CHAPTER 2. The Corporation Franchise Tax [23101. - 23364a.]

Heading of Chapter 2 amended by Stats. 2001, Ch. 543, Sec. 26.

§§ 23101–23364a · 65 sections

1. ARTICLE 1. Definitions and General Provisions §§ 23101–23114 · 6 sections

   • § 23101 (a) “Doing business” means actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. (b) For taxable years beginning on or…
   • § 23101.5 (a) The Franchise Tax Board may determine that a corporation is not doing business in this state for purposes of this chapter or deriving income from sources…
   • § 23102 Any corporation holding or organized to hold stock or bonds of any other corporation or corporations, and not trading in stock or bonds or other securities…
   • § 23104 (a) For purposes of this part only, any corporation that is not incorporated under the laws of this state and whose sole activity in this state is engaging in…
   • § 23113 The tax imposed under this chapter shall attach whether a taxpayer has a taxable year of twelve months or less.
   • § 23114 (a) A corporation shall not be subject to the taxes imposed by this chapter if the corporation did no business in this state during the taxable year and the…
2. ARTICLE 2. Tax on General Corporations §§ 23151–23156 · 7 sections

   • § 23151 (a) With the exception of banks and financial corporations, every corporation doing business within the limits of this state and not expressly exempted from…
   • § 23151.1 Notwithstanding Section 23151, every corporation (except banks and financial corporations) doing business within the limits of this state and not exempted from…
   • § 23151.2 Notwithstanding Section 23151, every corporation (except banks and financial corporations) not exempted from taxation by the provisions of the Constitution of…
   • § 23153 (a) Every corporation described in subdivision (b) shall be subject to the minimum franchise tax specified in subdivision (d) from the earlier of the date of…
   • § 23154 The tax imposed under this chapter is in lieu of all ad valorem taxes and assessments of every kind and nature upon the general corporate franchises of the…
   • § 23155 In the event that taxes, interest and penalties have been or shall be assessed against, paid by or collected from a taxpayer under a subdivision of Section…
   • § 23156 (a) The Franchise Tax Board shall abate, upon written request by a qualified nonprofit corporation, unpaid qualified taxes, interest, and penalties for the…
3. ARTICLE 3. Tax on Banks and Financial Corporations §§ 23181–23188 · 8 sections

   • § 23181 (a) Except as otherwise provided herein, an annual tax is hereby imposed upon every bank doing business within the limits of this state according to or…
   • § 23182 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…
   • § 23183 (a) For taxable years beginning before January 1, 2000, an annual tax is hereby imposed upon every financial corporation doing business within the limits of…
   • § 23183.1 Notwithstanding Section 23183, every financial corporation doing business within the limits of this state and not exempted from taxation by the Constitution of…
   • § 23183.2 Notwithstanding Section 23183, every financial corporation not exempted from taxation by the provisions of the Constitution of this state or by this part which…
   • § 23186 For taxable years ending on or after December 31, 1995, the rate of tax on banks and financial corporations shall be the rate of tax specified in Section…
   • § 23187 Upon the request of a taxpayer under this chapter, the tax-collecting officer of a county, city, or other political subdivision of this State, shall furnish an…
   • § 23188 In the event that taxes, interest, or penalties have been or shall be assessed against, paid by, or collected from a taxpayer under a subdivision of Section…
4. ARTICLE 3.5. Credit for Prepaid Tax §§ 23201–23204 · 4 sections

   • § 23201 (a) In the case of a taxpayer whose tax for the first taxable year was computed under Sections 23222 to 23224, inclusive (or corresponding sections of prior…
   • § 23202 (a) In the case of a taxpayer who has been a transferee in a reorganization to which Sections 23251 to 23254, inclusive, or corresponding sections of prior…
   • § 23203 The credits provided by Sections 23201 and 23202 shall be allowable only upon submission by the taxpayer of evidence establishing to the satisfaction of the…
   • § 23204 (a) No credit under this article shall be allowed or made after four years from the last day prescribed for filing the return for the taxable year of…
5. ARTICLE 4. Commencing Corporations §§ 23221–23226 · 8 sections

   • § 23221 (a) Any credit union that incorporates under the laws of this state or qualifies to transact intrastate business in this state shall thereupon prepay a tax of…
   • § 23222 (a) If a taxpayer commences to do business in this state during its first taxable year its tax for that year shall be adjusted upon the basis of the net income…
   • § 23222a In every case in which the second or succeeding taxable years of a commencing taxpayer constitute a period of less than 12 months or in which the taxpayer does…
   • § 23223 (a) When any taxpayer commences to do business in this state for the first time in any taxable year other than the year of incorporation or qualification, its…
   • § 23224 (a) Notwithstanding the provisions of Section 23222 and Section 23223, if a corporation, which has been subject to the provisions of Chapter 3 commences to do…
   • § 23224.5 (a) After December 31, 1971, if a corporation which has been subject to the provisions of Chapter 3 commences to do business in this state, such corporation…
   • § 23225 The adjusted tax, as provided in Sections 23222 to 23224.5, inclusive, for any taxable year in excess of the prepayment for that year, shall be due and payable…
   • § 23226 In the case of the taxpayer taxable in the manner provided in Sections 23222 to 23224.5, inclusive, reporting income from any source on a deferred basis, the…
6. ARTICLE 5. Reorganized Corporations §§ 23251–23253 · 2 sections

   • § 23251 The term “reorganization,” as used in this chapter, shall have the same meaning as that term is defined in Section 368 of the Internal Revenue Code.
   • § 23253 Section 381(b) of the Internal Revenue Code, relating to operating rules, shall apply in determining the close of the taxable year. If a short period year is…
7. ARTICLE 6. Corporations Resuming Business §§ 23281–23282 · 2 sections

   • § 23281 (a) (1) When a taxpayer ceases to do business within the state during any taxable year and does not dissolve or withdraw from the state during that year, and…
   • § 23282 (a) The tax imposed upon any taxpayer which has suffered the suspension or forfeiture provided in Section 23301, and which revives in any taxable year other…
8. ARTICLE 7. Suspension and Revivor §§ 23301–23311 · 18 sections

   • § 23301 Except for the purposes of filing an application for exempt status or amending the articles of incorporation or organization as necessary either to perfect…
   • § 23301.5 Except for the purposes of filing an application for exempt status or amending the articles of incorporation or organization as necessary either to perfect…
   • § 23301.6 Sections 23301, 23301.5, and 23775 shall apply to a foreign taxpayer only if the taxpayer is qualified or registered to do business in California. A taxpayer…
   • § 23302 (a) Forfeiture or suspension of a taxpayer’s powers, rights, and privileges pursuant to Section 23301, 23301.5, or 23775 shall occur and become effective only…
   • § 23303 Notwithstanding the provisions of Section 23301 or 23301.5, any taxpayer that transacts business or receives income within the period of its suspension or…
   • § 23304.1 (a) Every contract made in this state by a taxpayer during the time that the taxpayer’s powers, rights, and privileges are suspended or forfeited pursuant to…
   • § 23304.5 A party that has the right to declare a contract to be voidable pursuant to Section 23304.1 may exercise that right only in a lawsuit brought by either party…
   • § 23305 Any taxpayer which has suffered the suspension or forfeiture provided for in Section 23301 or 23301.5 may be relieved therefrom upon making application…
   • § 23305.1 (a) A taxpayer may make application to the Franchise Tax Board for relief from the voidability provisions of Section 23304.1. To be relieved from voidability,…
   • § 23305.2 Notwithstanding Sections 23305 and 23305.1 that require a taxpayer to pay any liability to the Franchise Tax Board as a condition to revivor or relief from…
   • § 23305.5 For purposes of this article: (a) “Taxpayer” means either: (1) A corporation subject to tax under this chapter. (2) A business entity organized under a statute…
   • § 23305a Before the certificate of revivor is issued by the Franchise Tax Board, it shall obtain from the Secretary of State an endorsement upon the application of the…
   • § 23305b Notwithstanding Section 23305, the Franchise Tax Board may revive a taxpayer to good standing without full payment of the taxes, penalties, and interest due if…
   • § 23305c (a) Upon issuance of the certificate of revivor, the Franchise Tax Board shall transmit to the Secretary of State the revived taxpayer’s name and its entity…
   • § 23305d A certificate of suspension or forfeiture from the Franchise Tax Board setting forth that the suspended or forfeited taxpayer has been notified of its…
   • § 23305e (a) The Franchise Tax Board may provide letters of good standing, verifying a taxpayer’s status for doing business in California, at a charge reflecting the…
   • § 23310 (a) The Franchise Tax Board may abate, upon written request by a qualified entity, unpaid qualified taxes, interest, and penalties for the taxable years in…
   • § 23311 (a) If a qualified entity, as defined by Section 23310, has been dissolved or canceled as described by Section 23310, but continues to do business within the…
9. ARTICLE 8. Dissolution or Withdrawal §§ 23331–23335 · 5 sections

   • § 23331 (a) For the purposes of this article, the effective date of dissolution of a corporation is the date on which the certified copy of the court decree, judgment,…
   • § 23332 (a) Except in the case of a taxpayer subject to the provisions of Section 23222a, any taxpayer which is dissolved or withdraws from the state during any…
   • § 23332.5 If a financial corporation ceases doing business, dissolves, or withdraws from the state during any taxable year, the tax for the taxable year during which…
   • § 23333 (a) A taxpayer subject to Section 23186 shall, if it dissolves or withdraws prior to the date the rate is determined under Section 23186, pay a tax under…
   • § 23335 (a) Any return filed pursuant to Section 18601 that the taxpayer designates in the appropriate place on the form provided by the Franchise Tax Board as the…
10. ARTICLE 9. Affiliated Railroads §§ 23361–23364a · 5 sections

    • § 23361 “Affiliated group” means one or more chains of corporations connected through stock ownership with a common parent corporation if during the period when the…
    • § 23362 An affiliated group, subject to the provisions of this article, shall have the privilege of making a consolidated return for the taxable year in lieu of…
    • § 23363 The Franchise Tax Board shall prescribe such regulations as it may deem necessary in order that the tax liability of any affiliated group of corporations…
    • § 23364 If a consolidated return is made subject to the provisions of this article, the tax imposed under this chapter shall be computed as a unit upon the…
    • § 23364a Where a member of an affiliated group filing a consolidated return is a corporation commencing to do business in this state for the first time after August 27,…