as amended, Dickinson. Personal income tax: deductions: pet adoption
begin delete costs: voluntary contributions.end delete
(1) The Personal Income Tax Law authorizes various deductions in computing income that is subject to tax under that law.end delete
This bill, for taxable years beginning on or after January 1, 2015, and
before January 1, 2020, would allow a
begin delete deduction from gross income,end delete not to exceed $100, under that law for the qualified costs paid or incurred by a taxpayer for the adoption of a pet from a qualified animal rescue organization.
(2) The Personal Income Tax Law authorizes taxpayers to contribute amounts in excess of their tax liability for the support of specified funds.end delete
This bill would authorize taxpayers to designate on their tax return that a specified amount in excess of their tax liability be transferred to the Pet Adoption Cost Deduction Fund, which would be created by this bill. The bill would prohibit a voluntary contribution designation for the Pet Adoption Cost Deduction Fund from being added on the tax return until another voluntary contribution designation is removed.end delete
The bill would require moneys in the Pet Adoption Cost Deduction Fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board, to the Controller for reimbursement of costs in connection with providing personal income tax deductions for pet adoptions, as provided, and the balance to the Department of Food and Agriculture for the distribution of grants to eligible municipal shelters, as defined, for the purpose of providing food and shelter to abandoned and impounded animals, as specified.end delete
The bill would provide that these provisions would remain in effect only until January 1 of the 5th taxable year following the first appearance of the Pet Adoption Cost Deduction Fund on the tax return, but would further provide for an earlier repeal if the Franchise Tax Board determines that the amount of contributions estimated to be received during a calendar year will not equal or exceed the minimum contribution amount, as defined, for that calendar year, in which case these provisions would be repealed on December 1 of that year.end delete
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17072 of the Revenue and Taxation Code
2 is amended to read:
(a) Section 62 of the Internal Revenue Code, relating
4to adjusted gross income defined, shall apply, except as otherwise
6(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating
7to certain expenses of elementary and secondary school teachers,
8shall not apply.
9(c) Section 62(a)(21) of the Internal Revenue Code, relating to
10attorneys fees relating to awards to whistleblowers, shall not apply.
11(d) For taxable years beginning on or after January 1, 2015, and
12before January 1, 2020, the deduction allowed by Section 17239,
P3 1relating to qualified costs for the adoption of a pet from a qualified
2animal rescue organization, shall apply.
Section 17239 is added to the Revenue and
5Taxation Code, to read:
(a) For each taxable year beginning on or after January
71, 2015, and before January 1, 2020, there shall be allowed as a
8deduction an amount equal to the qualified costs paid or incurred
9during the taxable year by a taxpayer for the adoption of a pet from
10a qualified animal rescue organization.
11(b) For the purposes of this section, the following definitions
13(1) “Pet” means an animal adopted from a qualified animal
14rescue organization that is not used by the taxpayer in a trade or
15business or for the production of income.
16(2) “Qualified animal rescue organization” means a public
17animal control agency or shelter, humane society shelter, or rescue
19(3) “Qualified costs” means amounts paid or incurred to a
20qualified animal rescue organization to adopt a pet, not to exceed
21one hundred dollars ($100).
22(4) “Rescue group” means an organization exempt from federal
23income taxation as, an organization described in Section 501(c)(3)
24of the Internal Revenue Code, whose primary purpose is the
25placement of dogs, cats, or other animals that have been removed
26from a public animal control agency or shelter, society for the
27prevention of cruelty to animals shelter, or humane society, or that
28have been surrendered or relinquished to the rescue group by the
30(c) The deduction allowed under this section for a taxable year
31shall not exceed one hundred dollars ($100).
32(d) This section shall remain in effect only until December 1,
332020, and as of that date is repealed.
Article 18 (commencing with Section 18887) is added
37to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
38Code, to read:
(a) An individual may designate on the tax return that
4a contribution in excess of the tax liability, if any, be made to the
5Pet Adoption Cost Deduction Fund established by Section 18888.
6That designation is to be used as a voluntary contribution on the
8(b) The contributions shall be in full dollar amounts and may
9be made individually by each signatory on a joint return.
10(c) A designation under subdivision (a) shall be made for a
11taxable year on the original return for that taxable year, and once
12made shall be irrevocable. If payments and credits reported on the
13return, together with any other credits associated with the
14individual’s account, do not exceed the individual’s liability, the
15return shall be treated as though no designation has been made. If
16a designee is not specified, the contribution shall be transferred to
17the General Fund after reimbursement of the direct actual costs of
18the Franchise Tax Board for the collection and administration of
19funds under this article.
20(d) If an individual designates a contribution to more than one
21account or fund listed on the tax return, and the amount available
22is insufficient to satisfy the total amount designated, the
23contribution shall be allocated among the designees on a pro rata
25(e) The Franchise Tax Board shall revise the form of the return
26to include a space labeled “Pet Adoption Cost Deduction Fund”
27to allow for the designation permitted under subdivision (a). The
28form shall also include in the instructions information that the
29contribution may be in the amount of one dollar ($1) or more and
30that the contribution shall be used to reimburse the California State
31General Fund for the reduction in receipts attributable to the Pet
32Adoption Fee Deduction allowed pursuant to Section 17239, with
33any contributions in excess of the reduction in receipts used to
34provide grants to eligible municipal shelters for the purpose of
35providing food and shelter to abandoned and impounded animals.
36(f) Notwithstanding any other law, a voluntary contribution
37designation for the Pet Adoption Cost Deduction Fund shall not
38be added on the tax return until another voluntary contribution
39designation is removed.
P5 1(g) A deduction shall be allowed under Article 6 (commencing
2with Section 17201) of Chapter 3 of Part 10 for any contribution
3made pursuant to subdivision (a).
There is hereby established in the State Treasury the
5Pet Adoption Cost Deduction Fund to receive contributions made
6pursuant to Section 18887. The Franchise Tax Board shall notify
7the Controller of both the amount of money paid by taxpayers in
8excess of their tax liability and the amount of refund money that
9taxpayers have designated pursuant to Section 18887 to be
10transferred to the Pet Adoption Cost Deduction Fund. The
11Controller shall transfer from the Personal Income Tax Fund to
12the Pet Adoption Cost Deduction Fund an amount not in excess
13of the sum of the amounts designated by individuals pursuant to
14Section 18887 for payment into that fund.
All moneys transferred to the Pet Adoption Cost
16Deduction Fund, upon appropriation by the Legislature, shall be
17allocated as follows:
18(a) To the Franchise Tax Board and the Controller for
19reimbursement of all costs incurred by the Franchise Tax Board
20and the Controller in connection with their duties under this article.
21(b) To the Controller for reimbursement of all losses incurred
22by the General Fund in connection with providing tax deductions
23for pet adoptions pursuant to Section 17239.
24(c) (1) To the Department of Food and Agriculture for
25distribution of grants to eligible municipal shelters for the purpose
26of providing food and shelter to abandoned and impounded
27animals. The department may use up to 5 percent of the money
28allocated to municipal shelters for administrative costs incurred
29in connection with the Pet Adoption Fee Deduction Fund.
30(2) For the purposes of this article, “eligible municipal shelter”
31means a city or county animal control agency or shelter that is
32current on its reporting requirements to the State Department of
33Public Health, Veterinary Public Health Section. The State
34Department of Public Health shall, upon the written request of the
35Department of Food and Agriculture, make available information
36regarding whether a city or county animal control agency or shelter
37is current on its reporting requirements pursuant to this paragraph.
38(3) The Department of Food and Agriculture shall
do all of the
39following with respect to the distribution of grants:
P6 1(A) Accept applications for grants from eligible municipal
3(B) Process and approve, or reject all applications on a
4first-come-first-served basis, in the following manner:
5(i) Eligible municipal shelters processing fewer than 5,000 dogs
6and cats each year shall receive up to seven thousand five hundred
7dollars ($7,500), if funds are available.
8(ii) Eligible municipal shelters processing between 5,000 and
925,000 dogs and cats each year shall receive up to fifteen thousand
10dollars ($15,000), if funds are available.
11(iii) Eligible municipal shelters processing more than 25,000
12dogs and cats shall receive up to twenty-two thousand five hundred
13dollars ($22,500), if funds are available.
14(C) Make applications available to eligible municipal shelters
15on the first day of the second calendar year after the Pet Adoption
16Fee Deduction Fund first appears on the tax return.
17(d) In order to be eligible for grants authorized by this article,
18eligible municipal shelters shall file an application with the
19Department of Food and Agriculture, in the form and manner as
20specified by the Department of Food and Agriculture.
21(e) Any grants distributed under this article create an additional
22funding source for food and shelter services and programs for
23eligible municipal shelters and shall be used to supplement, not
24supplant, other funding sources for these services and programs.
(a) Except as otherwise provided in subdivision (b),
26this article shall remain in effect only until January 1 of the fifth
27taxable year following the first appearance of the Pet Adoption
28Cost Deduction Fund on the personal income tax return, and is
29repealed as of December 1 of that year.
30(b) (1) By September 1 of the second calendar year and each
31subsequent calendar year that the Pet Adoption Cost Deduction
32Fund appears on the tax return, the Franchise Tax Board shall do
33all 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
38(B) Provide written notification to the Department of Food and
39Agriculture of the amount determined in subparagraph (A).
P7 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
9(2) If the Franchise Tax Board determines that the amount of
10the contributions estimated to be received during a calendar year
11will not at least equal the minimum contribution amount for the
12calendar year, this article shall be inoperative with respect to
13taxable years beginning on or after January 1 of that calendar year
14and shall be repealed on December 1 of that year.
15(3) For purposes of this section, the minimum contribution
16amount for a calendar year means two hundred fifty thousand
17dollars ($250,000) for the second calendar year after the first
18appearance of the Pet Adoption Cost Deduction Fund on the
19personal income tax return or the minimum contribution amount
20as adjusted pursuant to subdivision (c).
21(c) For each calendar year, beginning with the third calendar
22year after the first appearance of the Pet Adoption Cost Deduction
23Fund on the personal income tax return, the Franchise Tax Board
24shall adjust, on or before September 1 of that calendar year, the
25minimum contribution amount specified in subdivision (b) as
27(1) The minimum contribution amount for the calendar year
28shall be an amount equal to the product of the minimum
29contribution amount for the prior calendar year multiplied by the
30inflation factor adjustment as specified in subparagraph (A) of
31paragraph (2) of subdivision (h) of Section 17041, rounded off to
32the nearest dollar.
33(2) The inflation factor adjustment used for the calendar year
34shall be based on the figures for the percentage change in the
35California Consumer Price Index for all items received on or before
36August 1 of the calendar year pursuant to paragraph (1) of
37subdivision (h) of Section 17041.
38(d) Notwithstanding the repeal of this article, any contribution
39amounts designated pursuant to this article prior to its repeal shall
P8 1continue to be transferred and disbursed in accordance with this
2article as in effect immediately prior to that repeal.