Amended in Assembly January 4, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1399

Introduced by Assembly Member Baker

February 27, 2015

begin delete An act to add and repeal Section 23692 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. end delete begin insert An act to add and repeal Article 2 (commencing with Section 18711) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, relating to taxation. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1399, as amended, Baker. begin delete Corporation tax law: credits: domestic violence shelters. end delete begin insert Income taxes: voluntary contributions: California Domestic Violence Fund. end insert

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

end insert begin insert

This bill would additionally 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 California Domestic Violence Fund, which would be created by this bill. The bill would prohibit a voluntary contribution designation for the California Domestic Violence Fund from being added on the tax return until another voluntary contribution designation is removed or a space is available.

end insert begin insert

The bill would require moneys in the California Domestic Violence Fund, upon appropriation by the Legislature, to be allocated to the Franchise Tax Board and the Controller for reimbursement of costs, as provided, and the balance to the Office of Emergency Services for the distribution of grants to specified domestic violence programs.

end insert begin 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 California Domestic Violence Fund on the tax return, 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 equal or exceed the minimum contribution amount, as defined, for that calendar year, in which case these provisions would be repealed on December 1 of that year.

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The Corporation Tax Law allows various credits against the tax imposed by that law. Under existing law, the Office of Emergency Services is responsible for administering the Comprehensive Statewide Domestic Violence Program, which distributes grant awards to domestic violence shelter service providers and provides financial and technical assistance to local domestic violence centers in implementing specified services and requires priority for this assistance to be given to, among others, emergency shelters.

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This bill would, for taxable years beginning on or after January 1, 2016, and before January 1, 2021, allow a credit against the tax imposed under that law for 50% of monetary contributions to a domestic violence shelter service provider or emergency shelter, as defined, eligible to receive a grant award or financial and technical assistance pursuant to that program. The bill would provide that the credit would not exceed $200,000 per taxpayer, that the credit would be awarded on a first-come-first-serve basis, and that the credit would have an aggregate cap of $50,000,000 for each calender year. The bill would require the Franchise Tax Board and the Office of Emergency Services to administer the credit, as specified.

end delete begin delete

This bill would take effect immediately as a tax levy.

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

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

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begin insert SECTION 1. end insert   

end insert

begin insert Article 2 (commencing with Section 18711) is
added to Chapter 3 of Part 10.2 of Division 2 of the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

 

Article begin insert 2. end insert   California Domestic Violence Fund

 

begin insert 18711. end insert   

(a) An individual may designate on the tax return that
a contribution in excess of the tax liability, if any, be made to the
California Domestic Violence Fund established by Section 18712.
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 shall be irrevocable. If payments and credits reported on
the return, together with any other credits associated with the
individual’s account, do not exceed the individual’s liability, the
return shall be treated as though no designation has been made.
If a designee is not specified, the contribution shall be transferred
to the General Fund after reimbursement of the direct actual costs
of the Franchise Tax Board for the collection and administration
of funds under this article.

(d) If an individual designates a contribution to more than one
account or fund listed on the tax return, and the amount available
is insufficient to satisfy the total amount designated, the
contribution shall be allocated among the designees on a pro rata
basis.

(e) The Franchise Tax Board shall revise the form of the return
to include a space labeled “California Domestic Violence Fund”
to allow for the designation permitted under subdivision (a). 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 further the services that
California’s domestic violence programs provide for victims of
domestic violence.

(f) Notwithstanding any other law, a voluntary contribution
designation for the California Domestic Violence Fund shall not
be added on the tax return until another voluntary contribution
designation is removed or space is available.

(g) 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).

begin insert 18712. end insert   

There is hereby established in the State Treasury the
California Domestic Violence Fund to receive contributions made
pursuant to Section 18711. 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 18711 to be
transferred to the California Domestic Violence Fund. The
Controller shall transfer from the Personal Income Tax Fund to
the California Domestic Violence Fund an amount not in excess
of the sum of the amounts designated by individuals pursuant to
Section 18711 for payment into that fund.

begin insert 18713. end insert   

All moneys transferred to the California Domestic
Violence Fund, upon appropriation by the Legislature, shall be
allocated as follows:

(a) 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.

(b) To the Office of Emergency Services for the distribution of
grants to domestic violence programs in California that are in
active status, as reflected on the Business Search page of the
Secretary of State’s Internet Web site, and that are exempt from
federal income taxation as an organization described in Section
501(c)(3) of the Internal Revenue Code. The Office of Emergency
Services shall award grants and be responsible for overseeing the
grant program.

(1) A domestic violence program shall not use grant moneys
awarded pursuant to this section for its administrative costs.

(2) The Office of Emergency Services shall not use fund moneys
for its administrative costs.

begin insert 18714. end insert   

(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 California
Domestic Violence Fund on the personal income tax return, and
is repealed as of December 1 of that year.

(b) (1)   By September 1 of the second calendar year and each
subsequent calendar year that the California Domestic Violence
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 Office of Emergency
Services 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 California Domestic Violence Fund on the
personal income tax return or the minimum contribution amount
as adjusted pursuant to subdivision (c).

(c) For each calendar year, beginning with the third calendar
year after the first appearance of the California Domestic Violence
Fund on the personal income tax return, the Franchise Tax Board
shall adjust, on or before September 1 of that calendar year, the
minimum 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 subparagraph (A) of
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 for all items received on or
before August 1 of the calendar year pursuant to paragraph (1)
of subdivision (h) of Section 17041.

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

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begin delete

SECTION 1.  

Section 23692 is added to the Revenue and
Taxation Code, to read:

23692.  

(a) For each taxable year beginning on or after January
1, 2016, and before January 1, 2021, there shall be allowed as a
credit against the “tax,” as defined in Section 23036, an amount
equal to 50 percent of a monetary contribution made by a taxpayer
to a domestic violence shelter service provider or emergency
shelter.

(b) For the purposes of this section, the following definitions
shall apply:

(1) “Domestic violence shelter service provider” shall have the
same meaning as in Section 13823.15 of the Penal Code and
eligible to receive a grant award pursuant to the program.

(2) “Emergency shelter” shall have the same meaning as in
Section 13823.15 of the Penal Code and eligible for financial or
technical assistance pursuant to the program.

(3) “Program” means the Comprehensive Statewide Domestic
Violence Program described in Section 13823.15 of the Penal
Code.

(c) The amount of the credit shall not exceed two hundred
thousand dollars ($200,000) per taxpayer, per taxable year.

(d) Upon application by the taxpayer to the Franchise Tax Board,
the Franchise Tax Board shall certify a contribution meeting the
requirements of this section pursuant to paragraph (1) of
subdivision (i).

(e) In the case where the credit allowed by this section exceeds
the “tax,” the excess may be carried over to reduce the “tax” in
the following year, and succeeding five years, if necessary, until
the credit is exhausted.

(f) This credit shall be in lieu of any other credit or deduction
that the taxpayer may otherwise claim pursuant to this part with
respect to a contribution described in subdivision (a).

(g) This credit shall be claimed on a timely filed original return.

(h) (1) The aggregate amount of credits allowed under this
section shall not exceed fifty million dollars ($50,000,000) for
each calendar year.

(2) The allocation of credits shall be on a first-come-first-served
basis.

(i) The Franchise Tax Board and the Office of Emergency
Services shall administer this credit.

(1) The Franchise Tax Board shall perform all of the following:

(A) Adopt rules and regulations as necessary or appropriate to
implement this credit.

(B) Establish application forms and procedures.

(C) Track credits claimed.

(D) Post aggregate totals of the credits claimed on the Internet
Web site of the Franchise Tax Board.

(E) Determine when the aggregate total of credits reaches fifty
million dollars ($50,000,000) for a calendar year.

(F) Based on the list provided by the Office of Emergency
Services pursuant to paragraph (2), certify that a contribution meets
the requirements of this section.

(2) The Office of Emergency Services shall annually submit to
the Franchise Tax Board a list of those domestic violence shelter
service providers and emergency shelters eligible for a grant award
or technical and financial assistance pursuant to the Comprehensive
Statewide Domestic Violence Program described in Section
13823.15 of the Penal Code.

(j) The Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code) shall not apply to the rules or regulations
adopted pursuant to this section.

(k) This section shall remain in effect only until December 1,
2021, and as of that date is repealed.

SEC. 2.  

It is the intent of the Legislature to make the findings
required by Section 41 of the Revenue and Taxation Code.

SEC. 3.  

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.

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