CSTC works closely with a Legislative Advocate in Sacramento to keep an eye on important bills that would effect tax payers and small business owners. Please view the bills below that CSTC is currently monitoring:

BILLS RELATING TO, OR OF INTEREST TO, THE TAX PROFESSION

AB 37(Jones-Sawyer) Personal income taxes: deductions: business expenses: commercial cannabis activity.

Clarifies that the federal disallowance of tax expenditures regarding the illegal sale of drugs does not apply under state Personal Income Tax for businesses engaged in licensed cannabis activities.

Status: Passed the Government and Finance committee; to the Appropriations committee

AB 133(Quirk-Silva) Property tax postponement: eligibility: income level.

Modifies the existing $35,500 income eligibility threshold for the Property Tax Postponement Program by making it the greater of either $45,000 or the definition of “low income” for a two-person household. Status: Passed the Government and Finance committee; to the Appropriations committee

AB 136(Quirk-Silva) Personal Income Tax Law: deductions: charitable contributions.

Prohibits taxpayers found guilty in the recent college admissions scandal from benefiting from illegal income tax charitable contribution or business expense deductions.

Status: Hearing in the Government and Finance committee set for June 26 

AB 308(Muratsuchi). Taxation: corporations: minimum franchise tax: limited liability companies: annual tax

Reinstates, until tax year 2028, the minimum franchise tax and the annual tax exemption for a limited liability company or corporation solely owned by a deployed member of the Armed Forces.

Status: Hearing in the Veteran’s Affairs Committee set for June 25 

AB 357(Nazarian). Taxation: tax liability: collections

Provides that for each tax liability due and payable for a particular taxable year, the date upon which the 20-year statute of limitation period commences is the date that the tax liability was first assessed.

Status: Hearing in the Government and Finance committee set for June 26 

AB 1181(Limón). Charitable organizations

Requires financial records of solicitations for charitable purposes to be maintained according to specific standards, and would prohibit charitable organizations from reporting its noncash contributions in a way that is misleading or likely to cause confusion.

Status: Hearing in the Judiciary committee set for July 9 

AB 1521(Committee on Business and Professions). Accountancy: California Board of Accountancy This bill extends by four years, to January 1, 2024, the sunset date of the California Board of Accountancy and its authorization to designate an executive officer.

Status: Referred to the Business, Professions and Economic Development committee

AB 736(Irwin). Taxation: savings plans: qualified ABLE program

Allows for amounts from a 529 education savings account to be rolled over to an Achieving a Better Life Experience (ABLE) account without penalty; conforms to federal law.

Status: Referred to the Business, Professions and Economic Development committee

AB 872(Aguiar-Curry). Property taxation: change in ownership: parent to child transfer: stock. This bill allows for the parent-to-child change in ownership exclusion to apply in an instance when there is transfer of stock in a qualified corporation occurring between January 1, 2014, and January 1, 2020. This exclusion applies to a narrow instance meeting only certain requirements. Status: Referred to the Government and Finance committee

SB 294(Hill). Property taxation: welfare exemption: low income housing.

Increases the welfare exemption cap from $20 million to $250 million in assessed value and decreases the minimum occupancy threshold from 90% to 50% that applies to certain low-income rental housing owned and operated by a non-profit organization that does not receive government financing or tax credits.

Status: Heard in the Revenue and Taxation committee on June 24; no update as of this writing

SB 196(Beall). Property taxes: welfare exemption: community land trust.

Creates a new property tax exemption under the welfare exemption for community land trust-owned property that will be developed into (1) homes sold to low or moderate income households and (2) rental housing available to low income households.

Status: In the Revenue and Taxation committee

SB 349(Portantino). Minimum franchise tax.

Reduces the minimum franchise tax, for taxable years beginning on or after January 1, 2020, based on the gross receipts of the corporation, as specified in the bill.

Status: In the Revenue and Taxation committee

SB 364(Stone). Property taxation: senior and disabled veterans.

Eliminates the annual maximum 2% inflation adjustment applied to the assessed value of a home owned by a veteran who is age 65 or older and whose income does not exceed certain income limits. Requires the State Board of Equalization to, on an annual basis beginning January 1, 2021, and until January 1, 2031, review the effectiveness of these tax benefits and to submit a report to the Legislature.

Status: In the Revenue and Taxation committee

SB 663(Jones). Property taxation: exemptions: veterans’ organizations.

Expands the property tax "veterans' organization" exemption by removing the restriction on fraternal, lodge, or social club uses of veterans' organization-owned property, excluding the bar area.

Status: In the Revenue and Taxation committee

SB 763(Galgiani). Personal income tax: gross income exclusion: discharge of qualified principal residence indebtedness: federal disaster areas.

Excludes mortgage forgiveness debt from gross income for taxpayers whose homes were lost within a federally declared disaster area.

Status: Hearing in the Revenue and Taxation committee scheduled for July 1 

BILLS RELATING TO BUSINESS OWNERS

AB 5(Gonzalez). Worker status: employees and independent contractors

Codifies the decision in the "Dynamex" case and clarifies its application. Provides that the factors of the “ABC” test be applied in order to determine the status of a worker as an employee or independent contractor for all provisions of the Labor Code and the Unemployment Insurance Code, unless another definition or specification of “employee” is provided.

Status: Referred to the Labor, Public Employment, and Retirement Committee

AB 9(Reyes). Employment discrimination: limitation of actions

Extends, from 1 year to 3 years, the deadline for employees to file employment discrimination complaints.

Status: Referred to the Judiciary committee

AB 51(Gonzalez) . Employment discrimination: enforcement. Bans mandatory employment arbitration agreements Status: In the Judiciary committee

AB 171(Gonzalez). Employment: sexual harassment.

Prohibits an employer from discharging or in any manner discriminating or retaliating against an employee because of the employee’s status as a victim of sexual harassment, and establishes a rebuttable presumption of unlawful retaliation.

Status: Pending committee assignment

AB 1554(Gonzalez). Employers: dependent care assistance program: notice to employees.

Requires an employer to notify an employee who participates in a dependent care assistance program provided by the employer of any deadline to withdraw funds before the end of the plan year.

Status: In the Appropriations committee

AB 1607(Boerner Horvath). Gender discrimination: notification.

Requires a local government to provide businesses with a written notice summarizing the provisions of the Gender Tax Repeal Act in various languages. May increase license fees.

Status: In the Government and Finance committee 

SB 688(Monning). Failure to pay wages: penalties

Extends existing provisions for failure to pay minimum wages to wages or compensation that is due under a contract

Status: Scheduled to be heard in the Labor and Employment committee on June 26