Thus, the composite tax rate was 3.5 percent for financial S corporations and 11.3 percent for banks and other financial corporations not electing S corporation status. The total number of Bank and Corporation returns filed was 418,262, a 0.8 percent increase over the previous year. This, the largest portion of taxes paid, represents 31.5 percent of total corporate tax liability but represents only 44,969 corporate tax returns, or 10.8 percent of the total number of corporate tax returns filed. The next highest amounts of tax were generated by the trade sector and the transportation, communication and utilities industries. Estimated Tax Corporations are required to pay their tax on a current basis through estimated tax payments for the privilege of exercising their franchise to do business in California.
Corporations pay the estimated tax in quarterly installments during the income year.
This represents 5.9 percent of the total tax liability. These overpayments were either applied to the estimated tax for next year, applied to another income year's liability, or refunded.