California Legislature—2013–14 Regular Session

Assembly BillNo. 1561


Introduced by Assembly Member Rodriguez

January 29, 2014


An act to amend Sections 18804 and 18808 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 1561, as introduced, Rodriguez. Taxpayer contributions: California firefighters’ and peace officer memorial funds.

The Personal Income Tax Law authorizes an individual to contribute amounts in excess of his or her tax liability for the support of specified funds, including, among others, the California Firefighters’ Memorial Fund and the California Peace Officers’ Memorial Foundation Fund. Existing law provides for the repeal of the contribution provisions for these funds on January 1, 2016.

This bill would instead repeal those provisions on January 1, 2026.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) The California Fire Foundation and the California Peace
4Officers’ Memorial Foundation have been at the center of
5California’s commitment to honor firefighters and law enforcement
6officers who have given their lives in the line of duty in service to
7the citizens of this great state.

P2    1(b) Sponsored by The California Fire Foundation and the
2California Peace Officers’ Memorial Foundation, respectively, the
3California Firefighters Memorial and the California Peace Officers’
4Memorial were individually designed and built, and are currently
5maintained to forever memorialize the dedication of our state’s
6fallen heroes.

7(c) Both memorials serve as lasting tributes to the men and
8women who gave their lives to help protect their fellow
9Californians.

10(d) Each year, hundreds gather in Sacramento as our state joins
11together during ceremonies honoring and remembering the
12firefighting and law enforcement personnel who made the ultimate
13sacrifice to keep California safe.

14(e) Both The California Fire Foundation and the California
15Peace Officers’ Memorial Foundation are the official statewide
16nonprofit, public benefit organizations in receipt of the proceeds
17from two state personal income tax checkoff funds.

18(f) Voluntary taxpayer contributions, which are generated
19through the two personal income tax checkoffs on the personal
20income tax form, are earmarked specifically for the California Fire
21Fighters Memorial and the California Peace Officers’ Memorial.

22(g) Both The California Fire Foundation and the Peace Officers’
23Memorial Foundation are charged with funding ongoing
24maintenance and repair of their respective memorials for the
25thousands who continue to visit these sacred, solemn grounds,
26while each also hosts an annual memorial ceremony to honor our
27brave firefighters, law enforcement officers, and the families they
28leave behind.

29(h) Extending the sunset date of the voluntary contributions to
30the California Firefighters’ Memorial Fund and the California
31Peace Officers’ Memorial Foundation Fund for state personal
32income tax checkoffs is appropriate, and doing so will continue
33to allow these foundations to carry out the important goal of
34ensuring the memorial sites remain sacred ground for all
35Californians to remember and reflect upon the contributions and
36sacrifices of our state’s bravest.

37

SEC. 2.  

Section 18804 of the Revenue and Taxation Code is
38amended to read:

39

18804.  

(a) This article shall remain in effect only until January
401,begin delete 2016,end deletebegin insert 2026,end insert and as of that date is repealed, unless a later enacted
P3    1statute, which is enacted before January 1,begin delete 2016,end deletebegin insert 2026,end insert deletes or
2extends that date.

3(b) (1) If the repeal date specified in subdivision (a) has been
4deleted and if, thereafter, in any calendar year the Franchise Tax
5Board estimates by September 1 that contributions described in
6this article made on returns filed in that calendar year will be less
7than the minimum contribution amount prescribed by paragraph
8(2), then this article is inoperative with respect to taxable years
9beginning on and after January 1 of that calendar year. The
10Franchise Tax Board shall estimate the annual contribution amount
11by September 1 of each year using the actual amounts known to
12be contributed and an estimate of the remaining year’s
13contributions.

14(2) For purposes of this section, “minimum contribution amount”
15means two hundred fifty thousand dollars ($250,000) for any
16calendar year.

17(c) Notwithstanding the repeal of this article, any contribution
18amounts designated pursuant to this article prior to its repeal shall
19continue to be transferred and disbursed in accordance with this
20article as in effect immediately prior to that repeal.

21

SEC. 3.  

Section 18808 of the Revenue and Taxation Code is
22amended to read:

23

18808.  

(a) This article shall remain in effect only until January
241,begin delete 2016,end deletebegin insert 2026,end insert and as of that date is repealed, unless a later enacted
25statute, which is enacted before January 1,begin delete 2016,end deletebegin insert 2026,end insert deletes that
26date.

27(b) If the repeal date specified in subdivision (a) has been
28deleted, all of the following apply:

29(1) By September 1 of the calendar year beginning after the
30effective date of the act deleting the repeal date and by September
311 of each subsequent calendar year that the California Peace
32begin delete Officer’send deletebegin insert Officersend insertbegin insertend insert Memorial Foundation Fund appears on a tax
33return, the Franchise Tax Board shall do all of the following:

34(A) Determine the minimum contribution amount required to
35be received during the next calendar year for the fund to appear
36on the tax return for the taxable year that includes that next calendar
37year.

38(B) Provide written notification to the California Peace Officer
39Memorial Commission of the amount determined in subparagraph
40(A).

P4    1(C) Determine whether the amount of contributions estimated
2to be received during the calendar year will equal or exceed the
3minimum contribution amount determined by the Franchise Tax
4Board for the calendar year pursuant to subparagraph (A). The
5Franchise Tax Board shall estimate the amount of contributions
6to be received by using the actual amounts received and an estimate
7of the contributions that will be received by the end of that calendar
8year.

9(2) If the Franchise Tax Board determines that the amount of
10contributions estimated to be received during a calendar year will
11not at least equal the minimum contribution amount for the calendar
12year, this article is repealed with respect to taxable years beginning
13on or after January 1 of that calendar year.

14(3) For purposes of this section, the minimum contribution
15amount for a calendar year means two hundred fifty thousand
16dollars ($250,000) for the first calendar year beginning after the
17effective date of the act that deleted the repeal date specified in
18subdivision (a), or the minimum contribution amount adjusted
19pursuant to subdivision (c).

20(c) For each calendar year, beginning with calendar year 2005,
21the Franchise Tax Board shall adjust, on or before September 1 of
22that calendar year, the minimum contribution amount specified in
23subdivision (b) as follows:

24(1) The minimum contribution amount for the calendar year
25shall be an amount equal to the product of the minimum
26contribution amount for the prior calendar year multiplied by the
27inflation factor adjustment as specified in paragraph (2) of
28subdivision (h) of Section 17041, rounded off to the nearest dollar.

29(2) The inflation factor adjustment used for the calendar year
30shall be based on the figures for the percentage change in the
31California Consumer Price Index received on or before August 1
32of the calendar year pursuant to paragraph (1) of subdivision (h)
33of Section 17041.

34(d) Notwithstanding the repeal of this article, any contribution
35amounts designated pursuant to this article prior to its repeal shall
36continue to be transferred and disbursed in accordance with this
37article as in effect immediately prior to that repeal.



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