Taxation: minimum franchise tax and annual tax exemption: Armed Forces.

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, until taxable years beginning on or after January 1, 2018, exempts a corporation and a limited liability corporation that are small businesses solely owned by a deployed member of the United States Armed Forces, as specified, from paying the minimum franchise tax, or the annual tax, for the privilege of doing business in this state if the corporation or limited liability corporation ceases operation or operates at a loss, as defined. This bill would additionally allow the exemption for taxable years beginning on or after January 1, 2020, and before January 1, 2029. The bill would require the Franchise Tax Board to submit an annual report to the Legislature regarding the reduction of the minimum franchise tax and annual tax, as provided. This bill would take effect immediately as a tax levy.