23221-23226

REVENUE AND TAXATION CODE
SECTION 23221-23226




23221.  (a) Any credit union that incorporates under the laws of
this state or qualifies to transact intrastate business in this state
shall thereupon prepay a tax of twenty-five dollars ($25) as
provided in Section 23153. The prepayment shall be made to the
Secretary of State with the filing of the articles of incorporation
or the statement and designation by a foreign corporation. The
Secretary of State shall transmit the amount of the prepayment to the
Franchise Tax Board. The Franchise Tax Board shall certify to the
Secretary of State on an individual or class basis those domestic or
foreign corporations that are exempt from prepayment or for which
prepayment to the Secretary of State is waived.
   (b) This section shall become operative and apply beginning on or
after January 1, 2001.



23222.  (a) If a taxpayer commences to do business in this state
during its first taxable year its tax for that year shall be adjusted
upon the basis of the net income received during that taxable year,
at the rate applicable to that year, a credit being allowed for the
prepayment of the minimum tax. The return for the first taxable year,
which shall be filed within 2 months and 15 days after the close of
that year, shall also be the basis for the tax of said taxpayer for
its second taxable year, if its first taxable year is a period of 12
months. In every case in which the first taxable year of a taxpayer
constitutes a period of less than 12 months, or in which a taxpayer
does business for a period of less than 12 months during its first
taxable year, said taxpayer shall pay as a prepayment of the tax for
its second taxable year a tax based on the income for the first
taxable year computed under the law and at the rate applicable to the
second taxable year, the same to be due and payable at the same
times and in the same manner as if that amount were the entire amount
of its tax for that year; and upon the filing of its tax return
within 2 months and 15 days after the close of the second taxable
year it shall pay a tax for said year, at the rate applicable to that
year, based upon its net income received during that year, allowing
a credit for the prepayment; but in no event, except as provided in
Section 23332, shall the tax for the second taxable year be less than
the amount of the prepayment for that year, and said return for its
second taxable year shall also be the basis for the tax of said
taxpayer for its third taxable year, if the second taxable year
constitutes a period of 12 months.
   (b) The provisions of subdivision (a) shall be applicable only if
a taxpayer commenced doing business in this state before January 1,
1972.



23222a.  In every case in which the second or succeeding taxable
years of a commencing taxpayer constitute a period of less than 12
months or in which the taxpayer does business for a period of less
than 12 months during its second or succeeding taxable years, the tax
for such year or years shall be measured by the income of that
period or periods subject to the continuation of the prepayment
procedure outlined in Section 23222. In no event shall the income of
any period or periods herein described be used as the measure of the
tax for the succeeding taxable year, other than the prepayment, until
the last short period is succeeded by a taxable period of 12 months,
in which case the income of the last short period shall, if greater
than the income of the 12-month period, constitute the measure of the
tax for such 12-month period.
   Thereafter the procedure outlined in Section 23222, in respect of
the second and third taxable years, shall apply and the taxpayer
shall not be subject to the provisions of this section.
   In the event that a taxpayer is dissolved or withdraws from this
state while subject to the provisions of this section, its tax for
the year of dissolution or withdrawal shall be measured by its net
income for such year. However, in no event shall the tax be less than
the minimum tax provided by Section 23153.
   The provisions of this section shall be applicable only if a
taxpayer commenced doing business in this state before January 1,
1972.


23223.  (a) When any taxpayer commences to do business in this state
for the first time in any taxable year other than the year of
incorporation or qualification, its tax for that taxable year and for
the succeeding taxable year shall be computed in accordance with the
provisions of Section 23222 relative to first and second taxable
years, a credit being allowed for any tax payable under Section 23153
for the year in which it commences to do business.
   (b) The provisions of subdivision (a) shall be applicable only if
a taxpayer commenced doing business in this state before January 1,
1972.


23224.  (a) Notwithstanding the provisions of Section 23222 and
Section 23223, if a corporation, which has been subject to the
provisions of Chapter 3 commences to do business in this state, its
tax shall be computed as follows:
   (1) Such corporation shall pay a tax under Chapter 3 for the whole
of the year it commences to do such business;
   (2) Such corporation shall, for the taxable year succeeding the
year it commences to do business in this state, pay a tax under this
chapter measured by its income for that taxable year;
   (3) Such corporation shall, for its third taxable year, pay a tax,
under this chapter, measured by its income for its second taxable
year;
   (4) Notwithstanding any other provisions of this part, such
corporation shall file its return for such second and third taxable
years on or before the 15th day of the third month following the
close of its second taxable year.
   (b) The provisions of subdivision (a) shall be applicable only if
a taxpayer commenced doing business in this state before January 1,
1972.



23224.5.  (a) After December 31, 1971, if a corporation which has
been subject to the provisions of Chapter 3 commences to do business
in this state, such corporation shall pay a tax under Chapter 3 for
the whole of the taxable year it commences to do such business.
   (b) For the purposes of Sections 23151.1 and 23183.1, the first
taxable year subsequent to the taxable year the corporation commences
to do such business (as described in subdivision (a)) shall be
treated as the taxable year of commencement.



23225.  The adjusted tax, as provided in Sections 23222 to 23224.5,
inclusive, for any taxable year in excess of the prepayment for that
year, shall be due and payable as provided in Article 2 (commencing
with Section 18601) of Chapter 2 of Part 10.2.



23226.  In the case of the taxpayer taxable in the manner provided
in Sections 23222 to 23224.5, inclusive, reporting income from any
source on a deferred basis, the Franchise Tax Board is authorized to
distribute or apportion such income, or deductions applicable
thereto, if it determines that such distribution or apportionment is
necessary in order to prevent avoidance of taxes or clearly to
reflect the income of the taxpayer.