Amended in Senate September 4, 2015

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 Bill No. 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 begin insert the development of a mechanism to provide ongoing public awareness through activities that will promote the charitable tax deduction for the fund and seek continued contributions and end insert the distribution of grants on a competitive basis to, among others, a city, county, or city and county animal control agency or shelter, as specified, for the purpose of supporting spay and neuter activities by that entity to prevent and eliminate cat and dog homelessness.

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:

SECTION 1.  

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

 

Article 23.  Prevention of Animal Homelessness and Cruelty
Fund

 

18901.  

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

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

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

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

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

begin delete

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

end delete begin delete

(3)

end delete

begin insert (2) end insert  Prevention, investigation, and prosecution of animal cruelty
and neglect.

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

18901.1.  

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

18901.2.  

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

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

(2) To the Department of Food and Agriculture for begin delete the
distribution of grants end delete begin insert allocation end insert as follows:

begin insert

(A) Up to 5 percent of the funds allocated to the department
shall be used by the department for the development of a
mechanism to provide ongoing public awareness through activities
that will promote the charitable tax deduction for the fund and
seek continued contributions. These activities may include
convening a philanthropic roundtable, developing literature for
use by the city, county, or city and county animal control agency
or shelter that is current on its reporting requirements to the State
Department of Public Health, Veterinary Public Health Section,
a society for the prevention of cruelty to animals affiliate, or a
humane society affiliate for dissemination, and whatever other
activities are deemed necessary and appropriate to promote the
fund.

end insert begin delete

(A) The first

end delete

begin insert (B) end insert begin insert   end insert begin insert Up to end insert two hundred fifty thousand dollars ($250,000) shall
be distributed to, and used by, a city, county, or city and county
animal control agency or shelter that is current on its reporting
requirements to the State Department of Public Health, Veterinary
Public Health Section for the sole purpose of supporting spay and
neuter activities by that entity to prevent and eliminate cat and dog
homelessness.

begin delete

(B)

end delete

begin insert (C) end insert  The remaining moneys, if any, shall be used by programs
designed to prevent and eliminate cat and dog homelessness or
programs for the prevention, investigation, and prosecution of
animal cruelty and neglect. The grants are to be distributed to a
city, county, or city and county animal control agency or shelter
that is current on its reporting requirements to the State Department
of Public Health, Veterinary Public Health Section, a society for
the prevention of cruelty to animals affiliate, or a humane society
affiliate. A society for the prevention of cruelty to animals affiliate
or a begin delete human end delete begin insert humane end insert society affiliate shall be begin delete in California, end delete begin insert a
California corporation, duly incorporated in the state of California, end insert
in active status, as described on the business search page of the
Secretary of State’s Internet Web site, and exempt from federal
income taxation as an organization described in Section 501(c)(3)
of the Internal Revenue Code.

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

begin insert

(c) The Department of Food and Agriculture may consult with
the State Department of Public Health to develop the grant process
and the oversight of the grant program.

end insert begin insert

(d) No Prevention of Animal Homelessness and Cruelty Fund
money shall be used to supplant state General Fund money for
any purpose.

end insert

18901.3.  

(a) Except as otherwise provided in subdivision (b),
this article shall remain in effect only until January 1 of the fifth
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, and is repealed as of
December 1 of that year.

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

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

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

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

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

(3) For purposes of this section, the minimum contribution
amount for a calendar year means two hundred fifty thousand
dollars ($250,000) for the second calendar year after the first
appearance of the Prevention of Animal Homelessness and Cruelty
Fund on the personal income tax return or the adjusted minimum
contribution amount adjusted pursuant to subdivision (c).

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

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

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