Senate BillNo. 116


Introduced by Senator Liu

January 16, 2013


An act to amend Section 18855 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 116, as introduced, Liu. Personal income taxes: contributions: Emergency Food Assistance Program.

The Personal Income Tax Law allows taxpayers, until January 1, 2014, to designate on their tax returns that a specified amount in excess of their tax liability be contributed to the Emergency Food Assistance Program.

This bill would extend the operation of these provisions until January 1, 2019.

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.  

Section 18855 of the Revenue and Taxation Code
2 is amended to read:

3

18855.  

(a) This article shall remain in effect only until January
41,begin delete 2014end deletebegin insert 2019end insert, and as of that date is repealed, unless a later enacted
5statute, that is enacted before January 1,begin delete 2014end deletebegin insert 2019end insert, deletes or
6extends that date.

7(b) (1) By September 1,begin delete 2006end deletebegin insert 2014end insert, and by September 1 of
8each subsequent calendar year that the Emergency Food for
9Families Fund appears on a tax return, the Franchise Tax Board
10shall do all of the following:

P2    1(A) Determine the minimum contribution amount required to
2be received during the next calendar year for the fund to appear
3on the tax return for the taxable year that includes that next calendar
4year.

5(B) Provide written notification to the State Department of
6Social Services of the amount determined in subparagraph (A).

7(C) Determine whether the amount of contributions estimated
8to be received during the calendar year will equal or exceed the
9minimum contribution amount determined by the Franchise Tax
10Board for the calendar year pursuant to subparagraph (A). The
11Franchise Tax Board shall estimate the amount of contributions
12to be received by using the actual amounts received and an estimate
13of the contributions that will be received by the end of that calendar
14year.

15(2) If the Franchise Tax Board determines that the amount of
16contributions estimated to be received during a calendar year will
17not at least equal the minimum contribution amount for the calendar
18year, this article is repealed with respect to taxable years beginning
19on or after January 1 of that calendar year.

20(3) For purposes of this section, the minimum contribution
21amount for a calendar year means two hundred fifty thousand
22dollars ($250,000) for the 1999 calendar year or the minimum
23contribution amount adjusted pursuant to subdivision (c).

24(c) For each calendar year, beginning with calendar year 2000,
25the Franchise Tax Board shall adjust, on or before September 1 of
26that calendar year, the estimated contribution amount specified in
27subdivision (b) as follows:

28(1) The minimum contribution amount for the calendar year
29shall be an amount equal to the product of the minimum
30contribution amount for the prior calendar year multiplied by the
31inflation factor adjustment as specified in paragraph (2) of
32subdivision (h) of Section 17041, rounded off to the 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 received on or before August 1
36of the calendar year pursuant to paragraph (1) of subdivision (h)
37of Section 17041.

38(d) Notwithstanding the repeal of this article, any contribution
39amounts designated pursuant to this article prior to its repeal shall
P3    1continue to be transferred and disbursed in accordance with this
2article as in effect immediately prior to that repeal.



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