Tax administration: suspension or forfeiture: limited liability companies: check the box regulations: property tax assessment.

(1) Existing property tax law requires, when valuing property by comparison with sales of other properties, that to be considered comparable the sales be sufficiently near in time to the valuation date, as defined, and that the properties sold be located sufficiently near, and be sufficiently alike, the property being valued, as specified. This bill would revise that definition. (2) Existing federal law imposes a tax, for each taxable year, on the taxable income of every corporation, as defined, and includes an association within the definition of a corporation. Existing federal law permits specified business entities to elect their classification for federal income tax purposes as an association, a partnership, or disregarded as an entity separate from its owner and provides for a default classification. Existing state law, the Corporation Tax Law, generally imposes a tax on every corporation, as defined, for each taxable year, according to or measured by its net income. Existing law requires the classification of a business entity, for state corporate income tax purposes, to be determined pursuant to the regulations of the Franchise Tax Board, consistent with federal regulations as in effect January 1, 1997, that classify a business entity as a partnership or an association taxable as a corporation or disregard the separate existence of certain business entities for tax purposes. Existing law requires that the state classification of an eligible business entity to be the same as the federal classification of that entity for tax purposes. This bill would instead require that the regulations issued by the Franchise Tax Board, related to the classification of a business entity, be consistent with federal regulations as in effect May 1, 2014. (3) Existing law provides that specified limited liability companies and corporations that are suspended or forfeited for failure to file a tax return or for failure to pay delinquent taxes, penalties, or interest are subject to specified consequences, including contract voidability. This bill would subject foreign nonregistered limited liability companies to contract voidability if the foreign nonregistered limited liability company is subject to suspension or forfeiture for failure to file a tax return or for failure to pay delinquent taxes, penalties, or interest. This bill would declare that it is to take effect immediately as an urgency statute.