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CSTC works closely with a Legislative Consultant to keep an eye on important bills that would affect taxpayers and small business owners. The legislature returned on January 6 and began hearings and floor sessions quickly. Below is an update of bills relating to tax consultants and businesses. More bills may appear in next month’s report as the deadline to introduce new bills is February 21.

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BILL WITH A CSTC POSITION

AB 1140 (Stone): Tax preparers: disclosures.
Requires paid tax preparers to provide all California WITC filers with a written notice, in multiple languages, of all costs and fees prior to starting tax preparation services and to inform clients that they may be eligible for free preparation services and to provide the IRS website for locating such services.
Status: In the Senate, pending committee assignment. 


BILLS ATTEMPTING TO CLARIFY OR REPEAL THE NEW INDEPENDENT CONTRACTOR LAW (AB 5)

AB 1850 (Gonzalez): Employee classification
As amended from a placeholder bill, makes non-substantive changes to last year’s AB 5. More substantive amendments are expected.
Status: Referred to the Labor and Employment Committee.

AB 1925 (Obernolte): Worker status: independent contractors: small businesses
Would exempt small businesses (less than 100 people) from the recently enacted AB 5 independent contractor law.
Status: Referred to the Labor and Employment Committee. 

AB 1928 (Kiley): Employment standards: independent contractors and employees
Reverses AB 5 and the underlying court decision in favor of a separate court decision relating to independent contractors.
Status: Referred to the Labor and Employment Committee.

SB 238 (Grove): Employment relations. Worker status: factors for determination of employee status. Would have replaced current law regarding how a worker should be classified, contractor or employee, roughly on par with comparable federal law as represented in 1938’s Fair Labor Standards Act.
Status: From 2019 and now dead, will be removed from future reports

OTHER BILLS OF INTEREST

AB 1959 (Mayes): Property taxation: assessment appeals: deferral of tax payment.
Would require, upon the filing of an application with a county board of equalization or assessment appeals board for a reduction in an assessment, that the date on which the taxes on the secured roll are due and payable be tolled during the pendency of the appeal. Further provides that any taxes owed by the taxpayer are due and payable on specified dates after the resolution of the appeal, and if unpaid, are deemed delinquent and subject to penalty.
Status: Heard in, then re-referred to, the Revenue and Taxation Committee

AB 1977 (Bonta). Property taxation: welfare exemption: museums.
Allows a nonprofit museum that may rent out its facilities to claim a welfare exemption
Status: Referred to the Revenue and Taxation Committee

SB 37 (Skinner): Corporation taxes: tax rates
Would have created a new corporate tax rate schedule for firms with more than $10 million in apportioned net income, effective in the 2020 taxable year.
Status: From 2019 and now dead, will be removed from future reports