Amended in Assembly March 14, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 754

Introduced by Assembly Member Muratsuchi

February 21, 2013

begin delete An act to amend Section 23501 of the Revenue and Taxation Code, relating to taxation. end delete begin insert An act to add and repeal Article 5.1 (commencing with Section 18745) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 754, as amended, Muratsuchi. begin delete Corporation income taxes. end delete begin insert Income taxes: voluntary contributions: California Beach and Coastal Enhancement Account. end insert

begin insert

The Personal Income Tax Law authorizes individuals to contribute amounts in excess of their tax liability for the support of specified funds. Existing law creates the California Beach and Coastal Enhancement Account in the California Environmental License Plate Fund.

end insert begin insert

This bill would authorize individuals to designate on their tax returns that a specified amount in excess of their tax liability be transferred to the California Beach and Coastal Enhancement Account. This bill would require 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 and to the California Beach and Coastal Enhancement Account for grants and programs that preserve, protect, or enhance coastal resources and promote coastal and marine educational activities for underserved communities.

end insert begin insert

This bill would provide that these voluntary contribution provisions are inoperative and repealed on the earlier of the following: inoperative on January 1 of the 5th taxable year following the taxable year the fund first appears on the tax return and repealed on December 1 of that taxable year or inoperative for taxable years beginning on or after January 1 of the calendar year in which the Franchise Tax Board estimates by September 1 that the contributions made on returns filed in that calendar year will be less than $250,000, or an adjusted amount for subsequent taxable years, and are repealed on December 1 of that calendar year.

end insert begin delete

The Corporation Tax Law imposes a tax upon every corporation at a specified rate upon its net income derived from sources within this state, except as otherwise provided.

end delete begin delete

This bill would make a technical, nonsubstantive change to this provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . 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 Article 5.1 (commencing with Section 18745) is
added to Chapter 3 of Part 10.2 of Division 2 of the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 5.1. end insert   California Beach and Coastal Enhancement Account

 

begin insert 18745. end insert   

(a) An individual may designate on the tax return that
a contribution in excess of tax liability, if any, be made to the
California Beach and Coastal Enhancement Account established
by paragraph (1) of subdivision (c) of Section 5067 of the Vehicle
Code.

(b) A contribution shall be in full dollar amounts and may be
made individually by each signatory on a joint return.

(c) A designation made under subdivision (a) shall be made for
any taxable year on the original return for that taxable year, and
once made shall be irrevocable. In the event that payments and
credits reported on the return, together with any other credits
associated with the individual’s account do not exceed the
individual’s tax liability, if any, the return shall be treated as
though no designation had been made. In the event that no designee
is specified, the contribution shall, after reimbursement of the
direct actual costs of the Franchise Tax Board for the collection
and administration of funds under this article, be transferred to
the General Fund.

(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 designated accounts on
a pro rata basis.

(e) The Franchise Tax Board shall revise the form of the return
to include a space labeled the “California Beach and Coastal
Enhancement Account” to allow for the designation permitted
under subdivision (a). 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
for grants and programs that preserve, protect, or enhance coastal
resources and promote coastal and marine educational activities
for underserved communities.

(f) Notwithstanding any other law, a voluntary contribution
designation for the California Beach and Coastal Enhancement
Account shall not be added on the tax return until another
voluntary contribution designation is removed or as soon as space
is available.

(g) 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).

begin insert 18746. end insert   

The Franchise Tax Board shall notify the Controller
of both the amount of money paid by individuals in excess of their
tax liability and the amount of refund money that individuals have
designated pursuant to Section 18745 to be transferred to the
California Beach and Coastal Enhancement Account. The
Controller shall transfer from the Personal Income Tax Fund to
the California Beach and Coastal Enhancement Account an amount
not in excess of the sum of the amounts designated by individuals
pursuant to Section 18745 for payment into that fund.

begin insert 18747. end insert   

(a) All money transferred to the California Beach and
Coastal Enhancement Account, pursuant to Section 18745, upon
appropriation by the Legislature, shall be used to support eligible
programs awarded under the selection criteria established by the
California Coastal Commission for the Whale Tail Grants
Program, and for direct program-related expenses.

(b) All money allocated pursuant to subdivision (a) may be
carried over from the year in which they were received.

begin insert 18748. end insert   

(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 California Beach
and Coastal Enhancement Account on the personal income tax
return, and is repealed as of December 1 of that taxable year.

(b) (1) By September 1 of the second calendar year and each
subsequent calendar year that the California Beach and Coastal
Enhancement Account 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 and provide written notification to the California
Coastal Commission of the amount determined.

(B) 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 inoperative with respect to taxable
years beginning on or after January 1 of that calendar year, and
shall be repealed on December 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 Beach and Coastal Enhancement
Account on the personal income tax return or the minimum
contribution amount as adjusted pursuant to subdivision (c).

(c) For each calendar year, beginning with the third calendar
year after the first appearance of the California Beach and Coastal
Enhancement Account 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 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 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 for all items 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.

end insert

begin delete

SECTION 1.  

Section 23501 of the Revenue and Taxation Code
is amended to read:

23501.  

(a) There shall be imposed upon every corporation,
other than a bank, for each taxable year, a tax at the rate of 7.6
percent upon its net income derived from sources within this state
on or after January 1, 1937, other than income for any period for
which the corporation is subject to taxation pursuant to Chapter 2
(commencing with Section 23101), according to or measured by
its net income.

(b) For calendar or fiscal years ending after June 30, 1973, the
rate of tax shall be 9 percent instead of 7.6 percent as provided by
subdivision (a).

(c) For calendar or fiscal years ending after December 31, 1979,
the rate of tax shall be the rate specified for those years by Section
23151.

end delete