Always on Watch - Final Suspense File Bills

Throughout the year, the CSEA advocacy team and Aaron Reed & Associates track a number of bills that pertain to Enrolled Agents and tax administration. This year, two bills that we are tracking have been put on suspense file, which is where bills costing more than $150,000 are kept while leadership determines the bills’ costs and priority level for the majority party.
The first bill, SB 349 (Portantino), would reduce the minimum franchise tax (MFT) based on a business’ gross receipts. Typically, we support all bills that lower the minimum franchise tax because they alleviate some of the tax burdens that face new and small businesses.
The vote for the second bill, AB 1270 (Stone), was held just prior to the deadline for bills to be passed out of committee. This bill would have amended Government Code Section 12650 to eliminate the “tax bar” and make allowance for tax claims from a number of groups. Our advocacy team debated the impact of this bill, but ultimately was not forced into action.
Tracking these bills may seem simple to some, but the amount of scrutiny that goes into determining each legislative position is quite detailed. Staying vigilant and always being on watch, especially when bills like AB 1270 are amended out of the blue, is one of the many services that CSEA provides all Enrolled Agents, and your support is always appreciated.