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 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equal the minimum contribution amount, as defined, for that calendar year, in which case these provisions would be repealed on December 1 of that year.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:
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:
(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.
P3 1(c) A designation under subdivision (a) shall be made for a
2taxable year on the original return for that taxable year and once
3made is irrevocable. If payments and credits reported on the return,
4together with any other credits associated with the taxpayer’s
5 account, do not exceed the taxpayer’s liability, the return shall be
6treated as though no designation has been made.
7(d) When another voluntary contribution designation is removed
8from the tax return, or as soon as space is available, whichever
9occurs first, the Franchise Tax Board shall revise the form of the
10return to include a space labeled the “Prevention of Animal
11Homelessness and Cruelty Fund” to allow for the designation
12permitted. The form shall also include in the instructions
13information that the contribution may be in the amount of one
14dollar ($1) or more and that the contribution shall be used to fund
15all of the following:
16(1) Programs designed to prevent and eliminate cat and dog
18(2) Research that explores novel approaches to preventing and
19eliminating pet homelessness.
21 Prevention, investigation, and prosecution of animal cruelty
23(e) A deduction shall be allowed under Article 6 (commencing
24with Section 17201) of Chapter 3 of Part 10 for any contribution
25made pursuant to subdivision (a).
There is hereby established in the State Treasury the
27Prevention of Animal Homelessness and Cruelty Fund to receive
28contributions made pursuant to Section 18901. The Franchise Tax
29Board shall notify the Controller of both the amount of money
30paid by taxpayers in excess of their tax liability and the amount
31of refund money that taxpayers have designated pursuant to Section
3218901 to be transferred to the Prevention of Animal Homelessness
33and Cruelty Fund. The Controller shall transfer from the Personal
34Income Tax Fund to the Prevention of Animal Homelessness and
35Cruelty Fund an amount not in excess of the sum of the amounts
36designated by individuals pursuant to Section 18901 for payment
37into that fund.
(a) All money transferred to the Prevention of Animal
39Homelessness and Cruelty Fund, upon appropriation by the
40Legislature, shall be allocated as follows:
P4 1(1) To the Franchise Tax Board and the Controller for
2reimbursement of all costs incurred by the Franchise Tax Board
3and the Controller in connection with their duties under this article.
4(2) To the Department of Food and Agriculture for
begin delete the
5distribution of grantsend delete
19(A) The firstend delete
20 two hundred fifty thousand dollars ($250,000) shall
21be distributed to, and used by, a city, county, or city and county
22animal control agency or shelter that is current on its reporting
23requirements to the State Department of Public Health, Veterinary
24Public Health Section for the sole purpose of supporting spay and
25neuter activities by that entity to prevent and eliminate cat and dog
28 The remaining moneys, if any,
shall be used by programs
29designed to prevent and eliminate cat and dog homelessness or
30 programs for the prevention, investigation, and prosecution of
31animal cruelty and neglect. The grants are to be distributed to a
32city, county, or city and county animal control agency or shelter
33that is current on its reporting requirements to the State Department
34of Public Health, Veterinary Public Health Section, a society for
35the prevention of cruelty to animals affiliate, or a humane society
36affiliate. A society for the prevention of cruelty to animals affiliate
begin delete humanend delete society affiliate shall be begin delete in California,end delete
39 in active status, as described on the business search page of the
40Secretary of State’s Internet Web site, and exempt from federal
P5 1income taxation as an organization described in Section 501(c)(3)
2of the Internal Revenue Code.
3(b) The Department of Food and Agriculture shall award grants
4through a competitive, project-specific grant process and shall be
5responsible for overseeing that grant program. A grantee shall not
6use a grant award for administrative expenses or for any purposes
7outside of California.
(a) Except as otherwise provided in subdivision (b),
15this article shall remain in effect only until January 1 of the fifth
16taxable year following the first appearance of the Prevention of
17Animal Homelessness and Cruelty Fund on the tax return, or
18January 1, 2022, whichever occurs first, and is repealed as of
19December 1 of that year.
20(b) (1) By September 1 of the second calendar year and by
21September 1 of each subsequent calendar year that the Prevention
22of Animal Homelessness and Cruelty Fund appears on the tax
23return, the Franchise Tax Board shall do all of the following:
24(A) Determine the minimum contribution amount required to
25be received during the next calendar year for the fund to appear
26on the tax return for the taxable year that includes that next calendar
28(B) Provide written notification to the Department of Food and
29Agriculture of the amount determined in subparagraph (A).
30(C) Determine whether the amount of contributions estimated
31to be received during the calendar year will equal or exceed the
32minimum contribution amount determined by the Franchise Tax
33Board for the calendar year pursuant to subparagraph (A). The
34Franchise Tax Board shall estimate the amount of contributions
35to be received by using the actual amounts received and an estimate
36of the contributions that will be received by the end of that calendar
38(2) If the Franchise Tax Board determines that the amount of
39the contributions estimated to be received during a calendar year
40will not at least equal the minimum contribution amount for the
P6 1calendar year, this article shall be inoperative with respect to
2taxable years beginning on or after January 1 of that calendar year
3and shall be repealed on December 1 of that year.
4(3) For purposes of this section, the minimum contribution
5amount for a calendar year means two hundred fifty thousand
6dollars ($250,000) for the second calendar year after the first
7appearance of the Prevention of Animal Homelessness and Cruelty
8Fund on the personal income tax return or the adjusted minimum
9contribution amount adjusted pursuant to subdivision (c).
10(c) For each calendar year, beginning with the third calendar
11year after the first appearance of the Prevention of Animal
12Homelessness and Cruelty Fund on the tax return, the Franchise
13Tax Board shall adjust, on or before September 1 of that calendar
14year, the minimum estimated contribution amount specified in
15subdivision (b) as follows:
16(1) The minimum contribution amount for the calendar year
17shall be an amount equal to the product of the minimum
18contribution amount for the prior calendar year, multiplied by the
19inflation factor adjustment as specified in paragraph (2) of
20subdivision (h) of Section 17041, rounded off to the nearest dollar.
21(2) The inflation factor adjustment used for the calendar year
22shall be based on the figures for the percentage change in the
23California Consumer Price Index received on or before August 1
24of the calendar year pursuant to paragraph (1) of subdivision (h)
25of Section 17041.