The California Constitution provides for state taxation. Which are the synopses of key sections from California Constitution?

1. The state may impose tax on persons, corporations, or other entities; interest on state and local government bonds is exempt from tax; income from nonprofit state college-level educational institutions is exempt from tax if the income is not unrelated business income and the income is used exclusively for educational purposes; and a nonprofit organization that is exempted by statute from state income taxation is also exempt from any local business license tax or fee.

2. The Legislature may tax corporations, including state and national banks, and their franchises by any method not prohibited by the California Constitution, the U.S. Constitution, any statute, or laws of the United States. Unless otherwise provided by the Legislature, the tax on state and national banks is according to or measured by their net income and is in lieu of all other taxes and license fees upon banks, except real property taxes and vehicle registration and license fees.

3. The state must impose an annual tax on each insurer doing business in California at a rate of 2.35% (5% for ocean marine insurers), unless a majority of the Legislature votes to change the tax rate. The tax is in lieu of other state and local taxes and licenses, except real property taxes, taxes with respect to a trust department or trust business, retaliatory exactions, ocean marine insurance taxes, and vehicle registration and license fees.

4. Every tax is presumed paid after 30 years from the time the taxes became a lien, unless the property subject to the lien has been sold in the manner provided by the Legislature for the payment of tax.

Group of answer choices

• 1, 2 and 4.

1, 2 and 3.

 2, 3 and 4.

 1, 2, 3 and 4.