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The bill would
replace the State’s current corporate income taxation of water’s edge income,
inclusive of 50% of Global Intangible Low-Taxed Income (GILTI), with
mandatory worldwide income reporting, using worldwide factors for income
apportionment, for the corporations covered and is expected to have a modest
impact on corporate income tax revenue, with likely outcomes ranging from a
small revenue loss to a small revenue gain. To implement these tax changes,
the bill provides a General Fund appropriation of $627,612 in fiscal year
2026-27 to the Department of Administrative and Financial Services, Bureau of
Revenue Services for administrative costs including: one new Tax Analyst, two
new Tax Examiner positions, and two new Revenue Agent positions as well as
funding for one-time computer programming costs. |