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 returnsbegin delete that a specified amountend deletebegin insert, under the designation titled “Protect Our Coast and Oceans Fund,” that a contributionend insert in excess of their tax liability bebegin delete transferredend deletebegin insert
madeend insert 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This bill would provide that these voluntary contribution provisions are inoperative and repealed, respectively, on the earlier of January 1 of the 5th taxable year following the taxable year the account first appears on the tax return and December 1 of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 returnbegin insert,
8under the space titled “Protect Our Coast and Oceans Fund,”end insert that
9a contribution in excess of tax liability, if any, be made to the
10California Beach and Coastal Enhancement Account established
11by paragraph (1) of subdivision (c) of Section 5067 of the Vehicle
12Code.
13(b) A contribution shall be in full dollar amounts and may be
14made individually by each signatory on a joint return.
15(c) A designation made under subdivision (a) shall be made for
16any taxable year on the
original return for that taxable year, and
17once made shall be irrevocable. In the event that payments and
18credits reported on the return, together with any other credits
19associated with the individual’s account, do not exceed the
20individual’s tax liability, if any, the return shall be treated as though
21no designation had been made. In the event that no designee is
22specified, the contribution shall, after reimbursement of the direct
23actual costs of the Franchise Tax Board for the collection and
P3 1administration of funds under this article, be transferred to the
2General Fund.
3(d) If an individual designates a contribution to more than one
4account or fund listed on the tax return, and the amount available
5is insufficient to satisfy the total amount designated, the
6contribution shall be allocated among the designated accounts on
7a pro
rata basis.
8(e) The Franchise Tax Board shall revise the form of the return
9to include a space labeled thebegin delete “California Beach and Coastal begin insert end insertbegin insert“end insertbegin insertProtect Our Coast and Oceans Fundend insertbegin insert”end insert
10Enhancement Account”end delete
11 to allow for the designation permitted under subdivision (a). The
12form shall also include in the instructions information that the
13contribution may be in the amount of one dollar ($1) or more and
14that
the contribution shall be used for grants and programs that
15preserve, protect, or enhance coastal resources and promote coastal
16and marine educational activities for underserved communities.
17(f) Notwithstanding any other law, a voluntary contribution
18designation for thebegin delete California Beach and Coastal Enhancement begin insert end insertbegin insertProtect Our Coast and Oceans Fundend insert shall not be added
19Accountend delete
20on the tax return until another voluntary contribution designation
21is removed or as soon as space is available.
22(g) A deduction shall be
allowed under Article 6 (commencing
23with Section 17201) of Chapter 3 of Part 10 for any contribution
24made pursuant to subdivision (a).
The Franchise Tax Board shall notify the Controller of
26both the amount of money paid by individuals in excess of their
27tax liability and the amount of refund money that individuals have
28designated pursuant to Section 18745 to be transferred to the
29California Beach and Coastal Enhancement Account. The
30Controller shall transfer from the Personal Income Tax Fund to
31the California Beach and Coastal Enhancement Account an amount
32not in excess of the sum of the amounts designated by individuals
33pursuant to Section 18745 for payment into that account.
All moneybegin insert designated under the Protect Our Coast and
35Oceans Fund space on a tax return andend insert transferred to the California
36Beach and Coastal Enhancement Account, pursuant to Section
3718745, upon appropriation by the Legislature, shall be allocated
38as follows:
P4 1(a) To the Franchise Tax Board and the Controller for
2reimbursement of all costs incurred by the Franchise Tax Board
3and the Controller in connection with their duties under this article.
4(b) (1) To the California Coastal Commission to support eligible
5programs awarded
grants under the selection criteria established
6by the California Coastal Commission for the Whale Tail Grants
7Program, and for direct program-related expenses.
8(2) All moneys allocated pursuant to paragraph (1) may be
9carried over from the year in which they were received.
(a) Except as otherwise provided in subdivision (b),
11this article shall remain in effect only until January 1 of the fifth
12taxable year following the first appearance of thebegin delete California Beach begin insert end insertbegin insertProtect Our Coast and Oceans
13and Coastal Enhancement Accountend delete
14Fundend insert on the personal income tax return, and is repealed as of
15December 1 of that year.
16(b) (1) By September 1 of the second calendar year and
each
17subsequent calendar year that thebegin delete California Beach and Coastal begin insert end insertbegin insertProtect Our Coast and Oceans Fundend insert
18Enhancement Accountend delete
19 appears on the tax return, the Franchise Tax Board shall do all of
20the following:
21(A) Determine the minimum contribution amount required to
22be received during the next calendar year for the account to appear
23on the tax return for the taxable year that includes that next calendar
24year and provide written notification to the California Coastal
25Commission of the amount determined.
26(B) Determine
whether the amount of contributions estimated
27to be received during the calendar year will equal or exceed the
28minimum contribution amount determined by the Franchise Tax
29Board for the calendar year pursuant to subparagraph (A). The
30Franchise Tax Board shall estimate the amount of contributions
31to be received by using the actual amounts received and an estimate
32
of the contributions that will be received by the end of that calendar
33year.
34(2) If the Franchise Tax Board determines that the amount of
35the contributions estimated to be received during a calendar year
36will not at least equal the minimum contribution amount for the
37calendar year, this article is inoperative with respect to taxable
38years beginning on or after January 1 of that calendar year, and
39shall be repealed on December 1 of that calendar year.
P5 1(3) For purposes of this section, the minimum contribution
2amount for a calendar year means two hundred fifty thousand
3dollars ($250,000) for the second calendar year after the first
4appearance of thebegin delete California Beach and Coastal Enhancement begin insert
Protect Our Coast and Oceans Fundend insert on the personal
5Accountend delete
6income tax return or the minimum contribution amount as adjusted
7pursuant to subdivision (c).
8(c) For each calendar year, beginning with the third calendar
9year after the first appearance of thebegin delete California Beach and Coastal begin insert end insertbegin insertProtect Our Coast and Oceans Fundend insert on
10Enhancement Accountend delete
11the personal income tax return, the Franchise Tax Board shall
12adjust, on or before September 1 of that calendar year, the
13minimum contribution amount specified in subdivision (b) as
14follows:
15(1) The minimum contribution amount for the calendar year
16shall be an amount equal to the product of the minimum
17contribution amount for the prior calendar year multiplied by the
18inflation factor adjustment as specified in subparagraph (A) of
19paragraph (2) of subdivision (h) of Section 17041, rounded off to
20the nearest dollar.
21(2) The inflation factor adjustment used for the calendar year
22shall be based on the figures for the percentage change in the
23California Consumer Price Index for all items received on or before
24August 1 of the calendar year pursuant to paragraph (1) of
25subdivision (h) of Section 17041.
26(d) Notwithstanding the repeal of this article, any contribution
27amounts designated pursuant to this article prior to its repeal shall
28continue to be transferred and
disbursed in accordance with this
29article as in effect immediately prior to that repeal.
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