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Changes to 2003 Forms

2003 Updates to Form 100W

Revision Date: 03/15/2004

Revision Details: Form 100W - California Corporation Franchise or Income Tax Return - Water's Edge, Schedule H (100W) and Instructions for Schedule H (100W) and the Package X

These revisions are due to the California Court of Appeal ruling that found the R&TC Section 24402 deduction unconstitutional.

  • Form 100W, side 1, line 11b and Page 119 of Package X

It should read:

11b Other dividend deduction. Delete "Attach Schedule H (100W)"

  • Schedule H (100W), Part II, and Page 135 of Package X due to Farmer Bros. Co. v. Franchise Tax Board court decision:

It should read:

Shade all of Part II of Schedule H (100W)

  • Schedule H (100W) Instructions and Page 136 of Package X

It should read:

What's New (added prior to other instructions)

In Farmer Bros. Co. v. Franchise Tax Board (2003) 108 Cal App 4th, 134 Rptr. 2nd 390, the California Court of Appeal found that the R&TC Section 24402 deductible dividend provision discriminated against interstate commerce in violation of the Commerce Clause of the United States Commerce Clause of the United States Constitution. R&TC Section 24402 provided for a deduction to the extent that the dividend payer was taxable in California. A statute that is held to be unconstitutional is invalid and unenforceable. Therefore, the deduction is not available.

  • Schedule H (100W) Instructions, Part II, are deleted in full; page 24, column 1, Part II

It should read:

Part II has been deleted due to the Farmer Bros. Co. v. Franchise Tax Board decision, see What's New paragraph above.

  • Schedule H (100W) Instructions, page 24, column 2, Part III, 2nd paragraph

It should read:

In no event will an R&TC Section 24411 deduction be allowed with respect to a dividend which was eliminated under R&TC Section 25106.

The revised internet version is available for download.

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