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 the account 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 Coastal Commission 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This bill would provide that these voluntary contribution provisions are inoperative and repealed, respectively, on the earlier of January 1 of the 5th taxable year following the taxable year the account first appears on the tax return and December 1 of that year; or 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 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 account, 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.
25(d) If an individual designates a contribution to more than one
26account or fund listed on the tax return, and the amount available
P3 1is insufficient to satisfy the total amount designated, the
2contribution shall be allocated among the designated accounts on
3a pro rata basis.
4(e) The Franchise Tax Board shall revise the form of the return
5to include a space
labeled the “California Beach and Coastal
6Enhancement Account” to allow for the designation permitted
7under subdivision (a). The form shall also include in the
8instructions information that the contribution may be in the amount
9of one dollar ($1) or more and that the contribution shall be used
10for grants and programs that preserve, protect, or enhance coastal
11resources and promote coastal and marine educational activities
12for underserved communities.
13(f) Notwithstanding any other law, a voluntary contribution
14designation for the California Beach and Coastal Enhancement
15Account shall not be added on the tax return until another voluntary
16contribution designation is removed or as soon as space is
17available.
18(g) A deduction shall be allowed under Article 6 (commencing
19with
Section 17201) of Chapter 3 of Part 10 for any contribution
20made pursuant to subdivision (a).
The Franchise Tax Board shall notify the Controller of
22both the amount of money paid by individuals in excess of their
23tax liability and the amount of refund money that individuals have
24designated pursuant to Section 18745 to be transferred to the
25California Beach and Coastal Enhancement Account. The
26Controller shall transfer from the Personal Income Tax Fund to
27the California Beach and Coastal Enhancement Account an amount
28not in excess of the sum of the amounts designated by individuals
29pursuant to Section 18745 for payment into that account.
All money transferred to the California Beach and
31Coastal Enhancement Account, pursuant to Section 18745, upon
32appropriation by the Legislature, shall be allocated as follows:
33(a) To the Franchise Tax Board and the Controller for
34reimbursement of all costs incurred by the Franchise Tax Board
35and the Controller in connection with their duties under this article.
36(b) (1) To the California Coastal Commission to support eligible
37programs awardedbegin insert grantsend insert under the selection criteria established
38by the California
Coastal Commission for the Whale Tail Grants
39Program, and for direct program-related expenses.
P4 1(2) Allbegin delete moneyend deletebegin insert moneysend insert allocated pursuant to paragraph (1) may
2be carried over from the year in which they were received.
(a) Except as otherwise provided in subdivision (b),
4this article shall remain in effect only until January 1 of the fifth
5taxable year following the first appearance of the California Beach
6and Coastal Enhancement Account on the personal income tax
7return, and is repealed as of December 1 of that year.
8(b) (1) By September 1 of the second calendar year and each
9subsequent calendar year that the California Beach and Coastal
10Enhancement Account appears on the tax return, the Franchise
11Tax Board shall do all of the following:
12(A) Determine the minimum contribution amount required to
13be
received during the next calendar year for the account to appear
14on the tax return for the taxable year that includes that next calendar
15year and provide written notification to the California Coastal
16Commission of the amount determined.
17(B) Determine whether the amount of contributions estimated
18to be received during the calendar year will equal or exceed the
19minimum contribution amount determined by the Franchise Tax
20Board for the calendar year pursuant to subparagraph (A). The
21Franchise Tax Board shall estimate the amount of contributions
22to be received by using the actual amounts received and an estimate
23
of the contributions that will be received by the end of that calendar
24year.
25(2) If the Franchise Tax Board determines that the amount of
26the contributions estimated to be received during a calendar year
27will not at least equal the minimum contribution amount for the
28calendar year, this article is inoperative with respect to taxable
29years beginning on or after January 1 of that calendar year, and
30shall be repealed on December 1 of that calendar year.
31(3) For purposes of this section, the minimum contribution
32amount for a calendar year means two hundred fifty thousand
33dollars ($250,000) for the second calendar year after the first
34appearance of the California Beach and Coastal Enhancement
35Account on the personal income tax return or the minimum
36contribution
amount as adjusted pursuant to subdivision (c).
37(c) For each calendar year, beginning with the third calendar
38year after the first appearance of the California Beach and Coastal
39Enhancement Account on the personal income tax return, the
40Franchise Tax Board shall adjust, on or before September 1 of that
P5 1calendar year, the minimum contribution amount specified in
2subdivision (b) as follows:
3(1) The minimum contribution amount for the calendar year
4shall be an amount equal to the product of the minimum
5contribution amount for the prior calendar year multiplied by the
6inflation factor adjustment as specified in subparagraph (A) of
7paragraph (2) of subdivision (h) of Section 17041, rounded off to
8the nearest dollar.
9(2) The inflation factor adjustment used for the calendar year
10shall be based on the figures for the percentage change in the
11California Consumer Price Index for all items received on or before
12August 1 of the calendar year pursuant to paragraph (1) of
13subdivision (h) of Section 17041.
14(d) Notwithstanding the repeal of this article, any contribution
15amounts designated pursuant to this article prior to its repeal shall
16continue to be transferred and disbursed in accordance with this
17article as in effect immediately prior to that repeal.
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