Senate BillNo. 17


Introduced by Senator Monning

(Principal coauthors: Assembly Members Alejo and Mark Stone)

December 1, 2014


An act to amend Section 18754.3 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 17, as introduced, Monning. California Sea Otter Fund.

Existing law, until January 1, 2016, establishes the California Sea Otter Fund and allows taxpayers to designate on their income tax returns that a specified amount in excess of their tax liability be transferred to the fund. Existing law, on and after January 1, 2015, requires money in that fund, upon appropriation by the Legislature, to be allocated to the Department of Fish and Wildlife for the purposes of establishing a sea otter fund to be used for sea otter conservation, and to the State Coastal Conservancy for competitive grants and contracts for research, projects, and programs related to the Federal Sea Otter Recovery Plan or improving the nearshore ocean ecosystem.

This bill would extend the operation of these provisions to January 1, 2021.

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

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

P1    1

SECTION 1.  

Section 18754.3 of the Revenue and Taxation
2Code
is amended to read:

3

18754.3.  

(a) This article shall remain in effect only until
4January 1,begin delete 2016,end deletebegin insert 2021,end insert and as of that date, is repealed.

P2    1(b) (1) By September 1 of each calendar year that the California
2Sea Otter Fund appears on a tax return, the Franchise Tax Board
3shall do both of the following:

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

8(B) Determine whether the amount of contributions estimated
9to be received during the calendar year will equal or exceed the
10minimum contribution amount determined by the Franchise Tax
11Board for the calendar year pursuant to subparagraph (A). The
12Franchise Tax Board shall estimate the amount of contributions
13to be received by using the actual amounts received and an estimate
14of the contributions that will be received by the end of that calendar
15year.

16(2) If the Franchise Tax Board determines the amount of
17contributions estimated to be received during a calendar year will
18not equal or exceed the minimum contribution amount for the
19calendar year, this article is repealed with respect to taxable years
20beginning on or after January 1 of that calendar year.

21(3) For purposes of this section, “minimum contribution amount”
22for a calendar year means two hundred and sixty thousand eight
23hundred ninety dollars ($260,890) for the 2011 calendar year, or
24the minimum contribution amount adjusted pursuant to subdivision
25(c).

26(c) For each calendar year after 2011 that the California Sea
27Otter Fund appears on the tax return, the Franchise Tax Board
28shall adjust, on or before September 1 of that calendar year, the
29minimum contribution amount specified in subdivision (b) as
30follows:

31(1) The minimum contribution amount for the calendar year
32shall be an amount equal to the product of the minimum
33contribution amount for the prior calendar year multiplied by the
34inflation factor adjustment as specified in paragraph (2) of
35subdivision (h) of Section 17041, rounded off to the nearest dollar.

36(2) The inflation factor adjustment used for the calendar year
37 shall be based on the figures for the percentage change in the
38California Consumer Price Index received on or before August 1
39of the calendar year pursuant to paragraph (1) of subdivision (h)
40of Section 17041.

P3    1(d) Notwithstanding the repeal of this article, any contribution
2amounts designated pursuant to this article prior to its repeal shall
3continue to be transferred and disbursed in accordance with this
4article as in effect immediately prior to that repeal.



O

    99