AB 754, as amended, Muratsuchi. 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 thebegin delete fundend deletebegin insert accountend insert pursuant to these provisions, upon appropriation by the Legislature, be allocated to the Franchise Tax Board and the
Controller for reimbursement and to the Californiabegin delete Beach and Coastal Enhancement Accountend deletebegin insert Coastal Commissionend insert 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 repealedbegin insert, respectively,end insert on the earlier ofbegin delete the following: inoperative onend delete January 1 of the 5th taxable year following the taxable year thebegin delete fundend deletebegin insert
accountend insert first appears on the tax return andbegin delete repealed onend delete December 1 of thatbegin delete taxableend delete yearbegin insert;end insert orbegin delete inoperativeend delete for taxable years beginning on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, andbegin delete are repealedend delete on December 1 of that calendar year.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Article 5.1 (commencing with Section 18745) is
2added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and
3Taxation Code, to read:
4
(a) An individual may designate on the tax return that
8a contribution in excess of tax liability, if any, be made to the
9California Beach and Coastal Enhancement Account established
10by paragraph (1) of subdivision (c) of Section 5067 of the Vehicle
11Code.
12(b) A contribution shall be in full dollar amounts and may be
13made individually by each signatory on a joint return.
14(c) A designation made under subdivision (a) shall be made for
15any taxable year on the original return for that taxable year, and
16once made shall be irrevocable. In the event that payments and
17credits reported on the return, together with any
other credits
18associated with the individual’s accountbegin insert,end insert do not exceed the
19individual’s tax liability, if any, the return shall be treated as though
20no designation had been made. In the event that no designee is
21specified, the contribution shall, after reimbursement of the direct
22actual costs of the Franchise Tax Board for the collection and
23administration of funds under this article, be transferred to the
24General Fund.
P3 1(d) If an individual designates a contribution to more than one
2account or fund listed on the tax return, and the amount available
3is insufficient to satisfy the total amount designated, the
4contribution shall be allocated among the designated accounts on
5a pro rata basis.
6(e) The Franchise Tax Board shall revise the form of the return
7to include a space labeled the “California Beach and Coastal
8Enhancement Account” to allow for the designation permitted
9under subdivision (a). The form shall also include in the
10instructions information that the contribution may be in the amount
11of one dollar ($1) or more and that the contribution shall be used
12for grants and programs that preserve, protect, or enhance coastal
13resources and promote coastal and marine educational activities
14for underserved communities.
15(f) Notwithstanding any other law, a voluntary contribution
16designation for the California Beach and Coastal Enhancement
17Account shall not be added on the tax return until another voluntary
18contribution designation is removed or as soon as space is
19available.
20(g) A deduction shall be allowed under Article 6 (commencing
21with Section 17201) of Chapter 3 of Part 10 for any contribution
22made pursuant to subdivision (a).
The Franchise Tax Board shall notify the Controller of
24both the amount of money paid by individuals in excess of their
25tax liability and the amount of refund money that individuals have
26designated pursuant to Section 18745 to be transferred to the
27California Beach and Coastal Enhancement Account. The
28Controller shall transfer from the Personal Income Tax Fund to
29the California Beach and Coastal Enhancement Account an amount
30not in excess of the sum of the amounts designated by individuals
31pursuant to Section 18745 for payment into thatbegin delete fund.end deletebegin insert account.end insert
begin delete(a)end deletebegin delete end deleteAll money transferred to the California Beach and
33Coastal Enhancement Account, pursuant to Section 18745, upon
34appropriation by the Legislature, shall bebegin delete used toend deletebegin insert allocated as
35follows:end insert
36begin insert(a)end insertbegin insert end insertbegin insertTo the Franchise Tax Board and the Controller for
37reimbursement of all costs
incurred by the Franchise Tax Board
38and the Controller in connection with their duties under this article.end insert
39begin insert(b)end insertbegin insert end insertbegin insert(1)end insertbegin insert end insertbegin insertTo the California Coastal Commission toend insert support eligible
40programs awarded under the selection criteria established by the
P4 1California Coastal Commission for the Whale Tail Grants Program,
2and for direct program-related expenses.
3(b)
end delete
4begin insert(2)end insert All money allocated pursuant tobegin delete subdivision (a)end deletebegin insert paragraph
5(1)end insert may be carried over from the year in which they were received.
(a) Except as otherwise provided in subdivision (b),
7this article shall remain in effect only until January 1 of the fifth
8taxable year following the first appearance of the California Beach
9and Coastal Enhancement Account on the personal income tax
10return, and is repealed as of December 1 of thatbegin delete taxableend delete year.
11(b) (1) By September 1 of the second calendar year and each
12subsequent calendar year that the California Beach and Coastal
13Enhancement Account appears on the tax return, the Franchise
14Tax Board shall do all of the following:
15(A) Determine the minimum contribution amount required to
16be received during the next calendar year for thebegin delete fundend deletebegin insert accountend insert to
17appear on the tax return for the taxable year that includes that next
18calendar year and provide written notification to the California
19Coastal Commission of the amount determined.
20(B) Determine whether the amount of contributions estimated
21to be received during the calendar year will equal or exceed the
22minimum contribution amount determined by the Franchise Tax
23Board for the calendar year pursuant to subparagraph (A). The
24Franchise Tax Board shall estimate the amount of contributions
25to be received by using the actual amounts received and an estimate
26
of the contributions that will be received by the end of that calendar
27year.
28(2) If the Franchise Tax Board determines that the amount of
29the contributions estimated to be received during a calendar year
30will not at least equal the minimum contribution amount for the
31calendar year, this article is inoperative with respect to taxable
32years beginning on or after January 1 of that calendar year, and
33shall be repealed on December 1 of that calendar year.
34(3) For purposes of this section, the minimum contribution
35amount for a calendar year means two hundred fifty thousand
36dollars ($250,000) for the second calendar year after the first
37appearance of the California Beach and Coastal Enhancement
38Account on the personal income tax return or the minimum
39contribution amount as adjusted
pursuant to subdivision (c).
P5 1(c) For each calendar year, beginning with the third calendar
2year after the first appearance of the California Beach and Coastal
3Enhancement Account on the personal income tax return, the
4Franchise Tax Board shall adjust, on or before September 1 of that
5calendar year, the minimum contribution amount specified in
6subdivision (b) as follows:
7(1) The minimum contribution amount for the calendar year
8shall be an amount equal to the product of the minimum
9contribution amount for the prior calendar year multiplied by the
10inflation factor adjustment as specified in subparagraph (A) of
11paragraph (2) of subdivision (h) of Section 17041, rounded off to
12the nearest dollar.
13(2) The inflation factor
adjustment used for the calendar year
14shall be based on the figures for the percentage change in the
15California Consumer Price Index for all items received on or before
16August 1 of the calendar year pursuant to paragraph (1) of
17subdivision (h) of Section 17041.
18(d) Notwithstanding the repeal of this article, any contribution
19amounts designated pursuant to this article prior to its repeal shall
20continue to be transferred and disbursed in accordance with this
21article as in effect immediately prior to that repeal.
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