Cal. RTC § 22000 — California Code / Code rtc / Division 2 / Part 10.8 / Section 22000
Section 22000
Status: in_force

(a) Notwithstanding any other law, for taxable years beginning on or after January 1, 2026, and before January 1, 2030, there shall be imposed on a taxpayer, a tax equal to 100 percent of any settlement fund payment received by the taxpayer during the taxable year.

(b) (1) For purposes of this part, the following definitions shall apply:

(A) “Member of the family” means the following:

(i) The spouse of an individual.

(ii) An individual who bears a relationship to an individual which is described in subparagraphs (A) to (G) of Section 152(d)(2) of the Internal Revenue Code, relating to relationship.

(B) “Settlement fund payment” means any payment, distribution, or monetary transfer received by a taxpayer during the taxable year, from either of the following:

(i) The Anti-Weaponization Fund established by the Department of Justice in relation to President Donald J. Trump v. Internal Revenue Service, Case No. 1:26-cv-20609 (S.D. Fla. 2026), or any subsequent fund, settlement, or agreement.

(ii) Any fund, trust, or account, the assets of which are derived from the outcome, whether by settlement, verdict, or otherwise, of any civil action that was filed by a specified person, who is not the taxpayer, against the United States, or any agency or instrumentality thereof, or against any state and its political subdivisions.

(C) “Specified person” means any of the following:

(i) An individual who served, or is currently serving, as President of the United States.

(ii) A member of the family of an individual who served, or is currently serving, as President of the United States.

(iii) A person controlled, based on principles specified in Section 52(b) of the Internal Revenue Code, by one or more individuals described in clause (i) or (ii).

(D) “Taxpayer” has the same meaning as Sections 17004 and 23037.

(2) Unless the context otherwise requires, the definitions set forth in this part and those in Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001) shall apply to this part.

(c) Any specified settlement fund payment that is taxed under subdivision (a) shall be excluded from the gross income under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) for the taxable year that the specified settlement fund payment is subject to tax.

(d) The tax imposed under subdivision (a) shall not be reduced by any deduction or credit allowed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001).

(e) The tax imposed under subdivision (a) shall be in addition to, and not in place of, any other tax or fee that is due and payable under Part 10 (commencing with Section 17001), Part 10.2 (commencing with Section 18401), or Part 11 (commencing with Section 23001), and shall not change any filing requirements for those taxes and fees.

(f) (1) The tax imposed by this part shall be due and payable on or before the due date of the original return that the taxpayer is required to file pursuant to Part 10.2 (commencing with Section 18401) without regard to any extension of time for filing the return for the taxable year of the imposition of tax imposed under subdivision (a).

(2) All taxes paid pursuant to this section shall be made in the form and manner as prescribed by the Franchise Tax Board.

(3) The tax imposed under this part shall be assessed and collected pursuant to Part 10.2 (commencing with Section 18401), except Articles 6 (commencing with Section 19101) and 7 (commencing with Section 19131) of Chapter 4 of Part 10.2 shall not apply.

(g) (1) The Franchise Tax Board may adopt regulations that are necessary or appropriate to implement this part.

(2) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any regulation, rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this part.

(h) This part shall remain in effect until December 1, 2030, and as of that date is repealed.