Bill Watch List

Our Legislative Bill Watch List makes it simple and straight-forward for Members and others to follow the Society’s position on bills that affect the general public and the profession of Enrolled Agents. Our lobbyist and staff review introduced and amended bills throughout the legislative year sending all relevant bills to the Legislative Affairs Committee for consideration.

Formal Positions Defined

If you do not see a position listed below, it means that CSEA currently does not have any bills that fall into the respective category.

  • Bills We Support – We have submitted a letter of support to the author of the bill and the members of either of the two tax policy committees
  • Bills We Oppose – CSEA has submitted either an oppose or oppose unless amended position to the author of the bill and the members of either of the two tax policy committees
  • Pending Committee Review – Our Legislative Affairs Committee is reviewing the bill to determine CSEA’s position
  • Neutral Bills – Bills that we will not be taking a position on
  • Bills We’re Watching – Bills that deal with issues relevant to tax policy (expenditures, credits, deductions, agency operations), but that CSEA typically does not submit a position on due to their more partisan nature 

 

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Full information @ CapitolTrack | Assemblywoman Autumn Burke (D)

Summary: Would adopt, except as provided, the provisions of the Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, denials of basis adjustments, and reductions in tax attributes based on the exclusion from gross income provided for any loan amount forgiven in modified conformity with the federal CARES Act and its subsequent amendments.

Full information @ CapitolTrack | Assemblywoman Suzette Valladares (R)

Summary: Would for taxable years beginning on or after January 1, 2021, reduce the minimum franchise tax to $400 for small businesses, as defined, and to $200 for microbusinesses, as defined. The bill, for taxable years beginning on or after January 1, 2021, would also reduce the annual tax for the limited liability companies described above that are small businesses to $400 and that are microbusinesses to $200. The bill would also state the intent of the Legislature to comply with the additional information requirement for any bill authorizing a new tax expenditure.

Full information @ CapitolTrack | Assemblyman Phillip Chen (R)

Summary: Current law imposes an annual minimum franchise tax of $800, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Current law also imposes an annual tax in an amount equal to the minimum franchise tax on every limited partnership, limited liability partnership, and limited liability company doing business in this state, as specified. This bill would suspend the minimum franchise tax and the annual tax for taxable years beginning on or after January 1, 2020, and before January 1, 2023. This bill would also include additional information required for any bill authorizing a new tax expenditure.

Full information @ CapitolTrack | Assemblywoman Janet Nguyen (R)

Summary: Current law requires, in the administration of the Diesel Fuel Tax Law, that certain procedures be followed with regard to appeals staff review conferences, as provided. Those procedures include, but are not limited to, conferences being held at a reasonable time at an office that is convenient to the taxpayer, and the taxpayer being informed prior to a conference of their right to have their attorney, accountant, or other designated agent present. This bill would allow a conference to be held remotely or virtually, meaning without the taxpayer’s physical presence at an office, if agreed to by both parties.

Full information @ CapitolTrack | Assistant Senate Majority Leader Mike McGuire (D)

Summary: Would, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, authorize specified limited partnerships, limited liability partnerships, limited liability companies, and “S” corporations to elect to pay an annual elective tax at a rate based on its net income for the preceding taxable year. The bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would exclude from gross income, for an individual partner, shareholder, or member of an entity that elects to pay the elective tax authorized by the bill, an amount equal to the partner, shareholder, or member’s pro rata share of the amount of the elective tax paid by the entity. The bill would also provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.

Full information @ CapitolTrack | Assemblymember Marc Levine (D)

Summary: Current law treats any marketplace facilitator that is registered or required to register with the State Board of Equalization under the Sales and Use Tax Law and who facilitates a retail sale of tangible personal property by a marketplace seller, as defined, as the retailer selling or making the sale of the tangible personal property sold through its marketplace for purposes of paying any sales taxes and collecting any use taxes. Current law requires a marketplace seller to register with the department for purposes of sales and use taxes for sales made on its own behalf and not facilitated by a registered marketplace facilitator. Current law grants marketplace facilitators relief from liability for the tax on a retail sale in specified circumstances. This bill would extend the requirements of a marketplace facilitator relating to registration pursuant to the Sales and Use Tax Law to any law that imposes a fee administered pursuant to the Fee Collection Procedures Law.

Full information @ CapitolTrack | Assemblyman Steven Choi (R)

Summary: Would, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would allow a deduction in computing adjusted gross income in connection with health savings accounts in conformity with federal law. In general, the deduction would be an amount equal to the aggregate amount paid in cash during the taxable year by, or on behalf of, an eligible individual, as defined, to a health savings account of that individual, as provided. The bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would also provide related conformity to that federal law with respect to the allowance of rollovers from Archer Medical Savings Accounts, health flexible spending arrangements, or health reimbursement accounts to a health savings account, and penalties in connection therewith.

Full information @ CapitolTrack | Assemblyman Phillip Chen (R)

Summary: The Consolidated Appropriations Act, 2021 prohibits reductions in tax deductions, denials of basis adjustments, and reductions in tax attributes for federal income tax purposes based on the exclusion from gross income provided in the federal CARES Act and its subsequent amendments. This bill would adopt the provisions of the Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, denials of basis adjustments, and reductions in tax attributes based on the exclusion from gross income provided for any loan amount forgiven in conformity with the federal CARES Act and its subsequent amendments.

Full information @ CapitolTrack | Assemblymember Eduardo Garcia (D)

Summary: Would adopt the provisions of the Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, denials of basis adjustments, and reductions in tax attributes based on the exclusion from gross income provided for any loan amount forgiven in conformity with the federal CARES Act and its subsequent amendments. The bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.

Full information @ CapitolTrack | Assemblywoman Blanca Rubio (D)

Summary: Would require the California Department of Tax and Fee Administration and the Franchise Tax Board to administer the California Tax Amnesty and Revenue Recovery Act, a tax amnesty program, as applicable, during the period beginning on February 1, 2022, to March 31, 2022, inclusive, or a period ending no later than June 30, 2022, for specified taxpayers with respect to penalties and fees for tax reporting periods beginning before January 1, 2021. This bill would require the applicant to the amnesty program to file the application under the penalty of perjury.

Full information @ CapitolTrack | Senate Majority Leader Robert Hertzberg (D)

Summary: Current provisions of the California Constitution, adopted as Proposition 19 by the voters at the November 3, 2020, general election, provide that on and after February 16, 2021, the above- described exclusion is inoperative. Current law provides instead that a change in ownership does not include (1) the purchase or transfer of real property that is the principal residence of an eligible transferor in the case of a purchase or transfer between parents and their children or sometimes between grandparents and their grandchildren, if the property continues as the family home of the transferee, and (2) the purchase or transfer between parents and their children or between grandparents and their grandchildren of a family farm. Existing law authorizes, if certain conditions are fulfilled, the new base year value of the purchased or transferred family home or family farm to be the sum of (1) the taxable value of the property, subject to adjustment, as determined as of the date immediately prior to the transfer or purchase, and (2) the assessed value, if any, of the property that exceeds $1,000,000. This bill would implement these newly adopted constitutional provisions, as provided

Full information @ CapitolTrack | Committee on Budget (Mixed)

Summary: Current law requires the Controller to make a one-time Golden State Stimulus payment to each qualified recipient, as defined, of an applicable amount, as specified, and authorizes the Controller to make the payment in a form and manner determined by the Franchise Tax Board, as specified. Current law also requires the State Department of Social Services to make a one-time grant payment (Golden State Grant payment) to qualified grant recipients, as defined, of $600, as specified. This bill would, except as provided, make both payments automatically exempt from a garnishment order, as defined, and would require a financial institution to employ a certain procedure to identify a deposit exempt pursuant to that provision. The bill would prohibit a financial institution that attempts to comply with those provisions in good faith from being subject to liability, as specified. The bill would also further clarify the definition of “qualified recipient” for purposes of the Golden State Stimulus payment and a “grant recipient” eligible to receive a Golden State Grant payment.

Full information @ CapitolTrack | Assemblywoman Blanca Rubio (D)

Summary: The Personal Income Tax Law and Corporation Tax Law, in modified conformity with federal income tax laws, generally allows various deductions in computing the income that is subject to taxes imposed by those laws, including a deduction for a net operating loss, as specified. Current law suspends the deduction for a net operating loss, as specified, for taxable years beginning on or after January 1, 2020, and before January 1, 2023. This bill, for taxable years beginning on and after January 1, 2023, would authorize a net operating loss carryback, as described, for a net operating loss or carryover of net operating loss for which a deduction was suspended as described above for a qualified taxpayer.

Full information @ CapitolTrack | Assemblywoman Autumn Burke (D)

Summary: Would state the intent of the Legislature to enact legislation that would bring California’s tax treatment of covered Paycheck Protection Program loans into conformity with federal tax laws.

Full information @ CapitolTrack | Assemblymember Jacqui Irwin (D)

Summary: Would require the secretary-treasurer to preside at meetings of the California Board of Accountancy if both the president and vice president are absent or unable to act. The bill would authorize the president to designate a board member who is not an officer to preside at a meeting of the board if all officers of the board are absent or unable to act at that meeting.

Full information @ CapitolTrack | Assemblymember Adrin Nazarian (D)

Summary: The Professional Fiduciaries Act requires an applicant to complete 30 hours of prelicensing education courses provided by an educational program approved by the bureau as a condition of licensure. The act also requires a licensee to complete 15 hours of continuing education courses each year as a condition of license renewal or restoration. This bill, beginning January 1, 2023, would require the prelicensing education courses to include at least one hour of instruction in cultural competency, as defined by the bill. The bill, beginning January 1, 2023, would also require a licensee to complete at least one hour of instruction in cultural competency every 3 years as a condition of license renewal or restoration.

Full information @ CapitolTrack | Assemblymember Bill Quirk (D)

Summary: Would request the Regents of the University of California perform a comprehensive assessment of major tax expenditures to study, among other things, the legislative intent, the beneficiaries, the number of effected returns or business entities, the cost to the General Fund, the effectiveness of such tax expenditures, and options to modify the tax expenditures to improve their effectiveness or reduce their cost. This bill would request the Regents of the University of California provide a report to the Legislature by January 1, 2024. This bill would require the Senate Committee on Governance and Finance and the Assembly Committee on Revenue and Taxation, upon receipt of the report from the university, to hold a joint public hearing on the report by August 15, 2024, of the second year of the legislative session.

Full information @ CapitolTrack | Assemblyman Vince Fong (R)

Summary: Would adopt specified provisions of the Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, denials of basis adjustments, and reductions in tax attributes based on the exclusion from gross income provided for any loan amount forgiven in modified conformity with the federal CARES Act and its subsequent amendments. This bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.

Full information @ CapitolTrack | Senator Patricia Bates (R)

Summary: Current law specifies those circumstances in which the transfer of ownership interests in a corporation, partnership, limited liability company, or other legal entity results in a change in ownership of the real property owned by that entity, and generally provides that a change in ownership as so described occurs if a legal entity or other person obtains a controlling or majority ownership interest in the legal entity. Current law requires the Franchise Tax Board to include a question on returns for partnerships, banks, and corporations to assist in the determination of whether a change in ownership under the circumstances described above has occurred. This bill would additionally specify that if 90% or more of the direct or indirect ownership interests in a legal entity are sold or transferred in a single transaction, as defined, the real property owned by that legal entity has changed ownership whether or not any one legal entity or person that is a party to the transaction obtains control, as defined.

Full information @ CapitolTrack | Senator Steve Glazer (D)

Summary: Would require a retailer whose annual sales of tangible personal property transacted online exceeded $1,000,000 for the previous calendar year to track and report to the department the city or ZIP code where the purchaser resides for each sale within the state that is transacted online, as specified.