California Revenue and Taxation Code

§ 17145

RTC § 17145 Effective Oct 6, 2011Div. 2 · Part 10 · Ch. 3 · Art. 3

Statute text

(a)A regulated investment company, as defined in Section 851 of the Internal Revenue Code, relating to definition of regulated investment company, or series thereof, is qualified to pay exempt-interest dividends to its shareholders if, at the close of each quarter of its taxable year, at least 50 percent of the value of its total assets consists of obligations which, when held by an individual, the interest therefrom is exempt from taxation by this state.

(b)For purposes of this section:

(1)“Aggregate reported amount” means the aggregate amount of dividends reported by the company under paragraph (4) as exempt-interest dividends for the taxable year (including exempt-interest dividends paid after the close of the taxable year described in Section 855 of the Internal Revenue Code).

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Legislative history

Amended by Stats. 2011, Ch. 490, Sec. 2. (AB 1423) Effective October 6, 2011.