax only for the months of the taxable year which precede the effective date of the dissolution or withdrawal, according to or measured by (1) the net income of the preceding income year or (2) a percentage of net income determined by ascertaining the ratio which the months of the taxable year, preceding the effective date of dissolution or withdrawal, bears to the months of the income year, whichever is the lesser amount. The taxes levied under this chapter shall not be subject to abatement or refund because of the cessation of business or corporate existence of any taxpayer pursuant to a reorganization, consolidation, or merger (as defined by Section 23251). In any event, each corporation shall pay a tax not subject to offset for the period in an amount equal to the minimum tax prescribed by Section 23153. (b) The provisions of subdivision (a) shall be applied only with respect to taxpayers which dissolve or withdraw before January 1, 1973. On and after that date, the tax for the taxable year in which the taxpayer ceases doing business, dissolves, or withdraws shall be determined under the appropriate provisions of Section 23151.1, 23153, 23181, or 23183, whichever is applicable. (c) (1) A corporation shall not be subject to the minimum franchise tax imposed by this chapter for a taxable year if the corporation does all of the following: (A) Files a timely final franchise tax return for a taxable year with the Franchise Tax Board. (B) Does not do business in this state after the end of the taxable year for which the final franchise tax return was filed. (C) (i) In the case of a corporation other than a corporation described in clause (ii), files a certificate of dissolution or surrender with the Secretary of State, in accordance with Sections 1809, 1905, 2112, 6615, 8615, and 12635 of the Corporations Code and Section 3126 of the Financial Code, before the end of the 12-month period beginning with the date the final franchise tax return was filed. (ii) In the case of a limited liability company that is a corporation pursuant to subdivision (c) of Section 23038, files a certificate of cancellation with the Secretary of State, in accordance with Section 17707.02 or 17708.07 of the Corporations Code, before the end of the 12-month period beginning with the date the final franchise tax return was filed. (2) For purposes of this subdivision, a “final franchise tax return” is a return filed pursuant to Section 18601 on or before the due date of the return, as extended, that the taxpayer designates in the manner prescribed by the Franchise Tax Board as the taxpayer’s final franchise tax return for purposes of the tax imposed under this chapter. A final franchise tax return for purposes of the tax imposed under this chapter is a return filed pursuant to Section 18601 where the taxpayer is not required to file a subsequent return to reflect the imposition of tax under this chapter. (Amended by Stats. 2012, Ch. 419, Sec. 29. (SB 323) Effective January 1, 2013. Operative January 1, 2014, by Sec. 32 of Ch. 419.)
  194. 23332.5.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. )

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    If a financial corporation stops doing business, dissolves, or withdraws from the state during a taxable year, its tax for that year must be computed under specified franchise tax provisions.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. ) ## 23332.5. If a financial corporation ceases doing business, dissolves, or withdraws from the state during any taxable year, the tax for the taxable year during which cessation of doing business, dissolution or withdrawal occurs shall be computed as prescribed by subdivision (b) or (d) of Section 23183, 23183.1, or 23183.2. (Amended by Stats. 1997, Ch. 605, Sec. 70. Effective January 1, 1998.)
  195. 23333.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. )

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    A taxpayer subject to Section 23186 that dissolves or withdraws before its rate is determined must pay tax at the maximum rate, with any later overpayment refunded within 30 days if the rate is reduced.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. ) ## 23333. (a) A taxpayer subject to Section 23186 shall, if it dissolves or withdraws prior to the date the rate is determined under Section 23186, pay a tax under Section 23332 at the maximum rate prescribed by Section 23186. If the rate is subsequently determined to be less than the maximum prescribed by Section 23186, a refund shall, within 30 days of that determination, be made as prescribed by Chapter 6 (commencing with Section 19301) of Part 10.2. (b) That part of the tax thus determined which is in excess of the rate specified in Section 23151 shall be collected as a demand for second installment under Chapter 4 (commencing with Section 19001) of Part 10.2. (Amended by Stats. 1993, Ch. 31, Sec. 37. Effective June 16, 1993. Operative January 1, 1994, by Sec. 83 of Ch. 31.)
  196. 23335.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. )

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    A final franchise tax return filed for a dissolution or withdrawal is treated as a request for instructions, and the Franchise Tax Board must give the taxpayer information about the documents that must be filed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 8. Dissolution or Withdrawal [23331 - 23335] ( Article 8 added by Stats. 1949, Ch. 557. ) ## 23335. (a) Any return filed pursuant to Section 18601 that the taxpayer designates in the appropriate place on the form provided by the Franchise Tax Board as the taxpayer’s final franchise tax return as the result of a dissolution or withdrawal shall be treated as a request for information on how to properly dissolve or withdraw. (b) If a taxpayer has filed a return as described in subdivision (a), the Franchise Tax Board shall provide the taxpayer with information regarding all documents that are required by this article to be filed with the Franchise Tax Board and the Secretary of State. (Amended by Stats. 2006, Ch. 773, Sec. 57. Effective September 29, 2006.)
  197. 23361.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 9. Affiliated Railroads [23361 - 23364a] ( Article 9 added by Stats. 1949, Ch. 557. )

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    This section defines “affiliated group” for corporation franchise tax purposes and sets stock-ownership and railroad-business conditions for the definition to apply.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 9. Affiliated Railroads [23361 - 23364a] ( Article 9 added by Stats. 1949, Ch. 557. ) ## 23361. “Affiliated group” means one or more chains of corporations connected through stock ownership with a common parent corporation if during the period when the income was accrued or realized and on the 16th day of the first month after the close of the taxable year— (a) At least 80 percent of the stock of each of the corporations, except the common parent corporation, is owned directly by one or more of the other corporations; and (b) The common parent corporation owns directly at least 80 percent of the stock of at least one of the other corporations; and (c) Each of the corporations except the common parent corporation is either (1) a corporation whose principal business is that of a common carrier by railroad or (2) a corporation the assets of which consist principally of stock in such corporations and which does not itself operate a business other than that of a common carrier by railroad. For the purpose of determining whether the principal business of a corporation is that of a common carrier by railroad, if a common carrier by railroad has leased its railroad properties and such properties are operated as such by another common carrier by railroad, the business of receiving rents for such railroad properties shall be considered as the business of a common carrier by railroad. The provisions of this section shall not preclude the application of Chapter 17 (commencing with Section 25101) of this part. Except in paragraph (c), “stock” does not include nonvoting stock which is limited and preferred as to dividends. (Amended by Stats. 2000, Ch. 862, Sec. 62. Effective January 1, 2001.)
  198. 23362.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 9. Affiliated Railroads [23361 - 23364a] ( Article 9 added by Stats. 1949, Ch. 557. )

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    An affiliated group may file a consolidated tax return instead of separate returns, if all member corporations consent to the regulations and the filing rules are followed.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 9. Affiliated Railroads [23361 - 23364a] ( Article 9 added by Stats. 1949, Ch. 557. ) ## 23362. An affiliated group, subject to the provisions of this article, shall have the privilege of making a consolidated return for the taxable year in lieu of separate returns. The making of a consolidated return shall be upon the condition that all the corporations, which have been members of the affiliated group at any time during the taxable year for which the return is made, consent to all regulations under Section 23363 prescribed prior to the making of such return and the making of a consolidated return shall be considered as such consent. In the case of a corporation, which is a member of the affiliated group for a fractional part of the taxable year, the consolidated return shall include the income of such corporation for such part of the taxable year as it is a member of the affiliated group. In the case of a common parent company which is not itself a common carrier by railroad the consolidated return shall include on a consolidated-return basis only the income received from affiliates which are common carriers by railroad. (Amended by Stats. 2000, Ch. 862, Sec. 63. Effective January 1, 2001.)
  199. 23363.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 9. Affiliated Railroads [23361 - 23364a] ( Article 9 added by Stats. 1949, Ch. 557. )

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    The Franchise Tax Board may prescribe regulations needed to determine and administer the tax liability of affiliated corporations filing a consolidated return.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 9. Affiliated Railroads [23361 - 23364a] ( Article 9 added by Stats. 1949, Ch. 557. ) ## 23363. The Franchise Tax Board shall prescribe such regulations as it may deem necessary in order that the tax liability of any affiliated group of corporations making a consolidated return and of each corporation in the group, both during and after the period of affiliation, may be determined, computed, assessed, collected, and adjusted in such manner as to reflect the proper income. (Amended by Stats. 1951, Ch. 374.)
  200. 23364.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 9. Affiliated Railroads [23361 - 23364a] ( Article 9 added by Stats. 1949, Ch. 557. )

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    For consolidated returns, the tax is computed on the group’s consolidated net income, and the parent and each qualifying subsidiary are jointly liable. Collection against a former subsidiary is barred until the Franchise Tax Board determines the deficiency cannot be collected from the parent or remaining group members.

    ## Revenue and Taxation Code - RTC ## DIVISION 2. OTHER TAXES [6001 - 61050] ( Heading of Division 2 amended by Stats. 1968, Ch. 279. ) ## PART 11. CORPORATION TAX LAW [23001 - 25141] ( Heading of Part 11 amended by Stats. 2001, Ch. 543, Sec. 21. ) ## CHAPTER 2. The Corporation Franchise Tax [23101 - 23364a] ( Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26. ) ## ARTICLE 9. Affiliated Railroads [23361 - 23364a] ( Article 9 added by Stats. 1949, Ch. 557. ) ## 23364. If a consolidated return is made subject to the provisions of this article, the tax imposed under this chapter shall be computed as a unit upon the consolidated net income of the group except as hereinafter provided. The parent corporation and each subsidiary, a member of the group during any part of a consolidated period, shall be severally liable for the tax, including any deficiency in respect thereof, computed upon the consolidated net income of the group. If a subsidiary by reason of a bona fide sale of stock for fair value has ceased to be a member of the affiliated group, its liability shall remain unchanged, except that if such cessation occurred prior to the date upon which any such deficiency is assessed, such deficiency, in the case of such former subsidiary, shall be reduced to an amount equal to such part as may be allocable to it upon the basis of the consolidated net income properly assignable to it. In no case, however, shall any demand for the payment of any deficiency be made, or any proceeding in court for the collection thereof be begun against such former subsidiary prior to the determination by the Franchise Tax Board that the amount of the deficiency cannot be collected from the parent corporation and the corporations, if any, remaining members of the affiliated group. (Amended by Stats. 1951, Ch. 71.)

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