Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2013
 

Revenue and Taxation Code

Division 2. Other Taxes

Part 11. Bank and Corporation Tax Law

Chapter 2. The Bank and Corporation Franchise Tax

Article 3. Tax on Banks and Financial Corporations*

Section 23182

23182. Banks and financial corporations; tax in lieu of other taxes and licenses. The tax imposed under this part upon banks and financial corporations is in lieu of all other taxes and licenses, state, county and municipal, upon the said banks and financial corporations except taxes upon their real property, local utility user taxes, sales and use taxes, state energy resources surcharge, state emergency telephone users surcharge, and motor vehicle and other vehicle registration license fees and any other tax or license fee imposed by the state upon vehicles, motor vehicles or the operation thereof.

The changes in this section made by the 1979–80 Legislature with respect to sales and use taxes apply to taxable years beginning on and after January 1, 1980, and the remaining changes apply to taxable years beginning on and after January 1, 1981.

History.—Amended by Stats. 1975, Ch. 575, in effect September 6, 1975. Stats. 1979, Ch. 1150, in effect September 29, 1979, substituted "this part" for "Section 23181"; added "and financial corporations" after "banks"; and added "local utility user taxes, sales and use taxes, state energy resources surcharge, state emergency telephone users surcharge" after "real property" in the first paragraph; and added the second paragraph. Stats. 2001, Ch. 543 (SB 1185), in effect January 1, 2002, substituted "taxable years" for "income years" after "apply to" twice in the first sentence of the second paragraph.

Note.—Section 20 of Stats. 1979, Ch. 1150, provided that the amendment to Revenue and Taxation Code Section 23182 contained in this act reaffirms the Legislature's longstanding purpose of insuring competitive parity between banks and financial corporations by subjecting both types of institutions to an equivalent tax burden. Equal tax treatment of banks and financial corporations promotes the continued existence of both types of institutions thereby affording a full range of financial services at competitive rates. Moreover, taxation of banks and financial corporations at the rate determined under Revenue and Taxation Code Section 23186 insures that their tax burden will be comparable to the combined state and local tax burdens of nonfinancial corporations subject to Revenue and Taxation Code Section 23151.

"The Legislature further finds that divergent and competing local tax measures imposed on financial corporations impair the uniform statewide regulation of banks and financial corporations. For this reason and those earlier expressed, the Legislature declares that the state, by this amendment, has preempted such local taxation of financial corporations to the same extent as the state has heretofore preempted local taxation of banks."

* Article 3 was added by Stats. 1949, Ch. 557, in effect October 1, 1949.