Amended in Assembly April 2, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1561


Introduced by Assembly Member Rodriguez

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(Coauthors: Assembly Members Allen, Buchanan, Chesbro, Frazier, Garcia, Gonzalez, Hall, Maienschein, Salas, Skinner, Ting, Wieckowski, and Wilk)

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(Coauthors: Senators Block, Huff, and Vidak)

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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 amended, 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 Peacebegin delete Officers’end deletebegin insert Officerend insert 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,begin delete 2026end deletebegin insert 2021end insert.

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

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

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

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

8(b) Sponsored by The California Fire Foundation and the
9California Peacebegin delete Officers’end deletebegin insert Officersend insert Memorial Foundationbegin insert, Inc.end insert,
10respectively, the California Firefighters Memorial and the
11California Peace Officers’ Memorial were individually designed
12and built, and are currently maintained to forever memorialize the
13dedication of our state’s fallen heroes.

14(c) Both memorials serve as lasting tributes to the men and
15women who gave their lives to help protect their fellow
16Californians.

17(d) Each year, hundreds gather in Sacramento as our state joins
18together during ceremonies honoring and remembering the
19firefighting and law enforcement personnel who made the ultimate
20sacrifice to keep California safe.

21(e) Both The California Fire Foundation and the California
22Peacebegin delete Officers’end deletebegin insert Officersend insert Memorial Foundationbegin insert, Inc.end insert are the official
23statewide nonprofit, public benefit organizations in receipt of the
24proceeds from two state personal income tax checkoff funds.

25(f) Voluntary taxpayer contributions, which are generated
26through the two personal income tax checkoffs on the personal
27income tax form, are earmarked specifically for the California
28begin delete Fireend deletebegin deleteFightersend deletebegin insert Firefightersend insert Memorial and the California Peace
29begin delete Officers’end deletebegin insert Officersend insert Memorial.

30(g) Both The California Fire Foundation and thebegin insert Californiaend insert
31 Peacebegin delete Officers’end deletebegin insert Officersend insert Memorial Foundationbegin insert, Inc.end insert are charged
32with funding ongoing maintenance and repair of their respective
33memorials for the thousands who continue to visit these sacred,
34solemn grounds, while each also hosts an annual memorial
35ceremony to honor our brave firefighters, law enforcement officers,
36and the families they leave behind.

37(h) Extending the sunset date of the voluntary contributions to
38the California Firefighters’ Memorial Fund and the California
P3    1Peacebegin delete Officers’end deletebegin insert Officerend insert Memorial Foundation Fund for state
2personal income tax checkoffs is appropriate, and doing so will
3continue to allow these foundations to carry out the important goal
4of ensuring the memorial sites remain sacred ground for all
5Californians to remember and reflect upon the contributions and
6sacrifices of our state’s bravest.

7

SEC. 2.  

Section 18804 of the Revenue and Taxation Code is
8amended to read:

9

18804.  

(a) This article shall remain in effect only until January
101,begin delete 2026end deletebegin insert 2021end insert, and as of that date is repealed, unless a later enacted
11statute, which is enacted before January 1,begin delete 2026end deletebegin insert 2021end insert, deletes or
12extends that date.

13(b) (1) If the repeal date specified in subdivision (a) has been
14deleted and if, thereafter, in any calendar year the Franchise Tax
15Board estimates by September 1 that contributions described in
16this article made on returns filed in that calendar year will be less
17than the minimum contribution amount prescribed by paragraph
18(2), then this article is inoperative with respect to taxable years
19beginning on and after January 1 of that calendar year. The
20Franchise Tax Board shall estimate the annual contribution amount
21by September 1 of each year using the actual amounts known to
22be contributed and an estimate of the remaining year’s
23contributions.

24(2) For purposes of this section, “minimum contribution amount”
25means two hundred fifty thousand dollars ($250,000) for any
26calendar year.

27(c) Notwithstanding the repeal of this article, any contribution
28amounts designated pursuant to this article prior to its repeal shall
29continue to be transferred and disbursed in accordance with this
30article as in effect immediately prior to that repeal.

31

SEC. 3.  

Section 18808 of the Revenue and Taxation Code is
32amended to read:

33

18808.  

(a) This article shall remain in effect only until January
341,begin delete 2026end deletebegin insert 2021end insert, and as of that date is repealed, unless a later enacted
35statute, which is enacted before January 1,begin delete 2026end deletebegin insert 2021end insert, deletes that
36date.

37(b) If the repeal date specified in subdivision (a) has been
38deleted, all of the following apply:

39(1) By September 1 of the calendar year beginning after the
40effective date of the act deleting the repeal date and by September
P4    11 of each subsequent calendar year that the California Peace
2begin delete Officers’end deletebegin insert Officerend insert Memorial Foundation Fund appears on a tax
3return, the Franchise Tax Board shall do all of the following:

4(A) Determine the minimum contribution amount required to
5be received during the next calendar year for the fund to appear
6on the tax return for the taxable year that includes that next calendar
7year.

8(B) Provide written notification to the California Peace Officer
9Memorial Commission of the amount determined in subparagraph
10(A).

11(C) Determine whether the amount of contributions estimated
12to be received during the calendar year will equal or exceed the
13minimum contribution amount determined by the Franchise Tax
14Board for the calendar year pursuant to subparagraph (A). The
15Franchise Tax Board shall estimate the amount of contributions
16to be received by using the actual amounts received and an estimate
17of the contributions that will be received by the end of that calendar
18year.

19(2) If the Franchise Tax Board determines that the amount of
20contributions estimated to be received during a calendar year will
21not at least equal the minimum contribution amount for the calendar
22year, this article is repealed with respect to taxable years beginning
23on or after January 1 of that calendar year.

24(3) For purposes of this section, the minimum contribution
25amount for a calendar year means two hundred fifty thousand
26dollars ($250,000) for the first calendar year beginning after the
27effective date of the act that deleted the repeal date specified in
28subdivision (a), or the minimum contribution amount adjusted
29pursuant to subdivision (c).

30(c) For each calendar year, beginning with calendar year 2005,
31the Franchise Tax Board shall adjust, on or before September 1 of
32that calendar year, the minimum contribution amount specified in
33subdivision (b) as follows:

34(1) The minimum contribution amount for the calendar year
35shall be an amount equal to the product of the minimum
36contribution amount for the prior calendar year multiplied by the
37inflation factor adjustment as specified in paragraph (2) of
38subdivision (h) of Section 17041, rounded off to the nearest dollar.

39(2) The inflation factor adjustment used for the calendar year
40shall be based on the figures for the percentage change in the
P5    1California Consumer Price Index received on or before August 1
2of the calendar year pursuant to paragraph (1) of subdivision (h)
3of Section 17041.

4(d) Notwithstanding the repeal of this article, any contribution
5amounts designated pursuant to this article prior to its repeal shall
6continue to be transferred and disbursed in accordance with this
7article as in effect immediately prior to that repeal.



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