SECTIONS 17935-17937 - California Statutes

REVENUE AND TAXATION CODE

SECTION 17935-17937

17935. (a) For each taxable year beginning on or after January 1,
1997, every limited partnership doing business in this state (as
defined by Section 23101) and required to file a return under Section
18633 shall pay annually to this state a tax for the privilege of
doing business in this state in an amount equal to the applicable
amount specified in Section 23153.
(b) (1) In addition to any limited partnership that is doing
business in this state and therefore is subject to the tax imposed by
subdivision (a), for each taxable year beginning on or after January
1, 1997, every limited partnership that has executed, acknowledged,
and filed a certificate of limited partnership with the Secretary of
State pursuant to Section 15621 or 15902.01 of the Corporations Code,
and every foreign limited partnership that has registered with the
Secretary of State pursuant to Section 15692 or 15909.01 of the
Corporations Code, shall pay annually the tax prescribed in
subdivision (a). The tax shall be paid for each taxable year, or part
thereof, until a certificate of cancellation is filed on behalf of
the limited partnership with the office of the Secretary of State
pursuant to Section 15623, 15696, 15902.03, or 15909.07 of the
Corporations Code.
(2) If a taxpayer files a return with the Franchise Tax Board that
is designated its final return, that board shall notify the taxpayer
that the tax imposed by this chapter is due annually until a
certificate of cancellation is filed with the Secretary of State
pursuant to Section 15623, 15696, 15902.03, or 15909.07 of the
Corporations Code.
(c) The tax imposed by this chapter shall be due and payable on
the date the return is required to be filed under former Section
18432 or 18633.
(d) For purposes of this section, "limited partnership" means any
partnership formed by two or more persons under the laws of this
state or any other jurisdiction and having one or more general
partners and one or more limited partners.
(e) Notwithstanding subdivision (b), any limited partnership that
ceased doing business prior to January 1, 1997, filed a final return
with the Franchise Tax Board for a taxable year ending before January
1, 1997, and filed a certificate of dissolution with the Secretary
of State pursuant to Section 15623 of the Corporations Code prior to
January 1, 1997, shall not be subject to the tax imposed by this
chapter for any period following the date the certificate of
dissolution was filed with the Secretary of State, but only if the
limited partnership files a certificate of cancellation with the
Secretary of State pursuant to Section 15623 of the Corporations
Code. In the case where a notice of proposed deficiency assessment of
tax or a notice of tax due (whichever is applicable) is mailed after
January 1, 2001, the first sentence of this subdivision shall not
apply unless the certificate of cancellation is filed with the
Secretary of State not later than 60 days after the date of the
mailing of the notice.

17936. A limited partnership shall not be subject to the taxes
imposed by this chapter if the limited partnership did no business in
this state during the taxable year and the taxable year was 15 days
or less.

17937. (a) A limited partnership shall not be subject to the taxes
imposed by this chapter for a taxable year if the limited partnership
does all of the following:
(1) Files with the Franchise Tax Board a timely final annual tax
return for the preceding taxable year.
(2) Does not do business in this state after the end of the
taxable year for which the final annual tax return was filed.
(3) Files a certificate of cancellation with the Secretary of
State, pursuant to Section 15623 or 15696 of the Corporations Code,
before the end of the 12-month period beginning with the date the
final annual tax return was filed.
(b) For purposes of this section, a "final annual tax return" is a
return described in Section 18633 that is filed on or before the due
date of the return, as extended, that the taxpayer designates in the
manner prescribed by the Franchise Tax Board as the taxpayer's final
annual return for purposes of the tax imposed under this chapter.
For purposes of this chapter, a "final annual tax return" is a return
filed pursuant to Section 18633 where the taxpayer is not required
to file a subsequent return to reflect the imposition of tax under
this chapter.