Section 23703 Of Article 1. Exemptions From This Part From California Revenue And Taxation Code >> Division 2. >> Part 11. >> Chapter 4. >> Article 1.
23703
. (a) For purposes of this section, "charitable corporation"
means a corporation defined in Section 12582.1 of the Government Code
that is required to comply with the filing requirements set forth in
Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of
Division 3 of Title 2 of the Government Code.
(b) (1) The exemption granted to a charitable corporation under
the provisions of Article 1 (commencing with Section 23701) shall be
revoked by the Franchise Tax Board in accordance with this section if
the charitable corporation fails to file with the Attorney General
any registration or periodic report required by Article 7 (commencing
with Section 12580) of Chapter 6 of Part 2 of Division 3 of Title 2
of the Government Code.
(2) A revocation shall occur under this section only after the
Attorney General has first notified the Franchise Tax Board in
writing that a charitable corporation has failed to file any
registration or periodic report on or before the due date thereof,
and the Franchise Tax Board has mailed a notice to the charitable
corporation stating that the Franchise Tax Board intends to revoke
the exemption if the charitable corporation does not file with the
Attorney General all past due and currently due documents required by
Article 7 (commencing with Section 12580) of Chapter 6 of Part 2 of
Division 3 of Title 2 of the Government Code.
(3) After receipt of all required documents from a charitable
corporation, the Attorney General shall provide prompt notification
to the Franchise Tax Board and the charitable corporation that the
charitable corporation has filed all past due and currently due
documents required by Article 7 (commencing with Section 12580) of
Chapter 6 of Part 2 of Division 3 of Title 2 of the Government Code.
(c) (1) If the Franchise Tax Board does not obtain notification
from the Attorney General pursuant to paragraph (3) of subdivision
(b) that the charitable corporation has complied with the filing
requirements described in subdivision (b) by the last day of the
applicable period, the Franchise Tax Board shall revoke the exemption
granted to the charitable corporation pursuant to Section 23777 on
the first day after the applicable period.
(2) For purposes of this subdivision, the applicable period means:
(A) For notifications of noncompliance from the Attorney General
that are received by the Franchise Tax Board before the effective
date of the act adding this section, the applicable period shall be
120 days after the effective date of the act adding this section.
(B) For notifications of noncompliance from the Attorney General
that are received by the Franchise Tax Board on or after the
effective date of the act adding this section, the applicable period
shall be 120 days after the Franchise Tax Board mails notification of
the intent to revoke the exemption granted to the charitable
corporation.
(d) For a charitable corporation whose exemption has been
disallowed pursuant to Section 23703, as amended by Section 94 of
Chapter 862 of the Statutes of 2000, prior to the effective date of
the act adding this section, the Franchise Tax Board may reestablish
that charitable corporation's exempt status under Section 23778,
after receipt of notification from the Attorney General pursuant to
paragraph (3) of subdivision (b) that the filing requirements set
forth in Article 7 (commencing with Section 12580) of Chapter 6 of
Part 2 of Division 3 of Title 2 of the Government Code have been
fulfilled. For purposes of reestablishing the charitable corporation'
s exempt status under Section 23778, disallowance under Section
23703, as amended by Section 94 of Chapter 862 of the Statutes of
2000, shall be considered a revocation of exemption.
(e) This section shall apply with respect to notifications of
noncompliance received from the Attorney General before, on, or after
the effective date of the act adding this section.