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: In the Senate Appropriations committee

AB 133 (Quirk-Silva) Property tax postponement
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: In the Senate 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: Passed committees; on the Senate floor

AB 308 (Muratsuchi). Taxation: corporations: minimum franchise tax: limited liability companies 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: In the Senate Appropriations committee

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: In the Senate Appropriations committee

AB 1181 (Limón). Charitable organizations
Requires a charitable organization that receives a noncash pharmaceutical drug, nonprescription drug, medication, medical device, or medical supply contribution that is restricted by the donor so it cannot be used in the U.S., to value that noncash contribution using the fair value of the end recipient market or a reasonable estimate thereof if the end recipient market value cannot be ascertained following a reasonable inquiry, with exceptions. This bill prohibits, in the planning, conduct, or execution of any solicitation or charitable sales promotion, the reporting of noncash contributions in its audited financial statements, reports filed with the California Attorney General, or solicitation materials, in a way that is misleading or likely to cause confusion.
Status: Passed committees; on the Senate floor

AB 1521 (Low). 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: In the Senate Appropriations 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: In the Government & Finance committee. The hearing was postponed by the author; the bill may not pass this year.

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: Passed the legislature, to the Governor on August 23

SB 294 (Hill). Property taxation: welfare exemption: low income housing.
Increases the welfare exemption cap from $20 million to $100 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: In the Assembly Appropriations committee

SB 196 (Beall). Property taxes: 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 Assembly Appropriations 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 Assembly Appropriations 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 Assembly 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 Assembly Appropriations committee

SB 763 (Galgiani). Personal income tax: gross income exclusion: discharge of qualified principal residence indebtedness: federal disaster areas.
Excludes the discharge of qualified principal residence indebtedness (QPRI) from gross income for a principal residence that is lost within a federally declared disaster area.

Status: In the Assembly Appropriations committee

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.

Status: In the Senate Appropriations committee. Note that the Senate President made public statements indicating that this bill would become a two-year bill.

AB 9 (Reyes). Employment discrimination: limitation of actions
Extends, from 1 year to 3 years, the deadline for employees to file employment discrimination complaints and specifies that the operative date of the verified complaint is the date that the intake form was filed with the Labor Commissioner.
Status: In the Senate Appropriations committee

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

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: Passed the legislature; to the Governor on August 23

AB 1607 (Boerner Horvath). Gender discrimination: notification.
Beginning in 2021, 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: On the Assembly Floor

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: On the Assembly Floor