California: Corporate Disclosure Bill Pending Signature

Senate Bill 972 has been presented to California Governor Newsom for signature. If signed, this bill would require the Franchise Tax Board to compile certain information on large taxpayers and provide that information on an annual basis to two tax committees in the California legislature. Specifically, the Board would compile a list of all taxpayers subject to California corporate income tax with gross receipts of over $5 billion reported on returns filed on a return in the previous calendar year.  The $5 billion threshold would be measured based on the receipts of a combined group. The information to be provided would be required to include the taxpayer’s name as listed on the tax return, California tax liability reported on the return, the taxable year for which the return is filed, the total gross receipts for that taxable year, and the amount and types of credits claimed for that taxable year. Once compiled, the Board would provide this information to the Assembly Committee on Revenue and Taxation and the Senate Governance and Finance Committee. The first report is due to the committees on May 1, 2021. An earlier version of this bill would have required the FTB to publish the information on its website. Please stay tuned to TWIST for future legislative updates.