54042. (a) An association organized pursuant to this chapter may request the board of supervisors of the county in which the association’s principal place of business is located to issue a certificate stating that the association meets the requirements of subdivision (b). When the certificate is provided by the board of supervisors to the association, the Franchise Tax Board shall exempt the association from the minimum franchise tax as provided in paragraph (2) of subdivision (c) of Section 23153 of the Revenue and Taxation Code.
(b) The board of supervisors shall issue a certificate if all of the following conditions are met:
(1) The association is located in an economically distressed area.
(2) At least 90 percent of the association’s members are, or have been, within the previous 12 months unemployed or dependent on public social services for their income.
(3) The request is made during the association’s first income year.
(c) The certificate issued by the board of supervisors shall be retained by the association. The association shall forward a copy of the certificate to the Franchise Tax Board upon request.
(d) As used in this section, “economically distressed area” means a county in which the unemployment rate is either 9 percent, or 2 percent above the statewide average, whichever is greater; or in which 8 percent of the residents are dependent on public social services for their income, or 2 percent more of the residents than the statewide average are dependent on public social services for their income, whichever is greater.
(Added by Stats. 1994, Ch. 427, Sec. 1. Effective September 7, 1994.)