BILL NUMBER: AB 1928 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 26, 2004
INTRODUCED BY Assembly Member Parra
(Coauthors: Assembly Members Bermudez, Calderon, Frommer,
Lieber, and Spitzer)
(Coauthor: Senator Machado)
FEBRUARY 10, 2004
An act to add and repeal Article 19 (commencing with Section
18881) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1928, as amended, Parra. Taxpayer contributions: California
Military Family Relief Fund.
Provisions relating to the administration of personal income taxes
allow individual taxpayers to contribute amounts in excess of their
tax liability for the support of specified funds.
This bill would allow taxpayers to designate on their tax returns
that a specified amount in excess of their tax liability be
transferred to the California Military Family Relief Fund, which
would be created by this bill. However, the bill would provide that a
voluntary contribution designation for this fund may not be added on
the tax return until another voluntary contribution designation is
removed from that return.
This bill would require that all moneys contributed to the fund
pursuant to these provisions, upon appropriation by the Legislature,
be allocated to the Franchise Tax Board and to the Military
Department to provide financial aid to families in this state
of persons who are members of the California National Guard
or members of the reserve corps of the Armed Forces of the United
States and who have been called to active duty as
a result of the September 11, 2001, terrorist attacks , as
provided.
This bill would provide that these voluntary contribution
provisions are repealed on January 1 of the 5th taxable year
following the taxable year the fund first appears on the tax return.
The bill would further provide that these provisions are repealed
for taxable years beginning on or after January 1 of the calendar
year in which the Franchise Tax Board estimates by September 1 that
the contributions made on returns filed in that calendar year will be
less than $250,000, or an adjusted amount for subsequent taxable
years.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 19 (commencing with Section 18881) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:
Article 19. California Military Family Relief Fund
18881. (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Military Family Relief Fund established by Section 18882.
That designation is to be used as a voluntary contribution on the
tax return.
(b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on a joint return.
(c) A designation shall be made for any taxable year on the
initial return for that taxable year and once made is irrevocable.
If payments and credits reported on the return, together with any
other credits associated with the taxpayer's account, do not exceed
the taxpayer's liability, the return shall be treated as though no
designation has been made. If no designee is specified, the
contribution shall be transferred to the General Fund after
reimbursement of the direct actual costs of the Franchise Tax Board
for the collection and administration of funds under this article.
(d) If an individual designates a contribution to more than one
account or fund listed on the tax return, and the amount available is
insufficient to satisfy the total amount designated, the
contribution shall be allocated among the designees on a pro rata
basis.
(e) Upon another voluntary contribution designation being removed
from the form of the return, the Franchise Tax Board shall include on
the form of the return a space labeled the "California Military
Family Relief Fund" to allow for the designation permitted. The form
shall also include in the instructions information that the
contribution may be in the amount of one dollar ($1) or more and that
the contribution shall be used to provide financial aid to families
in this state of persons who are members of the California National
Guard or members of the reserve corps of the Armed Forces of
the United States and who who have been called
to active duty as a result of the September 11, 2001,
terrorist attacks .
(f) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for any contribution made
pursuant to subdivision (a).
18882. There is in the State Treasury the California Military
Family Relief Fund to receive contributions made pursuant to Section
18881. The Franchise Tax Board shall notify the Controller of both
the amount of money paid by taxpayers in excess of their tax
liability and the amount of refund money that taxpayers have
designated pursuant to Section 18881 to be transferred to the
California Military Family Relief Fund. The Controller shall
transfer from the Personal Income Tax Fund to the California Military
Family Relief Fund an amount not in excess of the sum of the amounts
designated by individuals pursuant to Section 18881 for payment into
that fund.
18883. All moneys transferred to the California Military Family
Relief Fund, upon appropriation by the Legislature, shall be
allocated as follows:
(a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
(b) To provide the Military Department for
the administration of the funds for the provision of financial
aid to families in this state of persons who are members of the
California National Guard or a member of the reserve corps
of the Armed Forces of the United States and who have been
called to active duty as a result of the September 11, 2001,
terrorist attacks .
18884. (a) Except as otherwise provided by subdivision (b), this
article shall remain in effect only until January 1 of the fifth
taxable year following the first appearance of the California
Military Family Relief Fund on the tax return, and as of that date is
repealed, unless a later enacted statute, that is enacted before the
applicable date, deletes or extends that date.
(b) If, in the second calendar year after the first taxable year
the California Military Family Relief Fund appears on the tax return,
the Franchise Tax Board estimates by September 1 that contributions
described in this article made on returns filed in that calendar year
will be less than two hundred fifty thousand dollars ($250,000), or
the adjusted amount specified in subdivision (c) for subsequent
taxable years, as may be applicable, then this article is repealed
with respect to taxable years beginning on or after January 1 of that
calendar year. The Franchise Tax Board shall estimate the annual
contribution amount by September 1 of each year using the actual
amounts known to be contributed and an estimate of the remaining year'
s contribution.
(c) For each calendar year, beginning with the third calendar year
that the California Military Family Relief Fund appears on the tax
return, the Franchise Tax Board shall adjust, on or before September
1 of that calendar year, the minimum estimated contribution amount
specified in subdivision (b) as follows:
(1) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the prior September 1 multiplied by the
inflation factor adjustment as specified in paragraph (2) of
subdivision (h) of Section 17041, rounded off to the nearest dollar.
(2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
(d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.