Amended in Senate June 19, 2015

Amended in Assembly April 22, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 485


Introduced by Assembly Member Williams

(Principal coauthor: Senator Allen)

February 23, 2015


An act to add and repeal Article 23 (commencing with Section 18901) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

AB 485, as amended, Williams. Personal income taxes: voluntary contributions: Prevention of Animal Homelessness and Cruelty Fund.

Existing law allows an individual taxpayer to contribute amounts in excess of his or her personal income tax liability for the support of specified funds.

This bill would allow an individual to designate on his or her tax return that a specified amount in excess of his or her tax liability be transferred to the Prevention of Animal Homelessness and Cruelty Fund, which would be created by this bill. The bill would require the Franchise Tax Board to revise the tax return form to include a space for the designation of contributions to the fund when another voluntary designation is removed from the form or there is space, whichever occurs first.

This bill would require money contributed to the fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs, as provided, and to the Department of Food and Agriculture for the distribution of grants on a competitive basisbegin delete toend deletebegin insert to, among others,end insert a city, county, or city and county animal control agency or shelter, as specified, for thebegin delete purposes of, among other things, funding programs designed to prevent and eliminate cat and dog homelessness.end deletebegin insert purpose of supporting spay and neuter activities by that entity to prevent and eliminate cat and dog homelessness.end insert

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 Prevention of Animal Homelessness and Cruelty Fund on the tax return, or January 1, 2022, whichever occurs first, 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 at least equal the minimum contribution amount, as defined, for that calendar year, in which case these provisions would be repealed on December 1 of that year.

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.  

Article 23 (commencing with Section 18901) is
2added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and
3Taxation Code
, to read:

4 

5Article 23.  Prevention of Animal Homelessness and Cruelty
6Fund
7

 

8

18901.  

(a) An individual may designate on the tax return that
9a contribution in excess of the tax liability, if any, be made to the
10Prevention of Animal Homelessness and Cruelty Fund established
11by Section 18901.1. That designation is to be used as a voluntary
12contribution on the tax return.

13(b) The contributions shall be in full dollar amounts and may
14be made individually by each signatory on a joint return.

15(c) A designation under subdivision (a) shall be made for a
16taxable year on the original return for that taxable year and once
17made is irrevocable. If payments and credits reported on the return,
18together with any other credits associated with the taxpayer’s
P3    1 account, do not exceed the taxpayer’s liability, the return shall be
2treated as though no designation has been made.

3(d) When another voluntary contribution designation is removed
4from the tax return, or as soon as space is available, whichever
5occurs first, the Franchise Tax Board shall revise the form of the
6return to include a space labeled the “Prevention of Animal
7Homelessness and Cruelty Fund” to allow for the designation
8permitted. The form shall also include in the instructions
9information that the contribution may be in the amount of one
10dollar ($1) or more and that the contribution shall be used to fund
11all of the following:

12(1) Programs designed to prevent and eliminate cat and dog
13homelessness.

14(2) Research that explores novel approaches to preventing and
15eliminating pet homelessness.

16(3) Prevention, investigation, and prosecution of animal cruelty
17and neglect.

18(e) A deduction shall be allowed under Article 6 (commencing
19with Section 17201) of Chapter 3 of Part 10 for any contribution
20made pursuant to subdivision (a).

21

18901.1.  

There is hereby established in the State Treasury the
22Prevention of Animal Homelessness and Cruelty Fund to receive
23contributions made pursuant to Section 18901. The Franchise Tax
24Board shall notify the Controller of both the amount of money
25paid by taxpayers in excess of their tax liability and the amount
26of refund money that taxpayers have designated pursuant to Section
2718901 to be transferred to the Prevention of Animal Homelessness
28and Cruelty Fund. The Controller shall transfer from the Personal
29Income Tax Fund to the Prevention of Animal Homelessness and
30Cruelty Fund an amount not in excess of the sum of the amounts
31designated by individuals pursuant to Section 18901 for payment
32into that fund.

33

18901.2.  

(a) All money transferred to the Prevention of Animal
34Homelessness and Cruelty Fund, upon appropriation by the
35Legislature, shall be allocated as follows:

36(1) To the Franchise Tax Board and the Controller for
37reimbursement of all costs incurred by the Franchise Tax Board
38and the Controller in connection with their duties under this article.

begin delete

39(2) To the Department of Food and Agriculture for the
40distribution of grants to a city, county, or city and county animal
P4    1control agency or shelter that is current on its reporting
2requirements to the State Department of Public Health, Veterinary
3Public Health Section. Funds obtained by a city, county, or city
4and county under a grant from the Prevention of Animal
5Homelessness and Cruelty Fund may be used to pay for the
6following:

7(A) Programs designed to prevent and eliminate cat and dog
8homelessness.

9(B) Research that explores novel approaches to preventing and
10eliminating pet homelessness.

11(C) Prevention, investigation, and prosecution of animal cruelty
12and neglect.

13(b) Grants distributed pursuant to this article may be paid to
14outside agencies that are under contract or in a demonstrated
15partnership with that city, county, or city and county to conduct
16these activities.

end delete
begin insert

17(2) To the Department of Food and Agriculture for the
18distribution of grants as follows:

end insert
begin insert

19(A) The first two hundred fifty thousand dollars ($250,000) shall
20be distributed to, and used by, a city, county, or city and county
21animal control agency or shelter that is current on its reporting
22requirements to the State Department of Public Health, Veterinary
23Public Health Section for the sole purpose of supporting spay and
24neuter activities by that entity to prevent and eliminate cat and
25dog homelessness.

end insert
begin insert

26(B) The remaining moneys, if any, shall be used by programs
27designed to prevent and eliminate cat and dog homelessness or
28 programs for the prevention, investigation, and prosecution of
29animal cruelty and neglect. The grants are to be distributed to a
30city, county, or city and county animal control agency or shelter
31that is current on its reporting requirements to the State
32Department of Public Health, Veterinary Public Health Section,
33a society for the prevention of cruelty to animals affiliate, or a
34humane society affiliate. A society for the prevention of cruelty to
35animals affiliate or a human society affiliate shall be in California,
36in active status, as described on the business search page of the
37Secretary of State’s Internet Web site, and exempt from federal
38income taxation as an organization described in Section 501(c)(3)
39of the Internal Revenue Code.

end insert
begin delete

40(c)

end delete

P5    1begin insert(b)end insert The Department of Food and Agriculture shall award grants
2through a competitive, project-specific grant process and shall be
3responsible for overseeing that grant program. A grantee shall not
4use a grant award for administrative expenses or for any purposes
5outside of California.

6

18901.3.  

(a) Except as otherwise provided in subdivision (b),
7this article shall remain in effect only until January 1 of the fifth
8taxable year following the first appearance of the Prevention of
9Animal Homelessness and Cruelty Fund on the tax return, or
10January 1, 2022, whichever occurs first, and is repealed as of
11December 1 of that year.

12(b) (1) By September 1 of the second calendar year and by
13September 1 of each subsequent calendar year that the Prevention
14of Animal Homelessness and Cruelty Fund appears on the tax
15return, the Franchise Tax Board shall do all of the following:

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

20(B) Provide written notification to the Department of Food and
21Agriculture of the amount determined in subparagraph (A).

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

30(2) If the Franchise Tax Board determines that the amount of
31the contributions estimated to be received during a calendar year
32will not at least equal the minimum contribution amount for the
33calendar year, this article shall be inoperative with respect to
34taxable years beginning on or after January 1 of that calendar year
35and shall be repealed on December 1 of that 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 second calendar year after the first
39appearance of the Prevention of Animal Homelessness and Cruelty
P6    1Fund on the personal income tax return or the adjusted minimum
2contribution amount adjusted pursuant to subdivision (c).

3(c) For each calendar year, beginning with the third calendar
4year after the first appearance of the Prevention of Animal
5Homelessness and Cruelty Fund on the tax return, the Franchise
6Tax Board shall adjust, on or before September 1 of that calendar
7year, the minimum estimated contribution amount specified in
8subdivision (b) as follows:

9(1) The minimum contribution amount for the calendar year
10shall be an amount equal to the product of the minimum
11contribution amount for the prior calendar year, multiplied by the
12inflation factor adjustment as specified in paragraph (2) of
13subdivision (h) of Section 17041, rounded off to the nearest dollar.

14(2) The inflation factor adjustment used for the calendar year
15shall be based on the figures for the percentage change in the
16California Consumer Price Index received on or before August 1
17of the calendar year pursuant to paragraph (1) of subdivision (h)
18of Section 17041.



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