BILL NUMBER: AB 43	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 6, 2014
	AMENDED IN ASSEMBLY  APRIL 29, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Bocanegra

                        DECEMBER 14, 2012

    An act to amend Section 17052.25 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.   An act to amend Section 6901 of the Revenue and
Taxation Code, relating to taxation. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 43, as amended, Bocanegra.  Income taxes: credits:
adoption costs.  Sales and use taxes: claim for refund:
customer refunds.  
   Under the Sales and Use Tax Law, any amount collected or paid in
excess of what is due under that law is required to be credited by
the State Board of Equalization against any other amounts due and
payable from the person from whom the excess amount was collected or
by whom it was paid, and the balance refunded to the person, as
provided. Under existing law, when an amount represented by a person
to a customer as constituting reimbursement for taxes due under the
Sales and Use Tax Law is computed upon an amount that is not taxable
or is in excess of the taxable amount and is actually paid by the
customer to the person, the amount paid is required to be returned by
the person to the customer upon notification by the board or by the
customer that this excess has been ascertained.  
   This bill would authorize a person to make an irrevocable election
to assign to the customer the right to receive the amount that would
be refunded to the person, provided specified conditions are met,
including that the amount be $50,000 or greater, and would authorize
the board to make that payment to the customer.  
   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. 
   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 6901 of the   Revenue
and Taxation Code   is amended to read: 
   6901.   (a)    If the board determines that any
amount, penalty, or interest has been paid more than once or has been
erroneously or illegally collected or computed, the board shall set
forth that fact in the records of the board and shall certify the
amount collected in excess of the amount legally due and the person
from whom it was collected or by whom paid. The excess amount
collected or paid shall be credited by the board on any amounts then
due and payable from the person from whom the excess amount was
collected or by whom it was paid under this part, and the balance
shall be refunded to the person, or his or her successors,
administrators, or executors,  or customer as provided in
subdivision (b),  if a determination by the board is made in any
of the following cases: 
   (a) 
    (1)  Any amount of tax, interest, or penalty was not
required to be paid. 
   (b) 
    (2)  Any amount of prepayment of sales tax, interest, or
penalty paid pursuant to Article 1.5 (commencing with Section 6480)
of Chapter 5 was not required to be paid. 
   (c) 
    (3)  Any amount that is approved as a settlement
pursuant to Section 7093.5. 
   (b) A person may make an irrevocable election to assign to the
customer the right to receive the amount refunded if all of the
following conditions are met:  
   (1) The entire amount represents excess tax reimbursement that is
required to be paid by the person to a single customer under Section
6901.5.  
   (2) The amount to be refunded is fifty thousand dollars ($50,000)
or greater.  
   (3) The irrevocable election to assign to the customer the amount
refunded is evidenced by a statement signed by the person and the
customer authorizing the named customer to receive the amount
refunded.  
   (4) The signed statement is submitted to the board in conjunction
with the person's claim for refund.  
   Any 
    (c)     Any  overpayment of the use
tax by a purchaser to a retailer who is required to collect the tax
and who gives the purchaser a receipt therefor pursuant to Article 1
(commencing with Section 6201) of Chapter 3 shall be credited or
refunded by the state to the purchaser.  Any proposed
determination by the board pursuant to this section with respect to
an amount in excess of fifty thousand dollars ($50,000) shall be
available as a public record for at least 10 days prior to the
effective date of that determination.  
   (d) Any proposed determination by the board pursuant to this
section with respect to an amount in excess of fifty thousand dollars
($50,000) shall be available as a public record for at least 10 days
prior to the effective date of that determination.  
  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.
   (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.