CA AB3057

Exempts mutual ditch or irrigation companies from Corporation Tax Law for taxable years beginning on or after January 1, 2018, in conformity with Section 501(c)(12) of the Internal Revenue Code.

Adds Section 23701m to the Revenue and Taxation Code to establish the tax exemption for qualifying mutual ditch or irrigation companies.

Amends Section 24473 to clarify that mutual water companies exempt under federal law but taxable under California law before January 1, 2018 may transfer assets to community services districts without triggering transfer taxes.

Corrects a reference in Section 24473 from Section 61100 to Section 61000 of the Government Code regarding community services district formation requirements.

Takes effect immediately as a tax levy under Article IV of the California Constitution.