Taxation: corporations: minimum franchise tax: limited liability companies: annual tax: small businesses: microbusinesses.

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. Existing law also imposes 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. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would reduce the minimum franchise tax to $400 for small businesses, as defined, and to $200 for microbusinesses, as defined. The bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would also reduce the annual tax for the limited liability companies described above that are small businesses to $400 and that are microbusinesses to $200. The bill also would include additional information required for any bill authorizing a new income tax expenditure. This bill would take effect immediately as a tax levy.