SB 1476, as introduced, Committee on Governance and Finance. Income taxation: voluntary contributions.
Existing law authorizes taxpayers to contribute amounts in excess of their personal income tax liability for the support of specified funds.
This bill would require any new or extended voluntary contribution to include the words “voluntary tax contribution” in the name of the fund, require the administering agency to include specified information about the fund on its Internet Web site, include a continuous appropriation of the contributed funds to the administering agency, and specify the minimum contribution amount for the continuation of any voluntary contribution.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 18410.3 is added to the Revenue and
2Taxation Code, to read:
Notwithstanding any other law, any new voluntary
4tax contributions, including an extension of existing voluntary tax
5contributions, shall include all of the following:
P2 1(a) The words “voluntary tax contribution” shall be included as
2part of the name of the fund.
3(b) The administering agency’s Internet Web site shall be
4required to report the process for awarding money, the amount of
5money spent on administration, and an itemization of how program
6funds were awarded by the agency, including, but not limited to,
7information regarding recipients of funds.
8(c) The voluntary contribution shall include a minimum
9contribution amount that must be
received for the fund to continue
10appearing on the tax return as follows:
11(1) The minimum contribution amount shall be two hundred
12fifty thousand dollars ($250,000) for the second calendar year after
13the first appearance of the fund on the personal income tax return.
14(2) For each calendar year, beginning with the third calendar
15year after the first appearance of the fund on the personal income
16tax return, the Franchise Tax Board shall adjust, on or before
17September 1 of that calendar year, the minimum contribution
18amount as follows:
19(A) The minimum contribution amount for the calendar year
20shall be an amount equal to the product of the minimum
21contribution amount for the prior calendar year multiplied by the
22inflation factor adjustment as specified in subparagraph (A) of
23paragraph (2) of subdivision (h) of Section
17041, rounded off to
24the nearest dollar.
25(B) The inflation factor adjustment used for the calendar year
26shall be based on the figures for the percentage change in the
27California Consumer Price Index for all items received on or before
28August 1 of the calendar year pursuant to paragraph (1) of
29subdivision (h) of Section 17041.
30(C) The minimum contribution amount shall be adjusted until
31it reaches five hundred thousand dollars ($500,000), and shall
32remain at five hundred thousand dollars ($500,000) for each
33subsequent year.
34(d) Funds contributed pursuant to the tax check-off shall be
35continuously appropriated to the administering agency to be spent
36as prescribed in the act in which the voluntary contribution is
37enacted.
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