Personal Income Tax Laws

California Revenue and Taxation Code Division 2, Part 10 deals with the Personal Income Tax Laws. Chapter 1 contains general provisions and definitions. Section 17001 names this part as the “Personal Income Tax Law.”

Section 17002 specifies that the definitions given in this chapter govern the construction of this part.

Section 17003 defines the term “Franchise Tax Board.”

Section 17004 defines the term “taxpayer.”

Section 17005 defines the term “individual.”

Section 17006 defines the term “fiduciary.”

Section 17007 defines the term “person.”

Section 17008 defines the term “partnership.”

Section 17008.5 states that Section 7704 of the Internal Revenue Code, relating to certain publicly traded partnerships treated as corporations, applies. Section 7704(d) of the Internal Revenue Code, relating to qualifying income, applies, without regard to taxable year to the same extent as applicable for federal income tax purposes.

Section 17009 defines the term “corporation.”

Section 17010 defines the term “taxable year.”

Section 17011 defines the term “fiscal year.”

Section 17012 defines the term “paid or incurred.”

Section 17014 defines the term “resident.”

Section 17015 defines the term “nonresident.”

Section 17015.5 defines the term “part-year resident.”

Section 17016 states that every individual who spends in the aggregate more than nine months of the taxable year within this State is presumed to be a resident. The presumption may be overcome by satisfactory evidence that the individual is in the State for a temporary or transitory purpose.

Section 17017 defines the term “United States.”

Section 17018 defines the term “state.”

Section 17019 defines the term “foreign country.”

Section 17020 defines the term “trade or business.”

Section 17020.1 defines the term “substituted basis property.”

Section 17020.2 defines the term “transferred basis property.”

Section 17020.3 defines the term “exchanged basis property.”

Section 17020.4 defines the term “nonrecognition transaction.”

Section 17020.5 states that, in determining the amount of gain or loss (or deemed gain or loss) with respect to any property, Section 7701(g) of the Internal Revenue Code, relating to nonrecourse indebtedness, applies.

Section 17020.6 states that Section 7702 of the Internal Revenue Code, relating to life insurance contracts, applies. Section 7702A of the Internal Revenue Code, relating to modified endowment contract defined, applies. Section 7702B of the Internal Revenue Code, relating to treatment of qualified long-term care insurance, applies.

Section 17020.7 states that Section 7701(a)(46) of the Internal Revenue Code, relating to determination of whether there is a collective bargaining agreement, applies.

Section 17020.8 states that Section 7701(e) of the Internal Revenue Code, relating to treatment of certain contracts for providing services, etc., applies.

Section 17020.9 defines the term “domestic building and loan association.”

Section 17020.11 states that Section 7701(h) of the Internal Revenue Code, relating to motor vehicle operating leases, applies.

Section 17020.12 explains that the determination of whether an individual is an employee is governed by Article 1.5 (commencing with Section 2775) of Chapter 2 of Division 3 of the Labor Code. Section 7701(a)(20) of the Internal Revenue Code, relating to definition of “employee,” applies, except as otherwise provided.

Section 17020.13 states that Section 7701(k) of the Internal Revenue Code, relating to treatment of certain amounts paid to charity, applies.

Section 17020.15 states that Section 7701(n) of the Internal Revenue Code, relating to convention or association of churches, applies.

Section 17021 defines the term “spouse.”

Section 17021.5 states that Section 7703 of the Internal Revenue Code, relating to determination of marital status, applies.

Section 17021.7 defines the terms “domestic partner,” “dependent,” and “member of their family.”

Section 17022 defines the terms “military or naval forces of the United States” and “armed forces of the United States.”

Section 17023 defines the terms “counsel for the Franchise Tax Board,” and “Franchise Tax Counsel.”

Section 17024 defines the term “Personal Income Tax Law of 1954.”

Section 17024.5 defines the terms “Internal Revenue Code,” “Internal Revenue Code of 1954,” or “Internal Revenue Code of 1986.”

Section 17028 provides that the provisions of this code insofar as they are substantially the same as existing statutory provisions relating to the same subject matter are to be construed as restatements and continuations thereof, and not as new enactments.

Section 17029 provides that the repeal of any provision of the Personal Income Tax Law shall not affect any act done or any right accruing or accrued, or any suit or proceeding had or commenced in any civil cause, before such repeal; but all rights and liabilities under such law shall continue, and may be enforced in the same manner, as if such repeal had not been made.

Section 17029.5 states that the enactment of the act adding this section to the code does not deprive any taxpayer of any carryover of a credit, excess contribution, or loss to which that taxpayer was entitled under this part. The carryover of the credit, excess contribution, or loss is allowed to be carried forward under the act adding this section to the code for the same period of time as the taxpayer would have been entitled to carry that item forward under prior law.

Section 17031 explains that any provision of this part which refers to the application of any portion of this part to a prior period (or which depends upon the application to a prior period of any portion of this part) is deemed to refer to the corresponding provision of Part 10 of Division 2 of the Revenue and Taxation Code or of other Personal Income Tax Laws as were applicable to the prior period.

Section 17032 explains that division, part, chapter, article, section and subsection headings contained herein are not deemed to govern, limit, modify, or in any manner affect the scope, meaning, or intent of the provisions of this part.

Section 17034 specifies that the provisions of any act that affect the imposition or computation of taxes, additions to tax, penalties, or the allowance of credits against the tax, are applied to taxable years beginning on or after January 1 of the year in which the act takes effect.

Section 17035 defines the term “withholding agent.”

Section 17036 states that any notice may be given by first class mail postage prepaid.

Section 17037 explains that provisions in other codes or general law statutes which are related to this part include all seven of the specified laws.

Section 17038 states that references to the California Consumer Price Index mean the California Consumer Price Index for All Urban Consumers as modified for rental equivalence homeownership (new series).

Section 17039 defines the term “net tax.”

Section 17039.1 states that the credit allowed by Section 17053.30, relating to natural heritage, may reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504, relating to the separate tax lump-sum distributions, below the tentative minimum tax, but only after allowance of the credit allowed by Section 17063.

Section 17039.2 defines the term “net tax.”