California Revenue and Taxation Code

§ 23809

RTC § 23809 Effective Oct 1, 2025Div. 2 · Part 11 · Ch. 4.5

Statute text

There is hereby imposed a tax on built-in gains attributable to California sources, determined in accordance with the provisions of Section 1374 of the Internal Revenue Code, relating to tax imposed on certain built-in gains, as modified by this section.

(a)(1) The rate of tax specified in Section 1374(b)(1) of the Internal Revenue Code shall be equal to the rate of tax imposed under Section 23151 in lieu of the rate of tax specified in Section 11(b) of the Internal Revenue Code.

(2)In the case of an “S” corporation that is also a financial corporation, the rate of tax specified in paragraph (1) shall be increased by the excess of the rate imposed under Section 23183 over the rate imposed under Section 23151.

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Legislative history

Amended by Stats. 2025, Ch. 231, Sec. 87. (SB 711) Effective October 1, 2025.