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City Business Tax Program – Data Exchange

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Informing the Public:

According to the Franchise Tax Board: Effective January 2009, and as the result of the enactment of Senate Bill 1146 (Cedillo) (Chapter 345, Statutes of 2008), FTB and participating cities began exchanging data through a reciprocal agreement. There is no charge to either party.

City data helps identify self-employed individuals who are not filing required individual and business entity income tax returns, and state tax data helps identify businesses that may have a local business tax filing requirement.

Law references are – Revenue and Taxation Code Sections: 19542, 19542.1, 19542.3,19551, 19551.1, 19551.5, 19552, andCalifornia Civil Code 1798.29

Types of data exchanged

Cities provide FTB: FTB provides cities:
  • Business and owner’s name
  • Business or residence address
  • FEIN or SSN
  • North American Industry Classification Code or Standard Industry Classification Code
  • Taxpayer name
  • Taxpayer address
  • Taxpayer SSN or FEIN
  • Entity type
  • Principal Business Activity (PBA) Code from Form 540 – California Resident Income Tax Return