Amended in Senate April 16, 2013

Senate BillNo. 116


Introduced by Senator Liu

January 16, 2013


An act tobegin delete amendend deletebegin insert repealend insert Section 18855 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 116, as amended, 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in excess of their tax liability be contributed to the Emergency Food Assistance Programbegin insert, unless earlier repealed for failure to meet annual minimum contribution amountsend insert.

This bill wouldbegin insert remove minimum contribution requirements andend insert extend the operation of these provisionsbegin delete until January 1, 2019.end deletebegin insert indefinitely.end insert

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

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

P1    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 18855 of the end insertbegin insertRevenue and Taxation Codeend insert
2begin insert is repealed.end insert

begin delete
3

18855.  

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41, 2014, and as of that date is repealed, unless a later enacted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

P2    1(b) (1) By September 1, 2006, and by September 1 of each
2subsequent calendar year that the Emergency Food for Families
3Fund appears on a tax return, the Franchise Tax Board shall do all
4of the following:

5(A) Determine the minimum contribution amount required to
6be received during the next calendar year for the fund to appear
7on the tax return for the taxable year that includes that next calendar
8year.

9(B) Provide written notification to the State Department of
10Social Services of the amount determined in subparagraph (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 1999 calendar year or the minimum
27contribution amount adjusted pursuant to subdivision (c).

28(c) For each calendar year, beginning with calendar year 2000,
29the Franchise Tax Board shall adjust, on or before September 1 of
30that calendar year, the estimated contribution amount specified in
31subdivision (b) as follows:

32(1) The minimum contribution amount for the calendar year
33shall be an amount equal to the product of the minimum
34contribution amount for the prior calendar year multiplied by the
35inflation factor adjustment as specified in paragraph (2) of
36subdivision (h) of Section 17041, rounded off to the nearest dollar.

37(2) The inflation factor adjustment used for the calendar year
38shall be based on the figures for the percentage change in the
39California Consumer Price Index received on or before August 1
P3    1of the calendar year pursuant to paragraph (1) of subdivision (h)
2of Section 17041.

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

end delete
begin delete
7

SECTION 1.  

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

9

18855.  

(a) This article shall remain in effect only until January
101, 2019, and as of that date is repealed, unless a later enacted
11statute, that is enacted before January 1, 2019, deletes or extends
12that date.

13(b) (1) By September 1, 2014, and by September 1 of each
14subsequent calendar year that the Emergency Food for Families
15Fund appears on a tax return, the Franchise Tax Board shall do all
16of the following:

17(A) Determine the minimum contribution amount required to
18be received during the next calendar year for the fund to appear
19on the tax return for the taxable year that includes that next calendar
20year.

21(B) Provide written notification to the State Department of
22Social Services of the amount determined in subparagraph (A).

23(C) Determine whether the amount of contributions estimated
24to be received during the calendar year will equal or exceed the
25minimum contribution amount determined by the Franchise Tax
26Board for the calendar year pursuant to subparagraph (A). The
27Franchise Tax Board shall estimate the amount of contributions
28to be received by using the actual amounts received and an estimate
29of the contributions that will be received by the end of that calendar
30year.

31(2) If the Franchise Tax Board determines that the amount of
32contributions estimated to be received during a calendar year will
33not at least equal the minimum contribution amount for the calendar
34year, this article is repealed with respect to taxable years beginning
35on or after January 1 of that calendar year.

36(3) For purposes of this section, the minimum contribution
37amount for a calendar year means two hundred fifty thousand
38dollars ($250,000) for the 1999 calendar year or the minimum
39contribution amount adjusted pursuant to subdivision (c).

P4    1(c) For each calendar year, beginning with calendar year 2000,
2the Franchise Tax Board shall adjust, on or before September 1 of
3that calendar year, the estimated contribution amount specified in
4subdivision (b) as follows:

5(1) The minimum contribution amount for the calendar year
6shall be an amount equal to the product of the minimum
7contribution amount for the prior calendar year multiplied by the
8inflation factor adjustment as specified in paragraph (2) of
9subdivision (h) of Section 17041, rounded off to the nearest dollar.

10(2) The inflation factor adjustment used for the calendar year
11shall be based on the figures for the percentage change in the
12California Consumer Price Index received on or before August 1
13of the calendar year pursuant to paragraph (1) of subdivision (h)
14of Section 17041.

15(d) Notwithstanding the repeal of this article, any contribution
16amounts designated pursuant to this article prior to its repeal shall
17continue to be transferred and disbursed in accordance with this
18article as in effect immediately prior to that repeal.

end delete


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