BILL NUMBER: AB 43	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 29, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Bocanegra

                        DECEMBER 14, 2012

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


	LEGISLATIVE COUNSEL'S DIGEST


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

   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.  
   This bill would increase the maximum amount of the above credit to
$3,000, commencing January 1, 2014.  
   This bill would take effect immediately as a tax levy. 

   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.  
   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. 
   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.    Section 17052.25 of the  
Revenue and Taxation Code  is amended to read: 
   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.  The credit shall not
exceed two thousand five hundred dollars ($2,500) per minor child.
 
   (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.  
   (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. 
   (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)  , or
  commencing January 1, 2014, three thousand dollars
($3,000),  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.
   SEC.   2.    This act provides for a tax
levy within the meaning of Article IV of the Constitution and shall
go into immediate effect.  
  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.