CA SB858

Allows eligible persons to elect to report qualified use tax on income tax returns for taxable years beginning January 1, 2010 and later, with the Franchise Tax Board transferring collected amounts to the State Board of Equalization within 60 days.

Increases the corporation tax understatement penalty threshold from $1,000,000 to the greater of $1,000,000 or 20% of tax shown on original or amended return, effective for taxable years beginning January 1, 2010.

Extends net operating loss deduction disallowance and carryover extensions to 2010-2011 taxable years for taxpayers with income of $300,000 or more; disallows carrybacks for losses before January 1, 2013, but allows carrybacks for losses beginning January 1, 2013 and later.

Imposes collection cost recovery fees on persons failing to pay taxes, fees, or surcharges under multiple tax laws if the State Board of Equalization mailed a demand notice on or after January 1, 2011; fees can be waived upon filing a statement under penalty of perjury showing reasonable cause.

Revises sales apportionment rules for taxable years beginning January 1, 2011, specifying how sales of services and intangible property are assigned to California for single-sales-factor election purposes and 4-factor formula calculations.