CA AB2306

Repeals the $800 minimum franchise tax for corporations doing business in California for taxable years beginning on or after January 1, 2020.

Corporations subject to the tax will instead pay only the income tax rate of 8.84 percent on net income, with no minimum amount required.

Maintains the $800 minimum franchise tax for taxable years before January 1, 2020, with limited exceptions for certain small mining corporations ($25 minimum).

Exempts newly incorporated or qualified corporations from the minimum franchise tax beginning January 1, 2020 and thereafter.

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