Minimum franchise tax.

Existing law imposes an annual 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 doing business in this state, as specified. This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would reduce the minimum franchise tax, as provided, based on the gross receipts during the taxable year of the corporation, but would continue to impose the current amount of the annual tax on corporations described above whose gross receipts exceed $15,000,000 and on every limited partnership, limited liability partnership, and limited liability company doing business in this state. The bill would require the Franchise Tax Board to submit an annual report to the Legislature regarding the reduction of the minimum franchise tax, as provided. This bill would incorporate additional changes to Sections 17941 and 23153 of the Revenue and Taxation Code proposed by AB 308 to be operative only under specified circumstances, including that this bill is enacted last. This bill would take effect immediately as a tax levy.