Income taxes: exemption: charitable organizations: administration.

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. Existing law allows organizations that have obtained a ruling or determination from the Internal Revenue Code that it is exempt from federal income taxes as an organization described in Section 501(c) (3) of the Internal Revenue Code to obtain exemption from state income taxes by submitting to the Franchise Tax Board a copy of the notification issued by the Internal Revenue Service approving the organization's tax-exempt status, as specified. This bill would additionally, if the central organization and all of its subordinates are organizations described in Section 501(c) (3) , exempt a subordinate organization that is included in a federal group exemption letter, provided the organization submits to the board a copy of the group exemption letter issued by the Internal Revenue Service and substantiation that it is included in the federal group exemption letter as a subordinate organization. This bill would require the board to issue an acknowledgment of an organization's exemption from state income taxes, as provided. This bill would also, if the board suspends or revokes the exemption of an organization, provide that the exempt status will not be reinstated until the organization applies to the Franchise Tax Board for exemption, and the board issues a determination exempting the organization from state income taxes, as provided. This bill would also require documents submitted to the Franchise Tax Board to verify the exemption, and the acknowledgment letter or other document issued by the Franchise Tax Board, to be open to public inspection, as specified.