BILL NUMBER: AB 754 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 14, 2013
INTRODUCED BY Assembly Member Muratsuchi
FEBRUARY 21, 2013
An act to amend Section 23501 of the Revenue and Taxation
Code, relating to taxation. 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.
LEGISLATIVE COUNSEL'S DIGEST
AB 754, as amended, Muratsuchi. Corporation income taxes.
Income taxes: voluntary contributions: California
Beach and Coastal Enhancement Account.
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.
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.
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provisions are inoperative and repealed on the earlier of the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repealed on December 1 of that taxable year or inoperative for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years, and are repealed on December 1 of that calendar year.
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.
This bill would make a technical, nonsubstantive change to this
provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 5.1 (commencing with Section
18745) is added to Chapter 3 of Part 10.2 of Division 2 of the
Revenue and Taxation Code , to read:
Article 5.1. California Beach and Coastal Enhancement Account
18745. (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).
18746. 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.
18747. (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.
18748. (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.
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.