Bill > SB347

This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, reduces the annual tax for limited partnerships (partnerships with at least one general and one limited partner), limited liability partnerships (partnerships that provide limited liability to all partners), and limited liability companies (LLCs, which are business structures combining aspects of partnerships and corporations) from $800 to $600. The bill also includes provisions for reporting on the impact of this tax reduction, with the Franchise Tax Board (the state agency responsible for collecting taxes) required to report to the Legislature on the number of affected businesses by April 1, 2028, and annually thereafter, to assess if the goal of making California's business environment more competitive is being met. This legislation is considered a tax levy, meaning it will take effect immediately upon passage.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB347