Tax News
New Laws Enacted

Governor Brown used every last minute until the October 9 deadline to consider the bills presented to him. Of the 870 bills passed by the Legislature this year, the Governor signed 745 and vetoed 125, an 86 percent pass rate. In comparison, twenty four of the thirty bills that would impact us were signed into law, an 80 percent pass rate.

Bills affecting us that were enacted during 2011 include:

  • A major tax administration bill that was enacted to protect the state budget and strengthen fiscal stability in California.
  • An FTB-sponsored bill that denies a deduction for specified fraudulent activity.
  • A 2011/2012 fiscal year budget trailer bill.
  • Changes to the top 250 debtors list.
  • Several issue-specific federal conformity bills.

The following table summarizes the chaptered legislation administered
by us:

Bill Number

Description

Chaptered Number

AB 36

Conformity - Medical Care Expense Exclusion/Deduction for Children Under 27

11-17

AB 50

Disaster Loss - Exclusion/Compensation Received for San Bruno Gas Explosion

11-18

AB 152

Credit - Donations of Fresh Fruits/Vegetables to Food Bank

11-503

AB 242

Conformity - Federal Health-Care Reform

11-727

AB 315

Nonadmitted Insurance/Surplus Line Brokers

11-83

AB 361

Benefit Corporations

11-728

AB 560

Extended Inclusion of Architecture Service to January 1, 2019 for Limited Liability Partnerships and Foreign Limited Liability Partnerships

11-291

AB 564

Voluntary Contribution - Municipal Shelter Spay-Neuter Fund Re-established

11-549

AB 624

Credit - Community Development Financial Institutions Investments Credit Extended to December 31, 2017

11-436

AB 764

Voluntary Contribution - Child Victims of Human Trafficking Fund

11-465

AB   971

Voluntary Contribution - California Sea Otter Fund Re-established

11-209

AB 1023

Code Maintenance to Various California Codes

11-296

AB 1069

Credit - California Motion Picture Credit Extended to July 1, 2015

11-731

AB 1369

Broadens Disallowance of Deductions for Expenses and Cost of Goods Sold Attributable to Illegal Activities Broadened

11-454

AB 1423

Conformity - Regulated Investment Company (RIC) Modernization Act of 2010

11-490

AB 1424

Revise Top 250 Tax Debtor List to Top 500/Update Twice Each Year/License Suspension for Debtors on List/Prohibit State Contracts with Debtors on List/Reciprocal Refund Offsets with Other States/Collection Agreements with Other States or IRS

11-455

AB 1428

Disaster Loss - Deductions/Excess Loss Carryover/March 2011 Mendocino County Tsunami

11-283

     

SB 24

State Agencies Notify California Residents of Any Breach of Security of System or Data/Additional Notification Requirements/If Notification to More Than 500 Residents Must Also Submit Electronically to Attorney General

11-197

SB 86

FTB Revise Tax Form Instructions to Include Use Tax Lookup Table/Eliminate Refundable Portion of Child and Dependent Care Expense Credit/Financial Institution Record Match/Voluntary Compliance Initiative

11-14

SB 164

Voluntary Contributions - State Children's Trust Fund and Rare and Endangered Species Preservation Program Extended to December 31, 2017

11-699

SB 559

Business Expense Deduction/Prohibit Deduction for Discriminatory Clubs/Except for Genetic Information

11-261

SB   583

Voluntary Contributions - ALS/Lou Gehrig's Disease Research Fund Re-established

11-711

SB 617

State Agency Regulations/Standardized Impact Analysis/Financial and Administrative Accountability

11-496

SB 647

FTB to Collect Juvenile Court Appointed Counsel Costs

11-308

Below is a table summarizing vetoed legislation that would have been administered by us:

Bill Number

Description

 

AB 172

State Agencies Post Specified Audits and Contracts to the Reporting Transparency In Government Internet Website

AB 1044

Registered Warrants No Redemption Date/Tax Liabilities

   

SB 14

State Budget/Performance-Based Budget

SB 223

Require FTB to Report to the DMV Estimated Revenue Loss from Local Vehicle Assessment in San Francisco

SB 364

Business Tax Incentive Reporting Information and Penalty

SB 508

Require Tax Credit to Have 10 Year Sunset

Back to December 2011 Tax News