BILL NUMBER: SB 1359 CHAPTERED
BILL TEXT
CHAPTER 456
FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2012
APPROVED BY GOVERNOR SEPTEMBER 22, 2012
PASSED THE SENATE AUGUST 31, 2012
PASSED THE ASSEMBLY AUGUST 31, 2012
AMENDED IN ASSEMBLY AUGUST 31, 2012
AMENDED IN ASSEMBLY AUGUST 24, 2012
INTRODUCED BY Senator Simitian
FEBRUARY 24, 2012
An act to amend Sections 18796 and 18864 of the Revenue and
Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1359, Simitian. Personal income taxes: contributions:
California Breast Cancer Research Fund: California Cancer Research
Fund.
Personal Income Tax Law allows taxpayers, until January 1, 2013,
to designate on their tax returns that a specified amount in excess
of their tax liability be contributed to the California Breast Cancer
Research Fund.
This bill would extend the operation of those provisions until
January 1, 2018.
The Personal Income Tax Law allows taxpayers to designate on their
tax returns that a specified amount in excess of their tax liability
be contributed to the California Cancer Research Fund. Existing law
provides that these provisions are repealed on either January 1 of
the 5th taxable year following the taxable year the fund first
appears on the personal income tax return or on January 1 of an
earlier taxable year, if the Franchise Tax Board estimates that the
annual contribution amount will be less than $250,000, or an adjusted
amount, as specified, for subsequent taxable years.
This bill would instead provide that these provisions are repealed
on either January 1, 2018, or on January of an earlier taxable year,
if the Franchise Tax Board estimates that the annual contribution
amount will be less than the amounts described above.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 18796 of the Revenue and Taxation Code is
amended to read:
18796. (a) This article shall remain in effect only until January
1, 2018, and as of that date is repealed.
(b) (1) By September 1, 2006, and by September 1 of each
subsequent calendar year that the California Breast Cancer Research
Fund appears on a tax return, the Franchise Tax Board shall do all of
the following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Provide written notification to the University of California
of the amount determined in subparagraph (A).
(C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of the contributions to be received by
using the actual amounts received and an estimate of the
contributions that will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
(3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the 1997 calendar year or the minimum contribution
amount adjusted pursuant to subdivision (c).
(c) For each calendar year, beginning with calendar year 1998, the
Franchise Tax Board shall adjust, on or before September 1 of that
calendar year, the minimum contribution amount specified in
subdivision (b) as follows:
(1) The minimum contribution amount for the calendar year shall be
an amount equal to the product of the minimum contribution amount
for the prior calendar year 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 that are 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.
SEC. 2. Section 18864 of the Revenue and Taxation Code is amended
to read:
18864. (a) Except as otherwise provided in subdivision (b), this
article shall remain in effect only until January 1, 2018, and as of
that date is repealed.
(b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the California Cancer Research Fund
appears on the tax return, the Franchise Tax Board shall do all of
the following:
(A) Determine the minimum contribution amount required to be
received during the next calendar year for the fund to appear on the
tax return for the taxable year that includes that next calendar
year.
(B) Provide written notification to the Regents of the University
of California of the amount determined in subparagraph (A).
(C) Determine whether the amount of contributions estimated to be
received during the calendar year will equal or exceed the minimum
contribution amount determined by the Franchise Tax Board for the
calendar year pursuant to subparagraph (A). The Franchise Tax Board
shall estimate the amount of contributions to be received by using
the actual amounts received and an estimate of the contributions that
will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of the
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years
beginning on or after January 1 of that calendar year.
(3) For purposes of this section, the minimum contribution amount
for a calendar year means two hundred fifty thousand dollars
($250,000) for the second calendar year after the first appearance of
the California Cancer Research Fund on the personal income tax
return or the adjusted minimum contribution amount adjusted pursuant
to subdivision (c).
(c) For each calendar year, beginning with the third calendar year
after the first appearance of the California Cancer Research Fund on
the personal income tax return, the Franchise Tax Board shall
adjust, on or before September 1 of that calendar year, the minimum
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 calendar year multiplied by the
inflation factor adjustment as specified in subparagraph (A) of
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.