Rep. Tim Donnelly

This measure would urge the President and the Internal Revenue Service (IRS) to comply with all requests related to congressional inquiries related to IRS misconduct in a full and transparent manner, and ensure that all government employees are made available for questions relating to the application of tax exempt status for religious organizations. This measure would also urge the appointment of an independent counsel to investigate the actions of the IRS.

(1) Existing law creates the High-Speed Rail Authority with specified powers and duties relating to the development and implementation of an intercity high-speed train system, including the power to acquire rights-of-way through purchase or eminent domain. Existing law, the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, authorizes $9.95 billion in general obligation bonds for high-speed rail development and other purposes, creates the High-Speed Passenger Train Bond Fund, and requires that moneys in the fund be made available to the authority for expenditures, among other things, related to the acquisition of interests in real property and rights-of-way and the development and construction of the high-speed rail system. This bill would require the authority, with regard to real property acquired by it and from moneys available for expenditure by it from the fund, to annually pay to the county in which the real property is located an amount equal to the property tax equivalent, as defined. (2) This bill would declare that it is to take effect immediately as an urgency statute.

Existing law imposes an annual minimum franchise tax, except as provided, on every corporation incorporated in this state, qualified to transact intrastate business in this state, or doing business in this state. Existing law exempts a corporation that incorporates or qualifies to do business in this state from the payment of the minimum franchise tax in its first taxable year. Existing law imposes an annual tax in an amount equal to the minimum franchise tax on every limited partnership, limited liability company and limited liability partnership doing business in this state. In addition, existing law requires every limited partnership that has filed a certificate with the Secretary of State and every foreign limited partnership that has registered with the Secretary of State, every limited liability company if the articles of organization have been accepted by, or a certificate of registration has been issued by, the Secretary of State, and every registered limited liability partnership and every foreign limited liability partnership that has registered with the Secretary of State, to pay an annual tax in an amount equal to the minimum franchise tax. This bill would reduce that minimum franchise or annual tax in the 2nd taxable year, for a new corporation, and the first taxable year for a new limited partnership, new limited liability partnership, and new limited liability company that is a small business, which is defined as a business entity with gross receipts of $5000 or less, as specified. This bill would take effect immediately as a tax levy.

(1) Article XVI of the California Constitution requires a general obligation bond act to specify the single object or work to be funded by the bonds, and further requires a bond act to be approved by a 23 vote of each house of the Legislature and by a majority of the voters. Article XVI authorizes the Legislature, at any time after the approval of a general obligation bond act by the voters, to reduce the amount of the indebtedness authorized by the act to an amount not less than the amount contracted at the time of the reduction. Existing law, the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, approved by the voters as Proposition 1A at the November 4, 2008, statewide general election, provides for the issuance of $9.95 billion in general obligation bonds for high-speed rail and related rail purposes. This bill, subject to voter approval, would amend the bond act to provide that no further bonds shall be sold for high-speed rail and related rail purposes, and would also explicitly authorize the net proceeds received from outstanding bonds issued and sold prior to the effective date of these provisions, upon appropriation, to be redirected from those high-speed rail purposes to retiring the debt incurred from the issuance and sale of those outstanding bonds. The bill would direct the Secretary of State to submit these provisions to the voters on the ballot of the November 4, 2014, statewide general election. The bill would also provide that, until November 5, 2014, bond funds made available pursuant to the bond act shall not be expended for high-speed rail purposes, and no additional bonds shall be issued or sold pursuant to the bond act. (2) This bill would declare that it is to take effect immediately as an urgency statute.

The Personal Income Tax Law allows various deductions in computing the income that is subject to the tax imposed by that law. This bill would allow, for taxable years beginning on or after January 1, 2015, as a deduction any income earned or received by a taxpayer that is attributable to a taxpayer's status as a partner in or sole proprietor of a qualified business, as defined, for the first 5 consecutive taxable years in which the business is a qualified business. Existing law generally imposes a 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, and an annual tax in an amount equal to the minimum franchise tax on every limited partnership, limited liability partnership, and limited liability company registered, qualified to transact business, or doing business in this state, as specified. Existing law requires every limited liability company subject to the annual tax to pay annually to this state a fee equal to specified amounts based upon total income from all sources reportable to this state. This bill would exempt from the minimum franchise tax every corporation incorporated in this state on or after January 1, 2015, for the first 5 consecutive taxable years during which the corporation does business within this state. This bill would also exempt from the annual tax every limited partnership, limited liability partnership, and limited liability company that files a specified form with the Secretary of State on or after January 1, 2015, as specified, for the first 5 consecutive taxable years during the time that entity does business within the state. This bill would additionally exempt a limited liability company that files a specified form with the Secretary of State on or after January 1, 2015, from the fee equal to specified amounts for the first 5 consecutive taxable years that the limited liability company does business within this state. The Corporation Tax Law, in modified conformity with federal income tax laws, exempts various types of organizations from state income taxes imposed by that law. This bill would exempt a corporation that incorporates under the laws of this state on or after January 1, 2015, for the first 5 consecutive taxable years that it does business within this state. Under existing law, a corporation that is a small business solely owned by a deployed member of the United States Armed Forces is not subject to the minimum franchise tax when the owner is deployed and the corporation meets certain requirements. Existing law makes these provisions inoperative for taxable years beginning on or after January 1, 2018. This bill would instead make these provisions inoperative for taxable years beginning on or after January 1, 2019. This bill would take effect immediately as a tax levy.

This measure would designate Monday, May 5, 2014, as California Peace Officers' Memorial Day, urge all Californians to use that day to honor California peace officers, and recognize specified California peace officers who were killed in defense of their communities.

The Personal Income Tax Law allow various credits against the taxes imposed by that law. This bill, for taxable years beginning on or after January 1, 2014, and before January 1, ____, would allow a credit equal to the difference between the annual premium amount paid or incurred during the taxable year for an individual health care service plan contract or individual policy of health insurance and the annual premium amount paid or incurred prior to March 31, 2014, for such an individual plan contract or policy by a qualified taxpayer, which is defined as an individual whose individual plan contract or policy was canceled between during a specified time period, and who purchased a new individual plan contract or policy and paid or incurred an annual premium amount that exceeded the annual premium amount paid or incurred prior to the cancellation of his or her individual plan contract or policy. This bill would take effect immediately as a tax levy.

Existing law requires boards within the Department of Consumer Affairs to meet at least 3 times each calendar year, with at least one of those meetings occurring in northern California and at least one of those meetings occurring in southern California. This bill would make technical, nonsubstantive changes to those provisions.

The Personal Income Tax Law and the Corporation Tax Law authorize various deductions in computing income that is subject to tax under those laws. This bill would allow as a deduction, under both of those laws for taxable years beginning on or after January 1, 2015, the amount of any loss of the fair market value of any tangible personal property located in California that is attributable to a rule, regulation, or statute that took effect in the taxable year in which the deduction is claimed, as provided. This bill would take effect immediately as a tax levy.

Existing law specifies the process by which a statewide initiative or referendum measure may be qualified for the ballot, and requires the Secretary of State to prepare and provide to any person, on request, a pamphlet describing certain aspects of that process. This bill would require the Secretary of State to provide on his or her Internet Web site an electronic mail address at which the proponent of a proposed initiative or referendum measure may submit to the Secretary of State a copy of the petition for the proposed measure in portable document format. The bill would require the Secretary of State, within 2 business days of receiving a petition in this manner, to provide on his or her Internet Web site a hyperlink by which the petition is available to the public and can be downloaded and printed. The bill would require that a specified disclaimer be included on the Internet Web page that makes the petition available to the public.