BILL NUMBER: AB 2291	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Mendoza

                        FEBRUARY 21, 2008

   An act to add and repeal Article 5.7 (commencing with Section
18755) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2291, as introduced, Mendoza. Taxpayer contributions: Low
Cost/Free Spay-Neuter Fund.
   Existing law, relating to the administration of personal income
taxes, authorizes individual taxpayers to contribute amounts in
excess of their tax liability for the support of specified funds or
accounts.
   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 Low Cost/Free Spay-Neuter 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 the return.
   This bill would provide that all moneys contributed to the fund
pursuant to these provisions, upon appropriation by the Legislature,
be allocated to the Franchise Tax Board and the Controller for
reimbursement of costs, as provided, and to the appropriate state
department as established by the Department of Food and Agriculture
for allocation to municipal shelters for the purposes of providing
low cost or free spay-neuter services.
   This bill would provide that these voluntary contribution
provisions are repealed on either January of the fifth taxable year
following the taxable year the fund first appears on the personal
income tax return or on January 1 of an earlier calendar year, if the
Franchise Tax Board estimates that the annual contribution amount
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 5.7 (commencing with Section 18755) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:

      Article 5.7.  Low Cost/Free Spay-Neuter Fund


   18755.  (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
Low Cost/Free Spay-Neuter Fund established by Section 18755.1. 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.
   (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) When another voluntary contribution designation is removed
from the tax return, the Franchise Tax Board shall revise the form of
the return to include a space labeled the "Low Cost/Free Spay-Neuter
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 low cost or free spay-neuter services
associated with a municipal shelter in California.
   (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).
   18755.1.  There is hereby established in the State Treasury the
Low Cost/Free Spay-Neuter Fund to receive contributions made pursuant
to Section 18755. 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 18755 to be transferred to the
Low Cost/Free Spay-Neuter Fund. The Controller shall transfer from
the Personal Income Tax Fund to the Low Cost/Free Spay-Neuter Fund an
amount not in excess of the sum of the amounts designated by
individuals pursuant to Section 18755 for payment into that fund.
   18755.2.  All moneys transferred to the Low Cost/Free Spay-Neuter
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) (1) To the appropriate state department as established by the
Department of Food and Agriculture for allocation to municipal
shelters for the purposes of providing low cost or free spay-neuter
services.
   (2) For the purposes of this article, "municipal shelter" means a
city or county animal control agency or shelter.
   18755.3.  (a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only until January 1 of the fifth
taxable year following the first appearance of the Low Cost/Free
Spay-Neuter 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 Low Cost/Free Spay-Neuter 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 Low Cost/Free Spay-Neuter 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.