Amended in Senate April 14, 2016

Senate Bill No. 1476

Introduced by Committee on Governance and Finance (Senators Hertzberg (Chair), Beall, Hernandez, Lara, Moorlach, Nguyen, and Pavley)

March 7, 2016

An act to add Section begin delete 18410.3 end delete begin insert 18873 end insert to the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL’S DIGEST

SB 1476, as amended, 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. begin insert Existing law also has administrative provisions applicable to voluntary contributions. end insert

This bill would begin delete require end delete begin insert include, as generally applicable administrative provisions, that end insert any new or extended voluntary contribution begin delete to end delete include the words “voluntary tax contribution” in the name of the fund, begin delete require end delete begin insert that end insert the administering begin delete agency end delete begin insert agency, as defined, end insert begin delete to end delete include specified information about the fund on its Internet Web site, begin delete include a continuous appropriation of end delete begin insert that end insert the contributed funds begin insert be continuously appropriated end insert to the administering agency, and begin delete specify the end delete minimum contribution amount for the continuation of any voluntary begin delete contribution. end delete begin insert tax contribution on the tax return form, and a generally applicable inoperative date for a voluntary tax contribution. end insert

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

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

SECTION 1.  

Section begin delete 18410.3 end delete begin insert 18873 end insert is added to the Revenue
and Taxation Code, to read:

begin delete 18410.3. end delete

begin insert 18873. end insert   

Notwithstanding any other law, begin insert all of the following
requirements shall apply to end insert any new voluntary tax contributions,
including an extension of existing voluntary tax begin delete contributions,
shall include all of the following: end delete begin insert contribution: end insert

(a) The words “voluntary tax contribution” shall be included as
part of the name of the fund.

(b)  begin insert (1) end insert begin insert   end insert The administering agency’s Internet Web site shall begin delete be
required to end delete report the process for awarding money, the amount of
money spent on administration, and an itemization of how program
funds were awarded by the agency, including, but not limited to,
information regarding recipients of funds.

begin insert

(2) An “administering agency” means the state agency or other
governmental entity, other than Franchise Tax Board and the
Controller, to which funds are allocated to accomplish the purposes
of the voluntary tax contribution designation.

end insert begin delete

(c) The voluntary contribution shall include a minimum
contribution amount that must be received for the fund to continue
appearing on the tax return as follows:

(1) The minimum contribution amount shall be two hundred
fifty thousand dollars ($250,000) for the second calendar year after
the first appearance of the fund on the personal income tax return.

(2) For each calendar year, beginning with the third calendar
year after the first appearance of the 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 as follows:

(A) 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.

(B) 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.

(C) The minimum contribution amount shall be adjusted until
it reaches five hundred thousand dollars ($500,000), and shall
remain at five hundred thousand dollars ($500,000) for each
subsequent year.

end delete begin insert

(c) (1) Except as otherwise provided in paragraph (2) or where
another inoperative or repeal date is provided, the article
establishing the voluntary tax contribution shall remain in effect
only until January 1 of the seventh calendar year following the
first appearance of the contribution on the personal income tax
return, and is repealed as of December 1 of that year.

end insert begin insert

(2) The minimum contribution amount that must be received
for the fund to continue appearing on the tax return is two hundred
fifty thousand dollars ($250,000) for the second calendar year
after the first appearance of the fund on the personal income tax
return and each calendar year thereafter.

end insert

(d) Funds contributed pursuant to the tax check-off shall be
continuously appropriated to the administering agency to be spent
as prescribed in the act in which the voluntary begin insert tax end insert contribution is
enacted.