This bill removes a tax break that allowed banks to deduct bad debts when calculating their state franchise tax. Under current law, banks can reduce their taxable income by claiming bad debt deductions, but this bill eliminates that modification so banks must pay franchise tax on their full income without that deduction.
The amendment removes provisions that allowed banks to add back bad debt deductions and adjust income for changes in bad debt accounting methods, thereby STRENGTHENING the bill's original purpose of repealing income modifications related to bad debts by eliminating these remaining carve-outs. The amendment also makes technical corrections to statutory references and simplifies language throughout the bill.
Signed by the Governor S.J. 266
Delivered to the Governor S.J. 219
Signed by the Speaker H.J. 251
Signed by the President S.J. 203
House of Representatives Do Pass Passed, YEAS 69, NAYS 0. H.J. 223
Taxation Certified uncontested, placed on consent
Taxation Do Pass Passed, YEAS 12, NAYS 0.
Taxation Scheduled for hearing
First read in House and referred to House Taxation H.J. 114
Senate Do Pass Passed, YEAS 33, NAYS 0. S.J. 75
Taxation Certified uncontested, placed on consent S.J. 1
Taxation Do Pass Passed, YEAS 5, NAYS 0. S.J. 1
Taxation Scheduled for hearing
First read in Senate and referred to Senate Taxation S.J. 17
Do Pass
Taxation — Do Pass
Do Pass
Taxation — Do Pass