CA AB1500

Requires businesses to apportion income using a single sales factor for taxable years beginning January 1, 2012 or later, unless they meet specific criteria or make an election to use the prior 4-factor formula.

Allows apportioning trade or businesses deriving more than 50% of gross receipts from qualified activities (agriculture, extraction, banking, savings and loan) to continue using a 3-factor formula.

Permits eligible businesses to elect annually to apportion income using the 4-factor formula if it results in equal or lower tax liability compared to the single sales factor method.

Establishes the Middle Class Scholarship Fund in the State Treasury and directs aggregate revenue increases from these tax provisions (less $90 million annually for forest fire prevention) to be deposited for higher education affordability.

Becomes operative only upon enactment of Assembly Bill 1501 establishing a middle-class scholarship program; takes effect immediately as an urgency statute.