SB 1406: Sales and Use Tax Law: vehicles: shell companies.

This bill would amend certain tax laws in California to clarify the definition of a resident for tax purposes. A partnership, limited partnership, or limited liability partnership would be considered a resident of the state if 50% of its interests are held by residents. A shell company, defined as a company with a shareholder, partner, member, or beneficial owner who is a resident, would also be considered a resident. This would expand the scope of crimes related to unpaid taxes, making it a state-mandated local program. The bill would also impose a higher tax on taxpayers and require a two-thirds majority for approval. Reimbursement is not required for certain costs, and the bill would take effect immediately as a tax levy.