Income taxes: charitable remainder trusts.

The Personal Income Tax Law does not conform to the federal Internal Revenue Code with regard to the taxation of specified trusts. Existing law exempts any charitable remainder annuity trust or charitable remainder unitrust from specified taxes unless that trust has unrelated business taxable income, in which case that trust shall be taxed, as provided. This bill would, for taxable years beginning on or after January 1, 2011, provide that a charitable remainder annuity trust and a charitable remainder unitrust shall retain tax exempt status under the federal Internal Revenue Code and would otherwise restate and clarify the existing basis for tax liability on the part of those trusts by reason of unrelated business taxable income. This bill would take effect immediately as a tax levy.