The California United States Senators, specifically the budget committee, amended Senate Bill 220 or the New Tax and Relief Proposal Bill.
The California United States Senators amended Senate Bill 220
On May 25, the California United States Senators amended Senate Bill 220, a tax reform package, which has received an objection from Governor Gavin Newman and must require a 2/3 vote of each senate house.
California United States Senators amended Section 1 of Senate Bill 220 and added Chapter 6.3 to Division 7 of Title 1 of the Government Code. The Critical Needs Funds would create State Treasury to fund schools, provide childcare services, and develop hospitals.
California United States Senators Section 2 of Senate Bill 220 changed the Revenue and Taxation Code Section 17052. The earned income tax credit allows the credit of $275 after January 1, 2023. The California United States Senators also amended Section 3 of the bill and changed the Revenue and Taxation Code Section 17053.5 about the renter’s tax refund and Section 4 and changed the Revenue and Taxation Code Section 17053.75.
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The California United States Senators also amended Senate Bill 220 Section 5 and changed the corporate tax rate to 8.84%
The California United States Senators also amended Sections 6, 7, 8, 9, and 10.
Section 6- California United States Senators changed the minimum franchise tax of $800 by lowering it to $600.
Section 7- California United States Senators changed the corporation tax rate to 1.12%.
Section 8- California United States Senators provided legislative findings that it is not a donation of public money to pay low-income renters for the increasing rent. The bill will change the rent tax credit.
Section 9- California United States Senators provided legislative findings that it is not a donation of public money to help individuals for the worker tax credit.
Section 10- The amended bill will take effect immediately.