Amended in Assembly April 29, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 43

Introduced by Assembly Member Bocanegra

December 14, 2012

An act to begin delete add Section 5143.5 to end delete begin insert amend Section 17052.25 of end insert the Revenue and Taxation Code, relating to taxation begin insert , to take effect immediately, tax levy end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 43, as amended, Bocanegra. begin delete Property taxation: refund actions. end delete begin insert Income taxes: credits: adoption costs. end insert

begin insert

The Personal Income Tax Law authorizes various credits against the taxes imposed by that law, including a credit in an amount equal to 50% of specified adoption costs, not to exceed $2,500 per minor child.

end insert begin insert

This bill would increase the maximum amount of the above credit to $3,000, commencing January 1, 2014.

end insert begin insert

This bill would take effect immediately as a tax levy.

end insert begin delete

Existing law authorizes a taxpayer to bring an action in the superior court against a county or a city to recover a tax that the board of supervisors of the county or the city council of the city has refused to refund, as specified.

end delete begin delete

This bill would provide that in all actions or proceedings for judicial review of a county board’s decision, including those initiated by an assessor, if remand is required for any reason, the court shall issue a written statement of decision or order that explains the factual and legal basis for the court’s decision as to each of the material controversial issues and includes instructions for remand to the county board.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 17052.25 of the end insert begin insert Revenue and Taxation
Code end insert begin insert is amended to read: end insert

17052.25.  

(a) For each taxable year beginning on or after
January 1, 1994, there shall be allowed as a credit against the “net
tax,” as defined in Section 17039, an amount equal to 50 percent
of the costs paid or incurred by a taxpayer for the adoption of any
minor child who is a citizen or legal resident of the United States
and was in the custody of a public agency of either this state or a
political subdivision of this state. begin delete The credit shall not exceed two
thousand five hundred dollars ($2,500) per minor child. end delete

begin insert

(1)  For each taxable year beginning on or after January 1,
1994, and before January 1, 2014, the credit shall not exceed two
thousand five hundred dollars ($2,500) per minor child.

end insert begin insert

(2) For each taxable year beginning on or after January 1,
2014, the credit shall not exceed three thousand dollars ($3,000)
per minor child.

end insert

(b) “Costs” eligible for the credit pursuant to subdivision (a)
shall include the following:

(1) Fees for required services of either the Department of Social
Services or a licensed adoption agency.

(2) Travel and related expenses for the adoptive family that are
directly related to the adoption process.

(3) Medical fees and expenses that are not reimbursed by
insurance and are directly related to the adoption process.

(c) The credit authorized by this section shall be claimed for
the taxable year in which the decree or order of adoption is entered
pursuant to Section 8612 of the Family Code. However, the
allowable credit claimed may include any costs of that adoption
paid or incurred in any prior taxable year.

(d) In the case where the credit allowed by this section exceeds
the “net tax,” the excess may be carried over to reduce the “net
tax” in the following year, and succeeding years if necessary, until
the total credit of two thousand five hundred dollars ($2,500) begin insert , or
commencing January 1, 2014, three thousand dollars ($3,000), end insert
per minor child is exhausted.

(e) Any deduction otherwise allowed under this part for any
amount paid or incurred by the taxpayer upon which the credit is
based shall be reduced by the amount of the credit allowed under
this section.

begin insert

begin insert SEC. end insert begin insert 2. end insert   

end insert begin insert

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.

end insert

begin delete

SECTION 1.  

Section 5143.5 is added to the Revenue and
Taxation Code, to read:

5143.5.  

In all actions or proceedings for judicial review of a
county board’s decision, including those initiated by an assessor,
if remand is required for any reason, the court shall issue a written
statement of decision or order that explains the factual and legal
basis for the court’s decision as to each of the material controversial
issues and includes instructions for remand to the county board.

end delete